Sonali Bank Annual Report 2021 PDF

YEAR OF EXPLORING
NEW FRONTIER
ANNUAL REPORT 2021

COVER RATIONAL
YEAR OF EXPLORING
NEW FRONTIER
On the auspicious occasion of golden jubilee, Bangladesh with her infinite potentials and
indomitable spirit has emerged as the world’s wonder in the journey towards development
and prosperity under the guidance and leadership by the current government. In
confluence with the nation, Sonali Bank Limited, established by Bangabandhu Sheikh
Mujibur Rahman, is also marking its glorious 50 years of establishment with all stakeholders
declaring the year as ‘‘Year of Exploring New Frontier”. ‘‘New Frontier’’ means opening up
the door to reach people through its diversified and befitting digital products along with
conventional products and services.
The logo comprised of people represents Sonali Bank limited which is ever committed
to serve the people, country and the nation. The bank vows to serve the people, pledges
to deliver the banking services to the doorsteps to the unbanked people, and cherishes
to engage with the people. The golden colored letters symbolize prosperity and success,
confidence to reach our potentials and champion of banking arena.
Sonali Bank Limited is indispensably tied up to Bangladesh from her independence by
improving social indicators, promoting government priorities of industrialization, financial
inclusion, entrepreneurship development and employment generation where people
always remains at the centre stage.
KEY ACHIEVEMENT 2021
(Figure in Tk. Million except stated otherwise)
+ 223 + 92,030 + 0.02% - 1.05%

Net Profit Deposit Capital Adequacy Ratio Rate of Classified Loans
2021 2020 2021 2020 2021 2020 2021 2020

3,457 3,234 1,350,816 1,258,786 10.04% 10.02% 17.32% 18.37%
+ 104,364 + 4.55% + 0.49% - 0.25%

Loans & Advances Advance Deposit Ratio Earning Per Share Cost of Fund
2021 2020 2021 2020 2021 2020 2021 2020

690,597 586,233 51.12% 46.57% 7.63% 7.14% 4.98% 5.23%
+ 115,569 + 58,383 + 0.05% +5.47%

Total Assets Total Investment Return on Equity (ROE) Credit Deposit Ratio
2021 2020 2021 2020 2021 2020 2021 2020

1,706,803 1,591,234 688,065 629,682 4.26% 4.21% 102.06% 96.59%
Validity of Surveillance Rating Upto October 2022 Upto November 2021

CREDIT One As Government Supported Bank Long Term Short Term Long Term Short Term
Step AAA ST-1 AAA ST-1
RATING Ahead
Without Govt. Supported Bank
A+ ST-2 A ST-2
Outlook Stable Stable
128 Graphical Presentations
MANAGEMENT REVIEW
TABLE OF
131 Key Financial Data and Ratios of SBL AND OTHER INFORMATION
Profitability, Dividend, Performance and
136 188 Management Discussion and Analysis
Liquidity Ratio
CONTENTS
137 Segment wise Presentation 194 Awards and Recognition
138 Statement of Value Addition and its Distribution 196 Products and Services of SBL
140 Market Value Added Statement 199 Media Highlights 2021
141 Financial Calendar 2021 and 2022 200 Photo Gallery
142 Credit Rating
Auditors’ Report and

ORGANIZATIONAL Chairman and Managing
RISK MANAGEMENT AND Financial Statements
INFORMATION Director’s Message
CONTROL ENVIRONMENT
209 Consolidated Financial Statements-SBL
08 Letter of Transmittal 48 Message from the Chairman
144 Report on Core Risk Management
09 Notice of the 15th Annual General Meeting 52 CEO & Managing Directors’ Message 215 Financial Statements-SBL(Solo)
10 Corporate Vision and Mission 152 BASEL-III Compliance Report

335 Financial Statements- Sonali Investment Ltd.
12 Core Values Corporate 152 Market Disclosures under Piller-III
364 Financial Statements- Islamic Banking Window
13 Ethical Principles
Governance
372 Sonali Exchange Co. Inc (SECI)
14 Strategic Objectives of SBL 58 Directors’ Report Sustainability Analysis and
15 Statement of Forward Looking Approach 90 Corporate Governance Integrated Reporting 384 Sonali Bank (UK) Limited
16 Corporate Profile 103 Certificate with Compliance Report on CG 171 Report on Sustainable Banking
19 Group Corporate Structure Compliance Report with BSEC Notification on ADDITIONAL
104 174 Report on Human Resources
20 Corporate Organogram
CG INFORMATION
115 CEO and CFO’s Declaration to the Board 178 Report on Financial Inclusion
22 Milestones 393 Domestic Branches of SBL
116 Directors’ Responsibility for FR and IC 180 Customer Care
24 List of Chairman 406 SBL Remittance Network with World Map
117 Report of the Audit Committee 183 Citizen Charter
25 List of Managing Directors & CEOs of SBL 408 Overseas Branches of SBL
Note from the Chairman of Risk Management 184 Report on Corporate Social Responsibility
26 SBL at a Glance 120 408 Representative Branches of SBL
Committee
Government Transactions and Works Related to
185 409 Branches of Sonali Bank (UK) Ltd.
Social Responsibility
Board of Directors and STAKEHOLDERS 410 Branches of SECI, USA
186 Contribution to National Economy
Management profile INFORMATION 412 List of Acronyms
28 Board of Directors & its committees 413 Standard Disclosure Index

122 Stakeholders and Shareholders Information
34 Directors’ Profile 417 SBL Branch Network
124 Redressing to Shareholders’ Observations
44 Management Team
127 Comparative Financial Highlights of SBL
YEAR OF EXPLORING NEW FRONTIER
LETTER OF TRANSMITTAL
All Shareholders of Sonali Bank Limited/
Registrar of Joint Stock Companies and Firms/
Bangladesh Securities and Exchange Commission (BSEC)/
Bangladesh Bank
Dhaka.
Sub: Annual Report for the year ended 31 December, 2021.
Dear Sir(s),
We are pleased to enclose herewith a copy of the Annual Report 2021 along with the Audited Financial Statements
(Consolidated and Solo) of Sonali Bank Limited for the year ended 31 December, 2021 and as on that date for your kind
information and record.
Financial Statements of ‘The Bank’ comprise that of Sonali Bank Limited whereas Consolidated Financial Statements comprise
Financial Statements of ‘The Bank’ and those of its operational subsidiaries- Sonali Investment Limited and Sonali Exchange
Company Inc. (SECI), USA presented separately. Analyses in this report, unless explicitly mentioned otherwise, are based on
the financials of ‘The Bank’, not the Consolidated Financials.
Yours sincerely,
(Md. Ataur Rahman Prodhan)
CEO & Managing Director
8
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Annual Report 2021

OUR VISION
Socially committed leading banking

institution with global presence.
10
OUR 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.
Annual Report 2021

CORE VALUES
The core value proposition of Sonali Bank Limited consists of the
following key elements which would assist the Bank in perceiving its
employees to work as a team towards accomplishment of assigned
duties and responsibilities for achievement of desired objectives. The
core values include:
ACCOUNTABILITY
ETHICS
All employees are responssible for their activities and will remain
Everyone must ensure adherence to ethical practices of
accountable to their respective superior for accomplishment
banking.
of tasks.
OBJECTIVITY TRANSPARENCY
All persons will have definite objective in carrying out Information to be kept open for all so athat stakeholders can
their tasks. have proper ideas about the activities of the Bank.
INTEGRITY TEAM WORK

Protection and safeguard of national and customer’s Open communication, discussion and interaction amongst
interest are vital elements for societal trust. the employees would ensure unification of acitons and efforts
towards achiving the common goal(s).
EXCELLENCE SELF RELIANCE

Excellent performance and effectiveness are pre- Each employee will have ownership attitude towards the Bank
conditions to ensure quality service to the large customer and self confidence in his work for the betterment of the Bank.
base of the Bank.
COMMITMENT INNOVATION
Every employee is committed to work upto the expected New and innovative products are the needs of the time which
level to ensure satisfaction of valued customers. continuous aciton oriented researches are being carried out.
12
ORGANIZATIONAL INFORMATION
ETHICAL PRINCIPLES
Ethics is a combination of moral qualities and a collection of measurements
that inquire into the values, norms and rules which form the essentials of
the individual and social relations established by people from the moral
aspect of right-wrong or good-bad. Sonali Bank Limited deals with public
money where Ethics, Integrity and Trust is the utmost important. Bank
upholds these principles in every aspect by its Management, Regulatory
Compliance and Customer Services.
Sonali Bank Limited strongly realizes the functions of use of sources, the prevention of the unjustified competition
investments and savings by playing an intermediary role among the banks, provide services to the customers with
between the parties in society that supply funds and demand uncompromising integrity, protect privacy and confidentiality
funds respectively, also aims the principles of profitability and
of customer information, prevent money laundering and
productivity stipulates the requirement that they have to work
in accordance with the Ethical Principles in the professional fraudulent activities, demonstrate work place respect, banks
and organizational fields. are to regulate their relations not only among themselves
but also with the other stake holders and employees in
Setting off from the expansion of the banking system, the
improvement of the quality of banking services, the optimal concordance with the Ethical Principles.
Annual Report 2021

STRATEGIC OBJECTIVES OF SBL

The core objectives of Sonali Bank Limited are to conduct transparent and
high quality banking services to ensure maximum customers’ satisfaction
as well as ensure financial strengthening through expanding market share
within the country and abroad.
Long-standing elements of the Bank’s strategy for achieving its objectives include :
Greater emphasize to serve potential and unbanked Improving corporate governance through strengthening good
population of the country through providing banking corporate culture, motivation, training and supervision in all
services to under-served areas with the scaling up of levels of management.
various pilot initiatives.
Developing Human Resource Management System to

Gaining competitive advantages by lowering overall cost
motivate and retain the human resources and transform
compared to that of competitors.
human resources to human capital through proper training in
every aspects of working area.
Retaining our top leadership position by providing quality by sector, size, economic purpose and geographical location
customer services. and expand need based retail and SME/Microfinance/Women
entrepreneur financing
Investing in the thrust and priority sectors of the Cost control optimization at all levels of operation by ensuring
economy. budgetary control and maximizing revenue through quality
services and product diversification.
Providing impeccable and progressively better customer Ensuring strong internal control and compliance culture
services through introducing changed technologies. through establishing strong control environment and sound
compliance within the Bank.
Being excellent in serving the cause of least developed Developing sound and effective risk management culture
community and areas. within the Bank to safe guard the banking assets and protect
the interest of the dipositors and other stake holders.
Improving of deposit mix by maintaining share of low Ensure dedicated service to the government as an exchequer
cost and no cost deposit in total deposit as well funded and government transactions (government receipts and
business. payments) in order to achieve expected economic growth.
14
STATEMENT OF
FORWARD LOOKING APPROACH
The Bank involved in various non-business activities for the well being
of its millions of citizens besides its special focused on selected business
segments such as corporate lending and finance, securities business and
asset management as well as acquired an outstanding position in the foreign
countries through export and trade finances. In order to retain the leadership
position within banking sector in the country, an extensive area of this
annual report has covered the Bank’s forward-looking statements on the
basis of its management’s current expectations and assumptions regading
the company’s business performance and non business involvemant. In
coming days, the Bank is looking for fair development in the following areas
to sustain its position as number one bank of the country.
z Highest degree of ICT inclusion. reduction of ROA and ROE

z Engagement of talented employees. z Fluctuation in international prices of essentials
z Exclusive human resource development efforts. which influences the oscillation in foreign exchange
market.
z Exclusive business re-engineering.
z Compliance issues raised by the International
z Customer service improvement.
Forums which are likely to affect the export growth
z Efficient internal control system. in the industrial sectors.
z Improvement of internal work environment. z Changes in the demand for deposit, loan, and
z Establishment of risk based management system. investment products and other financial services in
z Adequate internally generated capital. the markets we serve.
As any projection or forecast, forward-looking statements z The outcome of pending or threatened litigation,
are inherently susceptible to uncertainty and changes in or of other matters before regulatory agencies,
circumstances. The company’s actual results may vary whether currently existing or commencing in the
materially from those expressed or implied in its forward- future.
looking statements. Important factors that could cause the z Environmental conditions that exist or may exist on
Bank’s actual results to differ materially from those in its properties owned by, leased by, or mortgaged to
forward-looking statements include government regulation, the Company.
economic, strategic, political and social conditions and the
following factors: z Changes in accounting principles, policies,
practices and guidelines in line with IFRS and BB
z Changes in the monetary and fiscal policies of the requirements.
Government, including policies of the Department
of the Treasury and Bangladesh Bank. z Changes in credit ratings or in our ability to access
the capital markets along with other economic,
z Changes in interest rates, which may affect net
competitive, governmental, regulatory, technological,
income, prepayment penalty income, mortgage
banking income, and other future cash flows, or the and geopolitical factors affecting our operations,
market value of our assets, including our investment pricing and services.
securities. z Priority of government and the regulator.
z Changes in capital management policies of the z Status of ICT inclusion.
Bank including use of derivatives to mitigate our
interest rate exposure. z Inclusion of new generation human resources.
z Changes in corporate tax structure along with z The changed banking requirements of the
legislation and regulation of VAT on banking services. customer.
z Changes in CRR and SLR of the banks as well z Peer Bank’s forward movements.
as increase of provision requirements resulting
Annual Report 2021

CORPORATE PROFILE
Name of the Company Sonali Bank Limited
Registered Office 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh
Genesis Emerged as a Nationalized Commercial Bank following the Bangladesh Bank
(Nationalization) Order No. 1972 vide President’s Order No. 26 of 1972.
Legal Status Public Limited Company
Date of Incorporation 03 June, 2007
Date of Commencement of Business 03 June, 2007
Vendor’s Agreement 15 November, 2007
BB License No. BRPD(P-3)745(1)/2007-1602
Banking License obtained 05 June, 2007
Date of Company Registration 03 June, 2007
Company Registration No. C-67113(4605)/07
Authorized Capital BDT 60,000.00 Million
Paid up Capital BDT 45,300.00 Million
Face Value per Share BDT 100.00 per Share
Shareholding Pattern 100% share owned by Government of the People’s Republic of Bangladesh
Tax Identification No. (TIN) 465337943663
Vat Registration No. (BIN) 000000063
Chairman of the Board of Directors Mr. Ziaul Hasan Siddiqui
CEO & Managing Director Mr. Md. Ataur Rahman Prodhan
Head of Risk Management Mrs. Sanchia Binte Ali
Head of ICC Mr. Imran Ahmed
Chief Financial Officer Mr. Subhash Chandra Das, FCA, FCMA
Chief Information Technology Officer Mohammad Rezwan Al Bakhtiar
Chief Audit Officer Mr. Imran Ahmed
Company Secretary Mr. Tauhidul Islam
DOMESTIC NETWORK
No. of Branches 1227
No. of Urban Branches 500
No. of Rural Branches 727
No. of General Managers’ Office 15
No. of Principal Office 66
No. of Treasury Branches 732
No. of AD Branches 48
No.of Corporate Branches (incl. LO) 32
No. of Computerized Branches 1227
No. of Core Banking System Branches 1227
No. of Administrative Office 82
No. of ABB Operated Branches 1227
No. of RMS+ Operated Branches 1227
No. of SMS Banking Operated Branches 1227
+
No. of Islamic Window 58
No. of Head Office Divisions 47
16
OVERSEAS NETWORK
No. of Branches 02
Location of Branches Kolkata (India), Siliguri (India).
No. of Correspondence 692
No. of Representative Offices 03 (02 in KSA and 01 in Kuwait)
ATM Booths 157
Subsidiaries
Sonali Exchange Co. Inc. (SECI), USA 336 East 45th Street, 8th Floor, New York,
NY-10017, USA.
Tel: (212) 808-0790, (212) 808-4085
Email: compliance@sonaliexchange.com
Sonali Investment Limited Borak-Biz Center (1st Floor& 2nd Floor)
70 Dilkusha Road, Dhaka 1000
Phone: 88-02-9568777, PABX: 9556940, 7170001 Ext.101
E-mail: info@silbd.com, sblmbu@yahoo.com
Sonali Bank (UK) Ltd. 29-33 Osborn Street, London E1 6TD, U.K.
Phone: 00-44-(0)20-7877-8200 (Switch Board)
:00-44-(0)20-7877-8231 (Direct)
Fax:00-44-(0)20-7377-9924
E-mail: enquiries@sonali-bank.co.uk
Associates
Sonali Intellect Limited 35, Kamal Ataturk Avenue,
Abedin Tower, 7th Floor,
Banani Commercial Area, Dhaka-1213
No. of Employee 18,200
Corporate Rating Status
Surveillance Rating with Government Long-term: AAA, Short-term: ST-1
Support
Surveillance Rating without Government Long-term: A+, Short-term: ST-2
Support
Phone PABX +88-02-9550426-31, 33, 34, +88-02-9552924
Fax 88-02-9561410, 88-02-9552007
SWIFT Code BSONBDDH
Email sblho@sonalibank.net.bd
sbhoitd@sonalibank.net.bd
sbhoitd@bttb.net.bd
sbhoid@bdmail.com
Website www.sonalibank.com.bd
Annual Report 2021

Legal Advisors of SBL

01 Begum Hosne Ara Begum 02 Mr. Khaled Bin Shahriar
Haque Law Chamber (2nd floor), Suit no: 906 (9th floor),
Jiban Bima Bhaban, H.M.Siddiqui Mension, 55/A,
121, Motijheel C/A, Dhaka. Purana Paltan, Ramna, Dhaka.
Mob: 01711522775 Phone: 02-9574376
03 Mohammad Shafiqul Islam 04 Mr. Fayez Ahmed

Room no:105 (Anex Extension Bhaban), Room no: 227, Supreme Court Bar Bhaban,
Supreme Court Lawyers Association, Dhaka. Dhaka-1000.
Mob: 01711583269 Mob: 01711440304
05 Md. Rokonuzzaman
Suit no: 404 (3rd floor), Ibrahim Mension,
11, Purana Paltan, Dhaka.
Mob: 01715330077
Auditors of SBL
ACNABIN Aziz Halim Khair Choudhury
Chartered Accountants Chartered Accountants
BDBL Bhaban (Level-13), 12 Karwan Bazar C/A, Dhaka, Phulbari House, House 25, Road 1. Sector 9,
Bangladesh. Uttara Model Town, Dhaka 1230, Bangladesh
Tel: +88-02-41020030, Fax: +88-02-41020036 Tel: +88-02-55080235, Fax: +88-02-55080236
Tax Advisor of SBL
Akhter Zamil and Co.
Chartered Accountants
Ibrahim Mansion (1st Floor), Room No. 207, 11, Purana Paltan, Dhaka-1000.
Telephone: 88 02 7124898
E-Mail: akhterzamil@yahoo.com
Credit Rating Company of SBL
Credit Rating Information and Services Limited(CRISL)
Nakshi Homes (1st, 4th & 5th Floor)
6/1/A, Segunbagicha
Dhaka -1000.
Law Consultant
Md. Barekuzzaman
18
GROUP CORPORATE
STRUCTURE
Sonali Bank Limited
SUBSIDIARIES ASSOCIATES
Overseas Overseas
Sonali Exchange Co.
Sonali Bank (UK) Limited
Inc. (SECI) US
Local Local
Sonali Investment Sonali Intellect
Limited (SIL) Limited
Name of the Date of No. of

Status Paid-up Capital Prime Activities
Company Establishment Branches
Merchant banking, portfolio

Sonali Investment BDT 2000.00 management, issue
22 April, 2010 05
Limited million management, capital market
transactions.
Subsidiaries Remittance business,

Sonali Exchenge Co. 12 December, USD
10 undertake and participate in all
Inc. (SECI), USA 1994 950,000.00
transactions.
Sonali Bank (UK) 07 December, GBP 61.46

02 LC bills and remittance business.
Limited 2001 million
Customize, enhance, modify

Associates Sonali Intellect 01 February, BDT 75.00
- and implement Intellect CBS
Limited 2012 million
10.0 Software.
Annual Report 2021

YEAR OF EXPLORING NEW FRONTIER ORGANIZATIONAL INFORMATION
CORPORATE Corporate organogram reflects the corporate governance culture of

the organization. It shows the relation between Board of Directors,
ORGANOGRAM head office divisions, controlling offices and branches as well as
employees of the Bank as a whole. Organogram of Sonali Bank
Limited is structured as follows:
Board of Directors
Chairman, Directors
Executive Committee CEO & Managing
Director
GM & Company CEO & MANAGING Sonali Bank Limited
Audit Committee Secretary DIRECTOR'S
COMPANY AFFAIRS AND Your Trusted Partner in Innovative Banking
Risk Management Committee BOARD DIVISION (CABD)
SECRETARIAT
Corporate Organogram
DMD DMD DMD DMD DMD
SBL Offices/Branches
Head Office Divisions : 47
Chief GM,
Chief Audit GM Chief
GM Information
Principal (GM) GM Office (GMO) : 15
Officer (CAO) GM Financial GM Technology GM GM TRAINING Local Office
GM Officer (CFO) GM Principal Office (PO) : 66
Officer (CITO) DIVISION (TD) GM,
Recovery-LO
AUDIT & INTERNATIONAL CENTRAL INFORMATION

Local Office Br. : 1
INSPECTION
AGRO-BASED
TRADE ACCOUNTS
LOAN DISCIPLINE &
TECHNOLOGY
BRANCHES COMMON
Sonali Bank GM, GM Headed Corporate Br. : 2
PROJECT
CLASSIFICATION APPEAL CONTROL SERVICES BB Avenue
DIVISION-1
(CORPORATE BRANCHES &
FINANCING FINANCE DIVISION
DIVISION (LCD) DIVISION (DAD)
DIVISION
DIVISION (BCD) DIVISION (CSD) Staff College DGM Headed Corporate Br. : 24
DIVISION (APFD) DIVISION (OPERATION) (BUSINESS IT) Corp Br :
CONTROLLING OFFICES)
AGM Headed Corporate Br. 5
AUDIT & TREASURY CENTRAL
6 SBTI Training
AGM Headed Br. : 59
INSPECTION
GENERAL
MANAGEMENT ACCOUNTS
LOAN
EMPLOYEES
IT DIVISION BUSINESS
ESTABLISHMENT
&
Institutes) :
CTG, Mymensingh,
GM, SPO Headed Br. : 375
WELFARE &
ADVANCES RECOVERY (INFRASTRUCTURE DEVELOPMENT Ramna Corp
DIVISION-2
DIVISION (GAD)
DIVISION - 1 DIVISION
DIVISION (LRD)
TRANSPORT
IT) DIVISION (BDD)
ENGINEERING Khulna, Rajshahi,
Bogura, Cumilla.
PO Headed Br. : 543
(OTHER THAN CORPORATE
(FRONT OFFICE) (PAYMENT) DIVISION (EWTD) DIVISION (EED) Br :
BRANCHES )
SO Headed Br. 218
EXTERNAL INDUSTRIAL OVERSEAS Br:
Foreign Br. : 2
TREASURY GOVT.
LEGAL
HUMAN
IT DIVISION
O
FOREIGN SECURITY AND
GM
AUDIT PROJECT MANAGEMENT ACCOUNTS &
MATTERS
RESOURCE
(IT SERVICES
REMITTANCE
PROTOCOL DIVISION
(SPD)
Kolkata Br
Kolkata Br, India
I ndia
Sonali
Total Branches : 1,229
COMPLIANCE FINANCING DIVISION - 2 SERVICES DEVELOPMENT MANAGEMENT Chief Security Siliguri Br, India
DIVISION (LMD) MANAGEMENT) Investment
DIVISION DIVISION (MID & BACK OFFICE) DIVISION (GASD) DIVISION (HRDD) DIVISION (FRMD) Officer (CSO)
Representative Ltd (Subsidiary of Sonali Investment Limited : 1
INTERNAL SMALL AND MONEY LAUNDERING
Office: SBL) SECI, USA : 1
HUMAN 4 Branches =
AUDIT MEDIUM RECONCILIATION
RISK
RESOURCE
IT DIVISION PUBLIC & TERRORISM
FINANCING
Riyadh-KSA;
Motijheel Main Br;
Sonali Bank (UK) Limited : 1
MANAGEMENT (IT PROCUREMENT RELATIONS Jeddah-KSA;
COMPLIANCE ENTERPRISE DIVISION (RD)
DIVISION (RMD)
MANAGEMENT & MAINTENANCE) DIVISION (PRD)
PREVENTION
Kuwait Paltan; Uttara; SBL, Representative Offices : 3
DIVISION DIVISION (SME) DIVISION (HRMD) DIVISION (MLTFPD)
Mirpur. Khulna
(ex MLTFPVD)
Sonali Bank Ltd. Manpower:

Sonali Exchange
FOREIGN
EXCHANGE AUDIT MICRO CREDIT
INFORMATION
SECURITY, IT RISK
CARDS
VIGILANCE AND
COMPLAINT Company Inc.
GM CEO & MD : 1
MANAGEMENT & Sonali
AND INSPECTION
DIVISION (FEAID)
(MCD)
DIVISION (MCD) FRAUD CONTOL
DIVISION
DIVISION (CD) MANAGEMENT
DIVISION (VCMD)
((SECI),
SECI ), USA
(Subsidiary of SBL) Bank(UK)Ltd
DMD : 5
9 Branches:
Manhattan;
(Subsidiary of GM & eq. : 30
CONTROL & Jackson Heights; Astoria;
SBL) DGM & eq. : 146
MONITORING RURAL CREDIT
MIS &
STATISTICS
ISLAMIC
BANKING
Atlanta; Michigan;
Paterson; Jamaica; 2 Branches =
AGM & eq. : 372
DIVISION DIVISION (RCD)
DIVISION (MSD) DIVISION (IBD) Ozone Park; Bronx. London Main Br.; SPO
SPO &&eq. : 11,274
274
(CMD) 1 Booth: Brooklyn.
Birmingham. PO & eq. : 2,793
SO & eq. : 5,346
Officer & eq. : 12,937
Total Manpower : 22,904
GMO
GMO, GMO
GMO, GMO, Chattogram GMO
GMO, GMO
GMO, GMO
GMO, GMO
GMO, GMO
GMO, GMO, GMO
GMO, GMO
GMO,
DHAKA-1 DHAKA-2 (CHITTAGONG) KHULNA SYLHET RAJSHAHI RANGPUR Cumilla MYMENSINGH FARIDPUR Barishal
106 Br 106 Br. 109 Br. 123 Br 80 Br. 143 Br 116 Br. 139 Br. 118 Br. 106 Br. 78 Br.
PO: PO: PO: PO: PO: PO: PO: PO: PO: PO: PO:
Bangabandhu Avenue Dhaka West (Ramna), CTG-North, Khulna; Sylhet; Rajshahi; Pabna; Rangpur; Dinajpur; Cumilla; Mymensingh; Faridpur; Barishal
(Dhaka Central), Dhaka East (Motijheel), CTG-South, Jashore; Moulvibazar; Bogura; Gaibandha; Chandpur; Tangail; Madaripur (Shariatpur); (Jhalakathi);
Dhaka South (Sadarghat)
, Mirpur, Narayanganj, Thakurgaon (Panchagarh);
Patiya-CTG, Jhenaidah (Magura); Habiganj Sirajganj; Brahmanbaria; Kishoreganj; Kushtia; Patuakhali
Gazipur, Narsingdi Munshiganj
Rangamati Satkhira Naogaon; Natore Kurigram(Lalmonirhat) Noakhali; Feni Jamalpur Chuadanga( Meherpur) (Barguna)
(Kh hh i)
RO: Manikganj RO: - RO: Cox's Bazar; RO: Bagerhat; RO: Sunamganj RO: Joypurhat, RO: Nilphamari RO: Laxmipur RO: Sherpur; RO: Rajbari; RO: Pirojpur;
Bandarban Narail Chapai Nawabganj; Netrokona Gopalganj Bhola
DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br:
Wage Earners'; BWAPDA Corp; Agrabad Corp; Khulna Corp; Darga Gate Corp; Rajshahi Corp; Rangpur Corp; Cumilla Corp Mymensingh Corp Faridpur Corp ---
Dilkusha Corp; Foreign Exch; Laldighi Corp; Daulatpur Corp;
Sadarghat Corp; Shilpa Bhaban;
Wage Earners'-Ctg AGM Corp Br: AGM Corp Br: AGM Corp Br: AGM Corp Br:
PM's Office; Dhaka Cantt.;
DU Corp Br; Dhanmondi;
AGM Corp Br : Sylhet Corp(AGM) Bogura Corp(AGM) Dinajpur Barishal Corp
Hotel Sheraton Chawk Bazar; Jashore Corp(AGM) Corp(AGM) (AGM)
(InterContinental) Narayangonj Corp
Corp Branch.
20 Annual Report 2021

YEAR OF EXPLORING NEW FRONTIER ORGANIZATIONAL INFORMATION
MILESTONES
1972 1974 1985 1989 1990 1994 2001 2006
Commencement Inauguration of 1st computer
of banking
operatrion of million Bank
Sonali Bank Sonali Bank
First agency
transactions
First annual report
2005 2007
1993 1999 commencement
of business of
million Sonali Bank
Foreign remittance
1973 1980 1986

Foreign remittance
million
2014 2016 2018 2020

2009 2010 2012 Achieved Highest Achieved the ICMAB
trillion Operating Pro�t Best Corporate Award.
Implementation of (20257.37 million) Achieved Highest
in Overall Banking Operating Pro�t
Sector. (21526.93 million)
Retail Banker in Sonali Bank in Overall Banking
Achieved Highest
SMS Banking Net Pro�t Sector.
Islami Banking Strongest Bank in Operation being (2264.21 million) Achieved Highest
Asian Banker Among all State Owned Net Pro�t
Implementation of Commercial Banks in (3234.35 million)
RMS+ Software Bangladesh. Among all State Owned
Collecting Bank Best Corporate
Commercial Banks in
Bangladesh.
2021
2017 2019 1st Position in Annual
2015 1st position in Annaul

Performance
Agreement (APA) by
the Ministry of
Performance Finance.
Agreement (APA) Achieved the ICMAB
Core Banking 2018-29 by the Best Corporate Award.
2011 Financial Institutions

Division.
Awarded one of the
“Highest Vat Payers” by
2008 2013 Achieved Center for Large Tax Payers Unit

2009 to 2013 million
Non-Residance
Bangladesh (NRBs)
(Vat) of National Board
of Revenue (NBR).
ICMAB Best Award. Achieved Highest
million
Operating Pro�t
Financial Institute of (20903.75 million)
in Overall Banking
Sector.

LIST OF
CHAIRMANS
Sl. Managing Director and Chairman, Sonali Bank Tenure
01 Mr. G. M. Chowdhury 29.03.1972 – 26.03.1973
02 Mr. A. K. N. Ahmed 27.03.1973 – 17.11.1974
03 Mr. S. A. Chowdhury (Current Charge) 18.11.1974 – 24.01.1975
04 Mr. K. A. Rashid 25.01.1975 – 12.03.1981
Sl. Chairman, Board of Directors, Sonali Bank Tenure
01 Mr. A. M. Zahiruddin Khan (MP) 15.04.1981 – 31.03.1982
02 Mr. S. A. Khair 19.05.1982 – 04.12.1985
03 Mr. Chowdhury A. K. M. Aminul Haque 14.01.1986 – 30.03.1986
04 Mr. Keramat Ali 20.04.1986 – 09.04.1989
05 Major General (Retd.) M. Shamsul Haque (MP) 23.04.1989 – 24.05.1990
06 Mr. Md. Abdur Rahim (MP) 04.06.1990 – 25.11.1990
07 Mr. Md. Akhtar Ali 26.12.1990 – 30.06.1991
08 Mr. Iqbal Mahmud 04.08.1991 – 12.02.1996
09 Mr. A. N. M. Eusuf 28.02.1996 – 06.08.1996
10 Mr. M. Asafuddowlah 03.09.1996 – 03.08.1998
11 Mr. Mohammed Farashuddin 08.09.1998 – 18.11.1998
12 Mr. A. I. Aminul Islam 14.12.1998 – 14.06.2000
13 Mr. Muhammed Ali 27.06.2000 – 31.07.2001
14 Professor Dr. Amirul Islam Chowdhury 09.08.2001 – 07.08.2002
15 Mr. B. M. M. Mozharul Huq, NDC 12.08.2002 – 20.04.2003
16 Professor Mahbub Ullah 22.08.2003 – 19.04.2006
17 Mr. A. B. Mirza Md. AzizulIslam 19.04.2006 – 12.12.2006
18 Mr. Ali Imam Majumder 14.12.2006 – 16.11.2007

Sl. Chairman, Board of Directors, Sonali Bank Limited Tenure
01 Mr. Ali Imam Majumder 17.11.2007 – 09.09.2009
02 Mr. Quazi Baharul Islam 14.09.2009 – 27.12.2012
03 Dr. A H M Habibur Rahman 27.12.2012 -19.04.2015
04 Mr. Md. Fazle Kabir 05.05.2015-20.03.2016
05 Mr. Mohammad Muslim Chowdhury, Chairman (Acting) 21.03.2016-25.07.2016
06 Mr. Md. Ashraful Moqbul 26.07.2016–30.07.2019
07 Mr. Ziaul Hasan Siddiqui 28.08.2019 – Till Date
24
CEO & MANAGING DIRECTORS

OF SBL
Sl. Name Designation Tenure
Administrators / Managing Directors of Sonali Bank
01 Mr. M. Fazlur Rahman Administrator 16.12.1971 - 28.03.1972
02 Mr. G. M. Chowdhury Managing Director 29.031972 – 26.03.1973
03 Mr. A. K. N. Ahmed Managing Director 27.03.1973 – 17.11.1974
04 Mr. S. A. Chowdhury (Current Charge) Managing Director 18.11.1974 – 24.01.1975
05 Mr. K. A. Rashid Managing Director 25.01.1975 – 02.06.1979
06 Mr. S. A. Chowdhury (Current Charge) Managing Director 05.06.1979 – 31.07.1979
07 Mr. K. A. Rashid Managing Director 01.08.1979 – 12.03.1981
08 Mr. Abul Hashem (Current Charge) Managing Director 13.03.1981 – 02.05.1981
09 Mr. M. Ijadur Rahman Managing Director 03.05.1981 – 05.09.1983
10 Mr. Lutfar Rahman Sarker Managing Director 06.09.1983 – 01.01.1985
11 Mr. Ashraful Haque Managing Director 02.01.1985 - 31.07.1986
12 Mr. Shah Md. Afanur (Current Charge) Managing Director 01.08.1983 - 09.08.1986
13 Mr. A. A. Qureshi Managing Director 10.08.1986 - 01.10.1988
14 Mr. M.M.Nurul Haque (Current Charge) Managing Director 02.10.1988 - 18.04.1989
15 Mr. M. Ahsanul Haque Managing Director 19.04.1989 – 01.08.1996
16 Mr. Kh.Monjur Murshid (Current Charge) Managing Director 02.08.1996 - 02.08.1996
17 Mr. A. Q. Siddiqui Managing Director 03.08.1996 – 18.02.1997
18 Mr. Khandkar Ibrahim Khaled Managing Director 18.02.1997 – 03.11.1997
19 Mr. Mahbubur Rahman Khan Managing Director 03.11.1997 – 02.11.1999
20 Mr. Mahammad Hussain Managing Director 03.11.1999 – 02.01.2000
21 Mr. Md. Yusuf Ali Hawlader (Acting) Managing Director 03.01.2000 – 05.01.2000
22 Mr. Md. Enamul Haque Choudhury Managing Director 06.01.2000 – 15.05.2001
23 Mr. S. A. Chowdhury Managing Director 16.05.2001 - 12.11.2001
24 Mr. Rabiul Hossain Managing Director 12.11.2001 – 08.07.2004
25 Mr. M. Tahmilur Rahman Managing Director 09.07.2004 – 16.11.2006
26 Mr. Md. Amanullah (Additional) Managing Director 17.11.2006 – 16.12.2006
27 Mr. S. M. Aminur Rahman Managing Director 17.12.2006 – 14.11.2007
CEO & Managing Directors of Sonali Bank Limited
01 Mr. S. M. Aminur Rahman Managing Director & CEO 15.11.2007 – 25.01.2008
02 Mr. Mohammad Humayun Kabir(Additional) Managing Director & CEO 26.01.2008 - 27.01.2008
03 Mr. S. A. Chowdhury Managing Director & CEO 28.01.2008 – 27.01.2010
04 Mr. Kazi Fakhrul Islam (Additional) Managing Director & CEO 28.01.2010 – 19.05.2010
05 Mr. Mohammad Humayun Kabir Managing Director & CEO 20.05.2010 – 19.05.2012
06 Mr. Mohammad Atiqur Rahman (Additional) Managing Director & CEO 20.05.2012 – 16.06.2012
07 Mr. Pradip Kumar Dutta Managing Director & CEO 17.06.2012 - 16.06.2016
08 Mr. Ataur Rahman Prodhan (Additional) Managing Director & CEO 17.06.2016 – 23.08.2016
09 Mr. Md. Obayed Ullah Al Masud CEO & Managing Director 24.08.2016- 23.08.2019
10 Mr. Md. Ataur Rahman Prodhan CEO & Managing Director 28.08.2019- Till Date
Annual Report 2021

26
SONALI BANK LIMITED
AT A GLANCE
(Tk. in million)
Capital
Loans and Classified Foreign Operating Manpower Manpower No of Authorized Paid up
Year Deposit Import Export Net Profit Adequacy
Advances Loans remittance Profit (Officer) (Staff) Branches Capital Capital
Ratio
2021 1350816 690597 119585 314539 32114 125264 20904 3457 10.04 16288 1912 1229 60000 45300
2020 1258786 586233 107674 165662 25173 129056 21527 3234 10.02 16738 2180 1226 60000 45300
2019 1158788 551026 111994 255965 25666 111483 17100 2710 10.09 17245 2364 1224 60000 45300
2018 1097666 464166 121883 257020 32503 102781 20257 2264 10.10 14671 2600 1215 60000 45300
2017 1064311 423218 149302 1155300 28494 82292 11955 7092 10.35 15308 2993 1211 60000 41300
2016 1031608 384538 109115 134328 36882 105922 4251 1516 10.33 18793 1410 1209 60000 38300
2015 866012 346346 86849 200599 45432 124798 8651 587 10.08 19401 2699 1207 60000 38300
2014 778043 337554 86437 300143 63525 127652 8547 6055 12.24 19554 2892 1204 60000 31200
2013 685895 343451 103769 195892 62967 132862 2971 3580 7.59 19653 3237 1203 20000 11250
2012 599294 378147 125975 287288 87408 116866 11036 (24959) (0.94) 20088 3295 1200 20000 11250
2011 533192 345991 61588 307479 80878 101538 12391 9957 12.60 18596 3342 1196 20000 11250
2010 478134 286098 68315 164043 74143 104378 8489 (975) 10.80 17989 2851 1187 20000 9000
2009 406152 254023 69834 96864 64442 102609 2311 3490 14.60 18091 3415 1183 20000 9000
2008 364386 231167 72677 151465 79390 103445 1617 2311 12.61 11507 10332 1182 20000 9000
2007 328997 206348 92014 76497 78046 92178 4247 974 12.47 11769 10773 1183 10000 9000
2006 302303 241029 58901 67763 79695 98449 3006 (36276) (16.32) 12118 11155 1183 10000 5000
2005 277079 227001 51126 118528 64092 75482 3964 208 4.06 12380 11553 1183 10000 3272
2004 252234 168283 47654 85239 57213 76680 953 158 4.65 12732 11718 1186 10000 3272
2003 230339 155198 49664 52577 47907 65535 540 106 5.08 12260 12455 1186 10000 3272
2002 222222 156113 52863 52940 41503 66098 910 159 5.07 12380 12857 1221 10000 3272
2001 215541 141993 54399 41419 43809 50090 491 82 5.02 12728 13025 1291 10000 3272
2000 197381 133281 51507 50822 44211 47935 797 132 - 12171 13875 1293 10000 3272
1999 169373 123563 57761 35276 38958 41303 126 126 - 11990 14065 1306 10000 3272
(Tk. in million)
Capital
Loans and Classified Foreign Operating Manpower Manpower No of Authorized Paid up
Year Deposit Import Export Net Profit Adequacy
Advances Loans remittance Profit (Officer) (Staff) Branches Capital Capital
Ratio
1998 151707 94441 47112 34271 36828 29793 102 102 - 12061 14457 1311 10000 3272
1997 136062 85451 39009 32040 33158 24092 132 132 - 11629 14496 1313 10000 3272
1996 123835 76116 30867 29505 26284 19810 248 248 - 8716 17527 1313 10000 3272
1995 110833 65830 25081 41872 20998 19781 716 716 - 8667 17551 1310 10000 3272
1994 101411 53893 21245 28368 18818 18809 613 613 - 8736 16941 1307 10000 3272
1993 84685 53631 21600 13136 12140 15385 20 20 - 8149 17487 1303 10000 3272
1992 76678 48693 17567 13294 10557 14984 45 45 - 8285 16477 1300 10000 2427
1991 68766 45218 11971 12234 10668 13756 17 17 - 7661 17450 1296 10000 2427
1990 57392 44311 - 16980 12559 13180 51 51 - 7608 17650 1291 10000 2427
1989 52214 41868 - 20190 11335 11846 52 52 - 7480 18222 1285 200 55
1988 45795 35277 - 17271 9703 11305 160 160 - 7337 18507 1276 200 55
1987 39629 29808 - 16563 7531 11356 164 164 - 7148 18441 1262 200 55
1986 35572 29272 - 14465 6835 10300 459 459 - 7363 18522 1254 200 55
1985 34576 27541 - 13514 7290 8501 499 499 - 6080 19191 1245 200 55
1984 27031 22123 - 9721 6151 9081 552 552 - 6099 18321 1233 200 30
1983 20497 17011 - 9796 5841 11022 505 505 - 5253 16084 1214 50 30
1982 15961 16832 - 9432 5675 8343 481 481 - 3931 13776 1055 50 30
1981 11927 11856 - 8182 4701 5101 232 232 - 3947 13940 1031 50 30
1980 10967 9626 - 10926 4648 4206 177 177 - 18183 1011 50 30
1979 8388 6756 - 7908 4051 5773 96 96 - 13481 843 50 30
1978 5996 4833 - 3632 3363 3885 64 64 - 11744 709 50 30
1977 4662 3625 - 2951 2336 1805 98 98 - 10135 600 50 30
1976 3844 2419 - 2175 1649 777 91 91 - 8556 450 50 30
1975 3329 2151 - 2741 912 442 97 81 - 6989 400 50 30
1974 2278 1677 - 2163 663 189 40 31 - 6294 359 50 30
1973 2103 1290 - 703 525 216 25 21 - 5760 306 50 30
1972 1731 854 - 43 22 - 05 02 - 4708 274 50 20
Annual Report 2021

BOARD OF
DIRECTORS
Ziaul Hasan Siddiqui A.B.M Ruhul Azad

Chairman Director
A. K. M. Kamrul Islam FCA, FCS Ishtiaque Ahmed Chowdhury

Director Director
28
BOARD OF DIRECTORS AND THEIR PROFILE
Dr. Daulatunnaher Khanam Md. Mofazzal Husain Molla Abdul Wadud

Director Director Director
Professor Dr. Mohammad Kaykobad Dr. Md. Matiur Rahman Md. Ataur Rahman Prodhan
Director Director(Joined on 10.02.2022) CEO & Managing Director
Annual Report 2021

COMPOSITION OF COMMITTEES
OF THE BOARD OF DIRECTORS
Executive Committee
Sl. Name Status with the Bank Status with the Committee
01 Mr. Ziaul Hasan Siddiqui Chairman Chairman
02 A.B.M Ruhul Azad Director Member
03 Mr. Md. Mofazzal Husain Director Member
04 Mr. Molla Abdul Wadud Director Member
05 Mr. Md. Ataur Rahman Prodhan CEO & Managing Director Member
Audit Committee
01 Mr. A.K.M. Kamrul Islam FCA, FCS Director Chairman
02 Mr. Ishtiaque Ahmed Chowdhury Director Member
03 Dr. Daulatunnaher Khanam Director Member
04 Professor Dr. Mohammad Kaykobad Director Member
Risk Management Committee

01 Mr. Ishtiaque Ahmed Chowdhury Director Chairman
Composition of Shariah Supervisory Committee

Sl. Name Status with the Committee
01 Professor Dr. Muhammad Abdur Rashid Chairman
02 Mr. Md. Mofazzal Husain Member
03 Mr. Md. Ataur Rahman Prodhan Member
04 Deputy Managing Director-1 Member
05 Mr. Md. Abdul Awwal Sarkar Member
06 Mufti Mohammad Muhibbullahil Bakee Member
07 Dr. Md. Ruhul Amin Rabbani Member
30
EXECUTIVE
COMMITTEE
Ziaul Hasan Siddiqui A.B.M Ruhul Azad
Md. Mofazzal Husain Molla Abdul Wadud Md. Ataur Rahman Prodhan
05 Mr. Md. Ataur Rahman Prodhan CEO & Managing Director Member
Annual Report 2021

AUDIT
COMMITTEE
A.K.M. Kamrul Islam FCA, FCS Ishtiaque Ahmed Chowdhury
Dr. Daulatunnaher Khanam Professor Dr. Mohammad Kaykobad
32
RISK MANAGEMENT
COMMITTEE
Ishtiaque Ahmed Chowdhury A.B.M Ruhul Azad
Dr. Daulatunnaher Khanam Md. Mofazzal Husain Professor Dr. Mohammad Kaykobad
Annual Report 2021

Ziaul Hasan Siddiqui

Chairman
Mr. Ziaul Hasan Siddiqui joined as Chairman of the Board of bank Ltd. He was an advisor to Prime Bank Limited and was
Directors of Sonali Bank Limited on 22 August, 2019. He is an independent director of Union Capital Ltd., Summit Power
the former Deputy Governor of Bangladesh Bank. Ltd., and Summit Purbanchal Power Co. Ltd. Before joining
as Chairman of Sonali Bank Limited, Mr Siddiqui was CEO
Mr. Ziaul Hasan Siddiqui has track-record of successfully
of IOF (IGW Operators Forum). He taught Microeconomics,
developing customized financial and management strategies
Macroeconomics, Financial Institutions and Markets at BRAC
to meet the needs of bank on the basis of continuous
University, Northern University, University of Asia Pacific
analysis of economic trends. He has strong ability to
and Australian Catholic University in Sydney. He is also the
quickly understand an organization; evaluate business
Chairman of the Sonali Investment Limited. He also lectured
and investment opportunities prevailing in the market and
at Bangladesh Public Administration Training Centre,
leverage those based on organizational strengths. He is
Defence Services Command and Staff College and National
equally savvy to ensure business growth and diversification.
Defence College.
Mr. Siddiqui has highly successful and results-driven
Mr. Siddiqui obtained his MPA (Masters in Public
exposure in the financial sector with more than 35 years
Administration) degree from Harvard University (USA)
of comprehensive versatile Central Bank experience. Mr.
and MA degree in Economics from Dhaka University. He
Siddiqui started his career with Bangladesh Bank in 1976. He
enhanced his professional expertise by participating in a
served as Deputy Governor of Bangladesh Bank for more
number of foreign training courses including ones from
than 5 years with specialization in monetary policy, foreign
Ohio State University, World Bank, IMF and ADB. Besides
exchange policy and reserve management. He also served
having professional diploma in Banking (DAIBB), Mr. Siddiqui
as Head of Financial Intelligence Unit (FIU) of Bangladesh
has completed Training and Assessment Certificate Course
tasked with the responsibility of upgrading Anti Money
from Australia.
Laundering (AML) regime to international standard and
formulating strategies for Combating Financing of Terrorism Late Rahim Uddin Siddiqui, father of Mr.Siddiqui was a
(CFT). He played a key role in making Taka convertible for renowned Journalist of many prominent National Dailies
current account transaction, moving from fixed to floating of the country, including the Daily Azad, Ittefaq, Millat etc
exchange regime, sovereign rating of Bangladesh and and died a premature death while working as a class one
drafting the Guidelines for Foreign Exchange Transaction. gazetted officer (information officer). Late Julekha Siddiqui,
mother of Mr. Siddiqui was a homemaker. Mr. Siddiqui’s wife
He was the Managing Director of Security Printing Press
Mrs. Bilu Siddiqui, is a Grade-A singer of Bangladesh Betar
Corporation Bangladesh Ltd. and a member of the APG
and BTV. She also performs in different TV channels. Mr.
Steering Committee representing South Asian Countries. He
Siddiqui is blessed with a daughter and a son. Both of them
also acted as the Chairman of Bangladesh Commerce Bank
live in Australia.
Ltd., Board member of Karma Sangsthan Bank Ltd. and AB
34
A.B.M Ruhul Azad

Director
Md. A.B.M Ruhul Azad was appointed as a Director of the Administration. He was promoted as Joint Secretary in 2013
Board of Directors, Sonali Bank Limited on 15 June, 2021. and promoted as Additional Secretary in 2017.
He is also an active member of Executive Committee and
Mr. Azad obtained his B.Sc. (Honors) degree in Agricultural
Risk Management Committee of the Board of Directors of
Science from Sher-E-Bangla Agricultural University, Dhaka.
Sonali Bank Limited. He has been working as the Additional
He also obtained MSS degree in Government and Politics.
Secretary of Financial Institutions Division of Ministry of
Finance, Government of the People’s Republic of Bangladesh Mr. Azad has participated in different international
since October 23,2018. conferences and meetings as a member of Bangladesh
delegation. Mr. Azad had the opportunity to participate
Mr. Azad is respected for his innovative ideas, concepts and
various training, workshop and seminar held in different
various challenging endeavors in Management & Public
countries of the world such as India, South Korea, Singapore,
Administration. Mr. Azad enjoyed various positions at the
Thailand, Vietnam, China, Netherlands, Austria, Belgium,
national level such as Additional Secretary of Ministry of
Switzerland, France, Turkey, Italy and USA. He also completed
Youth and Sports, Director of Bangladesh Krira Shikkha
training program on “Public Administration Development
Pratisthan (BKSP), Deputy Director of National Housing
Program on Public Policy, Service Delivery and Negotiations”
Authority (NHA) and Deputy Secretary, Ministry of Industries.
from Duke University, North Carolina, USA. He has a special
A. B. M Ruhul Azad is a career Civil Servant and started his training on Intellectual Property Right System.
career of as an officer of BCS 8th Batch (1986).The first
A. B. M Ruhul Azad was born on 1st January, 1963 in a
date of his joining in the service was 20 December 1989.
respectable muslim family in the District of Narsingdi. He is
During the early stage of his career Mr. Azad worked in
married to Ms. Mirza Morsheda Mahbub. They are blessed
different position of Bangladesh Ansar. In 2006 Mr. Azad
with two sons.
was appointed as the Deputy Secretary of Ministry of Public
Annual Report 2021

A.K.M. Kamrul Islam FCA, FCS

Director
Mr. A.K.M. Kamrul Islam was appointed as a Director to the Mr. Islam was an active member and elected Director
Board of Directors of the Bank on 22 December 2016. He is of Dhaka Chamber of Commerce and Industry (DCCI)
the Chairman of the Audit Committee of the Bank. He is a for 2005-07 and 2016-2018. He is currently Senior Vice
partner of Islam Aftab Kamrul & Co. Chartered Accountants. President of DCCI. He also has been elected as the Director
He has special expertise in Assurance & Auditing, Taxation of Japan Bangladesh Chamber of Commerce and Industries
and Financial Consultancy Services. (JBCCI) for the period of 2016-2018. He is President of the
Accounting Alumni, University of Dhaka and Life Member of
Mr. Islam became Chartered Accountants and fellow
Transparency International Bangladesh Chapter.
member of the Institute of Chartered Accountants of
Bangladesh (ICAB) in 1993. He is also a fellow and associate Mr. Islam is respected for his innovative ideas, concepts
member of many National and International Professional and various challenging endeavors in business sectors and
Bodies. social works in Bangladesh. He has 29 years of professional
experience.
Mr. Islam is a fellow member of Institute of Chartered
Secretaries of Bangladesh (ICSB); associate member of Mr. Islam graduated with Honors and Masters in Accounting
Information System Audit and Control Association (ISACA), from Dhaka University. He visited India, Pakistan, Nepal,
USA and International Institute of Internal Auditors, Florida, Bhutan, Japan, China, Thailand, Singapore, Malaysia,
USA; life member of Bangladesh Economic Association Netherlands, Belgium, Germany, Saudi Arabia etc.
since 1997; member of Bangladesh Society for Total Quality
Mr. Islam, son of late Alhaj A.K.M. Tajul Islam and late Hasne
Management (BSTQM); founder member of Intellectual
Ara Islam, was born in Comilla on 14 January 1959. He is
Property Association of Bangladesh (IPAB) and Chairman of
married to Mrs. Syeda Kaniz Fatema who is a housewife.
Mashnoons Limited.
They have two daughters.
36
Ishtiaque Ahmed Chowdhury

Director
Mr. Ishtiaque Ahmed Chowdhury, has been nominated as situational leadership approach and can pursue tough goals
the Director of the Board of Directors of Sonali Bank Limited in any market scenario.
on September 19, 2018. Prior to this, he was the Managing
He is a dreamer, humanitarian, organizer and an art
Director & CEO of Trust Bank Limited.
connoisseur. He is involved in Rotary Club and held position
Having started his career with Rupali Bank Limited as of President of Jahangirnagar, Dhaka unit of Rotary District.
Probationary Officer in 1977, Mr. Chowdhury gained He is also Treasurer of Combat Hunger Project Committee of
grounded experiences in many fields ranging over rural Rotary International District. He is a member of Uttara Club,
banking, SME banking, Wholesale Banking and Client Kurmitola Golf Club, and Childhood Cancer Foundation,
Acquisition that helped him make remarkable turnaround Dhaka. He is presently Executive Member of Association
of loss incurring branches into profitable ones within target of Bankers Bangladesh (ABB). He is a “Tax Card” holder, a
time. very prestigious status provided by NBR for 2011-2013.
Mr. Chowdhury has also won the 13th Rapport Award for
Mr. Chowdhury spent half of his career time in AB Bank
Excellence in Human Resource Development-2013.
Limited, the first private commercial bank of the country,
from 1984 through 2002. He headed major corporate With a distinctive academic track record, he passed S.S.C
branches of the Bank including Kawran Bazar, Uttara, and and H.S.C in 1968 and 1970 respectively. He holds MSS
Motijheel Corporate Branch. He also worked in Financial degree with Honors in Political Science and Law from the
Control department of the Bank for almost four years. University of Dhaka. He is a DiplomaEd Associate of Institute
He won the best manager award and appreciation for his of Bankers, Bangladesh.
outstanding performance at the Bank.
Mr. Chowdhury visited many countries for official purpose
Over the last 29 years, Mr. Chowdhury’s career evolved as a as well as personal pleasure. He participated in a good
well rounded banker with adequate exposures in Strategic number of professional trainings, workshops, and seminars
Risk Management, Revenue Growth, Client Acquisition, and at home and abroad. He participated in a certificate course
Operations Management. titled ‘Value Creation in Banking and Strategic Management
in INSEAD (Business School for the world) frame sponsored
Mr. Chowdhury believes in inclusive banking and has Always
by Standard Chartered Bank from October 29 to November
put efforts to bring banking services to the doorstep of
01, 2015.
people at large. He strongly holds that a banker has to be
trustworthy and dedicated towards serving people in order Mr. Chowdhury was born in Sylhet in 1953. His father was
to uplift their livelihood and socio economic status. a member of Assam Legislative Council of British Period
in Assam, India. Mr. Chowdhury is married to Syeda Latifa
He has also proven to be an effective team player and
Ishtiaque. Their only son, Chowdhury Ahmed Tausif Ishtiaque
can get things done by ensuring coherent and integrated
has graduated from Institute of Business Administration (IBA),
management atmosphere. He is one of the proponents of
University of Dhaka and is now working in HSBC Bangladesh.
Annual Report 2021

Dr. Daulatunnaher Khanam

Director
Dr. Daulatunnaher Khanam has been director of Sonali Bank Dr. Khanam took part in international training programs,
Limited since January 13, 2019. Prior to this, she was the workshops and seminars in USA, UK, Japan, Malaysia,
Deputy Managing Director of Bangladesh House Building Singapore, Thailand, Tunisia and Turkey. She participated in
Finance Corporation. many training programs at home as well.
Dr. Khanam started her banking career as Senior Officer in Dr. Khanam authored important text books of Economics
Bangladesh Krishi Bank in 1984. Right from the beginning for Higher Secondary students and Bangladesh Studies for
she applied herself to excel as a professional banker. As a graduate students that have become very popular among
result, she rose steadily through ranks to become the Deputy the students and teachers. She has serious publications to
Managing Director in 2018. During her long career, she held her credit on various economic topics in prestigious journals
various important positions in the bank. at home and abroad.
Dr. Khanam has a distinguished academic career. She Dr. Khanam is a life member of Bangladesh Economic
graduated from Jahangirnagar University with honours in Association and Economic Association of Jahangirnagar
Economics in 1981 and completed her MSc in 1983 from University and Associate member of Bangladesh Society for
the same University. One year after she had joined BKB, She Training & Development Center, Dhaka.
received a scholarship of the Indian government for Ph.D
She was born in a respectable Muslim family in 1959 in the
in Economics in Banaras Hindu University, Banarasi, India.
district of Kishoregonj. She is married to Mr. Md. Shamsul
Her dissertation topic was ‘Role of Institutional Finance in
Kabir Khan and is blessed with two daughters and one son.
Agricultural Development of Bangladesh.’ She was awarded
Ph.D degree in 1990.
38
Md. Mofazzal Husain

Director
Mr. Md Mofazzal Husain, former Director of Janata Bank Mr. Husain received extensive training on banking related
Limited and Managing Director of Rajshahi Krishi Unnayan subjects both at home and abroad. He participated in a
Bank was appointed as a Director of Board of Directors of Nashville, Tennessee, USA & Citicorp School of Banking,
Sonali Bank Limited on 13 May, 2019. New York, USA in 1993 organized under joint collaboration
He is a member of Audit Committee and Risk Management of FSRP (Financial Sectors Reforms Program) & USAID. He
Committee of the Board of Directors of Sonali Bank Limited. also visited Japan, Hong Kong, Thailand, India, United Arab
Emirates, Oman, Saudi Arabia, Germany, Switzerland and
He obtained MBA degree from the Institute of Business
programs/seminars and for other purposes.
Administration (IBA), University of Dhaka in 1977.
Mr. Husain has more than 36 (Thirty six) years of core Specially relating to Banking, Finance and Management
banking experience with increasing responsibilities in career as a Resource Person/Guest Speaker in Training Institutes
commenced with Sonali Bank Limited as Senior the rank of of Mr. Husain is associated with various socio-cultural
Managing Director of Rajshahi Krishi Unnayan Bank on 26 organizations of National and International level, viz: Lions
July 2012. He retired on 01 October 2015. Clubs International District 315A Bangladesh, Lions Club
of Dhaka, Bangladesh Cricket Board, Nazrul Academy,
Mr. Husain worked in Agrani Bank for about 9 years
(from September 2003 to July 2012) in the capacity of Shimanta Granthagar, Khelaghar etc.
General Manager and Deputy Managing Director with full Mr. Husain, son of Late Dr. Afsar Ali and Late Rahima Khatun,
satisfaction of the policy level management and operational was born on 01 October 1955 in Tangail, Bangladesh. He
management covering most of the areas of bank.
is Married to Mrs. Zeenat Sultana who is a housewife. They
During his long banking career he proved himself as an have been blesses with two daughters , Mahsina Tabassum
outstanding & honest banker with strong personality & clean and Ishrat Tabassum and a son, Jamael Tanveer.
image in the banking arena.
Annual Report 2021

Molla Abdul Wadud

Director
Mr. Molla Abdul Wadud joined as a Director of Sonali Bank He is also one of the members of the Audit Committee and
Limited on 30July, 2019. He is a formerGeneral Manager and the Risk Management Committee of the Board of Directors
Company Secretary of Bakhrabad Gas Distribution Company of Sonali Bank Limited.
Limited (BGDCL).
Mr. Molla Abdul Wadud completed his graduation in
Mr. Molla Abdul Wadud has highly successful and results- Commerce from the University of Chittagong. Along with
driven exposure in the Gas sector. He is respected for graduation, he also obtained LL.B. degree from the same
his innovative ideas, concepts and various challenging university. He also completed Masters in commerce form
endeavors in the Gas sector of Bangladesh. He has more Dhaka University. He enhanced his professional expertise by
Administration. He has exceptional ability of organizing participating in a number of in-country and foreign training
by ensuing coherent and integrated management courses during his career including Integrity Management in
atmosphere. He has shown his prudence in drafting cases of Organisations, Training of trainers etc. He visited Malaysia,
the company. He was also served as compliance standard. Thailand and Saudi Arabia for the purpose of training and
religious prayers.
Mr. Molla Abdul Wadud started his career in Bakhrabad Gas
Distribution Company Limited in 1985. During 32 years Mr. Wadud, Son of Late Shamsul Haque Molla and Meherun
tenure of professional experience in gas sector, he worked Nessa Khanom, was born in Narsingdi on 02 June, 1958. He
as Secretariat officer, Deputy Manager, Manager, Deputy is married with Mrs. Mahinoor Akter Chowdhury and blessed
General Manager, Company Secretary and General Manager with two daughters.
of Bakhrabad Gas Distribution Company Limited (BGDCL).
40
Professor Dr. Mohammad Kaykobad

Director
Dr. Kaykobad was appointed as a Director of the Board 2008 from which Bangladesh received 22 medals including
of Directors, Sonali Bank Limited on 25 August, 2020. He 4 silver medals. He was the Chief Judge of IIT Kanpur Asia
received M.S.(Hons.) in Engineering from OMEI, now Odessa Region Site of ICPC in 2010, 2011 and 2013. He received
State Maritime University, in 1979. In 1982 he received an the outstanding coach award of ICPC in 2002 at Honolulu,
M.Eng. Degree from AIT, Thailand, and a Ph.D from the Hawaii, only Senior Coach award recipient at the World Finals
Flinders University of South Australia in 1988. Dr. Kaykobad is of ICPC held at St. Petersburg, Russia in 2013, and ICPC
a Fellow of Bangladesh Academy of Sciences(BAS). Foundation Life time coach award in 2019 at Porto, Portugal.
He was also awarded a gold medal by Bangladesh Physics
Dr. Kaykobad was a Professor at CSE Department, BUET Olympiad for his contributions to Olympiad movement. Dr.
since 1997, and served as its Head during 1996-1999. He Kaykobad was recognized as distinguished alumnus in 2008
served as Dean of the Faculty of EEE, BUET for two years. by his alma mater The Flinders University of South Australia.
He is now a distinguished Professor, CSE Department, BRAC He was invited in the prestigious Heidelberg Laureate Forum,
University. Dr. Kaykobad also served as a professor at CSE 2014, and participated there. Dr. Kaykobad is a frequent
Department, Kyung Hee University, South Korea, and at NSU, visitor of schools, colleges and universities of the capital and
Bangladesh. outside.
Dr. Kaykobad has published over 50 research articles in Dr. Kaykobad was a Visiting Professor at the CSE Department,
international journals of repute. He authored, coauthored or the Chinese University of Hong Kong, at Kyung Hee
edited 15 books. Many of these books are for inspiring young University, Korea, ANU and Monash University, Australia
students develop either programming or mathematics skill and Amritapuri University, India. In year 2005 the President
or for developing patriotism. He was a guest co-editor of of the country presented him with a Gold Medal awarded
the proceedings of International Conference on Computer by Bangladesh Computer Society for his contribution to
and Information Technology (ICCIT 2009) published by computer programming culture in the country. In year 2006
Academy Publisher. he won BAS Gold Medal for physical sciences in the senior
He was a co-chair of the workshop WALCOM, 2016 held group which was awarded by the Prime Minister of the
at Kathmandu, proceedings of which was published by country. Dr. Kaykobad is a member of the Executive Council
the famous publisher Springer. He is also a coeditor of of Bangla Academy.
the book on “Technical Challenges and Design Issues Dr. Kaykobad has been playing active role in the
in Bengali Language Processing”.Professor Md. Zafar Iqbal computerization of both public and private enterprises.
and he were entrusted with the responsibility of editing/ He worked as a Director of Dhaka and Chittagong Stock
rewriting 6 text books of SSC level by the Ministry of Exchanges for many years. Currently he is an independent
Education. director of Dhaka Stock Exchange. Dr. Kaykobad is a member
Dr. Kaykobad was the Organizing Chair of the first ever of Academic Council and Syndicate of several universities.
International Computer conference ICCIT held in the soil of Dr. Kaykobad was also member of Investigation Team of
Bangladesh. He was also the Chair of the Steering Committee multimillion dollar cyber heist from Bangladesh Bank, and
for Workshop on Algorithms (WALCOM). He is a frequent was the convener of Administrative team constituted by the
column writer in National Dailies authoring over 400 articles, Government to investigate into Question leaking of public
most of which are related to education of the country. He examinations.
has been one of the pioneers in introducing Mathematics Dr. Kaykobad was born on 1 May, 1954 at village Jabra,
Olympiad, Olympiad in Informatics and Science Olympiad in District Manikganj. He is married to Saleha Sultana Kaykobad
Bangladesh. He has been leading Bangladesh IOI team since and has two sons.
Annual Report 2021

Dr. Md. Matiur Rahman

Director(Joined on 10.02.2022)
Dr. Md. Matiur Rahman, Member, Customs Excise & VAT Dr. Matiur has a distinguished academic career. He graduated
Appellate Tribunal was appointed as a Director of Board of from the University of Dhaka in Finance and completed his
Directors of Sonali Bank Limited on 10 February 2022. masters from the same university. He stood 1st class 1st in
merit position with academic result. He completed his MBA
He has more than 29 (twenty nine) years of first-hand
Degree with major in Finance from the same university.
experience in customs and VAT. During this time, he
He also did his PhD under a distant learning program
developed in-depth knowledge in Customs and VAT laws and
from Preston University, USA, where the thesis topic was
regulations. He has more interest in Capital market, artificial
‘Individual Attitude of Shareholders in Respect of Dhaka
intelligence & modernization and has, thus, developed
Stock Exchange’.
thorough knowledge and skills in that sector.
Dr. Matiur took part in different training sessions, both
Dr. Matiur started his first job with Palli Karma Shahayak
at home and abroad, on VAT accounting, Customs
Foundation (PKSF) in 1990 as Deputy Manager Operation.
Modernization, Customs Automation, Post Clearance Audit,
There he gained vast knowledge and expertise on rural
VAT Audit etc. In PKSF, he had an extensive eight months
development and poverty alleviation. He also worked with
training on Poverty Alleviation.
CCI&E and EPB, where he gained knowledge on IRC, ERC,
GSP regulations etc. In the department of VAT and Excise, He was born in a respectable Muslim family in 1966 in the
he worked at VAT wing, Land Customs, Sea Customs, VAT district of Barishal. He is married to Mrs. Layla Kaniz. They are
Accounting System, Risk Profiling, Audit, Post Clearance blessed with one son and one daughter.
Audit, Investigation and Intelligence Work, Bonded
Warehouse Management etc.
42
Md. Ataur Rahman Prodhan

Mr. Md. Ataur Rahman Prodhan has been CEO & Managing Aftab Uddin Prodhan and also a high school (Amanatullah
Director of Sonali Bank Limited since August 28, 2019. Prior Prodhan secondary school) in the name of his grandfather
to this, he was CEO & Managing Director of Rupali Bank Late Amanatullah Prodhan.
Limited, which was preceded by his brief stint as Managing
He has been elected as a member of the Senate of Dhaka
Director of Probashi Kollyan Bank.
University in 2018, commanding highest ever votes in the
Mr. Prodhan is a man with distinctive vision, dynamism, history of Senate election. He was born in the district of
commitment & innovative ideas. He also has an illustrious Lalmonirhat in 1960. His hobby is travelling, swimming and
banking career. He joined Sonali Bank as Financial Analyst reading books.
in 1984 and rose steadily through the ranks to become the Chairman:
Deputy Managing Director in May, 2015. During his long
career, he held many important executive roles, including Bangladesh Foreign Exchange Dealers Association (BAFEDA)
be the ultimate of corporate banking, given its sheer size and Primary Dealers Bangladesh Limited (PDBL)
range of businesses and services. He had also been CEO of Sonali Intellect Limited.
Sonali Bank (UK) Limited, situated in London, from March,
Vice-Chairman:
2012 through May, 2015. As Deputy Managing Director, he
held the positions of Head of HR and Head of Credit, among Institute of Bankers, Bangladesh (IBB)
others, successfully till he became Managing Director of Industrial and Infrastructure Development Finance Company
Probashi Kollyan Bank. Limited (IIDFC).
A consummate professional, Mr. Prodhan earned laurels and Director:
appreciations from the authority all through his career for
Sonali Exchange Co. Inc., New York
his extra ordinary performances. His hands-on approach has
Padma Bank Limited
resulted in capturing numerous success for expanding the
Investment Corporation of Bangladesh (ICB)
business of the Bank.
Sonali Investment Limited
Mr. Prodhan graduated with honors and completed his Central Depository Bangladesh Limited (CDBL).
M.Com. in Management from Dhaka University in 1980 and Member:
1981 respectively. He took part in many training programs
and seminars at home and abroad. Governing Board, Bangladesh Institute of Bank Management
(BIBM)Finance Committee, Dhaka University.
A profound philanthropist, Mr. Prodhan is engaged in many
humanitarian activities. He is a Rotarian and the past president
of Rotary Lalmonirhat. As Executive member of activities for
that region. He established a primary school (Aftab Uddin
Prodhan govt. primary school) in the name of his father Late
Annual Report 2021

CEO & MANAGING DIRECTOR
MD. ATAUR RAHMAN PRODHAN

DEPUTY MANAGING DIRECTORS
MD. IDRIS MD. MURSHEDUL KABIR MD. MAZIBUR RAHMAN

(Retired on 10.01.2022) (Joined on 14.03.2022)
MD. QUAMRUZZAMAN KHAN MD. MAHBUBUR RAHMAN NIRANJAN CHANDRA DEBNATH SANCHIA BINTE ALI
(Retired on 05.03.2022) (Joined on 23.02.2022) (Joined on 23.02.2022)
44
MANAGEMENT TEAM
GENERAL MANAGERS
Subhash Chandra Das Md. Abu Sayed Md. Billal Hossain Babul Md. Alam Md. Rezaul Karim
(FCMA, FCA)
Tauhidul Islam Md. Abdul Quddus Md. Sirajul Islam Mir Hasan Mohammad Zahid A.K.M. Salim Ahmed
Md. Moniruzzaman Ali Ashraf Abu Taher Md. Nurun Nabi Md. Aminul Islam Md. Zaman Molla
Khokon Chandra Biswas Gopal Chandra Golder Mohammad Rezwan Al Bakhtiar Imran Ahmed (CAO)
(CITO)
Annual Report 2021

DEPUTY
GENERAL MANAGERS
SL SL
NAME NAME
NO NO
1 MR. GIAS UDDIN MAHMUD 37 UMME KULSUM
2 MR. MD. MUSA KHAN 38 MRS. BITHI AKTER
3 MR. MD. RASHIDUL ISLAM 39 MR. MD TANGIMUL ISLAM
4 MR. ASHRAFUL HAIDER CHOWDHURY 40 MR. MD. ISMAIL
5 MR. KAZI MD, MOFIZUL ISLAM 41 MR. RAWSHAN JAHAN
6 MR. MD. MIZANUR RAHMAN MAZUMDER 42 MR. MD. ABDUL MATIN
7 MR. MD. SHAHJAHAN 43 MRS. AKLIMA ISLAM
8 MR. MD. GOLAM SIDDIQUE 44 MR. JAHANGIR ALAM
9 MR. DULON KANTI CHAKRABORTY 45 MR. MD. YAKUB MAZUMDER
10 MR. MD. SAFAYET HOSSAIN PATWARY 46 MR. MOHAMMAD FAZLUL KABIR
11 MR. MD. RAFIQUL ISLAM 47 MR. MD. ABDUL BAREK CHOWDHURY
12 MR. MD. AMINUL ISLAM 48 MR. ABU TAHER MD. ZAKIR HOSSAIN
13 MR. ZAHIDUL ISLAM MOLLA 49 MR. MD. ZAHID IQBAL
14 MRS. MAKSUDA AKHTER ROSY 50 MR. MD. SARWAR ABEDIN
15 MR. MD. MOHIUDDIN BUIYAN 51 MR. MD. ABDUR RAZZAQUE
16 MR. SWAPAN KUMAR DAS 52 MR. MD. SHAHADAT HOSSAIN
17 MRS. SHAHIDA KHANAM 53 MR. MOHAMMAD FOORKAN
18 MR. MD. SHAFIQUL ISLAM 54 MR. MD. ATIQUR RAHMAN
19 MR. MD. MATIAR RAHMAN SARKER 55 MR. MD. REZWANUL ISLAM
20 MR. MD. NAZRUL ISLAM 56 MR. MUHAMMAD MONIRUZZAMAN
21 MR. A.K.M.SHAMSUL ISLAM 57 MR. MD.MAHTAB HOSSAIN
22 MR. MD. ARSHAD HOSSAIN 58 MR. MD. YASIN
23 MR. MUNSHI ZAHIDUR RASHID 59 MR. MD. SHAH ALAM
24 MR. MD. ABDUL MANNAN SHEAK 60 MR. MD. EMRAN ULLAH
25 MR. MD. SHAKHAWAT HOSSAIN 61 MR. F.M. MONIRUZZAMAN
26 MR. MD. SHAFIKUL ALAM 62 MR. GOURNITAI BHADRA
27 MR. MD. SORIAT ULLAH 63 MRS. PRONOTI RANI DAS
28 MRS. NAIMA AKHTER 64 MR. SYED MD. TOWHIDUL HAQUE
29 MRS. SHAHNAZ BEGUM 65 MR. MD. ASHRAFUL ALAM
30 MR. MD. SAIFUL AZIZ 66 MR. MD. NAZRUL ISLAM
31 MRS. PROTIVA RANI SARKER 67 MR. NIZAM UDDIN BHUIYAN
32 MR. MOHAMMAD IQBAL KABIR 68 MR. SAMIR KUMAR BISWAS
33 MR. MD.SHAJAHAN 69 MR. MD. NURUL ISLAM
34 MR. MOHAMMAD MONOARUL ISLAM 70 MR. MD. RAFIQUL ISLAM
35 MR. MOHD RABIUL ISLAM 71 MR. DIBYENDU DAS
36 MR. MD. MONIR HOSSAIN 72 MR. MD. SHAHBIR
46
MANAGEMENT TEAM
SL SL
NAME NAME
NO NO
73 MR. SK. SHAHIDUL ISLAM 114 MR. MD. MIZANUR RAHMAN
74 MR. MD. SHAWKAT ZAMAN 115 MR. SANJIB KUMAR GHOSH
75 MR. MD. FAKRUL ISLAM 116 MR. MD. MOFIZUL ISLAM BHUIYAN
76 MR. MD. JAHANGIR HOSSAIN 117 MR. FARID AHMAD
77 MR. MD. MAHMUDUL HAQUE 118 MR. MD. ABDUL HADI
78 MR. MD. ZAKIR HOSSAIN MAZUMDER 119 MR. MD. NURUN NABI
79 MR. MD. MOKBUL HOSSAIN 120 MR. MOHAMMAD KAMRUL ALAM SIDDIQUI
80 MR. MD. JASHIM UDDIN KHAN 121 MRS. SHAMIM ARA BEGUM
81 MR. KHONDOKAR ABDUS SALAM 122 MR. MD. AMINUR RAHMAN
82 MR. MD. SHAHADUZZAMAN 123 MR. MD. ABDUR RASHID
83 MR. MD. KHAIRUL ALAM 124 MR. MD. ABDUL MALEQUE
84 MR. MD. MASUDUR RAHMAN 125 MR. MOHM. NAZMUL HUQUE
85 MR. MD. SERAJUL ISLAM CHOWDHURY 126 MR. MD. JAHANGIR ALAM SARDAR
86 MR. ALAMGIR KABIR CHOWDHURY 127 MR. MD. RAFIQUL ISLAM
87 MR. MD. MANIRUL HASAN 128 MR. BIVAS CHANDRA HOWLADER
88 MR. MD. HAFIJ UDDIN 129 MR. BIKASH CHANDRA DAS
89 MR. DEVASREE MITRA 130 MR. MD. MONJURUL HAQUE
90 MR. LUTFUR RAHMAN 131 MRS. NURUN NEHER
91 MR. NURUL HUQUE 132 MRS. SHAHNAZ BEGUM
92 MR. MD. GOLAM HASAN 133 MR. MD. SHAHADAT HOSSAIN
93 MR. MOHAMMED HOSSAIN 134 MR. MD, FAZLUL HOQUE
94 MR. MD. ALTAF HOSSAIN 135 MR. RASHED BIN ROUF
95 MR. MD. BABUL HOWLADER 136 MR. MAHBUBUL ALAM
96 MR. MD. AMINUR RAHMAN KHAN 137 MR. MD. SHAHEEN MIAH
97 MR. MD. MAHFUJUR RAHMAN 138 MR. MD. MUSTAFA ALI SIDDIQUEE
98 MR. MD. KHAIRUL ANAM BHUIYAN 139 MR. MD. JAHURUL ISLAM
99 MR. MD. OHIDUZZAMAN 140 MR. HIRALAL DAS
100 MR. MD. SALIM ULLAH 141 MR. MD. FERDOUS SERNIABAT
101 MR. MD. HARUN –OR-RASHID 142 MR. SATYAJIT PAUL
102 MRS. SHAMEEMA NOOR 143 MR. MOHAMMAD BELAL HOSSAIN
103 MRS. NILUFA SULTANA RUMA 144 MR. KAJI MD. SANA ULLAH
104 MR. ABU BAKAR SIDDIQUE 145 MR. ISPAHANI ISLAM
105 MR. MD. MAZIBUR RAHMAN 146 MR. ALAK KUMAR BAL
106 MR. MD. HAFIJUR RAHMAN 147 MR. Z.A.M. IMAMUL HUDA
107 MR. MD. MUSTAFIZUR RAHMAN 148 MR. MD. SAIFUR RAHMAN
108 MR. GOLAM MOHIUDDIN 149 MR. MD. ABDUR RAHIM
109 MR. MD. JAHANGIR ALAM SIDDIQUEE 150 MR. MD. ISMAIL MAZUMDER
110 MR. PRADIP KUMER PAUL 151 MR. MD. DELOWER HOSSAIN (Addnl. Chief Engg.)
111 MR. INDRAJIT DAS 152 DR. MASUDA SALMA (Chief Medical Officer)
112 MRS. NASIMATUL ZANNAT 153 MR. MD. BAREKUZZAMAN (Law Consultant)
113 MR. MD. ABDUL MATIN 154 MR. MD. RAJIB-UL-ISLAM (Chief Security Officer)
Annual Report 2021

