Intern Report of Md. Abu Hamza Nomaan 173-11-510

2
An Analysis of the Financial Services the

Marketing of Sonali Bank Ltd a study on
Dhaka (EPZ) Branch
©Daffodil International University

i
2
Submitted To
Professor Dr. Mohammed Masum Iqbal
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University
Submitted By
Md. Abu Hamza Nomaan
ID: 173-11-510
Major in Marketing
Program: BBA
Daffodil International University
Date of Submission:
18 May 2022

i
2
Letter of Transmittal
17 May 2022
Professor Dr. Mohammed Masum Iqbal
Subject: Submission of internship report on ‘‘An Analysis of the Financial Services Marketing
of Sonali Bank Ltd. (DEPZ) Branch
De
ar
Sir
,
It is my pleasure that I have completed my internship report and am ready to submit my

report in this way ‘‘An Analysis of the Financial Services Marketing of Sonali Bank Ltd
(DEPZ) Branch’’. At your order I have worked and analyzed the Marketing and Financial
department of Sonali Bank Limited. I really enjoyed the banking environment. I have tried
my best to present all my experiences there while preparing my report under your supervision
and guidance.
I really enjoyed the overall work during my internship period which contains a lot of
definitions of practical knowledge. This report and all forms of research information are sent
to you for evaluation. I sincerely hope you will appreciate my effort.
Sincerely yours,
..............
..........

ii
2
ID: 173-11-510
Program: BBA
Major in Marketing

ii
2
Declaration
I acknowledge that the internship report on ‘‘An Analysis of the Financial Services Marketing of
Sonali Bank Ltd’. It covers the results of my research activities, conducted under the direction of
Professor Dr. Mohammed Masum Iqbal, Professor, Daffodil International University.
I further confirm that the work reported in this report is the first and no part or all 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
Program: BBA
Major in Marketing

3
2
Certificate of Approval
You said you will help this section that’s cause I blank this section.

1
2
Acknowledgement
During my training it was fortunate to have the support, support and encouragement of many
people. First of all, would like to express gratitude to Allah Almighty for completing this
report.
Would like to extend my respect and thanks to supervisor, Professor Dr. Mohammed Masum
Iqbal, to support, guide, and direct his standards of care. It was fortunate 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.
Would like to extend my special thanks to Mirza Hasanul Rahman, a police assistant who
assisted me in many ways by providing me with information and involvement in my work.
Want to thank the owner in particular. That helped a lot while working as a Controller.
Finally, would like to extend my special thanks to the Lord for giving me more patience and
strength to complete this relationship and thanks family for their support as go to work.

2
2
Executive Summary
An Analysis of the Financial Services Marketing of Sonali Bank Ltd (DEPZ)

Branch
The Objective of the study are following:
1. To identify the marketing strategies of Sonali Bank limited;

2. To explain the marketing mix of Sonali Bank limited;
3. To identify the problems related to the marketing activities of Sonali Bank limited;
4. To make some recommendations to solve the problem;
Methodology of the Study
Primary Data:
I collected initial information by interviewing customers at Sonali Bank. I have also included
important staff details. This data helps me determine the business development trends of the branch.
To obtain key data, I conducted a few respondents survey to gather awareness and analyze data to
evaluate a branch business development trend.
Secondary Data:
I used different types of secondary data to complete my internship report. Here it is important to note
that no questionnaire is used to collect data.
Sources of information and collection of data:
1. From the Annual Bank Report

2. Information on new product development
3. Bank of Bangladesh Bank report
4. From the Daily Newspaper

3
2
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 Bank Limited 06
2.2 Objectives of Sonali Bank Limited 06
2.3 Mission 06
2.4 Vision 07
2.5 Slogan of Sonali Bank Limited 07
2.6 The Management Process of Sonali Bank 07
2.7 Principles of Sonali bank 07-08
2.8 Performance of Sonali Bank 08-09
2.9 Core values 09-
Product and services 10
2.10
Chapter- 03 Marketing Strategy of Sonali Bank
3.1 Financial Resources 13
3.2 Investments 13-14
3.3 Composition of Total Loans and Advances 14
of the SBL
3.4 New Products 15-17
3.5 Import and Export 17-18

4
2
3.6 Branch Network of Sonali Bank Limited 18
3.7 Why" Bank Marketing 19-20

3.8 Bank marketing 20-22
3.9 Marketing Status 22-24
3.10 Framework of Bank Marketing 25-27
3.11 Bank Marketing Strategy 27-29
3.12 Profit and Marketing 29-30
3.13 Profit and Marketing 31
3.14 Branch Benefit Calculation System - How to 31-32
3.15 Training Method 32
3.16 Bank Distribution Channels 31-35
3.17 Sonali Bank Communication Strategy 35-36
3.18 SWOT analysis 36-38
Chapter- 04 Findings, Recommendation & Conclusion

Findings 40
Recommendations 40
Promotion Decision 40-41
Conclusion 41
References

5
2
Chapter- 01
Introduction

6
2
1.1 Introduction:
The banking sector is one of the largest service sectors in the Bangladesh economy. There are
several types of banks, which differ in the number of services they provide and the customers
they provide. Although some differences between these types of banks have decreased as
they begin to increase the range of products and services they offer, there are still important
distinguishing features.
Commercial banks, which control the industry, provide a wide range of services to
individuals, businesses, and governments. Commercial banks are the biggest contributors to
the country's economy. Therefore, we can say that commercial banks are a for-profit
institution that holds individual and business funds in check and savings accounts and uses
these funds to borrow. Banks collect deposits at very low cost and offer high interest rates
and loans because they are not profitable industries.
It is important that everyone has a vision for the bank and the banking system. Through a
bank internship program, students can gain practical knowledge, which helps them to know
real life situations, and helps them get a job with some practical experience.
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 undergo an
internship at the end of the BBA program, to begin working on prior knowledge.
1.2 Background 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
Bangladeshi most respected public companies. I have decided to work on the final report on "
Marketing Strategy in Bank Service ", with adequate analysis and solutions organization
presented to the Human Resources Division Sonali Bank Limited Headquarters in Dhaka.
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 by
marketing strategies. In this report I tried to explain Marketing Strategy of
Sonali Bank Limited.

7
2
The Objective of the study are following:
5. To identify the marketing strategies of Sonali Bank limited;

6. To explain the marketing mix of Sonali Bank limited;
7. To identify the problems related to the marketing activities of Sonali Bank limited;
8. To make some recommendations to solve the problem;
1.5 Methodology of the Study
Primary Data:
I collected initial information by interviewing customers at Sonali Bank. I have also included
important staff details. This data helps me determine the business development trends of the
branch. To obtain key data, I conducted a few respondents survey to gather awareness and
analyze data to evaluate a branch business development trend.
Secondary Data:
I used different types of secondary data to complete my internship report. Here it is important
to note that no questionnaire is used to collect data.
Sources of information and collection of data:
1. From the Annual Bank Report

2. Information on new product development
3. Bank of Bangladesh Bank report
4. From the Daily Newspaper.
1.6 Limitations of the Study

Although I received heartfelt support from the staff of Sonali Bank Limited, Narayangonj
Branch, they did not have enough time to deal with me. On the way to my study, I have
encountered the following problems that can be called limitations! Research errors.
• Study Time:
Time constraint themselves due to time constraints, the scope, and size of the study is
reduced. Sonali Bank Limited is a large corporation. It has been very difficult to deal with
this bank during this short period of time. On the other hand, due to the short time, I could
not negotiate with all the customers.
• Restricted Policy:
Bank policy did not disclose certain data and information for obvious reasons.

