Chapter: 1

“Introduction”

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1.1 Introduction:

An internship is a period of work experience offered by an employer to give students and

graduates exposure to the working environment, often within a specific industry, which relates to
their field of study. As a student of Bachelor of Business Administration (BBA), it is required
and completed in a certain time. Basically an internship program is generally designed for
students to grow professionally, experience the real corporate working environment as well as
scope and complexity. Moreover, it is a pathway for students to practice professionalism before
entering into a serious job. It helps us to build our self-confidence and interpersonal skills which
are important for the job market. However, it is also beneficial for both the students and
organization to increase relationship for further opportunities. After successful completion of
working with an organization, a report is to be submitted to both company supervisors as well as
academic supervisor for evaluation. As a part of practical orientation program, I was attached to
Sonali Bank Limited Gazipur Court Building Branch, Gazipur for three months. I have tried my
level best to make this report informative and enriched so that the real things can easily be
displayed.

1.2 Objective of the Report:

The report emphasizes on two types of objectives which are given below.
1. Broad Objective

2 Specific Objectives

1.2.1 Broad Objective:

The report is to know about SME loan Activities of SBL.

1.2.2 Specific Objective:

 To know the in detail about SME Loan of SBL.

 To know borrower selection of SME loan of SBL.
 To know the risk management of SME loan of SBL.

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  To know the risk management procedure of SME loan of SBL.
 To identify the problem of SME loan of SBL.
 To recommend and suggest for the development of SME loan of SBL.

1.3 Scope of the report:

Scope means an area of operations or field of the study. In my report, I have highlighted SME
Loan And It’s Risk Management of Sonali Bank Limited. I have also discussed about the
corporate information & structure, background, basic functions & performance of the bank. With
a view to completing the whole report, it was required to concentrate on the overall banking
process. However, in this report, the presentation of SME Loan and Its Risks Management and
tries to find out dissatisfaction and the requirements of the clients of the Sonali Bank Limited.
This report has been prepared on the basis of experience gathered during the period of internship.

1.4 Methodology:

The planned methodology of the study is as follows:

1.5 Sources of data:

Data regarding the completion of this research will be collected from both primary and
secondary sources:

1.5.1 Primary Sources:

The sources are as follows Face-to-face conversation with the Executives and officers of Bank.
(i) Practical work exposures from the different desks.
(ii) Face to face conversation with the client.
(iii) Personal observations.
(iv) Relevant file study as provided by the officers concerned.
(v) Discussion with my bank’s advisor.

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1.5.2 Secondary Sources:

The secondary sources data and information are:

(i) Annual Report of Bangladesh Commerce Bank Limited

(ii) Publications of Bangladesh Bank.

(iii) Newspapers.

(iv) Website information

1.6 Limitation of the Study:

Although I have obtained warm cooperation from employees of Sonali Bank Limited, Gazipur
Court Building Branch, they were too busy to help me sometimes. I have faced the following
problems, which may be termed as the limitation / short coming of the report:

 Most of the primary data were not in the form those can help in writing a report.
 Secondary data is also very rare. It is just only the annual report and the website.
 Confidentiality of data is another barrier that was confronted during the conduct of this
study.
 Lack of comprehension of the respondents was the major problem that created many
confusions regarding verification of conceptual and theoretical perception.

 Lack of availability of sufficient data

In spite of these limitation, I have tried my level best to make this report as best as possible. So
readers are request to consider these limitations while reading and justifying any part of the
report.

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 Chapter: 2
“Overview of the Sonali
Bank Limited (SBL)”

2.1 Background of Sonali Bank Limited:

Soon after independence of the country Sonali Bank emerged as the largest and leading
nationalized commercial bank by proclamation of the Bank’s Nationalization Order 1972
( Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank and Bank
of Bhawlpur. As a fully state owned institution, the bank had been discharging its nation-
building responsibility by undertaking government entrusted different socio- economic schemes
as well as money market activities of its own volition, covering all spheres of the country.

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The bank has been converted to a Public Limited Company with 100% ownership of the
government and started functioning as Sonali Bank Limited from November 15, 2007 taking
over all assets, liabilities and business of Sonali Bank. After corporatization, the management of
the bank has been given repaired autonomy to make the bank competitive and to run its business
effectively.