MESSAGE FROM
THE CHAIRMAN

Chairman
48
MESSAGE FROM THE CHAIRMAN
wemwgjøvwni ivn&gvwbi ivwng Bismillahir Rahmanir Rahim

m¤§vwbZ †kqvi‡nvìvie„›` Distinguished Shareholders
Avm&mvjvgy AvjvBKzg| Assalamu Alaikum.
†mvbvjx e¨vsK wjwg‡UW Gi 15Zg evwl©K mvaviY mfvq Avcbv‡ì ¯^vMZ It is indeed a great pleasure and privilege for me to welcome
Rvbv‡bvi my‡hvM †c‡q cwiPvjbv cl©‡ì †Pqvig¨vb wn‡m‡e Avwg AZ¨šÍ Avbw›`Z you all to the 15th Annual General Meeting of Sonali Bank
†eva KiwQ| †mvbvjx e¨vsK wjwg‡UW-Gi cwiPvjbv cl©` Ges Avgvi wb‡Ri Limited. On behalf of the Board of Directors and on my
own behalf, I would like to express my cordial greetings
c¶ †_‡K Avcbv‡ì mKj‡K RvbvB mvì m¤¢vlb I ï‡f”Qv| Avcbv‡ì and extend warm felicitations to you all. It is your continued
Ae¨vnZ mg_©b I mn‡hvwMZvi Kvi‡b e¨vsK mKj P¨v‡jÄ †gvKv‡ejv K‡i support and active co-operation that enabled us to attain
mdjZvi aviv eRvq ivL‡Z mÿg n‡q‡Q| †mvbvjx e¨vsK wjwg‡UW Gi 2021 sustained success by overcoming all challenges. I feel proud
mv‡ji Avw_©K weeiYxmn evwl©K cÖwZ‡e`b Avcbv‡ì ch©v‡jvPbv, gZvgZ I to present before you the Annual Report of the Bank for the
year 2021 along with the Audited Financial Statements for
Aby‡gv`‡bi Rb¨ Dc¯’vcb Ki‡Z †c‡i Avwg ‡MŠie Abyfe KiwQ| your review, comments and approval.
GB ïfÿ‡Y Mfxi kÖ×vi mv‡_ ¯§iY KiwQ RvwZi RbK e½eÜz †kL gywReyi At this gracious moment, I remember with great respect the
ingvb, ¯^vaxbZv hy‡× wbnZ 30 j‡ÿi AwaK exi knx`, exiv½bv, exi †mbvbx- Father of the Nation Bangabandhu Sheikh Mujibur Rahman,
more than three million martyrs, heroine, freedom fighters
hv‡ì i³, Z¨vM I mvnwmKZvi wewbg‡q wek¦ ìev‡i ¯^vaxb evsjv‡`‡ki whose blood, supreme sacrifice and valour helped us to
Af~¨`q N‡U‡Q| achieve the glorious independence of Bangladesh.
2020 mv‡j êwk^K gnvgvwi K‡ivbvfvBivm (†KvwfW-19) wek^ A_©bxwZ‡Z eo The coronavirus (COVID-19), emerged as a global pandemic
ai‡bi SuywK m„wó K‡i‡Q| G gnvgvix evsjv‡`‡ki `ªæZ ea©bkxj A_©bxwZ‡ZI in 2020, poses a major risk to the global economy. This
weiƒc cÖfve †d‡j‡Q| e¨vswKs mn cÖwZwU †m±‡i Gi ÿwZKi cÖfve Abyf~Z pandemic slowed down the robust economic growth of
n‡q‡Q| Z‡e K‡ivbvfvBivm (†KvwfW-19) cÖv`yf©v‡ei Kvi‡Y m¤¢ve¨ êwk^K Bangladesh in the last fiscal year. All sectors including banking
sector faced the adverse effect of the pandemic. But through
I †`kxq A_©‰bwZK msKU †_‡K DËi‡Yi j‡ÿ¨ miKv‡ii M„nxZ wewfbœ the actions taken by the government, in 2021, the economy
Kvh©µ‡gi d‡j 2021 mv‡j †`‡ki gvby‡li Av_©-mvgvwRK MwZkxjZv e„w×mn is turning to overcome probable global and domestic crises
A_©bxwZ Ny‡i ùvwo‡q‡Q| arising due the coronavirus (COVID-19) pandemic.
K‡ivbvfvBivm (†KvwfW-19) Gi g‡aÏ mviv †`ke¨vcx Qwo‡q _vKv mywekvj In the midst of coronavirus (COVID-19) pandemic, Sonali
†bUIqv‡K©i AwaKvix †`‡ki me©e„nr ivóª gvwjKvbvaxb evwYwR¨K e¨vsK, Bank Limited, the largest state-owned commercial bank
with a large branch network throughout the country, is
†mvbvjx e¨vsK wjwg‡UW Gi cÖavb j¶¨ MÖvnK I †kqvi †nvìvi‡ì m‡e©v”P providing banking services to the people from all walks of
mš‘wói wbðqZv weav‡bi cvkvcvwk mgv‡Ri me©¯Í‡ii gvby‡li Kv‡Q e¨vswKs life by ensuring best satisfaction of its customers as well
as shareholders. We also remain committed to serve the
†mev †cŠu‡Q †`qv| GKBmv‡_ RvwZ‡K †mev cÖ`v‡bi A½xKvi c~i‡Y miKvi nation by participating into government entrusted activities
KZ©„K b¨¯Í wewfbœ ai‡Yi mvgvwRK myi¶vg~jK Kg©Kv‡Û e¨vsK AskMÖnY K‡i for the better protection of the society. Sonali Bank granted
Avm‡Q| miKvwi wm×všÍ ev¯Íevq‡b †mvbvjx e¨vsK wjwg‡UW RvZxq cZvKvevnx a special loan to Bangladesh Biman, the national flag carrier
and Payra port following the government decision. Sonali
evsjv‡`k wegvb Ges cvqiv e›ì Gi AbyK~‡j we‡kl FY gÄyi K‡i‡Q| GQvov Bank Limited provides 37 services for free and 14 services at
e„nËi Rb¯^v‡_© miKv‡ii AwfcÖvq Abyhvqx MÖvnK‡ì‡K 37wU mvwf©m webvg~‡j¨, nominal charge for the greater interest of the people in line
with government aspiration. Various programs have been
14wU mvwf©m bvggvÎ g~‡j¨ w`‡q _v‡K| e¨vs‡K †ekwKQy †cÖvMÖvg nv‡Z †bqv
undertaken which are socially profitable although some of
n‡q‡Q †h¸‡jv evwYwR¨Kfv‡e AbyK~j bv n‡jI mvgvwRKfv‡e jvfRbK| them may not be viable commercially.
†mvbvjx e¨vsK wjwg‡UW me mgq e¨vswKs Kvh©µg cwiPvjbvq bZzb cÖhyw³ Sonali Bank Limited keeps itself abreast with the real time
MÖn‡Yi j‡¶¨ AvaywbK a¨vb aviYv I me©‡kl Z‡_ï mv‡_ Zvj wgwj‡q Pj‡Z information, updating ideas and approaches in the areas
of innovation and adopting new technology. In the face of
m‡Pó| µgea©gvb cÖwZ‡hvwMZvgyjK evRv‡i Z_¨ cÖhyw³i eënvi I we¯Í…wZ Ges increasing competition, IT efficiency promotes operational
IT cø¨vUdg©‡K kw³kvjxKiY e¨vs‡Ki Kg©m¤úv`b cÖwµqv‡K mnRZi Ki‡e ease and sets a standard for quality, internal productivity
Ges mgv‡Ri wewfbœ †kªwYi MÖvnK‡ì Pvwn`v I cÖZ¨vkv c~iY Ki‡e| DwjøwLZ and improved enhanced customer service. Till date, the
welq¸‡jv we‡ePbv K‡i Ges wbiwew”Qbœ, wbf©i‡hvM¨, `ªæZ I ¯^í e¨‡q RbM‡Yi Bank has also implemented Core Banking Solution (CBS)
in all its 1227 domesticbranches to provide uninterrupted,
†`vi‡Mvovq e¨vswKs Kvh©µg †cŠu‡Q †`qvi j‡¶¨ e¨vsK B‡Zvg‡a¨ Zvi 1227wU reliable, faster and better one stop service at the doorsteps
kvLvi meKwU‡K Core Banking Solution (CBS) G DbœxZ K‡i‡Q| of customer at an affordable cost.
†KvwfW 19 cÖv`yf©v‡ei g‡a¨ †mvbvjx e¨vs‡Ki D‡jøL‡hvM¨ AR©b ÔÔ†mvbvjx During the COVID 19 outbreak in 2020, obviously the
B-†mevÕÕ I ÔÔ†mvbvjx B-Iqv‡jUÕÕ Pvjy Kiv| ÔÔ†mvbvjx B-†mevÕÕ Gi gva¨‡g introduction of ’’Sonali e-Sheba’’ and ’’Sonali e-Wallet’’ is a
shining achievement of Sonali Bank Limited. Clients can
MÖvnKiv Lye mn‡R N‡i e‡mB GKvD›U Lyj‡Z cv‡i| GiB avivevwnKZvq open accounts even from their home through ’’Sonali
cieZ©x‡Z ÔÔ†mvbvjx B-Iqv‡jUÕÕ Pvjy Kiv nq hvi gva¨‡g MÖvnKiv †h‡Kvb mgq e-Sheba’’. Subsequently, the bank introduced ’’Sonali
†h‡Kvb wnmv‡e †jb‡`bmn wewfbœ wej, cixÿvi wd, U¨v· mn mKj †jb‡`b e-Wallet’’. This wallet helps the clients to make transactions
m¤úbœ Ki‡Z cv‡i| to any accounts, pay the bills and taxes etc.
b‡fj K‡ivbv fvBivm Gi cÖv`yf©v‡ei Kvi‡Y evsjv‡`‡k m¤¢ve¨ A_©‰bwZK cÖfve To face the adverse affect in the economy of Bangladesh
†gvKv‡ejvq KzwUi, gvB‡µv I gvSvwi wkí D‡`¨v³v‡ì mÿgZv Aÿzbœ ivLvi due to novel Corona Virus, the Prime Minister of the
government of the Peoples’ Republic of Bangladesh
j‡ÿ¨ MYcÖRvZš¿x evsjv‡`k miKvi Gi gvbbxq cÖavbgš¿x KZ©„K 5 GwcÖj 2020 declared a 200 (Two Hundred) million incentive package
Zvwi‡L 20 (wek) nvRvi †KvwU UvKvi Avw_©K mnvqZv c¨v‡KR †NvlYv Kiv
Annual Report 2021

nq| D³ cÖ‡Yv`bv c¨v‡K‡Ri AvIZvq †mvbvjx e¨vsK wjwg‡UW 1g ch©v‡q for retaining the capability of cottage, micro and medium
wbav©wiZ ev‡RU 412 †KvwU UvKvi wecix‡Z 420 †KvwU UvKv FY cÖ`vb K‡i| enterprizes entrepreneurs. Of that, Sonali Bank Limited
successfully disbursed Tk. 4,200.00 million against 1st phase
1 RyjvB, 2021 n‡Z 30 Ryb, 2022 †gqv‡` 2q ch©v‡q eivÏK…Z 500.00 stipulated Tk. 4,120.00 million. Loan disbursement of 2nd
†KvwU UvKvi wecix‡Z FY weZiY Kvh©µg Ae¨vnZ i‡q‡Q| cvkvcvwk MÖvgxY phase of Tk. Tk. 5,000.00 million is underway that has the
tenure from 1 July 2021 to 30 June 2022. Besides, our main
Rbc‡` Drcv`bgyLx Kg©KvÛ Ges Kg©ms¯’vb m„wó Avgv‡ì cÖavb j¶¨| G thrust, therefore, is rural development through employment
j‡ÿ¨ K„wl/cjøx FY Lv‡Z e¨vsK KZ©„K ch©vß FY weZiY Kiv n‡q‡Q Ges G generation and productive activities in rural Bangladesh.
In Agricultural/Rural credit, sufficient amount has been
Lv‡Z eZ©gv‡b w¯’wZi cwigvY 5,491.46 †KvwU UvKv| GQvov e¨vsK thrust disbursed and total outstanding stood at Tk. 54,914.60
†m±i e‡j we‡ewPZ gvB‡µv †µwWU, ¯§j GÛ wgwWqvg G›UvicÖvBR Ges me©vwaK million. Moreover, Sonali Bank Limited has redesigned the
operational strategy by prioritizing credit allocation to micro,
g~j¨ ms‡hvRbkxj Drcv`bkxj Lv‡Z FY e›Ub c×wZ cyYwe©b¨vm K‡i A_©vqb small and medium size productive enterprises which have
Ki‡Q| D‡jøwLZ LvZmg~‡n e¨vs‡Ki FYw¯’wZi cwigvY h_vµ‡g 1,263.98 been considered as the thrust and most valued sector in the
economy. Till 2021, total outstanding in Micro Credit and
†KvwU Ges 7,862.32 †KvwU UvKv| GB me AMÖvwaKvicÖvß LvZmg~n RvZxq SME sectors stood at Tk. 12,639.83 and 78,623.18 million
Av‡q Ae`vb ivLvi cvkvcvwk `vwi`ªmxgvi bx‡Pi RbM‡Yi Rxebgvb Dbœq‡Y respectively. These priority sectors are playing special role
in contributing to our national income as well as upgrading
we‡kl f~wgKv ivL‡Q| the quality of life of our people living under poverty level.
G eQi †mvbvjx e¨vsK wjwg‡UW 2,090.38 †KvwU UvKv cwiPvjb gybvdv During the year, Sonali Bank Limited earned operating
(hv †`‡ki e¨vswKs †m±‡ii g‡a¨ m‡e©v”P) Ges MZ eQ‡ii 323.43 †KvwU profit amounting to Tk. 20,903.75 million, highest in the
banking sector of Bangladesh and also achieved a net profit
UvKv AwZµg K‡i 345.67 †KvwU UvKv bxU gybvdv AR©b K‡i‡Q| 2021 amounting to Tk. 3,456.67 million crossing Tk. 3,234.35
mv‡j AvgvbZ msMÖn, FY/AwMÖg, †kÖwYK…Z FY Av`vq, cwiPvjb e¨q wbqš¿Y million of previous year. Operational efficiency, optimum
utilization of fund, and high productivity regarding deposit
BZ¨vw`‡Z cwiPvjb `¶Zv e„w×, Znwe‡ji m‡e©vËg eënvi I Drcv`bkxjZvi collection, loans and advances, recovery from classified
D”Pgvb GB gybvdv AR©b‡K m¤¢e K‡i‡Q| ZvQvov ‡gvU Av‡qi g‡a¨ wewfbœ loan, controlling of operating expense contributed to this
surge of profit during 2021. Moreover, share on income from
service oriented AvqI h‡_ó cwigv‡Y e„w× †c‡q‡Q hv Avgv‡ì eëmvwqK various service oriented activities under total income is rising
cÖe„w×i Rb¨ Avkxe©v`¯îƒc| undoubtedly which is an omen to our business growth.
Avw_©K AšÍfz©w³ eZ©gvb miKv‡ii Ab¨Zg Dbœqbg~jK G‡RÛv; `vwi`ª¨ Financial inclusion is high on the development agenda of
the government. Sonali Bank Limited has been working
`~ixKi‡Y Ges †`‡ki mvaviY RbM‡Yi RxebhvÎvi gvb Dbœq‡b miKv‡ii relentlessly to expand financial activities in line with this
M„nxZ c`‡¶cmg~n h_vh_fv‡e ev¯Íevq‡b †mvbvjx e¨vsK wjwg‡UW eive‡ii agenda to support the government’s initiatives designed
g‡ZvB mn‡hvwMZv K‡i hv‡”Q| MÖvg Dbœqb `vwi`ª¨ `~ixKi‡Y we‡kl fywgKv to alleviate poverty and improve the living standard of the
common people. Rural development plays a vital role in
cvjb Ki‡Z cv‡i| G ev¯ÍeZv‡K mvg‡b †i‡L †mvbvjx e¨vsK MÖv‡gi `wi`ª eradicating poverty. The Bank has already opened 10/50/100
gvby‡li Rb¨ 10/50/100 UvKvi wnmve Pvjy K‡i‡Q Ges Avw_©K AšÍfy©w³i Taka accounts for the poor people and total number of such
accounts reached approximately 53.94 lac namely farmer’s
AvIZvq K…lK wnmve, mvgvwRK wbivcËv †eóbx, gyw³‡hv×v, ¶z`ª Rxeb exgv, account, Social Safety Net Program, Freedom fighters,
†cvlvK wkí kªwgK Ges Ab¨vb¨ †kÖbx/‡ckv wfwËK wnmv‡e cÖvq 53.94 j¶ Small Life Insurance program, RMG Sector and other A/Cs
wnmve †Lvjv n‡q‡Q| under financial inclusion program.
Good Corporate Governance system is vital for efficient
†h‡Kvb cÖwZôv‡bi eëmv cwiPvjb, `xN© ¯’vwqZ¡ Ges †UKmB cÖe„w×i Rb¨ Good
and effective business operation, long term stability and
Corporate Governance Acwinvh©| †mvbvjx e¨vs‡Ki Governance sustainable growth for any organization. The Governance
system G eë¯’vcbvi ¯^”QZv I Revew`wnZv wbwðZ Kivi cvkvcvwk cwiPvjbv system of Sonali Bank Limited is characterized by its design
to ensure transparency and accountability at all level of
cl©` I eë¯’vcbvi `vwqZ¡ I KZ©e¨ myPviæiƒ‡c e›Ub Kiv n‡q‡Q| G j‡ÿ¨ management. Three committees- Executive Committee,
wZbwU KwgwU- wbe©vnx KwgwU, AwWU KwgwU Ges Su~wK eë¯’vcbv KwgwU Kvh©Ki Audit Committee and Risk Management Committee
of the Board have been working to assist the Board in
I `ÿZvi mv‡_ `vwqZ¡ cvj‡b cwiPvjbv cl©`‡K mn‡hvwMZv K‡i Avm‡Q| discharging its responsibilities efficiently and effectively. In
gš¿Yvjq Gi mv‡_ ¯^vÿwiZ “Annual Performance Agreement” Gi accordance with “Annual Performance Agreement” signed
with the Ministry, the Bank has recently undertaken a similar
avivevwnKZvq m¤cÖwZ e¨vsK Zvi wbe©vnx‡ì Kvh©µ‡gi Revew`wnZv Avbq‡bi
agreement through which accountability of the executives
j‡¶¨ Abyiƒc Pzw³cÎ cÖYqb K‡i‡Q| bZzb G Z_¨ cwigvc‡Ki gva¨‡g may be measured. Performance of the executives is judged
wbe©vnx‡ì Kvh©µg gyj¨vqb Kiv n‡”Q| by these newly designed information scale.
Recently Sonali Bank Limited has introduced “Whistle
m¤úªwZ †mvbvjx e¨vsK wjwg‡UW evsjv‡`‡ki e¨vswKs †m±‡i me©cÖg ÒûB‡mj Blower Policy” for the first time in the banking history of
†eøvqvi cwjwmÓ cÖeZ©b K‡i| e¨vs‡Ki mKj Kg©KvÛ `yb©xwZgy³ ivLv Ges Bangladesh. Certainly it is very important and bold decision in
ï×vPvi cÖwZôvq G cwjwm AZ¨šÍ ¸iæZ¡c~Y©, mg‡qvc‡hvMx Ges mvnmx GKwU implementing the National Integrity and the banking activities
c`‡ÿc| Avgiv Rvwb, †h †Kvb ai‡Yi Awbqg cÖwZ‡iv‡a m‡e©v”P mZK©Zv, corruptionless. We are aware that strong vigilance is a must
`vwqZ¡kxjZv I Revew`wnZvg~jK eë¯’vcbv Ges m‡e©v”P gvÎvi DrKl©Zv to guard against leakage and to achieve highest excellence
through responsibility and accountability. In order to ensure
AR©‡bi j‡¶¨ Af¨šÍixY wbqš¿Y I cwicvjb eë¯’v kw³kvjx Kivi †Kvb responsible and accountable management system and highest
weKí †bB| `vwqZ¡kxjZv, h_vh_ Revew`wnZv I m‡e©v”P mš‘wó wbwðZ Kivi degree of excellence, steps have been taken to restructure and
j‡¶¨ Internal Control and Compliance Mechanism †K cybM©Vb modernize the Internal Control and Compliance Mechanism
I AvaywbKvq‡bi c`‡¶c †bqv n‡q‡Q hv e¨vsK, Zvi Kgx©, AvgvbZKvix I to safeguard the safety and soundness of the bank, its
employees, depositors and shareholders.
†kqvi‡nvìvi‡ì ¯^”QZv I wbivcËv wbwðZ Ki‡e|
50
MESSAGE FROM THE CHAIRMAN
†UKmB Dbœq‡bi Rb¨ `¶ I †hvM¨ gvbem¤ú` AZ¨šÍ ¸iæZ¡c~Y©| KviY Qualified and competent human resource is crucial for
sustainable growth. Success of the Bank may be achieved
e¨vs‡Ki mdjZv Zvi Kg©xevwnbxi `¶Zv, Ávb I Drcv`bkxjZvi Dci wbf©i by improving skills, knowledge and productivity of the
K‡i| gvbe m¤ú` Dbœq‡b Z_v Kgx©‡ì m¶gZv e„w×‡Z e¨vs‡Ki wewb‡qvM employees. Keeping this in view, the Bank invests remarkably
in human resources development for capacity building. The
D‡jøL‡hvM¨ cwigv‡Y e„w× Kiv n‡q‡Q| g‡bvej, m„RbkxjZv I `jMZ cÖ‡Póvi goal is to empower staff and create a culture that encourages
gva¨‡g wbqZ cwieZ©bkxj MÖvn‡Ki cÖZ¨vkv c~i‡Y e¨vsK Kg©KZ©v I Kg©Pvix‡ì and rewards commitment, creativity and team work in order
to respond rapidly to the ever changing customer needs
m¶gZv evov‡bvB Gi cÖavb j¶¨| ZvQvov †mvbvjx e¨vsK Zvi Kgx© evwnbxi and market. SBL is offering its employees’ safe, healthy and
congenial working environment. Moreover, it endeavors
cvi¯úwiK †hvMv‡hv‡Mi Rb¨ wbivc` I my¯’ Kg©cwi‡ek wbwðZ K‡i‡Q| its best to ensure that the employees engagement is
maximized.
eëmvq `xN©‡gqv`x I ‡UKmB cÖe„w× AR©‡bi Rb¨ mgv‡Ri cÖwZ e„nËi Sonali Bank Limited always recognizes its wider obligation
`vqe×Zv we‡ePbvq e¨vsK wbR¯^ CSR Kg©m~wP MÖnY K‡i Avm‡Q| ‡h‡nZz to the society and therefore embraces the concept of
Corporate Social Responsibility (CSR) which is believed to
†UKmB I AšÍf~©w³g~jK cÖe„w×i Rb¨ ivóª, evRvi I mgv‡Ri g‡a¨ fvimvg¨ be fundamental to attaining the long term sustainability and
business growth. Since a perfect balance among the state,
ivLv cÖ‡qvRb †m‡nZz e¨vs‡Ki vision and mission Gi mv‡_ m½wZ †i‡L market and society is required for suitable and inclusive
cÖwZôvbwU ‡`‡ki A_©bxwZ, cwi‡ek I mvgvwRK ev¯ÍeZvi wbwi‡L Zvi eëmv growth, it operates banking activities in economically,
environmentally and socially sustainable manner in line with
cwiPvjbv K‡i Avm‡Q| cÖwZôvi ci †_‡K ‰`bw›`b eëmv cwiPvjbvi gva¨‡g its vision and mission. Since inception, to add value, the Bank
has been caring for its stakeholders and the community at
e¨vsK Zvi AskxR‡bi ¯^v_© msi¶Y K‡i Avm‡Q| large through our day to day business operation.
Rjevqy cwieZ©b †_‡K D™¢~Z ûgwKi d‡j AskxR‡bi ¯^v_© myi¶vq e¨vsK The Bank is responding strategically to create sustainable
m‡PZbfv‡e evsjv‡`k e¨vs‡Ki wb‡`©kbvi Av‡jv‡K MÖxb e¨vswKs Kvh©µg value for the stakeholders since grave menace posed by
cwiPvjbv Ki‡Q| MÖxb e¨vswKs Kg©KvÛ myôyfv‡e cwiPvjbvi wbwgË †ek wKQy climate change. Various steps have been taken to ensure
green banking. These include green financing, creating
c`‡¶c MÖnY Kiv n‡q‡Q| hvi g‡a¨ i‡q‡Q meyR A_©vqb, Kgx©evwnbxi g‡a¨ awareness among employees for efficient use of water,
cvwb, we`y¨r I KvMR eënv‡ii wel‡q m‡PZbZv ˆZix Ges B‡Kv-wm‡÷g electricity and paper, giving preference to preservation of
msi¶‡Y mn‡hvMx evwbwR¨K LvZmg~n‡K A_©vq‡bi †¶‡Î AMÖvwaKvi †`qv| eco-system while financing commercial projects and re-use
m¤cÖwZ MÖxb e¨vswKs Gi m¤¢ve¨Zv I Gi Dc‡hvwMZv cÖvwßi Rb¨ evsjv‡`k of equipments. In order to harness the potentiality of the
green banking, a separate unit named “Sustainable Finance
e¨vs‡Ki cwjwm †gvZv‡eK e¨vs‡Ki wi¯‹ g¨v‡bR‡g›U wWwfk‡bi Aax‡b Unit” under the Risk Management Division has been formed
“Sustainable Finance Unit” MVb Kiv n‡q‡Q| in line with the policy directives of Bangladesh Bank.
Avwg Avkv Kwi, fwel¨‡Z †`ke¨vcx we¯Í…Z †bUIqvK©, `ÿ Kg©xevwnbx I Looking toward the future & playing on our own strength,
Avgv‡ì eëmvwqK mybv‡gi gva¨‡g Avgiv Avgv‡ì mdjZvi †¶Î¸‡jv we have all the key success factors, necessary to scale up,
aiming at attaining brand of quality among our wider
Av‡iv cÖmvwiZ Ki‡Z mÿg n‡ev| e¨vswKs †m±‡i Avgv‡ì eëmvwqK mybvg, network to negotiate the course of change. We can do
†`ke¨vcx kvLv Ges D™¢vebx ‡cÖvWv±mgy‡ni Dcw¯’wZi Kvi‡Y Avgv‡ì c‡¶ it well by our well recognized market presence with a
strong product portfolio, well established brand image and
mdj nIqv Am¤¢e wKQy bq| countrywide network.
e¨vsK cwiPvjbvi †¶‡Î Avgvi mnKgx© cwiPvjK‡ì mvwe©K mn‡hvwMZv I Let me take the opportunity to thank my fellow Directors,
mg_©b `v‡bi Rb¨ Avwg Zuv‡ì‡K AvšÍwiKfv‡e abëv` RvbvB| GQvovI who have given me their generous co-operation and
support with great personal commitments. My words of
e¨vs‡Ki wmBI GÛ g¨v‡bwRs wW‡i±i I wb‡ew`ZcÖvY Kg©xevwnbxi A½xKvi, thanks go to the CEO and Managing Director, all of our
AvbyMZ¨ I AvšÍwiK Ae¨vnZ mn‡hvwMZvi Rb¨ RvbvB Awfev`b| officials, staff members for their commitment, loyalty and
sincerity along with continued support and co-operation.
Avwg evsjv‡`k miKv‡ii we‡klZt A_© gš¿Yvj‡qi Avw_©K cÖwZôvb wefvM, I would like to express my sincere gratitude to the
evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ Kwgkb, Awdm Ae Government of Bangladesh specially the Financial
`¨v ‡iwR÷ªvi Ae R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m Ges ÷K G·‡PÄ Gi Institutions Division of Ministry of Finance, Bangladesh Bank,
Bangladesh Securities and Exchange Commission, Office
cÖwZ Zv‡ì Ae¨vnZ mg_©b I civgk© `v‡bi Rb¨ AvšÍwiK K…ZÁZv Ávcb of the Registrar of Joint Stock Companies and Firms, the
KiwQ| DrK‡l©i wkL‡i †cŠuQvi j‡¶¨ Avgv‡ì cÖ‡Póvi cÖwZ hviv mn‡hvwMZv Stock Exchange for their continued support and guidance.
Ae¨vnZ †i‡L‡Qb, cwiPvjbv cl©‡ì c¶ †_‡K †m mKj MÖvnK I c„ô‡cvlK I would also like to express my thanks to all of our valued
Ges ïfvbya¨vqx‡ì cÖwZ Avwg AvšÍwiK K…ZÁZv Rvbvw”Q| ZvivB Avgv‡ì clients, patrons, well-wishers and shareholders on behalf of
Aby‡cÖiYv I kw³i Drm| the Board. They are our source of inspiration and strength.
gnvb Avjøvn& Avgv‡ì mnvq †nvb Ges Zuvi ingZ Avgv‡ì mK‡ji Dci ewl©Z May almighty Allah help us all and shower eternal blessings
†nvK| upon all of us.
(wRqvDj nvmvb wmwÏKx)

†Pqvig¨vb (Ziaul Hasan Siddiqui)
cwiPvjbv cl©` Chairman
Board of Directors
†mvbvjx e¨vsK wjwg‡UW
Sonali Bank Limited
Annual Report 2021

FROM THE DESK

OF CEO AND
MANAGING
DIRECTOR
Md. Ataur Rahman Prodhan

52
CEO AND MANAGING DIRECTOR'S MESSAGE

m¤§vwbZ †kqvi‡nvìvie„›` Distinguished Shareholders
Avm&mvjvgy AvjvBKzg| Assalamu Alaikum.
Avwg AwZkq Avbw›`Z I †MŠievwš^Z †eva KiwQ †h, †`‡ki me©e„nr evwYwR¨K It is a great privilege and honor for me to have the opportunity
to present and record my observation on the performance
e¨vsK †mvbvjx e¨vsK wjwg‡UW Gi 2021 mv‡ji eëmvwqK AR©‡bi Dci Avgvi of Sonali Bank Limited, the largest commercial bank of
ch©‡e¶Y Avcbv‡ì Kv‡Q Zz‡j aivi my‡hvM †c‡qwQ| GRb¨ Avwg Avgv‡ì Bangladesh, for the year 2021. I would like to express my
MÖvnK, mn‡hvMx I ïfvbya¨vqx‡ì Zuv‡ì Ae¨vnZ mg_©b, mn‡hvwMZv Ges heartfelt thanks and gratitude to our valued customers,
partners and well wishers for their active and continuing
Avgv‡ì cv‡k _vKvi Rb¨ AvšÍwiK abëv` Rvbv‡Z PvB| support, co-operation and strong association with us.
2021 mv‡j e¨vs‡Ki AR©b Zz‡j aivi Av‡M Avwg eZ©gvb ‰ewk^K I evsjv‡`k Before reflecting on the Bank’s performance in 2021,
it would be relevant to present a snapshot of global and
A_©bxwZi w`‡K Av‡jvKcvZ Ki‡Z PvB|
Bangladesh economy.
2020 Gi ïiæ‡Z Avwef©~Z êwk¦K gnvgvwi †KvwfW 19 wek¦ A_©bxwZ‡Z eo The coronavirus (COVID-19), which has emerged as a global
ai‡Yi SzuwK m„wó K‡i‡Q| Gi cÖfv‡e wek¦ A_©bxwZ‡Z g›`v †`Lv w`‡q‡Q Ges pandemic, poses a major risk to the global economy. As a
GB g›`v 2008-2009 mv‡ji Avw_©K g›`v‡KI Qvwo‡q †h‡Z cv‡i e‡j aviYv result of the pandemic, the global economy is anticipated to
Kiv n‡”Q| Z‡e AvBGgGd Gi Iqvì© B‡Kv‡bvwgK AvDUjyK GwcÖj 2021 contract in a much worse way than during the 2008-2009
financial crises. In the World Economic Outlook (WEO)
†gvZv‡eK, ivóª I AvšÍR©vwZK ms¯’vmg~n KZ©„K Avw_©K cÖ‡Yv`bvmn wewfbœ bxwZ
April 2021, International Monetary Fund (IMF) projected that
mnvqZv cÖ`v‡bi d‡j wek¦ A_©bxwZi cÖe„w× 2021 mv‡j 5.6 kZvs‡k DbœxZ the economic growth is projected at 5.6 percent in 2021,
n‡Z cv‡i †hwU 2020 mv‡j wQj 3.5%| hwÌ GB cÖe„w× mymgwš^Z wQj while growth was contracted to 3.5 percent in 2020. This
bv| gyjZ DbœZ A_©bxwZi †`kmg~‡n ch©vß Avw_©K mnvqZv I ch©vß wUKvi recovery is uneven and largely reflects sharp rebounds in
mieiv‡ni Kvi‡Y Zv‡ì A_©bxwZ e¨vcKfv‡e Ny‡i ùvov‡bvB wQj Gi g~j some major economies owing to substantial fiscal support
KviY| êwk¦K A_©bxwZ 2022 I 2023 mv‡j h_vµ‡g 4.3% I 3.1% ch©šÍ and highly vaccine access. Global growth is set to reach 4.3
cÖe„w× AR©b Ki‡Z cv‡i e‡j aviYv Kiv n‡”Q| percent and 3.1 percent respectively in 2022 and 2023.
evsjv‡`‡ki A_©bxwZ MZ GK `k‡KiI †ekx mgq a‡i w¯’wZkxj cÖe„w×i nvi The Bangladesh economy has been able to maintain
sustained economic growth over the last decade though
a‡i ivL‡jI êwk¦K gnvgvwii Kvi‡Y evsjv‡`k cwimsL¨vb ey¨‡ivi me©‡kl according to the final estimate of BBS, the GDP growth
wnmve Abyhvqx 2020-21 A_©eQ‡i wRwWwc cÖe„w× ùvwo‡q‡Q 5.47 kZvsk hv stood at 5.47 percent in 2020-21 which was 3.51 percent in
2019-20 A_©eQ‡i wQj 3.51 kZvsk| gv_vwcQz wRwWwc 2019-20 A_©eQ‡ii 2020. Per capita GDP and per capita national income stood
respectively at US$ 2,097 and US$ 2,227 in FY2020-21, up
1,930 gvtWjvi n‡Z 167 gvtWjvi e„w× †c‡q 2020-21 A_©eQ‡i 2,097 by US$ 167 and US$ 203 from the previous fiscal year. In
gvtWjv‡i DbœxZ n‡q‡Q Ges gv_vwcQz RvZxq Avq 2019-20 Gi 2,024 FY2020-21, the inflation rate stood at 5.56 percent. Recently
Bangladesh has been successfully graduated to the status
gvtWjv‡i n‡Z 203 gvtWjvi e„w× †c‡q 2020-21 G 2,227 gvtWjv‡i DbœxZ
of a lower middle income country (LMIC) from low income
n‡q‡Q| G mg‡q g~j¨ùxwZi nvi ùvwo‡q‡Q 5.56 kZvsk| m¤úªwZ evsjv‡`k country (LIC). Remittance reserve stood at US$ 47 billion due
wb¤œ Av‡qi †`k n‡Z wb¤œ ga¨g Av‡qi †`‡k DbœxZ n‡q‡Q| cÖevmx evsjv‡`kx to introduction of 2 percent incentives on remittances sent
by NRBS. Alongside financial incentives, various activities
KZ©„K A_© †cÖi‡Yi †ÿ‡Î 2% bM` cÖ‡Yv`bvi eë¯’v Pvjy Kivq ê‡`wkK gy`ªvi including policy support such as reduction of import duty
wiRvf© 47 wewjqb gvwK©b Wjv‡i DcbxZ n‡q‡Q| Avw_©K cÖ‡Yv`bvi cvkvcvwk on COVID-19 related products, policy support to increase
liquidity in the banking sector has been provided. As a result
†KvwfW 19 mswkøó c‡Yï Avg`vbx ïé n«vm, e¨vswKs Lv‡Z Zvij¨ e„w×i j‡ÿ¨
of these actions taken by the government, the economy
bxwZ mnvqZvmn wewfbœ Kvh©µg MÖnY Kivq A_©bxwZ Ny‡i `vwo‡q‡Q| has turned around sharply.
†mvbvjx e¨vsK †`‡k Ges we‡`‡k Zvi eëmvwqK Kg©Kv‡Ûi gva¨‡g †`‡ki Sonali Bank conducts its business to provide services to
the customers and society at large and thus maximizes
mKj ¯Í‡ii RbMY‡K †mev cÖ`vb K‡i P‡j‡Q Ges b¨vqm½Zfv‡e ¯^”QZv I values for its stakeholders in a fair, transparent and ethical
ˆbwZKZvi mv‡_ †÷K‡nvìvi‡ì Rb¨ me©vwaK Dc‡hvwMZv wbwðZ K‡i _v‡K| way. Profit maximization is not the sole objective of the
Bank. Along with profit earning we are committed to make
ïay gybvdv AR©bB e¨vs‡Ki GKgvÎ j¶¨ bq; gybvdv AR©‡bi mv‡_ †UKmB
positive contribution to the economy and the society as a
Dbœq‡bi gva¨‡g †`‡ki Av_©-mvgvwRK Dbœqb wbwðZ K‡i mgv‡R BwZevPK whole in a sustainable manner. That is why, besides earning
Ae`vb ivLvI †mvbvjx e¨vs‡Ki GKwU j¶¨| G Kvi‡YB †mvbvjx e¨vsK profit, Sonali Bank is proud to bear the responsibility of
implementing various welfare programs and initiatives of
memgqB gybvdv Avni‡Yi cvkvcvwk mvwe©K †mevi gvb e„w×mn miKvi KZ©„K the government, thereby becoming the inseparable partner
Awc©Z Ges miKv‡ii AvbyK‚‡j¨ m~wPZ wewea Av_©-mvgvwRK Kg©Kv‡Û f‚wgKv of the noble work of the government intended to uplift the
ivL‡Z A½xKvive×| G me Kg©KvÛ †_‡K †h `„k¨gvb Avq nq Zv evwYwR¨K socio-economic condition of the poor. The visible return
from these services may not be encouraging from business
`„wóf½x‡Z Drmvne¨ÄK bv n‡jI mvgvwRK jvf-¶wZi we‡ePbvq D”PZi Avq standpoint, but the return is high from the social-cost
m„wóKvix e‡j we‡ePbv Kiv nq| benefit perspective.
Annual Report 2021

†KvwfW 19 gnvgvwiRwbZ D™¢~Z cwiw¯’wZ‡Z e¨vsK Zvi Kg©KZ©v-Kg©Pvix‡ì Sonali Bank Limited gives utmost priority to keep employees
g‡bvej a‡i †i‡L eëmv cwiPvjbvi w`‡K we‡kl ¸iæZ¡ cÖ`vb K‡i| Gj‡ÿ¨ psychological strength in achieveing its business goal in
COVID 19 pandemic. The Bank provided adequate PPEs,
e¨vsK Zvi Kg©KZ©v-Kg©Pvix‡ì g‡a¨ ch©vß wcwcB, gv¯‹, n¨vÛ m¨vwbUvBRvi
masks, hand sanitizer for its all employees and ordered
mieivn K‡i Ges h_vh_ kvwiixK `yiZ¡ eRvq †i‡L Kg©m¤úv`‡b kvLv¸‡jv‡K all controlling offices and branches to maintain physical
wb‡`©k cÖ`vb K‡i| MÖvnK‡ì `ªæZ I gvbm¤§Z †mev cÖ`v‡bi j‡¶¨ †mvbvjx distance while performing their duties. In order to provide
e¨vsK Gi mKj Kg©xi Rb¨ wbivc`, my¯’ I AvšÍwiK Kg©cwi‡e‡ki eë¯’v better and faster services to the customers, SBL is offering
each employee safe, healthy and congenial working
K‡i‡Q| mKj kvLvq bvix Kg©KZ©v-Kg©Pvix I MÖvnK‡ì Rb¨ Avjv`v I cwi”Qbœ environment. In all branches, a separate and Clean
†mwb‡Ukvb Ges mKj Kvh©vjq I kvLvi Kg©KZ©v-Kg©Pvix‡ì Rb¨ Rxevbygy³ sanitation system for its female employees and clients
¯^v¯’¨m¤§Z Lvevi cvwb mieiv‡ni eë¯’v Kiv n‡q‡Q| Z`ycwi e¨vs‡Ki me©vZ¥K along with supply of pure hygienic drinking water during
office hours for all the employees has been arranged.
cÖ‡Póv _v‡K GUv wbwðZ Kiv †hb Kg©xevwnbxi mv‡_ eëmv‡qi m¤ú„³Zv Moreover, it endeavors its best to ensure that the employees
me©vwaK nq| engagement with the business is maximized.
†mvbvjx e¨vsK wjwg‡UW GeQi eëmv‡q D‡jøL‡hvM¨ cÖmvi NUv‡Z m¶g n‡q‡Q| Sonali Bank Limited achieved substantial growth during the
year under review. The operating profit of the Bank stood
2021 mv‡j e¨vs‡Ki cwiPvjb gybvdv n‡q‡Q 2,090.38 †KvwU UvKv| K÷ Ae at Tk. 20,903.75 million in 2021. The cost of Fund stood at
dvÛ 4.98% Gi m‡šÍvlRbK ch©v‡q i‡q‡Q| cwiPvjb `¶Zv e„w×, Kvw•LZ a reasonable rate of 4.98% in 2021. Operational efficiency,
lower cost of fund resulting from improved deposit mix,
AvgvbZ wgkªY, cwiPvjb Avq Ges bb-dv‡ÛW Avq e„w×i Kvi‡Y GB gybvdv minimization of operating cost and increase in non-funded
AR©b m¤¢e n‡q‡Q| ZvQvov †gvU Av‡qi g‡a¨ wewfbœ service oriented income have contributed to the higher profit. Besides, a
substantial amount of income is generated from various
AvqI G cÖe„w×‡Z fywgKv †i‡L‡Q| services introduced.
†KvwfW 19 gnvgvwi cieZ©x 2021 mv‡j A_©bxwZi cybiƒ×v‡ii g‡a¨ AvgvbZ Amid recovery of the economy in 2021 after breakout of
COVID 19, the Bank’s deposit grew by more than 7.31% amidst
e„w×i nvi kZKiv 7.31 fvM| D‡jøwLZ mg‡q e¨vs‡Ki Avgvb‡Zi cwigvY fierce competition banking sector during 2021. Deposits
1.35 wUªwjqb UvKv| D‡jøL¨, 2016 mv‡j e¨vs‡Ki Avgvb‡Zi cwigvY 1.00 of the bank stood at Tk. 1.35 trillion. In 2016, Sonali Bank
made a history by reaching a milestone of accumulating
wUªwjqb UvKv AwZµg K‡i‡Q-GwU evsjv‡`‡ki e¨vswKs BwZnv‡m GKwU deposits over one trillion taka, an accomplishment that
gvBjdjK| G hver e¨vsK Avgvb‡Zi IB Ae¯’vb a‡i †i‡L‡Q Ges Avgvb‡Zi the banking sector never witnessed before. Since then, the
Bank has held the position of deposit tightly with gradual
cwigvY DË‡ivËi e„w× cv‡”Q| Avgv‡ì Dci m¤§vwbZ MÖvnK‡ì AwePj Av¯’vi increase. The success of deposit mobilization was due to
d‡jB AvgvbZ msMÖ‡ni G mvdj¨| MÖvnK‡ì †`vi‡Mvovq mvkÖqx g~‡j¨ DbœZ our customers’ unflinching trust in us. We are introducing
latest technology, multiple delivery channels and enhancing
†mev `ªæZ †cuŠ‡Q †èvi j‡¶¨ me©vaywbK cÖhyw³ cÖeZ©b, eûwea †Wwjfvix P¨v‡bj our capacity to take our services to the customers’ reach at
Pvjy I m¶gZv e„w×i cÖ‡Póv Ae¨vnZ i‡q‡Q| m¤§vwbZ MÖvnK‡ì µgea©gvb an affordable cost. We are emphasizing on the introduction
of tailor made and innovative wholesale and retail products
Pvwn`v c~i‡Yi j‡¶¨ Zv‡ì iæwP I cÖZ¨vkv Dc‡hvMx cvBKvix I LyPiv cÖWv±
to satisfy the growing and divergent needs of the valued
D™¢ve‡bi KvR Ae¨vnZ i‡q‡Q| customers.
FY I AwMÖ‡gi cwigvY 2020 mv‡ji 58,623.27 †KvwU UvKv n‡Z 17.80% In loans and advances, the bank registered 17.80% positive
growth in 2021, raising the total outstanding to Tk.
e„w× †c‡q 2021 mv‡j 69,059.69 †KvwU UvKvq DbœxZ n‡q‡Q| G‡¶‡Î e¨vsK 690,596.85 million from Tk. 586,232.72 million of the last
year. The bank continued to grow and diversify its portfolios
†Kvb wbw`©ó MÖvnK Ges cÖwZôvb †Kw›`ªK bv nIqvi j‡¶¨ eûgyLx MÖvnK wfwË M‡o
in 2021 to have a diversified customer base. The whole
†Zvjvi w`‡K g‡bv‡hvM w`‡q‡Q| G j‡¶¨ Avw_©K I mvgvwRKfv‡e jvfRbK portfolios were planned to avoid loan concentrations and
other principles of sound lending were followed to keep
†¶Î¸‡jv‡K cÖvavb¨ †`qv n‡”Q| we‡klZt A_©bxwZ‡Z thrust sector e‡j the credit risk in the minimum. The plans for financing
we‡ewPZ Drcv`bkxj gvB‡µv †µwWU, ¯§j GÛ wgwWqvg G›UvicÖvBR Lv‡Z in thrust sectors like micro credit and small and medium
industries, that are considered to be the growth engine of
A_©vq‡b †mvbvjx e¨vsK cÖvavb¨ w`‡”Q| G‡Z F‡Yi SuywK Kwg‡q Avq e„w×i the economy, were executed. It produced more income
gva¨‡g mvgvwRK Dbœq‡bi mv‡_ Avkvbyiƒc Avw_©K cÖvwßiI m¤¢vebv _v‡K| by reducing the portfolio risk. As a result, maximum social
benefit is reaped along through expected financial return.
2021 mv‡j ‡kÖYxK…Z FY †_‡K Avgiv me©‡gvU 1,259.00 †KvwU UvKv Av`vq In 2021, we recovered Tk. 12,590.00 million from classified
Ki‡Z mÿg n‡qwQ| d‡j †kªYxK…Z F‡Yi nvi 2020 mv‡ji 18.37% †_‡K loan. Consequently the rate of classified loan dropped down
to 17.32% in 2021 which was 18.37% in 2020. We have to keep
wKQzUv n«vm †c‡q 2021 mv‡j 17.32% n‡q‡Q| Avgv‡ì‡K GB nvi 10% the rate of Non Performing Loans (NPL) to a satisfactory
G bvwg‡q Avb‡Z n‡e| wbtm‡›`‡n G cwiw¯’wZ Avgv‡ì Rb¨ bZzb P¨v‡jÄ| level of 10%. This has posed a significant challenge to us
Avgiv GI Rvwb cÖwZwU P¨v‡jÄ AwgZ m¤¢vebvi my‡hvM wb‡q Av‡m| P¨v‡jÄ‡K indeed and to overcome the problem appropriate strategies
have already been worked out and necessary instructions
m¤ú‡` iƒcvšÍwiZ Kivi j‡¶¨ h_vh_ †KŠkj B‡Zvg‡a¨ MÖnY Kiv n‡q‡Q Ges and guidance have been provided to all levels of managers.
cÖ‡qvRbxq w`K wb‡`©kbv Avgv‡ì `¶ Kg©xevwnbxi wbKU †cuŠ‡Q †`qv n‡q‡Q| All our branches have been instructed to extend all out
54
cvidiwgs m¤ú` m„Rb I e„w×i j‡¶¨ e¨vs‡Ki mKj kvLv‡K me©vZ¥K cÖ‡Póv efforts towards creating and enhancing performing assets.
†Rvi`vi Kivi wb‡`©k †`qv n‡q‡Q Ges djvdj gwbUwis Gi Rb¨ my`„p gwbUwis A robust monitoring mechanism has also been put in place
eë¯’v B‡Zvg‡a¨ cÖeZ©b Kiv n‡q‡Q| to monitor the results.
e¨vsK ¯^”Q wb‡qvM cÖwµqv AbymiY Ges †gav wfwËK wj½ mgZvi Dci †Rvi Sonali Bank follows transparent recruitment process and
stresses on gender equality based on merit. High quality,
w`‡q _v‡K| †UKmB Dbœq‡bi Rb¨ `¶ I †hvM¨ gvbem¤ú` AZ¨šÍ ¸iæZ¡c~Y©, intelligent and competent human resources are crucial for
continued growth and success of a bank. Success of the
KviY e¨vs‡Ki mdjZv Zvi Kg©xevwnbxi `¶Zv, Ávb I Drcv`bkxjZvi Dci
bank could be achieved by improving skills, knowledge
wbf©i K‡i| G we‡ePbvq cÖwk¶Y Kg©m~wP I Kg©kvjvi Av‡qvRb Kiv nq hv‡Z and productivity of the employees. Keeping this in view we
emphasize on the human resource development through
Zviv RvZxq I AvšÍR©vwZK e¨vswKs †¶‡Î me©‡kl D™¢veb I weKv‡ki mv‡_ continuous training, seminars and symposiums to create a
cwiwPZ nevi cvkvcvwk Ávb I `¶Zvq mg„× n‡q DV‡Z cv‡i| Kg©xevwnbx talent pool especially in the managerial cadre. The Bank has
been trying to ensure that employees involve themselves
hv‡Z ch©vß AwfÁZvi gva¨‡g †kqvi‡nvìvi‡ì Dc‡hvwMZv MÖvnK‡ì mš‘wó in the running of business with adequate professional
AR©‡b fywgKv ivL‡Z cv‡i e¨vsK †m †Póv Pvwj‡q hv‡”Q| experience which in turn benefit shareholders and add
value to colleagues and help create customer satisfaction.
†h‡Kvb cÖwZôv‡bi eëmv cwiPvjb, `xN© ¯’vwqZ¡ Ges †UKmB cÖe„w×i Rb¨ Good corporate governance system is vital for efficient
and effective business operation, long term stability and
cÖvwZôvwbK mykvmb Acwinvh©| †mvbvjx e¨vs‡Ki Governance system G sustainable growth for any organization. The governance
system of Sonali Bank Limited is characterized by its design
eë¯’vcbvi ¯^”QZv I Revew`wnZv wbwðZ Kivi cvkvcvwk cwiPvjbv cl©` I to ensure transparency and accountability at all levels of
eë¯’vcbvi `vwqZ¡ I KZ©e¨ myPviæiƒ‡c e›Ub Kiv n‡q‡Q| e¨vs‡Ki h_vh_ management. It also ensures that duties and responsibilities
are appropriately segregated between the Board and
functioning Gi Rb¨ GKwU myweb¨¯Í I Kvh©Ki cwiPvjb c×wZ (good Management so that sufficient check and balance are
provided to enable professionals to run the business
corporate governance) Acwinvh©| evsjv‡`k e¨vs‡Ki bxwZgvjvi
effectively and also to protect interests of shareholders and
Av‡jv‡K myweb¨¯Í cwiPvjb cÖwµqv ev c×wZ wbg©v‡Yi Rb¨ Avgiv AvšÍwiKfv‡e depositors alike. Effective corporate governance is critical
to the proper functioning of the bank. We are operating
†Póv K‡i hvw”Q| e¨vs‡Ki AUzU ¯^v¯’¨ Ges MÖvnK I ‡kqvi‡nvìvi‡ì Av¯’v to achieve robust and transparent risk management and
decision-making in line with Bangladesh Bank guidelines
e„w×i wbwgË Avgiv GKwU cÖej I m¦”Q SzuwK eë¯’vcbv I wm×všÍ MÖnY cÖwµqv and, in doing so, promote customer confidence and uphold
cÖwZwôZ Ki‡Z mÿg n‡qwQ| mvgwMÖK K‡c©v‡iU mykvmb KvVv‡gvi GKwU Ask the safety and soundness of our bank. Our policy stresses
the importance of risk governance as part of our overall
wnmv‡e SzuwK wbqš¿Y eë¯’v‡K Av‡iv DbœZ Kivi Rb¨ my‡hvM¨ cwiPvjbv cl©‡ì corporate governance framework and promotes the values
of internal control functions and compliance. Our three
wbe©vnx, SzuwK I AwWU KwgwU mvejxjfv‡e KvR Ki‡Q| board committees - Executive Committee, Risk Committee
and Audit Committee - see that internal control functions
are effective.
Rjevqy cwieZ©b †_‡K DrmvwiZ weiƒc cÖwZwµqvi e¨vcv‡i ‡mvbvjx e¨vsK me©`v SBL is aware of the adverse effect of climate change and
various steps have been taken to ensure green banking.
mRvM Ges G †cÖw¶‡Z MÖxb e¨vswKs Kvh©vejx eûgyLx K‡i‡Q hv Af¨šÍixY cwi‡ek
Our green banking activities cover multiple areas which
eë¯’vcbv †_‡K ïiæ K‡i wMÖb A_©vqb ch©šÍ we¯Í…Z| cwi‡ek evÜe e¨vswKs include both in-house environment management and
eë¯’vi weKvk, g~j¨vqb I eë¯’vcbvi Rb¨ GKRb Ea©Zb wbe©vnx‡K `vwqZ¡ cÖ`vb green financing. There is a green banking unit to develop,
evaluate and administer eco-friendly banking system. Green
Kiv n‡q‡Q| wbqwgZ wMÖb e¨vswKs Kvh©vejx cl©‡ì wi¯‹ g¨v‡bR‡g›U KwgwU‡K banking activities are being notified to the Risk Management
AewnZ Kiv n‡”Q| FY MÖnxZvi g~j¨vq‡b evsjv‡`k e¨vs‡Ki ERM Ges G Committee of the Board on regular basis. Sonali Bank has
incorporated environmental and climate change risk as part
m¤úwK©Z Acivci wb‡`©kbvi Av‡jv‡K Credit risk methodology Gi Ask of the existing credit risk methodology to asses a borrower
wn‡m‡e Environmental and climate change risk AšÍf©y³ Kiv n‡q‡Q| in line with Bangladesh Bank ERM (Environment Risk
Management) guide-lines and related instructions. The Bank
e¨vsK cÖZ¨¶ I c‡iv¶fv‡e cwi‡ek-evÜe Kg©Kv‡Û A_©vqb K‡i Avm‡Q| is funding directly and indirectly in eco-friendly activities.
cwieZ©bkxj mg‡qi mv‡_ Zvj wgwj‡q Pjvi wbwgË †mvbvjx e¨vsK wjwg‡UW Sonali Bank Limited has made substantial investment for
the development of the ICT infrastructure, vast automation
e¨vcK A‡Uv‡gkb Kg©m~wP Ae¨vnZ †i‡L‡Q Ges GhverKv‡j m‡e©v”P cwigvY of unheard of magnitude, cyber security, manpower
A_© wewb‡qvM K‡i‡Q| Zxeª cÖwZ‡hvwMZvi gy‡LI e¨vsK Kv‡Ri ¸YMZ gv‡bi development and research to keep itself abreast with the
Dbœqb, Af¨šÍixY Drcv`bkxjZv e„w×, MÖvnK †mevi gv‡bvbœqb Ges Kv‡Ri changing needs of the time. In the face of increasingly
fierce competition, the bank has been continuously
¯^”QZv wbwðZ Kivi j‡¶¨ me©vaywbK cÖhyw³ cÖ‡qv‡Mi Aweivg cÖ‡Póv Pvwj‡q striving towards bringing technology driven banking
services, convenience and satisfaction to its customers. It
hv‡”Q| wbiwew”Qbœ, wbf©i‡hvM¨, `ªæZ I ¯^íe¨‡q RbM‡Yi †`vi‡Mvovq one helps standardize the quality of work, internal productivity
stop customer service Kvh©µg †cŠu‡Q †`qvi j‡¶¨ B‡Zvg‡a¨ e¨vs‡Ki and improved customer service. The Bank has already
Annual Report 2021

mKj kvLv‡K AvšÍR©vwZK gvbm¤úbœ Core Banking Solution (CBS) implemented international standard robust Core Banking
Solution (CBS) system in all branches in order to provide
†bUIqv‡K©i AvIZvq wb‡q Avmv n‡q‡Q| uninterrupted, reliable, faster and instant one stop customer
service at an affordable cost.
`vwqZ¡kxj K‡c©v‡iU cÖwZôvb wn‡m‡e †kqvi‡nvìvi, †`‡ki A_©bxwZ, mgvR, Sonali Bank Limited as a responsible corporate citizen is
Kg©xevwnbx I cwi‡e‡ki Dci e¨vs‡Ki Kvh©µ‡gi AwfNv‡Zi wel‡q e¨vsK fully aware of its responsibility about how its operational
activities impact its shareholders, the economy, its
c~Y©gvÎvq m‡PZb Av‡Q| ˆbwZKZvi mv‡_ eëmvwqK Kvh©µg cwiPvjbv, eëmv employees, the society and the environment. Conducting
I A_©‰bwZK cÖe„w×i my‡hvM m„wó, RbM‡Yi AvKv•Lv c~iY, cwi‡e‡ki cÖwZ business in an ethical way, creating opportunities for
business and economic growth, empowering people to
j¶¨ †i‡L A_©vqb Ges mgv‡Ri `yt¯’ gvby‡li cÖwZ mnvqZvi nvZ cÖmvwiZKiYB fulfill their aspirations, ensuring protection of environment
†mvbvjx e¨vs‡Ki mvgvwRK `vqe×Zvi g~j j¶¨| Avgiv wek¦vm Kwi, `vwqZ¡kxj while financing business and supporting the distressed
people of the society are at the heart of the corporate
AvPiY †`‡ki A_©‰bwZK I mvgvwRK Dbœq‡bi mv‡_ IZ‡cÖvZfv‡e RwoZ Ges social responsibility of Sonali Bank Limited. We believe that
GRb¨ m~PbvjMœ †_‡K e¨vsK wewea mvgvwRK I Rbwn‰Zlx Kg©m~wP ev¯Íevq‡b responsible conducts are directly correlated with economic
and social development of the country. Sonali Bank Limited
c_ cÖ`k©bKvixi fzwgKv cvjb K‡i Avm‡Q| e¨vsK wk¶v, µxov, ¯^v¯’¨, gvbe has been playing a pioneering role in implementing various
m¤ú` Dbœqb, cÖK…wZ msi¶Y, mvgvwRK m‡PZbZv e„w×, `yt¯’ gvby‡li cybe©vmb, social and philanthropic programs. Education, sports,
healthcare, human resources development, conservation
kxZvZ©‡ì gv‡S DòZv m„wói cÖqv‡m K¤^j weZiY Ges gvbweK wech©‡q wewfbœ of nature, creation of social awareness, rehabilitation of
Kg©m~wP nv‡Z †bqvi gva¨‡g mvgvwRK I Rbwn‰Zlx Kg©m~wP cwiPvjbv K‡i distressed humanities, distributing blankets amongst the
cold affected people are some of the important areas where
Avm‡Q| the bank carries out its social and philanthropic activities.
2021 mv‡j Avgvi mnKg©xe„›` Kg©`¶Zv I ‡ckv`vwi‡Z¡i cÖwZdjb NwU‡q The year 2021 was a demanding year in many respects
and a testament to the talent and professionalism of all
P¨v‡jÄ †gvKv‡ejv K‡i wewfbœ †¶‡Î DrK‡l©i bwRi ¯’vcb K‡i‡Qb| Avwg my colleagues who successfully met its challenges along
Avgvi mnKg©x‡ì K‡Vvi cwikªg, `¶Zv I A½xKv‡ii Rb¨ abëv` Rvbv‡Z the way. I would like to take this opportunity to extend
my thanks to my colleagues for their efforts. I render my
PvB| e¨vsK-‡K Afxô j‡¶¨ †cuŠQvi AwfhvÎvq w`K wb‡`©kbvi f~wgKv cvj‡bi humble thanks and indebtedness to the Board of Directors
Rb¨ e¨vs‡Ki cwiPvjbv cl©`‡K RvbvB K…ZÁZv I AvšÍwiK abëv`| m‡e©vcwi, of the Bank by whose able direction and prudent guidance,
our efforts met with success. In addition, I am gratified
A_© gš¿Yvj‡qi A_© wefvM I e¨vsK I Avw_©K cÖwZôvb wefvM, evsjv‡`k e¨vsK, for their earnest co-operation. I also express my sincere
thanks and deep gratitude to Finance Division and Financial
evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ Kwgkb Ges Ab¨vb¨ wbqš¿K ms¯’v‡K
Institution Division of the Ministry of Finance, Government
Avgv‡ì eëmvq cwiPvjbvq mn‡hvwMZv, civgk© I mg_©b`v‡bi Rb¨ abëv` of the Peoples Republic of Bangladesh, Bangladesh Bank,
Bangladesh Securities & Exchange Commission and other
I K…ZÁZv RvbvB| Avwg Avkv Kwi †h, DwjøwLZ mKj †÷K‡nvìvi‡ì mg_©b regulatory bodies for their continued support and guidance.
I mn‡hvwMZv eZ©gv‡bi b¨vq mvg‡bi w`b¸‡jv‡ZI Ae¨vnZ _vK‡e| I also expect that their all out support will continue in the
years to come.
Avgvi `„p wek¦vm †h, G ch©šÍ AwR©Z `„pZv I MwZB n‡e 2022 mv‡j Avgv‡ì We are entering into 2022 with our resilience and the
momentum that we have gained so far. We also have with
m½x| Avgv‡ì AmvaviY `jMZ cÖ‡Póv, AMÖvwaKvi wfwËK Kvh©µg Ges us an excellent team, a shared set of priorities and proven
mdjZvi AZxZ †iKW©B Avgv‡ì‡K Av‡iKwU mdjZvi eQi Dcnvi †`‡e| track record of good performance and with all these, we do
look forward to yet another year of success.
gnvb Avjøvn& Avgv‡ì mnvq †nvb| May Almighty Allah help us.
(†gvt AvZvDi ingvb cÖavb) (Md. Ataur Rahman Prodhan)

wmBI GÛ g¨v‡bwRs wW‡i±i CEO & Managing Director
56
PADMA BRIDGE
GLORIOUS CONNECTIVITY
Annual Report 2021

DIRECTORS’
REPORT TO THE
SHAREHOLDERS

m¤§vwbZ †kqvi‡nvìvie„›` Esteemed Shareholders
Avmmvjvgy AvjvBKzg| Assalamu Alaikum.
†mvbvjx e¨vsK wjwg‡UW Gi 15Zg evwl©K mvaviY mfvq Avcbv‡ì‡K ¯^vMZ With immense pleasure, we take the privilege of welcoming
you to the 15th Annual General Meeting (AGM) of Sonali
Rvbv‡Z †c‡i Avgiv AZ¨šÍ Avbw›`Z| 2021 mv‡j e¨vs‡Ki eëmv cwiPvjbvi Bank Limited. We convey our heartfelt thanks and gratitude
†ÿ‡Î Avcbv‡ì mevi Ae¨vnZ mg_©b I Drmvn †`qvi Rb¨ Avgiv AvšÍwiKfv‡e to all of you for your continued support and patronization
abëv` I K…ZÁZv Ávcb KiwQ| Avcbv‡ì ch©v‡jvPbv I we‡køl‡Yi Rb¨ in carrying out the business of our Bank in 2021. We present
herewith the audited Financial Statements and the Auditors’
Avgiv GLv‡b e¨vs‡Ki 31 wW‡m¤î 2021 ZvwiL wfwËK wbixwÿZ Avw_©K Report for the year ended 31 December 2021 for your
weeiYxmn wbixÿv cÖwZ‡e`b Dc¯’vcb KiwQ| perusal and consideration.
iv‡óªi e„nËg evwYwR¨K e¨vsK wn‡m‡e †mvbvjx e¨vsK wjwg‡UW mKj ¯Í‡ii Sonali Bank Limited (SBL), the largest commercial bank of
the country, has been operating and entertaining every level
MÖvnK‡K e¨vswKs myweav cÖ`v‡bi cvkvcvwk D™¢vebx e¨vswKs †mev †`qvi gva¨‡g of people with banking facilities and delivering innovative
†`‡ki †UKmB Dbœq‡b f~wgKv ivL‡Q| gvbm¤§Z MÖvnK †mev cÖ`v‡bi j‡ÿ¨ banking services for overall and sustainable development of
bZzb wfkb I wgkb wb‡q G e¨vsK 3 Ryb, 2007 Zvwi‡L cvewjK wjwg‡UW the country. It was registered as the Public Limited Company
on 3 June 2007 with a new Vision and Mission to serve the
†Kv¤úvbx wn‡m‡e wbewÜZ nq | nation by providing quality customer services.
G cÖwZ‡e`‡b †mvbvjx e¨vsK wjwg‡UW Gi 2020 mv‡ji eëmvwqK Kvh©µg The activities of the Bank and its operational performance in
2021 as compared to those in 2020 have been presented in
Ges djvd‡ji mv‡_ 2021 mv‡ji Zzjbvg~jK Ae¯’v Zz‡j aiv n‡q‡Q| Avw_©K
this report. The financial statements prepared in accordance
cÖwZ‡e`bmg~n cÖ¯‘‡Zi mgq B›Uvib¨vkbvj wdb¨vwÝqvj wi‡cvwU©s ÷vÛvW© with the International Financial Reporting Standards (IFRS)
(AvBGdAviGm) mn Ab¨vb¨ wbqš¿YKvix ms¯’vi wb‡`©kvejx cwicvjb Kiv and other compliances with the regulatory requirements
of the country for the year ended 31 December 2021 have
n‡q‡Q| DwjøwLZ wb‡`©kvejx cwicvjb K‡i 31 wW‡m¤î, 2021 mv‡ji cÖ¯‘ZK…Z been annexed to the report. Before presenting the detailed
Avw_©K weeiYxmg~n GB cÖwZ‡e`‡bi mv‡_ mshy³ Av‡Q| e¨vs‡Ki Avw_©K Ae¯’vi performance of the Bank in the year under review, we would
wek` wPÎ Dc¯’vc‡bi c~‡e© 2021 mv‡ji wek¦ A_©bxwZi cvkvcvwk evsjv‡`‡ki like to present you a snapshot of the performance of the
world economy in 2021 followed by that of the Bangladesh
A_©bxwZi wKQz ¸iæZ¡c~Y© ‡cÖÿvc‡Ui mvims‡ÿc Dc¯’vcb Kiv n‡jv| economy in some key areas.
wek¦ A_©bxwZ 2021 World Economic Scenario 2021
†KvwfW 19 cÖv`yf©v‡ei ci 2021 mv‡j wek¦ A_©bxwZ cÖejfv‡e Ny‡i ùvov‡jI The global economy is recovering strongly from the
COVID-19 outbreak though the process is very unequal
†`k¸‡jvi A_©bxwZi cyYiƒ×vi mgnv‡i nqwb| wek¦ e¨vs‡Ki †Møvevj B‡Kv‡bvwgK
among countries. According to the recently published
cÖm‡c±, Ryb 2021 †gvZv‡eK 2021 mv‡j wek¦ A_©‰bwZK cÖe„w× 5.6% World Bank’s Global Economic Prospect, June 2021, the
cÖ‡ÿcb Kiv n‡q‡Q †hwU 2020 mv‡j wQj 3.5%| hwÌ GB cÖe„w× mymgwš^Z economic growth is projected at 5.6 percent in 2021, while
58
DIRECTORS' REPORT
wQj bv| gyjZ DbœZ A_©bxwZi †`kmg~‡n ch©vß Avw_©K mnvqZv I ch©vß wUKvi growth was contracted to 3.5 percent in 2020. This recovery
mieiv‡ni Kvi‡Y Zv‡ì A_©bxwZ e¨vcKfv‡e Ny‡i ùvov‡bvB wQj Gi g~j is uneven and largely reflects sharp rebounds in some major
economies owing to substantial fiscal support and highly
KviY| êwk¦K A_©bxwZ 2022 I 2023 mv‡j h_vµ‡g 4.3% I 3.1% ch©šÍ vaccine access. Global growth is set to reach 4.3 percent
cÖe„w× AR©b Ki‡Z cv‡i e‡j aviYv Kiv n‡”Q| and 3.1 percent respectively in 2022 and 2023.
gnvgvixi cÖv`yf©ve RwbZ wewfbœ †`k I †m±img~‡ni Kvh©µg e¨vnZ nIqv Ges Economic recoveries are diverging across countries and
wewea bxwZMZ mnvqZvi Dci wbf©i K‡i wewfbœ †`‡ki A_©bxwZi cybiƒ×v‡i sectors, reflecting variation in pandemic-induced disruptions
and extent of policy support. While advanced economies
wfbœZv cwijwÿZ nq| G‡ÿ‡Î DbœZ †`k¸‡jv Ny‡i ùvov‡jI we‡k¦i †ekxifvM are re-bounding, many of world’s poorest countries are
‡cQ‡bi KvZv‡ii ‡`k¸‡jv wcwQ‡q co‡Q| wi‡cvU© Abyhvqx hy³iv‡óªi 6.8% being left behind. The report predicts that the growth of
cÖe„w×i cvkvcvwk DbœZ †`k¸‡jv‡Z 5.4% cÖe„w× n‡Z cv‡i| Aciw`‡K developed economies will reach 5.4 percent in 2021, with
6.8 percent potential economic growth in the United States.
D`xqgvb I Dbœqbkxj †`k¸‡jvi A_©bxwZ‡Z 2021 mv‡j 6% cÖe„w× n‡Z
Growth in emerging markets and developing economies is
cv‡i †hLv‡b Pxb I fvi‡Zi cÖe„w× h_vµ‡g 8.5% I 8.3% n‡Z cv‡i e‡j projected at 6.0 percent in 2021, with China growing at 8.5
aviYv Kiv n‡”Q| percent and India at 8.3 percent.
AvBGgGd Gi Iqvì© B‡Kv‡bvwgK AvDUjyK GwcÖj 2021 †gvZv‡eK, DbœZ According to the World Economic Outlook (WEO) April
2021, International Monetary Fund (IMF), economic activity is
†`k¸‡jv‡Z Pjgvb f¨vKwm‡bkb Kg©m~Pxi mv‡_ mv‡_ A_©‰bwZK Kvh©µgI
firming across major advanced economies amid continued
µ‡gB MwZ wd‡i cv‡”Q| †ekxifvM DbœZ †`‡k e¨vcK A_©‰bwZK cÖe„w× AwR©Z vaccination. The economic growth of almost all countries
n‡e| Z‡e cwiewZ©Z cÖ‡ÿcb †gvZv‡eK BD‡iv‡ci cÖe„w× wKQzUv Kg n‡jI of advanced economies will be positive. Projections for
2021 have been revised down in Europe and up in Japan
Rvcvb Ges hy³iv‡óª cÖe„w× e„w× cv‡e| and the United States.
D`xqgvb A_©bxwZi Pxb 2021 mv‡j Zvi mgmvgwqK Ab¨ †`k¸‡jvi Zzjbvq Prospects for China are much stronger than for most other
‡ek LvwbKUv GwM‡q i‡q‡Q| D`xqgvb I Dbœqbkxj Ab¨vb¨ †`k¸‡jv †KvwfW countries in this group in 2021. The recovery in all emerging
markets and developing economies regions is expected to
19 cÖv`yf©v‡ei av°v KvwU‡q Ny‡i ùvov‡bvi g‡Zv Ae¯’vq GL‡bv wdi‡Z cv‡iwb| be insufficient to reverse the damage from the pandemic.
we‡kl K‡i ch©Ub wbf©i †`k¸‡jv‡Z gnvgvix m¤ú~Y©iƒ‡c wbqš¿‡Y bv Avmvi The recovery in small, tourism-dependent economies is
Kvi‡Y ågb wb‡lavÁv evwZj bv nIqvq A_©bxwZi cyYiƒ×v‡i GL‡bv `~e©jZv expected to be particularly weak as some travel restrictions
will remain in place until the pandemic is brought under
cÖZxqgvb n‡”Q| GQvov wb¤œ Av‡qi †`k¸‡jv‡Z wUKv mieiv‡ni wfbœZvi
control. The pace of vaccine rollout varies across countries,
Kvi‡Y G †`k¸‡jv µgvMZ wcwQ‡q co‡Q| Z‡e g~jZ Px‡bi Kvi‡Y c~e© Gwkqv with low-income countries lagging considerably. The
I c¨vwmwdK AÂ‡j A_©bxwZi k³ cybiæ×vi Avkv Kiv n‡”Q| `wÿb Gwkqvi recovery is expected to be stronger in East Asia and the
g‡a¨ fvi‡Z gnvgvix me‡P‡q †ekx Qwo‡q covq Zv‡ì A_©bxwZ gvivZ¥Kfv‡e Pacific, primarily due to strength in China. In South Asia,
India’s recovery is being hampered by the largest outbreak
evavMÖ¯’ n‡”Q| ‰ewk¦K A_©bxwZi cybiæ×v‡ii cvkvcvwk AvšÍR©vwZK evRv‡i of any country since the beginning of the pandemic. In
†Z‡ji gyj¨ 2020 mv‡ji me©wb¤œ wfwËgyj¨ n‡Z 2021 mv‡j †ek LvwbKUv addition, consistent with the projected global recovery, oil
e„w×i m¤¢vebv i‡q‡Q| Lv`¨`ª‡eï gyjÏ G mgq h‡_ó e„w× cv‡e e‡j aviYv prices are projected to grow in 2021 from their low base
Kiv n‡”Q| in 2020, in part reflecting the OPEC+. Food prices are also
expected to pick up in 2021.
evsjv‡`‡ki A_©bxwZ 2021 Bangladesh Economic Scenario 2021
A_©‰bwZK cÖe„w×i aviv eRvq †i‡L evsjv‡`‡ki cÖe„w× 2015-16 A_©eQ‡i Following the trend of achieving economic growth, the
7% Ges 2018-19 A_©eQ‡i 8% AwZµg K‡i 8.15% G ùvovq| †KvwfW growth exceeded 7 percent in FY 2015-16 and 8 percent in
FY 2018-19. In FY 2018-19, the growth stood at 8.15 percent.
19 gnvgvixi Kvi‡Y wek¦ A_©bxwZ _g‡K hvIqvq evsjv‡`‡ki A_©bxwZ‡ZI Lye The global economy has come to a standstill due to the
Lvivc cÖfve †d‡j| evsjv‡`k cwimsL¨vb ey¨‡iv (weweGm) Gi wnmve Abyhvqx COVID-19 pandemic which has also had a huge negative
impact on the economy of Bangladesh. According to the
2019-20 A_©eQ‡i cÖe„w× 3.51% G †b‡g Av‡m| wek¦ A_©bxwZi g‡Zv final calculations of BBS, the GDP growth in FY 2019-20
K‡ivbv fvBivm Gi cÖfve †gvKv‡ejv K‡i B‡Zvg‡a¨ evsjv‡`‡ki A_©bxwZI has slowed down to 3.51 percent. Bangladesh’s economy is
turning around in the context of tackling the Corona virus of
Ny‡i ùvov‡Z ïiæ K‡i‡Q| weweGm Gi mvgwqK wnmve †gvZv‡eK 2020-21
the world economy. According to the provisional estimates
A_©eQ‡i cÖe„w× 5.47% G ùvwo‡q‡Q| of BBS, the GDP growth in FY 2020-21 stood at 5.47 percent.
According to the provisional estimate of BBS, the growth
mvgwqK wnmve Abyhvqx K…wl Lv‡Zi cÖe„w× 2019-20 Gi 4.59% n‡Z 2020-21
of agriculture sector has slowed to 3.45 percent in the
G 3.45% G †b‡g G‡m‡Q| GKB mg‡q wkí Lv‡Zi cÖe„w× c~e©eZ©x A_©eQ‡ii FY 2020-21, from 4.59 percent in FY 2019-20. During the
same period, industry sector grew by 4.59 percent, which
3.25% Zzjbvq 4.59% G DbœxZ n‡q‡Q| fvix I ga¨g wkí Ges †QvU wk‡í was 3.25 percent in the previous fiscal year. The growth of
large and medium enterprises and small scale industries
c~e©eZ©x eQ‡ii h_vµ‡g 1.39% I 3.96% Gi Zzjbvq 2020-21 A_©eQ‡i in GDP stood at 6.56 and 1.73 percent respectively in FY
2020-21, compared to 1.39 percent and 3.96 percent in the
Annual Report 2021