8
2
• Personal limitations:
Since some considerations are made with the help of limited information, there may be
some personal errors in the report.
• Limited Function:
It was very difficult to gather information from various officials in charge of the work ban.

9
2
Chapter-
02
Overview of the Sonali Bank Limited

10
2
2.1 Overview of Sonali Bank Limited:
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.
Corporate Profile;
Name of the Company: Sonali Bank Limited Date of Incorporation: 03 June, 2007
Chairman: Ziaul Hasan Siddiqui Date of Vendor’s Agreement: 15 November,
CEO & Managing Director: Ataur Rahman 2007Registered Office :35-42, 44 Motijheel
Prodhan Commercial Area, Dhaka, Bangladesh
Company Secretary: Mr. Md. Hasanul Authorized Capital: Taka 6000.00 Crore
Banna Paid-up Capital: Taka 4130.00 Crore
Legal Status: Public Limited Number of Employee: 18,167
Company Genesis: Emerged as Nationalized Number of Branches: 1215
Commercial Bank in 1972, following the Phone-PABX: 9550426-31, 33, 34,
Bangladesh Bank (Nationalization) Order No. 9552924FAX: 88-02-9561410, 9552007
1972 (PO No.26 of 1972) SWIFT: BSONBDDH
2.2 Objectives of Sonali Bank:

 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.
11
2
 Ensuring a sufficient level of return on investment
 Saving sufficient funds to meet emerging obligations and obligations.
2.3 Mission:
1. Delivering e x c e l l e n t f i n a n c i a l service t o o u r communities
b a s e d o n strong customer relationship
2. Provide long-lasting solutions that integrate our advanced technology,
knowledge and financial strength to our customers and stakeholders.
3. Creating a cohesive and friendly environment where customers and
our people can excel
4. 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:
Socially committed leading banking institution with global presence
2.5 Slogan of Sonali Bank:

 Your trusted partner in innovative banking
Mission of Sonali Bank
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-economic
development of the country
3.6. Core Values of Sonali Bank:
Sonali Bank Limited (SBL) Core Values proposition consists of ten key elements. The values would
assist the bank in perceiving its employees to work as a team towards the accomplishment of
assigned duties and responsibility for the achievement of desired objectives. Teamwork: Open
communication discussion interaction amongst the employees would ensure unification actions and
efforts towards achieving the common goal.
Ethics: Everyone must ensure adherence to ethical practices of banking.
Objective: All persons will have definite objective in carrying out their tasks.
Integrity: Protection and safeguard of customers interest is a vital element for societal trust

12
2
Excellence: Excellence performance and effectiveness are preconditions to ensure quality service to
the large customer base of the bank.
Innovation: New and innovative products are the needs of the time for whichcontinuous action-

oriented researchers are carried out.
Commitment: Every employee is committed to working up to the expected level to ensure

satisfaction of the valued customer.
Self-Reliance: Each employ will have ownership attitude towards the bank and self-confidence in
his work for the betterment of the bank.
Transparency: Information is to be kept open for all so that stakeholders can

have proper ideas about the bank's activities.
Accountability: All employees are responsible for their activities and will remain accountable to
their respective superior for the accomplishment of the task.
Core Business of Sonali bank:
 Corporate Banking  Foreign Exchange  Money Market

 Project Finance Dealing Operation
 SME Finance  International Trade  Rural and Micro
 Remittance  NGO-Linkage Loan credit
 Lease Finance  Consumer Credit  Capital Market
 Consumer Credit  Investment Operation
 Loan Syndication  Government Treasury  Special Small Loan
Function
Other Business/Services:
 Government Treasury Bonds

 Locker Service
 A.T.M. Card
 Utility Bills Collection
 Ancillary Services
 Merchant Banking

13
2
Services of Sonali Bank Limited
ATM Services:
Sonali Bank Limited has introduced ATM services since 2007. The numbers of ATM are
increasing day by day. The bank is the member of Q-Cash Consortium, National Payment
Switch Bangladesh (NPSB) and VISA. Customers are enjoying round the clock cash
withdrawal facility from 87+ own ATM and around 6500+ shared ATM Booths across the
country. Initiative has been taken to setup ATMs at important places like important branches,
airports, railway stations, post office, university campuses, important public places etc. To
increase the efficiency of our ATM service, we have taken various steps such as reduce down
time of individual ATMs. Also trying to ensure more ATM friendly environment through un-
interrupted transaction.
Sonali Debit Card Facilities
Sonali Bank Limited is one of the member banks of Q-Cash and visa Consortium. Cardholder
of Sonali Bank Limited can use ATMs of consortium member banks, Dutch-Bangla bank and
BRAC bank limited.
Credit Card:
Understanding the importance of needed money Sonali Bank Limited has introduced Credit
Card that gives the maximum benefit with a minimum cost. This is basically one plastic card
that has dual options to make transaction in multi currencies. Customer can choose the type
of card that matches with his requirement. Dual card can be used in local currency within
Bangladesh and foreign currency in abroad. Local currency and foreign currency limit will be
defined in the system as per approved credit limit
Prepaid Card:
Without having any account any one can get Sonali Bank Prepaid Card from
any branch. A Prepaid Card has a pre-determined monetary value loaded into card. Weoffer
Prepaid Dual Currency Card that can be used at any ATM to withdrawal cash and any POS to
purchase of goods & services. Dual card can be used in local currency within Bangladesh and
foreign currency in abroad.
Ancillary Services
Sonali Bank Limited offers multiple special services with its network of branches throughout
the country in addition to its normal banking operations.

14
2
Chapter- 03
Financial Services Marketing of Sonali Bank

15
2
3.1 Financial Resources:

Like any other financial coordinator, Sonali Bank differs in its core functions namely. Funds
and such expenditures collected for profit purposes.
a. Deposit:
Deposit is one of the main sources of investment for commercial banks and deposit
deposits are a common source of income for the banking business. The total bank deposit
stood at TK 35032.02 million as of December 2008 compared to TK28319.21 million last
year which is an increase of 23.70%. This growth rate can be called a banking success.
b. Capital and Reserve Fund:

The authorized capital of Sonali Bank is TK. 3500 million. The bank capital paid at
the end of 2008 stood at Taka 1713.75 million compared to Taka 627.75 million in 2008.
The bank's reserve capital as at 31st December 2008 stood at Tk3111.68 million including
payments of Tk1713. .75 million.
Spending:
Sonali Bank spends its funds in accordance with its organizational policy and
business strategies. The most widely used industrial and commercial borrowing methods.
Savings and legally held deposits with Bangladesh Bank cover 20% of the required amount
of time and time. Investing in NOSTRO Accounts to handle foreign trade and investment in
the stock market is also done as usual.
3.2 Investments
The Bank’s total investments stood at Tk. 629,691.45 million in 2020 which was Tk.
500,386.89 million in 2019 showing an increase by Tk. 129,304.56 million or 25.84
percent. The investments mainly include Government securities of Tk.550,695.16 million
or 87.45 percent of total investments maintained as a primary dealer in addition to cover
Requirement. In place of 13 percent SLR, SBL has maintained37.02 percent with
Bangladesh Bank which is an indication of the strength of the Bank.
Loans and Advances
Loans and advances constitute the largest portion on the asset side of SBL’s Balance Sheet
which was Tk. 586,232.72 million or 36.83 percent of total assets in 2020. SBL’s loans and
advances increased by 6.39 percent from Tk. 551,026.29million in 2019 to Tk. 586,232.72
million in 2020. SBL has continued its lending operations in productive and priority sectors
including agriculture, industry, SMEs, trade, and commercial. The Reserve Bank has referred
the debt to the Government, public and private sectors in line with national priorities. The
percentage of total loans and advances against total deposit (AD ratio) is 46.57%. Details of
loans and advances are given in note # 7 to the accounts. The number of classified loans and

16
2
advances stood at Tk. 107,673.90 million in 2020 as against Tk. 111,993.90 million in 2019.
Percentage of nonperforming loans of SBL was18.37 in 2020 which was 20.32 percent in
2019.
3.3 Composition of Total Loans and Advances

of the SBL
1. Market Cooperatively with Partners

Bank marketing strategy number one – find partners to work with because teamwork makes the
dream work. Whether a hospital or real estate agency, the whole idea is to align yourself with
other businesses that can help you bring in new customers.
2. Tap into New Markets

17
2
Cooperative marketing can help your bank build new relationships and it can also help you find
new markets, like homebuyers who need to take out loans or the parents of young children who
are looking to start bank accounts. This is one of the best marketing strategies for banking.
3. Set Yourself Apart from Competitors (in a Good Way!)

The grass isn’t always greener on the other side, but sometimes it is helpful to check out what’s
going on over on your neighbor’s lawn. What are competitors doing? How can bank stand out
from others?
5. Research, Don’t Assume
Know what they say about assuming, and if they don’t, look it up. They have to be polite here.
Instead of assuming that they know who they main customers are and how they spend their time,
put in the research to find out. For instance, what segment of they’re customers are actually on
Facebook versus other social media platforms?
Example: Remember that Generation Z we talked about? A lot of banks get it wrong by assuming
that this new generation is just like its millennial counterparts, focused on all things digital.
However, many members of this generation, about one-third, actually show a strong preference
for traditional, face-to-face banking. The more you research, the more you know.
5. Get on the Right Social Media Platforms

Maybe you’ve doubled down on the Facebook marketing, but not much is happening. There
could be a whole load of potential issues at play, but we’ll focus on one for the time being: is
Facebook even the right platform for the posts they’re making and the audience you want to
reach?
6. Educate and Teach
A lot of their customers genuinely want to learn about banking, and they’re the expert. There’s a
lot your bank can teach customers, both online and offline, about personal finance, saving for
emergencies, how to finance and run a small business and so much more.
Example: Queensborough National Bank & Trust Co. offers what they call the iQ University
program to help community members with investing, credit, budgeting, home ownership, estate
planning and other financial literacy topics.
7. Get Involved with the Community
Sponsor a local baseball team, fundraise for animal rescue shelters, help build houses or host free
classes at the library on budgeting. Your community needs you just as much as you need them

18
2
and many groups are happy to give your bank a shout-out in exchange for your assistance. It’s a
win-win for everyone.
8. Offer a Good In-Person Experience
One part of marketing that often gets overlooked is marketing to your current customers. Sure,
you need to be actively reeling in new customers to keep your bank growing, but you can’t forget
about your OGs. Fun fact: it’s cheaper to retain existing customers than it is to keep searching for
new ones.
You may have the digital aspect of customer experience covered, but what about the in-person
experience? Are your personnel trained to cultivate relationships with the people who come into
your bank on a consistent basis?
9. Offer Robust Content Marketing
Does your bank website have a hub that features blog posts, infographics, Q and As and other
rich, useful content? If not, they’re missing out on a big marketing opportunity. Here’s a piece of
advice – missing out on any big marketing opportunity is not a good thing.
10. Market with Videos
Not only should you be marketing with content, but that content should also include videos. It’s
important for your bank to show stories about the people it serves and the communities in which it
operates. Tap into this resource and make the most of the power that “show, don’t tell” holds.
3.4 New Products:
Loans and Development

Accelerate debt growth, new debt /investment products are presented by the Bank, namely(a)
School Bicycle Loan Program (b)Small and Medium Business Loans (SMEs) (c) Small
Businesses Loans (d) Small Rural Farm Loans (e) Small Rural Businesses Loans (f) Poverty
Alleviation Program (g)Probashi Karmasangsthan Rin Prokalpo (h) Education Loan(i) Jago Nari
Grameen Rin (j) Time Loan for Freedom Fighters(k) Foreign Education Loan Program (FELP) (l)
Home Affairs Strong Scheme under Bai-Muazzal Mode etc.
General Debts
SBL plays a vital role in the country's economy extending various public and private debt services
industry associations and organizations. In 2020, the Bank loans disbursed up to Tk. 45,400.00
million in the private sector which was Tk. 38,907.00 million in 2019 less head of general credit.
On the other hand, debt is divided under normal credit up to Tk. 2,230.00 million they have been

19
2
acquired in the year which was Tk. 2,810.80million in 2019. The table presentation shows it all
General Bank Credit position.
The table presentation reflects the General's position

Credit of the Bank.
Effective Marketing Strategies of Sonali Bank
1. Customer Outreach
Customer outreach is one of the oldest and simplest marketing strategies for banks and financial
institutions to adopt. However, it’s also one of the most effective. Customer outreach is quite
simply the concept of reaching out to customers to fill existing needs surrounding education,
awareness, and help. This scales to a small organization in the form of free consultations and
webinars and to larger ones in the form of financial education such as debt management programs
or financial education in schools.
2. Self-Service and Digitization
Where baby boomers and previous generations largely preferred to receive products through sales
representatives who could advise them and set up perSonalized (or not) accounts for them,
millennials and Generation Z often want to do everything themselves with as little contact with
human representatives as possible. Setting up and promoting digitized financial products and
customer service or experience portals that enable customers to sign up for services online,
change products and services online, and view their information without going into a branch is an
effective and increasingly necessary trend for financial organizations. However, it is not a
marketing strategy that applies to every organization, as you may not sell products only services.