Sonali Bank Limited is governed by a Board of Directors consisting of 13 members. The bank is
headed by the Chief Executive Officer & Managing Director, who is a well-known Banker and a
reputed professional. The corporate head quarter of the bank is located at Motijhel, Dhaka,
Bangladesh and the main commercials center of the capital.

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2.2 Corporate Information at a glance:

Registered Name Sonali Bank Limited

Logo

Chairman Mr. Md. AshrafulMoqbul

Managing Director & CEO Mr. Md. ObayedUllah Al Masud

Mr. Mohammad Muslim Chowdhury
Mr. Md. Mahboob Hossain
Mr. Md. Shaheb Ali Mridha
Directors
Mr. Kazi Tariqul Islam
Mrs. Sabera Aktari Jamal
Mr. Afzal Hossain
Mr. Muhammed Asadullah

Mr. A.K.M Kamrul Islam, FCA, FCS

Dr. Md. Nurul Alam Talukder

Legal Status Public Limited Company

Emerged as Nationalized Commercial Bank in
1972, following the

Genesis Bangladesh Bank (Nationalization) Order No.

1972(PO No.26 of 1972)
Date of Incorporation 03 June,2007

Date of Vendor's Agreement 15 November,2007

Registered Office 35-42, 44 Motijhel Commercial Area,

Dhaka

Bangladesh Authorized Capital Taka 2000.00 core

Paid-up-Capital Taka 1125.00 core

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Number of Employee
21,839

Number of Branches 1196

Phone-PABX 9550426-31, 33, 34,9552924

FAX 88-02-9561410, 9552007

FAX 88-02-9561410, 9552007

Website www.sonalibank.com.bd

E-mail itd@sonalibank.net.bd

Table 01: Corporate Information of Sonali Bank Ltd.

2.3 Organization Structure:

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 Board of Directors

CEO & Managing Director

Deputy Managing Drector-1 Deputy Managing Drector-2 Deputy Managing Drector-3

General Managers at Head General Managers Field GM

Office-6 Office Division-7

General Managers at Deputy General Managers at

Divisional Head of Head Field Officer (GMO, PO, &
Office Corp. Br.)

Assistant General Manager at

Assistant General Manager at
Field Office
Head Office

Other Executive SEO, EO, SO

Other Executive SEO, EO,
Officer at Field Office
SO, Officer at Head Office

Other Staffs at Field Office

Other Staffs at Head Office

Chart 01: Organizational Structure of Sonali Bank Limited

2.4 Vision:

Socially committed leading banking institution with global presence.

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2.5 Mission:

Dedicated to extend a whole range of quality products that support divergent needs of
people aiming at enriching their lives, creating value for the stakeholders and
contributing towards socio-economic development of the country.

2.6 Slogan:

Your trusted partner in innovating banking.

2.7: CSR of Sonali Bank:

 Corporate Social Responsibility (CSR):

Sonali Bank Limited has been rendering various services for attaining greater social goals and
objectives. For this process, they aim to contribute toward sustainable development of the society
as a whole and fulfillment f corporate social obligation in particular. to reinforce CSR activities,
the bank has undertaken fresh initiatives in line with Bangladesh Bank guidelines in the areas of
social services, empowerment of women and poor, sports & culture, banking for the
disadvantaged group & relief activities.

 Social Services:

SBL has been rendering social service through distribution of various allowances to the freedom
fighters, windows, Old-age citizen, and disable people and so on. Besides, the bank has been
disbursing pension of govt. employees, monthly salary of teachers, and govt. officials without
charges.

 Empowerment of women and poor:

SBL has been providing wholesale credit facilities to different micro credit institution who are in
turn lending amongst the women and poor people in different Income Generating Activities.

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 Sports and Cultural Activities:

SBL has a tradition of patronizing and sponsoring sport and cultural activities at home and
abroad. In 2007, SBL became Champion in the Victory Day Hockey Tournament and Runners’
in the Official Hockey League, Dhaka.

 Employee Welfare:

SBL offers annual stipends and scholarship to the brilliant children of the employees of the bank.

 Future Plan:

SBL will continue to patronize sports and culture at home and aboard. Arrangements will be
made for rendering better social services to the community apart from core banking activities.
Specific action plans will be initiated to expand XSR program in line with the guidelines of
Bangladesh Bank and Securities & Exchange Commission (SEC).