h_vµ‡g 6.56% Ges 1.73% cÖe„w× n‡q‡Q| wbg©vY wk‡íi cÖe„w× MZ eQ‡ii previous fiscal year. The growth of the construction sector
stood at 8.68 percent as compared to 8.66 percent over the
8.66% Gi n‡Z 8.68% G DbœxZ n‡q‡Q| †mevLv‡Zi cÖe„w× Av‡Mi eQ‡ii previous fiscal year. The service sector grew by 5.61 percent
4.16% n‡Z 5.61% e„w× †c‡q‡Q| in FY 2020-21 compared to 4.16 percent in the previous
fiscal year.
cvBKvwi I LyPiv eëmv, †nv‡Uj-‡i÷z‡i›U, hvZvqvZ I †hvMv‡hvM, Avw_©K Wholesale and retail trade; hotels and restaurants; transport
and communication; financial inter-mediations; real estate
ga¨¯’ZvKvix, wi‡qj G‡÷U, fvov I evwbwR¨K Kvh©µg 2019-20 Gi Zzjbvq
and renting and business activities etc. have increased
D‡jøL‡hvM¨ cwigv‡Y e„w× †c‡q‡Q| wRwWwc‡Z †mevLv‡Zi Ae`vb c~e©eZ©x significantly compared to FY 2019-20. The contribution of
broad service sector to the GDP stood at 51.53 percent in FY
mg‡qi 51.48% n‡Z 2020-21 A_©eQ‡i 51.53% G DbœxZ n‡q‡Q| 2020-21, which was 51.48 percent in the previous fiscal year.
me©‡kl wnmve Abyhvqx, gv_vwcQz wRwWwc 2019-20 A_©eQ‡ii 1,930 gvtWjvi As per the final estimate, per capita GDP stands US$ 2,097 in
n‡Z 167 gvtWjvi e„w× †c‡q 2020-21 A_©eQ‡i 2,097 gvtWjv‡i DbœxZ FY 2020-21, up by US$ 167 from US$ 1,930 of fiscal year 2019-
n‡q‡Q Ges gv_vwcQz RvZxq Avq 2019-20 Gi 2,024 gvtWjv‡i n‡Z 203 20, while the per capita national income stood at US$ 2,227
gvtWjvi e„w× †c‡q 2020-21 G 2,227 gvtWjv‡i DbœxZ n‡q‡Q| up by US$ 203 from US$ 2,024 of the previous fiscal year.
K‡ivbv fvBivm Gi Kvi‡Y A_©bxwZi MwZ wKQzUv w¯ÍwgZ nIqv m‡Ë¡I Lv‡`¨ Despite the stagnation in the economy due to the Corona
virus, inflation in FY2020-21 is slightly higher (5.56%) than
gyj¨ùxwZ 2020-21 A_©eQ‡i 5.56% G w¯’i nq hv jÿ¨gvÎv 5.4% n‡Z
the target (5.4%) as a result of uninterrupted food production
mvgvb¨ ‡ekx| g~jZ µgvMZ Lv`¨ Drcv`b I evavnxb mieiv‡ni Kvi‡Y GwU and supply chains. To address the crisis resulting from the
wbqš¿‡Y ivLv m¤¢e n‡q‡Q| †KvwfW 19 cÖv`yf©veRwbZ Kvi‡Y A_©bxwZ‡Z Gi outbreak of COVID-19 and overcome its potential adverse
effects on the economy, Hon’ble Prime Minister Sheikh
m¤¢ve¨ ÿwZKi cÖfve †gvKv‡ejvq ¯^í, ga¨ I `xN©‡gqv`x jÿ¨‡K mvg‡b †i‡L Hasina has guided the formulation of an overall programme
gvbbxq cÖavbgš¿x †kL nvwmbv GKwU dg©yjv cÖ`vb K‡i‡Qb| GB †cÖvMÖvg Gi with short, medium, and longterm targets. This program has
PviwU †KŠkjMZ êwkó¨ i‡q‡Q t four main strategic aspects.
1. The first strategy is to increase government spending
1. cÖ_gZ wejvmeûj e¨q‡K wbiærmvwnZ K‡i I Kg©ms¯’v‡bi my‡hvM m„wó‡K with a priority to creating jobs and discouraging luxury
cÖvavb¨ w`‡q miKv‡ii e¨q e„w× Kiv| spending.
2. wØZxqZ A_©‰bwZK Kg©KvÛ Pvjy †i‡L †`‡k I we‡`‡k D‡`¨v³v‡ì g‡a¨ 2. The second strategy is to provide low-interest credit
facilities through the banking system to industries and
cÖwZ‡hvwMZv e„w×i j‡ÿ¨ e¨vsK eë¯’vi gva¨‡g ¯^í my‡` wkí I eëmv business enterprises to revive economic activities and
increase the competitiveness of entrepreneurs at home
cÖwZôvb mgy‡ni Rb¨ FY myweav Pvjy Kiv|
and abroad.
3. Z…ZxqZ nZ`wi`ª I wb¤œ Av‡qi gvbyl Ges we‡kl K‡i hviv K‡ivbvi mgq 3. The third strategy is to increase the scope of the
government’s social security programs to protect
nVvr Kg© nvwi‡q‡Q Ges AwbqwgZ Kg©Rxwe‡ì Rb¨ mvgvwRK wbivcËv the ultra-poor and the low-income groups that have
Kg©m~Pxi AvuIZv e„w× Kiv| suddenly become unemployed as well as the people
engaged in informal sectors.
4. PZz_©Z Ges †kl †KŠkj n‡jv evRv‡i A‡_©i †hvMvb e„w× Kiv| Z‡e GwU 4. The fourth and last strategy is to increase money
Ggb mveavbZvi mv‡_ cwicvjb Kiv n‡”Q †hb gyj¨ùxwZ‡Z Gi Lvivc supply in the market. However, this strategy is being
implemented with utmost caution so that the negative
cÖfve wbqš¿b Kiv hvq| effects of inflation can be controlled.
†KvwfW-19 gnvgvwii ÿwZKi cÖfve †gvKv‡ejv K‡i evsjv‡`‡ki ‰e‡`wkK Foreign trade of Bangladesh has started to return to a positive
trend after confronting the adverse effect of COVID-19
evwbR¨ DbœwZi avivq wd‡i Avm‡Z ïiæ K‡i‡Q| 2020-21 A_©eQ‡i ißvwb pandemic. Export earnings stood at US$ 38,758.31 million
evwbR¨ c~e©eZ©x eQ‡ii Zzjbvq 15.10% e„w× †c‡q 38,758.31 wgwjqb in FY 2020-21, which is 15.10 percent higher than the export
earnings in the previous fiscal year. The government has
gvtWjv‡i DbœxZ n‡q‡Q| miKvi ißvwbi †ÿ‡Î cÖ‡Yv`bv wn‡m‡e †ek wKQy taken several steps as an incentive in the export sector. In
c`‡ÿc wb‡q‡Q| ißvwb e„w×i j‡ÿ¨ bZzb cY¨mn mKj c‡Yï ißvwbi †ÿ‡ÎB order to encourage exports and export of commodities
cash incentive is being provided to the exporters. This
ißvwbKviK‡ì bM` A_© mnvqZv cÖ`vb Kiv n‡”Q| †`‡ki Avg`vwb e¨qI facility is being extended to new products as well. Country’s
c~e©eZ©x A_©eQ‡ii Zzjbvq 19.73% e„w× †c‡q 65,594.70 wgwjqb gvtWjv‡i total import payments (c&f) stood at US$ 65,594.7 million in
FY 2020-21, which was 19.73 percent higher than the import
ùvwo‡q‡Q| payments of the preceding fiscal year.
gnvgvwii Kvi‡b ewnwe©‡k¦ kÖgevRvi gvivZ¥Kfv‡e ÿwZMÖ¯’ nq| GZ`&m‡Ë¡I Due to COVID-19 pandemic, the global labour market has
drastically affected. Despite this, Bangladeshi expatriates’
2020-21 A_©eQ‡i evsjv‡`‡ki cÖevmxiv †gvU 24,777.72 wgwjqb gvtWjvi remittance stood at US$ 24,777.72 million in 2020-21 which
†iwgU¨vÝ †cÖiY K‡i hv 2019-20 Gi Zzjbvq 36.10% †ekx| wewfbœ †`‡ki was significantly higher (36.10%) than the previous fiscal
60
DIRECTORS' REPORT
g‡a¨ ga¨cÖv‡Pï †`k¸wj †_‡K mePvB‡Z †ekx †iwgU¨vÝ AvnwiZ nq| cwðgv year. The major portion of remittance has been received
I BD‡ivwcqvb †`k¸wji g‡a¨ hy³iv‡óªi Ae¯’vb mevi Dc‡i| m¤úªwZ hy³ivR¨, from Middle East countries. The USA obtained the top
position among the Western and European countries.
gvj‡qwkqv, wm½vcyi Ges Ab¨vb¨ K‡qKwU †`k n‡Z †iwgU¨v‡Ýi cwigvY e„w× Recently, remittance inflow has increased from UK, Malaysia,
†c‡q‡Q| Singapore and some other countries.
mvgwMÖK evwb‡Rï fvimv‡gï DØ„Ë ê‡`wkK evwb‡Rï wiRvf©‡K e„w× †c‡Z The surplus in the overall balance helped to maintain the
foreign exchange reserve up. On 30 June 2020, the foreign
mvnvh¨ K‡i‡Q| 30 Ryb 2020 G ê‡`wkK wiRvf© Gi cwigvY wQj 36.04 exchange reserves reached US$ 36.04 billion. The foreign
wewjqb gvtWjvi hv 30 Ryb 2021 G †iKW© 46.39 wewjqb gvtWjv‡i DbœxZ nq| exchange reserves increased to a record US$ 46.39 billion
at 30 June 2021.
†mvbvjx e¨vsK wjwg‡UW Gi AvZ¥cÖKvk The emergence of Sonali Bank Limited
evsjv‡`k e¨vsK (b¨vkbvjvB‡Rkb) AW©vi-1972, ivóªcwZi Aa¨v‡`k bs-26, Sonali Bank was established under the Bangladesh Banks
1972 †gvZv‡eK b¨vkbvj e¨vsK Ae cvwK¯Ívb, w` e¨vsK Ae evn&Iqvjcyi Ges (Nationalization) Order-1972, President’s Order No-26 of
1972, through the merger and nationalization of 1) The
w` wcÖwgqvi e¨vsK wjwg‡UW A½xf~ZKiY Ges RvZxqKi‡Yi gva¨‡g †mvbvjx
National Bank of Pakistan 2) The Bank of Bhawalpur Ltd.
e¨vsK AvZ¥cÖKvk K‡i| cieZ©x‡Z †Kv¤úvbx AvBb, 1994 Abyhvqx 3 Ryb, and 3) The Premier Bank Ltd. Later on, it was registered as
2007 Zvwi‡L R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m G wbeÜ‡bi gva¨‡g GwU a Public Limited Company under the Company Act, 1994
cvewjK wjwg‡UW †Kv¤úvbx wn‡m‡e ¯^vaxbfv‡e Kvh©µg ïiæ K‡i| evsjv‡`k on 3 June, 2007, with joint stock companies and firms to
e¨vsK KZ…©K e¨vsK †Kv¤úvbx AvBb, 1991 Abyhvqx 5 Ryb, 2007 Zvwi‡L make it operationally independent. Bangladesh Bank issued
†mvbvjx e¨vsK wjwg‡UW ‡K e¨vswKs jvB‡mÝ cÖ`vb Kiv nq| MYcÖRvZš¿x Banking License on 5 June, 2007 under the Bank Company
Act, 1991. Sonali Bank Limited took over the business of
evsjv‡`k miKvi Ges †mvbvjx e¨vsK wjwg‡UW Gi g‡a¨ m¤úvw`Z Pzw³
Sonali Bank on 15 November, 2007 with all assets, liabilities,
†gvZv‡eK 15 b‡f¤î, 2007 mv‡j GKwU Vendor`s Agreement ¯^vÿ‡ii benefits, rights, powers, authorities, privileges, borrowing
gva¨‡g †mvbvjx e¨vs‡Ki mKj m¤ú`, `vq, myweav, AwaKvi, ÿgZv, KZ©„Z¡, and responsibility as going concern under a Vendor`s
we‡klvwaKvi, avi Ges `vwqZ¡ AwaMÖn‡Yi gva¨‡g †mvbvjx e¨vsK wjwg‡UW GKwU Agreement signed between the Government of the People’s
Pjgvb mZ¡v (Going Concern) wn‡m‡e cÖwZôv cvq| †`‡ki Af¨šÍ‡i i‡q‡Q Republic of Bangladesh and Sonali Bank Limited. It is the
largest state-owned commercial bank having 1227 local
1227wU Ges †`‡ki evB‡i 2wU kvLvmn †gvU 1229wU kvLv wb‡q eZ©gv‡b GwU
branches, 2 foreign branches, 66 Principle Offices, 15 GM
†`‡ki me©e„nr ivóªvqZ¡ evwYwR¨K e¨vsK| GQvov 66wU wcÖwÝcvj Awdm, 15wU Offices, 32 Corporate Branches (including Local Office), 48
wRGg Awdm, kvLv mg~‡ni g‡a¨ 32wU K‡c©v‡iU kvLv, 48wU GwW kvLv i‡q‡Q| AD branches and three subsidiaries- named Sonali Exchange
†mvbvjx e¨vsK wjwg‡UW Gi 3wU mvewmwWqvix cÖwZôvb i‡q‡Q-(1) †mvbvjx Co. Inc. (SECI), USA, Sonali Bank (UK) Ltd. and Sonali
G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI), BDGmG, (2) †mvbvjx e¨vsK Investment Limited (SIL) in Bangladesh; and an associate
(BD‡K) wjwg‡UW Ges (3) †mvbvjx Bb‡fó‡g›U wjwg‡UW (SIL), evsjv‡`k| named Sonali Intellect Limited. The address of the registered
office of the Bank is 35-42, 44 Motijheel Commercial Area,
GQvov, GKwU G‡mvwm‡qUI i‡q‡Q- †mvbvjx Bb‡U‡j± wjwg‡UW| G e¨vs‡Ki
Dhaka, Bangladesh. The Board of Directors of the Bank
wbewÜZ Awdm wVKvbv n‡jv 35-42, 44 gwZwSj, evwYwR¨K GjvKv, XvKv, consists of 09 (nine) members headed by a Chairman. The
evsjv‡`k| e¨vs‡Ki cwiPvjbv cl©` 09(bq) m`m¨ wewkó hvi cÖavb n‡jb Directors are representatives from both public and private
GKRb †Pqvig¨vb| cwiPvjbv cl©‡ì m`m¨MY Kg©`ÿZv I Áv‡bi Av‡jv‡K sectors with high proficiency and scholastic background in
weKwkZ miKvwi Ges †emiKvwi Lv‡Zi cÖwZwbwa| their respective areas.
Sonali Bank Limited- In the Banking Sector

evsjv‡`‡ki e¨vswKs †m±‡i †mvbvjx e¨vsK wjwg‡UW of Bangladesh
evsjv‡`‡ki Afz¨`‡qi ci n‡Z †`‡ki A_©bxwZ Ges e¨vswKs †m±‡ii weKvk After the emergence of Bangladesh, the role of Sonali Bank
Gi †ÿ‡Î †mvbvjx e¨vs‡Ki fzwgKv Ab¯^xKvh©| ZrKvjxb evsjv‡`k cybM©V‡b Limited in advancement of economy and in flourishing
banking business is indispensable. Since the liberation war,
Ges cieZ©x‡Z †`‡ki eëmv evwYR¨ cÖmvi, wkíKviLvbv ¯’vcb, Avg`vwb-
Sonali Bank has been working as the co-partner of complying
ißvwb mn mvwe©K Dbœqbg~jK Kg©Kv‡Û †mvbvjx e¨vsK miKv‡ii mn‡hvMx government policy in rebuilding Bangladesh along with
wn‡m‡e KvR K‡i Avm‡Q| 2021 mvj †k‡l †`‡ki e¨vswKs †m±‡ii †gvU expansion of business, establishment of industries, import-
14,093,426.00 wgwjqb UvKv AvgvbZ Ges 12,360,817.00 wgwjqb UvKv export financing etc. At the end of 2021, amount of deposits
and loans & advances of Sonali Bank Limited are Tk.
FY I AwMÖg Gi wecix‡Z †mvbvjx e¨vs‡Ki AvgvbZ Ges FY I AwMÖ‡gi cwigvY 1,350,815.87 million and Tk. 690,596.85 million respectively,
h_vµ‡g 1,350,815.87 wgwjqb Ges 690,596.85 wgwjqb UvKv, kZKiv 9.58% of total deposits of Tk. 14,093,426.00 million and 5.59%
wn‡m‡e h_vµ‡g 9.58% I 5.59%| 2021 mv‡j †mvbvjx e¨vsK ‡kÖYxK…Z FY of total loans & advances of Tk. 12,360,817.00 million of the
n‡Z 12,590.00 wgwjqb UvKv Av`vq K‡i| †`‡ki †gvU ê‡`wkK †iwgU¨vÝ banking sector of Bangladesh. During 2021, Sonali Bank
has recovered Tk. 12,590.00 million from classified loan. In
22,076.84 wgwjqb BDGm Wjv‡ii wecix‡Z †mvbvjx e¨vsK wjwg‡UW Gi inward foreign remittance, Sonali Bank’s contribution is US$
Ae`vb 1,475.03 wgwjqb BDGm Wjvi ev 6.68%| D‡jøwLZ eQ‡i †mvbvjx 1,475.03 million which is 6.68% of total foreign remittance
e¨vsK AwMÖg Ki, Dr‡m Ki Ges f¨vU eve` †gvU 10,847.49 wgwjqb UvKv of US$ 22,076.84 million of Bangladesh. Moreover, the Bank
deposited a total of Tk. 10,847.49 million in 2021 as advance
miKvwi †KvlvMv‡i Rgv K‡i‡Q|
tax, tax at source and VAT to the national exchequer.
Annual Report 2021

†mvbvjx e¨vsK wjwg‡UW Gi mvewmwWqvwi †Kv¤úvbxmg~n Subsidiaries of Sonali Bank Limited

†mvbvjx e¨vsK wjwg‡U‡Wi 3wU mvewmwWqvix cÖwZôvb i‡q‡Q- (1) †mvbvjx Sonali Bank Limited has three subsidiaries named (1) Sonali
G·‡PÄ †Kv¤úvwb BbK‡c©v‡i‡UW (SECI), (2) †mvbvjx Bb‡f÷‡g›U wjwg‡UW Exchange Co. Inc. (SECI), (2) Sonali Investment Limited (SIL)
(SIL) Ges (3) †mvbvjx e¨vsK (BD‡K) wjwg‡UW| and (3) Sonali Bank (UK) Ltd.
†mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) Sonali Exchange Co. Inc. (SECI)
wbDBq‡K©i †÷U wWcvU©‡g‡›Ui AvBb ‡gvZv‡eK 4 GwcÖj, 1994 Zvwi‡L †mvbvjx A subsidiary company incorporated on 4 April, 1994 under
the laws of the state of New York, USA, commenced its
G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) GKwU †Kv¤úvbxiƒ‡c cÖwZwôZ nq| operations as an International Money Remitter from 12
GwU 12 wW‡m¤î 1994 ZvwiL †_‡K AvšÍR©vwZKfv‡e A_© †cÖiYKvix cÖwZôvb December, 1994. At present, Sonali Exchange Co. Inc. has
wn‡m‡e Kvh©µg ïiæ K‡i| eZ©gv‡b hy³iv‡óªi 5wU A½iv‡R¨ Gi 10wU kvLv 10 branches in 5 states of the USA. The paid up capital of
i‡q‡Q| Gi cwi‡kvwaZ g~jab 9,50,000 gvwK©b Wjvi| this subsidiary is US$ 950,000.
†mvbvjx Bb‡f÷‡g›U wjwg‡UW (SIL) Sonali Investment Limited (SIL)

cuywRevRv‡ii ÿz`ª I mvaviY wewb‡qvMKvix‡ì ¯^v_© myiÿvi Rb¨ †mvbvjx evsK To protect the interest of small and common investors in
the capital market, SBL has established a wholly owned
wjwg‡UW m¤ú~Y© wbR¯^ A_©vq‡b 2010 mv‡j Ò†mvbvjx Bb‡f÷‡g›U wjwg‡UWÕÕ
subsidiary named ‘Sonali Investment Limited’ in 2010. Sonali
(SIL) bv‡g GKwU mvewmwWqvix †Kv¤úvbx cÖwZôv K‡i| 20 GwcÖj 2010 mv‡j Investment Limited was registered under the Companies
†Kv¤úvbx AvBb, 1994 Abymv‡i †mvbvjx Bb‡f÷‡g›U wjwg‡UW wbewÜZ nq Act 1994 as a public limited company by shares on 20
April , 2010 and commenced its operations from 22 April,
Ges R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m Gi wbKU wbewÜZ nIqvi ci 22
2010 as the company got registered with Registrar of
GwcÖj 2010 ZvwiL †_‡K Gi Kvh©µg ïiæ K‡i| weGmBwm †_‡K 05 AvMó Joint Stock Companies and Firms. SIL received merchant
2010 Zvwi‡L SIL gv‡P©›U e¨vswKs Gi jvB‡mÝ AR©b K‡i| evsjv‡`k e¨vs‡Ki banking license from BSEC on 5 August, 2010. In terms of
bxwZgvjvi Av‡jv‡K †mvbvjx e¨vsK wjwg‡UW Zvi gv‡P©›U e¨vswKs BDwbU‡K the guidelines of Bangladesh Bank, SBL has converted
its merchant banking unit into a separate subsidiary
GKwU c„_K mvewmwWqvix †Kv¤úvbx wn‡m‡e †mvbvjx Bb‡f÷‡g›U wjwg‡UW company titled Sonali Investment Limited (SIL) with the
G iƒcvšÍi K‡i| Gi jÿ¨ wQj gv‡P©›U e¨vsK wn‡m‡e c~Y© Kvh©µg cwiPvjbv objectives of undertaking full-fledged merchant banking
Kiv hvi g‡a¨ Bmy¨ g¨v‡bR‡g›U,AvÛvi ivBwUs Ges ‡cvU©‡dvwjI g¨v‡bR‡g›U operations namely, issue management and underwriting
and portfolio management. The authorized capital of this
Ab¨Zg| Gi Aby‡gvw`Z g~ja‡bi cwigvY n‡jv 5,000 wgwjqb UvKv Ges subsidiary is Tk. 5,000 million and paid up capital is Tk.
cwi‡kvwaZ g~ja‡bi cwigvY 2,000 wgwjqb UvKv| eZ©gv‡b SIL Gi XvKvq 2,000 million. At present, SIL is operating through 02 (two)
2wU kvLv i‡q‡Q| branches in Dhaka.
†mvbvjx e¨vsK (BD‡K) wjwg‡UW Sonali Bank (UK) Limited

A_© †cÖiY I Ab¨vb¨ Avw_©K †mev cÖ`v‡bi jÿ¨ wb‡q †mvbvjx †UªW GÛ wdb¨vÝ With a view to remitting money and providing other
financial services to its customers, a company under the
(BD‡K) wjwg‡UW bv‡g GKwU †Kv¤úvbx 30 Ryb 1999 mv‡j cÖwZwôZ nq| name and style Sonali Trade and Finance (UK) Limited
GwU cÖwZwôZ nq BD‡K †Kv¤úvbxR AvBb 1985 Abyhvqx| cieZ©x‡Z 7 was incorporated on 30 June 1999 as an associate under
wW‡m¤î 2001 ZvwiL †_‡K wdbvwÝqvj mvwf©‡mm A‡_vwiwU, BD‡K KZ©„K the UK Companies Act 1985. Subsequently the company
was allowed to commence its function as a bank from 7
†Kv¤úvbxwU‡K e¨vswKs Kvh©µg Kivi Aby‡gv`b †`q| Gi bvg cwieZ©b K‡i December 2001 by the financial services authority of UK.
cieZ©x‡Z ‡mvbvjx e¨vsK (BD‡K) wjwg‡UW Kiv nq| cybM©V‡bi gva¨‡g The name was changed later on as Sonali Bank (UK) Ltd.
MYcÖRvZš¿x evsjv‡`k miKvi Gi gvwjKvbvq 51% †kqvi Ges †mvbvjx e¨vsK and restructured the ownership of the company having
51% share capital in favor of the Government of People’s
wjwg‡UW gvwjKvbvq 49% †kqvi i‡q‡Q| †mvbvjx e¨vsK (BD‡K) wjwg‡UW Republic of Bangladesh and remaining 49% by Sonali Bank
Gi cwi‡kvwaZ g~ja‡bi cwigvY 61.46 wgwjqb weªwUk cvDÛ| GB †Kv¤úvbxi Limited. The paid up capital of Sonali Bank (UK) is GBP 61.46
million. The main functions of the associate are to advise,
g~j KvR n‡jv †mvbvjx e¨vsK wjwg‡UW Ges evsjv‡`kx Ab¨vb¨ e¨vs‡Ki Gjwm
negotiate, confirm and provide discount facilities against L/
we‡ji GWfvBwRs, †b‡Mvwk‡qU, Kbdvg© Ges wWmKvD›U myweav cÖ`vb Kiv| Cs originating from SBL and other Bangladeshi banks. The
GwU †mvbvjx e¨vsKmn Ab¨vb¨ evsjv‡`kx e¨vs‡Ki ê‡`wkK †iwgU¨vÝ eëmv company also handles remittance business for SBL and
other banks of Bangladesh.
cwiPvjbvq mnvqZv K‡i _v‡K|
G‡mvwm‡qU Ae †mvbvjx e¨vsK wjwg‡UW Associate of Sonali Bank Limited
†mvbvjx Bb‡U‡j± wjwg‡UW Sonali Intellect Limited

Sonali Intellect Limited was incorporated in Bangladesh
†mvbvjx Bb‡U‡j± wjwg‡UW †Kv¤úvbx AvBb, 1994 Abymv‡i 25 Rvbyqvix 2012
as a private limited company on 25 January 2012 under
ZvwiL †_‡K evsjv‡`‡k cÖvB‡fU wjwg‡UW †Kv¤úvbx wn‡m‡e ZvwjKvfy³ nq| the Companies Act, 1994. The company commenced its
†Kv¤úvbxwU 1 †deªæqvix 2012 †_‡K eëmvwqK Kvh©µg kyiæ K‡i| Gi 51% business operations on 1 February, 2012. The 51% share
62
DIRECTORS' REPORT
†kqv‡ii gvwjKvbv aviY K‡i †cvjvwik wdbvwÝqvj †UK‡bvjwRm wjwg‡UW, capital of the company is owned by the Polaris Financial
fviZ I 35% †kqv‡ii gvwjKvbv †mvbvjx e¨vsK wjwg‡UW Ges Aewkó 10% Technologies Ltd. India, 35% by Sonali Bank Limited and the
remaining 10% & 4% by Bangladesh Commerce Bank Ltd.
I 4% †kqv‡ii gvwjKvbv h_vµ‡g evsjv‡`k Kgvm© e¨vsK wjwg‡UW Ges cvš’
And Pantho Soft Ltd. respectively. The principal activities
mdU wjwg‡UW Gi| GB †Kv¤úvbxi cÖavb KvR n‡jv evsjv‡`‡ki e¨vsKmg~‡n of the company are to customize, enhance, modify and
Bb‡U‡j± †Kvi e¨vswKs mwjDkb (CBS) eënvi Dc‡hvMx, DbœZ, m¤úv`b implement intellect Core Banking Solution (CBS) 10.0
Kiv Ges ev¯Íevqb Kiv| software in banks in Bangladesh.
†kqvi †nvìvm© BK¨zBwU Shareholders’ Equity

31 wW‡m¤î 2021 ZvwiL wfwËK e¨vs‡Ki †kqvi †nvìvm© BKz¨BwU ùvwo‡q‡Q The shareholders’ equity of the Bank stood at Tk. 76,742.89
million as on 31 December 2021 which was Tk. 85,615.61
76,742.89 wgwjqb UvKv hv 31 wW‡m¤î 2020 †Z wQj 85,615.61 wgwjqb UvKv| million in 2020.
wb¤œewY©Z ZvwiL ch©šÍ Ae¯’v Position as of (Tk. in
µt †kqvi †nvìvm© cwieZ©b Sl. Shareholder's million)
(wgwjqb UvKvq) No. Equity Changes
bs BK¨zBwU (%)
2021 2020 2021 2020 %
1 cwi‡kvwaZ g~jab 45300.00 45300.00 - 1. Paid-Up Capital 45300.00 45300.00 -
2 mswewae× mwÂwZ 14547.10 13469.00 8.00 2. Statutory reserve 14547.10 13469.00 8.00
Ab¨vb¨ mwÂwZ Ges Other reserve and
3 24249.36 36494.17 (33.55) 3. 24249.36 36494.17 (33.55)
cybtg~jv¨vqb mwÂwZ Revaluation reserve
4 wi‡UBbW Avwb©sm (7353.57) (9647.58) 23.78 4. Retained earnings (7353.57) (9647.58) 23.78
†gvU †kqvi‡nvìvi BKz¨BwU 76742.89 85615.61 (10.36) Total Shareholder's Equity 76742.89 85615.61 (10.36)
b¨vkbvj †bUIqvK© National Network

miKvwi bxwZ ev¯Íevqb Ges †`‡ki A_©‰bwZK Dbœq‡bi Rb¨ †mvbvjx e¨vsK SBL has established branch network throughout complying
with the government policy and for the economic
wjwg‡UW mviv †`‡k Zvi kvLv †bUIqvK© cÖwZôv K‡i‡Q| †fŠMwjKfv‡e development of the country. Geographically all important
†`‡ki mKj ¸iæZ¡c~Y© ¯’vbmn ‡`‡ki mKj Dc‡Rjv, `~ieZ©x MÖvgxY Rbc‡` locations including all Upazillas, important places as well as
remote rural areas of the country have been brought under
†mvbvjx e¨vs‡Ki kvLv †bUIqvK© we¯Í„Z| `yÕwU ê‡`wkK kvLvmn 2021 mv‡j the network coverage of the Bank. With the addition of two
overseas branches, total number of branches increased to
†mvbvjx e¨vs‡Ki †gvU kvLvi msL¨v 1,229wU| Gi g‡a¨ †`‡ki Af¨šÍ‡i MÖvgxY
1,229 in 2021. Alongwith 2 foreign branches 700 branches
Rbc‡` 700wU Ges 527wU kvLv kni AÂ‡j Aew¯’Z| cÖavb Kvh©vjqmn are located in rural areas and 527 branches in urban areas.
The overall functions of the branches are supervised and
82wU cªkvmwbK Kvh©vj‡qi gva¨‡g kvLvmg~‡ni mvwe©K Kvh©µg Z`viwK Ges
monitored by 82 administrative offices. The administrative
cwiPvjbv Kiv nq| cÖavb Kvh©vj‡qi Aax‡b 47wU wefvMmn, XvKv-‡m›Uªvj, structure comprises 47 divisions under Head Office in
Dhaka; 15 General Managers Offices Dhaka-Central, Dhaka-
XvKv-b_©, XvKv-mvD_, PÆMÖvg, Lyjbv, ivRkvnx, ewikvj, wm‡jU, iscyi, North, Dhaka-South, Chottogram, Khulna, Rajshahi, Barisal,
dwi`cyi, gqgbwmsn, Kzwgjøv, w`bvRcyi, e¸ov I ‡bvqvLvwj ‡Z 15wU wRGg Sylhet, Rangpur, Faridpur, Mymensingh, Cumilla, Dinajpur,
Bogura and Noakhali; 66 Principal Offices located at
Awdm, 66wU wcÖwÝcvj Awdm Gi mgš^‡q cÖkvmwbK KvVv‡gv MwVZ| different parts of the country.
AvšÍR©vwZK †bUIqvK© International Network
cÖevmx evsjv‡`kx‡ì ‡iwgU¨vÝ mviv †`‡k Zv‡ì DcKvi‡fvMx‡ì wbKU SBL takes various initiatives to provide direct banking
services and channel foreign remittance from the expatriate
†cÖi‡Yi †ÿ‡Î †mvbvjx e¨vsK wjwg‡UW wewfbœ ai‡Yi D‡`¨vM MÖnY K‡i‡Q|
Bangladeshis. The Bank’s subsidiary Sonali Bank (UK)
e¨vs‡Ki mn‡hvMx cÖwZôvb †mvbvjx e¨vsK (BD‡K) wjwg‡UW Zvi `yBwU kvLv Limited and its 02(two) branches facilitate foreign trade
wb‡q hy³iv‡R¨ ê‡`wkK evwY‡Rï mv‡_ mv‡_ ê‡`wkK gy`ªv †cÖi‡Y mnvqZv and remittance channeling business. Its subsidiary in USA,
Sonali Exchange Company Incorporated (SECI) and its
K‡i Avm‡Q| hy³iv‡óª †mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI)
02(two) branches assist in channeling remittance to the
02wU kvLv I 08wU ey_ wb‡q ê‡`wkK gy`ªv wbivc‡` Ges `ªæZZg mg‡qi home country safely and swiftly. SBL has also Taka Drawing
g‡a¨ †cÖi‡Y ¸iæZ¡cyY© f~wgKv cvjb K‡i Avm‡Q| Ab¨vb¨ e¨vsK Ges G·‡PÄ Arrangement (TDA) with other banks and exchanges so that
people living abroad can send their money through proper
nvD‡mi mv‡_ †mvbvjx e¨vs‡Ki Taka Drawing Arrangement (TDA) banking channel to the beneficiaries in the country. Currently,
Av‡Q hv‡Z K‡i cÖevmx evsjv‡`kxiv Zv‡ì †cÖwiZ A_© e¨vswKs P¨v‡b‡ji there are 80 Taka Drawing Agency (TDA) with Banks and
gva¨‡g †`‡k Zv‡ì DcKvi‡fvMx‡ì wbKU †cÖiY Ki‡Z cv‡ib| eZ©gv‡b exchange houses scattered across the world. Besides,
the Bank has extended customer services by establishing
we‡k¦i 80wU e¨vsK/G·‡PÄ nvD‡Ri mv‡_ Taka Drawing Arrangement correspondent relationship with a total of 692 branches/
(TDA) Av‡Q| GQvov, K‡imc‡Û›U m¤ú‡K©i gva¨‡g we‡k¦i 96wU †`‡ki subsidiaries located in 96 countries in the world. The
Annual Report 2021

692wU kvLv/mn‡hvMx ms¯’vi Øviv ê‡`wkK gy`ªv †`‡k †cÖi‡Yi eë¯’v Av‡Q| correspondent relationship has significantly increased the
GB m¤ú‡K©i gva¨‡g e¨vs‡Ki ê‡`wkK gy`ªv Ges ê‡`wkK evwYR¨ e„w× cv‡”Q| Bank’s foreign exchange and trade business simultaneously.
A tabuler presentation of foreign correspondents and
wb‡¤œ †Uwe‡ji gva¨‡g d‡ib K‡imc‡Û›U Ges kvLvi Z_¨ Dc¯’vcb Kiv n‡jvt branches is given below:
G·‡PÄ Name of the Exchange
bs ‡`‡ki bvg kvLv wUwWG G·‡PÄ Sl. Branch TDA Exc.
nvDm country House
1. wm½vcyi 4 26 1. Singapore 4 26
2. hy³ivR¨ 2 3 28 2. UK 2 3 28
3. BD G B 13 20 3. UAE 13 20
4. †K Gm G 7 16 4. KSA 7 16
5. gvj‡qwkqv 6 13 5. Malaysia 6 13
6. KvZvi 3 6 6. Qatar 3 6
7. Igvb 9 4 7. OMAN 9 4
8. evnivBb 5 3 8. Bahrain 5 3
9. Kz‡qZ 11 8 9. Kuwait 11 8
10. hy³ivóª 9 2 69 10. USA 9 2 69
11. fviZ 2 22 11. INDIA 2 22
12. Ab¨vb¨ 21 9 477 12. OTHERS 21 9 477
†gvU 4 28 72 692 TOTAL 4 28 72 692
Avw_©K AšÍf©yw³KiY Financial Inclusion

miKv‡ii Avw_©K AšÍf©yw³KiY cÖKí Z¡ivwš^Z Kivi Kv‡R mnvqZvi j‡ÿ¨ With a view to assisting the government in accelerating
†mvbvjx e¨vsK wjwg‡UW Zvi wekvj †bUIqv‡K©i gva¨‡g †`‡ki kni I MÖvgxY financial inclusion program, SBL is working relentlessly to
bring simple, poor and unbanked people under the coverage
Rbc‡ì mvaviY, Mwie Ges e¨vswKs eë¯’vi evB‡ii RbMY‡K e¨vswKs †mevi of banking system with its enormous branch network in
AvIZvq Avbq‡bi Rb¨ wbijmfv‡e KvR K‡i hv‡”Q| 2021 mv‡j e¨vs‡K rural and urban areas. In SBL, total number of accounts
under financial inclusion program stands at 5,394,192 in
Avw_©K AšÍf©yw³KiY cÖK‡íi AvIZvq †gvU wnmve msL¨v ùvwo‡q‡Q 53,94,192 2021. Among them, the number of farmer’s accounts has
wU| Gi g‡a¨ gvÎ 10 UvKv Rgv`v‡bi gva¨‡g †Lvjv K…lK‡ì wnmve msL¨v reached to 1,617,270 at the end of 31 December, 2021 by
encouraging opening accounts of the farmers at an initial
n‡jv 16,17,270wU| 31 wW‡m¤î 2021 ZvwiL wfwËK gyw³‡hv×v wnmve, ¯‹zj deposit of Tk. 10.00. As of 31 December 2021, the number of
QvÎ/QvÎx‡ì wnmve Ges mvgvwRK wbivcËv †e÷bxi AvIZvq wnmve msL¨v freedom fighters accounts, school going student’s accounts
and accounts under social safety net programs are 271,200;
h_vµ‡g 2,71,200wU; 1,44,830wU Ges 30,46,690wU| †`‡ki RbM‡Yi
144,830 and 3,046,690 respectively. A large segment of the
GKwU e„nr Ask we‡kl K‡i MÖvgxY Mwie RbMY, Mwie K…lK, bvix D‡`¨v³v, population particularly the rural poor people, poor farmers,
women entrepreneurs and garments workers have got the
†cvkvK kÖwgK G e¨vs‡Ki gva¨‡g e¨vswKs †mevi my‡hvM cv‡”Q| AwaKš‘, myweav
access to banking services through SBL. Moreover, various
ewÂZ RbM‡Yi GKwU eo As‡ki Rb¨ AvKl©Yxq my‡ì AvgvbZ ‡cÖvWv±m& Ges innovative deposit products with lucrative interest rate and
FY ¯‹xg Pvjy Kiv n‡q‡Q hv Financial Inclusion cÖwZ‡e`‡b wek`fv‡e credit facilities with a relaxing rate have been successfully
launched to attract deprived segment of population. Details
Zz‡j aiv n‡q‡Q| have been presented in the “Report on Financial Inclusion”.
Information Technology and Online

Z_¨ cÖhyw³ Ges AbjvBb e¨vswKs †mevmg~n Banking Services
†mvbvjx e¨vsK wjwg‡UW mvd‡jï mv‡_ eZ©gv‡b evsjv‡`‡ki mePvB‡Z eo Sonali Bank Limited has successfully turned itself into the
AbjvBb e¨vs‡K iƒcvšÍwiZ n‡q‡Q| 1989 mv‡j A‡Uv‡gk‡bi hvÎv ïiæi ci largest online Bank in Bangladesh. Since inauguration of
the journey towards automation in 1989, a total of 1227
†_‡K G ch©šÍ e¨vs‡Ki 1224 wU ¯’vbxq kvLvi me¸‡jvB Bb‡U‡j± CBS fzw³i domestic branches and 2 foreign branches out of 1229 are
gva¨‡g e¨vs‡Ki MÖvnK‡ì wWwRUvj c×wZ‡Z e¨vswKs †mev cÖ`vb Ki‡Q| rendering digitalized banking services through Intellect CBS
software and Online Any Branch Banking (Online ABB) to
GQvov m¤úªwZ MªvnK‡ì myweavi K_v we‡ePbv K‡i ÔÔ†mvbvjx B-Iqv‡jUÕÕ,
the clients of the Bank. Moreover, considering customer
ÔÔ†mvbvjx B-†mevÕÕ, ÔÔweKvkÕÕ Gi gva¨‡g †jb‡`b Pvjy Kiv n‡q‡Q| Av‡iv Av‡Q satisfaction, mobile apps ’’Sonali e-wallet’’, ’’Sonali eSheba’’,
64
DIRECTORS' REPORT
GBPAviGgGm mdUIq¨vi, AviGgGm cøvm, GbwcGmwe, AviwUwRGm, e¨vP, transaction with ’’b-Kash’’ have been introduced. The Bank
also introduced HRMS software, RMS Plus, NPSB, RTGS,
weBGdwUGb, Ab-jvBb miKvwi †jb‡`b, U¨v· mdUIq¨vi, †mvbvjx †mev,
BACH, BEFTN, Online Govt. Transaction, Tax Software,
†cbkb cÖ`vb mdUIq¨vi, wmwmwUwf cÖwZ¯’vcb BZ¨vw`| eZ©gv‡b mKj kvLvq Sonali Sheba, Pension paying Software, CCTV installation
etc. At present, 1227 CBS branches have been operating
CBS Gi gva¨‡g MÖvnK‡ì e¨vswKs myweav cÖ`vb Kiv n‡”Q| wbewÜZ MÖvnKMY
SMS banking service. Registered customers can get their
Zv‡ì wnmv‡ei †jb‡`b Ges e¨vjvÝ msµvšÍ Z_¨ †gvevB‡j SMS Gi gva¨‡g account transaction and balance through SMS. These
technology based solutions have placed our Bank in a
Rvb‡Z cv‡ib| G mKj cÖhyw³ wbf©iZv e¨vsKwU‡K e¨vswKs Lv‡Z cÖhyw³MZ reputable position in terms of technological progression in
DbœwZi myL¨vwZi Avm‡b AwawôZ K‡i‡Q| the banking industry.
†mvbvjx B-†mev I †mvbvjx B-Iqv‡jU Sonali e-sheba and Sonali e-wallet

During the COVID 19 pandemic in 2020, for the welfare of
2020 mv‡j †KvwfW 19 gnvgvwi PjvKvjxb mg‡q †mvbvjx e¨vsK wjwg‡UW
the country and the the mass people, Sonali Bank Limited
†`k I RbM‡Yi †jb‡`‡bi myweav‡_© ÔÔ†mvbvjx B-†mevÕÕ Pvjy K‡i hvi gva¨‡g introduced ’’Sonali e-Sheba’’ through which the clients can
MÖvnKiv Lye mn‡R N‡i e‡mB GKvD›U Lyj‡Z I cwiPvjbv Ki‡Z cv‡i| GiB open accounts even from their home. As a continuous
avivevwnKZvq cieZ©x‡Z ÔÔ†mvbvjx B-Iqv‡jUÕÕ Pvjy Kiv nq| Gi gva¨‡g MÖvnKiv process, the bank also introduced ’’Sonali e-wallet’’ which
helps the clients to make transactions to any accounts, pay
†h‡Kvb mgq †h‡Kvb wnmv‡e ‡jb‡`bmn wewfbœ wej, cixÿvi wd, U¨v· mn
the bills and taxes etc.
wewfbœ †jb‡`b m¤úbœ Ki‡Z cv‡i|
Achievements of SBL IT inclusion are as
Z_¨cÖhyw³ ms‡hvR‡b †mvbvjx e¨vsK wjwg‡UW follows:
1. †mvbvjx e¨vsK wjwg‡UW ¯’vbxq mKj kvLvq Bb‡U‡j± CBS AšÍf©zw³i 1. Sonali Bank Limited has become the largest online Bank in
gva¨‡g Ab-jvBb Kvh©µg Pvjy K‡i evsjv‡`‡ki mePvB‡Z eo AbjvBb e¨vs‡K Bangladesh by rendering online services through installing
iƒcvšÍwiZ n‡q‡Q| intellect CBS software in all of its domestic brances.
2. †mvbvjx e¨vsK wjwg‡UW G †`‡k me©c_Ö g N‡i e‡m AbjvB‡b e¨vs‡Ki †h‡Kvb kvLvq 2. Sonali Bank Limited launched its own mobile app “Sonali
eSheba’’ and ’’Sonali e-wallet’’ for providing cashless banking
wnmve †Lvjv Ges K¨vk‡jm e¨vswKs myweav cÖ`vbmn Ab¨vb¨ e¨vswKs †mev cÖ`v‡bi
as well as online account opening facility at any branch of
wbwgË wbR¯^ †gvevBj G¨vc ÔÔ†mvbvjx B-†mevÕÕ I ÔÔ†mvbvjx B-Iqv‡jUÕÕ Pvjy K‡i‡Q| this bank for the first time in the country.
3. e¨vs‡Ki wbRm¦ AbjvBb eë¯’vcbvq mKj kvLvi gva¨‡g mÂqcÎ wewµ I 3. The Bank’s own “Online Management System” has been
launched for selling and encashment of savings certificate
bM`vqb Kvh©µg Pvjy Kiv n‡q‡Q| through all branches.
4. e¨vs‡Ki 105wU GwUGg ey‡_ wmwmwUwf wm‡÷g ¯’vcb Kiv n‡q‡Q| 4. Close Circuit Television (CCTV) system has been installed
in 105 ATM Booths.
5. 2012 mv‡j Pvjy nevi ci †_‡K GbweAvi †mvbvjx e¨vsK B-†cvU©v‡ji 5. Under the system of the NBR Sonali Bank e-Payment
Portal, Tax, VAT and Customs duty are being paid On-line.
gva¨‡g U¨v·, f¨vU, Kv÷gm wWDwU Ab-jvB‡bi gva¨‡g Rgv Kiv n‡”Q| Moreover, since 15 February 2015, printed challan copies,
ZvQvov 15 †deªæqvwi 2015 †_‡K GB †cvU©v‡ji gva¨‡g RgvK…Z Pvjv‡bi made by this portal, are received at bank counter through
wcÖ‡›UW Kwc e¨vsK KvD›Uv‡i MÖnY Kiv n‡”Q| ePay Bank Counter.
6. Reporting activities of receipt and payment of Govt. chest
6. miKvwi †KvlvMvi msµvšÍ mKj Kvh©µg †Rjv ch©v‡q e¨vs‡Ki 58wU ‡Pó are being rendered through online software in 58 chest
kvLvq Ab-jvBb mdUIq¨vi Gi gva¨‡g m¤úvw`Z n‡”Q| branches at district level.
7. miKvwi †jb‡`b wm‡÷g (GTS) bvgxq B›Uvi‡bU wfwËK bZzb PvjyK…Z 7.”Government Transaction System” GTS software/program
has been introduced in 643 Treasury branches of the Bank
GKwU mdUIq¨vi Gi gva¨‡g e¨vs‡Ki 643wU kvLvq miKvwi mKj †jb‡`b
to capture all government transactions.
m¤úbœ Kiv n‡”Q|
8. ¯^”QZv I Revew`wnZv wbwðZ Kivi Rb¨ m¤úªwZ e¨vs‡K ÔAbjvBb Pvjvb 8. To ensure transparency and accountability, the Bank has
recently introduced “Online Chalan Verification”.
†fwiwd‡KkbÕ Pvjy Kiv n‡q‡Q|
9. A web based software, developed in-house named
9. †iwgU¨vÝ g¨v‡bR‡g›U wm‡÷g (RMS plus) e¨vs‡Ki wbR¯^ D™¢vweZ GKwU
“Remittance Management SystemPlus (RMSPlus)”, has
I‡qe mvBU wfwËK mdUIq¨vi| GwU eZ©gv‡b †`kxq 1227wU kvLvq ‰e‡`wkK been introduced in 1227 branches for receiving foreign
I †`kxq †iwgU¨vÝ MÖnY/cÖ`v‡bi †iwgU¨vÝ Avbq‡bi gva¨g wn‡m‡e eëüZ remittance and receiving and making payment of Inland/
Local remittance.
n‡”Q|
10. e¨vs‡Ki eëmv m¤úªmviYmn AbjvB‡bi gva¨‡g N‡i e‡m wewfbœ wkÿv 10. With a view to expansion of bank’s business and
collecting salaries/fees/charges from different educational
cÖwZôv‡bi †eZb/wd/PvR© Av`vqKi‡Yi j‡ÿ¨ e¨vs‡Ki wbR¯^ mdUIq¨vi institutions, the Bank introduced it’s own software “Sonali
eënvi K‡i wkÿv_©xiv wd/PvR© cwi‡kva Ki‡Z mÿg n‡”Qb| Payment Gateway” through which students/parents can pay
their fees/charges from home by transferring funds.
Annual Report 2021

11. e¨vs‡Ki mKj kvLvq mdjfv‡e evsjv‡`k B‡jKUªwbK dvÛ UªvÝdvi 11. The Bank has successfully implemented Bangladesh
†bUIqvK© (BEFTN) wm‡÷g Pvjy n‡q‡Q| Electronic Fund Transfer Network (BEFTN) system in all the
branches.
12. e¨vs‡Ki XvKv kn‡ii 105wU kvLvq 09 Rvbyqvwi 2014 ZvwiL †_‡K 12. ‘Sonali Bank Clearing System (SBCS)’ has been deployed
AvšÍtkvLv wK¬qvwis Gi Rb¨ Ò†mvbvjx e¨vsK wbKvk c×wZ (SBCS)Ó cÖewZ©Z in 105 branches of Dhaka city for the automation of inter
n‡q‡Q| branch clearing system since 9 January, 2014.
13. eZ©gv‡b †mvbvjx e¨vsK wjwg‡UW Gi 48wU Aby‡gvw`Z wWjvi kvLvi g‡a¨ 13. Trade finance module has already been incorporated in
CBS and currently 43 Branches out of 48 Authorised Dealer
43wU kvLv CBS G ms‡hvRbK…Z †UªW dvBb¨vÝ gwWDj Gi gva¨‡g eëmvwqK
Branches of SBL are operating their business using this
Kvh©µg cwiPvjbv Ki‡Q| module.
14. †mj †dv‡bi mnRjf¨Zv Ges m¤§vwbZ MÖvnK‡ì cwieZ©bkxj Avw_©K 14. Considering the availability of cell phones and meeting
up the ever evolving financial needs of our esteemed
cÖ‡qvRbxqZv we‡ePbvq wb‡q e¨vs‡K GmGgGm e¨vswKs †mev Pvjy Kiv n‡q‡Q| customers, the Bank has introduced SMS banking service.
ûB‡mj †eøvqvi Whistle Blower
m¤úªwZ †mvbvjx e¨vsK wjwg‡UW evsjv‡`‡ki e¨vswKs †m±‡i me©cÖ_g ÒûB‡mj Recently Sonali Bank Limited has introduced “Whistle
†eøvqvi cwjwmÓ cÖeZ©b K‡i| e¨vs‡Ki mKj Kg©KvÛ `yb©xwZgy³ ivLv Ges Blower Policy’’ for the first time in the banking history of
Bangladesh. Certainly it is very important and bold decision
ï×vPvi cÖwZôvq G cwjwm AZ¨šÍ ¸iæZ¡c~Y©, mg‡qvc‡hvMx Ges mvnmx GKwU in implementing national integrity and for corruptionless
c`‡ÿc| ûB‡mj †eøvqvi cwjwm ev¯Íevq‡b b¨vqcvj ¸iæZ¡c~Y© f~wgKv cvjb K‡i banking activities. An Ombudsman has important role in
implementing Whistle Blower Policy properly. At present, A
_v‡Kb| e¨vs‡K eZ©gv‡b GKRb cwiPvjK b¨vqcv‡ji `vwqZ¡ cvjb Ki‡Qb|
Director is in charge of the Ombudsman.
Whistle Blower Policy Implementation Report 2021 Whistle Blower Policy Implementation Report 2021
MÖxb wdb¨vÝ Green Finance

Rjevqy cwieZ©b me©‡kl `k‡K SyuwKc~Y© Riæwi wel‡q cwiYZ n‡q‡Q weavq As climate change has become the burning question over
the last decade, SBL management is fully aware of the
†mvbvjx e¨vsK eë¯’vcbv G wel‡q mg¨Kfv‡e mRvM i‡q‡Q Ges cÖZ¨vwkZ risk and also taking necessary steps to have an optimistic
djvd‡ji Rb¨ cÖ‡qvRbxq eë¯’v MÖnY K‡i‡Q| evsjv‡`k e¨vs‡Ki MÖxb e¨vswKs outcome on this issue. Complying with Bangladesh Banks’
green banking policy, SBL is financing environment friendly
bxwZgvjv cwicvjb K‡i †mvbvjx e¨vsK cwi‡ek evÜe cÖK‡í A_©vqb Ki‡Q
projects (such as renewable energy projects, clean water
hv‡Z cwi‡ekMZ fvimvg¨ weivR K‡i| c‡ivÿfv‡e MÖxb dvBb¨v‡Ýi †ÿ‡Î supply projects, waste treatment plant, solid waste disposal
e¨vsK Ggb me cÖK‡í A_©vqb Ki‡Q †hLv‡b BwUwc Ges †mŠi we`ÿr i‡q‡Q| plant etc.) to ensure ecological balance. For indirect Green
Finance, Bank is funding such projects which have ETP and
GQvov e¨vs‡Ki wbR¯^ D‡`¨vM Ò†mvbvjx Av‡jvÓ Gi gva¨‡g cvewjK I cÖvB‡fU
Solar Panel. “Sonali Alo” is the Bank’s initiative intended to
†m±‡ii cÖKímgy‡n mn‡hvwMZv K‡i Avm‡Q| 2021 mvj ch©šÍ †mvbvjx e¨vsK align its efforts with the initiatives being undertaken by both
wjwg‡UW cÖZ¨ÿfv‡e wewfbœ cÖK‡í 55.90 wgwjqb UvKv A_©vqb K‡i‡Q| public and private sectors. Till 2021, Sonali Bank Limited
directly financed Tk. 55.90 million in various projects.
B‡Zvg‡a¨ e¨vs‡Ki ¯’vbxq 1227wU kvLvi me¸‡jv‡ZB Bb‡U‡j± Ò†Kvi e¨vswKs Moreover, CBS has been installed in all 1227 domestic
mwjDkb (CBS)Ó ev¯Íevqb K‡i‡Q| †mvbvjx e¨vsK wjwg‡UW cwi‡ekMZ fv‡e branches of the bank. SBL is ethically not bound to finance
ÿwZKi cÖKímgy‡n A_©vqb‡K wbiærmvwnZ K‡i| to any environmentally harmful project.
Bmjvgx e¨vswKs Islamic Banking

SBL is giving priority on Islamic Banking because of its recent
mv¤úªwZK mg‡q AwR©Z RbwcÖqZvi Kvi‡Y †mvbvjx e¨vsK wjwg‡UW Bmjvgx
popularity in the banking sector. Primarily Islamic Banking
e¨vswKs‡K †ek ¸iæZ¡ w`‡”Q| 29 Ryb 2010 Zvwi‡L c&ªv_wgKfv‡e 5wU kvLvq was launched successfully with separate windows in 5
DB‡Ûvi gva¨‡g Bmjvgx e¨vswKs Kvh©µg Pvjy Kiv nq| cieZ©x‡Z e¨vs‡Ki branches on 29 June 2010. Subsequently, as per decision of
66
DIRECTORS' REPORT
kixqvn mycvifvBRix KwgwU KZ©„K 64wU †Rjvq Bmjvgx e¨vswKs Qwo‡q †`qvi Shariah Supervisory Committee of the Bank, Islamic banking
wm×všÍ †gvZv‡eK evsjv‡`k e¨vs‡Ki Aby‡gv`b mv‡c‡ÿ 2019 mv‡j 6wU kvLvq window has been launched in another 6 branches in 2019
and 47 branches in 2020 with the approval of Bangladesh
Ges 2020 Av‡iv 47wU kvLvq G Kvh©µg Pvjy Kiv nq| eZ©gv‡b e¨vs‡Ki 58wU Bank. At present, 58 Islamic windows are running in Sonali
kvLvq Bmjvgx e¨vswKs Kvh©µg cwiPvwjZ n‡”Q| Bank Limited.
†µwWU †iwUs Credit Rating

evsjv‡`k e¨vs‡Ki eva¨Zvg~jK Pvwn`v wn‡m‡e †mvbvjx e¨vsK wjwg‡UW Gi As per Bangladesh Bank’s mandatory requirement, the credit
†µwWU †iwUs Kvh©vw` †µwWU †iwUs Bbdi‡gkb mvwf©‡mm wjwg‡UW Øviv m¤úbœ rating of SBL was done by the Credit Rating Information and
Kiv n‡q‡Q| me©‡kl 31 wW‡m¤î 2020 ZvwiL wfwËK e¨vs‡Ki wbixwÿZ Services Limited (CRISL) on the audited Balance Sheet of 31
Avw_©K weeiYxmg~n I Ab¨vb¨ Z‡_ï wfwË‡Z GB †iwUs m¤úbœ Kiv n‡q‡Q| December, 2020 and other relevant information. The rating
agency awarded the following ratings:
DwjøwLZ †iwUs G‡RwÝ KZ…©K wb‡¤œv³ †iwUs cÖ`vb Kiv n‡q‡Q t
A‡±vei 2022 ch©šÍ b‡f¤î 2021 ch©šÍ Upto October Upto November
ch©‡eÿb †iwUs Surveillance 2022 2021
`xN© †gqv` ¯^í †gqv` `xN© †gqv` ¯^í †gqv` Rating Long Short Long Short
miKvwi c„ô‡cvlK Term Term Term Term
AAA ST-1 AAA ST-1 As Government
e¨vsK wnmv‡e AAA ST-1 AAA ST-1
Supported Bank
cÖvB‡fU Kgvwk©qvj
A+ ST-2 A ST-2 As Private
e¨vsK wnmv‡e Commercial Bank
A+ ST-2 A ST-2
Ae¯’v w¯’wZkxj w¯’wZkxj Outlook Stable Stable
cl©` Ges Ab¨vb¨ KwgwUi mfvmg~n Board and Other Committee Meetings
A total of 51 Board meetings of the Bank were held during
2021 mv‡j e¨vs‡Ki cwiPvjbv cl©‡ì †gvU 51wU cl©` mfv AbywôZ n‡q‡Q|
the year 2021. Besides, 09 meetings of Board Executive
GQvov, 2021 mv‡j cwiPvjbv cl©‡ì wbe©vnx KwgwUi 09wU mfv, cl©` wbixÿv Committee, 11 meetings of Board Audit Committee, 07
KwgwUi 11wU mfv, cl©` SuzwK eë¯’vcbv KwgwUi 07wU mfv Ges kixqvn meetings of Board Risk Management Committee and 03
meetings of Shariah Supervisory Committee were held
mycvifvBRix KwgwUi 03wU mfv AbywôZ n‡q‡Q|
during the year under review.
2021 mv‡j e¨vs‡Ki cÖavb cÖavb Kvh©µgmg~n BANK’S MAIN ACTIVITIES DURING 2021
ev‡RU-2021 Budget 2021
e¨vs‡Ki cwiPvjbv cl©` KZ…©K 2021 mv‡ji evwl©K ev‡RU (g~jabx ev‡RU I The Bank’s ‘Annual Budget’ comprising capital budget and
revenue budget for the year 2021 was approved by the Board
ivR¯^ ev‡RU) Aby‡gvw`Z nq| ivR¯^ I g~jabx ev‡R‡Ui Aax‡b †gvU ev‡RU of Directors. The budget provision vis-a-vis the actual out-
eivÏ I cÖK…Z AR©b wb‡¤œ Dc¯’vcb Kiv n‡jv t turn under Capital and Revenue heads are shown below:
Revenue and Capital Budget along with actual
ivR¯^ I g~jab ev‡R‡Ui cÖK…Z ZzjbvgyjK wPÎ performance
(wgwjqb UvKvq) (Tk. in million)
µt bs ev‡RU LvZ 2021 ev‡RU 2021 cÖK…Z Sl. No Budget Head 2021 Budget 2021 Actual
ivR¯^ Revenue
01. (K) Avq 86358.86 85925.37
86358.86 85925.37 01. (a) Income
(L) e¨q 64782.16 65021.62
64782.16 65021.62 (b) Expenditure
g~jab Capital
5.00 2.98
02. (K) Avq 5.00 2.98 02. (a) Income
(L) e¨q 1400.00 746.30
1400.00 746.30 (b) Expenditure
wkí A_©vqb INDUSTRIAL FINANCE

With a view to achieving economic goals and accelerating
A_©‰bwZK jÿ¨gvÎv AR©b Ges miKvwi bxwZ ev¯Íevq‡bi gva¨‡g wkí Dbœq‡b
the pace of industrial development through implementation
MwZ mÂv‡ii j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW 2021 mv‡j wkí Lv‡Z †gvU of government policies, SBL has sanctioned a total of Tk.
6,596.50 million for term and working capital loans in the
6,596.50 wgwjqb UvKv †gqv`x I PjwZ g~jab FY gÄyi K‡i‡Q| bZzb wkí
year 2021. The loans were provided for establishment
¯’vcb Ges we`¨gvb wkí‡K m¤úªmvi‡Yi j‡ÿ¨ Gme A_©vqb Kiv nq| wkí cÖKí of new industrial units and also for expansion (BMRE) of
Annual Report 2021

A_©vqb wefv‡Mi gva¨‡g mve©ÿwYKfv‡e wjR dvBbvwÝsmn Ab¨vb¨ FY weZiY existing potential units to expand the industrial base in
the country. Credit facilities/disbursement activities under
cÖwµqv cwiPvjbv Kiv nq| evsjv‡`‡k ¯’vbxqfv‡e ¯^Y© cwi‡kvavbvMvi wbg©v‡bi
Industrial Project Financing Division is being continuously
j‡ÿ¨ emyÜiv †Mvì widvBbvix wjt †K wmwÛ‡Kkb eë¯’vq 10,000.00 wgwjqb carried out through various Industrial Credit Products/
programs including Lease Financing. The Bank sanctioned
UvKv cÖKí FY gÄyix †`qv nq| Gfv‡e e¨vsK DwjøwLZ FY gÄy‡ii gva¨‡g
a syndicate loan of Tk. 10,000.00 million to Basundhara
2021 mv‡j D‡jøL‡hvM¨ msL¨K †jv‡Ki Kg©ms¯’v‡bi my‡hvM m„wó K‡i‡Q| wkí Gold Refinery Ltd. for refining gold locally in Bangladesh.
The Bank has thus created employment opportunities by
A_©vq‡bi G mKj Kvh©µg †`‡ki wRwWwc cÖe„w×‡Z D‡jøL‡hvM¨ f‚wgKv ivL‡e|
sanctioning the above loans to various industrial units in the
wb‡¤œ mviwYi gva¨‡g 31 wW‡m¤î 2021 ZvwiL wfwËK e¨vs‡Ki wkí A_©vqb year 2020. These financing activities will contribute towards
GDP growth. Table below shows the status of industrial
wPÎ Dc¯’vcb Kiv n‡jv t
financing by the Bank as on 31 December, 2021:
Av`v‡qi Nature of No.of Amount Amount

µtbs F‡Yi cÖK„wZ msL¨v gÄyixi cwigvY F‡Yi w¯’wZ Sl Outstanding
cwigvY Loan units Sanctioned Recovered
e„nr I Large &
1 4 11683.50 907.60 33252.40 1 4 11683.50 907.60 33252.40
gvSvix Medium
Small &
2 ÿz`ª I KzwUi - - 2.50 1097.20 2 - - 2.50 1097.20
Cottage
wk‡í PjwZ Working
3 3 285.00 740.00 41983.50 3 Capital to 3 285.00 740.00 41983.50
g~jab
Ind.
†gvU 7 11968.50 1650.10 95425.80
Total 7 11968.50 1650.10 95425.80
Rangpur Chemical Industries Ltd. Financed by SBL Pran Agro Financed by SBL.
2021 mv‡j GmGgB A_©vqb Kg©m¤úv`b Performance in SME Finance 2021

According to Bangladesh Bank guidelines, Sonali Bank Limited
evsjv‡`k e¨vs‡Ki bxwZgvjv Abymv‡i AbybœZ Ges cÖvwšÍK Rb‡Mvwôi `vwi`ª
emphasizes on SME financing for eliminating poverty by
we‡gvP‡b †mvbvjx e¨vsK wjwg‡UW GmGgB A_©vq‡b we‡kl ¸iæZ¡ w`‡q _v‡K| increasing SME loan flow at economically underdeveloped
AMÖvwaKvicÖvß G FY bxwZgvjvq bvix I myweav ewÂZ D‡`¨v³v‡ì Av_©- areas and to marginal people. Setting up priority based SME
credit policy for women and underprivilaged entrepreneurs,
mvgvwRK Dbœq‡b e¨vsK KvR K‡i hv‡”Q| e¨vsK wewfbœfv‡e Drcv`bKvix‡ì, the Bank has been working for the improvement of their
eëmvqx †Mvôx, †mev cÖ`vbKvix cªwZôvb‡K GmGgB Lv‡Z †gqv`x I PjwZ socio-economic condition. The Bank extended term loans
and working capital to different producers, business people
g~jab FY cÖ`vb K‡i _v‡K| and service providers under this sector.
1) †eKvi hyeK Ges A_©‰bwZKfv‡e AbybœZ GjvKvq FY cÖevn e„w×i gva¨‡g 1) A project on “One Branch One Month One new
`vwi`ª `~ixKi‡Yi j‡ÿ¨ 2014 mvj †_‡K ÒGKwU kvLv GKwU gvm GKwU bZzb Entrepreneur’’ has been launched since 2014 for eliminating
poverty by increasing loan flow to unemployed people and
D‡`¨v³v Kg©m~wPÓ Pvjy Kiv n‡q‡Q| GB Kg©m~wPi AvIZvq 2021 mvj ch©šÍ
economically underdeveloped areas. Under this project, Tk.
†gvU 86,294 Rb GmGgB D‡`¨v³vi wecix‡Z wmGgGmGgB Lv‡Z me©‡gvU 38,101.70 million has been disbursed in CMSME to a total of
38,101.70 wgwjqb UvKv FY weZiY Kiv n‡q‡Q| 86,294 SME entrepreneurs till 2021.
68
DIRECTORS' REPORT
2) Ò†mvbvjx Av‡jvÓ cÖK‡íi AvIZvq MÖxb e¨vswKs (†mvjvi GbvwR© Ges ev‡qv 2) A total of Tk. 55.90 million has been disbursed to the
M¨vm cø¨v›U) Lv‡Z G ch©šÍ 1,536 Rb MÖvn‡Ki AbyK~‡j e¨vsK me©‡gvU cÖvq green sectors (solar energy and bio-gas plant) under “Sonali
55.90 wgwjqb UvKv weZiY K‡i‡Q| Alo” project and total number of clients has stood at 1,536.
3) e¨vs‡K Òbvix D‡`¨v³v Dbœqb BDwbUÕÕ ¯’vcb Kiv n‡q‡Q Ges bvix D‡`¨v³v‡ì 3) ’’Women Entrepreneurs Development Desk’’ has been
established in the bank and Brochure ’’Nipuna’’ and ’’SME
Rb¨ GmGgB F‡Yi ‰ewkó¨ I my‡hvM myweav e¨vcKfv‡e cÖPv‡ii j‡ÿ¨ eªæwkDi
Loan’’ is being distributed to the women entrepreneurs to
ÒwbcybvÕÕ Ges ÒGmGgB FYÕÕ gy`ªY K‡i gvV ch©v‡q weZiY Kiv n‡”Q| ïaygvÎ inform the facilities of the scheme. In this project, the Bank
2021 mv‡j G Lv‡Z weZiYK…Z F‡Yi cwigvY 744.40 wgwjqb UvKv| has disbursed Tk. 744.40 million in 2021.
4) GQvov K¬v÷vi m„wói gva¨‡g 2021 mv‡j 23 Rb FYMÖnxZvi AbyK~‡j cÖvq 4) Moreover, Tk. 4.00 million has been disbursed to 23
4.00 wgwjqb UvKv weZiY Kiv n‡q‡Q| clients in ‘’Cluster’’ financing of the Bank in 2021.
5) wW‡m¤î 2021 ch©šÍ GmGgB F‡Yi cwigvY ùvwo‡q‡Q 78,623.20 wgwjqb 5) Total outstanding volume of SME credit has stood at Tk.
78,623.20 million till 2021 which is 11.38% of total loan of
hv e¨vs‡Ki †gvU F‡Yi 11.38%| mvgwMªKfv‡e evsjv‡`k e¨vs‡Ki wb‡`©kvejx the bank. Overall SME activities will be geared up according
Abyhvqx fwel¨‡Z G e¨vs‡Ki GmGgB Kvh©µg Av‡iv †eMevb n‡e| to Bangladesh Bank’s guideline.
K…wl/cjøx FY Agricultural / Rural Credit

eZ©gv‡b G e¨vs‡K 8 wU K…wl/cjøx FY cÖKí Pvjy Av‡Q †hgb -we‡kl FY, Cÿz At present, 8 credit programs namely Special Agricultural
Credit (SACP), Sugarcane Cultivation Credit, Pond Fisheries
Pvl FY, cyKz‡i grm¨ Pvl FY, we‡kl wewb‡qvM, K…wl FY, kl¨wenxb Addvwg©s Credit, Special Investment, Farming Credit, Non-crop Off-
farming Credit, Social Forestry Credit and Refinance scheme
FY, mvgwRK ebvqb FY, `y» Drcv`b Ges K…wÎg cªRbb cybtA_©vqb FY| for Milk Production and Artificial Insemination, are being run
G¸‡jvi g~j jÿ¨ n‡jv K…wl Drcv`b e„w× Kiv, Kg©ms¯’v‡bi my‡hvM m„wó Kiv by the Bank with a view to augmenting agricultural output,
creating employment opportunities and generating income
Ges MÖvgxY Rb‡Mvwôi DcvR©b e„w× Kiv| G e¨vsK K…wlR Ges AK…wlR Lv‡Z of the rural people. SBL intensified its efforts to extend credit
facilities to all sections of rural population under those
FY cÖ`vb Kvh©µg Av‡iv †Rvi`vi K‡i‡Q| evsjv‡`k e¨vs‡Ki wb‡`©kbv Abyhvqx
various rural credit programs pertaining to agricultural and
†mvbvjx e¨vsK wjwg‡UW K…wl/cjøx F‡Y 4% †_‡K 10% mij my‡` FY weZiY off-farming activities. As per Bangladesh Bank’s instruction,
Sonali Bank Limited has been providing Agricultural/Rural
K‡i _v‡K| ZvQvov Wvj, ˆZjexR, gmjv, fzÆv Pv‡li Rb¨ K…lK‡ì‡K Ges Credit ranging from 4% to 10% with simple interest rate.
Loans are being disbursed among the rural farmers for
`y» Drcv`b I K…wÎg cªRbb cybtA_©vq‡bi †ÿ‡Î 4% †_‡K 5% my‡` FY
cultivation of pulses, oil seed, spices and maize at 4% and at
weZiY Kiv nq| Dciš‘, e¨vsKwU bZzb GKwU FY Kg©m~Px Pvjy K‡i‡Q, hvi 5% interest rate for Refinance scheme for Milk Production
and Artificial Insemination. Moreover, the Bank has
bvg †`qv n‡q‡Q ÔAv¤ªK~Ä Dbœqb FY Kg©m~PxÕ hv 7wU †Rjvq-ivRkvnx, bIMv, launched a new loan program named ‘Amrokunju Unnayan
bv‡Uvi, PuvcvBbeveMÄ, VvKziMuvI, w`bvRcyi Ges mvZÿxiv AÂ‡j Av‡gi Rin Karmasuchi’ in the seven districts such as Rajshahi,
Naogaon, Natore, Chapainawabganj, Thakurgaon, Dinajpur
djb e„w×i Rb¨ weZiY Kiv n‡”Q| 31 wW‡m¤î 2021 wfwËK K…wl/cjøx FY and Satkhira to increase the production of mango in our
country. The total outstanding of agricultural loan stood at
Lv‡Z F‡Yi w¯’wZ ùvwo‡q‡Q 54,914.60 wgwjqb UvKv| Tk. 54,914.60 million as on 31 December, 2021.
ÿy`ª FY Micro Credit

The role of micro-credit is widely acclaimed as an effective
`vwi`ª we‡gvPb, AvZ¥Kg©ms¯’vb m„wó I MÖvgxY Av_©-mvgvwRK Dbœq‡b ÿy`ª
tool for poverty alleviation, self-employment generation
F‡Yi f‚wgKv wekê¨vcx ¯^xK…Z I cÖkswmZ| Kv‡RB e¨vsK ÿz`ª FY Kvh©µg‡K and rural economic development. The Bank has, therefore,
Av‡iv MwZkxj I Kvh©Kifv‡e cwiPvjbvi j‡ÿ¨ me©vZ¡K cÖ‡Póv Pvwj‡q hv‡”Q| been trying its best to provide funding support to this sector.
At present, various projects/ programs aimed at alleviating
eZ©gv‡b `vwi`ª `~ixKi‡Y e¨vs‡Ki wewea ÿz`ª FY Kg©m~wP i‡q‡Q| D³ Kg©m~wPi poverty are being run by the Bank. These programs
g‡a¨ Av‡Q e¨vsK-GbwRI †mZzeÜ‡b e¨vcK FY Kg©m~wP, cÖwZeÜx‡ì Rb¨ include among others Bank-NGO Linkage Wholesale
FY Kg©m~wP, ¯^wbf©i evsjv‡`k, weAviwWwe-BDwmwmG Gi wewfbœ FY, 152wU Credit Program, Loan Program for the Disabled, Swanirvar
Bangladesh, different types of credit through BRDB-UCCA,
Dc‡Rjvq GwWwei A_©vq‡b MÖvgxY DcRxweKv cÖKí, `vwi`ª we‡gvPb mnvqZv ADB financed Rural Livelihood Project (RLP) in 152 Upazilas,
FY Kg©m~wP, MÖvgxY ÿz`ª eëmv Ges ÿz`ª K…wl FY cÖKí, BARD (Kzwgjøv), Daridra Bimochan Shahayata Rin Karmasuchi, Rural Small
†mvbvjx e¨vsK-AviwWG (e¸ov) BZ¨vw`| `vwi`ª we‡gvPb Ges †`‡ki Av_©- Business and Small Farming Loan Scheme, BARD (Cumilla)-
Sonali Bank & RDA (Bogra) etc. These were introduced by
mvgvwRK Dbœq‡bi Rb¨ A_© mieivnKi‡Yi j‡ÿ¨ e¨vsK DwjøwLZ Kg©mw~Pmg~n the Bank to channelize the financial resources for poverty
Pvjy K‡i‡Q| alleviation and socio economic development of the country.
Credit for Urban Women Micro Enterprize development Under the coverage of the project titled “ Credit for Urban
Women Micro Enterprise Development (CUMED)” project,
(CUMED) wk‡ivbv‡g G e¨vs‡Ki 92wU kvLvq hvi g‡a¨ mKj wefvM I †Rjvi
Annual Report 2021

cÖavb kvLvmg~n, XvKv kn‡ii Af¨šÍ‡ii g‡bvbxZ 26wU kvLv, PÆMÖvg kn‡ii 92 branches of the country including all principal branches
of the divisional and district headquarters, 26 selected
Af¨šÍ‡ii 2wU kvLv, ‡gŠjfxevRvi †Rjvi 3wU kvLvq webv Rvgvb‡Z 0.50
branches are in Dhaka city, 2 branches in Chittagong city, 3
wgwjqb UvKv ch©šÍ FY ‡`qv n‡”Q| branches in Moulvibazar are disbursing loans up to Tk. 0.50
million without any collateral.
Micro Credit in Bangladesh Micro Credit in Bangladesh
GQvovI mviv‡`‡k ÿy`ª D‡`¨v³v Dbœqb FY Kg©m~wP ÔD‡b¥lÕ Pvjy Kiv n‡q‡Q| Besides, the Micro Entrepreneur Development Credit
Program “Unmesh” has been rolled out all over the country.
Z`ycwi MÖvgxY bvix‡ì‡K ¯^vej¤^x K‡i Zzj‡Z ÔRv‡Mv bvix MÖvgxY FYÓ bv‡g Moreover, in order to make the rural women self-reliant,
the Bank has introduced a new loan program named “Jago
e¨vs‡K bZzb GKwU FY Kg©m~Px Pvjy Kiv n‡q‡Q| e¨vsKwU mviv‡`‡k 250wU Nari Grameen Rin” through 250 rural branches all over the
MÖvgxY kvLvq 25,000/- UvKv ch©šÍ RvgvbZwenxb FY cÖ`vb Ki‡Q| country with an amount of collateral-free loan up to Tk.
25,000.00.
†mvbvjx e¨vsK wjwg‡UW ÒwidvBbvÝ ¯‹xg di GmGgBwc 10/- UvKv GKvD›U SBL is also disbursing loans in “Refinance Scheme for
SMEF Tk. 10.00 Account Holder” for the farmers and in
†nvìviÕÕ Gi AvIZvq K…lK‡ì Ges ÓAv`k© MÖvg Kg©m~wPÓ Gi AvIZvq `vwi`ª
“Adarsha Gram Karmasuchi” aimed at alleviating poverty at
we‡gvP‡b FY weZiY K‡i Avm‡Q| GB Kg©m~wPi AuvIZvq Mixe †ckvRxwe‡ì a sustainable level. The poor professionals of the rural areas
RvgvbZwenxbfv‡e mnR k‡Z© e¨vsK FY cÖ`vb K‡i _v‡K| 31 wW‡m¤î 2021 are being selected as beneficiaries under this program and
provided collateral-free loan with easy terms and conditions.
ZvwiL wfwËK gvB‡µv †µwWU Lv‡Z †gvU w¯’wZi cwigvY 12,640.00 wgwjqb As on 31 December 2021, micro credit of SBL stood Tk.
UvKv hv 2020 mv‡j wQj 12,210.17 wgwjqb UvKv| 12,640.00 million which was Tk. 12,210.17 million in 2020.
m¤úªwZ ‡mvbvjx e¨vsK wjwg‡UW g~jZ ¯‹zjMvgx QvÎ/ QvÎx‡ì Rb¨ ÔevBmvB‡Kj SBL has recently launched low interest bearing loan program
named “Bicycle Loan Scheme for School Going Students”.
FY Kg©m~wPÕ bv‡g ¯^í my‡ì GKwU FY Kg©m~Px Pvjy K‡i‡Q| ¯’vbxq Kvh©vjq This program has already been circulated in all branches of
Ges K‡c©v‡iU kvLv e¨ZxZ e¨vs‡Ki mKj kvLvq GB FY Kg©m~wP Pvjy Kiv Sonali Bank Limited except Local Office and all corporate
n‡q‡Q| mnR k‡Z© RvgvbZ wenxbfv‡e 15,000/-UvKv ch©šÍ ¯‹zjMvgx Mixe branches. This collateral free newly introduced loan upto
Tk. 15,000.00 is being provided to the poor school going
QvÎ/QvÎx‡ì g‡a¨ GB FY weZiY Kiv n‡”Q| students with easy terms and conditions.
70
DIRECTORS' REPORT
wewb‡qvM Investment Financing