20
2
3. social media
81% of the Bangladesh population is on a social media account and many use social for up to 4-5
hours per day. Your smart and consistent use of one or more social media platforms is a valuable
financial marketing strategy that you cannot afford to ignore. Millennials, Generation Z, and even
Baby Boomers use social media platforms to connect with brands, learn from peers, and follow
current events and news. Maintaining a steady presence on one or more sites with a strategy in
place to offer value to followers will help you to build brand trust, create marketing opportunities,
and grow your customer base.
Many financial and banking organizations use social media to connect with consumers for the
purpose of building trust. For example, by showing that real people work at banks and in financial
services, showcasing customers and success stories, and delivering customer service. For
example, financial organizations can typically cut the cost of customer service by over 70% by
switching from phone to social media.
4. Automation and Big Data
Most financial organizations have more data than they know what to do with, but that is quickly
changing. Today, customer experience platforms and automation tools make it easier than ever to
utilize and apply data as part of your marketing strategy for financial services. For example, big
data can tell you who is saving up for a big purchase and most likely to need pre-approval for a
loan, big data can help you identify and offer services before or after they are needed, it can help
you to target specific customers for additional customer service or digital financial education, and
can help you to cut down on needed customer service.
5. Digital Storytelling
Storytelling is still one of the most effective marketing mediums, whether on social media, video,
ads, or cross-channel platforms extending into the real world. Here, your marketing strategy
should encompass telling a story that captures interest and evokes emotion to interest, excite, and
move the viewer. Here, your goal is to create relatable and shareable content which can educate,
entertain, or help the reader in some way – and hopefully manage all three at once.

21
2
Summary of Liabilities
3.5 Import and Export

Total import and export businesses owned by the Banking 2020 he stopped at Tk.
165,550.00 million and Tk. 25,160.00millions respectively compared to Tk. 255,970.00
million ant. 25,670.00 million respectively in 2019. Lump sum of external financial
management including foreign exchange Bank remittances for 2020 stood at Tk.373,318.70
million which was Tk. 461,273.00 million in 2019.
Comparative Foreign Trade Position during 2020 and 2019:

22
2
3.6 Branch Network of Sonali Bank Limited:
3.7 "Why" Bank Marketing:
All banks, large and small, affiliated, large or governmental, market their services to clients
by developing new financial tools and implementing new strategies.
Exploring Bank Marketing:
Some of the most important factors affecting the country's banking marketing organization
are discussed below:
Financial Arbitration
The primary function of banks is to accept deposits from investors or depositors and after
setting aside funds for official exemptions, increase loans to borrowers to meet their
production and use requirements. The difference between the interest rate of the deposit and

23
2
the interest rate of the loan is the “distribution” of the bank (either income or total profit).
This is a financial intervention in which the owner of the bank is an integral part.
If we look at the above process from another angle, we can see that the investor has a
cumulative fund that he wants to invest in and earn big interest. The borrower needs the
amount of production or uses he or she is willing to pay. As it can often be difficult for an
investor to seek out a borrower directly, the bank owner intervenes as a mediator.
3.8 Bank marketing:

If you ask bank managers about bank marketing, they will respond in many ways, such as:
1. Sales sell banking systems;
2. Sales create the demand for our products;
3. The potential attraction for a customer to bank with us is marketing;
4. Marketing to meet customer needs;
5. Combining marketing;
6. Good and polite customer communication is a marketing strategy;
7. Marketing aims at customer satisfaction;
"Bank marketing is a combination of services, aimed at providing services to meet the needs
and requirements of financial clients (and other related ones), more effectively and efficiently
than its competitors in terms of corporate banking principles."
This description highlights the following points:
Banks provide a service - with all the features mentioned earlier, associated with it.
The aim is to satisfy the needs and requirements of the customer.
The needs and requirements of the customer are extremely financial, and some may be
related or related to a lot of work. But the basic question still needs to be addressed-what is
bank marketing? Let us attempt to answer with some concept. All Marketing Ideas: Essential
Components of the Marketing Concept
(I) identifying customer needs,
(ii) managing delivery to customers,
(iii) achieving customer satisfaction.

24
2
The Marketing Concept defines the following key factors that contribute to a bank's
success:
1. A bank cannot exist without its customers.
2. The purpose of a bank is to create, acquire and retain customers. Customers are
and should be the focus of everything a bank does.
3. This is also a way to organize a bank. The beginning of the organizational

structure should be the customer and the bank should ensure that its services
are provided and delivered in the most efficient manner.
4. Customer satisfaction depends on the performance of all bank employees.
Marketing Idea:
One of the definitions of marketing offered to active banks are that marketing consists of
selling bank products. So, marketing and sales are seen as flexible terms. In the era of
banking development perhaps the concept of marketing was very important.
Bank Market Research:
Market research is a complete and continuous process that directly or indirectly aligns with
an organization's overall activities. The very idea of organizing your business, where your
work is, the markets and products you need to support – all these decisions are based on
market research data.
Market research and reflection data are used as policy ideas by politicians. Based on this data
and business goals, decision makers develop marketing strategies.
♦ Scope of Bank Market Research
Some areas of bank marketing research could be as follows:
1. Bank Selection Principles: In a situation where a large number of players are

working in the banking sector, what attracts the customer to a particular bank
can be an important factor in decision-making. Marketing Research can provide
useful clues here to compile a banking marketing strategy.
2. Market Category: What are the major market segments in the branch or
regional operating environment, what are the different needs and expectations

25
2
of customers in each of these categories, and related issues can be addressed

scientifically with the help of Marketing Research.
3. Graphic Research: The way a bank or branch perceives a customer, what areas
it is successful at and which can be explored in Graphic Research using
Marketing Research techniques• Other Areas: These are some of the key areas
of Bank Marketing Research such as specific product studies, customer
surveys, product development, the need for forecasting and competing profiles.
3.10 Framework of Bank Marketing:
Business Area Analysis:
As with any other field of operation, Bank Marketing should operate within the framework of
existing natural facts. It is important for a bank teller to be aware of the environment and its
effects on his operations. It is actually difficult to identify the environment for the seller. To
make this task easier, the bank teller's property is divided into five sections.
1. Global environment
2. Social and cultural environment
3. Economic Environment
4. Technical area
5. Official location
♦ Global Environment
The business environment in which the businessman operates in Bangladesh is actually taken
up in the current global environment. The greatest of all times, when it comes to
Bangladesh's economic trade and integration with the world economy. So, understanding the
global environment, in addition to being very important in itself, provides a good background
for even our home business environment. The main focus of the global environment is the
intermediate economy, the changing role of government, the transformation of knowledge,
internationalization, cultural diversity, defense, the economic downturn and resumption,
financial sector analysis, financial adequacy and so on.
♦ Social and Cultural Environment
The growing species of certain parts of the world's ecosystem mentioned above, the powerful
winds of change have been sweeping the Bangladeshi cultural culture. Major trends are
offered as follows:
1. Disbandment of the Integrated Family System