2.8 Products and Services of SBL:

 Products and Services:

1. Personal Banking

2. Rural Credit

3. Micro Credit

 International Banking:

1. Letter of Credit

2. Bid Bond
3. Correspondent banking Relation

 SME Banking:
 Export products (Fringing plant for fish, Tanaree business, and Export furniture).

 Import products (Xining Mill, Garments accessories, and Washing plant Packaging).\

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  Online Banking:
1. Foreign Remittance
2. ATM
3. SWIFT

 Ancillary Services:
1. Utility bills
2. Hajj deposit
3. Land development tax
4. Govt. & Non-Govt. Teachers Salary

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 Chapter: 3
“SME Banking Activities”

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3.1 Small and Medium Enterprise (SME):

Existing definition of SME is recommended by Better Business Forum and accepted as a

uniform one by Ministry of Industry and Bangladesh Bank. Criteria of the definition of SME are
given below:

 Definition of Small Enterprise:

Small Enterprise refers to the firm/business which is not a public limited company and complies
the following criteria:

Serial Sector Fixed Asset other than Employed

No. Land and Building Manpower
(Tk.) (not above)
01. Manufacturing 75 lcs- 15 crore tk 31-120

02. Service 10 lcs- 2 crore tk 16-50

03. Business 10 lcs- 2 crore tk 16-50

Table 02: Small Enterprise

 Definition of Medium Enterprise:

Medium Enterprise refers to the establishment/firm which is not a public limited company and
complies the following criteria are:

Serial No. Sector Fixed Asset other than Employed

Land and Building (Tk.) Manpower (not
above)
01. Manufacturing 15 lcs- 50 crore tk 121-300

02. Service 2 crore – 30 crore tk 51-120

Table 03: Medium Enterprise

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3.2 Reason for taking SME Loan:

SME means Small and Medium Enterprises. Small & Medium Enterprise (SME) plays a pivotal
role in the economic growth and development of a country. Actually, SME works as the platform
for job creation, income generation, and development of forward and backward industrial
linkages and fulfillment of local social needs .Small and medium enterprises (SME) occupy the
space between micro-enterprises and large corporations. An often ill-defined space, definitions
of what constitutes an SME vary greatly across industries, governments and financial
institutions. The most commonly accepted definitions focus on the number of people a company
employs or the company’s annual revenue (turnover). The Bank has disbursing SME loans since
2011 at both personal and institutional level to achieve national sustainable economic growth and
also to eradicate unemployment. It is creating SME entrepreneurs and on the other hand, it is also
creating permanent employment opportunities. Besides, there remains a prevailing SME facility
for women entrepreneurs. Sonali Bank is playing a significant role in the country’s economy and
employment through disbursing loan in SME portfolio.

3.3 Objective of the SME Loan Operation of Sonali Bank Ltd.:

The main focus of Sonali Bank is to develop a human and economic function of the country. Its
function is not limited only to providing and recovering of the loan, but also, try to develop the
economy of a country.

 Support Small Enterprise: The small enterprise which requires 1 to 30 lacks taka loan,
has no easy access to the bank or financial institutions. To facilitate their financing, SME
loan program has been introduced.

 Economic Development: Economic development of a country largely depends on the

small and medium seal enterprises. Bank has an important role in our economic
development. SBL bank provides SME loan development of our economy.

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  Profit Making: SME program is a new dimensional banking system in the banking
world. Most of the CRO’s are providing door to door services to the entrepreneurs. The
entrepreneurs are satisfied with the service of this bank and the bank also makes more
profit.

 Encourage Manufacturing: A focus of Sonali Bank is to encourage manufacturing by

the entrepreneurs who are producing by purchasing various types of materials. SBL
provide big amount SME loan manufacturing sector.

3.4 SME Loan Procedure of SBL:

 Select potential enterprise: For SME loan, in this step the CRO conduct a survey and

identify potential enterprise. Then they communicate with entrepreneurs and discuss the

SME program.

 Loan Presentation: The function of CRO is to prepare loan presentation based on the

information collected and provided by the entrepreneur about their Business, land

property (Where a mortgage is necessary).

 Collect confidential information: Another important function of a CRO is to collect

confidential information about the client from various sources.

 Open clients accounts in the respective bank: When the CRO decided to provide loan

to the client then he/she help the client to open a bank account. SBL bank will disburse

the loan through this account. On the other hand the client will repay by this account.