G e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi g¨v‡bR‡g›U wWwfkb wewb‡qvM msµvšÍ The Treasury Management Division (TMD) of the Bank
oversees the investment financing activities. It operates
Kvh©µg †`Lfvj K‡i _v‡K| G wefvM †UªRvwi wej, eÛ, wW‡eÂvi, †kqvi Treasury bill, bond, debenture, share and related transactions.
Ges wewb‡qvM m¤úwK©Z Kvh©vejx cwiPvjbv K‡i _v‡K| †UªRvwi wej I eÛ µq/ The Bank has engaged itself as primary dealer in buying and
selling of treasury bills and bonds. In 2021, the Bank earned
weµ‡qi †ÿ‡Î e¨vsK cÖvBgvwi wWjv‡ii f~wgKv cvjb K‡i _v‡K| e¨vsK G LvZ
Tk. 38,692.73 million which was Tk. 39,996.43 million in
n‡Z 2021 mv‡j 38,692.73 wgwjqb UvKv Avq K‡i‡Q hv c~e©eZ©x eQ‡i wQj the previous year. The total investment of the Bank was Tk.
39,996.43 wgwjqb UvKv| 2021 mvj †k‡l e¨vs‡Ki †gvU wewb‡qv‡Mi cwigvY 688,064.72 million at the end of 2021. Major investments
were made in Treasury Bills, Treasury Bonds, Special Bonds,
`vwo‡q‡Q 688,064.72 wgwjqb UvKv| cÖavb cÖavb wewb‡qvM LvZ n‡jv †UªRvwi
Corporate/Private Bond, Shares and Debentures etc. The
wej, eÛ, wW‡eÂvi, †kqvi BZ¨vw`| 31 wW‡m¤î 2021 wfwËK LvZIqvix sector-wise (Government, Public and Private) summary
(cvewjK Ges cÖvB‡fU) wewb‡qv‡Mi mvi-ms‡ÿc wb‡¤œ Dc¯’vcb Kiv n‡jv t position of investment of the Bank as on 31 December, 2021
is shown in the table below:
31 wW‡m¤î, 2021 wfwËK LvZIqvix wewb‡qvM Sector-wise Investment as on 31 December, 2021
( wgwjqb UvKvq) (Tk. in million)
wk‡ivbvg miKvwi cvewjK cÖvB‡fU me©‡gvU Description Government Public Private Total
evsjv‡`k e¨vsK wej - - - - Bangladesh

- - - -
Bank Bill
†UªRvwi wej 122671.33 - - 122671.33
Treasury Bills 122671.33 - - 122671.33
wifvm© †i‡cv - - 2506.87 2506.87 Reverse Repo - - 2506.87 2506.87
†UªRvwi eÛ 475371.02 - - 475371.02 Treasury Bonds 475371.02 - - 475371.02
Special Bond/
†¯úkvj eÛ/myKzK - - 11228.87 11228.87 - - 11228.87 11228.87
Sukuk
K‡c©v‡iU/cÖvB‡fU eÛ - - 48570.35 48570.35 Corporate/
- - 48570.35 48570.35
Private Bond
cÖvBReÛ - - 86.06 86.06
Prize Bond - - 86.06 86.06
wW‡eÂvi - 5.15 0.70 5.85
Debentures - 5.15 0.70 5.85
†kqvi - 913.42 21073.45 21986.87 Shares - 913.42 21073.45 21986.87
Bmjvgx e¨vswKs Islami Banking

- 150.00 54.56 204.56 - 150.00 54.56 204.56
DB‡Ûv Window
Investment
‰e‡`wkK gy`ªvq
- - 5148.00 5148.00 in Foreign - - 5148.00 5148.00
wewb‡qvM
Currency
‰e‡`wkK kvLv - 198.86 86.08 284.94 Overseas
- 198.86 86.08 284.94
Branches
me©‡gvU 598042.35 1267.43 88754.94 688064.72
Total 598042.35 1267.43 88754.94 688064.72
gvbe m¤ú` Human Capital

¯^vaxbZvi ci MZ 50 eQ‡i G e¨vs‡Ki K‡cv©‡iU ms¯‹…wZ Ggb ch©v‡q ‡cŠu‡Q‡Q Over the last 50 years, the corporate culture at SBL grew
†hLv‡b Kg©KZ©v/ Kg©Pvixiv ¯^vaxbfv‡e KvR K‡i wb‡Ri, cÖwZôv‡bi Ges as such that the employees have ample opportunities to
take initiative and responsibilities to unleash their hidden
mgv‡Ri Dbœq‡b f~wgKv ivL‡Q| e¨vs‡Ki gvbe m¤ú` Dbœqb wefvM Kg©KZ©v‡ì potential to maximize benefits for themselves and for the
e¨vswKs wel‡q me©‡kl AMÖMwZ Ges wbqgbxwZ m¤ú‡K© mg¨K Ávb/cÖwkÿY society. The HR Division of SBL takes necessary initiatives
†`qvi cÖ‡qvRbxq c`‡ÿc wb‡”Q| Gi d‡j e¨vs‡Ki Kg©KZ©v-Kg©Pvixiv mn‡RB to impart latest developments and banking rules and
Annual Report 2021

MÖvnK‡ì Pvwn`v eyS‡Z mÿg nb Ges †m †gvZv‡eK `ªæZ Ges `ÿZvi mv‡_ regulations to the employees so that they can understand
‡mev cÖ`vb Ki‡Z mg_© nq| e¨vs‡Ki gvbe m¤ú`‡K Av‡iv Kvh©Kix Kivi Rb¨ the customer’s demands and deliver prompt and efficient
services. SBL has taken initiatives of converting human
†mvbvjx e¨vsK wewfbœ cÖwkÿ‡Yi D‡`¨vM MÖnY K‡i‡Q| GiB Ask wn‡m‡e 2021 resources into productive ones and with this end in view, it
mv‡j 4,891 Rb Kg©KZ©v- Kg©Pvix‡K wewfbœ cÖKv‡ii cÖwkÿY †`qv n‡q‡Q| has trained up as many as 4,891 employees in 2021. As of
31 wW‡m¤î, 2021 wfwËK e¨vs‡Ki †jvKe‡ji msL¨v 18,200 Rb hvi g‡a¨ December 2021, 18,200 employees of different layers are
working in the Bank among which officers and staffs are
16,288 Rb Kg©KZ©v Ges 1,912 Rb Kg©Pvix| 16,288 and 1,912 respectively.
MÖvnK †mev Customer Care

†mvbvjx e¨vsK wjwg‡UW Zvi MÖvnK‡ì KvQ †_‡K me©wb¤œ †mev g~j¨ wb‡q _v‡K| SBL takes minimum service charges from its customers.
Front desk, women entrepreneurs desk, customer complaint
DbœZ MÖvnK †mevi Rb¨ d«›U †W¯‹, bvix D‡`¨v³v †W¯‹, MÖvnK Awf‡hvM e·,
box and customer care cell have been established to ensure
MÖvnK †mev †mj †Lvjv n‡q‡Q| avwg©K gymwjg‡ì µgea©gvb Pvwn`v c~i‡Yi better customer services. To attract the increasing demand
j‡ÿ¨ e¨vsK Zvi 58wU kvLvq Bmjvgx e¨vswKs DB‡Ûv Pvjy K‡i‡Q| DbœZ of the religious Muslims, SBL has introduced Islamic banking
window in 58(Fifty Eight) branches. It is digitizing its business
MÖvnK †mev †`qvi Rb¨ Ges e¨vswKs Kvh©µg MwZkxj Ges `ÿZvi mv‡_
to provide improved services to its customers and to make
m¤úv`‡bi Rb¨ mKj Kvh©µg wWwRUvj c×wZ‡Z iƒcvšÍi Kiv n‡q‡Q| its operations more prompt and efficient.
mvgvwRK wbivcËv †e÷bx Kg©m~wP‡Z AskMÖnY Participation in Social Safety Net Programs
mvaviY e¨vswKs †mev †hgb wkí A_©vqb, Avg`vwb-ißvwb A_©vqb, mvaviY In addition to providing conventional banking services such
as industry finance, import and export finance, general credit,
FY,cjøx FY, ‰e‡`wkK gy`ªv Avbqb, `xN© †gqv`x FY BZ¨vwì cvkvcvwk
rural credit, remittance, long term loans, the Bank is assisting
†mvbvjx e¨vsK wjwg‡UW 51wU mvgvwRK wbivcËv †e÷bx Kg©m~wP‡Z mnvqZv in implementing 51 safety net programs which in turn are
Ki‡Q †h¸‡jvi mv‡_ miKv‡ii wKQz we‡klvwqZ cÖK‡íi mswkøóZv Av‡Q| we¯Í…Z affiliated with some specialized projects of the Government.
Through its widest range of rural branches, SBL is disbursing
MÖvgxY kvLvi gva¨‡g G e¨vsK cÖv_wgK Ges D”P gva¨wgK ¯Í‡i Aa¨vqbiZ QvÎ/ stipends to the students studing at primary and secondery
QvÎx‡ì g‡a¨ wkÿv e„wË, mvgwiK †cbkb, eq¯‹ fvZv, weaev fvZv, `y¯’ gwnjv level, army pension, old age allowance, widow allowance,
destitute woman allowance, salaries and allowances
fvZv, ‡emiKvix ¯‹zj, K‡jR, gv`ªvmvmn †emiKvix †iwR÷ªvW© cÖv_wgK ¯‹z‡ji
for non-government schools, colleges, madrashas
wkÿK‡ì †eZb-fvZv cÖ`vb K‡i _v‡K| Gi cvkvcvwk wewfbœ cÖKvi BDwUwjwU and non-government registered primary schools as
wej †hgb †Uwj‡dvb wej, M¨vm wej, ‡Wmv/‡Wm‡Kv/ AviBwe Gi we`ÿr wej, well as collecting various utility bills like telephone bill,
gas bill, electricity bills of DESA, DESCO, REB and WASA.
Iqvmv wej msMÖn K‡i _v‡K| e¨vsK eZ©gv‡b 30,46,690wU mvgvwRK wbivcËv
There are 3,046,690 accounts under Social Safety Net
†e÷bx wnmve, 2,71,200wU gyw³‡hv×v wnmve Ges 2,076,302wU Ab¨vb¨ program, 271,200 accounts for distributing freedom fighters’
wnmve Gi gva¨‡g wewfbœ cÖKvi fvZv cÖ`vb K‡i| e¨vs‡Ki g~j D‡Ïk¨ n‡jv allowance and 2,076,302 accounts for others. The main
objective of SBL is to take all types of banking services to the
e¨vswKs †mev‡K MÖvn‡Ki †`vi †Mvovq †cŠu‡Q †`qv| GQvov e¨vsKwU wewfbœ cÖKvi
door-steps of the people. The Bank participates in various
Av_©-mvgvwRK Ges Dbœqbg~jK Kg©Kv‡Û AskMÖn‡Yi cvkvcvwk miKvi KZ…©K socio-economic activities and development programs as
M„nxZ wewfbœ cÖKí ev¯Íevq‡b mnvqZv Ki‡Q| iv‡óªi me©e„nr evwYwR¨K e¨vsK well as helps in implementing various plans and programs
taken up by the Government. As the largest state owned
wn‡m‡e ‡mvbvjx e¨vsK wjwg‡UW Gi `vwqZ¡ n‡jv †mev w`‡q Ges †ckv`vix commercial bank, Sonali Bank Limited has the responsibility
g‡bvfve wb‡q KvR K‡i †`‡ki g‡a¨ GKwU †bZ…Z¡¯’vbxq jvfRbK cÖwZôvb to run its operations as a service-oriented and professionally
wn‡m‡e KvR Kiv| managed leading profitable organization in the country.
cuywRevRvi Kvh©µg Capital Market Operation

†mvbvjx e¨vs‡Ki GKwU mvewmwWqvwi †Kv¤úvwb wn‡m‡e †mvbvjx Bb‡f÷‡g›U Through Sonali Investment Limited (SIL), the subsidiary
company, SBL has a significant presence in the capital
wjwg‡UW (SIL) evsjv‡`‡ki cuywRevRv‡i ¸iæZ¡c~Y© f~wgKv cvjb Ki‡Q| SIL market of Bangladesh. SIL ensures high quality services to
AvB‡bi cÖwZ AbyMZ †_‡K †ckv`vwi AvPiY Øviv g~jëvb MÖvnK‡ì DbœZgv‡bi our valuable clients by its professionalism while being fully
compliant with the laws of the land. It attaches priority
†mev cÖ`vb Ki‡Q| ‡Kv¤úvwbwU MÖvnK ¯^v_© Ges myweav‡K AMÖvwaKvi †`qvi
to investors’ interest, their benefit and always intends to
cvkvcvwk evRvi m¤úwK©Z SuzwK †_‡K MÖvnK‡ì myiÿv †`q| Gi d‡j cÖwZôvbwU protect investors against market related risks. This is why
MÖvnK‡ì wek¦¯Í Askx`vi n‡Z mÿg n‡q‡Q| Gi eZ©gvb Kvh©µ‡gi g‡a¨ SIL has become a trusted partner of investors. The current
72
DIRECTORS' REPORT
Bmy¨ g¨v‡bR‡g›U, †cvU©dwjI g¨v‡bR‡g›U, AvÛviivBwUs, g~jab mnvqZv, activities of the company include Issue Management,
cyuwRevRvi mswkøó Ab¨vb¨ †mev D‡jøL‡hvM¨| eZ©gv‡b GwU cÖavb Kvh©vjqmn Portfolio Management, Underwriting, Equity Participation
and ancillary services related to the capital market. At
2 wU kvLv Øviv ˆ`bw›`b Kvh©µg cwiPvjbv Ki‡Q| cÖwZôvbwU G ch©šÍ gvwR©b present, Sonali Investment Limited runs its day to day
FY wn‡m‡e 2,169.50 wgwjqb UvKv weZi‡Yi cvkvcvwk cuywRevRv‡i wbR¯^ operations by its two branches along with Head Office. As
a part of its active role in the capital market, till date SIL has
†cvU©dwjI‡Z 1,666.44 wgwjqb UvKv wewb‡qvM K‡i‡Q| disbursed Tk. 2,169.50 million as margin loan and invested
Tk. 1,666.44 million to its own portfolio.
SuzwK eë¯’vcbv Risk Management
e¨vs‡Ki SuzwK eë¯’vcbv wefvM mKj cÖKvi SuzwK m¤úwK©Z KvR wPwýZ, wePvi- The Risk Management Division of the Bank identifies analyses,
we‡kølY, g~j¨vqb Ges Z`viKx K‡i _v‡K| GKB mv‡_ evsjv‡`k e¨vs‡Ki evaluates and supervises all risk related work including
control/mitigation measure of risks as per guidelines and
wb‡`©kbv Abyhvqx cwiPvjbv cl©‡ì Aby‡gv`bµ‡g GMy‡jv wbqš¿Y Ges mgvav‡bi direction of Bangladesh Bank with the approval of the
Dcvq †ei K‡i _v‡K| m¤úªwZ evsjv‡`k e¨vs‡Ki wb‡`©kbv ‡gvZv‡eK mvwe©K Board of Directors. Recently, a high powered ‘Board Risk
Management Committee’ comprising five members of the
SuzwK eë¯’vcbv Kvh©µg kw³kvjxKi‡Yi D‡Ï‡k¨ cwiPvjbv cl©‡ì 5 Rb Board of Directors has been formed as per the directives
m`m¨ wb‡q cwiPvjbv cl©‡ì SuzwK eë¯’vcbv KwgwU MVb Kiv n‡q‡Q| of Bangladesh Bank to strengthen overall risk management
activities.
¸iæZ¡c~Y© SuzwKi wewfbœ ‡ÿ‡Î m‡šÍvlRbK †iwUs AR©‡bi j‡ÿ¨ cÖavb Kvh©vj‡qi Risk Management Division has introduced Risk Management
SuzwK eë¯’vcbv wefvM KZ…©K GKwU SuzwK eë¯’vcbv †PKwj÷ (RMC) Pvjy Kiv Checklist (RMC) for attaining ‘satisfactory’ rating on various
segments of core risks through proper implementation of
n‡q‡Q| ¸iæZ¡c~Y© SuzwK eë¯’vcbv bxwZgvjv e¨vs‡Ki mKj kvLv/ Kvh©vj‡q
Core Risk Management Guidelines, which is being maintained
msiÿY Kiv nq| SuzwK eë¯’vcbv wefvM KZ…©K Aa©-evwl©K wfwË‡Z Òmgwš^Z at all offices/branches of the Bank. Risk Management Division
SuzwK eë¯’vcbv cÖwZ‡e`bÓ Ges gvwmK wfwË‡Z ÒSuzwK eë¯’vcbv cÖwZ‡e`bÓ also prepares half yearly “Comprehensive Risk Management
cÖ¯‘Z Kiv nq| Gi gva¨‡g e¨vs‡Ki m¤ú`, `vq, Zvij¨ Ae¯’v I Av‡qi Report (CRMR)” and monthly “Risk Management Report
(RMR)” to identify analyzes and mitigates the risks relating
mv‡_ m¤úwK©Z SuzwKMy‡jv wPwýZ Kiv, we‡kølY Kiv Ges mgvavb Kiv nq|
to bank’s assets, liabilities, liquidity, earnings and submit
DwjøwLZ cÖwZ‡e`bmg~n e¨vs‡Ki SuzwK eë¯’vcbv KwgwU‡Z Dc¯’vcb Kiv nq it to the Risk Management Committee of the Bank as
Ges evsjv‡`k e¨vs‡KI †cÖiY Kiv nq| D³ wefvM KZ…©K wbqwgZfv‡e †÷ªm well as to Bangladesh Bank for its regulatory compliance.
The division conducts periodic ‘Stress Testing’ to assess
†Uw÷s Kiv nq hvi gva¨‡g we‡kl SuzwK Dcv`vb Ges ch©vqmg~n we‡ePbvq wb‡q
Capital to Risk-weighted Asset Ratio (CRAR) of the Bank
wi¯‹ I‡q‡UW m¤ú‡ì wecix‡Z g~ja‡bi ch©vßZv cwigvc Kiv nq| evsjv‡`k considering specific shock factors and shock levels. “Core
e¨vs‡Ki mv‡_ G e¨vs‡Ki ¯^vÿwiZ MOU Gi Av‡jv‡K Ò¸iæZ¡c~Y© SuzwK Risk Management Guidelines Implementation Policy” has
eë¯’vcbv wb‡`©kvejx ev¯Íevqb bxwZÓ Pvjy Kiv n‡q‡Q| SuzwK eë¯’vcbv wefvM been introduced in line with MOU signed with Bangladesh
Bank. The Risk Management Division also reviews position
KZ…©K †µwWU †iwUs, FY I AMÖx‡gi Abycv‡Zi A¯^vfvweK cwieZ©b, †kÖYxK…Z
of credit rating, abnormal change in AD ratio, recovery
FY Av`vq Ae¯’v, e¨vs‡Ki mv‡_ m¤úwK©Z SuzwK Ges Af¨šÍixY wbixÿvi wbR¯^ position, self-assessment of internal control and other risk
g~j¨vqb I ch©v‡jvPbv Kiv nq| factors associated with banking activities.
B‡Zvg‡a¨, mycvifvBwRs wiwfD cÖ‡mm (SRP) Gi AvIZvq 2018, 2019 Meanwhile, Internal Capital Adequacy Assessment Process
(ICAAP) and related Supplementary Document under
I 2020 mvjwfwËK B›Uvibvj K¨vwcUvj GwW‡Kv‡qwm Av‡mm‡g›U cÖ‡mm
Supervisory Review Process (SRP) for the year 2018, 2019
(ICAAP) Ges Avbymw½K `wjjvw` cÖYqbc~e©K cÖwZ‡e`bmg~n evsjv‡`k e¨vs‡K and 2020 have been prepared and submitted to Bangladesh
†cÖiY Kiv n‡q‡Q Ges 2021 mv‡ji ICAAP Gi KvR cªwµqvaxb i‡q‡Q| Bank. Besides, ICAAP for the year 2021 is also in underway.
SuywK wfwËK g~jab ch©vßZv eë¯’vcbv Risk based Capital Adequacy Management
evsjv‡`k e¨vs‡Ki wb‡`©kbv †gvZv‡eK 01 Rvbyqvix 2015 ZvwiL n‡Z G e¨vsK In line with Bangladesh Bank guidelines for determining
Minimum Capital Requirement (MCR) and the Capital to Risk-
Basel-III Gi Kvh©µg ïiæ K‡i A`¨vewa Gi wbqg cwicvjb K‡i e¨vs‡Ki
weighted Asset Ratio (CRAR) for banks, Basel III guidelines
Minimum Capital Requirement (MCR) Ges Capital to Risk
have been enforced effective from 01 January 2015. Under
Weighted Asset Ratio (CRAR) Gi cwigvY wbY©q Ki‡Q| Basel-III Basel-III guidelines, the Capital to Risk-weighted Asset Ratio
Annual Report 2021

bxwZgvjv †gvZv‡eK 2021 mv‡j Capital to Risk Weighted Asset (CRAR) at the end of 2021 stood at 10.04 percent compared
Ratio (CRAR) Gi cwigvY 10.04% †Z `vwo‡q‡Q hv Zyjbvg~jKfv‡e c~e©eZ©x to 10.02 percent of the previous year against regulatory
requirement of minimum 10.0 percent. Core capital (Tier 1
erm‡i wQj 10.02% †hLv‡b Dfq‡ÿ‡ÎB wbqš¿Yg~jK b~¨bZg cÖ‡qvRb wQj
capital) held at Tk. 52,009.01 million being 7.81 percent of
10%| g~L¨ g~jab (Tier 1 Capital) `vwo‡q‡Q 52,009.01 wgwjqb UvKv,
total of Risk Weighted Assets (RWA). Supplementary capital
hv †gvU SuywK wfwËK m¤ú` (RWA) Gi 7.81%| m¤úyiK g~jab (Tier 2 (Tier 2 capital) stood at Tk. 14,863.89 million being 2.23
Capital) `vwo‡q‡Q 14,863.89 wgwjqb UvKv, hv †gvU RWA Gi 2.23%| percent of RWA.
we¯ÍvwiZfv‡e SuywK wfwËK m¤ú` (RWA), b~¨bZg g~jab ch©vßZv (MCR) Ges The details of risk weighted assets, minimum capital
requirement (MCR) and the capital adequacy ratio (CRAR)
g~jab ch©vßZvi AbycvZ (CRAR) wb‡gœ Dc¯’vcb Kiv n‡jv t are depicted below:
Capital Adequacy Ratio* (Tk. in million)
Position as of Change
10.35%
Particulars
2021 2020 (%)
Total risk weighted assets 666270.40 633601.70 5.16%

10.04%
10.10%
10.09%
Tier-1 Capital 52009.01 48674.18 6.85%

10.02%
Tier-2 Capital 14863.89 14826.68 0.25%
Total Capital 66872.90 63500.86 5.31%
Minimum Capital
66627.04 63360.17 5.16%
requirement
Tier-1 capital adequacy ratio 7.81% 7.68% 0.13%
Tier-2 capital adequacy ratio 2.23% 2.34% (0.11%)
Total capital adequacy ratio 10.04% 10.02% 0.02%

2021 2020 2019 2018 2017
Implementation of BASEL- III in Sonali

†mvbvjx e¨vsK wjwg‡UW G e¨v‡mj-3 ev¯Íevqb Bank Limited
A_©‰bwZK g›`v †_‡K D‡Ëvi‡Yi j‡ÿ¨ e¨vswKs †m±‡i Gi SzuwK mnb mÿgZv To improve the banking sectors ability to absorb shocks
arising from financial and economic stress, whatever the
evov‡bvi Rb¨ evsjv‡`k e¨vsK †`‡ki mKj Zdwkwj e¨vsK‡K 1jv Rvbyqvix
sources, thus reducing the risk of spillover from the financial
2015 †_‡K 2019 mvj ch©šÍ av‡c av‡c e¨v‡mj-3 ev¯Íevq‡bi Rb¨ we Avi wc sector to the real economy, Bangladesh Bank instructed all
wW mvK©yjvi bs-18/2014 Gi gva¨‡g wb‡`©kbv cÖ`vb K‡i‡Q| êwk^K wbqwš¿Z I the scheduled banks in Bangladesh through BRPD circuler
no- 18/2014 to implement BASEL-III from 1st January, 2015
ch©‡eÿYg~jK bZzb GB gvbmgyn we‡klfv‡e wb‡¤œ D‡jøwLZ welq ¸‡jvi Dci to 2019 phase by phase. These new global regulatory and
¸iæZ¡ Av‡ivc K‡i‡Q t supervisory standards mainly addressed the following areas:
z Raise the quality level of capital to ensure banks

z mKj Pjgvb I Aemvqb cÖwZôv‡bi g~ja‡bi ¸bMZ gvb evwo‡q are better able to absorb losses on both a going
SzuwK Gov‡bv| concern and a gone concern basis;
z g~jab KvVv‡gvq SzuwK †gvKv‡ejvi mÿgZv evov‡bv| z Increase the risk coverage of the capital framework;
z FY I BKz¨BwU Abycv‡Z SzuwKhy³ g~jab cwigvc Kiv| z Introduce leverage ratio to serve as a backstop to
the risk-based capital measure;
z ch©‡eÿY cÖwµqv ch©v‡jvPbvi Rb¨ bZzb bZzb gvb ˆZix Kiv ( z Raise the standards for the supervisory review
wcjvi-2) Ges process (Piller-II); and
z cÖwZ‡e`b cÖKv‡ki gva¨‡g mKj‡K AeMZ Kiv (wcjvi-3) BZ¨vw`| z Public disclosures (Piller- III) etc.
†mvbvjx e¨vsK wjwg‡UW 1jv Rvbyqvix 2015 mvj †_‡K e¨v‡mj-3 ev¯Íevqb Accordingly Sonali Bank Limited has started BASEL-III
implementation from January, 2015 and Capital to Risk-
ïiæ K‡i‡Q Ges e¨v‡mj-3 Gi wb‡`©kbvi Av‡jv‡K SzuwKhy³ m¤ú` I g~ja‡bi weighted Asset Ratio (CRAR) of the Bank is being submitted
AbycvZ (wm Avi G Avi) evsjv‡`k e¨vs‡K cÖwZ‡e`bvKv‡i †cÖiY Ki‡Q| to Bangladesh Bank as per BASEL- III requirement.
74
DIRECTORS' REPORT
mv¤úªwZK AvgvbZ †cÖvWv±mg~n t Recent Deposit Products

AvgvbZ msMÖ‡ni j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW KZ©„K PvjyK…Z bZzb AvgvbZ To mobilize more deposit, Bank has introduced several
new schemes: (a) Non-resident Deposit Scheme (NRDS) (b)
¯‹xg¸‡jv wb¤œiƒc: (K) bb-‡iwm‡W›U wW‡cvwRU ¯‹xg (L) †mvbvjx e¨vsK †WBwj
Sonali Bank Daily Profit Scheme (SBDPS) (c) School Banking
cÖwdU ¯‹xg (M) ¯‹zj e¨vswKs ¯‹xg (N) wiUvqvi‡g›U †mwfsm ¯‹xg (O) ‡mvbvjx Scheme (SBS) (d) Retirement Savings Scheme (RSS) (e) Sonali
Bank Retirement Savings Scheme (SBRSS) (f) Sonali Bank
e¨vsK wiUvqvi‡g›U †mwfsm ¯‹xg (P) ‡mvbvjx e¨vsK wgwjIwbqvi ¯‹xg (Q)
Millionaire Scheme (SBMS) (g) Triple Benefit Scheme (TBS) (h)
wUªcj †ewbwdU ¯‹xg (R) ‡mvbvjx e¨vsK K…lK †mwfsm ¯‹xg (S) gy`vivev Sonali Bank Krisok Savings Scheme (SBKSS) (i) Mudaraba
Monthly Profit Scheme (MMPS) (j) Al-Wadeeah Current A/c
gvš’wj cÖwdU ¯‹xg (T) Avj-Iqvw`qvn Kv‡i›U GKvD›U (U) gy`vivev †mwfsm
(AWCA) (k) Mudaraba Savings A/c (MSA) (l) Mudaraba Special
GKvD›U (V) gy`vivev †¯úkvj †bvwUk wW‡cvwRU GKvD›U (W) gy`vivev Uvg© Notice Deposit A/c (MSND) (m) Mudaraba Term Deposit A/c
wW‡cvwRU GKvD›U (X) gy`vivev nÀ †mwfsm GKvD›U Ges (Y) gy`vivev †mvbvjx (MTDA) (n) Mudaraba Hajj Saving A/c (MHSA) (o) Mudaraba
Monthly Profit Scheme (MMPS) (p) Mudaraba Sonali Monthly
gvš’wj wW‡cvwRU ¯‹xg| wW‡cvwRU ¯‹xg¸‡jv Pvjy Kivi d‡j e¨vs‡Ki AvgvbZ Deposit Scheme(SMDS) and (q) Sonali Monthly Denmohor
D‡jøL‡hvM¨ cwigv‡Y e„w× †c‡q‡Q| Deposit Scheme(SMDDS). As a result, the deposit has
increased significantly for the last few years.
Analysis of Business Performance and

eëmvwqK Kvh©µg Ges Avw_©K Ae¯’v ch©v‡jvPbv: Financial Position
eëmv I gybvdvi cÖe„w× Positive Business and Profit Growth

SBL with its 1229 branches became successful in mobilizing
wW‡m¤î, 2021 ch©šÍ †mvbvjx e¨vs‡Ki 1229wU kvLvi †gvU AvgvbZ Ges
deposits of Tk. 1,350,815.87 million and given Tk. 690,596.85
FY I AwMÖ‡gi cwigvY `vwo‡q‡Q h_vµ‡g 1,350,815.87 wgwjqb UvKv
million as loans and advances up to 31 December, 2021.
Ges 690,596.85 wgwjqb UvKv| e¨vs‡Ki Avq 2020 mv‡ji 84,779.88 During the year 2021, total income of the Bank increased
wgwjqb UvKv †_‡K 1.35% e„w× †c‡q 85,925.36 wgwjqb UvKvq ùvwo‡q‡Q| by 1.35 percent to Tk. 85,925.36 million which was Tk.
84,779.38 million in 2020. The total expenditure stood at
e¨vs‡Ki e¨q e„w× †c‡q 65,021.62 wgwjqb UvKvq ùvwo‡q‡Q hv c~e©eZ©x
Tk. 65,029.86 million in 2021 showing an increase of 2.80
eQ‡ii 63,252.95 wgwjqb UvKvi Zzjbvq 2.80% †ekx| wbU gybvdv n‡q‡Q
percent as against total expenditure of Tk. 63,252.95 million
3,456.67 wgwjqb UvKv hv 2020 mv‡j wQj 3,234.35 wgwjqb UvKv| of previous year. Net profit after tax stood at Tk. 3,456.67
million in 2020 which was Tk. 3,234.35 million in 2020.
Avq ch©v‡jvPbv weeiYx Review of Income Statement

(Tk. in million)
Position as of (Tk. in
Sl. million) Changes
Review of Income Statement Types of Income
No %
2021 2020
2021 2020
40289.94
1. Interest Income 33744.48 31959.61 5.59

38692.73
84779.88
85925.36
33744.48
2. Investment Income 38692.73 39996.43 (3.26)

31959.61
Commission/
13051.57
12273.49
3. Exchange/ 13051.57 12273.49 6.34

Brokerage
550.35
436.58
Interest Investment Commission/ Other Total Other operating

Income Income Exchange/ operating Income 4. 436.58 550.35 (20.67)
Brokerage Income Income
5. Total Income 85925.36 84779.88 1.35
Annual Report 2021

my` Avq Interest Income

†mvbvjx e¨vsK wjwg‡UW Gi my` Avq 2020 mv‡ji 31,959.61 wgwjqb UvKv SBL’s interest income stood at Tk. 33,744.48 million in 2021
†_‡K 5.59% e„w× †c‡q 2021 mv‡j `vwo‡q‡Q 33,744.48 wgwjqb UvKvq| from Tk. 31,959.61 million in 2020 which is 5.59 percent
higher than the previous year. Interest income increased
2021 mv‡j F‡Yi cwigvY e„w× cvIqvq my` Avq e„w× †c‡q‡Q| mainly due to loans increase in 2021.
my` e¨q Interest Expenses

2021 mv‡j e¨vs‡Ki Avgvb‡Zi Ici my` eve` e¨q c~e©eZ©x eQ‡ii Zzjbvq Interest expenses of SBL increased by 3.89 percent to Tk.
43,537.09 million in 2021 from Tk. 41,906.61 million in
3.89% e„w× †c‡q ùvwo‡q‡Q 43,537.09 wgwjqb UvKvq| 2020 mv‡j Gi
2020. Interest expenses increased mainly due to decrease
cwigvY wQj 41,906.61 wgwjqb UvKv| my`wenxb I wb¤œ myèvnx AvgvbZ n«vm of no cost and low cost deposits and increase of high cost
Ges D”P myèvnx AvgvbZ e„w× cvIqvq my` e¨q e„w× †c‡q‡Q| deposits.
wbU my` Avq Net Interest Income

2021 mvj †k‡l e¨vs‡Ki wbU my` Avq 2020 mv‡ji FYvZ¡K 9,947.00 In 2021, net interest income of SBL increased by 1.56 percent
to negative Tk. 9,792.60 million from negative Tk. 9,947.00
wgwjqb Gi Zzjbvq 1.56% e„w× †c‡q FYvZ¡K 9,792.60 wgwjqb UvKvq
million in 2020. Net interest income increased mainly due
ùvwo‡q‡Q| g~jZt F‡Yi cwigvY e„w× cvIqvq wbU my` Avq e„w× †c‡q‡Q| to increase loans and advances of the Bank.
my` ewnf‚©Z Avq Non-interest Income

Kwgkb, G·‡PÄ I Ab¨vb¨ cwiPvjb Avq Gi mgš^‡q MwVZ my` ewnf‚©Z Avq Total non-interest income comprising of commission,
MZ eQ‡ii 12,823.84 wgwjqb UvKv †_‡K 5.18% e„w× †c‡q‡Q| 2021 exchange and other operating income of the Bank increased
by 5.18 percent to Tk. 13,488.15 million in 2021 compared to
mv‡j Gi cwigvY 13,488.15 wgwjqb UvKv| Tk. 12,823.84 million in 2020.
Comparison of Revenue Comparison of Revenue

2021 2020
45%
Other operating Income
Interest Income
Investment Income Commission/Exchange/

Brokerage
39%
Commission/Exchange
/ Brokerage
Investment Income
Other operating
15% Income
1% Interest Income
0% 20% 40% 60% 80% 100%
wewb‡qvM Avq Investment Income

e¨vs‡Ki wewb‡qvM n‡Z cÖvß Avq 2020 mv‡ji Zzjbvq 3.26% n«vm †c‡q Investment income of the SBL decreased by 3.26 percent
2021 mv‡j ùvwo‡q‡Q 38,692.73 wgwjqb UvKv| 2020 mv‡j Gi cwigvY to Tk. 38,692.73 million in 2021 compared to Tk. 39,996.43
wQj 39,996.43 wgwjqb UvKv| million in 2020.
cwiPvjb e¨q Operating expenses

2021 mv‡j e¨vs‡Ki cwiPvjb e¨q Gi cwigvY ùvwo‡q‡Q 21,484.53 wgwjqb Total operating expenses of the Bank during 2021 has reached
UvKv; c~e©eZ©x eQ‡i Gi cwigvY wQj 21,346.34 wgwjqb UvKv| G †ÿ‡Î Tk. 21,484.53 million which was Tk. 21,346.34 million. This
controlled increase was 0.65% which was possible due to
e„w×i nvi 0.65%| cwiPvjbv cl©‡ì mg‡qvwPZ w`Kwb‡`©kbv Ges e¨vsK
proper and timely direction of the Board of Directors and the
eë¯’vcbvi wbweo Z`viwKi d‡j cwiPvjb e¨q wbqš¿‡Y ivLv m¤¢e n‡q‡Q| management of the Bank. The summary and comparison of
cwiPvjb e¨‡qi Zzjbvg~jK Ae¯’v cieZ©x c„ôvq D‡jøL Kiv n‡jv t operating expenses is given in the next page:
76
DIRECTORS' REPORT

cwigvY Position as of Change
weeiY cwieZ©b % Particulars
2021 2020 2021 2020 in %
†eZb I fvZvw` 14822.82 14424.17 2.76 Salary and allowances 14822.82 14424.17 2.76
Rent,taxes,Insurance and
1231.89 1110.08 10.97
fvov, Ki, exgv, we`ÿr BZ¨vw` 1231.89 1110.08 10.97 Electricity etc.
Legal Expense 18.92 34.10 (44.52)
AvBbx LiP 18.92 34.10 (44.52)
Postage,Stamp,
47.62 41.15 15.72
WvK, ÷¨v¤ú, †Uwj‡dvb BZ¨vw` 47.62 41.15 15.72 Telecommunications
Stationary, Printing and
Qvcv I gwbnvix Ges weÁvcb e¨q 167.68 159.11 5.39 167.68 159.11 5.39
Advertisements etc.
cÖavb wbe©vnx‡ì †eZb I wd 9.05 7.81 15.88 Chief Executive’s Salary and
9.05 7.81 15.88
fees
cwiPvjK‡ì wd 5.10 3.62 40.88 Director’s Fees 5.10 3.62 40.88
wbixÿKM‡bi wd 4.62 4.28 7.94 Auditor’s Fees 4.62 4.28 7.94
Depreciation, repairs and
AePq, †givgZ I iÿYv‡eÿY e¨q 812.67 793.71 2.39 812.67 793.71 2.39
maintenance
Ab¨vb¨ cwiPvjb e¨q 4364.15 4768.31 (8.48) Other Operating Expense 4364.15 4768.31 (8.48)
†gvU 21484.53 21346.34 0.65 Total 21484.53 21346.34 0.65
Comparison of Operating Expenses Comparison of Operating Expenses

2021 2020
69%
Other Operating Expense
Depreciation, repairs and maintenance

Salary, allowances and fees
Auditor’s Fees
Director’s Fees Rent.,taxes,Insurance,

Legal etc
Chief Executive’s Salary and fees
Stationary, Printing and… Stationary, Postage,

Stamp etc
Postage,Stamp,Telecommunications
Legal Expense Depreciation, repairs and
Rent.taxes,Insurance and Electricity etc

maintenance
6%
Salary and allowances Other Operating Expense
4% 1%
0% 20% 40% 60% 80% 100%
20%
AvqK‡ii wecix‡Z cÖwfkb Provision for Income Tax

2021 mv‡ji Av‡qi wecix‡Z 511.51 wgwjqb UvKv Ki wnmv‡e cÖwfkb ivLv Provision of Tk. 511.51 million was made to meet current
n‡q‡Q hv c~e©eZ©x eQ‡i wQj 505.98 wgwjqb UvKv| year’s income tax compared to Tk. 505.98 million in the
preceding year.
Ki cieZ©x gybvdv Profit after Tax

2021 mv‡j e¨vs‡Ki Ki cieZ©x gybvdv ùvwo‡q‡Q 3,456.67 wgwjqb UvKv| The net profit after taxation stood at Tk. 3,456.67 million in
2020 mv‡j Gi cwigvY wQj 3,234.35 wgwjqb UvKv| my` Avq e„w× Ges 2021 as against Tk. 3,234.35 million in 2020. The increase
in profit after tax is attributed to increase in interest income
evsjv‡`k e¨vs‡Ki wb‡`©kbv †gvZv‡eK wewfbœ Lv‡Z iwÿZe¨ cÖwfk‡bi cwigvY
and decrease of provisions against various segments as per
n«vm cvIqvq Ki cieZ©x gybvdv e„w× ‡c‡q‡Q| directions of Bangladesh Bank.
mswewae× wiRvf© Statutory Reserve

e¨vsK †Kv¤úvbx AvBb, 1991 (ms‡kvwaZ-2018) †gvZv‡eK cwi‡kvwaZ As per Bank Company Act, 1991 (amended in 2018), 20
g~ja‡bi mgvb bv nIqv ch©šÍ Ki c~e© gybvdvi 20% Statutory Reserve G percent of profit before tax is required to be transferred to
Statutory Reserve until the balance of the same reaches to
msi¶Y Ki‡Z nq| G eQi e¨vs‡Ki Kic~e© gybvdv n‡Z 1,078.09 wgwjqb
the level of paid up capital. For this purpose, an amount of
UvKv D³ wnmv‡e msi¶Y Kiv n‡q‡Q|
Tk. 1,078.09 million has been transferred to statutory reserve.
Annual Report 2021

cwiPvjbMZ djvdj Summary of operating results

2021 I 2020 mv‡ji cwiPvjbMZ djvd‡ji mvims‡ÿc wb‡¤œ Zz‡j aiv The summary of operating results with the variation between
the year 2021 and 2020 is given below:
n‡jv t
(Tk. in million)
Amount Change
Particulars
2021 2020 in %
Interest income 33744.48 31959.61 5.58

Operating Result
2021 2020
Interest Expense (43537.09) (41906.61) 3.89
Net Int. Income (9792.60) (9947.00) (1.55)

42873.27
42388.28
Non-Int. Income 13488.15 12823.83 5.18
Investment Income 38692.73 39996.43 (3.26)
Total Operating Income 42388.28 42873.27 (1.13)

21484.53
21 346.34
Total Operating Expense 21484.53 21346.34 0.65

1 1 91 9.32
10039.44
Profit before Provision 20903.75 21526.93 (2.89)

6106.70
6149.67
3456.67
3234.35
21 07.80
1933.80
Provision for Loans and

6106.70 11919.33 (48.77)
Advance
Total Total Provision Other Provision For Net Profit
Provision for diminution
Operating Operating for Loans Provision Taxation after (632.86) (884.22) (28.43)
Income Expense and taxation in value of investment
Advance
Other Provision 10039.44 5149.67 94.95
Profit Before Taxes 5390.47 5342.15 0.90
Provision For Taxation 1933.80 2107.80 (8.26)
Net Profit after taxation 3456.67 3234.35 6.87
mvgvwRK `vqe×Zv Lv‡Z wiRvf© Reserve for Corporate Social Responsibility

evsjv‡`k e¨vs‡Ki MvBWjvBÝ †gvZv‡eK 2022 mv‡ji mvgvwRK `vqe×Zv In line with Bangladesh Bank Guidelines, a total of Tk. 50.00
(CSR) Lv‡Zi LiP †gUv‡bvi Rb¨ 2021 mv‡ji wbU gybvdv n‡Z 50.00 million has been kept for CSR which has been provided
from net profit after tax for the year 2021 to meet Corporate
wgwjqb UvKv G Lv‡Z msiÿY Kiv n‡q‡Q| 2021 mv‡j G Lv‡Z †gvU Li‡Pi Social Responsibility (CSR) expenses. In 2021, CSR expenses
cwigvY wQj 48.95 wgwjqb UvKv| of the Bank were Tk. 48.95 million.
CSR activities of SBL CSR activities of SBL
78
DIRECTORS' REPORT
gybvdvi D‡jøL‡hvM¨ wb‡`©kK mgyn Significant Profitability Ratio

Summary of Operating Result (In Percentage)
2021 2020
75.67
Amount (%)
74.61
Change
Particulars
2021 2020 in %
Return on Investment (ROI) 5.87 7.13 (1.26)

15.7
15.13
Non-interest income to total

15.70 15.13 0.57
income
7.13
Cost income ratio 75.67 74.61 1.06

5.87
4.26
4.21
4.02
3.81 Profit after tax to total income 4.02 3.81 0.21
0.21
0.21
Return on Non-interest Cost income Profit after tax Return on Return on
Return on assets(ROA) 0.21 0.21 -
Investment income to total ratio to total income assets(ROA) equity (ROE)
(ROI) income Return on equity (ROE) 4.26 4.21 0.05
e¨v‡jÝkxU ch©v‡jvPbv Review of Balance Sheet

†gvU m¤ú` Total assets
e¨vs‡Ki m¤ú‡ì cwigvY 2020 mv‡ji 1,591,233.76 wgwjqb UvKv n‡Z Total assets of the Bank stood at Tk. 1,706,803.45 million as
on 31 December 2021 compared to that of Tk. 1,591,233.76
7.26% e„w× †c‡q 2021 mv‡j 1,706,803.45 wgwjqb UvKvq DbœxZ n‡q‡Q| million as on 31 December 2020 registering a positive growth
cÖvBgvix wWjvi wnmv‡e wmwKDwiwU I GmGjAvi (SLR) G msi¶‡Yi D‡Ï‡k¨ of 7.26 percent. The increase in assets of SBL is largely driven
by growth of deposits which is ultimately used in holding of
iw¶Z ewa©Z Avgvb‡Zi Kvi‡YB m¤ú‡ì G cÖe„w× n‡q‡Q| securities or for SLR purpose as a primary dealer.
e¨vs‡Ki †gvU m¤ú‡ì mvi-ms‡ÿc wb¤œiƒct A summary of assets of SBL is given below:
(Tk. in million)
Summary of Assets
2021 2020
Growth
Other assets
Particulars 2021 2020
Fixed assets
in %
Loans and advances
Cash in Hand 7725.82 7300.87 5.82
Investments
Money at call and short notice Balance with

Balance with other Banks Bangladesh bank 69801.13 83801.30 (16.71)
and financial Institution
Balance with Bangladesh bank and its agent Bank
and its agent Bank
Cash in Hand Balance with other

0% 20% 40% 60% 80% 100%
Banks and financial 38055.20 52308.81 (27.25)
Institution
Money at call and
8663.00 9031.30 (4.08)
short notice
Cash in Hand
Balance with Bangladesh bank

Investments 688064.72 629681.84 9.27
40% and its agent Bank
41% Balance with other Banks and Loans and advances 690596.85 586232.72 17.80
financial Institution
Money at call and short notice

Fixed assets 33876.42 33891.29 (0.04)
Investments
Other assets 170020.31 188985.63 10.04
Loans and advances
1% 2%
10%
2%
Fixed assets
Total assets 1706803.45 1591233.76 7.26
4%
nv‡Z bM` I evsjv‡`k e¨vsK I Gi G‡R›U e¨vs‡K e¨v‡jÝ Cash in Hand and Balances with BB and its Agents
31 wW‡m¤î 2021 Zvwi‡L nv‡Z bM` I evsjv‡`k e¨vsK I Gi G‡R›U e¨vs‡K As on 31 December 2021, cash in hand and balances with
Bangladesh Bank and its agent banks stood at Tk. 77,526.95
e¨v‡jÝ Gi cwigvY ùvwo‡q‡Q 77,526.95 wgwjqb UvKv, hv c~e©eZ©x eQ‡ii million as against Tk. 91,102.17 million as on 31 December
91,102.17 wgwjqb UvKvi Zzjbvq 14.90% Kg| Gi d‡j e¨vs‡Ki bM` 2020 registering a decrease of 14.90 percent. The Cash
Annual Report 2021

mwÂwZi (CRR) cwigvY G eQi 6.20% G ùvwo‡q‡Q, hv Kgc‡ÿ 4.00% Reserve Requirement (CRR) should be currently maintained
at 4.00 percent and SBL has maintained 6.20 percent in the
ivLv eva¨Zvg~jK| ZvQvov wewfbœ †Wwjfvix P¨v‡b‡j MÖvnK‡ì Pvwn`v †gUv‡bvi
year under review. Besides, adequate cash was required to
Rb¨ wbiwew”Qbœ K¨vk mieiv‡niI eë¯’v Kiv nq| we¯ÍvwiZ weeiY AwW‡UW provide uninterrupted cash services to the growing number
wnmv‡ei 3 bs †bv‡U wea„Z i‡q‡Q| of customers through multiple delivery channels. Details
have been given at notes#3 to the accounts.
e¨v‡jÝ DB_ Av`vi e¨vsKm GÛ wdb¨vwÝqvj Balance with Other Banks and Financial
Bbw÷wUDkb Institutions
e¨vs‡Ki ‡jvb I Bb‡f÷‡g‡›Ui Pvwn`v †gUv‡bv Ges SLR G msiÿ‡Yi ci A portion of the excess fund, after meeting the requirement
to finance loan portfolio and investments including SLR,
AwZwi³ dv‡Ûi mwVK eënvi Ges e¨vs‡Ki gybvdv e„w×i j‡ÿ¨ Ab¨vb¨ e¨vsK has been placed with other banks and financial institutions
I Avw_©K cÖwZôv‡b dv‡Ûi GKwU Ask Rgv ivLv nq| †UªRvwi I evwY‡R¨ as term deposits for optimizing the utilization of fund
and profit of the Bank. In addition, Treasury Management
A_©vq‡bi Kvh©µg myôzfv‡e cwiPvjbvi Rb¨ e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi Division of the Bank has to maintain some special notice
g¨v‡bR‡g›U wWwfkb KZ…©K †`‡k I †`‡ki evB‡i Aew¯’Z Ab¨vb¨ e¨vsK I deposit (SND) accounts and current deposit (CD) accounts
with other banks and financial institutions in and outside
Avw_©K cªwZôv‡b SND Ges PjwZ wnmve cwiPvjbv Kiv nq| wewb‡qvM Ges the country for smooth functioning of treasury operations
FY I AwMÖ‡gi e„w×RwbZ Kvi‡Y Ab¨vb¨ e¨vsK I Avw_©K c&ªwZôv‡b e¨v‡j‡Ýi and trade finance. Because of simultanious increase in
investment and loans and advances, balances outstanding
cwigvY 2020 mv‡ji 52,308.81 wgwjqb UvKv ‡_‡K 27.25% n«vm †c‡q G with other banks and financial institutions decreased to Tk.
eQi 38,055.20 wgwjqb UvKvq ùvwo‡q‡Q| Gi g‡a¨ 28,673.66 wgwjqb 38,055.20 million in 2021 from Tk. 52,308.81 million in 2020
registering a negative growth of 27.25 percent. Out of this
UvKv evsjv‡`‡ki Ab¨vb¨ e¨vsK I Avw_©K cÖwZôv‡b Ges 9,381.54 wgwjqb amount, Tk. 28,673.66 million has been kept in banks and
financial institutions in Bangladesh and the rest amount Tk.
UvKv we‡`kx e¨vs‡K iwÿZ Av‡Q| we¯ÍvwiZ weeiY AwW‡UW wnmv‡ei 4 bs
9,381.54 million has been kept in foreign banks. Details of
†bv‡U wea„Z i‡q‡Q| balance with other banks and financial institutions are given
at notes# 4 to the accounts.
gvwb GU Kj Ab kU© †bvwUk Money at Call on Short Notice
gvwb GU Kj GÛ kU© †bvwUk Gi cwigvY 2021 mv‡j ùvwo‡q‡Q 8,663.00 Money at call and short notice decreased by 4.08 percent
to Tk. 8,663.00 million at the end of 2021 compared to Tk.
wgwjqb UvKv hv c~e©eZ©x eQ‡ii 9,031.30 wgwjqb UvKvi Zzjbvq 4.08% Kg|
9,031.30 million at the end of 2020.
wewb‡qvM Investments
e¨vs‡Ki †gvU wewb‡qvM Gi cwigvY 2020 mv‡ji 629,681.83 wgwjqb The Bank’s total investments stood at Tk. 688,064.72 million
in 2021 which was Tk. 629,681.83 million in 2020 meaning
UvKv †_‡K 58,382.89 wgwjqb UvKv ev 9.27% e„w× †c‡q 2021 mv‡j an increase by Tk. 58,382.89 million or 9.27 percent. The
688,064.72 wgwjqb UvKvq ùvwo‡q‡Q| Gi g‡a¨ D‡jøL‡hvM¨ n‡”Q miKvwi investments mainly include Government securities of Tk.
613,131.58 million or 87.45 percent of total investments
wmwKDwiwU Lv‡Z 613,131.58 wgwjqb UvKv wewb‡qvM, hv †gvU wewb‡qv‡Mi maintained as a primary dealer in addition to cover SLR
87.45%| e¨vsK 13% mswewae× Zvij¨ mwÂwZi ¯’‡j 48.22% mwÂwZ requirement. In place of 13 percent SLR, SBL has maintained
48.22 percent with Bangladesh Bank which is an indication
msiÿY K‡i‡Q, hv e¨vs‡Ki kw³gËvi cwiPvqK| of the strength of the Bank.
FY I AwMÖg Loans and Advances

†mvbvjx e¨vsK K…wl, wkí, GmGgB I evwY‡Rï Drcv`bkxj I AMÖvwaKvi Loans and advances constitute the largest portion in asset
side of SBL’s Balance Sheet which was Tk. 690,596.85 million
Lv‡Z A_©vqb Ae¨vnZ †i‡L‡Q| e¨vs‡Ki †gvU m¤ú‡ì eo Ask `Lj K‡i or 40.47 percent of total assets in 2021. SBL’s loans and
Av‡Q FY I AwMÖg, hvi w¯’wZ 690,596.85 wgwjqb UvKv ev †gvU m¤ú‡ì advances increased by 17.80 percent from Tk. 586,232.72
million in 2020 to Tk. 690,596.85 million in 2021. SBL has
40.47% Ges e„w×i nvi 17.80%| e¨vs‡Ki cÖ`vbK…Z F‡Yi cwigvY 2020 continued its lending operations in productive and priority
mv‡j wQj 586,232.72 wgwjqb UvKv| RvZxq AMÖvwaKvi gyjK miKvwi, sectors covering agriculture, industry, SME, trade and
commerce. The Bank has extended credit to Government,
cvewjK I cÖvB‡fU LvZmgy‡n e¨vsK FY myweav cÖ`vb Ki‡Q| e¨vs‡Ki eZ©gvb
public and private sectors in line with national priority. The
GwW †iwkI 51.12%| 2021 mvj †k‡l ‡kÖYxK…Z FY I AwMÖ‡gi cwigvY percentage of total loans and advances against total deposit
ùvwo‡q‡Q 119,585.29 wgwjqb UvKv| bb cvidwg©s F‡Yi cwigvY 2020 (AD ratio) is 51.12%. Details of loans and advances are given
at notes# 7 to the accounts. The amount of classified
mv‡ji 18.37% †_‡K n«vm †c‡q 17.32% G ùvwo‡q‡Q| we¯ÍvwiZ weeiY loans and advances stood at Tk. 119,585.29 million in 2021.
wbixwÿZ wnmv‡ei 7 bs †bv‡U wea„Z i‡q‡Q| Percentage of non-performing loans of SBL was 17.32
percent in 2021 which was 18.37 percent in 2020.
80
DIRECTORS' REPORT
LvZ wfwËK †gvU FY I AwMÖg Composition of Total Loans and Advances

(wgwjqb UvKvq)
of the SBL
(Tk. in million)
µ: FY I AwMÖ‡gi cwieZ©b Types of Loans and Change
2021 2020 Sl. 2021 2020
bs LvZmgy‡ni bvg (%) Advances In %
1 K…wl 54914.60 49474.52 11.00 Agricultural/Rural
1 54914.60 49474.52 11.00
Credit
2 gvB‡µv †µwWU 12639.83 12210.17 3.52 2 Micro Credit 12639.83 12210.17 3.52
3 wkí FY 75191.23 70902.27 6.05 3 Industrial Credit 75191.23 70902.27 6.05
4 K…wlwfwËK wkí cÖKí 18213.27 19007.90 (4.18) Agro-based

4 18213.27 19007.90 (4.18)
Industrial Credit
5 AvšÍR©vwZK evwYR¨ 142862.82 93527.77 52.75 5 International Trade 142862.82 93527.77 52.75
6 Gm Gg B A_©vqb 78623.18 74401.59 5.67 6 SME Finance 78623.18 74401.59 5.67
7 mvaviY FY I Ab¨vb¨ 308151.92 266708.50 15.54 General Advance &

7 308151.92 266708.50 15.54
Others
me©‡gvU 690596.85 586232.72 17.80 Total 690596.85 586232.72 17.80
bZzb †cÖvWv±: FY I AwMÖg New Products: Loans and Advances

FY I AwMÖg e„w×i j‡ÿ¨ mv¤úªwZK mg‡q e¨vs‡Ki D™¢vweZ bZzb FY To accelerate the rate of credit growth, some new loan/
investment products were introduced by the Bank, namely
†cÖvWv±¸‡jv n‡jv: (K) evB mvB‡Kj †jvb ¯‹xg di ¯‹zj †Mvwqs ÷z‡W›Um (L)
(a) Bicycle Loan Scheme for School Going Students (b)
¯§j GÛ wgwWqvg G›UvicÖvBR (GmGgB) †jvb (M) †¯úkvj ¯§j †jvb (N) Small and Medium Enterprise (SME) Loan (c) Special Small
Loan (d) Rural Small Farming Loan (e) Rural Small Business
iæivj ¯§j dvwg©s †jvb (O) †cvfvwU© Gwjwf‡qkb Gwm÷¨v›U †cÖvMÖvg (P) cÖevmx
Loan (f) Poverty Alleviation Assistance Programme (g)
Kg©ms¯’vb FY cÖKí (Q) wkÿv FY (R) Rv‡Mv bvix MÖvgxY FY (S) gyw³‡hv×v Probashi Karmasangsthan Rin Prokalpo (h) Education Loan
FY (T) d‡ib GWz‡Kkb †jvb †cÖvMÖvg (U) nvDR‡nvì wWD‡iej ¯‹xg AvÛvi (i) Jago Nari Grameen Rin (j) Term loan to Freedom Fighters
(k) Foreign Education Loan Program (FELP) (l) Household
evB gyqv¾vj †gvW BZ¨vw`| Durable Scheme under Bai-Muazzal Mode etc.
mvaviY FY General Credits

wewfbœ cvewjK I cÖvB‡fU †m±‡ii cÖwZôvb¸‡jv‡Z FY myweav cÖ`v‡bi gva¨‡g SBL is playing a vital role in the national economy by
extending various credit facilities to both public and private
†mvbvjx e¨vsK RvZxq A_©bxwZ‡Z we‡kl Ae`vb †i‡L P‡j‡Q| mvaviY FY
sector organizations and entities. In the year 2021, the
Lv‡Z e¨vsK 2021 mv‡j †gvU 92,350.00 wgwjqb UvKv FY weZiY K‡i‡Q| Bank disbursed loans amounting Tk. 92,350.00 million to
the private sector which was Tk. 45,400.00 million in 2020
2020 mv‡j FY weZi‡bi cwigvY wQj 45,400.00 wgwjqb UvKv| G Lv‡Z
under general credit head. On the other hand, classified
†kÖYxK…Z FY n‡Z Av`vq n‡q‡Q 2,820.00 wgwjqb UvKv hvi cwigvY 2020 loans under general credit amounting to Tk. 2,820.00
million have been recovered during the year which was Tk.
mv‡j wQj 2,230.00 wgwjqb UvKv| 2,230.00 million in 2020.
e¨vs‡Ki mvaviY FY Lv‡Zi mvwe©K Ae¯’v wb¤œiƒct A tabular presentation shows the overall position of General
Credit of the Bank.
Change
µ: bs wk‡ivbvg 2021 2020 cwieZ©b (%) Sl. Particulars 2021 2020
In %
Total
1 †gvU w¯’wZ 185840 158750 17.06 1 185840 158750 17.06
Outstanding
2 †gvU weZiY 92350 45400 103.41 Total

2 92350 45400 103.41
Disbursement
3 †gvU Av`vq 2820 2230 26.46 3 Total Recovery 2820 2230 26.46
Annual Report 2021

K…wlwfwËK wkí FY cÖKí Agro-based Industrial Finance Program

mvwe©Kfv‡e †`‡ki †UKmB Av_©-mvgvwRK Dbœq‡bi j‡ÿ¨ †`‡ki K…wl Lv‡Zi To ensure country’s agricultural development as well as
overall socio-economic sustainability, Sonali Bank Limited
Dbœq‡b †mvbvjx e¨vsK wjwg‡UW K…wlwfwËK wkí FY cÖK‡íi Aax‡b K…wlwfwËK
has extended credit facilities to the agro-based industries
wk‡í FY myweav cÖ`vb Ki‡Q| 2021 mv‡j G Lv‡Z e¨vsK me©‡gvU 2,100.60 under agro-based industrial sector financing scheme.
wgwjqb UvKv FY weZiY K‡i‡Q Ges Ae‡jvcbmn wewfbœ K…wlwfwËK cÖKímgyn In the year 2021, SBL disbursed Tk. 2,100.60 million and
recovered Tk. 2,426.50 million including write-off loans
n‡Z 2,426.50 wgwjqb UvKv Av`vq K‡i‡Q| Av_©-mvgvwRK Dbœq‡b e¨vsK
from different agro-based projects. The Bank is extending
Zvi mywbw`©ó 120wU kvLvi gva¨‡g mnR k‡Z© cÖKí FY cÖ`vb Ki‡Q| ZvQvov project loan on simple terms and conditions through 120
e¨vs‡Ki cÖvq mKj kvLv n‡Z G cÖK‡íi wkí Lv‡Z PjwZ gyjab FY weZiY designated branches for improvement of socio-economic
condition. Besides, working capital loans to industries are
Kiv n‡”Q| Zvi g‡a¨ we‡RGgwmÕi Aax‡b 5wU RyU wgj I 21wU †emiKvix RyU also being disbursed by almost all the branches throughout
wgj I RyU w¯úwbs wg‡j D‡jøL‡hvM¨ cwigvY FY weZiY Kiv n‡q‡Q| 2021 the country. It may be mentioned that a large amount of
mvj ch©šÍ G Lv‡Z FY w¯’wZi cwigvY 34,580.80 wgwjqb UvKv FY weZiY loan has been disbursed to 5 jute mills under BJMC and
21 private jute mills and jute spinning mills. The amount of
Kiv n‡q‡Q| 2020 mvj ch©šÍ G Lv‡Z FY weZi‡Yi cwigvY wQj 34,022.80 outstanding loan stood Tk. 34,580.80 million till 2021 which
wgwjqb UvKv| was Tk. 34,022.80 million as on 31 December 2020.
†kÖYxK…Z FY Av`vq Kvh©µg Classified Loan Recovery Program

2021 mv‡j e¨vs‡Ki †kÖYxK…Z F‡Yi cwigvY ùvwo‡q‡Q 119,585.29 The amount of classified loan stood at Tk. 119,585.29
million which is 17.32 percent of the Bank’s total loan of Tk.
wgwjqb UvKv A_©vr e¨vs‡Ki †gvU FY I AwMÖg 690,596.85 wgwjqb UvKvi
690,596.85 million as on 31 December, 2021. The amount
17.32%| 2020 mv‡j †gvU 586,232.72 wgwjqb UvKvi FY I AwMÖ‡gi of classified loan was Tk. 107,673.90 million (18.37 percent
g‡a¨ 107,673.90 wgwjqb UvKv ev 18.37% †kÖYxK…Z wQj| †kÖYxK…Z I of bank’s total loan) against total outstanding loans and
advance of Tk. 586,232.72 million in 2020. The amount of
Ae‡jvcbK…Z FY n‡Z 2021 mv‡j Av`v‡qi cwigvY h_vµ‡g 12,590.05 recovery against classified and written off loan in 2021 are
wgwjqb UvKv Ges 1,672.60 wgwjqb UvKv| eQ‡ii ïiæ‡ZB Av`vjZ ewnfy©Z Tk. 12,590.05 million and Tk. 1,672.60 million respectively.
The Bank made all out efforts to recover non-performing
mgvavb, ewa©Z my` gIKzd myweav Ges evsjv‡`k e¨vs‡Ki cwjwm I A_© gš¿Yvjq loans by strengthening recovery measures like outside
Gi MvBWjvBÝ †gvZv‡eK wiwmwWDjKi‡Yi gva¨‡g bb-cvidwg©s †jvb n‡Z court settlement, extending interest exemption facilities and
rescheduling as per Bangladesh Bank policies and Ministry
Av`v‡qi Kvh©µg †Rvi`vi Kiv nq| of Finance’s guidelines.
`vq‡`bvi mvi ms‡ÿc Summary of Liabilities
µ:
wk‡ivbvg 2021 2020 cwieZ©b (%) Sl. Particulars 2021 2020 Growth%
bs
Ab¨vb¨ e¨vsK I Avw_©K cÖwZôvb Borrowings other Banks
1 494.33 549.25 (10.00) 1 and financial institutions 494.33 549.25 (10.00)
n‡Z avi
and agents
2 †gvU AvgvbZ 1350815.87 1258786.26 7.31
2 Total deposits 1350815.87 1258786.26 7.31
3 Ab¨vb¨ †`bv 278750.36 246282.64 13.18 3 Other Liabilities 278750.36 246282.64 13.18
4 †gvU †`bv 1630060.56 1505618.15 8.27 4 Total Liabilities 1630060.56 1505618.15 8.27
Borrowings from other banks, Financial

Ab¨vb¨ e¨vsK, Avw_©K cÖwZôvb Ges G‡R›U n‡Z avi
Institutions and Agents
2021 mv‡j evsjv‡`k e¨vsK Gi cyb:A_©vqb Gi AvIZvq †mvbvjx e¨vsK Sonali Bank Limited has been given an amount of Tk.
wjwg‡UW‡K 494.33 wgwjqb UvKv avi †`qv n‡q‡Q| Gi g‡a¨ 494.25 494.33 million only by Bangladesh Bank for refinance in
wgwjqb UvKv cvU Lv‡Z cyb:A_©vqb Ges Aewkó UvKv RHFG †cÖv‡R‡± 2021 of which Tk. 494.25 million for refinance against jute
sector and rest of the amount for refinance against RHFG
cyb:A_©vqb Gi Rb¨ avi †`qv n‡q‡Q| GQvov †`‡ki †fZ‡i I evB‡i Ab¨
project. Except these, it has no borrowing inside or outside
†Kvb cÖwZôv‡bi wbKU e¨vs‡Ki †Kvb avi †bB| 2020 mv‡j e¨vs‡Ki av‡ii Bangladesh. The borrowed amount was Tk. 549.25 million
cwigvY wQj 549.25 wgwjqb UvKv| in 2020.
82
DIRECTORS' REPORT
AvgvbZ Deposits
2020 mv‡ji 1,258,786.26 wgwjqb UvKv n‡Z 7.31% ev 92,029.61 The total deposit of the Bank as on 31 December, 2021
wgwjqb UvKv e„w× †c‡q 2021 mv‡j e¨vs‡Ki †gvU Avgvb‡Zi cwigvY ùvwo‡q‡Q was Tk. 1,350,815.87 million showing an increase of Tk.
92,029.61 million or 7.31 percent over 1,258,786.26 million
1,350,815.87 wgwjqb UvKv| †gvU Avgvb‡Zi g‡a¨ mePvB‡Z ¸iæZ¡c~Y©
of the preceding year. Most importantly, current deposit
PjwZ Avgvb‡Zi cwigvY 2020 mv‡ji 243,012.27 wgwjqb UvKv n‡Z n«vm and other accounts stood at Tk. 231,392.55 million which
†c‡q 231,392.55 wgwjqb UvKvq DbœxZ n‡q‡Q| LvZIqvix Avgvb‡Zi was Tk. 243,012.27 million in 2020. The position of deposit,
growth of deposit and deposit mix are given below:
cwigvY, cÖe„w× I wgkÖY wb‡¤œ cÖ`wk©Z n‡jv|
µ: cwieZ©Y Change
LvZ 2021 2020 Sl. Type 2021 2020
bs (%) (%)
Current Deposit & Other

1 PjwZ AvgvbZ I Ab¨vb¨ 231393 243012 (4.78) 1 231393 243012 (4.78)
Accounts
2 wejm †c‡qej 12815 11043 16.05 2 Bills payables 12815 11043 16.05
3 mÂqx AvgvbZ 528620 451471 17.09 3 Savings Deposits 528620 451471 17.09
4 †¯úkvj †bvwUk wW‡cvwRU (SND) 179683 166737 7.76 4 Special Notice Deposit (SND) 179683 166737 7.76
Fixed Deposits (Including

5 wd·W wW‡cvwRU (wW‡cvwRU ¯‹xg mn) 398305 386523 3.05 5 398305 386523 3.05
Deposit Schemes)
†gvU 1350816 1258786 7.31 Total 1350816 1258786 7.31
g~jZ †`ke¨vcx we¯Í…Z kvLv, AbjvBb †mev Pvjyi gva¨‡g MÖvnK †mevi gv‡bvbœqb, The growth in deposits was attributed to largest branch
GwUGg mvwf©m PvjyKiY Ges †iwgU¨v‡Ýi UvKv‡K wePÿYZvi mv‡_ ¯^í‡gqvw` network, improvement of service standard by introducing
online banking, expanding ATM networks and efficient
I `xN©‡gqvw` Avgvb‡Z iƒcvšÍi Ges bZzb AvgvbZ †cÖvWv± cÖeZ©‡bi Kvi‡YB channeling of remittance which was partially converted
Avgvb‡Zi G cÖe„w× N‡U‡Q| c~‡e©i eQi¸‡jvi b¨vq 2021 mv‡jI Avgvb‡Zi into short and long term deposits, launching new deposit
products. As in previous year, fixed deposits constituted of
g~j LvZ wd·W wW‡cvwRU hvi cwigvY †gvU Avgvb‡Zi 29.49% ev 398,305 the main component of the deposit item that was 29.49
wgwjqb UvKv| GQvov mÂqx Avgvb‡Zi cwigvY 528,620 wgwjqb UvKv hv percent of total deposits in 2021. After fixed deposits,
savings deposit stood Tk. 528,620 million in 2021 which
2020 mv‡ji 451,471 wgwjqb n‡Z 17.09% e„w× †c‡q‡Q Ges GwU g~j was Tk. 451,471 million in 2020 meaning 17.09 percent
Avgvb‡Zi 39.13%| wejm †c‡qej Ges †¯úkvj †bvwUk wW‡cvwR‡Ui cwigvY growth and accounted for 39.13 percent of the total
deposits. Bills payable and Special Notice deposits stood
2020 mv‡j wQj h_vµ‡g 11,043 wgwjqb UvKv I 166,737 wgwjqb UvKv, at Tk. 12,815 million and Tk. 179,683 million respectively in
hv 2021 mv‡j `vwo‡q‡Q h_vµ‡g 12,815 wgwjqb I 179,683 wgwjqb 2021 which was Tk. 11,043 million and Tk. 166,737 million
in 2020 meaning 16.05 percent and 7.76 percent growth
UvKv| e„w×i nvi h_vµ‡g 16.05% I 7.76%| respectively.
Avg`vwb-ißvwb eëmv Import and Export

2021 mv‡j e¨vs‡Ki Avg`vwb I ißvwb eëmvq A_©vq‡bi cwigvY h_vµ‡g The total import and export businesses handled by the Bank
in 2021 stood at Tk. 314,539.20 million and Tk. 32,113.60
314,539.20 wgwjqb UvKv Ges 32,113.60 wgwjqb UvKv| c~e©eZ©x eQ‡i million respectively compared to Tk. 165,662.00 million and
Gi cwigvY wQj h_vµ‡g 165,662.00 wgwjqb UvKv Ges 25,173.10 Tk. 25,173.10 million respectively in 2020. The total amount
of foreign exchange transactions handling including
wgwjqb UvKv| ê‡`wkK †iwgU¨vÝmn †gvU ê‡`wkK †jb‡`‡bi cwigvY 2021
foreign remittance of the Bank for the year 2021 stood at
mv‡j ùvwo‡q‡Q 533,235.90 wgwjqb UvKv| 2020 mv‡j Gi cwigvb wQj Tk. 533,235.90 million which was Tk. 373,443.80 million in
373,443.80 wgwjqb UvKv| 2020.
Annual Report 2021

2021 I 2020 mv‡ji AvšÍR©vwZK eëmv‡qi ZzjbvgyjK wPÎ: Comparative Foreign Trade Position during
2021 and 2020 :
(Tk. in million)
Comparative Foreign Trade Position Change

Sl. Particulars 2021 2020
2021 2020 (%)
314539.20
1 Total Import 314539.20 165662.00 89.87
2 Total Export 32,113.60 25173.10 27.57

165662.00
129055.60
125263.50 Inward
61,319.60
53553.10
3 Remittance 125263.50 129055.60 (2.94)
32,113.60
25173.10
(including WES)
Outward
Total Total Inward Outward
Import Export 4 Remittance 61,319.60 53553.10 14.50
Remittance Remittance
(including (including (including WES)
WES) WES)
Total 533235.90 373443.80 42.79
jf¨vsk †NvlYv Dividends and Stock Dividend

Retained Earnings FYvZ¡K nIqvq c~e©eZ©x eQ‡ii b¨vq G e¨vsK KZ©„K Like previous year, no dividend is declared by SBL for the
year 2021 because of prevailing negative retained earning
2021 mv‡ji Rb¨ †Kvb jf¨vsk †NvlYv Kiv nqwb| balance.
Ad-e¨v‡jÝ kxU G·‡cvRvim Off- Balance Sheet Exposures

2021 mvj †k‡l e¨vs‡Ki Off-Balance Sheet Exposures Gi At the end of 2021, total outstanding amount of off-balance
cwigvY 2020 mv‡ji 949,413.07 wgwjqb UvKv n‡Z mvgvb¨ n«vm †c‡q sheet exposures of the Bank stood at Tk. 886,193.45 million
compared to Tk. 949,413.07 million for the year 2020.
886,193.45 wgwjqb UvKvq ùvwo‡q‡Q|
The summary of off-balance sheet exposures is shown
Ad-e¨v‡jÝ kxU G·‡cvRvim Gi mvims‡ÿc wb¤œiƒct below:
cwigvY Position as of
weeiY Particulars
2021 2020 2021 2020
e¨vsK M¨vivw›U 9454.48 7474.86 Letter of guarantee 9454.48 7474.86
AcwieZ©bxq FYcÎ 868318.83 936600.21 Irrevocable letter of credit 868318.84 936600.21
wej di Kv‡jKkb 8420.14 5338.00 Bills for collection 8420.14 5338.00
Ab¨vb¨ KbwUb‡RwÝ `vq - - Other contingencies liabilities - -
†gvU 886193.45 949413.07 Total 949413.07
HR policies are designed to long-term career

`xN©‡gqv`x ‡ckvMZ `ÿZv Dbœq‡b gvbe m¤ú` cwiKíbv growth - unleashing the hidden potential
SBL’s HR policies, based on trust and relationship, are to
`xN©‡gqv`x wek¦vm I m¤úK©- G `ywU KvVv‡gv‡K wfwË K‡i e¨vswKs ‡ckvq look after people who want to make a long-term career
†ckvMZ `ÿZv AR©‡bi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡U‡W gvbe m¤ú` Dbœqb with the Bank because trust and relationship are built over
time. The corporate culture at SBL over last 49 years is such
cwiKíbv MÖnY Kiv n‡q‡Q| e¨vs‡Ki 49 eQ‡ii †ckvMZ cwi‡ek Kg©xevwnbxi that the members and the staff have ample opportunities to
AšÍwb©wnZ êwkó¨ cÖKv‡ki h‡_ó my‡hvM m„wó K‡i‡Q hvi gva¨‡g Zviv D‡`¨vMx take initiatives and responsibilities to unleash their hidden
potential to maximize benefits for themselves and for
n‡q Ges `vwqZ¡ wb‡q wb‡R‡ì I mgv‡Ri DbœwZi Rb¨ KvR Ki‡Z cv‡i| the society. The challenge is to maintain a business like,
e¨vsK g¨v‡bR‡g›U Ges Kg©xevwnbx h_vh_fv‡e `vwqZ¡ cvj‡bi ga¨ w`‡q committed corporate culture that matches SBL’s mission.
Achieving results and taking responsibility are important
djvdj AR©‡bi j‡ÿ¨ GKm‡½ cvi¯úwiK `vwqZ¡ mnKv‡i Kg©m¤úv`b K‡i components of the culture we pursue, one in which
management and staff work together and are mutually
84
DIRECTORS' REPORT
_v‡K| e¨vs‡Ki cl©` bvix cyiæl wbwe©‡k‡l Kg©`ÿZv I gvbe m¤ú` Dbœq‡bi accountable. Ensuring equal opportunities irrespective
j‡ÿ¨ †ek wKQz cÖkvmwbK bxwZ MÖnY K‡i‡Qb| Zvi g‡a¨ D‡jøL‡hvM¨ n‡jv: of gender, the Board of Directors of the Bank has already
adopted a number of administrative policies focusing on
ms‡kvwaZ AM©v‡bvMÖvg, bZzb mvwf©m iæj, ‡hvM¨Zvi wfwË‡Z c‡`vbœwZ, ¯^”Q improvement of skills and performance of human resources.
wb‡qvM I e`jx cÖwµqv, Kg©KZv©-Kg©Pvix‡ì Kj¨vY I `ÿZv AR©‡b ch©vß Notable among them includes: revised organogram, new
service rules, performance based promotion, transparent
cÖwkÿY myweav BZ¨vw`| eZ©gv‡b †mvbvjx e¨vs‡Ki †gvU Rbe‡ji cwigvY posting and transfer, employee’s welfare, training activities
18,200 Rb| Gi g‡a¨ Kg©KZ©v I Kg©Pvixi msL¨v h_vµ‡g 16,288 Rb I and skill development. Currently, SBL is having manpower
strength of 18,200 of which 16,288 are officers and 1,912
1,912 Rb| 2021 mv‡j e¨vsK Zvi gvbe m¤ú`‡K Drcv`bgyLx wn‡m‡e M‡o are staff. In 2021, the Bank has invested Tk. 39.74 million to
†Zvjvi Rb¨ 39.74 wgwjqb UvKv wewb‡qvM K‡i‡Q| turn its human resources into a productive workforce.
RvZxq ‡KvlvMv‡i Ae`vb Contribution to National Exchequer