2. Radio-TV-Computer Culture
3. Emergence of Bangladesh Middle Class
4. Consumer age

26
2
♦ Technology environment
Technology is an important contribution to the country's economic development. Especially

in the banking industry, foreign banks operating in Bangladesh have been instrumental in
bringing modern technology to the operations of banks. However, Bangladeshi banks are
lagging behind in the delivery of technology to grow their business. The wide network of
branches and the wide variety of banking services in Bangladesh emphasize the need to use
sophisticated technology.
We may now focus on current trends in some major areas of technology use in banks.
Branch Computerization: This is one of the most controversial areas of computer use in
banks. Ideally, the full computerization of all banking activities at branch level is the best
delivery
♦ Market Demand Requirement:
Market segregation separates customers with similar banking needs from those with different
needs. The more similar the needs and behavior of a customer group, the easier it is to
understand them.
Apart from this, the concept of segregation is that it provides a solid foundation on which a
banking marketing strategy can be designed, as well as how to persuade a potential customer
to do business with us — these are some of the basic decisions a seller should make. take part
in designing his marketing strategy.
Market segregation also enables us to adapt different marketing packages for each segment
based on the feature requirements of different segment customers. This helps the advertiser to
develop in the client's mind the concept of "intellectual property" of bank offerings.
• The basis of segregation
Marketing books are full of information about the various foundations on which market
segregation can be tried. Some of the popular basics of classification are, location,
Demographic, Psychographic, Volume, Benefit, etc.
• Spatial distribution
In geographical segregation in the case of banks, one may have variations such as the
metropolitan-town-town, North-South-East-West, the metropolitan area - the small town, the
hill-area of the nation - the desert area. Njll. The idea in all these ways of differentiating is
that customers in a particular area can show a higher level of similarity in their banking needs
compared to those in other regions. Geographical classification is very easy to try because
local areas are already designed.
• Separation of people

27
2
In general, spatial segregation can be further expanded based on multiple demographics.

Common human boundaries used by age, gender, income, occupation, education, social class,
etc.
• Mental Disorders:
In the future, banks may adopt a more sophisticated psychological or profit-oriented

approach. Among psychological performance parameters, one can use variable variables that
reflect customer personality traits, e.g., types of leader followers, extrovert-introvert types,
and cand conservative-liberal types.
• Profit segment:
It is the same with the division of benefits. Here the reason is the benefit the customer wants
by “buying” a particular bank product. For example, a customer who wants a credit card from
Citibank may claim a "profit" status from a group of his peers. Similarly, another customer
who will borrow a consumer loan from a Bangladeshi bank may claim a "economic" benefit.
A fast, efficient and dignified service therefore benefits such as status, economy, and luxury
may be based on market segregation.
3.11 Bank Marketing Strategy:
Action Plan:
Customer needs and expectations cover a broad field and management may not be able to
meet all of them. For example, a customer may need cash at midnight. If he thinks there is no
ATM at work, he will be disappointed. This brings us to another set of organizational needs
and expectations.
These requirements and expectations are set out in the bank's business policy, various
internal directives, policy announcements, etc. A general branch manager would like to work
in an environment where the needs of the client and the organization are consistent.
There is a third set of requirements and expectations applicable to the branch structure - those
of directors, clerks and subordinates.
Bank Marketing Strategy Mix- 7P’s:
In classic marketing books, there are four components of a marketing strategy - product,
price, location, and promotion. But when it comes to service advertising, the context is
different. Due to the intangible nature of service products, consuming it is important.
Keeping all of this in mind the bank's marketing strategy has seven components - product,
price, location, promotions, process, people, and tangible evidence. These are known as 7P.
we take each of these parts one by one.
I. First 'P' - Product:

28
2
Marketing books are full of ideas and strategies related to product management. We focus on
specific ideas related to product policy that are of immediate and practical value to banks.
Contextual Products: Concentrated products are all those products that define what kind of
business we are in. For example, in the bank, other important products bank savings, current
account, time deposit, recurring deposit, cash credit, long-term loan, overdraft. , drafts, and
so on. The basic features of all these products are doubled. First, they describe the
commercial banking business in the sense that, for any banking services we offer, one or
more of these core products must be reflected in them. Another feature of contextual products
is that they do not really have solid marketing content.
Favorite Products for Others: These are years of value addition. Everyone is sold with a view
to value-added products and services. An additional product is a legal product that has certain
accompanying benefits. For example, if a person opens a smart money account with HSBC,
he or she gets a Cash Card Anytime. Or, when a person opens a fixed deposit account, he can
keep it in a secure bank account for free.
Product
Marketing
Promotion Strategy Price
Mix
Place
ii. Second 'P' - Price
Value as a tool for banking marketing strategy has received very little help due to
management price structure- this has been the backbone of many branch managers. Even the
cost of auxiliary banking services is the same for all banks.

29
2
Impact of Bank Price: Consideration will be a priority for banks. Likely, the following
practical steps can be taken immediately by banks to operate on a fully regulated pricing
system.
First, a website that is sensitive to the prices of different categories of customers’ needs to be
built.
Second, there is a need to improve cost and profit management among active banks.
Third, one of the conditions of competitive profit is set by Porter price premium.
Fourth, banks will also need to consider a specific pricing strategy they use. In an
unregulated area, there are many options, e.g.
- The "Cost-plus" method, which may require a detailed analysis of the cost structure of
various banking products and services.
- A market-focused approach, i.e., what the market can carry or accept.
- Competitive-related approach, i.e., what the competitor does.
iii. Third 'P' - Place
The 'local' strategy in advertising answers the question, "Where is the marketing of our
products or services?"
New Strategies: Such a real, long-used strategy, the concept of extended counters, satellite
offices and the like.
Second, the concept of specialized calculation of specific customer segments (e.g.

pensioners) is also a well-known strategy.
Third, the concept of ‘single window’ continues in the supply chain to select customer
segments.
Fourth, the concept of mobile offices is also part of current banking systems, or by choice.
With this, the bank owner comes to the customer’s door rather the other way around.
Fifth, technology has been used by banks to implement their local strategy.
Sixth, the latest innovation is that of strategic collaboration. This practice has been
established mainly by newly established public banks.
iv. Fourth 'P' - Promotion

30
2
Basically, when we think of promoting marketing we start focusing on advertising as a

promotional tool. It could be a radio, or a television, a newspaper or a magazine, a wall or a
billboard. But there are also marketing tools used for service products.
3.12 Profit and Marketing:
Profit and marketing partnerships:
Bank marketing has shown that marketing is important even for profit. Sales and profits not
only go hand in hand, but the latter comes from the past.
The common bank today has enjoyed profitable collaboration and marketing. Banks do not
think of both, marketing and profit in normal working conditions. But they are thinking of
these two boundaries in two different parts. When considering marketing, especially at the
operational level of the branch, the pictures you are requesting are those of a combination of
deposits by going out and contacting customers. Sometimes this includes getting a good loan
account.
Benefit direction at branch level:
If profit considerations often take precedence over circumstances, it does not automatically
mean that in the case of operating branch banks generally show a high level of profit
management. There are certain parameters that indicate a high level of profitability. Some of
these are:
i. Extensive awareness at all levels of the branch on the importance of

profitability,
ii. Approval of cost analysis method while evaluating business proposals
(either in the area of deposit, development or unfunded business),
iii. Periodic statistics, monitoring and controlling profit generation, as well
iv. Branch performance appraisal is primarily a profit parameter.
Increased profit management at the branch level:
The most obvious answer in understanding the low profit at the branch level is that banks
need to prioritize large profits in evaluating branch performance. The business performance
of the branches must be evaluated on the basis of the profit they derive. This does not mean
that certain performance parameters should be completely ignored.
Profit-oriented change has many positive effects.
Firstly, at the branch level combining deposits and borrowing has become an end in itself
rather than a means to profit. The importance of profit solves this mental confusion.
Second, customers expect much from banks now than deposit and loan products. The
importance of profitability in branch operations underscores this.