Although there is some exception occur by the special permission of the authority to

repay by a different bank account.

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  Fill up CIB form: CRO give a CIB (Credit Information Burue) form to the client and the

client fill and sign in it. In some case if the client is illiterate then the CRO fill the form

on behalf of the client. Then CRO send the filled and signed form to the SME, head

office.

 Sending CIB to Bangladesh Bank: The SME, head office collects all information and

sends the CIB form to Bangladesh Bank for clearance. Bangladesh Bank return this CIB

form within 10-12 days with reference no.

 CIB report from Bangladesh Bank: if the client has no loan facility in any bank or any

financial institution then BB (Bangladesh Bank) use ‘NIL’ in the report.

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3.5 Eligibility of SME Loan Borrower:

Sonali Bank Limited emphasizes highest priority on SME financing for eliminating poverty by
increasing SME loan flow at economically underdeveloped area and peoples. Setting up priority
base SME credit Policy for Women and underprivileged entrepreneurs, Sonali bank working for
the improvement of their socio-economic condition.

 SME Loan Lending Policy:

1. Loan Limit:

BDT 50,000 (Fifty thousand) to BDT 500, 000, 00 (Five crore).

2. Criteria of Borrower:
 Bangladeshi Citizen minimum 18 (eighteen) years old;
 Loan defaulter, Bank-rupt, mentally wreaked person cannot apply for loan;
 Women Entrepreneurs highly encourage to apply.

3. Nature of Project/ Enterprise:

 Proprietorship Enterprise;
 Registered Partnership Enterprise;
 Private Limited Company;
 Joint Venture Company excerpt Public Limited Company.

4. Security:
 The collateral security free loan limit for male entrepreneurs is up to Tk. 5 lac.
 The collateral security free loan limit for women entrepreneurs is up to k. 10 lac.

5. Interest Rate:
 Long term project loan- 9%
 Current Capital/ Trading Loan- 9%
 For Women entrepreneur project loan & Current Capital Loan- 9%
(Bank authority reserved the right of changing the Interest rate)

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 6. Period:
 Project/ Team Loan: Maximum 5 years (project period may flexible according t

Project nature)

 Working capital/ Trading Loan: 1 year, renewable at the end of period.

7. Loan: Equity Ratio:

 Project/ Team Loan: 70: 30

 Working capital/ Trading Loan: 75: 25

8. Repayment Procedure:
 Project/ Team Loan: monthly/ quarterly basis repayable within loan period

 Working capital/ Trading Loan: Daly bass or fully repayment within loan

period.

9. Loan Distributing Branch:

 Current Capital/Trading Loan is distributing in all branches.

 Long term project loan is distributing in listed 168 branches.

 LC Limit is distributing from all the Authorized Dealer.

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3.6 Risk Management Process of SME Loan in SBL:
Risk is defined as a possibility of loss due to uncertainty. In simple, risk is uncertainty about the
outcome or expected return. Again risk is the probability that an actual return on an investment
will be lower than the expected return. It can't be mitigated entirely but it can be mitigated
partially through diversification. Taking on various types of risk is integral to the banking
business. Sound risk management is important to a bank's success. Business and revenue growth
have therefore to be weighted in the context of the risks implicit in the bank's business strategy.

Sonali Bank Ltd. also uses some methods to reduce its risk on credit. SBL have two different
ways to analyze the risk of credit. Those are:

1. CIB Query Form.

2. Credit Risk Grading Sheet.

3.6.1. CIB Query Form:

CIB Query Form is a specific form which is provided by the Bangladesh bank. By the use of that
form bank can identify the background of the client. In that form SBL bank provide some
information about the client like:

 Name of the client.

 Valid and updated Trade License.
 National ID.
 Photograph of the proprietor and the guarantors.
 Company TIN photo copy.
 Client TIN photo copy.

A format of CIB Query Form is given below:

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 CIB Online Inquiry Form: Personal Data
(For Borrower/Co-borrower/Company owner/Guarantor)

(Must be filled in English CAPITAL Letter/Type)

Put Tick (√)

Financing for: New Renewal Enhancement
1. Name of the Bank/Financial Institute............SONALI BANK LIMITED....................