†mvbvjx e¨vsK wjwg‡UW miKv‡ii ivR¯^ Avni‡Y ¸iæZ¡c~Y© f~wgKv cvjb K‡i Sonali Bank Limited plays an important role in assisting
the Government in revenue collection. The Bank pays tax
_v‡K| e¨vsK Zvi wbR¯^ Av‡qi Dci AvqKi I f¨vU cwi‡kva K‡i _v‡K|
and value added tax (VAT) on its own income. Besides, SBL
ZvQvov e¨vsK Zvi MÖvnK, mieivnKvix‡ì wbKU n‡Z AvnwiZ AvqKi, f¨vU collects income tax, VAT, tax at source from clients and
I Dr‡m Ki miKvwi †KvlvMv‡i Rgv K‡i _v‡K| 2021 mv‡j e¨vsK AwMÖg Ki, suppliers and deposits the same to the national exchequer.
Dr‡m Ki Ges f¨vU eve` †gvU 10,847.49 wgwjqb UvKv miKvwi †KvlvMv‡i During 2021, the Bank deposited a total of Tk. 10,847.49
million as advance tax, tax at source and VAT to the national
Rgv K‡i‡Q| c~e©eZ©x eQ‡i Gi cwigvY wQj 12,227.10 wgwjqb UvKv|
exchequer which was Tk. 12,227.10 million in 2020. In 2021,
D‡jøL¨, RvZxq ivR¯^ ‡evW© Gi e„nr Ki cÖ`vb BDwbU KZ©„K 2020-21 Ki Sonali Bank Limited has been awarded Appreciation Letter
eQ‡i 2021 mv‡j †mvbvjx e¨vsK wjwg‡UW Òm‡e©v”P f¨vU cÖ`vbKvixÓ cÖwZôvb as one of the “Highest Vat Payers” by Large Tax Payers Unit
wn‡m‡e cÖksmvcÎ AR©b K‡i| (Vat) of National Board of Revenue (NBR) for the assessment
year 2020-21.
(Tk. in million)
Contribution on National Exchequer 01. VAT on Commission 742.41 628.82
2021 2020 VAT on Rent on bank

02. 89.71 72.24
building
03. VAT on Various Expenses 146.40 109.96
Tax on Various Expenses and others Source tax on L/C
04. 74.93 89.22
commission
Tax paid on car
Source tax on buying
Advance tax paid 05. 18.84 109.26
house commission
Tax deducted at source
Source Tax on Interest paid
Employees tax 06. 3853.43 6531.07
by bank
Excise duty
Source Tax on Cash
07. 248.70 107.57
Source Tax on other than Knit & Garments Export subsidy on export
Source Tax on Knit & Garments Export Source Tax on Knit &
08. 176.25 107.49
Source Tax on Cash subsidy on export Garments Export
Source Tax on Interest paid by bank Source Tax on other than
09. 11.13 5.58
Knit & Garments Export
Source tax on buying house commission
10. Excise duty 1865.67 1573.82
Source tax on L/C commission
VAT on Various Expenses

11. Employees tax 68.79 86.49
VAT on Rent on bank building

12. Tax deducted at source 2693.27 2394.97
VAT on Commission 13. Advance tax paid 500.00 500.00

0% 20% 40% 60% 80% 100% 14. Tax paid on car 3.43 1.31
Tax on Various Expenses
15. 354.53 -
and others
Total 10847.49 12227.10
Annual Report 2021

evsjv‡`k e¨vs‡Ki mv‡_ ¯^vÿwiZ MOU Gi wb‡`©kbv I Status of Memorandum of Understanding

djvd‡ji me©‡kl cwiw¯’wZ (MOU) with Bangladesh Bank
weMZ 2013 mv‡ji 3 b‡f¤î evsjv‡`k e¨vs‡Ki mv‡_ †mvbvjx e¨vsK wjwg‡UW With Bangladesh Bank, SBL signed A Memorandum of
Understanding (MOU) on 3 November, 2013 containing
Gi AwW‡UW e¨v‡jÝkxU h_vmg‡q Dc¯’vcb, FY I AwMÖ‡gi cÖe„w× wbw`©ó gvÎvq
some conditions for compliance such as submission
mxgve×KiY, cwiPvjb e¨q n«vmKiY, †kÖYxweb¨vwmZ F‡Yi wecix‡Z jÿ¨ of audited balance sheet, limiting growth of loans and
advances, minimizing operating expenses, achievement
†gvZv‡eK Av`vq, FY I AwMÖ‡gi ch©vß gwbUwis wbwðZKiY, wi¯‹ g¨v‡bR‡g‡›Ui
of recovery target against classified loans, ensuring proper
Dbœqb, kxl© 20 FY †Ljvwc †_‡K Av`vq Ges Ab¨vb¨ cÖfve m¤^wjZ GKwU monitoring of loans and advances, improvement of risk
Memorandum of Understanding (MOU) ¯^vÿwiZ nq| management, recovery of loans from top 20 loan defaulters
and others leverages.
e¨vs‡Ki AwW‡UW e¨v‡jÝ kxU wba©vwiZ mg‡qi g‡a¨B evsjv‡`k e¨vs‡K The audited Balance Sheet of 2021 was submitted to
Dc¯’vcb Kiv n‡q‡Q| FY I AwMÖ‡gi cÖe„w× Ges cwiPvjb e¨‡qi e„w× MOU Bangladesh Bank within the deadline. The annual growth
of loans and advances and increase in operating expenses
G D‡jøwLZ mxgvi g‡a¨B mxgve× wQj| ‡kÖYxK…Z FY n‡Z Av`v‡qi cwigvY were within the limit of the memorandum. The recovery
wba©vwiZ 60,057.20 wgwjqb UvKvi ¯’‡j bM` Av`vq n‡q‡Q 4,343.30 target from classified loans in 2021 was set at Tk. 60,057.20
wgwjqb UvKv Ges bM` e¨ZxZ Av`vq n‡q‡Q 8,246.70 wgwjqb UvKv| million but total cash recovery was Tk. 4,343.30 million and
other than cash was Tk. 8,246.70 million.
GQvov MOU G D‡jøwLZ kZ©vbyhvqx †µwWU wi¯‹ g¨v‡bR‡g›U kw³kvjxKi‡Yi According to the terms and conditions of MOU, Credit
j‡ÿ¨ †µwWU cwjwm, †µwWU wi¯‹ g¨v‡bR‡g›U cwjwm Ges †jvb wiwfD cwjwm Policy, Credit Risk Management Policy and Loan Review
Policy have been revised to improve credit risk management
ch©v‡jvPbvc~e©K ms‡kvab K‡i Ges ms‡kvwaZ cwjwm evsjv‡`k e¨vs‡K `vwLj and the revised policy has been submitted to Bangladesh
Kiv n‡q‡Q Ges Z`vbyhvqx Kvh©µg cwiPvjbv Kiv n‡”Q| ZvQvov, Ab¨vb¨ †Kvi Bank. Actions set out in the policy are being implemented
accordingly. Besides, effective steps have also been taken to
wi¯‹ Gi DbœwZK‡í Kvh©Ki eë¯’v MÖnY Kiv n‡”Q| update management of other core risks.
evwl©K Kg©m¤úv`b Pzw³ Annual Performance Agreement-APA

ivóª gvwjKvbvaxb e¨vsK¸‡jvi Performance m‡šÍvlRbK ch©v‡q DbœxZKi‡Yi A performance contract was introduced in 2015 by the
Financial Institution Division of the Ministry of Finance of the
gva¨‡g iƒcKí 2021 Gi h_vh_ ev¯Íevqb Gi j‡¶¨ MYcÖRvZš¿x evsjv‡`k miKvi
People’s Republic of Bangladesh to achieve “Vision 2021”
Gi A_© gš¿Yvj‡qi Avw_©K cÖwZôvb wefvM 2015 mvj n‡Z ivóª gvwjKvbvaxb through Improving the performance of the state owned
e¨vsK¸‡jvi mv‡_ Performance Contract cÖeZ©b K‡i| Ryb, 2016 ch©šÍ commercial banks of Bangladesh at a satisfactory level.
Performance Contract wU ÒKey Performance Indicators (KPIs)” The performance contract was named as Key Performance
Indicators (KPIs)” till June 2016. In 2016 Finance Ministry
bv‡g AwfwnZ wQj| cieZ©x‡Z 2016 mv‡j A_© gš¿Yvjq ÒKey Performance
introduced financial year based “Annual Performance
Indicators (KPIs)” Pzw³wUi cwie‡Z© A_©eQi wfwËK evwl©K Kg©m¤úv`b Pzw³
Agreement (APA)” replacing the “Key Performance Indicators
(Annual Performance Agreement-APA) cÖeZ©b K‡i|
(KPIs)”.
GiB avivevwnKZvq weMZ 30 Ryb, 2021 ZvwiL A_© gš¿Yvj‡qi Avw_©K Consequently, an “Annual Performance Agreement (APA)”
cÖwZôvb wefv‡Mi mwPe g‡nv`‡qi mv‡_ †mvbvjx e¨vsK wjwg‡UW Gi wmBI GÛ was signed on dated 30th June, 2021 between the Secretary
g¨v‡bwRs wW‡i±i g‡nv`‡qi g‡a¨ 2021-22 (RyjvB,21 n‡Z Ryb,22) A_© of Financial Institution Division and the CEO & Managing
eQiwfwËK evwl©K Kg©m¤úv`b Pzw³ (Annual Performance Agreement Director of Sonali Bank Limited for the Financial year 2021-
2022.
-APA) ¯^v¶wiZ nq|
A_© gš¿Yvj‡qi wb‡`©kbv Abyhvqx ¯^v¶wiZ Pzw³i avivevwnKZvq GKB Zvwi‡L As per the direction of the agreement, Annual Performance
Agreement (APA), 2021-2022 was signed between the
A_©vr 24 Ryb 2021 Zvwi‡L e¨vs‡Ki cÖavb Kvh©vj‡qi m‡¤§jb K‡ÿ wmBI
CEO & Managing Director and the Deputy Managing
GÛ g¨v‡bwRs wW‡i±i g‡nv`‡qi mv‡_ †WcywU g¨v‡bwRs wW‡i±iM‡Yi Ges Directors and the General Managers of Different General
†WcywU g¨v‡bwRs wW‡i±iM‡Yi mv‡_ gvV ch©v‡qi Kvh©vjqmg~‡ni †Rbv‡ij Managers Offices, held on the same date 24th June 2021
in the conference room of the head office of Sonali Bank
g¨v‡bRviM‡Yi Ges gvV ch©v‡qi †Rbv‡ij g¨v‡bRviM‡Yi mv‡_ ¯^ ¯^ AvIZvaxb Limited. The General Managers also signed the mentioned
wcÖwÝcvj Awdm Ges AvÂwjK Kvh©vjq/kvLv cÖavb‡ì mv‡_ Annual agreement with the head of the Principal offices, corporate
Performance Agreement (APA) 2021-22 Pzw³ ¯^v¶wiZ nq| branches and Regional offices. Heads did the same with the
branch Managers under their supervision.
e¨vs‡Ki cl©` mfvq g~jëvb w`K wb‡`©kbv Ges eë¯’vcbv KZ©„c‡ÿi Valuable directions of Board of Directors and close
wbweo Z`viwK‡Z APA 2021-22 Gi mKj Kg©m¤úv`b m~P‡Ki wecix‡Z monitoring of management authority are boosting up the
j¶¨gvÎvmg~n AR©‡bi wbwgË e¨vs‡Ki mKj ch©v‡qi Kg©KZ©ve„›` m‡Pó urge of all level officers to achieve predefined target against
i‡q‡Q| all Key Performance Indicators of APA 2021-22.
86
DIRECTORS' REPORT
2020-21 A_©eQ‡ii evwl©K Kg©m¤úv`b Pyw³i ‡gqv`Kvj MZ 30 Ryb, 2021 The tenure of Annual Performance Agreement for the fiscal
Zvwi‡L mgvß nq| 2020-21 A_©eQ‡ii evwl©K Kg©m¤úv`b Pyw³i (APA) year 2020-21 expires on June 30, 2021. In the final evaluation
P~ovšÍ g~j¨vq‡b Avw_©K cÖwZôvb wefv‡Mi AvIZvaxb mKj ivó«vqZ¡ evwYwR¨K of the Annual Performance Agreement (APA), Sonali Bank
Limited ranked first among the 18 banks, insurance and
e¨vsKmn 18wU e¨vsK, exgv I Ab¨vb¨ Avw_©K cÖwZôv‡bi g‡a¨ ‡mvbvjx e¨vsK
other financial institutions under the Financial Institutions
wjwg‡UW 92.80% b¤î ‡c‡q 1g ¯’vb AR©b K‡i| MZ 27 wW‡m¤î, 2021
Division with a score of 92.60%. CEO & Managing Director
Zvwi‡L AbywôZ mfvq mwPevj‡qi m‡¤§jb K‡¶ Avw_©K cÖwZôvb wefv‡Mi mwPe of Sonali Bank Limited, Mr. Md. Ataur Rahman Prodhan,
g‡nv`‡qi wbKU n‡Z ‡mvbvjx e¨vsK wjwg‡UW Gi wmBI GÛ g¨v‡bwRs wW‡i±i received a certificate and crest in recognition of the success
Rbve ‡gvt AvZvDi ingvb cÖavb ‡mvbvjx e¨vsK wjwg‡UW Gi mvd‡jï ¯^xK…wZ from the Secretary of the Financial Institutions Division of
¯îƒc mvwU©wd‡KU I ‡µ÷ MÖnY K‡ib| the Ministry of Finance on December 27, 2021.
A_© gš¿Yvj‡qi wb‡`©kbv Abyhvqx Kg©m¤úv`b m~PK mg~‡ni j¶¨gvÎvi wecix‡Z Achievement evaluation reports against the targets in
various criteria are being submitted quarterly, half yearly and
AR©b g~j¨vqY cÖwZ‡e`b cÖwZ ‰ÎgvwmK, Aa©-evwl©K Ges evwl©K wfwË‡Z
annual basis in the APAMS of the Ministry of Finance as per
APAMS software G AšÍf~©³ K‡i A_© gš¿Yvj‡q ‡cÖwiZ n‡”Q| direction.
cÖe„w×i cye©vfvm Growth Prospects

evsjv‡`‡ki e¨vswKs Lv‡Z eZ©gv‡b ‡`kx-we‡`kx e¨vsK¸‡jvi g‡a¨ Zxeª The banking industry in Bangladesh has been experiencing
cÖwZ‡hvwMZv cwijwÿZ n‡”Q| †cÖvWv‡±i eûgyLxKiY I e¨vswKs Lv‡Z tough competition amongst the local and foreign banks. The
banking and financing needs of the corporate, retail, SME
A‡Uv‡gk‡bi we¯Í…wZi gva¨‡g K‡c©v‡iU, wi‡UBj, GmGgB evwYR¨ I Ab¨vb¨
trade and other customers are met through diversification
MÖvnK‡ì A_©vqb I e¨vswKs myweav cÖ`vb Kiv n‡”Q| 2021 mv‡j †mvbvjx of products and extending automated banking services.
e¨vsK wjwg‡UW wW‡cvwRU AvniY, FY I AwMÖg, †iwgU¨vÝ cÖevn, wewb‡qvM The business trend up to 31 December, 2021 shows marked
improvement in the areas of deposit mobilization, loans and
BZ¨vw` †ÿ‡Î D‡jøL‡hvM¨ AMÖMwZ mvab K‡i‡Q| mvgwMÖK P¨v‡jÄ †gvKv‡ejvi
advances, remittance and investment as well. To face the
j‡ÿ¨ e¨vsK Zvi †Wwjfvix P¨v‡bj, †UK‡bvjwR, eëmv Dbœqb, †cÖvWv‡±i overall challenge, SBL is strengthening its delivery channel,
eûgyLxKiY, gvbe m¤ú` Dbœqb, kvLv †bUIqv‡K©i m‡e©v”P eënvi Ges adoption of technology, business promotion, product
diversification, human resource development, optimum
cÖvwZôvwbK mvgvwRK `vqe×Zvi g‡Zv welqMy‡jv‡K kw³kvjx Ki‡Q| MÖvnK‡ì
use of branch network and Corporate Social Responsibility
wbivc` I DbœZ GwUGg mvwf©m cÖ`v‡bi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW VISA (CSR). To meet the demand of our clients, SBL has taken
Gi m`m¨c` MÖnY K‡i wfmv KvW© mvwf©m Pvjy K‡i‡Q| G †ÿ‡Î cÖavb Kvh©vj‡qi membership of VISA and introduced VISA card to ensure
safe and modern ATM related services. Help Desk (Phone
KvW© wWwfkb wbiwew”Qbœ MÖvnK †mev cÖ`v‡b wb‡ew`Z| (†ní †W¯‹- †dvb bs-
No. 9560366, 01755583687) at Card Division, Head Office
9560366, †gvevBj bs-01755583687)| is dedicated to ensure customer service.
bZzb P¨v‡jÄmg~n Ges Zv †gvKv‡ejvq Kg©‡KŠkj New Challenges and Coping Strategies
wek^ A_©bxwZ‡Z `ªæZ cwieZ©‡bi Kvi‡Y e¨vsK I Avw_©K cÖwZôvb wbZ¨ bZzb In the backdrop of fast changing global economic scenario,
the banking sector as a whole is facing emerging new
P¨v‡j‡Äi m¤§yLxb n‡”Q| Gi g‡a¨ i‡q‡Q MÖvnK I †÷K‡nvìvi‡ì Pvwn`v challenges. These include among others, meeting the
demands of clients and stakeholders at large, innovation
†gUv‡bv, bZzb e¨vswKs †cÖvWv± D™¢veb, Avw_©K m¤ú`‡K Drcv`bkxj Lv‡Z of new banking products, channeling financial resources
¯’vbvšÍiKiY, gvwbjÛvwis Kvh©µg cÖwZ‡iv‡a Kg©cš’v D™¢veb, `yb©xwZ cÖwZ‡iva to productive sectors, working out new mechanism for
carrying out anti-money laundering activities, penetration of
Ges †mevi gv‡bvbœq‡b Z_¨ cÖhyw³i cÖPjb, cÖwZwbqZ AvMZ SzuwK jvN‡e †KŠkj information technology to combat corruption and improve
service delivery, designing appropriate strategies to mitigate
cÖYqb Ges MÖvnK‡ì Pvwn`v iÿvq myôz cwi‡ek wbwðZKiY D‡jøL‡hvM¨| emerging risks and ensuring control environment to protect
the interest of clients.
bZzb P¨v‡jÄ †gvKv‡ejvq †mvbvjx e¨vsK wjwg‡UW K…wl, K…wlwfwËK wkí cÖKí, To cope with these new and emerging challenge Sonali Bank
Limited has laid emphasis on agriculture, agro-industries,
Avg`vwb cwic~iK cÖKí, GmGgB wfwËK Ges Kg©ms¯’vb m„wóKvix cÖKímgy‡n import substitution projects, SME-based energy projects and
we‡klfv‡e bRi w`‡”Q| e¨vsK mgv‡Ri wewfbœ †kÖYxi MÖvnK‡ì Rb¨ bZzb bZzb other employment generating activities. It has launched new
products for different sections of the community. To sustain
†cÖvWv± D™¢veb K‡i‡Q| cÖwZ‡hvwMZvgyjK evRv‡i wb‡R‡ì Ae¯’vb a‡i ivLvi j‡ÿ¨ its position in the competitive market, all of 1,227 branches of
the Bank has been taken to automation with CBS installation
MÖvnK‡mevi gv‡bvbœq‡b B‡Zvg‡a¨ e¨vs‡Ki 1,227wU kvLvi me¸‡jv‡KB wmweGm Gi successfully to provide improved customer services.
AvIZvq Avbv n‡q‡Q| GQvov ê‡`wkK †iwgU¨vÝ Avni‡Yi j‡ÿ¨ e¨vs‡Ki wbR¯^ Besides, a web-based software developed in-house called
Annual Report 2021

D™¢vweZ Ò†iwgU¨vÝ g¨v‡bR‡g›U wm‡÷g cøvm (AviGgGm cøvm)ÕÕ 1,227wU kvLv‡ZB “Remittance Management System Plus” (RMSPlus) has been
installed at 1,227 branches for receiving foreign remittances.
Bb÷j Kiv n‡q‡Q| Af¨šÍixY I ‰e‡`wkK †iwgU¨vÝ GB wm‡÷‡gi gva¨‡g cwiPvwjZ Inland and foreign remittance transactions are now carried
n‡”Q| Kg©KZ©v-Kg©Pvix‡ì Kg©`ÿZv e„w× e¨vs‡Ki wPwýZ gyL¨ D‡`¨vM| G j‡ÿ¨ out using this system. The capacity building of employees
has been identified as the major reform agenda. The Bank
Kg©xevwnbxi `ÿZv I Kg©ÿgZv e„w×i Rb¨ e¨vsK wbqZ cÖ‡Póv Pvwj‡q hv‡”Q| has been continuing its efforts to improve the efficiency of
employees and effectiveness of service delivery mechanism.
e¨vswKs eëmvq g~jab ch©vßZv AZ¨šÍ MyiæZ¡c~Y©| eZ©gv‡b e¨vs‡Ki g~jab Maintaining adequate capital is very important in banking
business. Currently there is a considerable surplus of
wKQzUv m‡šÍvlRbK ch©v‡q i‡q‡Q| g~jab m‡šÍvlRbK ch©v‡q ivLvi j‡ÿ¨ e¨vsK capital in the Bank. To maintain the surplus capital, bank
†kÖYxK…Z F‡Yi nvi GK As‡K bvwg‡q Avbv, Avq evov‡bv, Ae‡jvcbK…Z has undertaken a number of steps like bringing down
the percentage of classified loans to a single digit, raising
FY †_‡K Av`vq, bb-dv‡ÛW eëmv n‡Z Avq e„w×mn wewfbœ Kvh©µg nv‡Z income to a satisfactory level, recovery of written-off loans,
wb‡q‡Q| wbqZ SzuwK †gvKv‡ejvq e¨vsK MvBWjvBb cÖ`vb K‡i‡Q Ges DaŸ©Zb increasing income from non funded business and so on.
To mitigate the emerging risks, the Bank has introduced
I ga¨g ch©v‡qi wbe©vnx‡ì cÖwkÿY cÖ`vb Ki‡Q| guidelines for the purpose and has been providing training
to senior and mid-level executives.
AwWUi wb‡qvM Appointment of Auditors

GKbvweb Ges AvwRR nvwjg Lv‡qi †PŠayix, PvUvW© GKvD›U¨v›Um dvg©Øq ACNABIN and Aziz Halim Khair Choudhury, Chartered
e¨vs‡Ki 2021 mv‡ji wbixÿv Kvh©µg m¤úbœ K‡i‡Q| e¨vs‡Ki Avmbœ 15Zg Accountants, carried out the audit of the Bank in 2021.
Audit firms will be appointed for 2022 in the upcoming 15th
evwl©K mvaviY mfvq 2022 mv‡ji wbixÿv Kvh©µg m¤ú‡bœi Rb¨ AwWU dvg©
Annual General Meeting.
wb‡qvM Kiv n‡e|
K…ZÁZv ¯^xKvi Acknowledgements

e¨vs‡Ki cwiPvjbv cl©` Gi m`m¨MY e¨vs‡Ki AvgvbZKvix, FYMÖnxZv, The members of the Board of Directors of the Bank would
like to place on record their gratitude to the depositors,
c„ô‡cvlK, ïfvbya¨vqx, wbixÿK I Ab¨vb¨ ¯^v_© mswkøó‡ì wbKU Zuv‡ì
customers, patrons, well-wishers, auditors and other
Ae¨vnZ mg_©b I mn‡hvwMZvi Rb¨ K…ZÁZv Ávcb Ki‡Q| Zuv‡ì µgvMZ stakeholders for their continued support and cooperation,
mg_©b, mn‡hvwMZv I w`K wb‡`©kbvq e¨vsK G Ae¯’v‡b †cuŠQv‡Z ‡c‡i‡Q| Avgiv without which the Bank would not have been able to
make progress. We are also indebted to Finance Division
evsjv‡`k miKv‡ii we‡klZt A_© gš¿Yvj‡qi A_© wefvM I Avw_©K cÖwZôvb
and the Financial Institutions Division of the Ministry of
wefvM, evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ Kwgkb, Awdm Finance, Bangladesh Bank, Bangladesh Securities and
Ae `¨v †iwR÷ªvi Ae R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m Ges mswkøó miKvwi Exchange Commission, Office of the Registrar of Joint
Stock Companies and Firms and other relevant government
ms¯’vi wbKU Zv‡ì Ae¨vnZ mg_©b I civgk© `v‡bi Rb¨ K…ZÁZv Rvbvw”Q| agencies for their cooperation and guidance.
e¨vs‡Ki mvwe©K DbœwZK‡í wmBI GÛ g¨v‡bwRs wW‡i±i Gi †bZ…‡Z¡ wmwbqi The unrelenting efforts put in by senior management team
g¨v‡bR‡g›Umn e¨vs‡Ki mKj ¯Í‡ii Kg©KZ©v-Kg©PvixM‡Yi AvšÍwiK wbijm and the members of staff under the leadership of the CEO &
Managing Director to bring about overall improvement in the
cÖ‡Póv we‡klfv‡e cÖksmvi `vex iv‡L| Bank’s business performance deserve special appreciation.
On behalf of the Board of Directors

cwiPvjbv cl©` Gi c‡ÿ
(wRqvDj nvmvb wmwÏKx) (Ziaul Hasan Siddiqui)

†Pqvig¨vb Chairman
88
DIRECTORS' REPORT
METRO RAIL
SPEED UP THE LIFE OF
DHAKA RESIDENTS
Annual Report 2021

CORPORATE
GOVERNANCE
REPORT
Sonali Bank Limited (SBL) was registered as a Public Limited Company under the Companies Act, 1994 on 03 June, 2007
with the Registrar of Joint Stock Companies and Firms. Bangladesh Bank issued Banking Licence on 05 June, 2007 under
the Bank Company Act, 1991 (amended in 2018). SBL took over the business of Sonali Bank on 15 November, 2007 with all
its assets, liabilities, benefits, rights, powers, authorities, privileges, borrowing and obligations as a going concern under a
Vendor’s agreement signed between the Government of the People’s Republic of Bangladesh and SBL with retrospective
effect from 01 July, 2007. Since then, it enjoys the status of a corporate entity focusing on ensuring proper delegation,
transparency and accountability in the organization through its corporate governance policies and practices. The Bank is
structured and developed in accordance with the accepted corporate governance practices and guidelines set by Bangladesh
Bank and the Bangladesh Securities and Exchange Commission’s (BSEC) notifications in this regard. As a 100% state owned
commercial bank, it attaches utmost priority in ensuring a well defined corporate governance standard.
I. Corporate Culture: Board of Directors, Chairman and CEO

I.a. Formation of Board of Directors:
The newly amended Section 15 of the Bank Company Act, 1991 (amended in 2018) includes provisions for prior approval of
Bangladesh Bank before the appointment of new bank directors, as well as dismissal, termination or removal of any director
from the post; director’s fit & proper criteria; maximum number of directors; appointment of independent directors; etc.
l.a.1. Size of the Board of the Bank:

The number of the Board members is within the range set by the Bank Company Act-1991 (amended in 2018), Bangladesh
Bank and the Articles of Association of the Bank and Bangladesh Securities and Exchange Commission notification No.
SEC/ CMRRCD/2006- 158/134/Admin/44 of 07 August 2012. All Directors of SBL are Non-Executive Directors except the
Managing Director. At present, the Board comprises of the following members including the Managing Director.
SI. Name Status with the Bank

1 Mr. Ziaul Hasan Siddiqui Chairman
2 Mr. A.B.M Ruhul Azad Director (Joined on 15.06.2021)
3 Mr. A. K. M. Kamrul Islam FCA, FCS Director
4 Mr. Ishtiaque Ahmed Chowdhury Director
5 Dr. Daulatunnaher Khanam Director
6 Mr. Md. Mofazzal Husain Director (Retired on 12.05.2022)
7 Mr. Molla Abdul Wadud Director
8. Professor Dr. Mohammad Kaykobad Director
9. Dr. Md. Matiur Rahman Director (Joined on 10.02.2022)
10. Mr. Md. Ataur Rahman Prodhan CEO & Managing Director
90
CORPORATE GOVERNANCE
I. a.2. Appointment of Directors:

Under section 15(4) of the Bank Company Act, 1991 (amended in 2018), every banking company, other than specialized
banks, at the time of taking prior approval from Bangladesh Bank for appointing/ re-appointing directors should furnish the
following documents along with the application:
a. Personal information of the nominated person;
b. Nominated person’s declaration;
c. ‘Declaration for confidentiality’ by the nominated person;
d. In case of Independent director, the approval letter from Bangladesh Securities and Exchange commission;
e. In case of Independent director, a declaration of the directors concern;
f. CIB report of the nominated person;
g. Updated list of the Directors.
The members of the Board of Directors of SBL are appointed as per the provision of the Companies Act-1994, the
BanCompany Act-1991 (Amended in 2018) and Memorandum and Articles of Association of the Bank. SBL always complies
with the guidelines of Bangladesh Bank regarding appointment of Directors.
I.a.3. Independent Director:

All the members of the Board, as nominated by the Government, are professionally and financially literate and experienced.
In line with the requirement of the notification of Bangladesh Securities and Exchange Commission guidelines, all of the
Directors of SBL are justifiably considered as independent Director. It is because:
a) Each of the Directors holds less than one percent (1%) shares of the total paid up capital of the Bank;
b) On the basis of family relationship, the Directors are not connected with the Bank’s shareholder who holds one percent
(1%) or more shares.
c) The Directors are not sponsors of the company.
d) The members of the family of the Directors also do not hold any share of the company.
I.a.4. Board members’ independence:

Members of the Board actively take part in deliberations in Board meetings on various issues as they are independent in
expressing their views and opinions freely. They don’t have any sorts of business relationship or involvement with the Bank
management.
I.a.5.lnformation regarding Directors:

Banks take the following steps regarding Director information:
a. Keep an updated list of bank Directors.
b. Banks send a Directors’ list to other banks or financial institutions immediately after the appointment or release of
Director.
c. Banks display a list of Directors in the website and update it on a regular basis.
I.a.6. Chairman of the Board and Chief Executive Officer:

Two separate individuals occupy the positions of the Chairman of the Board and the Chief Executive Officer. The Chairman
of the Bank is nominated by the Government and duly approved by the Board. The Board also approves the roles and
authorities of the Chairman and CEO which have been clearly defined in BRPD Circular No. 11 and 18 of 27 October 2013
and articles of association of the Bank.
I.a.7. Responsibilities of the Board of Directors

To ensure good governance in the Bank management it is essential to have specific demarcation of responsibilities and
authorities among controlling bodies over bank affairs. In the Bank Company Act, 1991 (amended in 2018) the newly
included Section 15(kha) & (ga) give responsibility to the Board of Directors for establishing policies for the Bank company,
for risk management, internal controls, internal audit and compliance and for ensuring their implementation. In line with the
directions of BRPD circular 11 /2013 the BOD takes the following responsibilities:
Annual Report 2021

a) Work-planning and strategic management e) Financial management

b) Credit and risk management f) Appointment of Managing Director and CEO
c) Internal control management g) Regulatory responsibilities
d) Human resources management and development h) Formation of Board supporting committees
I.b. Responsibilities of the Chairman of the Board of Directors:

As the Chairman of the Board of Directors (or Chairman of any committee formed by the Board or any Director) does not
personally possess the jurisdiction to apply executive authority, he does not participate in, or interfere with the administrative
or operational and routine affairs of the Bank, rather he conducts on-site inspection of any bank-branch or financing activities
under the purview of the oversight responsibilities of the Board. He calls for information relating to bank’s operation or asks
for inquiry into such affairs; he submits such information or investigation report to the meeting of the Board or the Executive
Committee and with the approval of the Board, he effects necessary action thereon in accordance with the set rules through
the CEO.
I.b.1. Responsibilities and authorities of the CEO and Managing Director

The CEO & Managing Director of the Bank discharges the responsibilities and affects the authorities as follows:
a) In terms of the financial, business and administrative authorities vested upon him by the board, the CEO & MD discharges
his own responsibilities. He remains accountable for achievement of financial and other business targets by means of
business plan, efficient implementation thereof and prudent administrative and financial management.
b) The CEO & MD ensures compliance of the Bank Company Act, 1991 and other relevant laws and regulations in
discharging routine functions of the Bank.
c) At the time of presenting any memorandum in the Board Meeting or Board Committee Meeting, the CEO & MD
points out if there is any deviation from the Bank Company Act, 1991 (amended in 2013) and other relevant laws
and regulations.
d) The CEO & MD reports to Bangladesh Bank of any violation of the Bank Company Act, 1991 (amended in 2013) or
of other laws/regulations.
e) The recruitment and promotion of all staffs of the bank except those in the two tiers below him rests on the CEO
& MD. He acts in such cases in accordance with the approved service rules on the basis of the human resources
policy and sanctioned strength of employees as approved by the Board.
f) The authority relating to transfer and disciplinary measures against the staff, except those at two tiers below the
CEO & MD, rests on him, which he applies in accordance with the approved service rules. Besides, under the
purview of the human resources policy as approved by the Board, he nominates Officers for training etc.
I.c. Appointment of Chief Financial Officer (CFO) and Chief Information Technology Officer (CITO)
Mr. Subhash Chandra Das FCMA, FCA, Chief Financial Officer, is a skilled banker with his ornamented enthusiasm and
charismatic Charecteristics. He obtained B.Com (Hons) with distinction and M.Com in Accounting from the University of
Dhaka. He is Fellow member of the Institute of Chartered Accountants of Bangladesh (ICAB) and the institute of Cost
and Management Accountants of Bangladesh (ICMAB). He is also a Diplomaed Associate of the Institute of Bankers of
Bangladesh (DAIBB).
He has 19 years banking experience covering Bangladesh Bank, Asian Development Bank (ADB), World Bank (WB) Project
and Janata Bank Limited in his portfolio. Before joining Sonali Bank Limited, he was the General Manager & Chief Audit
Officer (CAO) of Janata Bank Limited. He has a supervising involvement in Foreign Exchange Management Issues, Foreign
Direct Investment (FDI) issues, Govt. Treasury Management, Capital Management, Risk Management, Budgetary Control,
Management Information, Social Safety Net Program, Fiscal related activities etc. He has significant role in establishing strong
corporate governance as well as strong control environment and robust compliance culture. He has been playing his role
appreciably in the business growth of the Bank.
He has received Letter of Appreciation from the Asian Development Bank (ADB) for his outstanding performance. In his
challenging and dynamic career, he has attended various seminars, symposiums and number of training courses in home
and abroad. He has travelled a number of countries including Canada, Germany, Thailand etc.
Mr. Mohammad Rezwan Al Bakhtiar, Chief Information Technology Officer of the Sonali Bank, has been appointed based on
the competency following the circular of the Bank and guidelines of the Bangladesh Bank.
I.d. Appointment of Company Secretary and Head of Internal Audit
To ensure the world’s best corporate governance practices, a high executive (General Manager) has been deployed to carry
on the secretarial functioning and another General Manager has been deployed as the Head of Internal Audit to strengthen
the overall internal control and compliance.
92
I.e. Evaluation of the functioning of CEO and Managing Director by the Board
The Board of SBL has a policy to evaluate the CEO and Managing Director annually through various reports like performance
report of the Bank, taking status of various assignments given by the Board to the CEO and the management, taking
implementation status of budget, operational results etc.
I.f. Annual evaluation of the functioning of CFO by the Management

In line with the terms of reference of appointment, the performance of the CFO is evaluated by the management at a regular
interval.
I.g. Number of Board meetings in 2021

51 (Fifty One) Board meetings of the SBL were held in 2021. A detailed statement showing number of Board meetings held
and status of participation of the Directors is given below:
Status with the Meeting Honourium
SI. Name Attended Remarks
Bank Held Received *
1 Mr. Ziaul Hasan Siddiqui Chairman 51 50 400,000 -
2 Mr. A.B.M Ruhul Azad Director 51 30 240,000 (Joined on 15.06.2021)
3 Mr. Md. Fazlul Hoque Director 51 20 160,000 (Retired on 03.06.2021)
4 Mr. A K M Kamrul Islam, FCA,FCS Director 51 51 408,000 -
5 Mr. Ishtiaque Ahmed Chowdhury Director 51 45 360,000 -
6 Dr. Daulatunnahar Khanam Director 51 51 408,000 -
7 Mr. Md. Mofazzal Husain Director 51 51 408,000 -
8 Mr. Molla Abdul Wadud Director 51 51 408,000 -
9 Professor Dr. Mohammad Kaykobad Director 51 51 408,000 -
10 Mr. Md. Ataur Rahman Prodhan CEO & MD 51 47 - -
*Tk 8000.00 per meeting
II. BOARD COMMITTEES

ll.a. Executive Committee
As per the BRPD circular No. 11 of 27 October 2013, an Executive Committee has been formed with Directors for quick
decision on urgent matters and execution of routine work in between the Board meeting. Executive Committee performs
according to their terms of reference determined by the Board of Directors in line with Bangladesh Bank guidelines.
Executive Committee
2 Mr. A.B.M Ruhul Azad Director (Joined on 15.06.2021) Member
3 Mr. Md. Fazlul Haque Director (Retired on 03.06.2021) Member
6 Mr. Md. Ataur Rahman Prodhan CEO & MD Member
II.a.1. Organizational structure:

i. Members of the committee are nominated by the Board of Directors from themselves;
ii. The Executive Committee comprises of maximum 06 (six) members;
iii. Members are appointed for a 03 (three)-year term of office;
iv. Chairman of the Board of Directors is the Chairman of Executive Committee;
v. Company Secretary of the Bank is the Secretary of the Executive Committee.
II.a.2. Qualifications of the Members:
i. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating a
Director to the committee;
ii. Each member is capable of making valuable and effective contributions in the functioning of the committee;
Annual Report 2021

iii. To perform his or her role effectively each committee member has adequate understanding of the detailed responsibilities
of the committee membership as well as the bank’s business, operations and its risks.
II.a.3. Roles and Responsibilities of the Executive Committee:

i. The Executive Committee can decide or can act in those cases as instructed by the Board of Directors that are not
specifically assigned on full Board through the Bank Company Act, 1991 and other laws and regulations.
ii. The Executive Committee can take all necessary decisions or can approve cases within power delegated by the Board
of Directors.
iii. All decisions taken in the Executive Committee should be ratified in the next Board meeting.
ll.a.4. EC Meetings in 2021
i. The Executive Committee sits anytime as it may deem fit. 09 (Nine) meetings of the Executive Committee were held in
2021. A statement on Executive Committee is given below:
Status with Meeting Honourium

SI. Name Attended Remarks
the Bank Held Received *
1 Mr. Ziaul Hasan Siddiqui Chairman 9 9 72,000 -
3 Mr. Md. Fazlul Haque Director 9 4 32,000 (Retired on 03.06.2021)
5 Mr. Molla Abdul Wadud Director 9 9 72,000
6 Mr. Md. Ataur Rahman Prodhan CEO & MD 9 9 - -

ii. The committee invites Chief Executive Officer, Head of Internal Audit or any other Officer to its meetings, if it deems
necessary;
iii. To ensure active participation and contribution by the members, a detailed memorandum is distributed to committee
members well in advance before each meeting;
iv. All decisions/observations of the committee are noted in minutes.
ll.b. Audit Committee
As per Bangladesh Securities and Exchange Commission notification No. SEC/ CMRRCD/ 2006-158/134/Admin/44 of 07
August 2012, SBL has an Audit Committee as a sub-committee of the Board of Directors in order to strictly observe the terms
of references issued by Bangladesh Bank
BRPD Circular No. 11 of 27 October 2013. The Audit Committee assists the Board of Directors in ensuring internal control
system. It also certifies that the financial statements reflect true and fair view of the state of affairs of the company. It issues
guidelines for ensuring a good monitoring system within the business.
II.b.1. Organizational structure:
i. Members of the committee are nominated by the Board of Directors from the Directors;
ii. The Audit Committee comprises of maximum 05 (five) members,
iii. Audit Committee comprises with Directors who are not Executive Committee members;
iv. Members are appointed for a 03 (three) year term of office;
v. Company Secretary of the Bank is the Secretary of the Audit Committee.
Audit Committee
03 Dr. Daulatunnahar Khanam Director Member
94
II.b.2. Qualifications of the Members:

i. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating a
ii. Each member is capable of making valuable and effective contributions in the functioning of the committee;
iii. To perform his or her role effectively each committee member has adequate understanding of the detailed responsibilities
iv. Professionally experienced persons in banking/ financial institutions specially having educational qualification in Finance,
Banking, Management, Economics, Accounting gets preference in forming the committee.
II.b.3. Roles and Responsibilities of the Audit Committee
(i) Internal Control:
1. Evaluate whether management is setting the appropriate compliance culture by communicating the importance of
internal control and the management of risk and ensuring that all employees have clear understanding of their roles and
responsibilities;
2. Review management’s actions in building computerization of the bank and its applications and bank’s Management
Information System (MIS);
3. Consider whether internal control strategies recommended by internal and external auditors have been implemented
by the management;
4. Consider reports relating to fraud, forgery, deficiencies in internal control or other similar issues detected by internal
and external auditors and inspectors of the regulatory authority and place it before the Board after reviewing whether
necessary corrective measures have been taken by the management.
(ii Financial Reporting:
1. Audit Committee checks whether the financial statements reflect the complete and concrete information and determine
whether the statements are prepared according to the existing rules & regulations and standards enforced in the country
and as per relevant prescribed accounting standards set by Bangladesh Bank;
2. Discuss with management and the external auditors to review the financial statements before its finalization.
II.b.4. Meetings of the Committee
11(Eleven) meetings of the Committee were held in 2021. A statement on Audit Committee is given below:
Meeting Honourium
SI. Name Status with the Bank Attended Remarks
Held Received *
1 Mr. A.K.M. Kamrul Islam FCA, FCS Director 11 11 88,000 -
(iii)Internal Audit:
1. Audit Committee monitors whether internal audit working independently from the management.
2. Reviews the activities of the internal audit and the organizational structure and ensure that no unjustified restriction or
limitation hinders the internal audit process;
3. Examines the efficiency and effectiveness of internal audit function;
4. Examines whether the findings and recommendations made by the internal auditors are duly considered by the
management or not.
(iv) External Audit :
1. Reviews the performance of the external auditors and their audit reports;
2. Examines whether the findings and recommendations made by the external auditors are duly considered by the
management or not.
3. Makes recommendations to the Board regarding the appointment of the external auditors.
(v) Compliance with Existing laws and Regulations:
Annual Report 2021

Reviews whether the laws and regulations framed by the regulatory authorities (Central Bank and other bodies) and internal
regulations approved by the Board are being complied with.
(vi ) Other Responsibilities:

1. Submits compliance report to the Board on quarterly basis on regularization of the omission, fraud and forgeries and
other irregularities detected by the internal and external auditors and inspectors of regulatory authorities;
2. External and internal auditors submits their related assessment report, if the committee solicit;
3. Performs other oversight functions as desired by the Board of Directors and evaluates the committee’s own performance
on a regular basis.
II.b.4. Head of Internal Audit’s access to Audit Committee
Head of internal control and compliance has direct access to the Audit Committee and he attends the Audit Committee
meetings regularly.
II.c. Risk Management Committee

ll.c.1. Organizational Structure:
1. Members of the committee are nominated by the Board of Directors from themselves;
2. The Risk Management Committee comprises of maximum 05 (five) members;
3. Members are appointed for a 03 (three) year term of office;
4. Company Secretary of the Bank is the Secretary of the Risk Management Committee.
As per the Bank Company Act, 1991 (amended in 2018) and BRPD circular No. 11/2013, SBL has formed the Risk Management
Committee approved by the Board of Directors comprising 04 (four) members which are disclosed below:
Risk Management Committee

2 Mr. A.B.M Ruhul Azad Director Member (Joined on 15.06.2021)
3 Mr. Md. Fazlul Haque Director Member (Retired on 03.06.2021)
4 Dr. Daulatunnahar Khanam Director Member
II.c.2. Qualifications of the Members:

1. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating a
2. Each member is capable of making valuable and effective contributions in the functioning of the committee;
3. To perform his or her role effectively each committee member has adequate understanding of the detailed responsibilities
II.c.3. Roles and responsibilities of the Committee
i)Risk identification & control policy:
Formulation and implementation of appropriate strategies for risk assessment and its control is the responsibility of the
Board Risk Management Committee. Board Risk Management Committee monitors risk management policies & methods
and amend it if necessary. The committee reviews the risk management process to ensure effective prevention and control
measures.
ii)Construction of organizational structure:

The responsibility of Risk Management Committee is to ensure an adequate organizational structure for managing risk
within the bank. The Risk Management Committee supervises formation of separate management level committees and
monitors their activities for the compliance of instructions of lending risk, foreign exchange transaction risk, internal control
&compliance risk, money laundering risk, information & communication risk including other risk related guidelines.
96
iii)Analysis and approval of Risk Management policy:

Risk management policies & guidelines of the Bank is reviewed annually by the committee. The committee proposes
amendments if necessary and send it to the Board of Directors for their approval. Besides, other limits including lending limit
are reviewed at least once annually and is amended, if necessary.
iv)Storage of data & Reporting system:
Adequate record keeping & reporting system developed by the Bank management is approved by the Risk Management
Committee. The committee ensures proper use of the system. The committee minutes its proposal, suggestions and
summary in a specific format and informs the Board of Directors.
v)Monitoring the implementation of overall Risk Management Policy:
Board Risk Management Committee monitors proper implementation of overall risk management policies. They monitor
whether proper steps have been taken to mitigate all risks including lending risk, market risk, and management risk.
vi)Other responsibilities:
1. Committee’s decision and suggestions are submitted to the Board of Directors quarterly in short form;
2. Comply instructions issued time to time by the controlling body;
3. Internal & external auditors submit respective evaluation report whenever required by the committee.
II.b.4. Meetings of the Committee
Meeting Honourium
SI. Name Status with the Bank Attended Remarks
Held Received *
3 Mr. Md. Fazlul Haque Director 7 3 24,000 (Retired on 03.06.2021)

III. INTRNAL CONTROL AND COMPLIANCE RISK MANAGEMENT
Internal control and compliance policy is the policies and procedures established and implemented alone, or in concert with
other policies or procedures, to manage and control a particular risk or business activity, or combination of risks or business
activities, to which the Bank is exposed or in which it is engaged. It refers to the mechanism in place on a permanent basis
to control the activities in an organization, both at a central and at a departmental/ divisional level.
III.a. Internal control Objectives
The primary objective of internal control system in SBL is to help the Bank perform better through the use of its resources.
Through internal control system Bank identifies its weaknesses and takes appropriate measures to overcome the same. The
main objectives of internal control are as follows:
z Performance objectives: To maintain the efficiency and effectiveness of overall operating activities.
z Information objectives: To ensure the reliability, completeness and timelines of financial and management
information.
z Compliance objectives: To ensure the robust compliance with applicable laws and regulations.
III.b. Establishment of internal control and compliance
The Board of SBL is entrusted to establish suitable system of internal control and compliance. SBL has formed MANCOM
(Management Committee) to identify measure, monitor and control the risks through framing required policies and
procedures with the approval of the Board of Directors.
The policy of managing operational risk through internal control and compliance is approved by the Board taking into
account the relevant guidelines of Bangladesh Bank.
In setting out a strong internal control framework within the organization, the MANCOM of Sonali Bank Limited is responsible
for overall management of the Bank. The committee puts in place policies and procedures to identify measure, monitor
and control these risks and monitors the adequacy and effectiveness of the internal control system based on the Bank’s
established policy and procedure.
Annual Report 2021

III.c. Key features of ICC of the Bank

Bank has a sound, efficient and effective internal control and compliance system. The Bank’s Board, Audit Committee, Head
of ICC, CEO& MD and senior management (MANCOM) ensure that appropriate internal controls are in place. All employees
are ultimately responsible for operating and maintaining an efficient internal control system at their respective levels.
Typically, management’s internal control system has components which direct attention to various areas and functions
within the Bank. Among these components are:
1. Control Environment
2. Communication
3. Assessing and Managing Risk
4. Control Activities and
5. Monitoring
Bank has sound policy guidelines in order to ensure an effective control over its process in various fields i.e. credit, human
resources, finance and accounts, treasury, audit, customer service etc. It has been suggested that there should be policy
guidelines/manuals for each Division’s function which may be as follows:
a. Credit Policy Manual/Guidelines.
b. Operations Manual
c. Finance & Accounting Manual
d. Treasury Manual
e. Human Resource Policy/ Manual
f. Internal Control & Compliance Policy/Manual
g. Loan Review Policy
h. Assets Liabilities Management Policy,
i. Liquidity Management Policy
j. Various Risk Management Policy/Guidelines.
Bank has a separate and independent Audit & Inspection Mechanism. Under ICC, currently there are three separate divisions
i.e. Audit & Insp. Division, Control and Monitoring Divisions and Compliance Division. Each head of the divisions works
independently and separately reports to audit committee and board if required. Internal Control and Compliance Division
of SBL is responsible for checking compliance of internal control system. Any deviation is reported to the top management,
Audit Committee and to the Board and necessary steps is taken to rectify the same as soon as possible. As per Bangladesh
Bank guidelines and to strengthen the control and compliance mechanism, at present, ICCD acts as an ICC secretariat.
Inspection and Audit Division, MISD, Vigilance and Control Division are now working as ICC’s functions.
In line with section 15 (c) of Bank Company Act 1991 (amended in 2013), SBL has formulated the following new detailed
structure of ICC which will be in operation within the shortest possible time:
III.d. Annual review of ICC policy by the Board

The Board of Directors at a regular interval reviews the internal control system and necessary modification is done to
improve the system and to incorporate latest changes in the technology.
III.e. Regulatory inspection

A comprehensive inspection has been conducted by Bangladesh Bank on Head Office and selected branches in 2021
covering the position of 31 December 2020. Major core risks areas likely credit risk, foreign exchange risk, ICC risk etc. have
been addressed.
III.f. Statutory audit

The Board appointed M/S. ACNABIN, Chartered Accountants and Aziz Halim Khair Choudhury, Chartered Accountants, to carry
on statutory audit of the Bank for the financial year 2021. Both the audit firms selected 60 (sixty) branches and Head Office
as a part of their annual audit program in combine which covers more than 80% of the risk weighted assets of the Bank. After
completion of audit functioning, the statutory auditors issued a clean report to the shareholders on the Financial Statements of
the Bank for the period ended 31 December 2021.
To avoid the conflict of interest, SBL does not engage its statutory auditors to perform the following services:
A. Internal audit services
B. Valuation services
C. Actuarial services
98
D. Corporate governance certification

E. Financial system designs
F. Broker dealer services or
G. Any other services as deemed appropriate by the Audit Committee and the Board.
III.g. Review of Corporate Governance of the Bank by third party
Whether best practices corporate governance culture is prevailing in the Bank or not, independent evaluator, Shiraz Khan
Basak & Co, Chartered Accountants, has been appointed for the year 2021 to evaluate the practice of corporate governance
Board of Directors
Executive Audit Risk Management

Committee Committee Committee
CEO & MD
Departmental
MANCOM
Risk Management
Head of IC
C
Head of Control Head of Audit Head of Compliance
Control &
Monitoring Audit & Audit & Foreign
Inspection Inspection Exchange Audit Compliance Compliance
Division (CMD) Division-Internal Division-External
Division (AID-1) Division (AID-2) & Inspection
Compliance up to Bangladesh Bank

Audit & Inspection up to All All Ad corporate Branch Audit Compliance
Corporate Level Branch Branches branches &
(Below foreign Commercial
Corporate branches/ Compliance of Audit Com.
Branch Div. Office, Dept. foreign exchang e
Department Controlling Offices level) sub.
Audit & Foreign
Division& (GMo, Po, Ro) branches& Statutor
y
Controlling Sinsidiaries Audit Com.
Offices
(GMO, Po, Ro) Audit Cell-Local Compliance of the
Office/Corporate Others External
rest of th
e Audit Com.
branch and others
and issue a certificate. Accordingly in line with the BSEC circular, they carry on the assignment and issued a satisfactory
certificate regarding the same.
IV.RISK MANAGEMENT
IV.a.1. Risk management methodology
SBL’s risk management strategy is based on a clear understanding of various risk, discipline risk assessments, measurement
procedures and continuous monitoring. SBL continues to focus on improving its Risk Management System not only to
ensure compliance with regulatory requirements but also to ensure better risk- adjusted return and optimal capital utilization
keeping in mind of the business objectives. For sound risk management, SBL manages risk in Strategic layer, Managerial layer
and Operational layer.
Risk Management activities of Bank can be divided into following ways:
1 Risk Identification
2 Risk Analysis
Annual Report 2021

3 Risk Measurement
4 Risk Price
5 Risk Monitoring and Controlling
6 Risk Mitigation
IV.a.2. Method of Risk Mitigation:

SBL has separate mitigation methodology for each risk. The vital and first step of risk mitigation is the identification
and analysis of risks. To do that a Risk Management Paper is prepared covering all potential risks in banking. The Risk
Management Committee discusses on the paper in its monthly meeting, find out the risks, gives direction to mitigate them.
Risk Management Division has introduced Risk Management Check List (RCL) for attaining ‘Satisfactory rating on various
segments of core risks through proper implementation of Core Risk Management Guideline, which is being maintained at
all offices/ branches of the Bank.
IV.MORAL ISSUES, ETHICAL STANDARDS AND COMPLIANCE

SBL takes care of both the dimensions (the way they operate and the types of companies they finance) in its operation, many
ethical issues such as the environmental conduct of business customers are now a part of standard risk assessment and
prudent banking. It is becoming increasingly common practice for banks to have established guidelines for their staff on the
major ethical issues covered. SBL has been trying to follow the Equator Principles, a set of guidelines developed by the banks
for managing social and environmental issues related to the financing of development projects.
V.PROCESS OF REMUNERATION
Separate committee of the Board on remuneration has not been formed in SBL as it is not permitted by the Bangladesh
Bank. Being a state owned commercial bank, fixation and payment of remunerations to every level of employees is done by
Human Resources Division as per the national pay scale.
VI.a. Remuneration of Directors, Chairman and Managing Director

As per Bangladesh Bank BRPD Circular No 11/2015, the Directors receive remuneration of Tk. 8,000.00 (Eight thousand)
for attending a Board meeting or any committee meeting. The lists of total meetings held and remuneration paid to the
Directors, Chairman and Managing Director are shown in this report.
VII.HUMAN RESOURCES
Over the years, SBL has made significant progress towards building resilient organization by focusing on strategic workforce
planning, talent attraction and management and leadership development by sustainable recruiting of valuable resources. The
aim of Human Resources Division of SBL is to take initiatives to explore the unexplored latent qualities in our manpower and
provide them with proper training which includes on-job and off-job training, attending different seminars and conferences
related to skill development, job rotation and time to time counseling in order to strengthen the relationship with the
stakeholders. Also as a part of welfare to the employees, SBL provides provident fund facility, gratuity fund, death cum
retirement benefits, leave encashment, two festival bonuses, employee house building loan scheme, motor cycle loan
scheme, car loan scheme for the executives, computer loan scheme, recognition and monetary award for brilliant results
by the children of the employees, children education allowance, honorarium for passing Banking Diploma Examination and
extend urgent support to the staffs in case of death claim, retirement, accidents and other emergency cases.
VII.a. Human Resources Accounting

The strategy and methodology to determine the value of human resources is called Human Resources Accounting. SBL
calculated the value of human resources applying the best practice of Human Resource Accounting from the year 2014 till
date and also disclosed in the Annual Report.
100
VIII.COMMUNICATION WITH SHAREHOLDERS AND STAKEHOLDERS

SBL follows specific policy to facilitate effective communication with the shareholders. Shareholders and others may contact
at any time to Public Relations Division of Head Office for any sort of information and query. SBL provides updated information
in its website for all the shareholders as well as the stakeholders. In order to make the AGM more participatory, it is arranged
in a well-known place and convenient time to allow shareholders to speak in the AGM freely for their valuable suggestions.
In order to retain the sustainability, SBL also continuously maintains a large means to communicate and engage with its
stakeholders. With the diverse nature of stakeholders, SBL always strategically defines its key stakeholder audience with a
view to ensuring pragmatism in engagement and reporting. SBL classifies its key stakeholders as employees, customers,
shareholders and investors, suppliers and service providers, government and other regulators, communities and environment.
Through stakeholders’ inclusiveness and strategic engagement, SBL achieves conclusive and positive outcomes for each of
the identified stakeholders.
IX.ENVIRONMENTAL AND SOCIAL OBLIGATIONS

Presently the issue of climatic change is being addressed seriously all over the world. Bangladesh, being in southern delta, is
under serious threat of natural disaster. A detailed discussion regarding environment and social obligation of SBL is included
in the report on “Corporate Social Responsibility” and “Sustainable Banking” chapter.
X.MANAGEMENT REVIEW AND RESPONSIBILITY

Managing Director is the Chief Executive Officer (CEO) of the Bank. Bank has approved organizational structure with clear
functional separation and segregation of processing/ functioning authorities. This ensures core risk management practice
and compliance across the Bank.
X.a. Management Committees

In Sonali Bank Limited, many committees have been formed with senior executives to carry on the banking operation
more precisely and efficiently. These are ALCO, MANCOM, Credit Committee, Business Advisory Committee, Disciplinary
Action Committee, Interest Waiver Committee, Research and Planning Committee etc. Generally, each committee has been
formed headed by a Deputy Managing Director. Besides, investment committee, share sell-purchase committee, service rule
review committee, online activities implementation committee etc. have been set up for smooth functioning.
SI. Name of Committees

1 Asset Liability Management Committee (ALCO)
2 Management Committee (MANCOM)
3 Credit Committee
4 Business Advisory Committee
5 Disciplinary Action Committee
6 Interest Waiver Committee
7 Research and Planning Committee
X.b. Regulatory Compliance

SBL always submits quarterly, half-yearly and yearly financial reports and other statutory reports as per guidelines of
regulatory authorities. Followed by the directions, the Bank discloses any significant development in the business and ensures
submission of returns to the regulatory bodies in full compliance with transparency and accountability. Board of Directors
ensures standard disclosures to the shareholders.
X.c. Delegation of power

As per guidelines of Bangladesh Bank, the Board of Directors and its committees are entrusted with formulation of standard
policies and procedures by which Management Committee of the Bank has been empowered with appropriate administrative,
finance and business decision making authorities. The Board has approved all procurement policies of the Bank as well as
various manuals, policies, guidelines and the delegation of power of investment up to a determined limit
Annual Report 2021

XI.OTHER INFORMATION
XII. Credit Rating
As per Bangladesh Bank’s mandatory requirement vide BRPD Circular No.06 of 5 July, 2006, the Credit Rating of SBL was
done by the Credit Rating Information and Services Limited(CRISL) on the Audited Balance Sheet of 31 December, 2020 and
other relevant information. The rating agency awarded the ratings as stated here.
Surveillance Rating 2020-21 Long Term Short Term
As Government Supported Bank AAA ST-1
As Private Commercial Bank A+ ST-2
Outlook Stable
XIII. ACCOUNTABILITY OF FINANCIAL REPORTING

The Board of SBL as well as Management undertakes responsibilities for preparing and presenting a balanced and
comprehensive assessment of the Bank’s operations at the end of the each financial year through annual financial statements
and annual report and quarterly and half yearly announcement of results of the Bank to the shareholders.
The Audit Committee of the Board assists in this respect by scrutinizing the information to be disclosed, and to ensure
accuracy, adequacy, transparency and completeness.
XIV. VISION, MISSION AND STRATEGY

The Vision, Mission and Strategic Objectives of SBL are approved by the Board which is disclosed in the earlier part of the
Annual Report, Bank’s website and other publications.
XV. DECLARETION OF CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER
(CFO)
The CEO and the CFO certified on fair representation of financial statements to the Board.
XVI. DIRECTORS’ REPORT TO SHAREHOLDERS

In compliance with section 1.5 of Bangladesh Securities and Exchange Commission Notification No.SEC/CMRRCD/ 2006-
158/134/Admin/44 of 07 August 2012 and section 184 of the Companies Act, 1994 (Act No. Ill of 1994), the Directors report
has been prepared incorporating all the required statements.
102
Anil Salam Idris & Co.

Chartered Accountants
Compliance Certificate
on
To The Shareholders of Sonali Bank Limited
We have examined the compliance status to the Corporate Governance Code by Sonali Bank Limited for the year ended 31
December 2021. This code relates to the notification no. BSEC/CMRRCD/2006-158/207/Admin/80 dated 03 June 2018 of
the Bangladesh securities & Exchange Commission.
Such compliance with the Corporate Governance Code is the responsibility of the Company. Our examinations were limited
to the procedures and implementations, thereof as adopted by the Management in ensuring compliance to the conditions
of the Corporate Government Code.
This is the scrutiny and verification and an independent audit on compliance of the Corporate Governance Code as well
as the provisions of relevant Bangladesh Secretarial Standard (BSS) as adopted by the Institute of Chartered Secretaries of
Bangladesh (ICSB) in so far as those standards are not inconsistent with any condition of this Corporate Governance Code.
We state that we have obtained all the information and explanations, which we have required, and after due scrutiny and
verification thereof, we report that, in our opinion:
(a) The Bank has complied with the conditions of the Corporate Governance Code as stipulated in the above mentioned
Corporate Governance Code issued by the Commission except the condition 1 (7), 4(ii) and 6(1)-(5).
(b) The Company has complied with the provisions of the relevant Bangladesh Secretarial Standard (BSS) as adopted by
the Institute of Chartered Secretaries of Bangladesh (ICSB) as required by this Code.
(c) Proper book of records have been kept by the company as required under the Companies ACT, 1994, the securities
laws and other relevant laws; and
(d) The Governance of the company is satisfactory.
Anil Salam Idris & Co.

Chartered Accountants.
Place: Dhaka Md. Anwar Hossain, FCA

Dated: 9 June 2022 Partner
Annual Report 2021

COMPLIANCE STATUS OF BANGLADESH

SECURITIES AND EXCHANGE COMMISSION
GUIDELINES FOR CORPORATE GOVERNANCE
FOR THE YEAR ENDED 31 DECEMBER 2021.
Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/CMRRCD/ 2006-158/134/
Admin/80 dated 03 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969.
Compliance Status Remarks

Condition
Title
No. Not (If any)
Complied
Complied
1. Board of Directors
Board’s size: Board members shall not be less than 5 (five) and
1.1 √
more than 20 (twenty)
1.2 Independent Directors
At least one-fifth (1/5) of the total number of directors in the
1.2.a. √
company’s Board shall be independent directors;
All Board Members are nominated by the Government, holding 01 share face value
who either does not hold any share in the company or holds less
1.2.b. (i) than one percent (1%) shares of the total paid-up shares of the √
company;
who is not a sponsor of the company or is not connected with
the company’s any sponsor or director or nominated director
or shareholder of the company or any of its associates, sister
concerns, subsidiaries and parents or holding entities who holds
They are treated as Independent Director.

one percent (1%) or more shares of the total paid-up shares of
1.2.b.(ii). √
the company on the basis of family relationship and his or her
family members also shall not hold above mentioned shares
in the company: Provided that spouse, son, daughter, father,
mother, brother, sister, son-in-law and daughter-in-law shall be
considered as family members;
TK. 100.
who has not been an executive of the company in immediately
1.2.b. (iii) √
preceding 2 (two) financial years;
who does not have any other relationship, whether pecuniary
1.2.b. (iv) or otherwise, with the company or its subsidiary or associated √
companies;
who is not a member or TREC (Trading Right Entitlement
1.2.b. (v) √
Certificate) holder, director or officer of any stock exchange;
who is not a shareholder, director excepting independent
1.2.b. (vi) director or officer of any member or TREC holder of stock √
exchange or an intermediary of the capital market;
who is not a partner or an executive or was not a partner or an
executive during the preceding 3 (three) years of the concerned
1.2.b. (vii) company’s statutory audit firm or audit firm engaged in √
internal audit services or audit firm conducting special audit or
professional certifying compliance of this Code;
who is not independent director in more than 5 (five) listed
1.2.b. (viii) √
companies;
who has not been convicted by a court of competent jurisdiction
1.2.b. (ix) as a defaulter in payment of any loan or any advance to a bank or √
a Non-Bank Financial Institution (NBFI);
104

Condition
Title
No. Not (If any)
Complied
Complied
who has not been convicted for a criminal offence involving
1.2.b. (x) √ -
moral turpitude;
The independent director(s) shall be appointed by the Board and
1.2.c. approved by the shareholders in the Annual General Meeting √ -
(AGM);
The post of independent director(s) cannot remain vacant for
1.2.d. √ -
more than 90 (ninety) days;
The tenure of office of an independent director shall be for a
1.2.e. period of 3 (three) years, which may be extended for 1 (one) √ -
tenure only:
1.3 Qualification of Independent Director
Independent director shall be a knowledgeable individual with
integrity who is able to ensure compliance with financial laws, Stated in
1.3 (a) √
regulatory requirements and corporate laws and can make their CV
meaningful contribution to the business;
Business Leader who is or was a promoter or director of an
unlisted company having minimum paid-up capital of Tk. 100.00
1.3.b. (i) √
million or any listed company or a member of any national or
international chamber of commerce or business association;
Corporate Leader who is or was a top level executive not lower
than Chief Executive Officer or Managing Director or Deputy
Managing Director or Chief Financial Officer or Head of Finance
1.3.b.(ii) or Accounts or Company Secretary or Head of Internal Audit √
and Compliance or Head of Legal Service or a candidate with
equivalent position of an unlisted company having minimum paid
up capital of Tk. 100.00 million or of a listed company;
Former official of government or statutory or autonomous or
regulatory body in the position not below 5th Grade of the
1.3.b. (iii) √
national pay scale, who has at least educational background of
bachelor degree in economics or commerce or business or law;
University Teacher who has educational background in
1.3.b. (iv) √
Economics or Commerce or Business Studies or Law;
Professional who is or was an advocate practicing at least in the
High Court Division of Bangladesh Supreme Court or a Chartered
Accountant or Cost and Management Accountant or Chartered
1.3.b. (v) √
Financial Analyst or Chartered Certified Accountant or Certified
Public Accountant or Chartered Management Accountant or
Chartered Secretary or equivalent qualification;
The independent director shall have at least 10 (ten) years of
1.3.c. √
experiences in any field mentioned in clause (b);
In special cases, the above qualifications or experiences may be
1.3.d. √
relaxed subject to prior approval of the Commission.
In special cases the above qualifications may be relaxed subject
1.3. (iii) √ -
to approval of the Commission.
Duality of Chairperson of the Board of Directors and Managing
1.4 √
Director or Chief Executive Officer.
The positions of the Chairperson of the Board and the Managing
1.4.(a) Director (MD) and/or Chief Executive Officer (CEO) of the √
company shall be filled by different individuals;
The Managing Director (MD) and/or Chief Executive Officer
1.4.(b) (CEO) of a listed company shall not hold the same position in √
another listed company;
The Chairperson of the Board shall be elected from among the
1.4.(c) √
non-executive directors of the company;
Annual Report 2021


Condition
Title
No. Not (If any)
Complied
Complied
The Board shall clearly define respective roles and responsibilities
1.4.(d) of the Chairperson and the Managing Director and/or Chief √
Executive Officer;
In the absence of the Chairperson of the Board, the remaining
members may elect one of themselves from non-executive
1.4.(e) directors as Chairperson for that particular Board’s meeting; √
the reason of absence of the regular Chairperson shall be duly
recorded in the minutes.
1.5 The Directors’ Report to Shareholders √
An industry outlook and possible future developments in the
1.5.(i) √
industry;
1.5.(ii). The segment-wise or product-wise performance; √
Risks and concerns including internal and external risk factors,
1.5. (iii) threat to sustainability and negative impact on environment, if √
any;
A discussion on Cost of Goods sold, Gross Profit Margin and Net
1.5. (iv) √
Profit Margin, where applicable;
A discussion on continuity of any extraordinary activities and their
1.5.(v) √
implications (gain or loss);
A detailed discussion on related party transactions along with
a statement showing amount, nature of related party, nature
1.5.(vi) √
of transactions and basis of transactions of all related party
transactions;
A statement of utilization of proceeds raised through public
1.5.(vii) √
issues, rights issues and/or any other instruments;
An explanation if the financial results deteriorate after the
1.5.(viii) company goes for Initial Public Offering (IPO), Repeat Public √
Offering (RPO), Rights Share Offer, Direct Listing, etc.;
An explanation on any significant variance that occurs between
1.5.(ix) Quarterly Financial performances and Annual Financial √
Statements;
A statement of remuneration paid to the directors including
1.5.(x) √
independent directors;
A statement that the financial statements prepared by the
management of the issuer company present fairly its state of
1.5.(xi) √
affairs, the result of its operations, cash flows and changes in
equity;
A statement that proper books of account of the issuer company
1.5.(xii). √
have been maintained;
A statement that appropriate accounting policies have been
consistently applied in preparation of the financial statements
1.5. (xiii) √
and that the accounting estimates are based on reasonable and
prudent judgment;
A statement that International Accounting Standards (IAS) or
International Financial Reporting Standards (IFRS), as applicable
1.5. (xiv) in Bangladesh, have been followed in preparation of the financial √
statements and any departure there from has been adequately
disclosed;
A statement that the system of internal control is sound in design
1.5.(xv) √
and has been effectively implemented and monitored;
A statement that minority shareholders have been protected from
abusive actions by, or in the interest of, controlling shareholders
1.5.(xvi) √
acting either directly or indirectly and have effective means of
redress;
106

Condition
Title
No. Not (If any)
Complied
Complied
A statement that there is no significant doubt upon the issuer
company’s ability to continue as a going concern, if the issuer
1.5.(xvii) √
company is not considered to be a going concern, the fact along
with reasons there of shall be disclosed;
An explanation that significant deviations from the last year’s
1.5.(xviii) operating results of the issuer company shall be highlighted and √
the reasons thereof shall be explained;
A statement where key operating and financial data of at least
1.5.(xix) √
preceding 5 (five) years shall be summarized;
An explanation on the reasons if the issuer company has not
1.5.(xx) √
declared dividend (cash or stock) for the year;
Board’s statement to the effect that no bonus share or stock
1.5.(xxi) √
dividend has been or shall be declared as interim dividend;
The total number of Board meetings held during the year and
1.5.(xxii) √
attendance by each director;
A report on the pattern of shareholding disclosing the aggregate
1.5.(xxiii) number of shares (along with name-wise details where stated √
below) held by:-
Parent or Subsidiary or Associated Companies and other related
1.5.(xxiii).(a) √
parties (name-wise details);
Directors, Chief Executive Officer, Company Secretary, Chief
1.5.(xxiii).(b) Financial Officer, Head of Internal Audit and Compliance and √
their spouses and minor children (name-wise details);
1.5.(xxiii).(c) Executives; and √
Shareholders holding ten percent (10%) or more voting interest in
1.5.(xxiii).(d) √
the company (name-wise details);
In case of the appointment or reappointment of a director, a
1.5.(xxiv) √
disclosure on the following information to the shareholders:-
1.5.(xxiv).(a) a brief resume of the director; √
1.5.(xxiv).(b) nature of his or her expertise in specific functional areas; and √

names of companies in which the person also holds the
1.5.(xxiv).(c) √
directorship and the membership of committees of the Board;
A Management’s Discussion and Analysis signed by CEO or
MD presenting detailed analysis of the company’s position
1.5.( xxv) √
and operations along with a brief discussion of changes in the
financial statements, among others, focusing on:
accounting policies and estimation for preparation of financial
1.5.( xxv) .a. √
statements;
changes in accounting policies and estimation, if any, clearly
describing the effect on financial performance or results and
1.5.( xxv) .b. √
financial position as well as cash flows in absolute figure for such
changes;
comparative analysis (including effects of inflation) of financial
performance or results and financial position as well as cash
1.5.( xxv) .c. √
flows for current financial year with immediate preceding five
years explaining reasons thereof;
compare such financial performance or results and financial
1.5.( xxv) .d. √
position as well as cash flows with the peer industry scenario;
briefly explain the financial and economic scenario of the
1.5.( xxv) .e. √
country and the globe;
risks and concerns issues related to the financial statements,
1.5.( xxv) .f. explaining such risk and concerns mitigation plan of the √
company;
Annual Report 2021


Condition
Title
No. Not (If any)
Complied
Complied
future plan or projection or forecast for company’s operation,
performance and financial position, with justification thereof, i.e.,
1.5.( xxv) .g. √
actual position shall be explained to the shareholders in the next
AGM;
Declaration or certification by the CEO and the CFO to the Board
1.5.(xxvi) as required under condition No. 3(3) shall be disclosed as per √
Annexure-A;
The report as well as certificate regarding compliance of
1.5.(xxvii) conditions of this Code as required under condition No. 9 shall √
be disclosed as per Annexure-B and Annexure-C.
Meetings of the Board of Directors: The company shall conduct
its Board meetings and record the minutes of the meetings
as well as keep required books and records in line with the
1.6 provisions of the relevant Bangladesh Secretarial Standards √
(BSS) as adopted by the Institute of Chartered Secretaries
of Bangladesh (ICSB) in so far as those standards are not
inconsistent with any condition of this Code.
Code of Conduct for the Chairperson, other Board members and
1.7 N/A
Chief Executive Officer
The Board shall lay down a code of conduct, based on the
recommendation of the Nomination and Remuneration
1.7.(a) Committee (NRC) at condition No. 6, for the Chairperson of the N/A
Board, other board members and Chief Executive Officer of the
company;
The code of conduct as determined by the NRC shall be posted
on the website of the company including, among others, prudent
conduct and behavior; confidentiality; conflict of interest;
1.7.(b) N/A
compliance with laws, rules and regulations; prohibition of insider
trading; relationship with environment, employees, customers
and suppliers; and independency.
2. Governance of Board of Directors of Subsidiary Company: √
Provisions relating to the composition of the Board of the
2.(a). holding company shall be made applicable to the composition of √
the Board of the subsidiary company;
At least 1 (one) independent director on the Board of the holding
2.(b). company shall be a director on the Board of the subsidiary √
company;
The minutes of the Board meeting of the subsidiary company
2.(c). shall be placed for review at the following Board meeting of the √
holding company;
The minutes of the respective Board meeting of the holding
2.(d). company shall state that they have reviewed the affairs of the √
subsidiary company also;
The Audit Committee of the holding company shall also review
2.(e). the financial statements, in particular the investments made by √
the subsidiary company.
Managing Director (MD) or Chief Executive Officer (CEO), Chief
3. Financial Officer (CFO), Head of Internal Audit and Compliance √
(HIAC) and Company Secretary (CS).-
The Board shall appoint a Managing Director (MD) or Chief
Executive Officer (CEO), a Company Secretary (CS), a Chief
3.1.(a). √
Financial Officer (CFO) and a Head of Internal Audit and
Compliance (HIAC);
108

Condition
Title
No. Not (If any)
Complied
Complied
The positions of the Managing Director (MD) or Chief Executive
Officer (CEO), Company Secretary (CS), Chief Financial Officer
3.1.(b). √
(CFO) and Head of Internal Audit and Compliance (HIAC) shall be
filled by different individuals;
The MD or CEO, CS, CFO and HIAC of a listed company shall not
3.1.(c). hold any executive position in any other company at the same √
time;
The Board shall clearly define respective roles, responsibilities and
3.1.(d). √
duties of the CFO, the HIAC and the CS;
The MD or CEO, CS, CFO and HIAC shall not be removed from
3.1.(e). their position without approval of the Board as well as immediate √
dissemination to the Commission and stock exchange(s).
3.2. Requirement to attend Board of Directors’ Meetings √
The MD or CEO, CS, CFO and HIAC of the company shall attend
the meetings of the Board: 8 Provided that the CS, CFO and/or
3.2. the HIAC shall not attend such part of a meeting of the Board √
which involves consideration of an agenda item relating to their
personal matters.
Duties of Managing Director (MD) or Chief Executive Officer
3.3. √
(CEO) and Chief Financial Officer (CFO)
The MD or CEO and CFO shall certify to the Board that they have
3.3.(a). reviewed financial statements for the year and that to the best of √
their knowledge and belief:
these statements do not contain any materially untrue statement
3.3.(a). (i). or omit any material fact or contain statements that might be √
misleading;
these statements together present a true and fair view of the
3.3.(a). (ii). company’s affairs and are in compliance with existing accounting √
standards and applicable laws;
The MD or CEO and CFO shall also certify that there are, to the
best of knowledge and belief, no transactions entered into by
3.3.(b) the company during the year which are fraudulent, illegal or in √
violation of the code of conduct for the company’s Board or its
members;
The certification of the MD or CEO and CFO shall be disclosed in
3.3.(c) √
the Annual Report.
4. Board of Directors’ Committee √
For ensuring good governance in the company, the Board shall
√
have at least following subcommittees:
4.(i). Audit Committee √
4.(ii). Nomination and Remuneration Committee N/A
5. Audit Committee √
5.(1). Responsibility to the Board of Directors. √

The company shall have an Audit Committee as a sub-
5.1.(a) √
committee of the Board;
The Audit Committee shall assist the Board in ensuring that the
financial statements reflect true and fair view of the state of
5.1.(b) √
affairs of the company and in ensuring a good monitoring system
within the business;
Annual Report 2021