31
2
Thirdly, profit management at the branch level ensures that the priorities and concerns related
to the profit are reflected in the performance of the branch - a state of high and low levels
operating in tandem
3.13 Profit system principles:
1. The primary goal of this redesign will be to establish profitability as a key parameter for
evaluating branch performance.
2. Second, the new system should also take care of those areas that affect the bank's overall
profitability in a significant way, but do not get the definition in branch profit calculation. For
example, drafts are released according to category. The branch that produces these books is
actually causing losses. But the bank benefits.
3. The third goal of the new system can be a profitable and non-profit system for calculating
branch-level interest rates - incentives to improve bank interest rates and distractions.
3.14 Branch Benefit Calculation System - How to:
We are now exploring how profit-making principles can actually be implemented. Some
banks do not know how their branches calculate profits from time to time and monitor its
growth. In this case, perhaps the balancing act of our conversation seems impossible.
Therefore, we will only be committed to quality qualification features. Target Branch Profit:
The first point to note is that branches will chase the target amount of profit beyond the target
deposit or debt levels. But no matter what the plan the value of the profit does not seem to be
normal.
Banking Marketing Training:
The requirements for training in banking marketing in today's environment are mainly in the
areas of attitude, skills development and information acquisition. In fact, training in the
banking industry will use the right combination of methods to have an integrated effect.
3.15 Training Method
There are a variety of methods used by banks in educating banks.
1. External Training: There is an internal training option for external vis-à-vis. Many
banks have stepped in to build their own internal training center. Still the deployment
of banks to the external training program is effective, or in a selective manner. The
main advantages of the external training provided to banks are the flexibility and
versatility of experts and the ability to create ideas.
2. Institutional Training: The most popular method of in-house training is institutional

training. Typically, training program participants are integrated into a bank training
facility and direct training inputs.

32
2
3. Local Training: It is another form of training aimed at gaining growing popularity in

banks. The philosophy developed by the practice is that instead of the trainee coming
to the coach's job, it is the coach who goes to the trainee's job.
4. Telephone Training: A new concept of telephone training. The most outstanding

feature of this app is its amazing accessibility.
5. Workplace Training: Self-training is the most effective and lasting training method.
It is a way of saying that if a person is properly persuaded and motivated to learn,
whatever he learns from the winner is the only lasting lesson. If this goal is kept in
mind by the trainer all the time maybe training will achieve your ultimate goals.
3.16 Bank Distribution Channels:
Distribution channels in financial services perform a number of important

functions, as follows:
1. Sales and provision of services and products, as well as customer advice.

2. Contract and liaise with advertising agencies and public relations to assist in
designing effective advertising / advertising campaigns.
3. Gathering the information needed to plan marketing activities, strategic
decisions and product development.
a. Electronic Ways to Distribute Financial Services:
The need for more efficient branching and distribution has led to the introduction of
electronic methods in financial services. The first ATMs (automated cash machines) were
introduced in the UK in the form of cash withdrawals by Barclays Bank in 1968. The main
objectives of this distribution center were to save on staff costs and time, and to provide
greater customer comfort (i.e., service without regular banking hours).
b. Telephone Marketing:
Consider the case of the largest ‘branch’ of manufacturers in the USA. No customer
visiting. Its customers reside throughout the USA and their business is invited to market by
telephone or direct mail. There has been significant growth in both borrowing and deposit
through telemarketing and direct response to newspaper advertising. These systems can be
more expensive than full branch operation and are especially useful in facilities that do not
have a large network of brick-and-mortar stores.
c. ATMs:
Many banks now have ATMs outside of their branches. Those outside offer a 24-hour
bank to customers. Some banks also have ATMs in the reception area and customers use their
security card to enter the reception area and operate the machine normally. These machines
can be used to withdraw cash, make payments and check accounts or order statements,

33
2
balances or packets of information. ATM1s are also now available in many supermarkets and
factories. The equipment is maintained by the local branch.
The development of an ATM network could mean that at some future time, the
operators will be replaced by ATM machines.
d. Telephone banking:
Some banks now offer home or telephone banking. This may reduce the need for
future branches. An example of this is the First Direct Service of Midland, which is a new
concept in banking. It does not work with the branch network but completely uses the phone
and the postal system. It also provides all standard banking services - current accounts,
Loans, ATM services, and customers can contact the exact first hours of the day.
Midland spent a lot of money advertising this new business. The market they are trying to
attract is the market for young people, especially the age group -, who have more financial
experience and are less likely to deal with telephone issues.

34
2
Million worldwide deposits. The services considered by Indian banks include:
3.17 Sonali Bank Communication Strategy:
Sonali Bank is a third-generation bank. Converted to Islamic Banking on July 01,

2020, with the permission of Bangladesh Bank. Sonali Bank places great emphasis on public
relations in the four days of communication. Sonali Bank does the following to improve its
markets and advertising.
1. When opening a new branch, send a letter to specific people, offices, and industries in the
area so that they can open a bank account.
2. Every year they plan to meet together for their loyal client in Dhaka and Chittagong. For
that reason, Somali Bank builds good relationships with its customers. Sonali Bank also
solves customer problems and demonstrates a problem-solving process.

35
2
3. They organize an award ceremony for an honorable person every year.
4. They send gift items at the beginning of the year to an adult in the community. These items
include pen, diary, calendar, pen storage area, wall clock,

36
2
Chapter- 4
Identify the problems, Recommendations to
solve and Conclusion
Banks are among the most important parts of sourcing money for businesses and are now
very active in giving long term loans.). The main functions of banks are to earn money from
deposits and loans. Commercial Banks follow this step strongly. The main function of a
commercial bank is to mobilize deposits and to provide loans to people and organizations to
finance their consumptions and business activities.
Bangladesh has improved in its economic sectors in recent years. The changes in
governments have created lots of problems in the economic growth rate of the country.
The problems in the banking sectors have arisen mainly from this problem. The problems in
the banking sectors have arisen mainly from this problem. The Governmental decisions also
have huge impact on the banking problems in Bangladesh. The Major problems are:

37
2
1. Low quality of Assets

2. Lack of good governance, accountability and transparency
3. Inadequacy of effective risk management system.
4. Weak institutional control
5. Pre-dominant of individual investors
Major Problem Faced by Bangladeshi Banking Industry:
1. Low quality of asset
The main assets of Sonali bank which they use as their uses or investments are: Reserve,
Cash item in process of collection, Deposits at other banks, Securities and most importantly
Loans. But in our banking sector there are several problems related to the low quality of
assets which banks are using day by day. During our study we have found two major
problems related to the quality issue about the assets of our banking sectors. From the further
part of our discussion, we will try to focus on those particular problems.
The reserve requirement for our banking sector is 19.5% where Statutory Liquidity Ratio
(SLR) is 19.5% including the Cash Reserve Ratio (CRR) 6.5%. If any bank maintains more
money than their required reserve it will be known or stated as excess reserve. The adequacy
of the required reserve of the bank is very important for any country’s economy because if
any bank holds any excess reserve, the money that they are holding in their velour other
sectors it will be stated as idle money which brings no return.
At the month of October and end of year 2013, total liquid asset of the banking sector stood
at Tk. 1860 billion which was more than 1.86 times higher than the liquid statutory reserve
ratio (SLR). As we mention before that this excess money or excess reserve will not bring
any return or will not contribute in our economy. Although during some last year a
significant gap has been created in sources and uses of funds in our banking industry. Our
banking industry is burdened with liquidity surplus and it still continuous if we see the
statistics data of central bank and it shows that at the end of month may, 2014 the excess
liquidity in banking sectors stood 102,223 cores.
2. Lack of good governance, accountability and transparency
The banking industry of our country has continuously made considerable progress but despite
this situation the foreign countries are consider our banking system or banking industry
activities as questionable. This occurs because recent news about bank directors and
chairmen’s involvement in political parties. “So, there has been a possibility to unhand
bank’s important deals with using the bank’s goodwill which will question the factor that is
our banking industry and its’ operations are independent & reliable?
Because of the lack of good governance whatever the banks are publishing in their annual
reports and regulatory paperwork’s and the data they are putting in those papers are they
reliable or actually, correct? Are those papers have been properly audited? These are the
questions which always knocks the financial experts or advisors because a commercial banks

38
2
real competition is not only with its other banks but also it has to compete with then on-
banking financial institutions and micro finance institutions.
Our government is failing to achieve growth of the credit target which is contributing to the
lower investment. The Incremental Capital Output Ratio (ICOR) which measure the
investments of any country has shown us that the GDP of our country should be increased
which is deteriorating over the past few years. At the Fiscal Year 2013-14 government tries
to increase the investment rate at 32 percent of GDP for achieving the GDP growth rate of
7.2percent.
3. Inadequacy of effective risk management system
The risk management system is a combination of some terms which includes: asset quality,
capital adequacy, non-performing loan, expenditure income ratio, return on Asset (ROA),
&return on Equity (ROE). If we first talk about the capital adequacy, we must have to say
that this is a cushion for a bank that prevents bank failure. Capital adequacy is measured by
the capital to Risk Weighted Asset. The regulation from the central bank is a commercial
bank has to maintain 10% of risk weighted asset (RWA) or tk. 200 whichever is higher as the
banks minimum required capital.
The management of the banking sector either it’s sound or not for that the only indicator is
Expenditure Income Ratio (EIR). If the EI ratio is high that is not good or sound for the bank.
In our country the reasons behind high EI ratio are: loan loss provision, high administrative,
overhead expenses, interest suspense for classified loan and the lack of presence of prudential
surveillance of the banking sector.
ROE indicates that high productivity of equity. In year 2011 the overall ROE of the banking
sector was. percent but in year the amount of ROE decreased and it’s reduced by6.5
percentage points. Experts say that if this trend continuous the amount of ROE will be
decreased to 6.80 percent in the year 2013.As we can see that every aspect of risk
management system was affected with some problems and low amount of ROA and ROE
indicates that the profit margin of our banking sector is not very high.
Besides these major problems faced by our banking industry we would like to address some
other issues related to our banking sector:
1. Industrial Loan
Since April-June, 2011 the growth rate in the industrial term loans has been fluctuating
with an irregular movement and growth rate was also negative. For adequate capital
formation loan is a very important factor like the developing country of ours.
2. Agricultural Credit Disbursement
The growth rate of agricultural credit disbursement and the recovery of credit have been
declining after the month of September, 2013. In September, 2013 the disbursement of
agricultural credit was 1149.04 core but in October, 2013 the amount decreased at

39
2
1086.56core. The growth rate of disbursement of agricultural credit was decreased by 5.4
percent in October, 2013.
3. Disbursement of SME loan
Except the specialized banking sector loans given by all banks and financial institutions
has been increased to Tk. 473242.7 core at the end of September, 2013 from Tk. 466162.3
core at the end of June, 2013 but the SME loan has decreased by Tk. 9451.91 core at the
end of September, 2013 from Tk. 24398.34 at the end of September. 2012. It shows that
the growth rate in SME loan sector is negative.
4. Borrowing from the Govt. bank Banks are borrowing more money from the
government since July-September, 2013. Because of the increase of borrowings in
every year the expenditure is also going up because of the higher interest payment
they have to pay to the government for their borrowings
5. Credit Growth Credit growth is the increase in the loans for the private sector,
individuals, establishments and public organizations. When credit is expanding or
increasing, consumers can borrow and spend more and businesses can borrow and
invest more. The expansion of credit tends to cause the price of assets such as property
and stocks to increase, thereby boosting the net worth of the public. Increasing
consumption and investment produces jobs and expands income and profits. However,
every credit-induced economic boom comes to an end when one or more important
sector of the economy becomes incapable of repaying the interest on its debt (Kub
answer, 2015).
6. Non-Performing loans
A non-performing loan is a loan that is in default or close to being in default. Many loans
become non-performing after being in default for 90 days, but this can depend on the contract
terms. Once a loan is nonperforming, the odds that it will be repaid in full are considered to
be substantially lower. If the debtor begins to pay on the NPL it becomes a Reforming Loan,
even if the debtor has not caught up all the missed payments.
Non-performing loans (NPL) has increased in Bangladesh as well. It went to Tk. 567 billion
on the end of September 2013 with a percentage of 33. Therefore, NPL ratio increased to
stand at around 13 percent in 2013 against slightly over 10 percent of December at end
of2012. SCBs contribute mostly on the classified loan portfolio pie. PCB Non performing
loans increased. The NPL ratio of PCB reached to record 7.30 percent. The deterioration of
the asset quality adversely affected the resilience capacity of the PCBs.
The prime focus of the banking sector would be the recovery of the loans that has been made
last part of the previous year through the central bank’s directory. This might put the banks in

40
2
distress if the correct amount is not repaid in at the particular times. These Banks need to
keep additional capital against
1. Residua risk;
2. Credit concentration risk;
3. Liquidity risk;
4. Strategic risk;
5. Reputation risk;
6. Settlement risk;
7. Evaluation of core risk;
8. Operational Risk.
The increased capital requirement might put pressure on the capital requirement of a good
number of banks having marginal capital adequacy (The Financial Express, 2015).
Bangladesh Banks increased the number of Banks. They have thought it will help increase
the quality of banking sectors in Bangladesh. For new banks the ratio of opening inside the
rural area. No banks can focus on rural areas here after focusing on the urban areas. Granting
so many licenses for lots of new banks have created alarming situation. The banking sector is
already saturated with 47 commercial Banks. It was not logical to introduce more. There will
be unhealthy competition (The Financial Express,2015).
7. Surplus Liquidity
Surplus liquidity occurs where cash flows into the banking system persistently exceed
withdrawals of liquidity from the market by the central bank. Surplus Liquidity:
Implications for Central Banks.
Sources of Surplus
1. Foreign exchange reserves build