2. Name of Branch: Gazipur Court Building Branch, Gazipur

3. Branch Code: 150646

4. F.I. Subject Code (If available):

5. Role (Put √):√Borrower/Co-borrower/Company Owner/Guarantor.

Role in the Company (*If Company owner-MD, Chairman, Director Etc.)

6. Type of Financing: SME

7. Credit Limit/Requested amount:

8. No. of Instalment: 60 Periodicity of payment (in Days 60)

Personal Information:

9. Title:

10. *Name: JAHED KARIM

(Name as to be filled up according to NID/other ID Documents)

11. Father’s Title: Father’s Name: ABDUL KARIM

12. Mother’s Title: Mother’s Name: ZAKIA ZABIN

13. Husband’s Title: Husband’s Name:

14. *National I D No. : 3 4 2 3 0 0 4 1 3 7 5 8 0

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15. ETIN No. : 4 8 6 6 6 6 6 3 3 3 6 1

16. *Date of Birth: 12/01/1980 *Gender (Male/ Female): MALE

17. *District of Birth: GAZIPUR *Country of birth: BANGLADESH

18. *Permanent address:

*Street Name and Number: NORTH SAYALITHI *District: GAZIPUR

*Postal Code: 1700 *Country: BANGLADESH

19. Present Address:

Street Name and Number: DO District: DO

Postal Code: DO Country: DO

20. Other ID:

21. ID Type: Passport/Driving License/ Birth Certificate ID Number: ****

22. ID issue date: ID issue country:

23. *Sector Type: Public/Private *Sector Code: 903050

24. Telephone/Mobile No: 0171525****

25. Date:

(To the best of our knowledge the above information is correct)

Signature of the customer

Seal and signature of the Seal and signature of

Manager Authorized officer
3.6.2 Credit Risk Grading Sheet:

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It is a specific sheet by which the bank gives some points by analyzing the financial condition of
the client and the business situation of the client. Sonali Bank LTD gives the point according to
some attribute. The items are given below:

 Financial risk: In the financial risk SBL did some analysis. Those are: Leverage,
Liquidity, Profitability, and Coverage.
 Business/ Industry risk: In industry risk SBL bank analyze: Size of the business, Age of
the business, Business outlook, Industry growth, Market competition, and Entry / exit
briars.
 Management risk: In managing risk SBL bank analyze: Experience, Second line, and
Team work.
 Security risk: security risk is an arsenical part of risk management. The elements of
security risk are given: Security coverage, Collateral coverage, and Support (guaranty).

SBL bank gives some points according to the points. The format of the Credit Risk Grading
Sheet is given below:

Credit Risk Grading Sheet

(Sonali Bank Limited)
Borrower: Boishkhi Auto mobile Date:
Group Name (if any): Aggregate score:
Branch: Gazipur Court Building
Industry sector: Private Risk grading:Acceptable
Date of financials:
Approved by:
NUMBER GRADING SHORT SCORE
1 Superior SUP Fully cash secured
2 Good GD 85+
3 Acceptable ACCPT 75-84
4 Marginal MG/WL 65-74
5 Special mention SM 55-64
6 substandard SS 45-54
7 Doubtful DF 35-44
8 Bad /Loss B/L <35

Criteria Parameter Score Actual parameter Score

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 A. Financial risk 0.06 15
Leverage (15%) Less than 0.25% 15
Debt to equity ratio- 0.26×to 0.35× 14
times 0.36×to 0.50× 13
0.51×to 0.75× 12
0.76×to 1.25× 11
1.26×to 2.00× 10
2.01× to 2.50× 8
2.51×to 2.75× 7
More than 2.75× 0
Liquidity (15%) Less than 0.25× 15 10.67 15
Current ratio- times 0.26×to 0.35× 14
0.36×to 0.50× 13
0.51×to 0.75× 12
0.76×to 1.25× 11
1.26×to 2.00× 10
2.01× to 2.50× 8
2.51×to 2.75× 7
More than 2.75× 0
Profitability (15%) 50% 15
Operating profit margin Grater then 25% 15
(%) 20% to 24% 14
15% to 24% 13
10% to 14% 12
7% to 9% 11
4% to 6% 10
1% to 3% 7
Less than 1% 0
Coverage (5%) 4.5 5
More than 2.00× 5
EBIT 1.51×2.00× 4
1.25×1.50× 3
1.00×1.24× 2
1.00× 0
Total score 50 50
Industry risk (18%) 1.06 0