Condition
Title
No. Not (If any)
Complied
Complied
The Audit Committee shall be responsible to the Board; the
5.1.(c) √
duties of the Audit Committee shall be clearly set forth in writing.
5.(2). Constitution of the Audit Committee √
The Audit Committee shall be composed of at least 3 (three)
5.(2).(a) √
members;
The Board shall appoint members of the Audit Committee
who shall be nonexecutive directors of the company excepting
5.(2).(b) √
Chairperson of the Board and shall include at least 1 (one)
independent director;
All members of the audit committee should be “financially
literate” and at least 1 (one) member shall have accounting or
5.(2).(c) √
related financial management background and 10 (ten) years of
such experience;
When the term of service of any Committee member expires
or there is any circumstance causing any Committee member
to be unable to hold office before expiration of the term of
service, thus making the number of the Committee members to
5.(2).(d) be lower than the prescribed number of 3 (three) persons, the √
Board shall appoint the new Committee member to fill up the
vacancy immediately or not later than 1 (one) month from the
date of vacancy in the Committee to ensure continuity of the
performance of work of the Audit Committee;
The company secretary shall act as the secretary of the
5.(2).(e) √
Committee;
The quorum of the Audit Committee meeting shall not constitute
5.(2).(f) √
without at least 1 (one) independent director.
5.(3). Chairperson of the Audit Committee √
The Board shall select 1 (one) member of the Audit Committee
5.3.(a) to be Chairperson of the Audit Committee, who shall be an √
independent director;
In the absence of the Chairperson of the Audit Committee, the
remaining members may elect one of themselves as Chairperson
for that particular meeting, in that case there shall be no problem
5.3.(b) √
of constituting a quorum as required under condition No. 5(4)
(b) and the reason of absence of the regular Chairperson shall be
duly recorded in the minutes.
Chairperson of the Audit Committee shall remain present in the
5.3.(c) √
Annual General Meeting (AGM):
5.4. Meeting of the Audit Committee √
The Audit Committee shall conduct at least its four meetings in a
5.4.(a) √
financial year
The quorum of the meeting of the Audit Committee shall be
constituted in presence of either two members or two third
5.4.(b) √
of the members of the Audit Committee, whichever is higher,
where presence of an independent director is a must.
5.5. Role of Audit Committee √
5.5.(a) Oversee the financial reporting process √
5.5.(b) monitor choice of accounting policies and principles √

monitor Internal Audit and Compliance process to ensure that
it is adequately resourced, including approval of the Internal
5.5.(c) √
Audit and Compliance Plan and review of the Internal Audit and
Compliance Report
110

Condition
Title
No. Not (If any)
Complied
Complied
5.5.(d) oversee hiring and performance of external auditors √
hold meeting with the external or statutory auditors for review of

5.5.(e) the annual financial statements before submission to the Board √
for approval or adoption
review along with the management, the annual financial
5.5.(f) √
statements before submission to the Board for approval
review along with the management, the quarterly and half yearly
5.5.(g) √
financial statements before submission to the Board for approval
5.5.(h) review the adequacy of internal audit function √
review the Management’s Discussion and Analysis before

5.5.(i) √
disclosing in the Annual Report
review statement of all related party transactions submitted by
5.5.(j) √
the management
review Management Letters or Letter of Internal Control
5.5.(k) √
weakness issued by statutory auditors
oversee the determination of audit fees based on scope and
5.5.(l) magnitude, level of expertise deployed and time required for √
effective audit and evaluate the performance of external auditors
oversee whether the proceeds raised through Initial Public
Offering (IPO) or Repeat Public Offering (RPO) or Rights Share
5.5.(m) √
Offer have been utilized as per the purposes stated in relevant
offer document or prospectus approved by the Commission
5.6. Reporting of the Audit Committee √
5.6.(a) Reporting to the Board of Directors √
5.6.(a) .(i). The Audit Committee shall report on its activities to the Board. √
The Audit Committee shall immediately report to the Board on

5.6.(a) .(ii). √
the following findings, if any:-
5.6.(a) .(ii).(a) report on conflicts of interests √
suspected or presumed fraud or irregularity or material defect

5.6.(a) .(ii).(b) identified in the internal audit and compliance process or in the √
financial statements
suspected infringement of laws, regulatory compliances
5.6.(a) .(ii).(c) √
including securities related laws, rules and regulations
any other matter which the Audit Committee deems necessary
5.6.(a) .(ii).(d) √
shall be disclosed to the Board immediately
5.6.(b) Reporting to the Authorities √
If the Audit Committee has reported to the Board about anything

which has material impact on the financial condition and
results of operation and has discussed with the Board and the
management that any rectification is necessary and if the Audit
5.6.(b) Committee finds that such rectification has been unreasonably √
ignored, the Audit Committee shall report such finding to the
Commission, upon reporting of such matters to the Board for
three times or completion of a period of 6 (six) months from the
date of first reporting to the Board, whichever is earlier.
5.7. Reporting to the Shareholders and General Investors √
Annual Report 2021


Condition
Title
No. Not (If any)
Complied
Complied
Report on activities carried out by the Audit Committee, including
any report made to the Board under condition No. 5(6)(a)(ii)
5.7. above during the year, shall be signed by the Chairperson of the √
Audit Committee and disclosed in the annual report of the issuer
company.
6. Nomination and Remuneration Committee (NRC). -
6.1. Responsibility to the Board of Directors -
The company shall have a Nomination and Remuneration

6.1.(a). -
Committee (NRC) as a subcommittee of the Board
The NRC shall assist the Board in formulation of the nomination
criteria or policy for determining qualifications, positive attributes,
6.1.(b). experiences and independence of directors and top level -
executive as well as a policy for formal process of considering
remuneration of directors, top level executive
The Terms of Reference (ToR) of the NRC shall be clearly set
6.1.(c) forth in writing covering the areas stated at the condition No. 6(5) -
(b).
6.2. Constitution of the NRC -
The Committee shall comprise of at least three members

6.2.(a). -
including an independent director
6.2.(b). All members of the Committee shall be non-executive directors -
Members of the Committee shall be nominated and appointed

6.2.(c). -
by the Board
The Board shall have authority to remove and appoint any
6.2.(d). -
member of the Committee
In case of death, resignation, disqualification, or removal of any
member of the Committee or in any other cases of vacancies,
6.2.(e). -
the board shall fill the vacancy within 180 (one hundred eighty)
days of occurring such vacancy in the Committee
The Chairperson of the Committee may appoint or co-opt any
external expert and/or member(s) of staff to the Committee as
advisor who shall be non-voting member, if the Chairperson
6.2.(f). -
feels that advice or suggestion from such external expert and/
or member(s) of staff shall be required or valuable for the
Committee
The company secretary shall act as the secretary of the
6.2.(g). -
Committee
The quorum of the NRC meeting shall not constitute without
6.2.(h). -
attendance of at least an independent director
No member of the NRC shall receive, either directly or indirectly,
any remuneration for any advisory or consultancy role or
6.2.(i) -
otherwise, other than Director’s fees or honorarium from the
company.
6.3. Chairperson of the NRC -
The Board shall select 1 (one) member of the NRC to be

6.3.(a). Chairperson of the Committee, who shall be an independent -
director
112

Condition
Title
No. Not (If any)
Complied
Complied
In the absence of the Chairperson of the NRC, the remaining
members may elect one of themselves as Chairperson for
6.3.(b). -
that particular meeting, the reason of absence of the regular
Chairperson shall be duly recorded in the minutes
The Chairperson of the NRC shall attend the annual general
6.3.(c) -
meeting (AGM) to answer the queries of the shareholders
6.4. Meeting of the NRC -
6.4.(a) The NRC shall conduct at least one meeting in a financial year. -
The Chairperson of the NRC may convene any emergency
6.4.(b) -
meeting upon request by any member of the NRC.
The quorum of the meeting of the NRC shall be constituted in
presence of either two members or two third of the members
6.4.(c) of the Committee, whichever is higher, where presence of an -
independent director is must as required under condition No.
6(2)(h).
The proceedings of each meeting of the NRC shall duly be
6.4.(d) recorded in the minutes and such minutes shall be confirmed in -
the next meeting of the NRC.
6.5. Role of the NRC -
NRC shall be independent and responsible or accountable to the
6.5.(a) -
Board and to the shareholders
NRC shall oversee, among others, the following matters and
6.5.(b). -
make report with recommendation to the Board
formulating the criteria for determining qualifications, positive
attributes and independence of a director and recommend a
6.5.(b). .(i). -
policy to the Board, relating to the remuneration of the directors,
top level executive, considering the following:
the level and composition of remuneration is reasonable and
6.5.(b).(i).a sufficient to attract, retain and motivate suitable directors to run -
the company successfully
the relationship of remuneration to performance is clear and
6.5.(b).(i).b -
meets appropriate performance benchmarks
remuneration to directors, top level executive involves a balance
between fixed and incentive pay reflecting short and long-
6.5.(b).(i).c -
term performance objectives appropriate to the working of the
company and its goals
devising a policy on Board’s diversity taking into consideration
6.5.(b).(ii). age, gender, experience, ethnicity, educational background and -
nationality
identifying persons who are qualified to become directors
and who may be appointed in top level executive position in
6.5.(b).(iii). -
accordance with the criteria laid down, and recommend their
appointment and removal to the Board
formulating the criteria for evaluation of performance of
6.5.(b).( iv). -
independent directors and the Board
identifying the company’s needs for employees at different
6.5.(b).( v). levels and determine their selection, transfer or replacement and -
promotion criteria
developing, recommending and reviewing annually the
6.5.(b).( vi). -
company’s human resources and training policies
The company shall disclose the nomination and remuneration
6.5.(c). policy and the evaluation criteria and activities of NRC during the -
year at a glance in its annual report
Annual Report 2021


Condition
Title
No. Not (If any)
Complied
Complied
7. External or Statutory Auditors √
The issuer company shall not engage its external or statutory
7.1. √
auditors to perform the following services of the company:
7.1.(i). appraisal or valuation services or fairness opinions √
7.1.(ii). financial information systems design and implementation √

book-keeping or other services related to the accounting records
7.1.(iii). √
or financial statements
7.1. ).(iv). broker-dealer services √
7.1. ).(v). actuarial services √
7.1. ).(vi). internal audit services or special audit services √
7.1. ).(vii) any service that the Audit Committee determines √

audit or certification services on compliance of corporate
7.1. (viii) √
governance as required under condition No. 9(1)
7.1.(ix) any other service that creates conflict of interest √
No partner or employees of the external audit firms shall possess
any share of the company they audit at least during the tenure
of their audit assignment of that company; his or her family
7.2. members also shall not hold any shares in the said company: √
Provided that spouse, son, daughter, father, mother, brother,
sister, son-in-law and daughter-in-law shall be considered as
family members.
Representative of external or statutory auditors shall remain
present in the Shareholders’ Meeting (Annual General Meeting
7.3. √
or Extraordinary General Meeting) to answer the queries of the
shareholders.
8. Maintaining a website by the Company √
The company shall have an official website linked with the
8.1. √
website of the stock exchange.
The company shall keep the website functional from the date of
8.2. √
listing
The company shall make available the detailed disclosures
8.3. on its website as required under the listing regulations of the √
concerned stock exchange(s)
9. Reporting and Compliance of Corporate Governance √
The company shall obtain a certificate from a practicing
Professional Accountant or Secretary (Chartered Accountant or
Cost and Management Accountant or Chartered Secretary) other
9.1. than its statutory auditors or audit firm on yearly basis regarding √
compliance of conditions of Corporate Governance Code of the
Commission and shall such certificate shall be disclosed in the
Annual Report.
The professional who will provide the certificate on compliance
9.2. of this Corporate Governance Code shall be appointed by the √
shareholders in the annual general meeting
The directors of the company shall state, in accordance with
9.3. the Annexure-C attached, in the directors’ report whether the √
company has complied with these conditions or not.
114
CEO AND CFO’S

DECLARATION TO THE BOARD
Date: 27 April, 2022
The Board of Directors

Sonali Bank Limited
35-42, 44 Motijheel Commercial Area,
Dhaka, Bangladesh.
Subject: Declaration on Financial Statements for the year ended on 31 December 2021.
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. SEC/CMRRCD/ 2006-158/134/
Admin/80 dated 03 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare
that:
(1) The Financial Statements of Sonali Bank Limited Limited for the year ended on 31 December 2021 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable
in the Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order
for the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in
its financial statements;
(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and
procedures of the Company were consistently followed; and
(6) The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and
there exists no material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern.
In this regard, we also certify that: -
(i) We have reviewed the financial statements for the year ended on 31 December 2021 and that to the best of our knowledge
and belief:
(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with existing
accounting standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or its members.
Sincerely yours,
(Md. Ataur Rahman Prodhan) (Subhash Chandra Das FCMA, FCA)

CEO & Managing Director CFO & General Manager
Annual Report 2021

DIRECTORS’ RESPONSIBILITY
FOR FINANCIAL STATEMENTS
Proper Financial Reporting Adequate Internal Control
The Board of Director of SBL is responsible to cause In line with requirement of section 15 (C) of Bank Companies
preparation and true & fair presentation of the annual financial Act-1991 (Amended- 2018), the Board of Directors of SBL
statements of 2021 and other financial information and is entrusted to establish suitable system of Internal Control
reports contained in this annual report by the management. and Compliance (ICC). Accordingly the Board is very much
The accompanying financial statements have been prepared concerned about this. In setting out a strong internal control
in accordance with International Financial Reporting and compliance framework within the organization, the
Standards (IFRS) and Bangladesh Accounting Standards Board established Board Audit Committee and Board Risk
as espoused by the Institute of Chartered Accountants of Management Committee to ensure effective ICC in the
Bangladesh and Companies Act 1994, Banking Companies Bank as a part of oversight functioning. In addition to that,
Act 1991 (Amended-2018), rules and regulations of SBL has formed Management Committee (MANCOM) to
Bangladesh Bank and Bangladesh Securities and Exchange identify, measure, monitor and control the risks through
Rules 1987 as considered relevant and appropriate under framing required policies and procedures with the approval
the circumstances. In cases where amounts are stated of the Board of Directors.
based on estimate those are based on informed judgment
and estimate made by the management and agreed by Gripping of Banking Operational Risks
the Board of Directors. The financial information and data The policy of managing operational risk through internal
provided in this annual report is fully consistent with the control and compliance is approved by the Board taking into
financial statements. account the relevant guidelines of Bangladesh Bank. The
committee puts in place policies and procedures to identify,
While preparing the report, the Directors didn’t approve the measure, monitor and control these risks and monitors the
financial statements unless they are satisfied that they give adequacy and effectiveness of the internal control system
a true and fair view of the state of affairs of the Company based on the Bank’s established policy and procedure.
as at the end of the financial year and of their profit or loss
for the year. The Directors have also been obliged to ensure Independency to the Audit Committee
that the Company keeps proper accounting records that The Internal control, accounting policies and financial
disclose, with reasonable accuracy, the financial position of reporting of SBL are under direct supervision of the audit
the Company. They have driven the wheel of responsibility committee of the Board that in turn report to the Board
for safeguarding the assets of the Bank. of Directors for general oversight and supervision. Audit
committee of the board is fully independent of executive
management. The committee regularly reviews reports
prepared by internal control and compliance department
covering all the business operations of the Bank with
particular focus on core risks. ICC division of the Bank
also carries on its activities independently without any
intervention and produced the audit and ICC reports to the
INCOME RETAINED BALANCE
STATEMENTS EARNINGS SHEET
Board audit Committee and the Board independently.
Gratis Accessibility to the External Audits
Revenues Net Income Asset
External audit of SBL has the full access to the Audit
-Expenses -Dividends -Liabilities Committee of the Board for ensuring effectiveness of
Retained Owners’ internal control procedure and reliability of financial
Net Income reporting. The Internal Control & Compliance Division of
Earnings Equity
the Bank conducts periodic audits to provide reasonable
Nothing has come to the attention of the Directors to assurance that the established policies and procedures of
indicate that the Bank will not remain a going concern for at the company were consistently followed. The auditors of the
least twelve months from the date of this statement. company ACNABIN, Chartered Accountants and Aziz Halim
We confirm that to the best of our knowledge: Khair Choudhury, Chartered Accountants, have carried out
annual audit to review on the system of internal controls,
i. The financial statements, prepared in accordance with as they consider appropriate and necessary, for expressing
the applicable set of accounting standards, give a true their opinion on the financial statements. They have also
and fair view of the assets, liabilities, financial position examined the financial statements made available by the
and profit or loss of the Bank and the undertakings management together with all the financial records, related
included in the consolidation taken as a whole. data, minutes of shareholders and board meetings, relevant
ii. Financial statements reflects the development and policies and expressed their clean opinion.
performance of the business and the position of the
Bank and the undertakings included in the consolidation With best regards
taken as a whole, together with a description of the
principal risks and uncertainties that they face. On behalf of the Board of the Directors
iii. Appropriate accounting policies have been adopted

and applied that consistently.
iv. Prudent and reasonable estimates along with judgment
have been applied. (Ziaul Hasan Siddiqui)
Chairman
116
REPORT OF THE AUDIT COMMITTEE
REPORT OF
THE AUDIT COMMITTEE
A.K.M. Kamrul Islam FCA, FCS

Chairman, Board Audit Committee
The Audit Committee of the Board of Sonali Bank Limited has Key Objectives of Audit Committee
been functioning as a sub-committee appointed by the Bank’s
Board of Directors in compliance with the Bank Company z To review the financial reporting process, the system
Act 1991 (amended 2018), Bangladesh Bank’s BRPD Circular of internal control and compliance, the approach
No. 11 of 27 October 2013 and the relevant Notifications to management of financial risks, the audit process,
of Bangladesh Securities and Exchange Commission
the processes used by the Bank to identify, quantify
(BSEC) as well as international best practices on Corporate
Governance. The primary purposes of the Audit Committee and mitigate significant risks to the achievement
are to provide independent and objective oversight of the of objectives, the findings of Bangladesh Bank’s
accounting and financial reporting functions along with the processes for monitoring compliance under
internal controls of the Bank and its affiliates and to ensure
relevant laws and regulations and its own code of
the objectivity of the Bank’s financial statements. The Audit
business conducts.
Committee’s function is one of oversight and review, and it
is not required to prepare or audit the financial statements, z To assist the Board in discharging its oversight
to define the scope of the audit, to control the Company’s responsibilities by implementing relevant strategies
accounting policies and practices, or to define the standards and policies.
used in preparing the financial statements
Annual Report 2021

Composition of Audit Committee z Review of Accounting Policy: The Audit Committee

reviewed the accounting policies adopted by the
In compliance with Section 3.2(i) of Corporate Governance
bank and ensured that the policies are properly
Notification issued by BSEC on 07 August 2012 and
applied in the preparation of the Financial
Bangladesh Bank’s BRPD Circular No. 11 of 27 October 2013, Statements of the Bank.
Board Audit Committee (AC) of Sonali Bank Limited was last
z Review of Interim Financial Statement: The Audit
re-constituted with the following Board members:
Committee reviewed the quarterly and the half
Status Status yearly Financial Statements and ensured that
Name with the with the authentic and reliable financial information are
Bank Committee incorporated in those statements and in other
interim reports.
Mr. A.K.M. Kamrul Islam FCA, FCS Director Chairman
z Review of Financial Statements: The Audit
Mr. Ishtiaque Ahmed Chowdhury Director Member Committee reviewed and examined the Financial
Statements of 2021 of the Bank to confirm whether
Dr. Daulatunnaher Khanam Director Member all the required disclosures and information have
been incorporated in the Financial Statements
Professor Dr. Mohammad Kaykobad Director Member and whether the Bank followed International
Accounting Standards (IAS) and International
Roles and Responsibilities of Audit Committee Financial Reporting Standards (IFRS) adopted
as Bangladesh Accounting Standards (BAS) and
The roles and responsibilities of Audit Committee of Bangladesh Financial Reporting Standards (BFRS)
Sonali Bank Limited have been specified by considering by the Institute of Chartered Accountants of
the provisions of BRPD Circular No 11 of 27 October 2013 Bangladesh, Bank Company Act 1991(amended
Corporate Governance Notification issued by BSEC on 07 2018), Bangladesh Bank Guidelines, the Companies
August 2012 and other best practice corporate governance Act 1994, the Bangladesh Securities and Exchange
guidelines and standards. Commission Rules and other laws and rules
applicable in Bangladesh and also Standards issued
Meetings of Audit Committee
by the Accounting and Auditing Organization for
The Audit Committee of the bank held as many as 11 Islamic Financial Institutions (AAOIFI), Bahrain,
(Eleven) meetings in 2021. In those meetings, the committee etc. The Committee recommended the Financial
reviewed the findings and recommendations in the reports Statements for the year 2021 for consideration of
of the bank’s internal and external auditors and assessed the the Board.
remedial actions taken by the management. Proceedings Other activities:
of the Audit Committee meetings were reported timely and
regularly to the Board of Directors as well as Bangladesh z During the year 2021, the Audit Committee of
the Board conducted 11 (Eleven) meetings in
Bank in compliance with the DOS circular letter no. 07 of
2021 which the following important issues were
24 April 2011.
reviewed/discussed along with others:
Major Highlights of the Audit Committee activities in z Oversee the financial reporting process & liquidity
2021 position of the bank at regular basis.
During the year under review, the committee performed z Reviewed internal & external auditors findings
amongst others the following key functions: on the irregularities both major & significance at
different branches of the bank and reference those
z Appointment of Statutory Auditors: The Audit
to the Board with appropriate recommendation
Committee made recommendations to the Board
for decision, reviewed draft & audited financial
for appointing Statutory Auditors in the Annual
statements for the year 2020.
General Meeting.
z Reviewed performance of internal audit 2021.
z Meeting with Statutory Auditors: The committee
Reviewed the reconciliation performance of inter
met with the statutory auditors for finalization of
branch transaction accounts and advised the
financial statements for the year 2021. It also looks
management to keep it regular.
into account the issues raised in the Management
Letter and advised the management to take z Reviewed the comprehensive inspection report on
appropriate remedial actions. SBL by Bangladesh bank as on 31.12.2020.
118
REPORT OF THE AUDIT COMMITEE
z Reviewed the cash holding position of different guidelines and advised the managements to
branches & advise the management to ensure implement the same more effectively.
maintenance of optimum level of cash to reduce z Reviewed the audit report of the subsidiaries and
idle cash in hand as per as practicable. directing the authority to take necessary action as
z Reviewed existing policy of ICC, Risk Grading, appropriate.
Credit Policy, Quarterly Risk Management Paper
Acknowledgements
etc. and made recommendation to Board for
approval. The Committee would like to place on record its sincere
z Reviewed unaudited quarterly & half yearly financial thanks and gratitude to the regulatory authorities, in
statements of the bank for the year 2021. particular, Bangladesh Bank and the Bangladesh Securities
z Monitor internal control risk management process. and Exchange Commission, external auditors, the Board of
Directors and management for their earnest support while
z Discussed and reviewed annual budget 2021 &
performing its duties and responsibilities.
revised budget 2020 and recommended to the
board with some amendments. In conclusion, I would like to convey my sincere thanks to
z Reviewed the compliance status of audit the members of the Committee for their invaluable support
objections and advised the management to ensure and cooperation in carrying out the tasks entrusted with the
full compliance of regulatory, legal and significant Committee.
issues meticulously.
For and on behalf of Audit Committee
z Reviewed the audit rating by internal audit on Anti
Money Laundering of all branches for the year
2020.
z Discuss and reviewed the effectiveness of annual
audit plan 2021 and made recommendation to the
board for approval with suggested amendments. (A.K.M. Kamrul Islam FCA, FCS)
z Reviewed existing risk management procedures Chairman
along with implementation of core risk management Board Audit Committee
Annual Report 2021

NOTE FROM THE CHAIRMAN OF

RISK MANAGEMENT COMMITTEE
Ishtiaque Ahmed Chowdhury

Chairman, Board Risk Management Committee
Over the past decade, Bangladesh’s economy has stood on a the agricultural sector. In addition to financial incentives,
strong footing. After achieving above 7 percent growth since FY various measures have been taken to reduce import duty on
2015-16 to three consecutive years, GDP growth in Bangladesh COVID-19 related health and medical products and provide
has reached 8.15 percent in FY 2018-19. This feat of achieving policy assistance to increase liquidity in the banking sector.
continued growth in Bangladesh’s GDP has been praised Through implementation of this attractive and timely stimulus
worldwide. However, the Corona-virus pandemic that poses a package, the government has been able to play a highly
major risk to the global economy has also had negative effects effective role in employment creation and safeguarding
on the Bangladesh economy. According to the estimates of employment, stimulating domestic demand and keeping
Bangladesh Bureau of Statistics (BBS), GDP growth has been economic activities moving. As a result, the trend in the
decelerated to 3.51 percent in FY 2019-20, which has been Bangladesh economy has started a turnaround towards the
estimated 105.47 percent in FY 2020-21. During FY 2O2O-21, high growth trajectory. Banking sector is playing vital role for
the per capita national income stood at USS 2,227 from USS implementing such initiatives of the government.
2,024 compared to the previous fiscal year.
In this regard Sonali Bank Limited focused on various
The Hon’ble Prime Minister announced incentive packages macro-prudential measures including intensive surveillance
of about Tk 1,28,411 crore to address the global crisis and on adherence to prescribed Asset-Liability Management
keep the country’s economy moving and bring it back on (ALM) and Foreign Exchange Risk Management Guidelines
track. These incentive programmers which is 4.4 percent to rationalize the Advance/Deposit Ratios to curb the
of GDP and are being implemented through 23 packages. over-exuberance in lending. It has seen improved asset
Some of the notable activities of this package are-to provide quality across our businesses with stronger origination
special funds for export oriented industries, provide working discipline and targeted growth. Loan diversification across
capital to affected industries and services sector enterprises the industry sectors and geographies increased as the
and micro (including cottage industries), small and medium bank continued to add new clients selectively. Our focus
enterprises, increase the benefits of Export Development on embedding a sustainable risk culture and an effective
Fund, increase the coverage of social safety net, direct cash enterprise risk management approach are helping to build a
transfer to targeted people and creation of various funds for more resilient bank for the benefit of our employees, clients
120
REPORT OF THE RISK MANAGEMENT COMMITTEE
and stakeholders. Keeping in mind the burning risk issues z Reviewed Comprehensive Risk Management
we have made significant progress in our work to combat Ratings of SBL for December 2020 and June
financial crime and have increased focus on our cyber risk 2021, upon review the Committee endorsed the
management capabilities. Risk is a shared responsibility of management strategy to mitigate the identified
everyone in the bank and is an intrinsic part of every decision risks as highlighted in those rating reports.
that we make. z Reviewed risk performance against approved Risk Matrix
Composition of the Board of Directors Risk (Key Risk Indicators) for the year ending December
2020, half year ending June 2021 and month ending
Management Committee position from January to November 2021.
In line with the circular no.11 dated 27 October, 2013 of z Reviewed and endorsed Bank’s risk appetite/internal
Bangladesh Bank, the Board of Directors Risk Management limits for 2021 on major risk areas to place towards
Committee of Sonali Bank Limited was last re-constituted Board of Directors for approval.
with the following members of the Board of Directors:
z Reviewed periodically Top 20 credit exposure
(Group) of SBL in terms of limit offered to
Status Status
counterparties and advised management to closely
Sl Name with the with the
monitor the account performance and to pay
Bank committee special attention to the vulnerable accounts.
01 Mr. Ishtiaque Ahmed Chowdhury Director Chairman z The Board has instructed to start Access control
Digital attendance in 11 branches of the bank.
02. Mr. A.B.M Ruhul Azad Director Member
z The Board has instructed to use IP camera instead
03 Dr. Daulatunnaher Khanam Director Member of CC camera in every branches of the bank.
z The Board has instructed to submit updated Audit
04 Mr. Md. Mofazzal Husain Director Member and Inspection Manual, Shariah Based Audit Manual,
Internal Control and Complience Policy, Loans and
05 Professor Dr. Mohammad Kaykobad Director Member Advance Recovery Policy, Loan Reschedule Policy,
Loan Writen-off Policy, Fire Safety & Fire Fighting
Risk management is a dynamic process.The Board of Policy and Disaster Management Manual.
Directors Risk Management Committee has responsibility z The Board has instructed to submit updated Treasury
for oversight and review of prudential risks, including but Manual, Liquidity Risk Management Policy, Asset
not limited to credit, country cross-border, market, pension, Liability Management Policy/Guidelines, Investment
capital, liquidity and funding and operational risks. The Policy, Foreign Exchange Risk Management Policy/
Committee also reviews on key cyber risks, threats, events, Guidelines, Green Banking Policy, Core Risk
project updates and the Board’s top risk profile updates as Guidelines, Credit Rating Enterprise appointment
identified. The Committee receives regular reports on risk guidelines (2016), Fixed Asset Related Guidelines.
management, including our portfolio trends, policies and a Delegation of Business Discretionary Power and
standard, stress testing, liquidity and capital adequacy, and is Internal Control and Compliance Policy.
authorized to investigate or seek any information relating to z The Board has instructed to submit updated Internal
and activity within its terms of reference. Control and Compliance Policy and Audit Character
We have a number of ongoing initiatives that will further & Procedures-2021 to Board of Directors.
enhance the risk management framework and capability The Bank has multiple initiatives underway to improve
of the bank. Major issues and areas of interest dealt with by infrastructure for compliance of risk management, exposure
RMC during 2021 are noted below: management, data quality, stress testing, operational risk
z Reviewed concerning accounts which may management and reporting. We have also worked to
have been classified if payment deferral option/ streamline and simplify our processes to serve clients better
classification pause had not been in place during and drive internal efficiencies.
this pandemic. It advised to increase monitoring Before I conclude, I wish to extend my sincere gratitude
and supervision for timely collection of scheduled to my colleagues in the Risk Management Committee for
EMIs to prevent forward flow. their valuable guidance, support and contribution in carrying
z Reviewed monthly Risk Management Reports, half out the tasks of the Committee smoothly. I also wish to
yearly Comprehensive Risk Management Reports place my sincere appreciation for the good work rendered
(CRMR) and recommendations of ERMC (Executive by the member of Risk Management Committee of the
Risk Management Committee) made during Bank and the executives along-with the officers of the Risk
December 2020 to November 2021 and with Management Division of the Bank. I am profoundly thankful
certain directions endorsed the same for onward to the Chairman and other members of the Board for their
submission to Bangladesh Bank (BB). confidence reposed in me for steering the risk management
z Reviewed Stress Test Reports from quarter ending agenda of the Bank.
December 2020 to quarter ending September 2021
and endorsed the same for onward submission to BB.
z Reviewed ICAAP (Internal Capital Adequacy
Assessment Process) and SRP (Supervisory Review (Ishtiaque Ahmed Chowdhury)
Process) return of SBL for the year 2020 and Chairman
submitted to Board of Directors for consideration.
Board Risk Management Committee
Annual Report 2021

STAKEHOLDERS AND
SHAREHOLDERS
INFORMATION
Keeping in mind the diverse nature of stakeholders mainly customers- depositors and borrowers, Ministry of Finance,
Bangladesh Bank, BSEC, NBR and employees etc., the Bank is required to strategically define its key stakeholder audience
with a view to ensuring pragmatism in engagement and reporting. This helps to determine the Bank to define its key
stakeholders as employees, customers, shareholders and investors, suppliers and service providers, government and other
regulators, communities and environment. At a glance, it is highlighted below:
Stakeholders- at a glance :
Ministry of Finance Comptroller of Auditor General of

Bangladesh Bank Bangladesh
Government and National Board of Revenue External Auditors
other regulators BSEC All business chambers
ICAB, ICMAB, ICSB
Retail customers Q-cash cardholders

Customers Rural credit customers Remittance customers
SME and corporate client Importer and exporter
Government of the People’s Republic of Bangladesh

Shareholders
Management trainees and interns

Employees
Correspondent banks Maintenance and security service

providers
Suppliers and Foreign remittance agents
Service Providers Landlord of leased premises
Communities and Professionals and self-employers Graduate students

Environment Civil society Different communities
122
STAKEHOLDERS' INFORMATION
Shareholding Structure of Sonali Bank Limited as on 31 December, 2021 :

Number of Shares
Particulars
As at 31 December, 2021 As at 31 December, 2020
General Public - -
Government 453,000,000 453,000,000
Total 453,000,000 453,000,000
Present Shareholding Pattern

(%) of
SI. Sponsor Shareholders No. of Shares Amount in Tk.
Shareholding
1 The Government of the People's Republic of
Bangladesh: On Behalf of Secretary Finance Division
452,999,991 45,299,999,100 99.999998234
Ministry of Finance, The Government of the People’s
Republic of Bangladesh
Individual Directors nominated by the Government
2 Mr. Ziaul Hasan Siddiqui 1 100 0.00000022075
3 Mr. A.B.M Ruhul Azad 1 100 0.00000022075
4 Mr. A. K. M. Kamrul Islam FCA, FCS 1 100 0.00000022075
5 Mr. Ishtiaque Ahmed Chowdhury 1 100 0.00000022075
6 Dr. Daulatunnaher Khanam 1 100 0.00000022075
7 Mr. Md. Mofazzal Husain 1 100 0.00000022075
8 Mr. Molla Abdul Wadud 1 100 0.00000022075
9 Professor Dr. Mohammad Kaykobad 1 100 0.00000022075
10 Mr. Md. Ataur Rahman Prodhan 1 100 0.00000022075
Total 453,000,000 45,300,000,000 100.00
Shareholding Pattern of CEO and Managing Director, CFO, Company Secretary and Head of Internal Audit:
% of Shareholding as at
SI. Particulars
31 December, 2021
01 CEO and Managing Director and his spouse and minor children --
02 CFO and his spouse and minor children --
03 Company Secretary and his spouse and minor children --
04 Head of Internal Audit and his spouse and minor children --
Accessibility of Annual Report:

Annual Report 2021 and other information about SBL may be accessed on Bank’s Website: www.sonalibank.com.bd. SBL
provides copies of Annual Report to the Ministry of Finance, Bangladesh Securities and Exchange Commission, Bangladesh
Bank, Registrar of Joint Stock Companies and Firms for their reference.
Shareholders Inquiries and Communication:

Shareholders and others may contact at any time to Public Relations Division of Head Office for any sort of information
and query. In order to make the AGM more participatory, it is arranged in Bank premises and in convenient time to allow
shareholders to speak in the AGM freely for their valuable suggestions.
Queries Relating to Corporate Information:

Queries relating to any corporate information and published financial information may be addressed to the Company
Secretary of Sonali Bank Limited.
Related Parties:
The Bank provides banking service to different ministries and corporations in the form of advances, letter of credit, bank
guarantee etc. but the Bank had no transactions with the Directors of the Bank as a related party.
Annual Report 2021

Redressing to Shareholders’ Observations/ Suggestions:
In the 14th Annual General Meeting of the Bank, Directors and shareholders addressed some behavioral and financial facts
and services of the Bank and hence put suggestions for progressive development. Management of the Bank addressed the
observations seriously and worked hard to diminish the complaints as suggested thereof. Some justifications are tabulated
below:
SI. Complaints/Suggestions Redress to Shareholders' Complaints
To include division wise deposit amount into Division wise deposits have been included in Financial Statements
1.
Financial Statements. since 2014.
To include division wise loans and advances Division wise loans and advances have been included in Financial
2.
into Financial Statements. Statements since 2014.
Till 31.12.2021, SBL has established its own 149 ATMs and 08 co-
To increase sufficient number of ATM Booths
branded ATM Booths with a joint collaboration of Bangladesh Post
with sophisticated machines in both urban
3. Office. Furthermore, SBL card holders can also get access of their
and rural branches and urged to make the
cards from other booths countrywide. SBL’s website has been
Bank's website user friendly.
developed in such a way that anyone can use the website easily.
Requested to arrange the AGM on Friday or

4. AGM will be arranged subject to availability of suitable venue.
Saturday in future, if possible
Suggested for publishing and printing

of Annual Report in abridged form with Annual Report is published through the website of SBL (www.
5. important data/information and uploading sonalibank.com.bd). Mentionable here is that Annual Report of the
the detailed Annual Report in the website of previous year has been preserved in the mentioned web address.
the Bank ensuring green banking practice.
Necessary guidelines, instructions in this regard have been provided

Suggested for rendering better customer
to the branches by the Management of the Bank from time to time
6. service by the branch officials other than that
following constant supervision and monitoring from Head Office
of conventional banks.
regarding meticulous compliance of the same.
Suggested to provide adequate logistic

The Management of the Bank is heartily trying to provide adequate
support, modern technology and well
logistic support, modern technology and well decoration to all
7. decoration to all branches for compliance
branches for compliance of the Bank and improvement of customer
of the Bank and improvement of customer
services.
services.
124
(i) Directors of Sonali Bank Limited and their interest in the Bank as on 31 December, 2021 :
Date of
SI. Name Present Address Appointment/ No. of Shares
Reappointment
Mr. Ziaul Hasan Siddiqui

01. - 28-08-2019 01
Chairman of the Board of Directors
02. Mr. A.B.M Ruhul Azad - 15-06-2021 01
03. Mr. A. K. M. Kamrul Islam FCA, FCS - 22-12-2016 01
04. Mr. Ishtiaque Ahmed Chowdhury - 19-09-2018 01
05. Dr. Daulatunnaher Khanam - 13-01-2019 01
06. Mr. Md. Mofazzal Husain - 13-05-2019 01
07. Mr. Molla Abdul Wadud - 30-07-2019 01
08. Professor Dr. Mohammad Kaykobad - 25-08-2020 01
09. Mr. Md. Ataur Rahman Prodhan - 28-08-2019 01
(ii) Particulars of Directors of Sonali Bank Limited and their interest in other entities:
Name of the firms/companies in which

interested as proprietor, partner. Managing
SI. Name Status with SBL Status
Director, managing agent, guarantor,
employee etc.
Mr. Ziaul Hasan Siddiqui

1. Chairman of the Board of Chairman -- --
Directors
2. Mr. A.B.M Ruhul Azad Director -- --
Mashnoons Limited Chairman
Senior Vice-
Dhaka Chamber of Commerce and Industry
Chairman
(DCCI)
&Director
Mr. A.K.M. Kamrul Islam FCA,
3. Director Japan Bangladesh Chamber of Commerce
FCS
and Industries (JBCCI) Islam Aftab Kamrul & Director
Co.(Chartered Accountants)
Transparency International Bangladesh Partner

Chapter Life Member
Mr. Ishtiaque Ahmed

4. Director -- --
Chowdhury
5. Dr. Daulatunnaher Khanam Director -- --
6. Mr. Md. Mofazzal Husain Director -- --
7. Mr. Molla Abdul Wadud Director -- --
Annual Report 2021

Name of the firms/companies in which

interested as proprietor, partner. Managing
SI. Name Status with SBL Status
Director, managing agent, guarantor,
employee etc.
Professor Dr. Mohammad

8. Director -- --
Kaykobad
Institute of Bankers Bangladesh (IBB) Vice-Chairman
Sonali Exchange Co. Inc., New York, USA Director
Primary Dealers Bangladesh Ltd. (PDBL) Director
Investment Corporation of Bangladesh (ICB) Director
CEO & Sonali Investment Ltd. (SIL) Director

Mr. Md. Ataur Rahman
9. Managing
Prodhan Central Depository Bangladesh Ltd. (CDBL)
Director Director
Industrial and Infrastructure Development

Director
Finance Company Ltd (IIDFC)
Bangladesh Institute of Bank Management

Director
(BIBM)
Bangladesh Foreign Exchange Dealers

Member
Association (BAFEDA)
126
COMPARATIVE FINANCIAL
HIGHLIGHTS OF SBL
(Figure in million except stated otherwise)
Particulars 2021 2020 Increase(Decrease) Change %
Income Statement
Total revenue 85926 84780 1146 1.35
Total expenses 64441 63253 1188 1.88

Operating profit 20904 21527 (623) (2.89)
Profit before tax 5390 5342 48 0.90
Profit after tax 3456 3234 222 6.86
Earnings per share 7.63 7.14 0.49 6.86
Asset and Liabilities
Total Assets 1706803 1591233 115570 7.26
Earning Assets 1332237 1195517 136720 11.44
Total loans and advances 690596 586232 104364 17.80
Fixed Assets including Premises, Furniture and Fixture 33876 33891 (76) (0.22)
Total deposit 1350815 1258786 92029 7.31

Shareholders' equity 76742 85615 (8873) (10.36)
Capital
Paid up capital 45300 45300 0 0
Capital maintained 66872 63500 3372 5.15
Risk Weighted Assets (RWA) 666270 633601 32669 0.05
Capital required 66627 63360 3267 5.16
Capital Adequacy Ratio (CAR)/Capital to Risk weighted Assets
10.04% 10.02% 0.02 0.20
Ratio (CRAR)
Share Information
Earnings per Share 7.63 7.14 0.49 6.86
Net Assets Value per Share (NAVPS) 169.41 189.00 (19.59) (10.36)
Number of share (in million) 453.00 453.00 0 0
Regulatory Ratio
Cash Reserve Requirement (CRR) 13.00% 13.00% 0 0
Statutory Liquidity Ratio (SLR) 48.22% 50.02% (1.8) (3.59)
Capital Adequacy Ratio (CAR) 10.04% 10.02% 0.02 0.20
Credit Deposit Ratio 102.06% 96.59% 4.55 9.77
Asset Quality
Amount of classified loans and advances 119585 107673 11912 11.06
% of classified loans and advances 17.32% 18.37% (1.05) (5.71)
Required provision for loans and advances 75678 70166 5512 7.85
Annual Report 2021

GRAPHICAL
PRESENTATION
Operating Profit Net Profit After Tax
(Tk. in million) (Tk. in million)
7092
20904
21527
20257
17100
3457
11955
3234
2710
2264
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Shareholders' Fund Earning Per Share (EPS)

(Tk. in million) (in Tk.)
85616
18.50
76743
70137
68193
65902
7.63
7.14
5.98
5.47
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Paid up Capital Capital Adequacy Ratio*

(Tk. in million)
10.35%
45300
45300
45300
10.10%
10.09%
41300
10.04%
10.02%
38300
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
128
GRAPHICAL
PRESENTATION
Total Asset Earning Asset Non Earning Asset
1706803
1332237
1591234
1195517
1472601
1068333
1306842
1256712
930841
850536
404867
404269
395717
376002
374566
2021 2020 2019 2018 2017
2021 2020 2019 2018 2017
Return on Asset (ROA) Return on Investment (ROI)

0.58%
7.58%
7.29%
6.07%
5.87%
5.98%
0.21%
0.21%
0.20%
0.18%
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Net Asset Import Export Foreign Remittance

(Tk. in million) Tk. in million
Import Export Foreign Remittance
1155301
85616
76743
70137
68193
66087
314539
255965
257020
129056
125264
165662
102781
111483
92292
32503
25666
25173
32114
28495
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Annual Report 2021

GRAPHICAL
PRESENTATION
Loans & Advances and Classified Loans Classified Loan Recovery
Loans & Advances Classified Loans
36757
690597
31974
583233
551026
464166
423218
12590
10912
10501
149302
121883
119585
111994
107674
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Deposit Rate of Classified Loan

(Tk. in million)
1350816
35.28%
1258786
1158788
1097666
1064311
26.26%
20.32%
18.37%
17.32%
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Investment and Income from Investment No. of Branches

(Tk. in million)
Investment Income from Investment
1229
688065
1226
1224
629681
577
500387
440921
462
1215
1211
39996
38693
33956
34341
28144
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
130
KEY FINANCIAL DATA & RATIOS

(Figure in million except stated otherwise)
Particulars 2021 2020 2019 2018 2017
Balance Sheet
Authorized Capital 60000 60000 60000 60000 60000
Paid up Capital 45300 45300 45300 45300 41300
Reserve Fund and Surplus 31442 48998 22893 24837 24787
Total Shareholders’ Equity 76742 85616 68193 70137 66087
Deposits 1350815 1258786 1158788 1097666 1064311
Loans And Advances 690596 586232 551026 464166 423218
Investments 688064 629691 500387 440921 462577
Fixed Assets including Premises, Furniture and Fixture 33876 33891 33466 33377 33307
Total Assets 1706803 1591233 1472601 1306842 1256712
Total Off Balance Sheet Exposure 886193 949413 1022368 1097372 1148178
Earning Assets 1332237 1195517 1068333 930841 850536
Non-earning Assets 374566 395716 404269 376002 406175
Net Worth 76742 85616 68193 70137 66087
Income Statement
Interest Income 33744 31666 35955 32708 27674
Income on Investment 38693 40057 28144 34341 33956
Non-interest Income 13489 12824 12711 11272 12723
Total Income 85925 84780 76810 78321 74353
Interest Expenses 43537 41906 40083 39001 42900
Non-interest Expenses 21485 21346 19627 19063 19498
Total Expenses 65022 63253 59710 58064 62398
Net Interest Margin (NIM) 28900 30049 24016 28048 18730
Net Non-interest Expenses 7415 8703 6916 7791 6775
Operating Profit 20904 21526 17100 20257 11955
Earnings Before Provision, Depreciation and Tax 27237 22321 17680 20811 12460
Profit Before Provision and Tax 20904 21526 17100 20257 11955
Net Profit After Tax 3456 3234 2710 2264 7092
Capital Matrix
Risk Weighted Assets (RWA) 666270 633601 526242 530879 460763
Total Required Capital 66627 63360 52624 53088 46076
Total Regulatory Capital Maintained 66872 63500 53096 53617 47684
Capital Surplus/(Shortfall) 246 141 472 529 1608
Capital Adequacy Ratio (CAR) 10.04% 10.02% 10.09% 10.10% 10.35%
Core Capital Ratio 7.81% 7.68% 8.65% 8.18% 8.07%
Supplementary Capital Ratio 2.23% 2.34% 1.44% 1.92% 2.28%
Amount of Supplementary Capital 14863 14826 7574 10208 10517
Annual Report 2021


Particulars 2021 2020 2019 2018 2017
Financial Ratios (%)

Operating Profit Ratio 24.32% 25.39% 22.26% 25.86% 16.08%
Gross Profit Ratio 22.26% 25.39% 22.26% 25.86% 16.08%
Operating Profit as a % of Average Working Fund 1.24% 13.7% 1.17% 1.56% 0.98%
Return of Assets (ROA) 0.21% 0.21% 0.20% 0.18% 0.58%
Return of Equity (ROE) 4.26% 4.21% 3.92% 3.32% 10.63%
Return on Investment (ROI) 5.87% 7.13% 5.98% 7.58% 7.29%
Return on Loan and Advance 4.89% 5.57% 5.51% 5.74% 6.85%
Return on Capital Employed 1.46% 1.64% 1.42% 0.22% 1.22%
Return on Earning Assets 0.26% 0.27% 0.25% 0.24% 0.85%
Operating Profit per Employee 1.15% 1.14% 0.87 1.17 0.65
Net Profit per Employee 0.19 0.17 0.14 0.13 0.39
Operating Profit per Branch 17.00 17.56% 13.99 16.67 9.87
Net Interest Margin on Earning Assets(NIM) (.77)% (.86)% -.41% -.71% -1.85%
Efficiency Ratio 25.18% 25.18% 25.55% 24.33% 26.22%
Burden Ratio 0.42% 0.56% 0.50% 0.60% 0.56%
Cost of Deposit 3.34% 3.32% 3.55% 3.61% 4.09%
Yields on Loans and Advances 4.89% 5.57% 5.51% 5.74% 6.85%
Interest Spread 1.55% 1.1% 1.96% 2.13% 2.76%
Cost of Fund 4.98% 5.23% 5.29% 5.38% 5.95%
Cost to Income Ratio 75.67% 74.61% 77.74% 74.13% 83.92%
Debt Equity Ratio (Times) 21.24% 17.58% 20.59 17.63 18.02
Current Ratio (Times) 1.93% 1.89% 1.87 1.58 1.67
Net Asset Value per Share (NAVPS-in TK.) 169.41 189.00 150.54 154.83 160.02
Earnings per Share (EPS- In TK.) 7.63 7.14 5.98 5.47 18.50
Capital Adequacy Ratio (CAR) 10.04% 10.02% 10.09 10.10% 10.35%
Advance Deposit Ratio 51.12% 46.57% 47.55% 42.43% 39.76%
Cash Reserve Ratio / Liquidity Ratio (CRR) 13% 13% 7.90% 7.30% 8.08%
Statutory Liquidity Ratio (SLR) 48.22% 50.02% 41.57% 38.27% 44.13%
Foreign Exchange Business

Import 314539 165662 255965 257020 1155301
Export 32213 25173 25670 32503 28495
Foreign Remittance 125263 129056 111483 257020 129601
132

Particulars 2021 2020 2019 2018 2017
Asset Quality
Classified Loans and Advances(Non-performing Loans) 119585 107673 111994 121883 149302
Percentage of NPLs to Total Loans and Advance 17.32% 18.37% 20.32% 26.26% 35.28%
Required Provision for Unclassified Loans 12149 12460 5358 5223 2789
Required Provision for Classified Loans 63528 57705 53016 44046 38864
Total Required Provision for Loans and Adv 75677 70165 58374 49269 41034
Total Provision Maintained for Loans and Adv 75677 70165 58374 49269 41653
Provision Excess/(Shortfall) for Loans and Advances - - - - 619
General Provision Maintained 12149 12460 5358 5223 2789
Specific Provision Maintained 63528 57705 53016 44046 38864
Required Provision for Classified Investment 1454 178 2667 1579 571
Provision Maintained for Classified Investment 1454 178 2667 1579 571
Required Provision for Classified Other Assets 13637 2069 4786 4222 3294
Provision Maintained for Other Assets 13637 7250 4786 4222 3294
Total Classified Assets 119585 107673 111994 121883 149302
Total Un-Classified Assets 571012 478560 439032 342200 273916
Required Provision for Contingent Liabilities 2715 2366 2216 2383 2027
Provision Maintained for Contingent Liabilities 2715 2366 2216 2383 2027
Total Provision Required 95182 115331 69257 59313 47464
Total Provision Maintained 95182 82827 69257 59313 48082
Surplus/ (Shortfall) - - - - 619
Current Assets 523378 522001 499062 422591 438880
Current Liabilities 271265 275643 266687 268138 262856
Net Current Assets 252113 1069232 232375 154453 176024
Long Term Liabilities 1358796 1315590 1137722 968567 917768
Long Term Liabilities/Current Liabilities 5.01:1 4.77:1 4.27:1 3.61:1 3.53:1
Shares Information Matrix

No. of Shares 45300000 45300000 45300000 45300000 413000000
Earnings per Share (EPS- in Tk.) 7.63 7.14 5.98 5.47 18.50
Net Asset Value per Share (NAVPS-in Tk.) 169.41 189.00 150.54 154.83 160.02
Market Price per Share Not Listed in Stock Exchange
Dividend - - - - -
Right Share Issued - - - - -
Other Information
No. of Branches 1229 1226 1224 1215 1211
No. of Loss Branches 33 29 27 93 181
No. of Employees 18200 18918 19609 17271 18301
No. of Foreign Correspondents 694 684 669 669 649
Annual Report 2021

HORIZONTAL AND VERTICAL

ANALYSIS
OPERATING PERFORMANCE
Particulars 2021 2020 2019 2018 2017
Total Revenue 85925 84780 76810 78321 74353

Interest Expenses 43537 41906 40083 39001 42900
Administrative and Other Expenses 21485 21346 19627 19063 19498
Operating Profit 20903 21526 17100 20257 11955
Provisions including Amortization 15513 16184 12347 14006 2381
Profit Before Tax 5390 5342 4753 6251 9574
Provision for taxation 1933 2107 2043 3987 2482
Profit After Tax 3456 3234 2710 2264 7092
Reserve Fund 1162 1133 1001 1269 1918
EPS 7.63 7.14 5.98 5.47 18.50
Operating Performance
2021 2020 2019 2018 2017
EPS
Reserve Fund
Profit After Tax
Provision for Taxation
Profit Before Tax
Provision including Amortization
Operating Profit
Administrative and other Expenses
Interest Expenses
Total Revenue
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Operating Performance
2021 2020 2019 2018 2017
EPS
Reserve Fund
Profit After Tax
Provision for Taxation
Profit Before Tax
Provision including Amortization
Operating Profit
Administrative and other Expenses
Interest Expenses
Total Revenue
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
134
HORIZONTAL AND VERTICAL

ANALYSIS
BALANCE SHEET
Particulars 2021 2020 2019 2018 2017
Cash in Hand 7725 7300 7691 5017 5113

Balance With Bangladesh Bank and its Agent Bank 69801 83801 101073 93111 82883
Balance With Other Banks and FI's 38055 52308 87161 107494 68568
Money at Call and Short Notice 8663 9031 16274 19723 22565
Investments 688064 629691 500387 440921 462577
Loans and Advances 690596 586232 551026 464166 423218
Fixed Assets 33876 33891 33466 33377 33307
Other Assets 170020 188976 175523 143033 142101
Total Assets 1706803 1591233 1472601 1306842 1240332
Balance Sheet Analysis

2021 2020 2019 2018 2017
Cash in Hand
Balance with Bangladesh Bank and
Its Agent Bank
Balance with Other Banks and FI's
Money at Call and Short Notice
Investment
Loans and Advances
Fixed Assets
Other Assets
Total Assets
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Balance Sheet Analysis
2016 Cash in Hand

Balance With Bangladesh Bank
and its Agent Bank
2017
Balance With Other Banks and FI's
Money at Call and Short Notice
2018
Investments
Loans and Advances
2019
Fixed Assets
Other Assets
2020
Total Assets
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Annual Report 2021

GRAPHICAL PRESENTATIONS
OF PROFITABILITY, DIVIDEND,
PERFORMANCE AND
LIQUIDITY RATIO
Gross Profit Ratio Earning before Provision, Depreciation and Tax
27237
25.86%
25.39%
22321
22.26%
22.26%
20811
17680
16.08%
12460
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Current Ratio (Times) Return on Equity (ROE)
10.63%
1.93
1.87
1.89
1.67
1.58
4.26%
4.21%
3.92%
3.32%
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Return on Loans & Advances Debt Equity Ratio (Times)

21.24
20.59
6.85%
18.02
5.74%
17.58
5.57%
17.63
5.51%
4.89%
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Cost to Income Ratio Efficiency Ratio

83.92%
77.74%
26.22%
75.67%
74.61%
74.13%
25.55%
25.18%
25.18%
24.33%
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
136
SEGMENT WISE
GRAPHICAL PRESENTATIONS
Segment of Total Revenue Comparison of Segmented Capital
2021 2020
39%
45300
45300
36494
36328
22121
24249
Income on Investment
14547
13469
Interest Income
45% Retained Earnings
Non Interest Income
Paid up Capital Statutory Reserve Other Reserve Asset Revaluation
Reserve
7353.57
9647.58
16%
Division wise Deposit Division wise Loans and Advances

7%
4% 4% 9%
1%
6%
Dhaka Dhaka
9%
Mymensingh Mymensingh
Barisal Barisal
7%
20% Chittagong Chittagong
Rajshahi Rajshahi
Rangpur 8% Rangpur
53%
Sylhet 3% 59% Sylhet
3%
4%
3% Khulna Khulna
Division wise Income vs Expenses Division wise Operating Profit

Tk. in million
Income Expenses 5% 3% 4%
3% Dhaka
Khulna
Barisal
Sylhet
Chittagong
Rangpur
Rajshahi
Rajshahi
Chittagong 57% Rangpur
27%
Barisal Sylhet
Dhaka
Khulna
0% 20% 40% 60% 80% 100%
1%
Industry wise Loans and Advances Sector WIse Loan & Advances
2%
Rural Credit
13% 71%
21% Micro Credit
2% Private
Industriul Credit
Agro based Industrial Credit

Other Public
8% 11%
International Trade
SME Finance
Government
General Adnce and Others
43% 28%
1%
Annual Report 2021

STATEMENT OF VALUE ADDITION

AND ITS DISTRIBUTION
This statement shows the process of generating the value and its distribution among the stakeholders of Sonali Bank Limited
through the placement and improvement of assets and operations consequently. The comparative value added statement
of the Bank for the year 2021 and 2020 is illustrated below:
Distribution of Value Distribution of Value

Addition 2021 Addition 2020
Particulars
In Taka in In
Taka in Million.
percent Million. percent
a) Income from Banking Services 85,925.37 84,779.88
b). Less: Cost of Services and Supplies 49,431.21 48,103.63
c) Value Added by the Banking Services (a-b) 36,494.15 36,676.25
d) Less: Non Banking Expenses 1,422.29 1,601.82
e) Less: Loan Loss Provisions 15,513.28 16,184.78
Value Added (c-d-e) 19,558.58 18,889.64
Distribution of Value addition:
i) To Employees as Salaries, allowances and bonuses: 14,831.88 76% 14,431.98 76%
ii) To Expansion and Growth:
Statutory reserve 1,078.09 6% 1,068.43 6%
General Reserve 50.00 0% 50.00 0%
Reserve for Unwanted Risk arising from Vault - 0% 15.00 0%
Start-Up Fund 34.57 0% - 0%
Retained earnings 2,294.01 12% 2,100.92 11%
Depreciation 758.53 4% 717.34 4%
Taxation 511.51 3% 505.98 3%
Sub Total 4,726.70 24% 4,457.67 24%
Total (I+ii) 19,558.58 100% 18,889.64 100%
Distribution of Value Addition-2021

5% 0%
12%
4% To Employees as Salaries,
3% allowances and bonuses:
Statutory reserve
General Reserve
Retained Earnings
Depreciation
Taxation
76%
138
ECONOMIC VALUE
ADDED STATEMENT
Economic value added, developed to assess the accurate economic profit produced by a company, frequently refers to a
measurement of a bank’s economic success (or failure) over a period of time which takes into consideration the cost of total
invested equity. Stakeholders and shareholders are always determined to know how well the bank has produced value for its
investors and how well the bank is operating.
2021 2020 2019 2018 2017

Particulars Taka in Taka in Taka in Taka in Taka in
Million. Million. Million. Million. Million.
Shareholders” Equity 76,743 85,616 68,098 70,137 66,087
Add: Cumulative provision for Loans, Investment, Other
94,967 82,833 69,273 59,323 48,082
Asset and Off Balance sheet exposures
Total Invested Fund 171,710 168,449 137,466 129,460 114,169
Average shareholders’ equity 81,179 76,857 69,165 68,112 66,731
Earnings:
Profit after Tax 3,457 3,234 2,710 2,264 7,091
Add: provision for loans and other during the year 15,513 16,184 12,347 14,006 2,380
Less: Written off loan recovered during the year 1,673 550 443 945 387
Earning for the year 17,297 18,868 14,614 15,325 9,084
Average cost of equity
Based on weighted average rate of 10 years treasury bond

10.50% 10.66% 11.00% 11.11% 11.23%
issued by Bangladesh Government +2% risk premium
Cost of average equity 1,816.19 2,011.33 1,607.54 1,702.61 1,020.13

Economic value added 15,480.82 16,856.67 13,006.46 13,622.39 8,063.87
Growth over last year (8.16) 29.60 (4.52) 68.93 492.72
Economic Value Added

16857
15481
13622
13006
8064
2021 2020 2019 2018 2017
Annual Report 2021

MARKET VALUE
ADDED STATEMENT
Market Value Added (MVA) statement is the difference between the current total market value and the capital contributed by
investors. A high MVA indicates that the bank has created substantial wealth for the shareholders. The calculation of MVA is
given below.
Market Value Added = Market Value - Capital Invested
SBL is a non listed banking company. Its shares are not publicly traded. So, its market value is not available. But considering
the intrinsic value method, its shares have been valued and accordingly the market value has been prepared.
Calculation of Market value added

Particular Number of Shares Value Per Share (Taka) BDT
Intensive value per share 453,000,000 169.41 76,742,730,000
Book Value 453,000,000 100.00 45,300,000,000
Market Value Added 453,000,000 69.41 31,442,730,000
Maintaining Liquidity
Maturity Analysis Below 1 year 1-5 years Above 5 years Total

Interest earning Assets 532,894,877,754 317,648,922,827 481,693,393,803 1,332,237,194,384
Non-interest earning Assets 112,369,876,910 157,317,827,673 104,878,551,783 374,566,256,366
Total Assets 645,264,754,664 474,966,750,500 586,571,945,586 1,706,803,450,750
Interest bearing Liabilities 1,151,271,798,237 101,474,044,310 98,564,355,868 1,351,310,198,415
Non-interest bearing Liabilities 19,862,905,001 67,422,879,917 191,464,572,492 278,750,357,410
Total Liabilities 1,171,134,703,238 168,896,924,227 290,028,928,360 1,630,060,555,825
Net Liquidity Gap (525,869,948,574) 306,069,826,273 296,543,017,226 76,742,894,925
The liquidity policy of the Bank has always been to carry a mismatch in the interest earning assets and interest bearing
liabilities in the 1-30 days category. The liquid assets ratio of SBL stood at 48.22% (required 19.50% of total demand and time
deposits) in December 2021.
The Asset Liability Committee (ALCO) of the Bank monitors the situation and maintains a satisfactory trade-off between
liquidity and profitability.
Payment of Dividend
The dividend policy of the Bank aims at offering a decent dividend to its shareholders after strengthening funds, maintaining
positive growth and fulfilling capital requirements by retaining sufficient profit. As the retained earnings of SBL is still negative,
the Bank has not recommended any dividend for the year 2021.
Maintaining Capital Adequacy

Eligible Capital 2021 2020
Tier-1 (Core capital) 52,009.01 48,674.18
Tier-2 (Supplementary capital) 14,863.89 14,826.68
Tier-3 (eligible for market risk only) - -
Total Eligible capital 66,872.90 63,500.86
Total risk weighted assets (RWA): 666,270.40 633,601.70
Capital to Risk Weighted Asset Ratio (CRAR)/ (CAR) 10.04% 10.02%
Core capital to RWA 7.81% 7.68%
Supplementary capital to RWA 2.23% 2.34%
Minimum capital requirement (MCR) 66,627.04 63,360.17
Capital surplus/(shortfall) 245.86 140.69
140
FINANCIAL CALENDER 2021

Financial Calender 2021
Events Status Date
15th Annual General Meeting Will be held on 07 July 2022
Financial Statement for the year 2021 Signed on 28 April 2022
Audited consolidated results for the 4th quarter ended 31 December 2021 Announced on 28 April 2022
Unaudited solo results for the 1st quarter ended 31 March 2021 Announced on 30 April 2021
Unaudited solo results for the 2nd quarter ended 30 June 2021 Announced on 31 July 2021
Unaudited solo results for the 3rd quarter ended 30 September 2021 Announced on 31 October 2021
Financial Calender 2022 (Proposed)
Events Status Date
16th Annual General Meeting Will be held on 28 Fabruary 2023
Financial Statement for the year 2022 Will be Signed on 23 Fabruary 2023
Will be Announced
Audited consolidated results for the 4th quarter ended 31 December 2022 23 Fabruary 2023
on
Unaudited solo results for the 1 st quarter ended 31 March 2022 Announced on 28 April 2022
Will be Announced
Unaudited solo results for the 2nd quarter ended 30 June 2022 28 July 2022
on
Will be Announced
Unaudited solo results for the 3rd quarter ended 30 September 2022 27 October 2022
on
Annual Report 2021

CREDIT
RATING
Credit Rating Information and Services Limited(CRISL) rated Sonali Bank Limited in their report; they rated the Bank AAA
as With Government Support for long term and ST-1 for short term. They also rated the Bank A as Without Government
Support for long term and ST-2 for short term. The outlook of the rating is stable. The rating company performed the rating
surveillance based on Audited Financial Statements and other relevant information based on 31 December 2020.
Upto October 2022 Upto November 2021

Surveillance Rating
Long Term Short Term Long Term Short Term
As Government Supported Bank AAA ST-1 AAA ST-1
Without Govt. Supported Bank A+ ST-2 A ST-2
Outlook Stable Stable
142
ROOPPUR NUCLEAR POWER PLANT

2.4 GWE NUCLEAR POWER PLANT
IN BANGLADESH
Annual Report 2021

REPORT ON
CORE RISK
MANAGEMENT
Risk Management at our bank includes risk identification, risk assessment, risk measurement and risk mitigation and its
main objective is to minimise negative impact on profitability and capital. Banks are, therefore, required to maintain and
organizational unit in charge of risk management. Banks face various risks throughout its overall business activities. The major
risks are credit risk, market risk, liquidity risk and operational risk which includes IT risk. An independent Risk Governance
Structure, in line with international best practices, has been put in place, in the context of separation of duties and ensuring
independence of Risk Measurement, Monitoring and Control functions. The core aim of all process is to provide adequate
transparency and understanding of the existing and emerging risk issues and to ensure a holistic cross-risk perspective.
Risk Management Framework

Risk management process of SBL is based on the Bangladesh Bank guidelines and the clear concept of identification,
assessment, parameter setting, controlling and monitoring activities. The primary goals of risk management are to ensure
that the outcomes of risk-taking activities are consistent with the Bank’s strategies and risk appetite, and that there is an
appropriate balance between risk and reward in order to maximize return.
The risk management framework is applied on an enterprise-wide basis and consists of three key elements:
A. Risk Governance, B. Risk Appetite, and C. Risk Management Tools
RISK MANAGEMENT
TOOLS POLICY & LIMITS
GUIDELINES,PROCESS
RISK GOVERNANCE
& STANDARDS MEASURING,
MONITORING,REPORTING
STRESS TESTING
RISK APPETITE,
RISK TOLERANCE, RISKS CREDIT, MARKET,
RISK LIMIT, LIQUIDITY, OPERATIONAL,
RISK APPETITE ICT, AML,ENVIRONMENTAL,
STATEMENT OTHERS
144
RISK MANAGEMENT
Risk Management Framework

Risk Governance:
The various risks across Bank is monitored and reviewed through the Executive Level Committee and the Risk Management
Committee of the Board which meets regularly. Risk Management Committee at Operational unit and Business unit level
are also in place.
BOARD’S RISK
MANAGEMENT COMMITTEE
RISK MANAGEMENT
COMMITTEE AT
MANAGEMENT LEVEL
Internal
Asset Liability Foreign Anti Money
Credit Risk Control and ICT Risk
Risk Exchange Risk Laundering Risk
Management Compliance Risk Management
Management Management Management
Committee Management Committee
Committee Committee Committee
Committee
Risk Management Division

As per BB’s instruction SBL has reformed its risk management division in following structure:
CHIEF RISK OFFICER (CRO)

(DMD)
HEAD OF DIVISION
(DGM)
CRM Capital ALM ICC Stress AML ICT FX

Desk Management Desk Desk Test Desk Desk Desk
Desk Desk
Annual Report 2021

Risk Appetite
Effective risk management requires clear articulation of the Bank’s risk appetite
and how the Bank’s risk profile will be managed in relation to that appetite. SBL
started preparing its risk appetite statement from 2016 as per Bangladesh Bank’s
guideline. The Bank’s Risk Appetite Framework consists of a risk capacity, risk Key Risk
appetite statement and key risk appetite measures. Together application of the Appetite
Measures
risk appetite statement and monitoring of the key risk appetite measures help to
ensure the Bank stays within appropriate risk boundaries. The Bank’s Credit Risk
Appetite further defines the Bank’s risk appetite with respect to lending, counter-
party credit risk, and other credit risks (such as investments). Risk
Appetite
The Bank’s Risk Appetite Framework combines qualitative and quantitative terms Risk
Risk Appetite
of reference to guide the Bank in determining the amount and types of risk Capacity Statement
it wishes to prudently undertake in pursuing the Bank’s strategic and financial
objectives. Key risk appetite measures provide clear idea of risk tolerance
and risk limits which are critical in implementing effective risk management. For major risks (credit, market, liquidity, and
operational), the key risk appetite measures are supported by management level limit structures and controls. Management’s
dedicated attention to these risks creates a focus on forward looking activities that keeps the Bank within its risk appetite on
an on-going basis.
Risk Management Tools

Effective risk management deploys tools that are guided by the Bank’s Risk Appetite Framework and integrated with the
Bank’s strategies and business planning processes.
Guidelines,Process Policies
& Standards & Limits
RISK MANAGEMENT
Measurment, TOOLS
Stress Testing,
Monitoring
RMP,CRMR
and Reporting
Policies, Procedures and Limit Structure of SBL

z Risk Management policies, procedures and limits are properly documented;
z Policies are reviewed annually or on demand basis;
z All policies and procedures are duly approved by the Board of Directors;
z Policies are assigned with full accountability and clear lines of authority for each activity and product area;
z A compliance monitoring procedure has been deployed for all policies;
z An independent internal control unit has been formed in SBL to check internal compliance;
z Provide a comprehensive Bank wide view of risks across at material risk types.
Guidelines, Processes and Standards

Guidelines are the directives provided to implement policies as set out above. Generally, they describe the facility types,
aggregate facility exposures and conditions under which the Bank is prepared to do business. Guidelines ensure the Bank
has the appropriate knowledge of clients, products, and markets
and that it fully understands the risks associated with the business it underwrites. Guidelines may change from time to time,
due to market or other circumstances. Risk taking outside of guidelines usually requires approval of the Bank’s Managing
Director & CEO.
146
RISK MANAGEMENT
Processes are the activities associated with identifying, evaluating, documenting, reporting and controlling risks.
Standards Define the breadth and quality of information required to make a decision, and the expectations in terms of quality
of analysis and presentation. Processes and standards are developed on an enterprise-wide basis, and documented in a
series of policies, manuals and handbooks under the purview of Risk Management Division. Key processes cover the review
and approval of new products, model validation and stress testing.
Risk Measurement, Monitoring and Management Reporting System

An effective risk monitoring procedure exists in the Bank to identify and measure all quantifiable and material risk factors;
SBL has a separate Management Information Systems (MIS) Division which provides necessary information to Risk
Management Division and Senior Management for understanding the bank’s position and risk exposure in time;
Disclosure of risk reporting

Risk management activities are being reported to both internal and external controlling authorities seeking further direction
for proper and timely mitigation of risks:
Reporting to
Management
Reporting to
Board of Directors
Risk Reporting
Reporting to
Central Bank
Risk Management Paper (RMP) consisting of various data related to Credit Risk, Market Risk, Liquidity Risk and Operational
Risk from all related divisions are presented in the monthly meeting of all Risk Committee and Sub-risk Committee conducted
under the supervision of Risk Management Division (RMD). Subsequently, the RMP is submitted to the Risk Management
Committee of the Board and the decisions are communicated to relevant divisions of the bank for implementation. The
report also submitted to Bangladesh Bank on monthly basis. Bangladesh Bank also determines the status of risk management
of the bank on the basis of RMP and provides Risk Management rating bi-annually which is ultimately considered in the
CAMELS rating of the Bank.
Capital Adequacy as on 31’st Dec 2021
(Tk. in million)
Required CRAR 10% of Risk Weighted Asset
Risk Weighted Asset 66627
Minimum Capital Requirement 6662
Capital maintained 6687
Capital surplus 25
Present CRAR 10.04%
Annual Report 2021

Stress testing is a simulation technique to determine the reactions of different financial institutions under a set of exceptional,
but plausible assumptions. A stress test, in financial terminology, is an analysis or simulation designed to test the ability of a
given financial institution to deal during forecasted economic crisis. Instead of doing financial projection on a “best estimate”
basis, a bank or its regulators do stress testing where it looks at how robust institutions is in certain crashes a kind of “what if”
scenario analysis. This type of analysis has become increasingly widespread and has been taken up by various Governmental
bodies as a regulatory requirement on certain financial institutions to ensure adequate capital allocation to cover potential
losses incurred during extreme, but plausible events. Stress testing framework as provided by Bangladesh Bank assesses
the impact on CRAR due to minor, moderate and major level of shock in terms of credit risk, exchange rate risk, liquidity
risk, equity price risk and interest rate risk. Stress testing for credit risk assesses the impact of increase in the level of Non-
Performing Loans (NPLs) of the banks.
Comprehensive risk management report (CRMR) is prepared on half yearly basis to record 81 risks related issues of credit,
market and operational risk across the Bank and submitted to Bangladesh Bank. Bank Risk Management Committee (BRMC)
reviews this paper and recommends action plans to concern department for mitigating identified risk areas and follow-up
the implementation of previous recommendations.
Credit Risk: Credit Risk is defined as the possibility of losses associated with the diminution in the credit quality of borrowers
or counterparties from outright default or from reduction in portfolio value. Credit Risk emanates from a bank’s dealings with
an individual, non-corporate, corporate, Bank, financial institution or sovereign.
Analysis of Stress Testing Result as on 31 December 2021
After Minor After Moderate After Major Shock
Individuals Shock
Shock (%) Shock (%) (%)
Performing loan directly downgraded to B/L: Sectoral
1 9.96 9.79 9.63
Concentration 1
Performing loan directly downgraded to B/L: Sectoral
2 9.98 9.88 9.77
Concentration 2
3 Increase in NPLs due to default of Top large borrowers (4.12) (7.72) (8.07)
4 Negative Shift in NPLs categories 9.21 (1.05) (2.85)
5 Decrease in the FSV of the Collateral 9.34 8.63 7.19
6 Increase in NPLs 8.64 5.45 1.16
7 Interest Rate 6.81 3.57 0.34
8 FEX: Currency Appreciation 9.97 9.90 9.83
9 Equity Shock 9.00 7.94 5.73
Combined Shock 2.78 (15.75) (28.78)
credit quality of borrowers or counterparties from outright default or from reduction in portfolio value. Credit Risk emanates
from a bank’s dealings with an individual, non-corporate, corporate, Bank, financial institution or sovereign.
Mitigation Measures:
A. Policy Guidelines
z Lending Guidelines
z Credit Assessment and ICRRS
z Approval Authority
z Segregation of Duties
z Internal Audit
B. Preferred Organizational Structure

SBL has decentralized credit risk management system. Based on delegation of power the following authority plays role in this regard.
z Role of the Board of Directors
z Role of Senior Management
z Role of the Credit Risk Management Committee
z Organisational Structure of Credit Offcials
C. Procedural Guideline
z Credit Administration
z Credit Monitoring
z Credit Recovery
148
RISK MANAGEMENT
z Other Regulations of BB Relating to Credit Risk

z Policy on Loan Classifications
z Policy on Single Borrower Exposure
z Policy For Rescheduling of Loans
z Policy For Loan Write Off
z Guidelines on Managing Core Risk in Banking
z Guidelines on Environmental Risk Management
z Restrictions on Lending to Directors of Private Banks
z Implementation of Credit Risk Grading Manual
z Prudential Guidelines for Consumer Financing and Small Enterprise Financing
z Green Banking
Asset-Liability Risk
ALM is a process to manage the composition and pricing of the assets, liabilities and off balance sheet items and aims to
control banks exposure to market risks, with the objective of optimizing net income and net equity value within the overall
risk preferences of the Bank. ALM programs focus on interest rate risk, liquidity risk and foreign exchange risk as those
represent the most prominent risks and may affect the overall balance-sheet of the organization. Individual risk mitigation
methodology is discussed hereinafter.
ALCO: The responsibility of Asset Liability Management is assigned to the Treasury Management Division of this Bank.
Specifically, the balance sheet used to manage by the Asset Liability Management (ALM) desk which has established on the
Treasury Division.
STRATEGIC & BUSINESS RISK
Market Risk:
LIQUIDITY RISK
Market risk is the potential of losses to income or the value
of asset, liabilities and equity arising from changes in market
prices. Such market prices may include reference Interest REPUTATION & BEHAVIORAL RISKS

rates, Foreign Exchange rates, Traded Prices of Equity Shares Credit & Operational
Counterparty Risk & AML
and other commodities etc. Risk or CFT
C A P I TA
Liquidity Risk:
Interest Foreign
It generates from the failure or inability to meet current and
CO
Rate Exchange
Risk Rate Risk
future financial obligations by bank due to shortfall of cash
LA
VE
NA
or cash equivalent assets. Banks are exposed to liquidity risk
DE
Q REPUTATION & BEHAVIORAL RISKS NT

where the more liquidity is generated, the greater are the UA RI S
CY K
possibility and severity of losses associated with having to RIS
K
dispose of illiquid assets to meet the liquidity demands of
depositors. However besides depositor, revealed that banks STRATEGIC & BUSINESS RISK
that make commitments to lend are exposed to the risk of
unexpected liquidity demands from their borrowers.
Statutory liquidity ratio of SBL Structural Liquidity Profile
Particulars Dec- 2020 Dec- 2021 Particulars Dec- 2020 Dec- 2021 Ideal Scenario
Required 4.00 % 4.00% LDR 46.57 % 51.12% 82%-85%

CRR
Maintained 7.7 % 6.2% MCO 11.56 11.88% 20%
Required 13.00 % 13.00%

SLR
Maintained 42.32 % 48.22%
Foreign Exchange Risk: The risk of an investment’s value changing due to changes in currency exchanges rate. The risks
that an investor will have to close out a long or short position in a foreign currency at a loss due to an adverse movement
in exchange rates also known as “currency risk” or “exchange-rate risk”. The Bank has Foreign Exchange Risk management
policies approved by the Board of Directors. Treasury management division is carrying out treasury operations in accordance
with the policies and procedures and effective risk management framework. The Front office, Mid office and Back office
have been segregated as per the Bank policy. Mid office which is independent of risk taking unit, is responsible for risk
management, monitoring, internal controls and management reporting.
Annual Report 2021

The Mid office revalues all Nostro and Vostro balances at current market rates on the last working day of each month to
monitor risk levels of the Bank.The management reports generally contain the following information:
i) Foreign exchange risk exposures;
ii) Information on adherence to policies and limits;
iii) Findings of risk reviews on foreign exchange risk policies and procedures.
The mid office conducts reviews of internal control and risk management process to ensure its integrity, accuracy and
reasonableness and is responsible for the following works related to both internal and external audits.
i) Making all out efforts to get all the audit objections settled within specified time;
ii) Preparing the compliance report and forwarding the same to audit teams.
The following measures have been taken to control foreign exchange risks:
i) Set counterparty limit (Revised on 27.04.2014)
ii) Set limit for open position
iii) Monitor market movements
iii) Timely reconciliation
iv) Imposed Dealer’s dealing limits- Intra-day limit, per deal limit, stop loss limit per day, loss limit per deal.
v) Concurrent auditor has been posted to oversee day to day treasury operations;
vi) Introduction of verification system for payment instruction (PI) through SWIFT message MT 202 and MT 740
vii) Reports prepared by the front office regarding Foreign Exchange deal containing information of Blotter Size Limit, Deal
Amount (Currency wise), Gross Profit, Net Profit and Limit Breach has presented to the higher authority on daily basis.
Anti-Money Laundering Risk (AML): It arises from the practice of disguising the origins of illegally- obtained money (drug
dealing, corruption, accounting fraud and other types of fraud, and tax evasion etc.) through banking channel and the
proceeds of crime are made to appear legitimate. SBL has fully confirmed the above issues. In order to mitigate money
laundering risk, SBL has assigned CAMLCO in its head office and BAMLCO in all branches.
The following major issues that bank have been incorporated in the respective policy and followed them to mitigate money
laundering risk:
z Bank has developed, administered, and maintained an anti-money-laundering compliance policy.