2. Monetary Financing- asset is lending to government
3. Bank rescue- asset is LOLR credit and is ultimately a loss (Gray, 2006)
” Bangladesh’s commercial banks are washed with idle money due to poor investment
and lower credit demand. Due to political instability al the businesses remained
stopped mainly due to elections.
The banks burdened with the huge idle money were looking for alternative investment
window as reflected from their rising investment in the government securities. The
banks ‘investment in government securities increased by 26% to Tk1tn during the 9
months period till September from Tk bn in January, according to the central bank
data. The investment opportunities for the banks shrunk due mainly for political
unrest, lack of gas and electricity. Besides, they have also barrier to invest in share
market according to the amended bank company act,’’ said a senior executive of a
private bank. However, the banks were taking away investment from the capital

41
2
market instead of reinvesting there as they are bound to keep their exposure limit at
25% of paid-up capital and reserves, which also pushed the liquidity to go high, he
said.
Possible Strategies to Overcome Banking Sector Problems
1. Attract and retain clients Banks and financial services
Firms have to stand out in the crowd by offering customers something extra. "The bottom line
is there is nothing that can differentiate one bank from another, other than making a connection
with customers," says Joe Sullivan, Chief Executive Officer of Market Insights. Sullivan’s
company helps financial institutions with business strategy, planning and marketing. "Make an
emotional connection with the consumer and let them know you understand their financial
needs. Then come at them with solution-based thinking, not product pushing. Sullivan says, the
financial services providers that help customers take ownership of their finances and teach
them to become better money managers will have larger client bases.
2. Knowing customer in a rapidly changing world
Financial services providers must be aware that their customers are changing, too.
According to Sullivan, Consumers are savvier and more aware of their finances than they
were five years ago. The best providers engage customers and learn how their needs are
evolving. If a bank or a business has not viewed at its market or its customers to learn
"whatis going on with them in the last year, you don't know your customers." Sullivan said.
3. Promote confidence in the economy

42
2
The economic crisis that began in 2008 is still very fresh in customers' minds. Large
financial firms collapsed and the government bailed out troubled banks. The stock market
lost value and in much of the country the housing market eroded.
4. Using technology that customers expect
Sullivan said, "Technology has changed the expectations consumers and small businesses
have of their bank". Clients use information on the Internet to compare financial service
institutions. Companies must react to changes in technology to keep reaching customers in
the most effective ways.
5. Watching goodwill or reputation
The financial services world is like high school in some ways: goodwill can be difficult to
control or change. At the moment, consumers are not forgiving many of the companies that
were front and center during the economic crisis.
6. In the wake of these challenges, banks must gain some sound strategies to weather the
strong headwinds during the economic transition. First, banks should strengthen their risk
pricing capability and put more emphasis on small-to-medium enterprises and retail
business. To ensure business growth and maintain high profitability, banks must expand
downward to develop SME and retail customer resources.
7. Second, innovative product lines plus integrated businesses. Economic transition means
basic deposit and loan business will see continuous downward pressure on profitability and
narrowing room for growth. Banks must need to adapt to the trends and the changing
financial demands of customers by rolling out new products and services.
8. Third, banks must have optimized institutional structures with an enhanced corporate
culture. Changes in customer mix and business innovation are founded upon organizational
structure and corporate culture. In future, customers' needs will not be limited only to credit
services, but also cover various aspects including investment services, settlement, and
wealth management. This integrated mode of financial operations requires close
cooperation and coordination among different divisions. Commercial banks should come
up with an appropriate organizational structure for future development.
9. Banks should push for higher efficiency in capital utilization with more contribution from
retail and intermediary businesses. Following the implementation of the new capital
requirements, the previous continuous growth of the commercial banks is not sustainable.
Under current market conditions, banks can only accumulate capital internally.
10. Meanwhile, banks need to realize capital cost in product prices through upgrades in IT
systems. After all, the current bank-led financial system is closely associated to China’s
economic growth model in the past decade which used to rely heavily on exports and

43
2
investment. During the process of economic transition and financial reform, both assets and
liabilities of the banking sector will face stiff challenges and are superimposed against asset
quality risk amidst the economic downturn. Consequently, we see lots of uncertainties in
the foreseeable future while China's large banks can still be formidable names in the sector
if they take correct and necessary steps as soon as possible.
Conclusion:
References:
1. https://www.Sonalibank.co m.bd/
2. https://www.bb.org.bd/en/index.php
3. https://www.Sonalibank.co m.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. Chowdhury, L.P; “A Textbook on Banker’s Advances”; 2nd Edition; Paradise
Printer;
2002
10. Peter S. Rose & Hudgins, Bank Management & Financial Services

44

Intern Report of Md. Abu Hamza Nomaan 173-11-510

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Intern Report of Md. Abu Hamza Nomaan 173-11-510

Uploaded by

Copyright:

Available Formats

2

An Analysis of the Financial Services the

©Daffodil International University

Professor Dr. Mohammed Masum Iqbal

Department of Business Administration

Faculty of Business & Entrepreneurship

Daffodil International University

Md. Abu Hamza Nomaan

Department of Business Administration

Faculty of Business & Entrepreneurship

Daffodil International University

©Daffodil International University

It is my pleasure that I have completed my internship report and am ready to submit my

Md. Abu Hamza Nomaan

©Daffodil International University

©Daffodil International University

Md. Abu Hamza Nomaan

Department of Business Administration

Faculty of Business & Entrepreneurship

©Daffodil International University

©Daffodil International University

©Daffodil International University

An Analysis of the Financial Services Marketing of Sonali Bank Ltd (DEPZ)

The Objective of the study are following:

1. To identify the marketing strategies of Sonali Bank limited;

Methodology of the Study

Sources of information and collection of data:

1. From the Annual Bank Report

©Daffodil International University

©Daffodil International University

3.6 Branch Network of Sonali Bank Limited 18

3.7 Why" Bank Marketing 19-20

Chapter- 04 Findings, Recommendation & Conclusion

©Daffodil International University

©Daffodil International University

1.2 Background of the Study

©Daffodil International University

The Objective of the study are following:

5. To identify the marketing strategies of Sonali Bank limited;

1.5 Methodology of the Study

Sources of information and collection of data:

1. From the Annual Bank Report

1.6 Limitations of the Study

©Daffodil International University

©Daffodil International University

Overview of the Sonali Bank Limited

©Daffodil International University

2.1 Overview of Sonali Bank Limited:

2.2 Objectives of Sonali Bank:

 Improve customer services in recent times by introducing a number of IT-based

2.5 Slogan of Sonali Bank:

Mission of Sonali Bank

3.6. Core Values of Sonali Bank:

Ethics: Everyone must ensure adherence to ethical practices of banking.

©Daffodil International University

Innovation: New and innovative products are the needs of the time for whichcontinuous action-

Commitment: Every employee is committed to working up to the expected level to ensure

Transparency: Information is to be kept open for all so that stakeholders can

Core Business of Sonali bank:

 Corporate Banking  Foreign Exchange  Money Market

 Government Treasury Bonds

©Daffodil International University

Services of Sonali Bank Limited