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 1. Size of the business >60.00 5 4
30.00-59.99 4
10.00-29.99 3
5.00-9.99 2
2.50-4.99 1
<2.50 0
2. Age of the business >10 year 3 8 2
5-10 year 2
2-5 year 1
<2 year 0
3. Business outlook Favorable 3 Favorable 3
Stable 2
Slightly uncertain 1
Cause of concern 0
4. Industry growth Strong (+10%) 3 Strong (10%+) 3
Good (>5%-10%) 2
Moderate (1%-5%) 1
No growth (<1%) 0
Market competition Dominant player 2 Moderator 1
Moderate competitive 1 Competition
Highly competitive 0
5. Entry/ exit briars Difficult 2 Difficult 2
Average 1
Easy 0
Total score 18 15
Management risk
(12%)
1. Experience. More than 10 year 5 More than 10 year 3
5-10 year 3
1-5 year 2
No experience 0
2. Second line. Ready succession 4 0
Succession within 1-2 3 Succession in
year. question.
Succession within 2-3 2
year.
Succession in question. 0

3. Team Work Very Good 3

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 Very Good 3
Moderate 2
Poor 1
Regular Conflict 0

Total risk 12 6
Security risk (10%)
1.Security coverage Reg. mortg. For SBL 4 3
Registered 3
hypothecation
2nd charge 2
Negative line asset 1
No security 0
2.Collateral coverage Prime aria property 4 4
Semi urban aria 3
property
Plant machinery 2
Negative line collateral 1
No collateral 0
3.Support (guaranty) Strong corporate 2 2
guarantee
average corporate 1
guarantee
No guarantee 0
Total risk 10 9
Grand total 100 80

Table 04: Credit Risk Grading Sheet

Interpretation:

By the calculating the risk rating of the client the bank can easily understand the current situation
of the client the risk score of the client have to be at least 80 or above. If it is 80 or more then
that the client is entitled to get the loan. If it is not more then that the client does not get the loan
from the bank.

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 Chapter: 4
“Internship Duties and
Responsibilities”

4.1 My Internship Background:

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As a student of BBA with the requirement of my course I was assigned Sonali Bank Limited to

Gazipur Court Building Branch, Gazipur of my internship for the period of three months. Firstly

I have send my CV to the branch manager then the branch manager send it to the head for

review, after that I have been accepted for internship position and they send me a joining letter

for my three month internship program. I have joined on August 30, 2018 in this Bank. SBL

Gazipur Court Building Branch, Gazipur. The management officials who are behind the success

of the branch are experienced and highly qualified.

4.1.1 My Daily duties:

I have worked 3 months for Sonali Bank Limited, Gazipur Court Building Branch. I have

worked 5 days a week and my office hour was 10am to 4pm. At the first day my internship

supervisor introduces me to the other internship students and officials then he introduce me with

their software system and taught me how to post the daily financial transactions in the software.

After that I start my regular duties in supervision of my internship supervisor. My supervisor and

manager sir were very co-operative and helpful which makes my job to understand much easier

and faster.

In the internship period it is very important for anyone where practical experience gathered. In

the period of three months internship program I have learn many thing about about general

banking, SME banking activities. Every employees on their helpe me so much so that I can

undersand the work easily. During my internship, I have worked in different section.

4.2 Duties & Responsibilities in Loan department:

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I have worked in SME baking department as well other department as well like loan department.
They didn’t allow me to do any critical work I tried to help them in different work. Some of
those work which I have done in the loan department as follow:

 Observe the borrower financial statement.

 Fill up the grantor information.

 Learn about the declaration of the borrower.

 Put seal to the Loan application form

 Learn about the letter of disbursement procedure.

 Verifying the signature of the borrower and introducer

 Check the trade license date.

4.3 Duties & Responsibilities in internship organization:

As an intern, I did some specific tasks which I had to do under the specific departments. As there
are some rules and regulations I didn’t get a chance to work the entire department, especially in
the cash department because it is a very restricted area.

As an internee what I have done so far these are given below:

 Open the savings account, current account, FDR and RMSS account those who want to

keep their money in safe.

 Verifying the signature of introducer for account openings a Collecting checks requisition

from customers.

 Fill up the cheque application form and Cheque issue procedure.

 Showing the customer how to write in the Cheque book.