z The policies have been tailored to the institution and based upon an assessment of the money laundering risks.
z The policy address its know your customer (KYC) policy and identification procedures before opening new
accounts, monitoring existing accounts for unusual or suspicious activities.
z It also includes a description of the roles and responsibilities of the anti-money laundering compliance
officers(s)/unit and other appropriate personnel will play in monitoring compliance with and effectiveness of
money laundering policies and procedures.
z There is a monitoring unit to monitor unusual/suspicious transaction which needs to be reported to
Bangladesh Bank.
z Cash transaction report (CTR) is being sent to Bangladesh Bank on monthly basis for cash transaction of 1.00 million
or above in a day.
z During inspection the branches, the auditors report provided by BB about strengthening the on-site and off-site
supervision relating to prevent money laundering and terrorist financing.
Internal Control and Compliance (ICC) Risk: Our management of operational risk and compliance obligations has not kept
pace with increasing demands. A good risk culture is one where risk management is everyone’s job. We will preserve the
customer orientation of our culture, but apply lessons from best-in-class organisations that have built strong operational risk
cultures.
We will do what it takes to fix the root causes of issues, including governance, capability, culture and investment. Bank has
introduced risk registrar for ancipating the risky issues earlier.
The main objectives of internal control are as follows:
150
RISK MANAGEMENT
z Performance objectives: To maintain the efficiency and effectiveness of overall operating activities.
z Information objectives: To ensure the reliability, completeness and timelines of financial and management
information.
z Compliance objectives: To ensure the robust compliance with applicable laws and regulations.
Information and Communication Technology (ICT) Risk: SBL has formulated the ICT policy to use as a minimum
requirement and as appropriate to the level of its IT operation. The guidelines includes IT security policy, physical security
policy, password policy, anti-virus policy, server security policy, IT assets administration and management policy, disaster
management policy and system audit policy. SBL has adopted sufficient measures to protect the safety and security of
information and communication platform from unauthorized access, modification, virus, disclosure, cyber security and
destruction in order to ensure business continuity, data safety and security thereby protecting customers’ interest at large.
SBL has appointed Chief Information Technology Officer (CITO) for managing ICT risk in day to day service properly.
Internal Capital Adequacy Assessment Process (ICAAP)
The bank developed ‘Internal Capital Adequacy Assessment Process-ICAAP’ document following the ‘Revised Process
Document for SRP-SREP Dialogue on ICAAP, 31-May-2014’ of Bangladesh Bank. This document covers capital charge
process under Pillar II Supervisory Review Process (SRP) for the following risk areas:
Sl. Types of Risks Risk Area
Error in documentation
1 Residual Risk
Error in valuation of collateral
2 Evaluation of Core Risk Management Ratings of Core Risks implementation
Credit Concentration Risk

3 Credit Concentration Risk
Market Concentration Risk
Cash Reserve Ratio (CRR)

Statutory Liquidity Ratio (SLR)
4 Liquidity Risk Medium Term Funding (MTFR)
Maximum Cumulative Outflow (MCO)
Advance Deposit Ratio (ADR)
Credit Rating conducted by ECAIs

Internal Fraud
5 Reputation Risk
External Fraud
Non-Payment or Delayed payment of accepted bills
6 Settlement Risk Issues of foreign trade settlement
All types of receivables
CAMELS rating
Operating expenses
Classified loans ratio
7 Strategic Risk Recovery of classified loan
Written-off loans
Interest waiver
Cost of fund
8 Environmental & Climate change Risk Damage of assets from adverse change of environment
9 Other Material Risk Other risks that may jeopardize bank’s assets or income.
Annual Report 2021

DISCLOSURE ON RISK BASED

CAPITAL UNDER BASEL III
BASEL III & MARKET DISCIPLINE
The purpose of Market discipline in the Revised Capital adequacy Framework is to complement the minimum capital
requirements and the supervisory review process. The aim of introducing Market discipline in the revised framework is to
establish more transparent and more disciplined financial market so that stakeholders can assess the position of the bank
regarding holding of assets and to identify the risks relating to the assets and capital adequacy to meet probable loss of assets.
The reports are purported to affirm the information on Minimum Capital Requirement (MCR) under pillar-I and Supervisory
Review Process (SRP) under pillar-II and ensure transparency about the capital adequacy framework, risk assessment and
mitigation methodologies, risk exposure in various spectrum so that the stakeholders of the industry can examine the risk
related compliance of the Bank.
In a nutshell the purpose of this Disclosure Report is to set out how Sonali Bank Limited complies with the Pillar-III requirements
under Basel-III. The following detailed qualitative and quantitative disclosures are prepared in accordance with guidelines on
Risk Based Capital Adequacy (Basel-III) framework by Bangladesh Bank on December 2014.
A) Scope of application
Qualitative Disclosures
(a) Sonali Bank Limited, 100% state owned commercial Bank manages its risk and maintains risk based capital following the
guidelines of Bangladesh Bank.
(b) Capital to Risk-weighted Assets Ratio (CRAR) report of Sonali Bank Limited is submitted to Bangladesh Bank on ‘Solo’
basis as well as ‘Consolidated’ basis.
‘Solo Basis’ refers to all position of the bank and its local and overseas branches/offices; and
‘Consolidated Basis’ refers to all position of the bank and its subsidiary companies.
Sonali Bank’s subsidiary companies are as under:
1) Sonali Investment Limited, a entirely owned subsidiary in Dhaka, Bangladesh.
2) Sonali Exchange co. Inc. (SECI), an entirely owned subsidiary in USA.
3) Sonali Bank (UK) Limited, 51% share capital of the company is held by the Government of the People’s Republic of
Bangladesh and the remaining 49% shares hold by Sonali Bank Limited. It is operating in London and Birmingham.
Sonali Bank’s associates companies are as under:
1) Sonali Intellect Limited, The ownership of the company having 51% share capital in favor of Polaris Financial Technologies
Ltd. India, 35% by Sonali Bank Limited and remaining 10% & 4% by Bangladesh Commerce Bank Ltd. and Pantho Soft Ltd.
respectively. It is operating in Dhaka, Bangladesh.
(c) Sonali Bank Limited transfers funds or regulatory capital within the group (subsidiaries & associate) as per Banking rules
and regulations with the approval of the Board / Competent Authority.
Quantitative Disclosures
The following subsidiaries & associates has included their financial

(d) (Tk. in Crore)
activities and their aggregate capital is as under:
z Sonali Investment Limited 200.00
z Sonali Exchange co. Inc. (SECI) 8.15
z Sonali Bank (UK) Limited 338.30
z Sonali Intellect Limited 2.63
B) Capital structure
(a) The regulatory capital under Basel-III is composed of (I) Tier-1 (Going- concern Capital) and (II) Tier-2 (Gone-concern
Capital). From regulatory capital perspective, going-concern capital is the capital which can absorb losses without
triggering bankruptcy of the Bank and gone-concern capital is the capital which will absorb losses only in a situation of
liquidation of the Bank.
152
In terms of Section 13 of the Bank Company Act, 1991 (Amended up to 2013), the terms and conditions of the main features
of all capital instruments have been segregated in terms of the eligibility criteria set forth vide BRPD Circular No. 18 dated
21 December 2014 [Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for Banks in line
with Basel III)] and other relevant instructions given by Bangladesh Bank from time to time. The main features of the capital
instruments are as follows:
Common Equity Tier 1 (CET1) Capital (Going Concern Capital):

Paid-up share capital: Issued, subscribed and fully paid up share capital of the Bank.
Statutory reserve: As per Section 24 of the Bank Company Act, 1991 (Amended up to 2013), an amount equivalent to 20% of
the profit before taxes for each year of the Bank has been transferred to the Statutory Reserve Fund.
General Reserve: General reserve created out of profit.
Retained earnings: Amount of profit retained with the banking company after meeting up all expenses, provisions and
appropriations.
Additional Tier 1 (AT1) capital: There is no Additional Tier-1 capital instrument at this moment.
Tier 2 Capital (Gone Concern Capital):
General provision: As per Bangladesh Bank directive, amount of provision maintained by Bank.
Revaluation reserves of Assets, HTM securities & HFT securities: As per Bangladesh Bank’s instruction, until 31 December 2014,
50%, 50%& 10% of revaluation reserve respectively of Banks Assets, HTM securities & HFT securities has been considered.
Revaluation Reserve (RR) based on the position as of 31 December 2014 has been adjusted @ 20% on yearly basis from 2015
to 2019 under Basel III guideline.
(b) Regulatory Capital of Sonali Bank Limited on the basis of Audited Balance Sheet of 31st December 2021 has been
calculated as per Basel-III guidelines on ‘Solo’ basis as well as ‘Consolidated’ basis as shown below.
Regulatory Capital (Tk. in Crore)

Common Equity Tier1 Capital(Going Concern Capital) : Solo Conso
Paid up capital 4530.00 4530.00
Statutory reserve 1,454.71 1454.71
General reserve 16.68 26.19
Retained earnings (735.36) (687.67)
Minority Interest in subsidiaries /Non-Controlling Interest - 369.22
Sub-Total 5266.03 5692.45
Regulatory Adjustments Solo Conso
Goodwill and all other Intangible Assets (Software) 65.13 66.53
Total Common Equity Tier 1 capital [A] 5200.90 5625.92
Additional Tier 1 (AT1) capital [B] - -
Tier-2 Capital (Gone Concern Capital) Solo Conso
General provision 1486.39 1486.39
Total of Tier 2 capital [C] 1486.39 1486.39
Regulatory Adjustments/Deductions from Capital. Solo Conso
Total of Deduction [D] - -
Total eligible capital [A+B+C-D] 6687.29 7112.31
Solo Tier 1 Conso Tier 1

0% 0%
% 10%
% 11% 21
22
Paid up capital
Paid up capital
Statutory reserve
Statutory reserve
General reserve
General reserve
Retained earnings
Retained earnings
Non Controlling Interest
64%
67%
Annual Report 2021

Comparison of Capital
Tier 2 Capital (Tk. in Crore)
Tier-1 Tier-2
0%
5200.90
5625.92
General Provision
Revaluation Reserve
1486.39
1486.39
100%
SOLO CONSO
C) Capital Adequacy
The Bank assesses the adequacy of its capital in terms of Section 13 (1) of the Bank Company Act, 1991 (Amended up to 2013)
and instruction contained in BRPD Circular No. 18 dated 21 December 2014 [Guidelines on ‘Risk Based Capital Adequacy for
Banks’ (Revised regulatory capital framework in line with Basel III)].
However, in terms of the regulatory guidelines, the Bank computes the capital charge / requirement as under:
i. Credit risk: On the basis of Standardized Approach;
ii. Market risk: On the basis of Standardized Approach; and
iii. Operational risk: On the basis of Basic Indicator Approach.
Sonali Bank Limited is very much aware of maintaining Capital to support its current and future activities in view to this
objective. With a view to meet-up provision shortfall and adjustment of deferred tax assets, an Action Plan has been prepared
and subsequently approved by the Board.
The Bank has maintained Capital to Risk-weighted Assets Ratio (CRAR) of 31 December 2021 on the basis of ‘solo’ and
‘Consolidated’ which is 10.04% and 10.71% respectively as against the minimum regulatory requirement of 10%. This has been
calculated considering forbearance allowed by Bangladesh Bank.
Common Equity Tier-I (CET-1) and Minimum Tier-1 Ratio to RWA ratio including Capital Conservation Buffer for ‘solo’ is 7.81%
as well as ‘consolidated’ is 8.47% against the minimum regulatory requirement of 4.50% and 6.00% respectively. Tier-2 ratio
for ‘solo’ is 2.23% as well as ‘consolidated’ is 2.24%. Maximum limit of Tier-2 Capital (Tier-2 capital can be maximum up to 4%
of the total RWA or 88.89% of CET1, whichever is higher).
Capital Conservation Buffer for the year 2021 is 0.04% as ‘solo’ and 0.71% as ‘consolidated’.
(Tk. in Crore)
Solo Consolidated
(a) Capital Requirement for Credit Risk 5330.57 5297.59
(b) Capital Requirement for Market Risk 643.02 643.02
(c) Capital Requirement for Operational Risk 689.12 699.74
(d) Capital to Risk Weighted Assets Ratio (CRAR) 10.04% 10.71%
(e) Common Equity Tier-1 to RWA Ratio 7.81% 8.47%
(f) Tier-1 Capital to RWA Ratio 7.81% 8.47%
(g) Tier-2 Capital to RWA Ratio 2.23% 2.24%
(h) Capital Conservation Buffer 0.04% 0.71%
(i) Available Capital under Pillar 2 Requirement - -
Note: In response to Bank request Bangladesh Bank deferred the Bank from maintaining required provision against
Unclassified and Classified Loans & Advances including Other Assets, Balance with Bangladesh Bank & Balance with Other
Bank and NBFI amounting BDT 4,181.65 Crore and from adjustment of deferred tax assets amounting BDT 2,607.81 Crore
against Common Equity Tier-1 (CET-1) and Tier-2 capital through BB letter vide no- DOS (CAMS) 1157/01(II)-C/2022-2299
dated 28 April 2022 for the year 2021.
154
D) Credit Risk
Credit risk is the potential loss that may arise from a borrower’s failure to repay a loan or meet its obligation in accordance
with agreed term. Banks are very much prone to credit risk due to its core activities i.e. lending to corporate, SME, individual,
another bank/ FI.
As per relevant Bangladesh Bank guidelines, the Bank defines the past due and impaired loans and advances for strengthening
the credit discipline and mitigating the credit risk of the Bank. The impaired loans and advances are defined on the basis of
(i) Objective / Quantitative Criteria and (ii) Qualitative judgment. For this purposes, all loans and advances are grouped into
four (4) categories namely- (a) Continuous Loan (b) Demand Loan (c) Fixed Term Loan and (d) Short-term Agricultural &
Micro Credit.
According to the instructions of Bangladesh Bank, all Loans & Advances are classified into four segments. These are:
1. Special Mention Account (SMA)
2. Substandard (SS)
3. Doubtful (DF)
4. Bad / loss (BL)
Sonali Bank follows strictly all the regulations provided by Bangladesh Bank while calculating the above.
Period for Classification

CL SL Types of Loans Classification Status
(past due)
SMA (>2<3) Month
SS (≥3<9) Month
1 Continuous Loan
DF (≥9<12) Month
BL ≥12 Month
SMA (>2<3) Month
SS (≥3<9) Month
2 Demand Loan
DF (≥9<12) Month
BL ≥12 Month
SMA (>8<9) Month
SS (≥9<15) Month
3 Fixed Term Loan
DF (≥15<18) Month
BL ≥18 Month
SS (>12<36) Month
4 Short Term Agricultural & Micro Credit DF (≥36<60) Month
BL ≥60 Month
(ii) Approaches followed for specific and general allowances:

Rate of Provision Requirement
Unclassified Classified
Types of Loans & Advances Standard SMA SS DF BL
Short Term Agricultural Credit 1% - 5% 5% 100%
Consumer Financing 2% 2% 20% 50% 100%
Housing Finance 1% 1% 20% 50% 100%
Loans to Professionals to setup business 2% 2% 20% 50% 100%
Medium Enterprise Financing 0.25% 0.25% 20% 50% 100%
CMS Financing 0.25% 0.25% 5% 20% 100%
Loans to Brokerage House/ Merchant Bank/ Stock Dealers 2% 2% 20% 50% 100%
All other Credit 1% 1% 20% 50% 100%
Mentionable that, all interest accrued is credited to interest suspense account instead of crediting the same to income
account if the loan is classified as sub-standard and doubtful. However, charging of interest is discontinued when the loan
is classified as bad/loss.
Annual Report 2021

Credit Risk (Continued)

(iii) Discussion of the Bank’s credit risk management policy:
The salient features of SBL credit risk management policy and procedures are as under:
z Credit policy approved by the Board: The Board approves the Credit Risk Management Policy of SBL for ensuring
the best practice in credit risk management and maintaining quality of assets. The credit policy/manual has been put
in place in compliance with Bangladesh Bank’s guidelines on credit risk management and other rules & regulations
circulated by BB from time to time.
z Credit approval is delegated properly: Authorities are properly delegated ensuring check and balance in credit
operation at every stage i.e. screening, assessing risk, identification, management and mitigation of credit risk as well
as monitoring, supervision and recovery of loans with provision for early warning system.
z Independent credit risk Management Division: There is an independent Credit Division (Credit Risk Management
Division) to assess credit risks and suggest the mitigation procedures & techniques while processing the credit
proposals by the Corporate Banking Division for approval.
z Separate credit Administration Division: A separate credit administration division confirms that perfected security
documents are in place before disbursement. SBL is continuing a unique process of rechecking security
documentation by a second legal advisor other than the lawyer who vetted it originally.
z Independent credit Monitoring & recovery Division and Management recovery committee: An independent and
fully dedicated Credit Monitoring & Recovery Division monitors the performance and recovery of loans, identify
early signs of delinquencies in portfolio and take corrective measures including legal actions to mitigate risks,
improve loan quality and to ensure timely recovery of loans.
z Credit operations are subject to independent internal Audit: Internal Control & Compliance Division independently
verifies and ensures, at least once in a year, compliance with approved lending guidelines, Bangladesh Bank guidelines,
operational procedures, adequacy of internal control, documentation and overall Credit Risk Management System.
z Reporting to Board/ executive committee/risk Management committee: Overall quality, performance, recovery
status, risks status, adequacy of provision of loan portfolio are regularly reported to the Board of Directors/ Executive
Committee/ Risk Management Committee of the Board for information and guidance.
Above all, the Risk Management Division is regularly guiding the Credit Risk Management Division (s) on increasing the
collateral coverage, product/sector specific diversification of credit exposures, single borrower exposures limit, large loan
portfolio ceiling as stipulated by Bangladesh Bank, improving the asset quality, conducting credit rating of the borrowers to
minimize the capital charge against credit risk of the Bank. Adequate provision is maintained against classified loans as per
Bangladesh Bank Guidelines. Status of loans is regularly reported to the Board of Directors/ Risk Management Committee
of the Board.
Sonali Bank Limited has its own Credit Risk Management guideline in terms of Core Risks Management guidelines of
Bangladesh Bank. The Bank also follows other instructions/guidelines of Bangladesh Bank in this regard. Sonali Bank Limited
constantly monitors, reviews and analyses its credit portfolio with a view to improving ability of credit portfolio, minimizing
potential losses and ensuring efficient credit process.
To manage the Non-Performing Loans (NPL), Sonali Bank Limited has a comprehensive remedial management policy, which
includes a framework of controls to identify weak credits and monitoring of these accounts constantly.
(b) Total gross credit risk exposures broken down by major types of credit exposure.
(Tk. in Crore)
On Balance Sheet Solo Consolidated
Cash Credit General (Hypo) 517.21 517.21
Cash Credit General (Pledge) 68.75 68.75
Packing Cash Credit 440.12 440.12
Overdrafts Loan 2223.42 2132.49
Demand Loan 0.14 0.14
Small Loan 6.82 6.82
General House Building Loan 716.61 716.61
Staff House Building Loan 6159.58 6159.58
Staff Loan 348.82 348.82
House Building Loan (Govt.Employees) 170.13 170.13
House Building Loan (Public Univ & UGC) 4.44 4.44
Special Loan Programme 0.85 0.85
156
On Balance Sheet Solo Consolidated
Special F.C Term Loan to Payra Port Authority 259.42 259.42

Special F.C Term Loan to Sonali Bank (UK) Limited 411.84 0.00
Special Term Loan against Fund Received from BB for Workers' Salary
16.53 16.53
of Export Oriented Industries Under Covid-19
Loan under SB Industrial Credit Scheme 3850.14 3850.14
Loan under External Credit Program 0.01 0.01
Working Capital to Industries (Hypo) 3470.09 3470.09
Working Capital to Industries (Pledge) 198.89 198.89
Working Capital Under Stimulus Pack for Indus & Serve for COVID-19 1222.28 1222.28
Sonali Credit 38.14 38.14
Loan Under SB Agro Based Industrial Scheme 793.82 793.82
Working Capital to Agro Based Industry (Hypo) 689.62 689.62
Working Capital to Agro Based Industry (Pledge) 337.88 337.88
Agricultural Loan 5086.67 5086.67
Agri. Loan Disbursed at conce.Intt. Rate against COVID-19 249.97 249.97
Agri. Loan Against Special Stimulus Refinance Sch. For COVID-19 154.82 154.82
Micro Credit 1250.61 1250.61
Micro Credit Loan Under B.B Revolving Refi.Sch.for COVID-19 13.38 13.38
LIM (Loan Against Imported Merchandise) 182.99 182.99
LTR (Loan Against Trust Receipt) 9430.34 9430.34
Forced Loan 2500.41 2500.41
Loan for L/C under WES 0.01 0.01
Loan against Inland Bills 79.68 79.68
Current Account Barter (Debit Balance) 93.26 93.26
Bridge Finance 299.10 299.10
Small Business Loan Sceme 104.86 104.86
Lease Finance 2.62 2.62
Consumer Loan 10250.80 10250.80
Term Loan to Freedom Fighter 2558.28 2558.28
Special F.C Term Loan to Bangladesh Biman 4806.70 4806.70
Foreign Education Loan Program 0.08 0.08
SME Finance (Term Loan Service) 3402.82 3402.82
SME Finance (Term Loan to Industries) 48.01 48.01
SME Finance (Working Capital Wind) 4001.63 4001.63
SME Loan Under BB Revolving Re-Finance for COVID-19 394.82 394.82
SME Loan Under B.B Revolving Re-Finance for COVID-19 (Term) 15.04 15.04
Bills Discounted and Purchased 1306.24 2758.20
Special Loan-Advance Rent (Interest Bearing) 11.82 11.82
Term Loan to Banks & NBFIs 0.00 0.00
Forced Loan A/C EDF 253.24 253.24
Rural Housing Finance-Sonali Neer A/C 19.76 19.76
Loan against Food Procurement Bill A/C 554.23 554.23
Long term loan at prevailing rate of Interest (SECI) 4.25 0.00
Bai Muazzal- House Hold Durable Scheme IW 37.70 37.70
Portfolio Loan to Investors 423.07
Total 69059.69 70427.70
Annual Report 2021


(Tk. in Crore)
Off-Balance Sheet Exposure Solo Consolidated
Letter of Guarantee 945.45 945.45
Irrevocable Letters of Credit 86831.88 86831.88
Bills for Collection 842.01 842.01
Other - -
Total 88619.34 88619.34
(c) Geographical distribution of exposures, broken down in significant areas by major types of credit exposure.
(Tk. in Crore)
Inside Bangladesh Solo Consolidated
1) Dhaka-1 Division 31166.99 32535.00
Division wise Loans and Advances
2) Dhaka-2 Division 6862.14 6862.14
2% Dhaka
3) Barishal Division 1815.38 1815.38
9%
Barisal
4) Chittagong Division 3268.23 3268.23 7%
Chittagong
5) Comilla Division 2265.35 2265.35
5% Comilla
6) Faridpur Division 2463.03 2463.03
Faridpur
7) Khulna Division 5430.99 5430.99 8%
Khulna
8) Mymensingh Division 3529.26 3529.26
3% 55%
9) Rajshahi Division 5017.07 5017.07 Mymensingh
10) Rangpur Division 6069.89 6069.89 3%
Rajshahi
11) Sylhet Division 1123.18 1123.18 5%
Outside Bangladesh Rangpur

3%
Kolkata &Siliguri 48.18 48.18 Sylhet
Total 69059.69 70427.70
(d) Industry or counterparty type distribution of exposures, broken down by major types of credit exposure.
(Tk. in Crore) Industry wise Loans and Advances
Industry Name Solo Consolidated
2%
1) Agricultural / Rural Credit 5491.46 5491.46
8%
2) Micro Credit 1263.99 1263.99 13%
Industry wise Loans and
Advances
3) Industrial Credit 8741.41 8741.41 Micro Credit
Agro-based Industrial Industriul Credit

4) 1821.32 1821.32 2%
Credit Agro based Industrial Credit
5) International Trade 14332.23 14332.23 43% International Trade
6) SME Finance 7862.32 7862.32 SME Finance
7) General Advance & Others 29546.96 30914.97 21% General Adnce and Others
Total 69059.69 70427.70 11%
(e) Residual contractual maturity breakdown of the whole portfolio, broken down by major types of credit exposure.
(Tk. in Crore)
Solo Consolidated
On demand 6532.84 6532.84
Not more than 3 months 4330.32 4330.32
More than 3 months but not more than 1 year 19676.38 19798.08
More than 1 year but not more than 5 years 16660.03 16866.23
More than 5 years 20474.19 20062.34
Total 67673.76 67589.81
158

(Tk. in Crore)
Bills purchased and discounted Solo Consolidated
Not more than 1 month 397.77 397.77
More than 1 month but not more than 3 months 44.96 44.96
More than 3 months but not more than 6 months 408.00 1859.96
More than 6 months 535.20 535.20
Total 1385.93 2837.89
(f) Major counterparty wise amount of impaired loans
Loans and advances on the basis of significant concentration including bills

Solo Conso
purchased and discounted
Advances to allied concerns of Directors - -
Advances to Managing Directors andother Senior Executives 8.89 8.89
Advances to customer group(amounting more than 10% of banks total capital) 24331.54 24331.54
Other customers 36829.30 36829.30
Advance to staff 6504.04 6504.04
Total 67673.76 67673.76
Sector wise loans and advances Solo Consolidated

Government 647.49 647.49
Other Public 19494.34 20690.67
Private 48917.86 49089.54
Total 69059.69 70427.70
Government Solo Consolidated
Unclassified 410.71 410.71
Classified 236.78 236.78
Sub Total 647.49 647.49
Other public Solo Consolidated
Classified 79.62 79.62
Sub Total 19494.34 20690.67
Private Solo Consolidated
Classified 11642.14 11642.14
Sub Total 48917.86 49089.54
Classification wise loan-advs. and Provision Solo Consolidated
Standard 53578.00 54946.01
SMA 3523.15 3523.15
Sub Total 57101.15 58469.16
Classified Solo Consolidated
Substandard (SS) 223.71 223.71
Doubtful (DF) 169.29 169.29
Bad and Loss (BL) 11565.54 11565.54
Sub Total 11958.54 11958.54
Annual Report 2021

Sector WIse Loan & Advances

71%
Private
Other Public
Government
28%
1%

g) Movement of NPA and Provisions
Note:In response to Bank request Bangladesh Bank deferred the Bank from maintaining required provision against Unclassified
and Classified Loans & Advances including Other Assets, Balance with Bangladesh Bank & Balance with Other Bank and NBFI
amounting BDT 4,181.65 Crore and from adjustment of deferred tax assets amounting BDT 2,607.81 Crore against Common
Equity Tier-1 (CET-1) and Tier-2 capital through BB letter vide no- DOS (CAMS) 1157/01(II)-C/2022-2299 dated 28 April 2022
for the year 2021.
(Tk. in Crore)
Solo Consolidated
Gross Non Performing Assets (NPAs) 11958.54 11958.54

Non Performing Assets (NPAs) to Outstanding Loans & advances 17.32% 16.98%
Movement of Non Performing Assets (NPAs) (Loans & advances) Solo Consolidated
Opening balance 10767.39 10767.39
Additions 2450.14 2450.14

Reductions 1258.99 1258.99
Closing balance 11958.54 11958.54
Movement of specific provisions for NPAs (Loans & advances) Solo Consolidated
Opening balance 5770.55 5770.55
Add: Provisions made during the period 642.03 642.03
Less: Loan write-off Which fully provided for 59.80 59.80
Add: Recovery loans which was written-off earlier 0.06 0.06
Closing balance 6352.84 6352.84
e) Equities: Disclosures for Banking Book Positions

The major portion of the Bank’s holding of equity exposure is mainly with the purpose of capital gain. The quoted shares are
valued both at cost price and market price basis. However, the un-quoted shares are valued at their cost price.
(a)) Both “Solo Basis” & “Consolidated Basis” the Bank has equity exposure in Banking Book consisting of listed shares of 122
companies and unlisted shares of 13 companies. Market value of allotted securities has been determined on the basis of
the value of securities at the last trading day of the year. The non-listed investments in securities are shown at cost.
Market value of allotted securities has been determined on the basis of the value of securities at the last trading day of
the year. The non-listed investments in securities are shown at cost.
160
(b) Value disclosed in the balance sheet of investments, as well as the fair value of that equity at cost price and market price
has been disclosed as under:
Investment in shares at cost price :
(Tk. in Crore)
Solo Consolidated
Quoted and Un-quoted shares 2107.34 2273.98

Quoted shares 871.71 1038.35
Un-quoted shares 1235.63 1235.63
Investment in shares as market price ;

1981.88 2148.52
Quoted and Un-quoted shares
Quoted shares 746.25 912.89

Un-quoted shares 1235.63 1235.63
f) Interest rate risk in the banking book (IRRBB)

Interest rate risk in the banking book reflects the shocks to the financial position of the Bank including potential loss that the
Bank may face in the event of adverse change in market interest rate. This has an impact on earning of the Bank through net
interest earning as well as on market value of equity or net worth.
(a) The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including assumptions
regarding loan prepayments and behavior of non-maturity deposits and frequency of IRRBB measurement.
Interest rate risk is the potential impact on the Bank’s earnings (Net Interest Income- NII) and net asset values due to changes
in market interest rates. Interest rate risk arises when the Bank’s principal and interest cash flows (including final maturities),
for both On and Off-balance sheet exposures, have mismatched re-pricing dates. The amount at risk is a function of the
magnitude and direction of interest rate changes and the size and maturity structure of the mismatch position. The portfolio
of assets and liabilities in the banking book sensitive to interest rate changes is the element of interest rate risk.
To manage this risk in the banking book, bank considers the impact of interest rate changes on both assets and liabilities,
and its particular features including, among other things, terms and timing. Changes in interest rates affect both the current
earnings (earning perspective) as well as the net worth of the Bank (economic value perspective). SBL periodically computes
the interest rate risk on the banking book that arises due to re-pricing mismatches in interest rate sensitive assets and
liabilities. For computation of the interest rate mismatches the guidelines of Bangladesh Bank are followed. Details relating
to re-pricing mismatches and the interest rate risk thereon are placed to the ALCO regularly.
(b) The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including assumptions
regarding loan prepayments and behavior of non-maturity deposits and frequency of IRRBB measurement.
(Rate Sensitive Assets & Rate Sensitive Liabilities)
as on 31 December 2021
More
8 days- 3-12
Particulars TOTAL Call 2-7 days 1-3 Month 1-5 Years than 5
1 Month Months
years
Fund Placement with
2,538.57 0.00 0.00 100.00 191.00 1,940.00 0.00 307.57
Banks & NBFIs
Money at Call & Short
866.30 866.30 0.00 0.00 0.00 0.00 0.00 0.00
Notice
Investment in Govt.-
65,786.39 0.00 50.52 2,949.55 5,315.77 9,109.52 33,443.66 14,917.37
Securities
Other Investments 3,135.40 0.00 0.00 0.00 0.00 2,198.68 386.68 550.04
Annual Report 2021

More
8 days- 3-12
Particulars TOTAL Call 2-7 days 1-3 Month 1-5 Years than 5
1 Month Months
years
Loans and Advances* 55,827.99 236.07 1,091.84 4,404.35 12,858.05 14,066.97 13,192.71 9,978.00
Bills Purchased &
1,275.60 13.60 60.69 388.27 813.04 0.00 0.00 0.00
discounted
Reverse REPO 250.69 250.69 0.00 0.00 0.00 0.00 0.00 0.00
Total RSA 129,680.94 1,366.66 1,203.05 7,842.17 19,177.86 27,315.17 47,023.05 25,752.98
Borrowings: From
(5,085.52) 0.00 0.00 0.00 0.00 0.00 (5,036.08) (49.44)
Bangladesh Bank
Money at Call & Short
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Notice
Deposits** (110,627.80) (5,437.34) (1,467.19) (5,510.55) (25,813.85) (40,621.21) (25,121.26) (6,656.40)
REPO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total RSL (115,713.32) (5,437.34) (1,467.19) (5,510.55) (25,813.85) (40,621.21) (30,157.34) (6,705.84)
NET MISMATCH 13,967.62 (4070.68) (264.14) 2331.62 (6635.99) (13306.04) 16865.71 19047.14
CUMULATIVE NET
(4070.68) (4334.82) (2003.20) (8639.19) (21945.23) (5079.52) 13,967.62
MISMATCH

* Excluding provision for Non Performing Loans of Tk. 6,352.84 crore and Interest Suspense of Tk. 5,131.82 crore.
** Excluding non interest bearing demand deposits of Tk. 22,714.83 crore.
g) Market risk
Market risk arises due to changes in the market variables such as interest rates, foreign currency exchange rates,
equity prices and commodity prices. The financial instruments that are held with trading intent or to hedge against various
risks, are purchased to make profit from spreads between the bid and ask price are subject to market risk. SBL is exposed to
market risk mostly stemming from Government Treasury Bills and Bonds, Shares of listed Public Limited Companies,
foreign currency etc.
(i) Views of Board of Directors (BOD) on trading / investment activities
The Board approves all policies related to market risk, set limits and reviews compliance on a regular basis. The objective
is to provide cost effective funding to finance assets growth and trade related transactions. The market risk covers the
followings risks of the Bank’s balance sheet:
i) Interest rate risk;
ii) Equity price risk;
iii) Foreign exchange risk; and
iv) Commodity price risk
(ii) Methods used to measure market risk
As per relevant Bangladesh Bank guidelines, Standardized Approach has been used to measure the Market Risk for capital
requirement for trading book of the Bank. The total capital requirement in respect of market risk is the aggregate capital
requirement calculated for each of the risk sub-categories. For each risk category minimum capital requirement is measured
in terms of two separately calculated capital charges for “specific risk” and “general market risk” as under:
Component of Capital charged For Market risk

Market risk General Market risk Specific Market risk
Interest Rate Risk Applied -
Equity Price Risk Applied Applied
Foreign Exchange Risk Applied -
Commodities Price Risk N/A
162
(iii) Market risk management system

The Treasury Division of the Bank manages market risk covering liquidity, interest rate and foreign exchange risks with
oversight from Assets- Liability Management Committee (ALCO) comprising senior executives of the Bank. ALCO is chaired
by the Managing Director. ALCO meets at least once in a month.
The Risk Management Division also reviews the market risk parameters on monthly basis and recommends on portfolio
concentration for containing the RWA.
(iv) Policies and processes for mitigating market risk
There are approved limits for credit deposit ratio, liquid assets to total assets ratio, maturity mismatch, commitments for both
on-balance sheet and off-balance sheet items and borrowing from money market and foreign exchange position. The limits
are monitored and enforced on a regular basis to protect against market risks. The exchange rate committee of the bank
meets on a daily basis to review the prevailing market condition, exchange rate, foreign exchange position, and transactions
to mitigate foreign exchange risks.
(Tk. in Crore)
The capital requirements for: Solo Consolidated

Interest rate risk; 389.91 389.91
Equity position risk; 149.25 149.25
Foreign exchange risk; 103.86 103.86
Commodity risk Nil Nil
Total Requirement 643.02 643.02
h) Operational risk
Operational risk is the risk which may arise directly or indirectly due to failure or breakdown of system, people, and process.
This definition includes legal risk, but excludes strategic and reputation risk. The bank manages these risks through a control
based environment in which processes are documented, authorization is independent, and transactions are reconciled and
monitored.
(i) Views of Board of Directors (BOD) on system to reduce Operational Risk
The policy for operational risks including internal control and compliance risk is approved by the Board in line with the
relevant guidelines of Bangladesh Bank. Audit Committee of the Board directly oversees the activities of Internal Control and
Compliance Division (IC&CD) to protect against all operational risks.
As a part of continued surveillance, the management committee (MANCOM), Risk Management Committee (at the
management level), independent Risk Management Division regularly reviews different aspects of operational risk. The
analytical assessment was reported to the Board/ Risk Management Committee/Audit Committee of the Bank for review
and formulating appropriate policies, tools & techniques for mitigation of operational risk.
(ii) Performance gap of executives and staffs
SBL has a policy to provide competitive package and best working environment to attract and retain the most talented
people available in the industry. SBL’s strong brand image plays an important role in employee motivation. As a result, there
is no significant performance gap.
(iii) Potential external events
Like other peers, SBL operates its business with few external risk factors relating to the socio-economic condition, political
atmosphere, regulatory policy changes, natural disaster etc. based on the overall perspective of the country. Potential
external events and related downside risk, namely, political impasse, damage of Bank’s delivery channel including ATM, fear
of theft/ robbery in banks vaults, compliance/adjustment due to changes of regulatory policy stance, laws & regulations etc.
are managed to keep within tolerable limit.
(iv) Policies and processes for mitigating operational risk
The policy for operational risks including internal control and compliance risk is approved by the Board taking into account
relevant guidelines of Bangladesh Bank. A policy guideline on Risk Based Internal Audit (RBIA) System is in operation. As
per RBIA, branches with high risk status and subjected to more frequent audit by Internal Control and Compliance Division
(IC&CD). IC&CD directly reports to Audit Committee of the Board.
Annual Report 2021

Currently, SBL are using some models or tools for mitigating operational risk such as Self Assessment of Anti-fraud Internal
Control; Quarterly Operational Report (QOR) and Departmental Control Function Check List (DCFCL) in line with the
Bangladesh Bank’s relevant Instructions and recommendations. It is required to submit the statement on Self Assessment of
Antifraud Internal Control to Bangladesh Bank on quarterly rest.
In addition, there is a Vigilance Cell established in 2009 to reinforce the operational risk management of the Bank. Bank’s
Anti- Money laundering activities are headed by CAMLCO and their activities are devoted to protect against all money
laundering and terrorist finance related activities. The newly established Central Customer Service & Complaint Management
Cell was also engaged in mitigating the operation risks of the Bank. Apart from that, there is adequate check and balance at
every stage of operation, authorities are properly segregated and there is at least dual control on every transaction to protect
against operational risk.
(iv) Approach for calculating capital charge for operational risk
The Bank follows the Basic Indicator Approach (BIA) in terms of BRPD Circular No. 18 dated 21 December 2014 [Guidelines
on ‘risk Based capital Adequacy for Banks’ (revised regulatory capital framework in line with Basel III)]. The BIA stipulates the
capital charge for operational risk is a fixed percentage, denoted by α (alpha) of average positive annual gross income of the
Bank over the past three years. It also states that if the annual gross income for any year is negative or zero, that should be
excluded from both the numerator and denominator when calculating the average gross income. The capital charge for
operational risk is enumerated by applying the following formula:
K = [(GI 1 + GI2 + GI3) α]/n
Where:
K = the capital charge under the Basic Indicator Approach
GI = only positive annual gross income over the previous three years (i.e., negative or zero gross income if any shall be
excluded)
α= 15 percent
n = number of the previous three years for which gross income is positive.
Besides, Gross Income (GI) is calculated as “net Interest Income” plus “net non -Interest Income”. The GI is also the net result
of:
i. Gross of any provisions;
ii. Gross of operating expenses, including fees paid to outsourcing service providers;
iii. Excluding realized profits/losses from the sale of securities held to maturity in the banking book;
iv. Excluding extraordinary or irregular items;
v. Excluding income derived from insurance.
(Tk. in Crore)
Solo Consolidated
The capital requirements for operational risk. 689.12 699.74
i) Liquidity Ratio
In line with the provisions of liquidity risk management under Basel III, Bangladesh Bank on the basis of the relevant guideline
of Bank for International Settlements (BIS) has identified the (i) Liquidity Coverage Ratio (LCR); (ii) Net Stable Funding Ratio
(NSFR); and (iii) Leverage under the purview of ‘Liquidity’ ratio vide BRPD Circular No. 18 dated 21 December 2014 and DOS
Circular No. 1 dated 1 January 2015.
(i) Views of Board of Directors (BOD) on system to reduce Liquidity Risk
The Board of Directors reviews the liquidity risk of the Bank on quarterly rest while reviewing the Quarterly Financial
Statements, Stress Testing Report etc. Besides, the Chairman of the Board also reviews the liquidity position while reviewing
the management information system (MIS) report on monthly basis. Upon reviewing the overall liquidity position along
with the outlook of SBL funding need, investment opportunity, market/industry trend, the Board takes its strategic decision
regarding deposits, funding, investments, loans as well as interest rates polices etc.
The Board of SBL always strives to maintain adequate liquidity to meet up Bank’s overall funding need for the huge retail
depositors, borrowers’ requirements as well as maintain regulatory requirements comfortably.
164
(ii) Methods used to measure Liquidity Risk

In order to measure liquidity risk various methods are being used which are as follows:
z GAP analysis is being done regularly that deals with the mismatch of assets and liabilities in different time buckets
like 0-30 days, 31-90 days, 91-180 days, 181-270 days, 271-365 days and beyond
1 year. In monthly ALCO paper, SBL show this GAP analysis based on which different strategic decisions are taken in order to
reduce liquidity risk that may arise due to the mismatch between assets and liabilities.
z Cash flow forecasting is another technique to measure liquidity risk that may arise due to future cash flow mismatch.
In our monthly ALCO paper we show this cash flow forecasting
(iii) Liquidity risk management system
In SBL, at the management level, the liquidity risk is primarily managed by the Treasury Division (Front Office) under oversight
of ALCO which is headed by the Managing Director along with other senior management. Apart from the above, Risk
Management Division also monitors & measures the liquidity risk in line with the Basel III liquidity measurement tools,
namely, LCR, NSFR, Leverage Ratio. RMD addresses the key issues and strategies to maintain the Basel III liquidity ratios to
the respective division (s) on regular interval.
(iv) Policies and processes for mitigating Liquidity Risk
The Asset-Liability (ALCO) policy leads the process & procedures for mitigation of liquidity risk of SBL.
ALCO works under specific Terms of References (functions) approved by the Board.
Treasury Division (Front Office) and ALM desk under regular supervision of Top Management reviews the overall liquidity
position of SBL and takes appropriate strategy, process in line with the industry position for managing liquidity risk of the Bank.
(Amount in Taka)
Liquidity Coverage Ratio 422.54%

Net Stable Funding Ratio (NSRF) 100.73%
Stock of High quality liquid assets 6,78,51,83,69,000
Total net cash outflows over the next 30 calendar days 1,60,58,26,35,400
Available amount of stable funding 1,18,26,44,350
Required amount of stable funding 1,17,40,32,846
j) Leverage Ratio
Leverage is an inherent and essential part of modern banking business. In other words, banks are highly leveraged
organizations which facilitate leverage for others. Leverage, in simple terms, is the extent to which a bank funds its assets
with borrowings rather than capital. More debt relative to capital means a higher level of leverage.
(i) Views of BOD on system to reduce excessive leverage
The Board of Directors of SBL primarily views on the growth of On and Off balance sheet exposures commensurate with
its expected capital growth so that the excessive leverage is reduced. Within the On-balance components, again, the Board
emphasizes on the growth of the prime component i.e. the loans and advances and maintaining good asset quality so as to
maximize the revenue as well as the capacity to generate capital internally (in the form of retained earnings) to trade-off the
excessive leverage supposed to be caused by asset growth.
(ii) Policies and processes for managing excessive On and Off balance sheet leverage
First and foremost, Bank’s policy is to maintain the Leverage Ratio (Tier 1 capital as proportion to total adjusted On and Off
balance sheet asset) well above the regulatory requirement. To this end, the striking components of balance sheet, namely,
the deposits & borrowing, loans & advances, other liquid assets (treasury bills, bonds, fund placements) are analyzed on
monthly basis.
Leverage Ratio (Continued)
Measures are taken to contain the growth of overall size of balance sheet (On and Off balance sheet exposures aggregately)
considering short term outlook of the industry indicators as well as possible growth of equity (Tier 1 capital) of the Bank on
quarterly rest.
Annual Report 2021

With regard to managing the excessive leverage, the regulatory stance through the monetary policy initiatives i.e. the scope
of expected business potential (growth), estimated money supply, inflation, resulting the estimated overall liquidity of the
industry as well as the Bank in particular is also considered.
(iii) Approach for calculating exposure/Leverage
The exposures of balance sheet representing the overall position of the Bank as of the reporting date are calculated and
presented in terms of applicable relevant accounting standards, i.e., IASs (BASs), IFRSs (BFRSs), etc.
The accounting values of assets and liabilities are also presented and measured at gross. Netting of assets and liabilities are
also made where permitted in compliance with the respective accounting standards and the regulatory instruction.
For calculating “leverage”, SBL follows the ‘Leverage Ratio’ approach/method as suggested by Bangladesh Bank.
(Amount in Taka
Solo Consolidated
Leverage Ratio 2.83% 3.05%
On balance sheet exposure 16,43,48,10,17,817.00 16,51,15,09,68,544.00
Off balance sheet exposure 1,96,64,38,10,000.00 1,96,64,38,10,000.00
Regulatory Adjustment made to Tier1 Capital 65,13,00,000.00 66,53,00,000.00
Total exposure 18,39,47,35,27,817.00 18,47,12,94,78,544.00
k) Remuneration
a) Information relating to the bodies that oversee remuneration.
(i) Name of the bodies that oversee remuneration
At the management level, primarily the Human Resources Division oversees the ‘remuneration’ in line with its HR management
strategy/policy under direct supervision and guidance of Management Committee (MANCOM) of the Bank.
(ii) Composition of the main body overseeing remuneration
The MANCOM is headed and chaired by the Managing Director & CEO of the Bank; along with other members of top
executive management (Deputy Managing Directors) and the Heads of different functional divisions of Head Office. Head of
Human Resources Division acts as the Member Secretary of the MANCOM of SBL.
(iii) Mandate of the main body overseeing remuneration
The mandate of the Management Committee (MANCOM) as the main body for overseeing the Bank’s remuneration is to
review the position of remuneration and associated matters and recommend to the Board of Directors for approval of its
restructuring, rearrangement and modification commensurate with the industry best practices as per requirement.
(iv) External consultants whose advice has been sought, the body by which they were commissioned, and in what areas
of the remuneration process.
The Bank has no External Consultant permanently regarding ‘remuneration’ and its process. However, experts’ opinion may
have been sought in case to case basis regarding income tax matter, lawyers’ opinion for settlement of employees’ dues in
case of death, penalty etc. if required, by the management.
(v) A description of the scope of the bank’s remuneration policy (e.g. by regions, business lines), including the extent to
which it is applicable to foreign subsidiaries and branches.
The Bank does not differentiate the ‘Pay Structure’ and ‘employee benefits’ by regions. However, variation in remuneration is
i000n practice based on nature of job/business line/activity primarily bifurcated for the employees who are directly recruited
by the Bank and the headcounts/employees explored through outsourcing service providers as per rule. As of 31 December
2021, the Bank had two foreign subsidiaries and two branches outside Bangladesh.
(vi) A description of the types of employees considered as material risk takers and as senior managers, including the
number of employees in each group.
We consider the members of the senior management, branch managers and the employees engaged in different functional
divisions at Head Office (except the employees involved in internal control, risk management and compliance) as the material
risk takers of SBL.
b) Information relating to the design and structure of remuneration processes.
166
(i) An overview of the key features and objectives of remuneration policy.

Remuneration and other associated matters are guided by the Bank’s Service Rule as well as instruction, guidance from the
Board from time to time in line with the industry practice with the objectives of retention/hiring of experienced, talented
workforce focusing on sustainable growth of the Bank.
(ii) Whether the remuneration committee reviewed the bank’s remuneration policy during the past year, and if so, an
overview of any changes that was made.
Human Resources Division under guidance of MANCOM, the Board and senior management reviews the issues of
remuneration & its associated matters from time to time.
(ii) A discussion of how the bank ensures that risk and compliance employees are remunerated independently of the
businesses they oversee.
The risk and compliance employees are carrying out the activities independently as per specific terms of references, job
allocated to them.
Regarding remuneration of the risk and compliance employees, Human Resources Division does not make any difference
with other mainstream/ regular employees and sets the remuneration as per the prevailing rule of the Bank primarily governed
by the employees’ service rule of the Bank.
c) Description of the ways in which current and future risks are taken into account in the remuneration processes.
(i) An overview of the key risks that the bank takes into account when implementing remuneration measures.
The business risk including credit/default risk, compliance & reputational risk are mostly considered when implementing the
remuneration measures for each employee/group of employee. Financial and liquidity risk are also considered.
(ii) An overview of the nature and type of the key measures used to take account of these risks, including risks difficult
to measure.
Different set of measures are in practice based on the nature & type of business lines/segments etc. These measures are
primarily focused on the business target/goals set for each area of operation, branch vis-à-vis the actual results achieved
as of the reporting date. The most vital tools & indicators used for measuring the risks are the asset quality (NPL ratio), Net
Interest Margin (NIM), provision coverage ratio, credit-deposit ratio, cost-income ratio, growth of net profit, as well the
non-financial indicators, namely, the compliance status with the regulatory norms, instructions has been brought to all
concerned of the Bank from time to time.
(iii) A discussion of the ways in which these measures affect remuneration.
While evaluating the performance of each employee annually, all the financial and non-financial indicators as per pre-
determined set criteria are considered; and accordingly the result of the performance varies from one to another and thus
affect the remuneration as well.
(iv) A discussion of how the nature and type of these measures has changed over the past year and reasons for the
change, as well as the impact of changes on remuneration.
No material change has been made during the year 2021 that could the affect the remuneration.
d) Description of the ways in which the bank seeks to link performance during a performance measurement period
with levels of remuneration.
(i) An overview of main performance metrics for bank, top-level business lines and individuals.
The Board sets the Key Performance Indicators (KPIs) while approving the business target/budget for each year for the Bank
and business lines/segments. The management sets the appropriate tools, techniques and strategic planning (with due
concurrence/approval of the Board) towards achieving those targets. The most common KPIs are the achievement of loan,
deposit and profit target with the threshold of NPL ratio, cost-income ratio, cost of fund, yield on loans, provision coverage
ratio, capital to risk weighted asset ratio (CRAR), ROE, ROA, liquidity position (maintenance of CRR and SLR) etc.
(ii) A discussion of how amounts of individual remuneration are linked to bank-wide and individual performance.
The remuneration of each employee is paid based on her/his individual performance evaluated as per set criteria. And,
accordingly, the aggregate amount of remuneration of the Bank as a whole is linked/ impacted to the same extent.
(iii) A discussion of the measures the bank will in general implement to adjust remuneration in the event that performance
metrics are weak. This should include the bank’s criteria for determining “weak” performance metrics.
The Bank follows remuneration process as per set criteria with no in general adjustment in the event of weak performance
metrics/scorecard.
Annual Report 2021

e) Description of the ways in which the bank seek to adjust remuneration to take account of longer-term performance.
(i) A discussion of the bank’s policy on deferral and vesting of variable remuneration and, if the fraction of variable
remuneration that is deferred differs across employees or groups of employees, a description of the factors that
determine the fraction and their relative importance.
The Bank pays variable remuneration i.e. annual increment based on the yearly performance rating on cash basis with the
monthly pay. While the value of longer term variable part of remuneration i.e. the amount of provident fund, gratuity fund
are made provision on aggregate/individual employee basis; actual payment is made upon retirement, resignation etc. as
the case may be, as per rule.
Remuneration
(ii) A discussion of the bank’s policy and criteria for adjusting deferred remuneration before vesting and (if permitted by
national law) after vesting through claw back arrangements.
Not Applicable.
f) Description of the different forms of variable remuneration that the bank utilizes and the rationale for using these
different forms.
(i) An overview of the forms of variable remuneration offered (i.e. cash, shares and share-linked instruments and other
forms. A description of the elements corresponding to other forms of variable remuneration (if any) should be
provided.
The Bank pays variable remuneration on cash basis (i.e. direct credit to the employee Bank account and/or Payment Order/
Cheque), as the case may be, as per rule/practice.
(ii) A discussion of the use of the different forms of variable remuneration and, if the mix of different forms of variable
remuneration differs across employees or groups of employees), a description the factors that determine the mix
and their relative importance.
The following variable remuneration has been offered by SBL to its employees:
Annual Increment
Bank provides annual increments based on performance to the employees with the view of medium to long term strategy
and adherence to Sonali Bank values.
g) Number of meetings held by the main body overseeing remuneration during the financial year and remuneration
paid to its member
Due to COVID-19 situation, only 08 (Eight) meeting of the Senior Management Team (SMT) which was previously named
as Management Committee (MANCOM) could be held in the year 2021. All the members of SMT are from the core banking
area/operation of the Bank. No remuneration was paid to the members of the Management Committee for attending the
meeting.
h)
i) Number of employees having received a variable remuneration award during the financial year.
The following Number of Employees was received a variable remuneration during the year 2021:
Particulars Numbers
Number of employees having received a variable remuneration award during the year 2021 NIL
ii) Number and total amount of guaranteed bonuses awarded during the financial year.
The following Number of Employees was received a variable remuneration during the year 2020:
number of employees Total amount of guaranteed bonuses

Particulars
(In Unit) (In Million Taka)
Guaranteed bonuses awarded during the year 2021 NIL NIL
Remuneration
iii) Number and total amount of sign-on awards made during the financial year.
There was no severance payment during the year.
168
iv) Number and total amount of severance payments made during the financial year.
There was no severance payment during the year.
i)
i) Total amount of outstanding deferred remuneration, split into cash, shares and share-linked instruments and other
forms.
Not Applicable.
ii) Total amount of deferred remuneration paid out in the financial year.
No deferred remuneration paid in the year 2021.
j) Breakdown of amount of remuneration awards for the financial year to show:
i) Fixed and variable remuneration paid in 2021 are as follows:
Tk. in million
Particulars Amount
Fixed pay (Including Bonus) 17,135.50
Variable pay N/A
Total fixed and variable pay
(ii) Deferred and non-deferred (paid during the year).

Tk. in million
Particulars Amount
Deferred N/A
Non-deferred 17,135.50
iii) Different forms used (cash, shares and share linked instruments, other forms).
z Remuneration is paid on cash basis (i.e. direct credit to the employee Bank account and/or Payment Order/Cheque),
as the case may be, as per rule/practice.
k) Quantitative information about employees’ exposure to implicit (e.g. fluctuations in the value of shares or performance
units) and explicit adjustments (e.g. claw backs or similar reversals or downward revaluations of awards) of deferred
remuneration and retained remuneration:
i) Total amount of outstanding deferred remuneration and retained remuneration exposed to ex post explicit and/or
implicit adjustments.
Not Applicable
ii) Total amount of reductions during the financial year due to ex post explicit adjustments.
Not Applicable
iii) Total amount of reductions during the financial year due to ex post implicit adjustments.
Not Applicable
Annual Report 2021

BANGABANDHU TUNNEL
FIRST UNDERWATER TUNNEL
IN SOUTH ASIA
170
REPORT ON SUSTAINABLE BANKING
REPORT ON
SUSTAINABLE
BANKING
SBL’s sustainability ethos is one that is deeply embedded in z Promote peaceful and inclusive societies for
the overall business strategy and therefore intrinsic to the sustainable development.
way in which the Bank conducts its business. Sustainability
is at the very core of the Bank’s corporate strategy.By z Corporate infrastructure and culture in the
integrating social and environmental responsibility into institution.
core business processes and stakeholder management, Green Strategic Planning: Green Strategic Planning has
the Bank recognizes its ability to achieve the ultimate goal prepared and approved by the Board. It was circulated vide
of creating both social and corporate value. By integrating Head Office circular letter no. 683, RMD circular letter no.
sustainability into a bank’s business strategy and decision 09, date-15.07.2015.
making processes, institutions can support environmentally
or socially responsible projects, innovative technologies Sustainable Finance Unit
and sustainable enterprises. Sonali Bank Limited, as the
leading bank, is also considering the two aspects into its As green environment has a positive effect on environment,
core business through the integration of environmental and Sonali Bank Limited expands its hand to the environment
social considerations into product design, mission policy friendly activities as per regulatory guidelines. A separate
and strategies. sustainable finance unit has been established to implement
diversified measures such as green financing, create
Mission of Sonali Bank Limited consciousness among the people, less consumption of
water, electricity and paper, and encourage financing
Mission of Sonali Bank Limited in achieving a sustainable commercial projects that supports ecological balance to
economy incorporates the strategy and policy of the make SBL an environment responsive biggest commercial
government which includes: bank. To reduce the pressure over electricity, SBL is
z Poverty alleviation through contributing in socio- inaugurating new branches which are capable of getting
economic development of the country. more sunlight and fresh air during office hours.
z Achieve food security by promoting sustainable
Number of Amount (TK.in
agriculture and by enhancing facilities in Sl. Projects
Projects Million)
transactions of the farmers.
1 Rewewable Energy 1687 74.6
z Support quality education and facilitate the school
going students. Energy & Resource
2 1 .10
Efficiency
z Create awareness of its employees and the valued
clients for pollution free Bangladesh. Liquied Waste
3 13 1507.20
Management
z Sustainable and gradual positive financial growth
Environment Friendly
through financing established and promising 4 2 101.20
Brick Product
sectors.
5 Green Establishments 1 0.01
z Uphold customer care and responsible financial
services. 6 Green Agriculture 7 7.60
z Build balanced and green Bangladesh by protecting 7 Green CMSME 11 1.0
forests and by combating desertification. Total 1722 1691.71
Annual Report 2021

Green Strategic Planning: Green Strategic Planning has prepared and approved by the Board. It was circulated vide Head
Office circular letter no. 683, RMD circular letter no. 09, date-15.07.2015.
Sustainable Developments GOAL:

NO QUALITY GENDER
POVERTY EDUCATION EQUALITY
We show our customers that we are on their

side through service excellence, supporting
financial wellbeing, good customer DECENT WORK AND REDUCED PARTNERSHIPS
outcomes and advocacy, and digital ECONOMIC GROWTH INEQUALITIES FOR THE GOALS
OUR
innovation.
CUSTOMERS
QUALITY DECENT WORK AND REDUCED
EDUCATION ECONOMIC GROWTH INEQUALITIES
We are rebuilding trust and our reputation

by engaging proactively and openly with
government and regulators, investing
PARTNERSHIPS
in communities and education, and FOR THE GOALS
OUR
rolemodelling reconciliation.
COMMUNITY
GOOD HEALTH GENDER DECENT WORK AND
AND WELL-BEING EQUALITY ECONOMIC GROWTH
We motivate our people through leadership

and engagement, by promoting health,
wellbeing, diversity and inclusion, and by REDUCED
INEQUALITIES
PARTNERSHIPS
FOR THE GOALS
OUR providing training and career development.

PEOPLE
AFFORDABLE AND RESPONSIBLE CLIMATE
CLEAN ENERGY CONSUMPTION ACTION
AND PRODUCTION
We deliver sustainble financial performance

through strong conduct, culture,
governance, accountability, remuneration PARTNERSHIPS
FOR THE GOALS
OUR and responsible business practices.

SHAREHOLDER
Digital Banking: Till December 2021, achievement of this bank in online banking is as follows:
A) Online Banking:
Number of Total Number of Accounts Number of Online

Branches using Smartphone Branches
1227 App-based Banking 1227
146223
No of Total No. of Branches

Accounts Powered by Solar
22685463 Energy
47
172
REPORT ON SUSTAINABLE BANKING
Incorporation of Environmental Risk into Credit Risk chemicals (fertilizers, pesticides and pharmaceuticals),
Management: rubber and plastic industry, hospital/clinic, chemical trading,
brick manufacturing, ship breaking, jute and jute goods etc.
Sonali Bank Limited has incorporated environmental
and climate change risk as part of the existing credit risk We are developing tools for rating the business that are
methodology prescribed to assess a borrower in line with being well financed and properly monitored. Our policy
Bangladesh Bank ERM guideline and related instructions. discourages financing red category or other environmentally
Bank use environmental risk rating (EnvRR) for facilitating hazard projects.
elements of credit risk arising from environmental issues
Social Impact of Sustainable Banking: With our material
and regulatory compliance as well. Environmental risk is
a facilitating element of credit risk. So Sonali Bank Limited issues in mind, we have identified the SDGs that are most
integrated environmental risk management with credit risk relevant to our business and stakeholders.
management in all aspects. Employees and Talent Management: In order to be the best
On receiving the proposal for financing, Bank conduct a retail and commercial Bank for our customers, we have to
preliminary environmental risk review using Environmental begin with our employees. If they feel proud of belonging
Due-Diligence (EDD) checklists. There is a general EDD to SBL and are more committed, they will be able to earn
checklist, ten sectors EDD checklists and a guidance the lasting loyalty of our customers. SBL endeavors to attract
matrix. Bank determines the environmental risk rating (low, and retain the best talent, and wants its professionals to be
moderate and high) of any project on the basis of checklist. motivated, committed and fairly paid. SBL employees share
the corporate culture focusing on fulfillment of its purpose,
In-house Environmental Management: By the in-house helping people and businesses prosper, and consistently
environmental management system, to prevent the water, doing things in a simple, personal and fair way.
paper, electricity and fuel wastage and using them efficiently
a “Green Office Guide” including “few instructions” was issued Year Total Courses Total Trainees
in the Head Office Circular Letter- 411 (Risk Management 2021 1192 62391
Department Circular letter – 03) of 23 September 2012.
According to the instruction, every office and branches were 2020 406 6319
ordered to estimate the inventory of water, paper, electricity 2019 1068 23067
and fuel and keep that under a certain limit.
2018 798 15121
Green Marketing: Marketing of products and to provide
2017 460 17015
services to the customers, we try to highlight the merits
and demerits of the products. Simultaneously, we are taking
under consideration the project (funded and to be funded) Knowledge: Training is one of the key tools for professional
whether that is safe and risk free for environment at the time development at SBL. With a staff college including 05 (Five)
of granting the loans. training institutes, BIBM, Bangladesh Bank training academy
and other training institutes, Sonali Bank Limited provided
Staff Training, Creating Consumer Awareness, And Green training to 62,391 officers through 1,192 training courses in
Banking Activities: In line with environmental law, we are 2021.
inspiring people to run their business and financial activities
Service Quality: Customer’s delight is at the center of
using the inventories properly and involving them to save SBL’s business model. The Bank has over 16562 thousands
the environment. Sonali Bank Staff College is gradually customers, who recognize the brand as a reliable partner.
organizing training sessions on green banking. Understanding their needs, providing innovative solutions
and building long-term relationships based on trust and
Publishing and Promoting Projects under taken: We are
transparency created foundation of Bank’s business model
reporting about our green banking activities to Bangladesh aiming at generating stable revenue.
Bank on quarterly basis in the prescribed form of the
Bangladesh Bank. Community Investment: SBL also contributes to economic
and social development through initiatives and programs
Developing Sector Specific Environmental Policy: SBL also that support the community. At SBL, we believe that the
follows Bangladesh Bank Environmental Risk Management most rewarding investment is investing for the society. We
(ERM) guidelines, Environmental Coservation Act- 1995 are driven by our purpose to sustain and ensure growth by
(ECA 1995), Environmental Conservation Rules (ECR 1997) making profit for the stakeholders. We believe in creating
and other relevant guidelines. We develop Sector Specific long-lasting value for our clientele, stakeholders, and
employees and above all for the community we operate in.
Environmental Policies for different environmental sensitive
sectors such as agriculture, agro business (poultry and dairy), Tax Contribution: SBL contributes economically and
agro farming, leather (tannery), fishery, textile and apparels, socially to the countries in which it operates by paying all
renewable energy, pulp and paper, sugar and distillery, direct taxes and withholding indirect taxes from third parties,
construction and housing, engineering and basic metals, collaborating fully with the local tax authorities.
Annual Report 2021

REPORT ON
HUMAN RESOURCES
Human resource development is regarded as one of the z Identifies and meets the training requirements of
integral parts in Sonali Bank limited. It is important to utilize existing staffs.
human capital more efficiently to achieve institutional goals z Ensure employees welfare and positive attitude
as it is easy to make proper distribution of other assets of the amongst them .
institution through skilled and capable manpower. We have z Ensure better working environment for the
employees.
a pool of talented and skilled workforce. We also focus on
their career development by nominating them for different z Raise awareness of current workplace legislation.
training, seminar and workshop both home and abroad. The Board of Directors and the management team of Sonali
Bank Limited always emphasize on appointing talents,
In the year of 2021, the Human Resource Development
developing human and technical skills of the employees so
Division (HRDD) made a significant progress towards that the organization can get optimum output by utilizing
assembling resilient organization by focusing on strategic limited workforce. In viewing, a supernumerary posts, an
personnel planning, flair attraction and management and innovative area of operation, performance and merit based
in leadership development by sustainable resourcing of promotion, right man in right place posting policy are among
significant roles. The HRDD of Sonali Bank Limited performs the few initiatives which were approved and implemented
by SBL authority in 2021. A tabular presentation of the
the following key roles:
designation-wise number and gender of the staffs are given
z Facilitate the process of recruiting appropriate below:
candidates for the organization.
2021
Designation
Male Female Total
CEO & Managing Director 1 - 1
Deputy Managing Director 5 - 5
General Manager/equivalent 21 - 21
Deputy General Manager/equivalent 135 19 154
Assistant General Manager/equivalent 370 65 435
Senior Principal Officer/equivalent 1155 191 1346
Principal Officer/equivalent 2257 601 2858
Senior Officer/equivalent 4954 1511 6465
Officer/equivalent 4196 807 5003
Junior Officer/equivalent 23 0 23
Assistant Officer Grade-1/equivalent 394 19 413
Supporting Staff Grade-1 216 7 223
Assistant Officer Grade-2/ SS Gr-2 734 50 784
Supporting Sub Staff Grade-1/2/3 390 - 390
Local Based Officer (Overseas Branches, Sonali Bank UK Limited, SECI,
49 - 49
Sonali Bank Representative Offices)
Local Based Staff (Overseas Branches, Sonali Bank UK Limited, SECI,
30 - 30
Sonali Bank Representative Offices)
Total 14930 3,270 18,200
In percentage 82.03% 17.1% 100.0%
174
REPORT ON HUMAN RESOURCES
Recruitment and Posting SBL, recruitment is inevitably required. The HRDD of the
Bank has been consistently recruiting manpower at different
Recruitment is the apparent stair to fill up the vacancies, grades and tire to meet the vacancies as desired. More over
as every employee consequently retires from the job after to ensure the transparency and accountability, transfer/
completion of the tenure (59/60 years) at a normal course. In posting is also a regular phenomenon is done by Human
order to cope with the growing demand of banking products Resource Management Division of SBL, accordingly.
and services and to operate new branches and divisions of
List of recruitment from 2017 to 2021 in different grades are given below:
Law Senior Officer/

CFO CITO CAO CSO
Year Consultant Officer/ Officer Cash/ Total
(Contractual) (Contractual) (Contractual) (Contractual)
(contractual) Equivalent Equivalent
2021 - 1 - 1 - 153 317 472
2020 1 - 1 - 1 425 878 1,306
2019 - - - - - 1,148 2,721 3,869
2018 - - - 1 - 65 496 562
2017 - 1 1 - 1 89 11 103
HRDD has sent requisition to Bankers Selection Committee while 3(three) GM/DGM level contractual posts were filled
(BSC), Bangladesh Bank for recruitment of 583 Senior Officer/ by specialist and experienced candidates who are helping to
Officer & equivalent posts (Dec-2020 based). In 2021, total drive the banking business forward.
472 fresh new talents were added into the workforce of SBL
Impact of employees to the Bank is given below:
Description of Years 2021 2020 2019 2018 2017 2016
Total number of employees 18,200 18918 19609 17271 18301 20203
Total number of branches 1229 1226 1224 1215 1212 1209
Employee per branch(nos) 15 16 16 14 15 17
Deposit per employee (million Tk.) 74.22 66.54 59.09 63.33 58.16 51.06
Investment per employee (million Tk.) 75.75 64.27 53.62 52.61 48.40 42.24
Operating profit per employee (million Tk.) 1.15 1.14 0.87 1.17 0.65 0.21
Salaries and allowances per employee (million Tk.) 0.81 0.76 0.71 0.80 0.78 0.71
Training certificate handed over by Mr. Md. Ataur Rahman Prodhan, CEO & Managing Director of SBL
Annual Report 2021

Training and Development Last but not the least, to enhance the knowledge and skills
of the employees of the Bank, there is a central library which
The Human Resource Development Division (HRDD) of is located at the 7th floor of Sonali Bank Limited, Head
Sonali Bank Limited took necessary initiatives to impart Office, Motijheel, Dhaka. The library is enriched with 11,251
fundamental knowledge as well as the latest developments books on Banking, Foreign trade, Computer, Management,
and banking rules and regulations to the employees so Accounting, Commercial and industry law, Agriculture and
that they could understand the customer’s demands and industry finance, Economics, Religion and literature and
deliver prompt and efficient services. To make the above other contemporary books and journals. Various foreign
goals successful, SBL has one Staff College in Dhaka and journals like the Economist, the Times, the Newsweek, the
six training institutes across the country. Apart from these Reader’s Digest and other famous local and international
institutions, training programs and workshops for the journals and papers are available at the library. In 2021, total
employees were carried by Bangladesh Institute of Bank 1374 books has been bought on various topics.
Management (BIBM), Bangladesh Bank Training Academy
(BBTA), National Academy for Planning & Development Employee’s perks and privileges
(NAPD) and other organizations throughout the year 2021.
SBL is very sincere to the welfare of its employees. In 2020,
The number of courses and trainees undergone various
the Board of Directors of the Bank approved 4 (four) incentive
training programs during 2017 to 2021 are presented in the
bonuses- each equivalent to “Basic Salary”, recreation leave
following table:
along with one month basic salary for every three years
after of service to all of its permanent employees. Provident
Year Number of courses Number of trainees
fund facility, gratuity fund, death cum retirement benefits,
2021 335 48,910 leave encashment, two festival bonuses, bangla new year
allowance, employee house building loan scheme, motor
2020 266 7,152 cycle loan scheme, car loan scheme for the executives,
computer loan scheme, recognition and monetary award
2019 796 12,775
for brilliant results by the children of the employees, children
2018 709 11,133 education allowance, honorarium for passing Banking
Diploma examination are provided to the employees.
2017 730 11,822
Occupational health, safety and
In 2021, 4 officials participated various foreign training/ environment
workshops/seminars organized by renowned global The Board and the management of SBL sincerely believe in
organizations. Some of those are:
safety, health security at work place that is a prerequisite for
1. Dun & Bradstreet South Asia Middle East Limited, sound state of mind of employees for delivering satisfactory
Colombo, Sri Lanka. services to the customers. That is why SBL takes necessary
actions for ensuring healthy and safe workplace for the
2. State Bank Institute of Leadership (SBIL), West Bengal,
employees. All the branches, regional offices and divisions
Kolkata, India
of head office are well decorated having sufficient open
spaces. A team with logistics supports and services headed
by Chief Security Officer (CSO) is especially assigned to visit
regularly monitoring cleanliness, safety measures and others
applicable at every branch. In order to ensure the sound
health of the employees, a team of experienced physician
headed by the Chief Medical Officer is working both home
and oversees branches for free medical services as and
when required.
Succession Planning
Sonali Bank Staff College SBL possesses a sound HR policy covering succession
planning to carefully avoid the problems of leadership
vacuum under any circumstances. We have also developed
a more robust and efficient approach to our succession
planning, better aligned to global best practices. This enables
us to make the most of our existing talent and strengthen
our business continuity. The HRD Division has formulated
and implemented an efficient succession planning for
professional employee management. Various trainings and
workshops on managerial and leadership skills are imparted
to the employees so that it can be ensured about the
availability of experienced and competent employees who
are prepared to assume responsible roles.
Bangladesh Institute of Bank Management
176
REPORT ON HUMAN RESOURCES
Human Resource Accounting the decisions involving the recruitment, development,

compensation and replacement of human resources on
Human Resource Accounting is the process of identifying a value for money can be taken accurately. SBL regularly
and reporting investment made in the human resources of follow-up and looks into some important areas of Human
an organization. It is done to furnish the value information for Resource Accounting for mathematical and co-relational
making proper and effective management decisions about understanding on the main business factors. The total value
acquiring, allocating, developing and maintaining human of Human Capital has been ascertained by present value of
resources in order to achieve cost effective organizational future earning model (Lev and Schwartz) at Tk. 220,166 in
objectives. Soon after the recruitment and the process of the year 2021 and Tk. 215,667 in 2020.
making the officers competent by imparting adequate
training, Human Capital Accounting (HCA) is done so that
The following table projects the age-group wise value in 2021 and 2020.
Grade 2021 2020

Per Capita Value
Age Group No. of employees Total Value No. of employees Total Value
18 yrs-29 yrs 5.52 3412 18834 3262 12069
30 yrs-39 yrs 11.23 9055 101688 8742 88731
40 yrs-49 yrs 15.46 3166 48946 2591 35108
50 yrs-59 yrs 19.75 2567 50698 4323 79759
Total 18200 220166 18918 215667
Reward and Motivation distribute the manpower of SBL, the HRD Division has
taken initiative to update the organogram which will
Sonali Bank Limited has a strong culture of rewarding and ensure fair distribution of manpower throughout its
motivating the employees such as Best Manager Award, branches and offices.
Letter of Appreciation for outstanding performance, financial
reward for classified loan recovery, fulfilling deposit and II. To bring performance measurement and perform
profit target etc. The meritorious children of the employees ensures that it has a right number and kinds of people
are awarded Chairman’s Award, MD and CEO’s Award and at the right places at the right time capable of effectively
and efficiently completing assigned task to achieve its
General Award for bright performance in SSC and HSC
organizational objectives. SBL has also a HR Plan which
examinations. Various financial honoriums are given to the
aims at ensuring optimal employment and justified
employees for innovative products generation and passing
distribution of manpower throughout its branches and
Banking Diploma examination.
offices as per organogram. To simplify the prevailing HR
Our Priorities for 2022 practices adopting the modern technology and best
practices SBL is set to review the existing policies.
I. One of the plans in 2022 is to train up the employees
on our refreshed Position Statements. The HRD Division III. To bring performance measurement and performance
is planning some effective processes by which our based incentive related activities of HRM;
employees can easily cope up with the Core Banking IV. Training need analysis and process development;
Solutions (CBS) and can bring pace in banking activities.
There is a massive plan to introduce technology and V. Preparation of training and development roadmap;
digital education modules for developing prompt and VI. Improvement of service benefits;
dynamic service. Training modules related to BASEL-III,
employee tax, green banking is to get priority. SBL has VII. Improvement of HR policies and procedures;
also a HR Plan which aims at expanding its business
VIII. Adoption of HR Accounting System.
area and creating more employment opportunities. To
Annual Report 2021

REPORT ON
FINANCIAL INCLUSION
Financial inclusion means providing facilities to access of z Include different classes of people through
the un-banked people and firms to the range of financial introducing new products.
services timely and also adequate credit for low income
z Financing in agriculture, SMEs and environment
people at a reasonable cost. For overall economic growth
friendly activities.
and sustainable economic development, financial inclusion
plays a vital role in achieving goals of the government in any z “School Banking” is introduced to make the habit of
developing country. As a developing country, most of our savings by the students of school from their early
poor, illiterate people and also people of remote area lack age.
access to financial activities like savings, credit, insurance
z Financing higher education and overseas
etc. Unbelievable that these people are still remained un-
banked at the age of 21st century which is called the age employment to take the country ahead in the near
of information technology. So, we have a large scope future.
to embrace the wide range of un-banked people to the z Good governance by clear regulation and industry
mainstream of regular banking operations. According to the performance standards.
recent development theories, the greater financial inclusion
we have, the better positive impact on the lives of the poor z Financial and institutional sustainability to ensure
and disadvantaged segment can be achieved. stability and certainty of return of investment.
An inclusive financial system thus indicates that appropriate Status of financial inclusion in SBL
financial inclusion is multi dimensional in nature offering
quality financial services in a convenient way, extending Sonali Bank Limited is the leading bank by progressing
access to all segments of the population with equal successfully towards the goal of its financial inclusion
opportunities and reducing inequalities in an economy. Being program. Some of these are as follows:
the largest commercial Bank, Sonali Bank Limited is also
offering diversified products to attract the people of different Farmers account
cultures and testes in line with Bangladesh Bank guidelines.
As agriculture is the lifeline of our economy, government
SBL’s goal for financial inclusion gives highest priority for the facilities of the farmers. Sonali
To ensure steady and fair economic growth by a wide range Bank Limited has absolute support towards the development
of financial inclusion, following prior policies has been program of the government. In SBL, farmers can open
developed. a saving account with an initial deposit of Tk. 10.00 at
higher deposit rate and free of maintenance charge or
z Access of all households to a full range of financial
services at a reasonable cost and time. service charge. Moreover, a deposit product named “Sonali
Krishak Shanchay Scheme (SKSS)” of Tk. 50, 100 & 200 at
z Extension of banking services and products to un-
a compound interest rate of 9% has been introduced for
banked and underprivileged people.
farmers. As a result, total number of farmers account stood
z Being responsive and support quickly to the at 1,617,270 in 2021.
government’s growth strategy and Bangladesh
Bank’s policy.
Sl.no. Name of program Number of Accounts Till 2021 Number of Accounts Till 2020
1. Farmer’s Account 1,617,270 1,590,734
2. Social Safety Net 3,046,690 2,885,656
3. Freedom Fighters A/C 271,200 243,011
4. School Banking A/C 144,830 112,106
5. Small Life Insurance Program 18,839 18,748
6. RMG Sector A/C 352 347
7. Others A/C 295,011 291,153
Total 5,394,192 5,141,755
178
REPORT ON FINANCIAL INCLUSION
Social Safety Net Program z Provides credit facilities to SME entrepreneurs,

agricultural and other rural and urban farm and non-
Sonali Bank Limited is the pioneer of implementing the Social farm productive activities throughout the country.
Safety Net Program which targets at taking the un-banked
z For the physically and mentally disabled people,
people of the society under the gigantic branch coverage of
SBL has taken comprehensive programs.
the Bank through its diversified products to meet the needs
of the people. Number of accounts under this program was Recent steps taken by SBL
3,046,690 in 2021 which was 2,885,656 in 2020.
SME Women Entrepreneur’s Development Unit has been set
Freedom Fighters Account up at Head Office and all field level Controlling Offices of
this Bank.
SBL takes pride of being a helpful hand of the Freedom
Fighters of the country as they are the hero of our Liberation z Necessary guidelines have been issued to Branches/
War, 1971. The Freedom Fighters get special allowances field level controlling offices for disbursement of
from the government through this Bank. Moreover, the
Cluster based SME Loan.
Bank offers loan facilities with a lower interest rate. As per
December 2021, the total number of Freedom Fighters z Introduced Online Banking, Any Branch Banking
account was 271,200. and SMS Banking to attract every class of people.
School Banking z Successfully launched projects named “BICYCLE

LOAN”, “Adarsha Gram Karmashuchi”,
To make the habit of savings by the students of school and
college from their early age, Bangladesh Bank introduced z “UNMESH”, “JAGO NARI” for the students, poor
“School Banking” guidelines. As per BB guidelines, Sonali farmers and female entrepreneurs respectively with
Bank Limited has come forward with all out effort to make easy terms and conditions.
this program successful. The account holders of this
program get better interest rate. Till the end of 2021, total z Relax the policies for the un-banked poor and
School Banking account stood at 144,830. disadvantaged people.
Agricultural credit policies have been relaxed for
Others z
stimulating financial inclusion.