 Fill up the accounting opening form and KYC form.

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  Separate the debit and credit voucher then adjustment the debit and credit voucher with

separate supplementary.

 Collecting necessary papers from customers such as- photocopy of National ID card.

 Passport Trade-License, Tax identification number (TIN).

 Put seal to the deposit, account openings books.

 Fill up the Nominee additional form.

 Fill up the online money transfer from.

4.4 Learning from Internship:

I have learnt much necessary information about the banking sector and their activities. As
my focus concern in SME banking so I was more involved with that but I also worked in
others department. The internship experience will help me much to build my career in more
professional way. My leaned experiences are as follows:

 I have leaned the formalities to open several account.

 I have learned the SME banking system.

 I have learned how to close an account.

 Verify signature in different issue was one of my learning from the SBL.

 I have learned how to issue check book.

 I have learned Time management.

 I have learned how to handle any critical situation in corporate life.

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 Chapter: 5
“Finding, Recommendation
and Conclusion”

5.1 Findings:

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  SME loan interest rate is not satisfactory to the customer; it is higher interest rate to the

customer.

 SME loan mortgage is higher to the customers of SBL.

 SBL should carefully choose the proprietors while disbursing the SME loan.

 Inexperience proprietors are not encouraged to gain the SME loans.

 SME loan processing system is lengthy process for the customers.

 SME loan disbursement policy is flexible for the SME entrepreneur of SBL.

5.2 Recommendation:

Sonali Bank has focused on enhancing the long term sustainability of the bank, building value

for the shareholders, employees and the wider community. Its activities are driven by ethical

business practices and sense of responsibilities to all stakeholders. During this study I have found

some lacking of SBL which they can improve so that more entrepreneurs feel interest to take

SME loan. SBL can fix the problem of long process of taking SME loan. SBL can reduce the

mortgage so that small entrepreneur can take loan. They should choose the proprietor carefully

while giving the SME loan.

5.3 Conclusion:

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Sonali Bank is the largest bank as well as the largest employers in both public and private sectors

in Bangladesh. The Banks play a vital role in the socioeconomic development through the

development of industrial sectors by providing all the conventional banking services as well as

some specialized financing activities to the economy. The popularity of banks is increasing day

by day which leads to increase competition as well. All the public banks are offering almost the

same products and services and almost same their operation system.

To conclude this report it can be said that it was a great opportunity to study the SME loan

activities of Sonali Bank Limited. I have learned the full process of SME banking activities

during my internship period. I fell luck that I have passed three months in Sonali Bank, Gazipur

Court Building Branch, Gazipur. I have learned many activities during my internship period

which practiced in the bank.

References:

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Websites:

1. Corporate profile of SBL. (n.d.). Retrieved November 2nd , 2018, from

https://www.sonalibank.com.bd/#

2. SME Loan from Sonali Bank in Bangladesh. (June 30, 2016). Retrieved November 6th ,
2018, from http://www.amarpolicy.com/sme-loan-from-sonali-bank-in-bangladesh/

3. SME (Small & Medium Enterprise) Loan.(n.d.). Retrieved November 7th, 2018, from
https://www.sonalibank.com.bd/sme.php

PDF:

1. Bangladesh Bank. (n.d.). Small & Medium Enterprise (SME) Credit Polices &
Programs. [PDF]. Retrieved November 11th, 2018 from
https://www.bb.org.bd/sme/smepolicye.pdf

2. Annual report of SBL 2016.(n.d.). Retrieved November 15th, 2018 from

https://www.sonalibank.com.bd/PDF_file/financialreport/2016/Auditors_report_financia
l_statement_2016.pdf

3. Bangladesh Bank. (n.d.). Small & Medium Enterprise (SME) Loan Polices. [PDF].
Retrieved November 15th , 2018 from https://www.bb.org.bd/sme/smepolicye.pdf

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 Appendix

Abbreviations

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 Short Form Full Form

SBL Sonali Bank Limited

BB Bangladesh Bank

Ltd. Limited

SME Small & Medium Enterprise

CSR Corporate Social Responsibility

ATM

SWIFT Society for Worldwide Interbank Financial

Telecommunication
CIB Credit Information Burue

Govt. Government

Table 05: Abbreviations

SME loan application form:

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37 | P a g e
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 CIB Online Inquiry Form:

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 SME Loan Criteria:

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