As a part of financial inclusion, SBL has facilities to open
account for other sections of the people such as (a) Hindu z Farmers account opened with Tk. 10.00 are
religious welfare trusts, destitute people affected by cyclone encouraged with higher interest rate and free of
Aila, employment program for the very poor, rehabilitation maintenance charge or service charge.
program under Ministry of Religion and Cleaners of Dhaka
z Government subsidies are channeled to the
North and South City Corporation, (b) Small Life Insurance
Program and (c) RMG Sector. landless and poor people through these accounts.
z Introduced different deposit schemes and credit
Fair facilities to include different classes of people.
To create awareness among people about the products and
z Financing higher education and overseas
services of financial sector, to introduce banking services
at national level and to make the people banked this bank employment.
participated in various fair in 2021. z Going to launch project for daily and construction
labours.
Loans and Advances:
The poor and simple people of our country are engaged
SBL’s agricultural credit policies for the farmers have been mostly with different microfinance institutions or co-
relaxed for a sustainable financial inclusion to impose a operatives. As they are not entertained with banking facilities
greater impact over our economy. The Bank successfully around them, they are not satisfied in their transactions with
launched projects like “UNMESH”,”JAGO NARI” for the those institutions. SBL is trying to cover the major portion
poor farmers and female entrepreneurs. Besides these, a of these people under the umbrella of formal banking
new product named “BICYCLE LOAN” upto Tk. 15,000/- at practices by taking different policies of inclusion. A wide
a simple interest rate of 9% for the students of Class-6 to ranging plan has been undertaken to connect the overseas
Class-10 has been launched successfully. employees with their relatives living in the country so that
people at villages can come in contact with the mainstream
Role of SBL in enhancing financial inclusion of banking and thus the reserve of foreign currency increase
z Being the helping hand of the Governments satisfactorily. Therefore, to make the growth of our economy
inclusive growth strategy, SBL has taken financial more inclusive and sustainable, SBL’s policies are targeting at
Inclusion as utmost priority for accelerating creating employment opportunities and thus accelerating
economic growth. the income of the people to keep the machine on of our
z SBL has extended lending to the under-served/un- economy.
served economic sectors.
Annual Report 2021

CUSTOMER
CARE
Customer service has great significance in banking industry. low interest rate. They deserve it because they have made
A customer can be defined as a potential user of bank our country food-sufficient and saved foreign currency
services. So, a customer can be defined as: through reducing the demand for food import. SBL has
271,200 accounts of the freedom fighters as a result of given
1. A person or entity that maintains an account or has a
emphasis on the freedom fighters. The freedom fighters are
business relationship with a bank or without having an
also getting special loan facility upto Tk. 300,000. The Bank
account maintains a relationship with a bank.
also delivers the services of govt. allowances to different
2. One on whose behalf the account is maintained. levels of the destitute people.
3. A person or entity connected with a financial transaction and Service standard
4. One who have different motives for coming into the Customer relationship management is the most efficient
bank i.e. to make a query or others. approach in maintaining and creating relationships with
In the course of daily business transactions, a banker comes customers. Development of this type of bonding drives the
in contact with quite a number of people who come to business to new levels of success. Service standard maintains
deposit money or to cash cheques or to avail loan facility a level of consistency that allows both side standings and their
or for any inquiry. Some of these people maintain subsisting expectations. It is worth mentioning that service standards
relationship with the bank, while in some cases it is a one off alleviate uncertainty from the process and provide clients
affairs perhaps never to be repeated again. with a set of commitments that can be referred to while
evaluating an organization’s performance. Organizations,
Branch network and products exceeding these standards, obtain client satisfaction, public
perception and overall service performance. The behavioral
Sonali Bank Limited (SBL) has been engaged in wide range of relationship is important from the view point of responsibility
services through its 1227 branches inside the country to cater and humanity, particularly for the customers who do not
the needs to all classes of people. Only SBL has branches maintain account with the bank but buy miscellaneous
in every upazilla of the country to take banking services to services like Demand Drafts, Mail Transfer of money or
the doorsteps of common people. The Bank has introduced payment of electric bill, gas bill, opening and renewal
the highest number of products to meet the ever increasing of various licenses, passport fees etc. SBL delivers these
demands of the people. services with good manners, courtesy, kindness, sympathy
and co-operation. By helping to solve a customer’s problem,
Implementation of Inclusive policy undoubtedly makes a good impression on the customer that
SBL has the highest number of accounts under the financial adds competitive advantage to the Bank. As a result of better
inclusion policy taken by Bangladesh Bank and focuses service standard, SBL’s non-funded income is increasing day
on the majority of our population including the farmers, by day.
the freedom fighters and under-privileged people of the
society. The Bank gives special attention to the farmers Digitalized banking
by giving opportunity to open a bank account at the cost Keeping pace with the present digitalized world, SBL has
of Tk. 10.00 without any service charge by which they can introduced Core banking system, Mobile banking, SMS
avail government assistance in a transparent way. Now, banking, Online Any Branch Banking (ABB), RMS plus etc. to
the number of this account stands 1,617,270. They also make the operations more efficient which is subsequently
get agricultural loans from all of our rural branches at a
180
RELPORT ON CUSTOMER CARE
improving our service to the valued customers and clients. z Bank’s Head Office based Complaint cell has been
We are integrating our IT systems and simplifying automation redesigned. Written complaint can be dropped at
to increase efficiency, ensure a healthy environment and branch complaint box, by calling at the number of
free up our frontline staffs. This enables them to spend more
the Bank’s complaint centre which is 9586431, fax
time with our clients and customers. Digitization has also
allowed us to simplify our application and documentation no-7115519 and through Bank’s email address which
processes, making it easier and faster for new customers is: dgmvcd@sonalibank.com.bd. All complaints
to open an account with us. Core Banking Solution (CBS) are lodged and actions are duly taken. Bank has
software has been implemented in 1,227 branches to mandated and has been able to redress a majority
integrate the activities, ease the banking functions, prevent of the customer grievances within the shortest
fraud and forgery and above all better customer service.
possible time. All ATM related complaints of Bank
Products proposition strategies customers are redressed within the Bangladesh
Bank prescribed time.
Sonali Bank Limited invests in product propositions and
digital capabilities across our brands and divisions, to deliver Customer Friendly Initiatives
the products to our customers need through the channels
they prefer, while improving efficiency and customer Due to COVID 19 Corona Virus breakout during 2020-21, in
service. The Bank invested in products and services for our the backdrop of slow investment/consumption, constrained
customers, while further reducing costs and improving food production, high inflation, distress in several industry
efficiency through our simplification program. and infrastructure sectors such as textile, chemicals, iron
and steel, food processing, construction, telecom etc.
Front desk customer service affected the growth of our economy. Major initiatives
were taken by the Bank towards catalyzing investment and
SBL is always concerned the needs, demands and priorities growth, to facilitate the flow of credit to critical sectors of
of customers. To make their banking easy with us, there is a the economy including agriculture, infrastructure, micro,
front desk customer service system to provide information small and medium enterprises, housing and exports to
and supports. reduce customer distress/pain points and to raise the level
of customer satisfaction. These initiatives include:
Customer Service
Our vision unambiguously spells out the centricity of the Process innovations
customer in the Bank’s business strategies and operations.
z Relationship management platform was
A multi-tiered structure of committees is constantly
reviewing existing services and suggesting improvements. strengthened across business verticals-Accounts
Important issues raised by these Committees and action Management teams for corporate, premier banking
taken thereon, as well as analysis of the consolidated data services for high net worth customers, relationship
for customer grievances for all circles are placed before the managers for SMEs.
Customer Service Committee of the Board every quarter,
to identify common systemic and policy issues that require z Touch-points with customers were expanded
rectification. The Bank has a well defined and documented through opening of branches and increasing
Grievance Redressal Policy which provides for: Customer Service Points, BC outlets in remote
areas.
z A complaint box has been set in every branch of our
bank so that any aggrieved customer can complain z Cluster models were introduced at all currency
in a written document which would be addressed chest branches for efficient cash management at
by the managers and high-ups. semi-urban/rural areas.
z According to Bangladesh Bank guidelines, there is Technology upgrades

hotline for customer’s complaint address which is
SBL has taken initiatives to bring all its branches under core-
displayed on the visible place in every branch. The banking system. With this end in view, Sonali-Polaris, a Indian
display contains the following information: sophisticated and upgraded core banking software (CBS) has
been adopted and all branches are now in the process of
conversion to it in the course of time. SBL has brought 1222
Bangladesh Bank (100%) branches under CBS program.
Hotline for customer’s complaint: z ATM : At present, the Bank has 157 ATM booths.
Head Office:
Sonali Bank’s ATM cardholders enjoy the access
Dial 16236
to the ATMs and POS all over Bangladesh. SBL has
Fax : 0088-02-9530273
E-mail : bb.cipc@bb.org.bd recently launched VISA Credit Card, Debit Card and
prepaid card for tax payment. The Bank introduced
co-branded ATM services with Bangladesh Post
Office.
Annual Report 2021

z Online and SMS Banking: At present, 1227 for prospective and existing borrowers. With this improved
branches of SBL are included in the Online Any and efficient system, risk management will be more effective.
Branch Banking (ABB) network. SMS Banking SBL furnishes credit information to CIB database 24/7 round
the year; and they can access credit reports from CIB online.
service is running in 1227 branches. The Bank is
seriously working on connecting all branches in the Help desk and Women entrepreneur desk
Real-time Online Banking network gradually.
To extend support to the customers and especially to
z BACH: BACH minimizes fraud and forgery, reduces the entrepreneurs, there is a help desk and a women
cheque carrying and clearing cost as well as entrepreneur desk in every branch. The functions of these
payment processing time dramatically. It also desks are to assist the customers by providing necessary
ensures faster and secured payment and settles information.
payment of all cheques of whole country under a Foreign Remittance
single head of the Bangladesh Bank. With a view to
making clearing activities, Bangladesh Automated SBL’s own in-house software “Remittance Management
System Plus” (RMS+), having the feature of paying foreign
Clearing House (BACH) has been setup at Local
remittance instantly over the counter, is being implemented
office of the Bank. Clearing activities in automated at all branches. This web based software provides digital
system are executed through BACPS (Bangladesh services to the expatriates through its unique advantage
Automated Cheque Processing System) from this of sending confirmation message to the mobile phone of
centre. Fund transfer activities from all branches the remitter/beneficiary. The Bank has also arranged to pay
of the Bank with other banks are being operated foreign remittance through Western Union, Transfast, IME
Malaysia, Express Money.
through Bangladesh Electronic Fund Transfer
Network (BEFTN). Islamic Banking
z Sonali e-sheba and Sonali e-wallet: During the SBL is giving priority on Islamic Banking because of its
COVID 19 pandemic in 2020, for the welfare of recent popularity in the banking sector. “Islamic Banking
the country and the the mass people, Sonali Bank Department” under the direct supervision of Marketing and
Limited introduced ’’Sonali eSheba’’ through which Development Division of the Bank, is running its business
the clients can open accounts even from their succesfully in 58(Fifty Eight) branches of the Bank.
home. As a continuous process, the bank also Citizen Charter
introduced ’’Sonali e-wallet’’ which helps the clients
to make transactions to any accounts, pay the bills To ensure proper customer service, citizen charter has been
hanged on the wall at the visible place of customers at Head
and taxes etc.
Office and branches as per the directive of the regulator.
By reading it customers can be well aware of the services
Online CIB services
and products that the Bank is supposed to render to its
To create a disciplined environment for borrowing, the stakeholders.
automated CIB service provides credit related information
182
RELPORT ON CUSTOMER CARE
CITIZEN CHARTER
Current Deposit, Fixed Deposit, Short-term Deposit, Savings Deposit, Special Deposit and Pension
Scheme (SDPS), Sonali Deposit Scheme (SDS), Medicare Deposit Scheme (MDS), Education Deposit
Scheme (EDS), Rural Deposit Scheme (RDS), Marriage Savings Scheme (MSS), Monthly Earning
Scheme (MES), Double Benefit Scheme (DBS), Non-resident Deposit Scheme (NRDS), Sonali Bank
Daily Profit Scheme (SBDPS), School Banking Scheme (SBS), Retirement Savings Scheme (RSS),
Deposit Account
Sonali Bank Retirement Savings Scheme (SBRSS), Sonali Bank Millionaire Scheme(SBMS), Triple
Benifit Scheme (TBS), Mudaraba Monthly Profit Scheme (MMPS), Al-Wadeeah Current A/c (AWCA),
Mudaraba Savings A/c (MSA), Mudaraba Special Notice Deposit A/c (MSND), Mudaraba Term
Deposit A/c (MTD), Mudaraba Hajj Saving A/c (MHSA) and Mudaraba Sonali Monthly Deposit
Scheme(SMDS)etc.
Interest on Deposit Except Current Deposit, attractive interest rates are being offered on all types of deposits.
A web-based software named Remittance Mangement System Plus (RMSplus), developed in
Inland and Foreign
house, has been deployed at 1227 branches for receiving foreign remittances. Inland and Foreign
Remittance
Remittance payments are made through this system.
Electric Bills of PDB, Palli Biddyut Samity, DPDC, DESCO, Western Zone Power Distribution
Receipt of Utility Bill
Company, Gas Bill, WASA Bill, Telephone Bill of BTTB are received.
Business Loan, Agricultural Loan, Rural Credit, Industrial Project Loan, SME Loan, Agro-based
Industrial Project Loan, Small and Cottage Industries Loan, Working Capital Loan, House Building
Loans and Advances
Loan, Consumers Credit, Special Small Loan, Probashi Karmasangsthan Rin, Education Loan, Term
Loan to Freedom Fighters, Foreign Education Loan and Export-Import Trade Loans etc. are offered.
To contribute to the socio-economic development of the country relatively lower interest is

Interest Rates on
charged on General Advances, Agricultural Loan, Rural Credit, Micro Credit, Agro-based Industrial
Loans and Advances
Loan, Other Industrial Project Loans and Export-Import Trade Loans.
Without taking any service-charge, SBL makes payments of allowances to old aged citizens, widows
and divorced distressed women allowances, stipends for primary education, stipends for disabled
Social Responsibilities students, allowances for distressed disables, honourarium for freedom fighters, rehabilitation
program for acid-burnt women and physically disables and maternity allowances for poor mothers.
In some cases, services are provided at a very nominal charge.
Fees, taxes, VATs etc. which are payable to Govt. accounts are done through treasury challan in 732
Government
nominated branches of the Bank. Besides, payments are made against Govt. cheques and bills in
Transactions
480 branches among the said branches of the Bank.
At present, a total of 1227 computerized branches are rendering digitalized banking services to the
clients of the Bank. A joint venture IT company named ‘Sonali Polaris FT Ltd.’ has been established
Plans for to implement Online Real Time Core Banking (ORTB) in the Bank. Any Branch Banking (ABB) at
Computerization 1227 branches and SMS banking started at 1227 branches. SWIFT facilities are available in Head
Office and 35 important branches. To ensure safety at bank premises CCTV system has been
installed at 506
ATM facility, locker facility, one-stop service, issuance of Wage-Earners' Development Bond, Prize
Bond purchase and sale, sale and purchase of Govt. treasury bond as primary dealer, issuance
and encashment of savings certificates issue and enchashment, US Dollar Premium Bond and US
Dollar Investment Bond sale, Land Development Tax collection, Excise Duty collection, VAT and
collection of tax at source, City Corporation Tax collection, receipt of money for Hajj, receipt of
Other Services money for Jakat Fund, Travel Tax collection, receipt of Passport and Visa fees, opening account
and fund collection during natural calamity, payment of bills under Govt. food procurement
programme, payment of money from welfare fund of the Govt. Employees, payment of salary
and allowances to teachers of the registered non-goverment primary schools, non-government
schools, colleges and madrasas and exchange of torn, cracked and dirty notes are handled by
Sonali Bank Limited.
Annual Report 2021

REPORT ON
CORPORATE
SOCIAL
RESPONSIBILITY
(CSR)
Sonali Bank Limited as a leading state owned commercial bank in the country has been playing an important role in
implementing social and philanthropic programs to help disadvantaged people of the country. Our corporate responsibility
programs and initiatives support the bank’s strategy to deliver balanced and sustainable outcomes for our customers,
community and people. Sonali Bank believes that it has a solemn duty to make sustainable social change in the lives
of the less fortunate and underprivileged members of the society. Our bank always places the interest of the common
man, especially the most marginalised, at its core. Its CSR activities are widespread and deep-rooted and have made true
difference in the lives of thousands from the underserved and downtrodden communities. CSR is a continuing commitment
of our Bank for developing the quality of life of the community and society as a whole.
Its fields of activities here cover from education to health to infrastructure development both in urban and remote rural
areas. The Bank extends stipends to students of SSC and HSC level as well as higher studies such as medical or engineering
discipline selected on the basis of merit to help to pursue their academic career so as to enable them to grow up to serve
the nation with their knowledge and expertise in the future. Sonali Bank also contributes to the construction of educational
institutes and Clinics and extends help in procuring apparatus for treatment in different hospitals and similar organizations.
During winter seasons, the bank distributes blankets to cold hit people under its CSR programme. Besides, it has extended
assistance to numerous organizations to create awareness on issues pertinent to social advancement. The amount of CSR
disbursement in last three years is given bellow:
(Figure in million)
Year wise contribution

Category Total
2021 2020 2019
Education 9.15 9.30 9.80 28.25
Health 2.72 5.90 13.20 21.82
Financial Inclusion - - - -
Rural Infrastructure Development - - 0.50 0.50
Disaster Management - 1.20 10.00 11.20
Sports - - 0.10 0.10
Literary, Art and Cultural activities - - 0.20 0.20
Social Welfare 4.08 2.30 10.50 16.88
Research and Development - 0.30 - 0.30
Environment - - - -
Capacity Building - - - -
Development of Underprevileged people,
3.0 - 3.30 6.3
Environment e.t.c
Total 18.95 19.00 47.60 85.55
184
REPORT ON CORPORATE SOCIAL RESPONSIBILITY(CSR)
GOVERNMENT TRANSACTIONS
AND WORKS RELATED TO SOCIAL
RESPONSIBILITY
Sonali Bank Limited the largest state owned commercial bank of Bangladesh since the war of liberation has been launching
various innovative financial activities relate to self-reliance that leads to national development. Now, Sonali Bank works
side by side with present Government for successful implementation of MDG and SDG along with ongoing Digitalization
Program.
Sonali Bank is the only scheduled bank in Bangladesh that accomplishes treasury functions with its 732 Government
nominated branches alongside Bangladesh Bank having been so authorized vide Treasury Rules. Besides, all sorts of
Government payments and receipts in the style of cheques and bills are taken place by this bank and reports its thereof to
the Bangladesh Bank and CGA. At present, Government nominated branches for treasury functions is 732. The total turnover
takes place in 2021 are amounting to the tune of Tk. 3,778,720.00 million.
Moreover, Sonali Bank in consideration of Corporate Social Responsibility works in the midst of socially & economically
disabled and destitute masses of the society viz old aged, widow, divorcee, insolvent allowances in the style of paying
subsidies i.e. amounting Tk. 38,410.00 million to 3.53 million beneficiaries in the year 2021 in accordance with the direction
of Government. The apex portions of the 41 subsidies disburse without financial consideration. The bank also embellish with
making pension payment to the civil and military officials. It is to be noted that Sonali Bank is committed to ensure fast and
smooth services to its clients and stake-holders by rendering quality services to every nook and corner of the country. Bank
also performs treasury functions through GTS software in all of its 732 Treasury Branches. It is also to be noted that a new
GTS software are being developed with a view to deposit the chalan in online whereby a depositor from any place or from
any bank at his own will and be benefitted thereof. Sonali Bank now provides a new gateway to the Police department for
updating Police Verification in real time. To ensure transparency and accountability, Sonali Bank recently introduced “Online
Chalan Verification” through web portal www.cga.gov.bd from any place of the world. It is a pleasure to express that all
socially committed allowances are being computerized and are to be disbursed through online to the selected beneficiaries
in a very recent days.
Sonali Bank Limited GM Office Wise

Branch Network with Bangladesh Map
Serial Name of GM No. of Branches
No. Office (Including Corp.)
01 Dhaka-1 109
02 Dhaka-2 106
03 Mymensing 118
04 Sylhet 80
05 Faridpur 106
Indicates District Total Number of Branches
06 Chittagong 109 Indicates GM Headed Branch (3 in Dhaka City)
07 Barisal 78
08 Khulna 123
1. Local Office
09 Rajshahi 143 2. Bangabandhu Avenue Corp.
10 Rangpur 116 3. Ramna Corp.
11 Cumilla 139
TOTAL 1227
Annual Report 2021

CONTRIBUTION TO NATIONAL ECONOMY

Financial Support in Industrial, SMEs, Agro and other sectors
With a view to achieving economic goals and accelerating the pace of industrial development through implementation of
government policies, SBL has sanctioned loans for establishment of new industrial units and also for expansion (BMRE) of
existing potential units to expand the industrial base in the country. The Bank has thus created employment opportunities
by sanctioning the above loans to various industrial units in the year 2021 which will contribute towards GDP growth. The
Bank extended term loans and working capital to different producers, business people and service providers under SME
financing. As per Bangladesh Bank’s instruction, Sonali Bank Limited has been providing Agricultural/Rural Credit among the
rural farmers ranging from 4% to 10% with simple interest rate. The Bank has been trying its best to provide funding support
to micro-credit sector for poverty alleviation, self-employment generation and rural economic development. At present, as
many as 24 projects/programs aimed at alleviating poverty are being run by the Bank.
Sonali e-sheba and Sonali e-wallet
During the COVID 19 pandemic in 2020, for the welfare of the country and the the mass people, Sonali Bank Limited introduced
’’Sonali eSheba’’ through which the clients can open accounts even from their home. As a continuous process, the bank also
introduced ’’Sonali e-wallet’’ which helps the clients to make transactions to any accounts, pay the bills and taxes etc.
Contribution to National Exchequer
Sonali Bank Limited plays an important role in assisting the Government in revenue collection. The Bank pays tax and value
added tax (VAT) on its own income. Besides, SBL collects income tax, VAT, tax at source from clients and suppliers and
deposits the same to the national exchequer. During 2021, the Bank deposited a total of Tk. 10,847.49 million as advance
tax, tax at source and VAT to the national exchequer which was Tk. 12,227.10 million in 2020. In 2021, Sonali Bank Limited
has been awarded Appreciation Letter as one of the “Highest Vat Payers” by Large Tax Payers Unit (Vat) of National Board of
Revenue (NBR) for the assessment year 2020-21.

01. VAT on Commission 742.41 628.82
02. VAT on Rent on bank building 89.71 72.24
03. VAT on Various Expenses 146.40 109.96
04. Source tax on L/C commission 74.93 89.22
05. Source tax on buying house commission 18.84 109.26
06. Source Tax on Interest paid by bank 3853.43 6531.07
07. Source Tax on Cash subsidy on export 248.70 107.57
08. Source Tax on Neat & Garments Export 176.25 107.49
09. Source Tax on other than Neat & Garments Export 11.13 5.58
10. Excise duty 1865.67 1573.82
11. Employees tax 68.79 86.49
12. Tax deducted at source 2693.27 2394.97
13. Advance tax paid 500.00 500.00
14. Tax paid on car 3.43 1.31
15. Tax on Various Expenses and others 354.53 -
Total 10847.49 12227.10
Financial Inclusion
With a view to assisting the government in accelerating financial inclusion program, SBL is working relentlessly to bring
simple, poor and unbanked people under the coverage of banking system with it’s enormous branch network in rural
andurban ar eas. Total number of accounts under financial inclusion program stood at 5,394,192 in 2021.
Salaries to Staff
Till December 2021, the number of total employees of Sonali Bank Limited was 18,200. Tk. 14,822.82 million was paid to the
employees as salaries and allowances and from the salaries, Tk. 68.79 million was paid as income tax from the employees.
Green Economy
Complying with Bangladesh Banks’ green banking policy, SBL is financing environment friendly projects named renewable
energy projects, clean water supply projects, waste treatment plant, solid waste disposal plant etc. to ensure ecological balance.
For indirect Green Finance, Bank is funding such projects which have ETP and Solar Panel. “Sonali Alo” is the Bank’s initiative
intended to align its efforts with the initiatives being undertaken by both public and private sectors. In 2021, Sonali Bank Limited
directly financed Tk. 55.90 million in various projects. Moreover, CBS has been installed in all branches of the Bank.
186
CONTRIBUTION TO NATIONAL ECONOMY
BANGABANDHU
SATELLITE-1
THE PRIDE OF BANGLADESH
Annual Report 2021

MANAGEMENT
DISCUSSION
AND ANALYSIS
Global Economic Situation Economic recoveries are diverging across countries and
sectors, reflecting variation in pandemic-induced disruptions
The global economy is recovering strongly from the and extent of policy support. While advanced economies are
COVID-19 outbreak though the process is very unequal re-bounding, many of world’s poorest countries are being
among countries. According to the recently published left behind. The report predicts that the growth of developed
World Bank’s Global Economic Prospect, June 2021, the economies will reach 5.4 percent in 2021, with 6.8 percent
economic growth is projected at 5.6 percent in 2021, while potential economic growth in the United States. Growth in
growth was contracted to 3.5 percent in 2020. This recovery emerging markets and developing economies is projected at
is uneven and largely reflects sharp rebounds in some major 6.0 percent in 2021, with China growing at 8.5 percent and
economies owing to substantial fiscal support and highly India at 8.3 percent.
vaccine access. Global growth is set to reach 4.3 percent
and 3.1 percent respectively in 2022 and 2023. According to the World Economic Outlook (WEO) April
2021, International Monetary Fund (IMF), economic activity is
188
MANAGEMENT DISCUSSION AND ANALYSIS
firming across major advanced economies amid continued per capita national income stood at US$ 2,227 up by US$ 203
vaccination. The economic growth of almost all countries of from US$ 2,024 of the previous fiscal year.
advanced economies will be positive. Projections for 2021
Despite the stagnation in the economy due to the
have been revised down in Europe and up in Japan and the
coronavirus, inflation in FY2020-21 is slightly high (5.56%)
United States.
than the target (5.4%) as a result of uninterrupted food
Prospects for China are much stronger than for most other production and supply chains. To address the crisis resulting
countries in this group in 2021. The recovery in all emerging from the outbreak of COVID-19 and overcome its potential
markets and developing economies regions is expected to adverse effects on the economy, Hon’ble Prime Minister
be insufficient to reverse the damage from the pandemic. Sheikh Hasina has guided the formulation of an overall
The recovery in small, tourism-dependent economies is programme with short, medium, and longterm targets. This
expected to be particularly weak as some travel restrictions program has four main strategic aspects.
will remain in place until the pandemic is brought under
1. The first strategy is to increase government spending with
control. The pace of vaccine rollout varies across countries,
a priority to creating jobs and discouraging luxury spending.
with low-income countries lagging considerably. The
recovery is expected to be stronger in East Asia and the 2. The second strategy is to provide low-interest credit
Pacific, primarily due to strength in China. In South Asia, facilities through the banking system to industries and
India’s recovery is being hampered by the largest outbreak business enterprises to revive economic activities and
of any country since the beginning of the pandemic. In increase the competitiveness of entrepreneurs at home and
addition, consistent with the projected global recovery, oil abroad.
prices are projected to grow in 2021 from their low base
3. The third strategy is to increase the scope of the
in 2020, in part reflecting the OPEC+. Food prices are also
government’s social security programs to protect the
expected to pick up in 2021.
ultra-poor and the low-income groups that have suddenly
Bangladesh Economic Scenario become unemployed as well as the people engaged in
informal sectors.
Following the trend of achieving economic growth, the
growth exceeded 7 percent in FY 2015-16 and 8 percent in 4. The fourth and last strategy is to increase money supply
FY 2018-19. In FY 2018-19, the growth stood at 8.15 percent. in the market. However, this strategy is being implemented
The global economy has come to a standstill due to the with utmost caution so that the negative effects of inflation
COVID-19 pandemic which has also had a huge negative can be controlled.
impact on the economy of Bangladesh. According to the
Foreign trade of Bangladesh has started to return to a positive
final calculations of BBS, the GDP growth in FY 2019-20 has
trend after confronting the adverse effect of COVID-19
slowed to 3.51 percent. Bangladesh’s economy is turning
pandemic. Export earnings stood at US$ 38,758.31 million
around in the context of tackling the coronavirus of the
in FY 2020-21, which is 15.10 percent higher than the export
world economy. According to the provisional estimates of
earnings in the previous fiscal year. The government has
BBS, the GDP growth in FY 2020-21 stood at 5.47 percent.
taken several steps as an incentive in the export sector. In
According to the provisional estimate of BBS, the growth of order to encourage exports and export of commodities cash
agriculture sector has slowed to 3.45 percent in the FY 2020- incentive is being provided to the exporters. This facility is
21, from 4.59 percent in FY 2019-20. During the same period, being extended to new products as well. Country’s total
industry sector grew by 6.12 percent, which was 3.25 percent import payments (c&f) stood at US$ 65,594.7 million in FY
in the previous fiscal year. The growth of large and medium 2020-21, which was 19.73 percent higher than the import
enterprises and small scale industries in GDP stood at 6.56 payments of the preceding fiscal year.
and 1.73 percent respectively in FY 2020-21, compared to
Due to COVID-19 pandemic, the global labour market has
1.39 percent and 3.96 percent in the previous fiscal year. The
drastically affected. Despite this, Bangladeshi expatriates’
growth of the construction sector stood at 8.68 percent as
remittance stood at US$ 24,777.72 million in 2020-21 which
compared to 8.66 percent over the previous fiscal year. The
was significantly higher (36.10%) than the previous fiscal
service sector grew by 5.61 percent in FY 2020-21 compared
year. The major portion of remittance has been received
to 4.16 percent in the previous fiscal year.
from Middle East countries. The USA obtained the top
Wholesale and retail trade; hotels and restaurants; transport position among the Western and European countries.
and communication; financial intermediations; real estate and Recently, remittance inflow has increased from UK, Malaysia,
renting and business activities etc. have increased significantly Singapore and some other countries.
compared to FY 2019-20. The contribution of broad service
The surplus in the overall balance helped to maintain the
sector to the GDP stood at 51.53 percent in FY 2020-21, which
foreign exchange reserve up. On 30 June 2020, the foreign
was 51.48 percent in the previous fiscal year. As per the final
exchange reserves reached US$ 36.04 billion. The foreign
estimate, per capita GDP stands US$ 2,097 in FY 2020-21, up
exchange reserves increased to a record US$ 46.39 billion
by US$ 167 from US$ 1,930 of fiscal year 2019-20, while the
at 30 June 2021.
Annual Report 2021

Performance Review of Sonali Bank Limited was Tk. 243,012 million in 2020. As on previous year, fixed
deposits constituted of the main component of the deposit
Significant Achievements at a glance item that was 398,305 million or 29.49 percent of total
The Bank always strives to achieve meaningful financial deposits in 2021. After fixed deposits, savings deposits stood
performance. Strong capital base, wide branch network, at Tk. 528,620 million in 2021 which was Tk. 451,471 million
innovative products, quality services, customer satisfaction in 2020 meaning 17.09 percent growth and accounted for
and their reliability, support from stakeholders etc. are 39.13 percent of the total deposits. Bills payable of the Bank
helping the Bank to make significant performance. The stood at Tk. 12,815 million in 2021 which was Tk. 11,043
major achievements of SBL in 2021 are: million 2020. SBL employs its best efforts to increase the
proportion of low/no cost deposit and to achieve an ideal
z SBL achieved Operating Profit of Tk. 20,903.75 deposit mix.
million in 2021 which was highest in the banking
sector of Bangladesh. Net profit after taxation stood Investment
at Tk. 3,456.67 million in 2021 which was highest There was a significant change in the investment of SBL. The
among the state owned commercial banks of the total investment of the Bank stood at Tk. 688,064.72 million
country. at the end of 2021 which was Tk. 629,681.83 million in 2020.
z Total assets of the Bank stood at Tk. 1,706,803.45 Major investments were made in the form of Treasury Bills,
million as on 31 December 2021 comparing 7.26% Treasury Bonds, Special Bonds, Reverse Repo, Call Loan,
higher than that of Tk. 1,591,233.76 million as Term Deposit, Shares and Debentures etc.
on 31 December 2020. This is to be delightfully
Investment Income
mentioned that this is the highest amount of assets
that a commercial Bank has reached ever. Total investment income of the Bank as on 31 December,
z The bank is maintaining the uptrend of its deposits 2021 was Tk. 38,692.73 million against Tk. 39,996.43 million
successfully. In the reporting year, deposit of the of the previous year.
bank stood at Tk. 1,350,815.87 million against Tk. Classified Loan and Recovery
1,258,786.26 million in 2020 with an increase of
7.31%. The amount of classified loan stood at Tk. 119,585.29 million
which was 17.32 percent of the Bank’s total loan as on 31
z All of its 1,227 local branches are rendering digitalized December, 2021. The amount was Tk. 107,673.90 million
banking services through CBS to the clients of the (18.37 percent of Bank’s total loan) as on 31 December,
Bank. These branches have been operating SMS 2020. The amount of recovery against classified and written
banking service. Registered customers can get their off loan in 2021 was Tk. 12,590.05 million and Tk. 1,672.60
account transaction and balance through SMS. million respectively.
z During 2021, the Bank deposited Tk. 10,847.49
Capital Adequacy
million as Tax, VAT, Excise Duties, and Source
Taxes etc. to the national exchequer which was Tk. As or 31 December 2021, Bank’s Capital to Risk-weighted
12,227.10 million in 2020. Asset Ratio (CRAR) has stood at 10.04% which is 0.04% higher
z Extended Corporate Governance and CSR activities. than regulatory requirement of 10.00%. The maintenance of
the regulator’s minimum capital requirement came through
z Providing real time online banking through Core the prudent management of overall assets of the Bank. As part
Banking Software with a world class technology of capital management, the Bank emphasized on increasing
platform. rated exposures. Total assets of the Bank increased by 7.26%
Analysis of Operating and Net Profit in 2021 but the Risk Weighted Assets (RWA) of the Bank also
increased slightly in the same period. This is to be mentioned
The total operating profit of SBL stood at Tk. 20,903.75 that total assets of the Bank crossed Tk. 1.00 trillion in 2015
million in 2021 against Tk. 21,526.93 million in 2020. Whereas which set a record in the history of a commercial bank in
operating expense was Tk. 21,484.53 million in 2021 which Bangladesh. In 2016, total deposits of the Bank also crossed
was Tk. 21,346.39 million in 2020. On the other hand, net the landmark of Tk. 1.00 trillion and in the reporting year, the
profit registered at Tk. 3,456.67 million in 2021 against Tk. Bank has maintained the uptrend of the deposit flow.
3,234.35 million in 2020.
Credit Rating
Deposits
Credit Rating Information and Services Ltd. rated Sonali
The total deposit of the Bank as on 31 December, 2021 was Bank Limited in their report; they rated the Bank AAA as
Tk. 1,350,815.87 million showing an increase of Tk. 91,029.61 With Government Support for long term and ST-1 for short
million or 7.31 percent over 1,258,786.26 million of the term. They also rated the Bank A+ as Without Government
preceding year. Total deposits comprising current deposit Support for long term and ST-2 for short term. The outlook
and other accounts stood at Tk. 231,393 million which of the rating is stable. The rating company performed the
190
rating surveillance based on Audited Financial Statements Shariah Supervisory Committee has been constituted with
and other relevant information based on 31 December 2020. country’s famous Islamic thinkers, economists and bankers.
Principal Activities Ecology and Green Banking

Core Banking Solution (CBS) Ecology and green banking has become a social awareness
in the present world. SBL insists on going green to help the
The Bank has successfully installed Core Banking Solution
environment through its Online Banking, Mobile Banking
(CBS) in all of its 1,227 local branches by using new
and the idea of socially responsible investment funds for
technologies and innovative services to make banking easier
sustainable project finance activities. Online banking which
and simpler. At present, the Bank takes the pride of being
reduces the use of paper and carbon footprint, saving daylight
the largest online bank in Bangladesh. It has also taken
through proper entrance of sunlight and air which reduce
initiatives to make the Bank totally IT driven and to achieve
the use of electricity. Investment in eco friendly business
full automation. A web based in house developed software
projects are important and easy aspect of green banking. A
named ‘Remittance Management System Plus” (RMS
truly green bank will reduce its carbon footprint by building
plus) has been deployed at 1,227 branches for receiving
more efficient premises and branches; implementing more
foreign remittance and receipt and payment of inland/local
efficient operational procedures to promote sustainable
remittance through RMS plus. We are also providing SMS
banking and increasing their investments in environment
Banking, VISA Credit & Debit card facilities, ATMs, Phone
sensitive industries.
Banking, Q-Cash, Bangladesh Automated Clearing House
(BACH), Bangladesh Electronic Fund Transfer Network SBL’s Green Banking practices are connected with both
(BEFTN) to our customers smoothly. internal operation and product ecology. Product ecology is
concerned with the impacts of the banks on the environment
SME Financing used by the clients. Green Banking is engaged in creating
The Bank is emphasizing the activities relating to the socially responsible investment funds and sustainable project
promotion of sustainable economic development and finance activities. SBL is concerned with the welfare of its
taking keen interest for providing overall service with employees and customer’s satisfaction, benefits, wages and
the coordination of modern technologies and expert the Bank’s environmental standing. The Bank is putting a
professionals in the SME sector considering the same as combined effort on switching to more environment friendly
center of economic development. As a leading commercial practices i.e Online Banking, reducing wastage of paper and
bank in the country, SBL is contributing the economic electricity, using solar power and energy saving bulb, saving
progress by creating employment opportunities for mass day light during office hours and being more conscious
unemployed people through financing small and medium about employee travel policies.
industry, trade and service sector. In this case, the Bank is firmly
Benefits of Online Banking include less paperwork, less mail
committed to create quality SME customers, patronize and
etc. which all have a positive impact on the environment. The
develop them through equal management besides providing
environment and the banking Industry both are benefited
utmost importance to acquire quality assets. Moreover, the
when the customers of a bank start using Online Banking,
Bank is accelerating the sustainable development of rural
SMS Banking and Mobile Banking services. SBL aims at
economy of the country by investing the micro and cottage
introducing changes in operational areas in future to adopt
industry and giving special attention to the neglected and
more environment friendly procedures. The progress of our
un-banked female entrepreneurs as well as trying to connect
current banking system towards a fully electronic and Online
them to the mainstream of economic development by
Banking will further reduce the operational cost and will be
offering diversified loan products. Considering economic
beneficial for our customers.
development of the country, the Bank is ignoring net spread
and investment operational cost. SBL regularly participate Ethical Banking
SME promotional activities such as SME Fair, Road Show,
Banks and the policies they pursue have an impact on the
Open SME Loan Disbursement and Exchange of views with
community around them. Their impact has two dimensions:
the entrepreneurs organized by Bangladesh Bank, SME
the way they operate i.e. internal operations and the types
Foundation, Business Associations and Chambers. The Bank
of companies they finance. SBL takes care of both the
also arranges Bankers Entrepreneurs meeting at field based
dimensions in its operation. Many ethical issues such as
controlling offices and premises.
the environmental conduct of customers are now part
Islamic Banking of standard risk assessment and prudent banking. It is
becoming increasingly common practice for banks to have
Because of Muslim dominant people of Bangladesh, Islamic
guidelines for their staff on the major ethical issues they
banking, based on Shariah, is getting popularity in the country.
cover. SBL has been trying to follow the Equator Principles,
SBL has also started banking business based on Islamic
a set of guidelines developed by the banks for managing
Shariah since June 29, 2010 to provide their ever increasing
social and environmental issues related to the financing of
demands. In order to efficiently operate Islamic banking, a
development projects.
Annual Report 2021

Treasury Operation as the part of CSR. Further, the Bank has a plan to establish
a hospital and an international standard school and college
Treasury operation is one of the core functions of SBL. under CSR. SBL has always been paying respect to social
Treasury Management Division (TMD) is responsible for fund and public welfare rather than orbiting around maximization
management, i.e, maintaining adequate cash balances to of profit. SBL energizes from implementation of every single
meet day to day requirements and deploying surplus funds opportunity of serving the nation regardless of the magnitude
from operations. It is also responsible for maintenance of of the frame.
reserve requirements (Cash Reserve Ratio and Statutory
Liquidity Ratio). It has now evolved as a profit center with its Human Resource Development
own trading and investment activities and has a pioneer role Skilled manpower is the pre-requisite of success in any
of leadership in building stable Inter Bank Money Market and organization. Every human being has unique latent qualities
Foreign Exchange Market in Bangladesh. in him/her though the qualities remain unexplored most
Capital Market Operation of the time. If the latent qualities of a newly appointed
employee are exposed and can be trained up in a proper
SBL has a significant presence in the capital market of way, one can be turned into an asset for the organization.
Bangladesh through its subsidiary Sonali Investment Limited The aim of Human Resources Division of SBL is to take
(SIL). Obtaining license from BSEC, SIL commenced its initiatives to explore the unexplored latent qualities in our
operation on 14 September, 2009 as Merchant Banking manpower and provide them with proper training which
Unit under Treasury Management Division (TMD) of Sonali includes on Job and off Job training, attending different
Bank Limited. Subsequently, the merchant banking unit had seminars and conferences related to skill development,
been registered with Registrar of Joint Stock Companies job rotation and time to time counseling. Besides, the Bank
and Firms (RJSC) as a full fledged subsidiary of SBL on April recruited Probationary Officers and Senior Officers to meet
22, 2010 as SIL. The authorized and paid up capital of the the changing business needs and ever increasing demand of
company stands at Tk. 6,000.00 million and Tk. 2,000.00 prompt customer service of the clients.
million respectively. Being fully compliant with the laws of
the land, SIL ensures high quality services to our valuable Asset Liability Management
clients through its professionalism. It attaches priority to Asset Liability Management (ALM) is the most important
investors’ interest, their benefit and always intends to protect function of Bank Management derived from an independent
investors against market related risks. This is why SIL has unit within Treasury Management Division of SBL. The
become a trusted partner of investors. The current activities function of ALM is the architecture of Bank’s Balance Sheet
of the company include Issue Management, Portfolio by assessment of current scenario and projection of future
Management, Underwriting, Equity Participation and possibilities. As a part of core risks management in Banking,
ancillary services related to the capital market. At present, Bangladesh Bank has introduced basic guidelines for
Sonali Investment Limited runs its day to day operation by managing assets and liabilities of banks in Bangladesh. In line
its Head office and four branches located at Paltan, Uttara, of Bangladesh Bank guidelines of Asset liability management
Mirpur and Khulna. The company has a plan to open new (ALM) and related circulars, SBL facilitates smooth functioning
branches at other divisional towns in future. of asset liability management and controlling the Balance
Foreign Correspondent Bank Sheet risks.
SBL has established correspondent relationship with 692 Risk Management

branches of 463 banks located in 96 countries to facilitate Like any other business, there are various risks inherent in
business with foreign countries. This correspondent banking business as well. But the risks in banking business are
relationship has significantly increased bank’s foreign complex and multi-dimensional. These necessitate structural
exchange and trade business simultaneously. As a result, the development and the implementation of risk management
clients of SBL have been receiving prompt and satisfactory strategies in the banking sector. Bangladesh Bank has
services all over the world. identified 6 (six) core risk areas relating to banking operations
Corporate Social Responsibility and issued necessary guidelines for those areas. These are:
(a) Credit Risk (b) Asset and Liability/Balance Sheet Risk (c)
As a leading state owned commercial bank in the country, Foreign Exchange Risk (a) Money Laundering Risk (e) Internal
SBL extend its hands of cooperation to the destitute people Control and Compliance Risk (f) Information Technology
who are largely affected by natural disaster and calamities. Risk and 01 (one) supplementary Risk - Environmental
The Bank also provides scholarship to the poor but and Climate Change Risk. The Risk Management Division
meritorious students for their higher studies every year. The identifies, analyses, evaluates and supervises all risk related
Bank has donated funds for rehabilitation of the employees works including control/mitigation measure of risk as per
affected in Rana Plaza Tragedy and earthquake affected guidelines and direction of the Bangladesh Bank with the
people in Nepal in the recent past. Besides, SBL takes part in approval of the Board of Directors. A high powered ‘Risk
many socio economic activities, cultural and sports events Management Committee’ comprising five members of the
192
Board of Directors has been working as per the directives z Special programs for business like ‘Seba-Mash’,
of Bangladesh Bank to strengthen overall risk management ‘Grahok-Somabesh’, ‘Remittance Pokkho’ etc.
activities. z To present innovative and new deposit and
Outlook for 2022 investment products to the customers.
The overall growth performance of the Bangladesh economy Some factors may cause actual results to differ and some
was stable in 2018-19 at 8.15 percent due to macroeconomic may significantly deviate from the outlook for 2022. Some
stability, lower inflation rate, and higher production in the of the factors that may affect the business environment are
industry and service sector. The current account balance in given below:
the balance of payments is expected to be benefited from z Changes in the general economic condition
lower oil prices in international market. Within the scenario, resulting from natural calamities and political
the financial sector in Bangladesh still expects to record a disturbances.
steady growth. To make 2022 another successful year, SBL
is ready to accept the challenges of 2022 with new visionary z Changes in government policy issues.
zeal to achieve the common objectives of the Bank and z Increase in corporate tax rate.
hence the year 2022 will definitely be a challenging for z Increase in CRR and SLR of the banks.
everyone at SBL. To achieve success in the year, SBL has
undertaken the following short term strategies side by side z Withdrawal of incentive given to some thrust sectors
with midterm and long term strategies: which may make the projects slowly moving.
z Directives to reduce the lending rates to finance
z Initiative will be taken to invest in strategically
essential items.
important in innovative areas which will focus on
delivering stronger value added offers to our clients. z Increase in provisioning requirement may reduce
the ROA and ROE.
z Steps to accelerate the number of VISA enabled
credit card holders along with further expansion of z Reducing the margin ratio for investment accounts.
ATM services. z Volatility in interest rate.
z Integrated approaches through multi-dimensional z Volatility in capital market arising from speculations.
and customized promotional programs to gear
z Compliance issues raised by the international
up entire foreign trade including wage earners’
forums which are likely to affect the export growth.
remittance.
z Rise in international prices of essentials which may
z Pragmatic steps to bring the SME under the main
lead to volatility in Foreign Exchange Market.
stream of investment which will facilitate creating
employment opportunities for a large section of z International embargo/unrest may adversely affect
population. remittances and trade.
z Formulation of an integrated CSR and Green z Adverse media reporting.

financing policy.
z Steps to strengthen relationship with customers
and pay more attention on client satisfaction,
loyalty and retention.
Annual Report 2021

AWARDS &
RECOGNITIONS
ICMAB Best Corporate Award 2020 (Golden Award) received by CEO & Managing Director Mr. Md. Ataur Rahman Prodhan.
Annual Performance Agreement Award 2020-2021, awarded by Financial Institutions Division, Ministry of Finance.
194
AWARDS & RECOGNITIONS
Highest VAT Payer 2020-2021 received by Deputy Managing Director Mr. Md. Mazibur Rahman
ICMAB Best Corporate Award 2018 ICMAB Best Corporate Award 2019
Sl. Name of Award Awarded by Year

1 Annual Performance Agreement Award 2020-2021 Financial Institutions Division, Ministry of Finance 2021
2 ICMAB Best Corporate Award 2020 Institute of Cost and Management Accountants, Bangladesh 2021
3 Highest VAT Payer Large VAT Payers Unit, National Board of Revenue 2021
5 Annual Performance Agreement Award 2018-2019 Financial Institutions Division, Ministry of Finance 2019
7 Award in Foreign Remittance Collection Centre for the Non-Residence Bangladeshis (NRBs) 2019
8 Bangladesh Bank Remittance Award Bangladesh Bank 2018
9 Bangladesh Bank Remittance Award Bangladesh Bank 2017
11 Highest Tax Payer in Banking Sector National Board of Revenue 2016
12 Best Financial Institute of the Year Arthokontho Business Award 2013
13 Best Brand Award Bangladesh Brand Forum 2013
14 Strongest Bank in Bangladesh The Asian Banker 2012
15 Highest Remittance Collecting Bank The Industry 2012
17 Award in Foreign Remittance Collection Centre for the Non-Residence Bangladeshis (NRBs) 2012
19 Best Retial Banker in Bangladesh The Asian Banker 2010
22 ICMAB Best Corporate Award Institute of Cost and Management Accountants, Bangladesh 2008
Annual Report 2021

PRODUCTS AND
SERVICES OF SBL
Deposits
Time Deposits Loans and
1 Fixed Deposits Advances
2
3
Special Notice Deposits (SND)
Deposit Pension Scheme General
4 Sonali Bank Special Deposit and
Pension Scheme Advances
5 Savings Deposits
1 Cash Credit: General-Hypothecation
6 Non-Resident Foreign Currency
2 Cash Credit: General Pledge
Deposit (NFCD) and Resident Foreign
3 Demand Loan
Currency Deposit(RFCD) Account
4 Overdraft
7 ATM A/C
5 Small Loan
8 Sonali Deposit Scheme
6 House Building Loan (General)
9 Education Deposit Scheme
10 Medical Deposit Scheme
11 Rural Deposit Scheme
9 Special Small Loan Programme
12 Monthly Earning Scheme
10 Small Business Loan Scheme
13 Marriage Savings Scheme
11 Lease Finance
14 Double Benefit Scheme
12 Probashi Karma-sangsthan Rin
15 Sonali Bank Daily Profit A/C
Prokalpa
16 Non-Resident Deposit Scheme
13 Term Loan to Freedom Fighters
17 School Banking Scheme
14 Personal Loan
18 Retirement Savings Scheme
15 Education Loan
19 Sonali Bank Retirement Savings
16 Foreign Education Loan
Scheme
Programme
20 Triple Benefit Scheme
21 Sonali Bank Millionaire Scheme
22 Sonali Krishok Savings Scheme (SKSS) Rural Credit
Industrial Credit
1 Loan Under Sonali Bank Agro-based
Industrial Cr. Scheme
2 Working Capital to Agro-based
1 Loan under Sonali Bank Industries-Hypo.
Industrial Credit Scheme 3 Working Capital to Agro-based
2 Laon under External Industries-Pledge
Credit Programme 4 Agricultural Credit
3 Working Capital to
Industries-Hypothecation
4 Working Capital to Industries-Pledge
5 SME Finance A/C
(Term Loan to Services)
6 SME Finance A/C
(Term Loan to Industries) 1 Bank-NGO Linkage Wholesale Credit
2 Credit for Urban Women Micro
7 SME Finance A/C (Working Capital Enterprise Developement (CUMED)
to Industries and Trading) 3 Unmesh
4 Rural Small Business
5 BRDB-UCCA
196
PRODUCTS AND SERVICES OF SBL
Sundry
Deposits
1 Margin on Letters of Credit
2 Margin on Letters of Guarantee
3 Hajj Deposits
4 Employees Contributory Provident
Fund
5 Employees General Provident Fund
6 Sonali Bank Employees Pension
Fund
Demand
7 Sonali Bank Employees Pension and
Death Cum Retirement Benefit Fund
8
9
Drafts Payable
Govt. Drafts Payable Deposits
10 Payment Orders Issued
1 Current Deposits
11 Foreign Drafts/Travellers Cheque
2 Call Deposits
Issued
3 Foreign Currency Deposits
12 Foreign Correspondents Charges
4 Convertible Tk. A/C
13 Foreign Drafts Payable
5 Foreign Bank's Deposits
6 Exporter's Foreign Currency
Financial Retention Quota
Services International
Sl. Inland Remittance Trade Finance
1 Demand Draft (DD)
2 Telephonic Transfer (TT) 1 Loan Against Imported
3 Mail Transfer (MT) Merchandise (LIM)
2 Loan Against Trust Receipt
4 E-Wallet
3 Forced Loan against Back to Back
5 RTGS
Letter of Credit
6 Sonali Payment Gateway
4 Packing Credit
5 Loan Against L/C Under WES
Sl. Foreign Remittance 6 Foreign Bills Purchased/
Negotiated-Clean
1 Blaze
7 Foreign Bills Purchased/
2 Skrill
Negotiated-Documentary
3 Western Union
8 Payment Against Document (PAD)
4 IME
9 Inland Bills Purchased
5 Trans-fast
6 Spot Cash
7 Xoom Paypal
8 SAMBA
9 Hello Paisa South Africa
10 RIA Financial Services
Annual Report 2021

Other Services
A. Utility Bills
1 Electricity Bills Collection of
PDB, REB, DESCO and DPDCL.
2 Bills Collection of
Titas Gas Company.
3 Bills Collection of WASA.
4 Telephone Bills Collection of BTCL.
B. Payment
Islamic Banking 1 Salary and allowances for the
Deposits teachers of 5.00 ( ve) lac private

Educational institution.
2 Old age allowances.
1 Al-Wadeeah Current 3 Allowances to 60,000 bene ciaries
Account (AWCA) of Sta Benevolent Board.
2 Mudaraba Savings Account (MSA) 4 Freedom Fighters remuneration
3 Mudaraba Special and allowances.
Notice Deposit (MSND) 5 Widows, Divorcees and destitute
4 Mudaraba Term Women allowances.
Deposit Account (MTDA) 6 Allowances to the poor mother.
5 Mudaraba Hajj 7 Allowances of the disabled people.
Deposit Scheme (MHDS) 8 Allowances
6 Mudaraba Monthly to the Acid Burnt Women.
Pro t Scheme (MMPS) 9 Stipend /scholarship
7 Sonali Monthly to the disabled students.
Deposit Scheme (SMDS)
C. Collection
Loans and 1 e-challan
Advances 2
3
Land Development tax.
Excise duty
4 VAT
Islamic Banking 5 Source Tax
Investment 6 Travels Tax
7 Hajj Deposit
1 Bai-Murabaha 8 Jakat Fund
2 Bai-Muajjal 9 City Corporation Tax
3 Bai-Salam 10 Information delivery in accordance
4 Hire Purchase with section 111 (F), Income Tax
Under Shirkatul Meelk Ordinance, 1984.
5 Bai-Istisna'a 11 Activities related
to Local Government.
12 ASYCUDA/Online Customs Duty
Collection
198
MEIDA HIGHLIGHTS OF SBL
MEDIA HIGHLIGHTS
OF SBL
Annual Report 2021

PHOTO GALLERY
PHOTO
GALLERY
Agreement signing ceremony of Payra Port Dredging 50 Years Golden Jubilee Inauguration Ceremony of Sonali Bank Inauguration of “Savings Bond” under “National Savings MoU Signing Ceremony of Sonali Bank Limited with
Program on presence of Hon’ble Prime Minister Sheikh Limited by Hon’ble Finance Minister of GoB, Finance Secretary Scheme Management” held at Finance Division of the Payra Port Authority.
Hasina, MP. of GoB, Governor & Former Governor of Bangladesh Bank, Ministry of Finance.
Chairman and CEO & Managing Director of Sonali Bank Limited.
Souvenir unveiling moment of 50 Years Golden Jubilee Ceremony of The Minister of Textiles & Jute Mr. Golam Dastagir Gazi, MP, Agreement Signing Ceremony between Trust Axiata Pay Agreement Signing Ceremony with Department of
Sonali Bank Limited by Honorable Finance Minister of GoB, Finance along with Mr. Md. Ataur Rahman Prodhan, CEO & Managing (tap) and Sonali Bank Limited. Shipping, Bangladesh, represented by Mr. Subhash
Secretary of GoB, Governor & Former Governor of Bangladesh Bank, Director of SBL, visited “Mujib Corner” located at Sonali Bank Chandra Das FCMA, FCA, on behalf of SBL.
Chairman and CEO & Managing Director of Sonali Bank Limited. Limited, Local Office, Motijheel, Dhaka.
Bangladesh’s first 24X7 real time remittance network “blaze” Inaugural Ceremony of Collection of loan installment Fee/Charge Collection Agreement under “One Stop Photo session with the participants of Art competition
launching program inaugurated by Hon’ble Advisor to the Prime and other Fees through Sonali e-Sheba App with BHBFC. Service” between BEPZA and Sonali Bank Limited. held on Victory Day organized by Sonali Bank Limited.
Minister Mr. Sajeeb Wazed Joy.

INDEPENDENT
AUDITOR’S REPORT
TO THE SHAREHOLDERS
OF SONALI BANK LIMITED
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the consolidated financial statements Statements section of our report. We are independent of the Group
of Sonali Bank Limited and its subsidiaries (the and the Bank in accordance with the International Ethics Standards
“Group”) as well as the separate financial statements Board for Accountants’ Code of Ethics for Professional Accountants
of Sonali Bank Limited (the “Bank”), which comprise (IESBA Code), Bangladesh Securities and Exchange Commission
the consolidated and separate balance sheets as at 31 (BSEC) and Bangladesh Bank, and we have fulfilled our other ethical
December 2021 and the consolidated and separate responsibilities in accordance with the IESBA Code and the Institute
profit and loss accounts, consolidated and separate of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We
statements of changes in equity and consolidated believe that the audit evidence we have obtained is sufficient and
and separate cash flows statement for the year then appropriate to provide a basis for our opinion.
ended, and notes to the consolidated and separate
financial statements, including a summary of Key Audit Matters
significant accounting policies and other explanatory
information. Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the consolidated and
In our opinion, the accompanying consolidated separate financial statements of the current period. These matters
financial statements of the Group and separate were addressed in the context of our audit of the consolidated
financial statements of the Bank give a true and fair and separate financial statements as a whole, and in forming our
view of the consolidated financial position of the opinion thereon, and we do not provide a separate opinion on
Group and the separate financial position of the Bank these matters. For each matter below our description of how our
as at 31 December 2021, and of its consolidated and audit addressed the matter is provided in that context.
separate financial performance and its consolidated
and separate cash flows for the year then ended in We have fulfilled the responsibilities described in the auditor’s
accordance with International Financial Reporting responsibilities for the audit of the financial statements section of
Standards (IFRSs) as explained in note 2. our report, including in relation to these matters.
Basis for Opinion Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material
We conducted our audit in accordance with misstatements of the financial statements. These results of our
International Standards on Auditing (ISAs). Our audit procedures, including the procedures performed to address
responsibilities under those standards are further the matters below, provide the basis for our audit opinion on
described in the Auditor’s Responsibilities for the accompanying financial statements.
Audit of the Consolidated and Separate Financial
202
FINANCIAL STATEMENTS OF SBL
1) Measurement of provision for loans and advances

See notes # 7.00 and 7.09 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
The process for estimating the provision for loans, We tested the design and operating effectiveness of key
advances and leases portfolio associated with credit controls focusing on the following:
risk is judgmental, significant and complex. While z Credit appraisal, loan disbursement procedures,
estimating such provision certain judgmental factors monitoring and provisioning process;
need to be considered including:
z Identification of loss events, including early warning
z Future business performance of the borrower;
and default warning indicators; and
z Key assumptions relating to further business
z Reviewed quarterly Classification of Loans (CL).
performance of the borrower;
Our substantive procedures in relation to the provision for
z Market value of the collateral;
loans and advances portfolio comprised the following:
z Ability to repossess collateral; and
z Reviewed the adequacy of the general and specific
z Recovery rates. provisions in line with related Bangladesh Bank
Furthermore, these provisions are processed guidelines;
manually that deals with voluminous data extracted z Assessed the methodologies on which the provision
from the IT system of the Bank and following the amounts are based, recalculated the provisions
instructions of Bangladesh Bank issued time to time. and tested the completeness and accuracy of the
Due to high level of judgment involved and using underlying information;
some manual process in estimating the provision for z Evaluated the appropriateness and presentation of
loans and advances, we considered this to be a key disclosures against relevant accounting standards and
audit matter. Bangladesh Bank guidelines;
At year end the Group and the Bank reported total z Evaluated the balances of loans and advances and
gross loans and advances of BDT 704,277 million provisions of overseas branches whether those are
(2020: BDT 587,949 million) and provision as properly incorporated in the gross balances thereon;
required by Bangladesh Bank for loans and advances and
of BDT 75,678 million (2020: BDT 70,166 million). z Finally, we compared the amount of provision
requirement as determined by Bangladesh Bank
inspection team to the actual amount of provision
maintained.
2) Valuation of treasury bill and treasury bond
See notes #6 and 17.01 to the consolidated and separate financial statements
The classification and measurement of T-Bill and We assessed the processes and controls put in place by
T-Bond require judgment and complex estimates. the Bank to identify and confirm the existence of treasury
In the absence of a quoted price in an active market, bills and bonds.
the fair value of T-Bills and T-Bonds is determined We obtained an understanding, evaluated the design and
using complex valuation techniques which may take tested the operating effectiveness of the key controls over
into consideration direct or indirect unobservable the treasury bills and bonds valuation processes, including
market data and complex pricing models which controls over market data inputs into valuation models,
require an elevated level of judgment. model governance, and valuation adjustments.
We tested a sample of the valuation models and the
inputs used in those models, using a variety of techniques,
including comparing inputs to available market data.
Finally, we assessed the appropriateness and presentation
of disclosures against relevant accounting standards and
Bangladesh Bank guidelines.
Annual Report 2021

3) Impairment assessment of unquoted investments

See note #6.02 to the consolidated and separate financial statements
In the absence of a quoted price in an active We have assessed the processes and controls put in place
market, the fair value of unquoted shares and by the Bank to ensure all major investment decisions are
bonds, especially any impairment is calculated undertaken through a proper due diligence process. We
using valuation techniques which may take into tested a sample of investments valuation as at 31 December
Consideration direct or indirect unobservable 2021 and compared our results to the recorded value.
market data and hence requires an elevated level of Finally, we assessed the appropriateness and presentation
judgment. of disclosures against relevant accounting standards
Due to high level of judgment and assumption and Bangladesh Bank guidelines.
involved in evaluating the impairment assessment
of unquoted shares, we considered this to be a key
audit matter.
4) Measurement of deferred tax assets
See note #9.08.01 to the consolidated and separate financial statements
The Group and Bank have recognized deferred tax We obtained an understanding of the Group and Bank’s
assets for deductible temporary difference that it key controls over the recognition and measurement of
believes are recoverable. deferred tax assets (DTA) and the assumptions used in
The recoverability of recognized deferred tax assets estimating the Group’s future taxable income.
is in part dependent on the bank’s ability to generate We also assessed the completeness and accuracy of the
future taxable profits sufficient to utilize deductible data used for the estimations of future taxable income.
temporary differences. We have checked the instruction of Bangladesh Bank
We have determined this to be a key audit matter, regarding the deferred tax assets which was complied
due to the inherent uncertainty in forecasting the accordingly.
amount and timing of future taxable profits and the We involved tax specialists to assess key assumptions,
reversal of temporary differences where significant controls, recognition and measurement of DTA’s.
judgement is involved. Finally, we assessed the appropriateness and presentation
The Group and the bank have reported deferred of disclosures against IAS 12 Income Taxes.
tax assets BDT 26,088 million (2020: BDT 27,508
million) as at 31 December 2021.
5) Revaluation of property, plant and equipment (Assets Revaluation Reserve)
See notes #17.02 to the consolidated and separate financial statements
The Bank in prior year has undertaken revaluation of We assessed the process of revaluation previously taken
its fixed assets. As a result of this revaluation exercise, by the Bank.
an amount of BDT 21,496 million (in 2011 revalued We reviewed revaluation report of the independent valuer
by Taka 12,026 million and lastly in the year 2013 by along with relevant documents and applied our judgment
Taka 9,469 million) is recognized as the fair value to see whether the fair value is still relevant.
gain in revaluation reserve as at 31 December 2021.
Determination of fair value in absence of any quoted We checked related accounting treatments of fair value
price and active market require significant judgment. gain and associated deferred tax as recognized by the
Bank.
6) Legal and regulatory matters

We focused on this area because the Bank and We obtained an understanding of the Group and the
its subsidiary (the “Group”) operate in a legal and Bank’s key controls over the legal compliance.
regulatory environment that is exposed to significant We enquired to those charged with governance to obtain
litigation and similar risks arising from disputes and their view on the status of all significant litigation and
regulatory proceedings. Such matters are subject regulatory matters.
to many uncertainties and the outcome may be
difficult to predict. We enquired of the Bank’s internal legal counsel for all
significant litigation and regulatory matters and inspected
These uncertainties inherently affect the amount internal notes and reports.
and timing of potential outflows with respect to the
provisions which have been established as other We assessed the methodologies on which the provision
contingent liabilities. amounts are based, recalculated the provisions, and
tested the completeness and accuracy of the underlying
Overall, the legal provision represents the Group’s information.
and the Bank’s best estimate for existing legal
matters that have a probable and estimable impact We also assessed the Bank’s provisions and contingent
on the Group’s financial position. liabilities disclosure.
204
7) Carrying value of investments in subsidiaries and associate by the Bank

See note # 9.01 to the consolidated and separate financial statements
The Bank has invested in equity shares of its We have reviewed management’s analysis of impairment
subsidiaries namely Sonali Exchange Co. Inc. USA, assessment and recoverable value calculation of
Sonali Investment Limited, Sonali Bank (UK) Ltd. subsidiaries in accordance with IAS 36, Impairment of
and associate namely Sonali Intellect Limited. As Assets.
at 31 December 2021 the carrying value of these With the investment recognition criteria as per IAS 28, we
investment in Sonali Exchange Co. Inc. USA is BDT reviewed the activities and investment in the associate
81.51 million (2020: BDT 80.56 million), Sonali company as per supporting provided by the management.
Investment Limited is BDT 2,000 million (2020: BDT
2,000 million) Sonali Bank (UK) Ltd. is BDT 3,383 In particular, our discussion with the Management were
million (2020: BDT 3,348 million) and Sonali Intellect focused on the continued appropriateness of the value
Limited is BDT 26.25 million (2020: BDT 26.25 in use model, the key assumption used in the model, the
million). reasonably possible alternative assumptions, particularly
where they had the most impact on the value in use
The Bank is required to perform impairment test calculation.
of investment in subsidiaries when impairment
indication exists. The impairment testing is
considered to be a key audit matter due to the
complexity and judgements required in determining
the assumptions to be used to estimate the
recoverable amount which is higher of fair value less
costs to sell and value in use.
Management has conducted impairment
assessment and calculated recoverable value of its
subsidiaries for Sonali Exchange Co. Inc. USA and
Sonali Investment Limited, Sonali Bank (UK) Ltd.
and associate namely Sonali Intellect Limited in
accordance with IAS 36, Impairment of Assets.
8) Recognition of Interest Income from loans
Recognition of interest income from loans and We tested the design and operating effectiveness of key
advances has significant and wide influence on controls over Recognition and measurement of interest
financial statements. on loans and advances.
Recognition and measurement of interest income We have performed test of operating effectiveness on
has investment of complex IT environment. automated control in place to measure and recognize
We identify recognition of interest income from interest income.
loans and advances as a key audit matter because We have also performed substantive procedure to check
this is one of the key performance indicators of the whether interest income is recognized completely and
bank and therefore there is an inherent risk of fraud accurately.
and error in recognition of interest by management We assessed the appropriateness and presentation of
to meet specific targets or expectations. disclosures against relevant accounting standards and
9) Loans and Advances
Loans and advances are the vital component of We tested the design and operating effectiveness of key
financial statements of the bank. Income of the controls focusing on credit appraisal, loan disbursement
bank is primarily reliant on the portfolio of loans procedures and monitoring process of loans and advances.
and advances. Management performance is We performed procedures to check whether the bank has
highly dependent on the target achievement of ensured appropriate documentation as per Bangladesh
loans and advances. Loan disbursement requires bank regulations and Bank’s policy before disbursement
robust documentation followed by approval from of loans and advances. In addition, we have performed
appropriate level of authority. procedures to check whether the loans and advances is
We identified loans and advances as a key audit recorded completely and accurately and that are existed
matter because there is an inherent risk of fraud at the reporting date.
and error in disbursement of loans and advances We also performed the detailed test to confirm that the
by management to meet specific targets or balances of branches outside Bangladesh were correctly
expectations. incorporated in gross balances of loans and advances.
Moreover, we assessed the appropriateness and
presentation of disclosures against Bangladesh Bank
guidelines.
Annual Report 2021

10) IT systems and controls

Our audit procedures have been focused on IT We tested the design and operating effectiveness of the
systems and controls due to the pervasive nature bank’s IT access controls over the information systems
and complexity of the IT environment, the large that are critical to financial reporting.
volume of transactions processed in numerous We tested IT general controls (logical access, changes
locations daily and the reliance on automated and IT
management and aspects of IT operational controls). This
dependent manual controls. included testing that requests for access to systems were
We have focused on master data management, appropriately reviewed and authorized.
user access management and developer access We tested the Group’s periodic review of access rights.
to the production environment and changes to We also inspected requests of changes to systems for
the IT environment. Among others, these are key appropriate approval and authorization. We considered
to ensuring operating effectiveness of manual the control environment relating to various interfaces,
with automated control as well as fully automated configuration and other application layer controls
control systems. identified as key to our audit. Where deficiencies were
identified, we tested compensating controls or performed
alternate procedures.
In addition, we understood where relevant, changes were
made to the IT landscape during the audit period and
tested those changes that had a significant impact on
financial reporting.
11) Impact of COVID-19 on financial reporting
The effects of the COVID-19 pandemic have significant Detailed substantive tests were conducted in order to
global implications for economies, markets and mitigate the additional risks of material misstatements
businesses, including volatility and possible material due to the impact of COVID-19. Testing the Bank’s and
uncertainties. The operations of the Bank itself have Group’s ability to function as a going concern by reviewing
been affected due to the restrictions brought about profitability, liquidity and operations, we performed
by the COVID-19 pandemic. There is an increasing detailed analytical procedures on the financial statements
probability that assertions and estimates related to of the Bank, including but not limited to variance and
reporting may be materially impacted due to impact common size analysis of balances. We have evaluated
of financial market volatility, deteriorating credit or the appropriateness and sufficiency of the Management’s
liquidity concerns, government interventions, and explanations for the deviations amongst balances and ratios
disruptions in production and supply chain, among of current year to that of the comparative. We analyzed the
other matters. disclosures provided by the Bank to rationalize the impact
of COVID-19 on financial statements, and checked their
appropriateness and sufficiency. We also checked that all
COVID-19 impacts are accurately reflected in the financial
statements, and disclosed in their entirety of magnitude
to the financial statements as a whole; and scrutinize
that the impacts of events after the reporting period, and
ensure their true and fair reflection and disclosure in the
financial statements. Our testing did not identify any issues
with regards to impact of COVID-19 on financial reporting.
Moreover, the bank has maintained @2% Special General
Provision COVID-19 in addition to the general provision as
per Circular provided by Bangladesh Bank (Note# 13.01).
Other Matter do not express any form of assurance conclusion thereon.

The consolidated financial statements of the Group and In connection with our audit of the consolidated and separate
separate financial statements of the Bank for the year ended financial statements, our responsibility is to read the other
31 December 2020 were audited by ACNABIN Chartered information identified above when it becomes available
Accountants and expressed an unmodified opinion on those and, in doing so, consider whether the other information is
financial statements on 30 June 2021. materially inconsistent with the financial statements or our
Other information knowledge obtained in the audit or otherwise appears to be
materially misstated.
Management is responsible for the other information. The
other information comprises all of the information in the When we read the annual report, if we conclude that there
Annual Report other than the consolidated and separate is a material misstatement therein, we are required to
financial statements and our auditor’s report thereon. The communicate the matter to those charged with governance.
Annual Report is expected to be made available to us after Responsibilities of Management and Those Charged with
the date of this auditor’s report. Governance for the Consolidated and Separate Financial
Our opinion on the consolidated and separate financial Statements and Internal Controls
statements does not cover the other information and we Management is responsible for the preparation and fair
206
presentation of the consolidated financial statements of may cast significant doubt on the Group’s and the Bank’s
the Group and also separate financial statements of the ability to continue as a going concern. If we conclude
Bank in accordance with IFRSs as explained in note 2, and that a material uncertainty exists, we are required to draw
for such internal control as management determines is attention in our auditor’s report to the related disclosures
necessary to enable the preparation of consolidated and in the consolidated and separate financial statements or,
separate financial statements that are free from material if such disclosures are inadequate, to modify our opinion.
misstatement, whether due to fraud or error. The Bank Our conclusions are based on the audit evidence
Company Act, 1991 and the Bangladesh Bank Regulations obtained up to the date of our auditor’s report. However,
require the Management to ensure effective internal audit, future events or conditions may cause the Group and
internal control and risk management functions of the Bank. the Bank to cease to continue as a going concern.
The Management is also required to make a self-assessment z Evaluate the overall presentation, structure and content
on the effectiveness of anti-fraud internal controls and report of the consolidated and separate financial statements,
to Bangladesh Bank on instances of fraud and forgeries. including the disclosures, and whether the consolidated
In preparing the consolidated and separate financial and separate financial statements represent the
statements, management is responsible for assessing underlying transactions and events in a manner that
the Group’s and the Bank’s ability to continue as a going achieves fair presentation.
concern, disclosing, as applicable, matters related to going z Obtain sufficient appropriate audit evidence regarding
concern and using the going concern basis of accounting the financial information of the entities or business
unless management either intends to liquidate the Group activities within the Group to express an opinion on the
and the Bank or to cease operations, or has no realistic consolidated financial statements. We are responsible for
alternative but to do so. the direction, supervision and performance of the group
Those charged with governance are responsible for audit. We remain solely responsible for our audit opinion.
overseeing the Group’s and the Bank’s financial reporting We communicate with those charged with governance
process. regarding, among other matters, the planned scope and
Auditor’s Responsibilities for the Audit of the Consolidated timing of the audit and significant audit findings, including
and Separate Financial Statements any significant deficiencies in internal control that we identify
Our objectives are to obtain reasonable assurance about during our audit.
whether the consolidated and separate financial statements We also provide those charged with governance with a
as a whole are free from material misstatement, whether statement that we have complied with relevant ethical
due to fraud or error, and to issue an auditor’s report that requirements regarding independence, and to communicate
includes our opinion. Reasonable assurance is a high level with them all relationships and other matters that may
of assurance but is not a guarantee that an audit conducted reasonably be thought to bear on our independence, and
in accordance with ISAs will always detect a material where applicable, related safeguards.
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to From the matters communicated with those charged with
influence the economic decisions of users taken on the basis governance, we determine those matters that were of most
of these consolidated and separate financial statements. significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
As part of an audit in accordance with ISAs, we exercise describe these matters in our auditor’s report unless law or
professional judgment and maintain professional skepticism regulation precludes public disclosure about the matter or
throughout the audit. We also: when, in extremely rare circumstances, we determine that a
z Identify and assess the risks of material misstatement matter should not be communicated in our report because
of the consolidated and separate financial statements, the adverse consequences of doing so would reasonably be
whether due to fraud or error, design and perform audit expected to outweigh the public interest benefits of such
procedures responsive to those risks, and obtain audit communication.
evidence that is sufficient and appropriate to provide a Report on other Legal and Regulatory Requirements
basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for In accordance with the Companies Act, 1994, the Securities
one resulting from error, as fraud may involve collusion, and Exchange Rules 2020, the Bank Company Act, 1991
forgery, intentional omissions, misrepresentations, or the (amended to date) and the rules and regulations issued by
override of internal control. Bangladesh Bank, we also report that:
z Obtain an understanding of internal control relevant to z we have obtained all the information and explanations
the audit in order to design audit procedures that are which to the best of our knowledge and belief were
appropriate in the circumstances, but not for the purpose necessary for the purpose of our audit and made due
of expressing an opinion on effectiveness of the Group’s verification thereof;
internal control. z to the extent noted during the course of our audit
z Evaluate the appropriateness of accounting policies used work performed on the basis stated under the Auditor’s
and the reasonableness of accounting estimates and Responsibilities for the Audit of the Consolidated and
related disclosures made by management. Separate Financial Statements section in forming the
above opinion on the consolidated financial statements
z Conclude on the appropriateness of management’s use of the Group and the Separate Financial Statements of
of the going concern basis of accounting and, based the bank and considering the reports of the Management
on the audit evidence obtained, whether a material to Bangladesh Bank on anti-fraud internal controls and
uncertainty exists related to events or conditions that
Annual Report 2021

instances of fraud and forgeries as stated under the z the consolidated balance sheet and consolidated profit
management’s responsibility for the financial statements and loss account together with the annexed notes dealt
and internal control: with by the report are in agreement with the books of
(a) internal audit, internal control and risk account and returns;
management arrangements of the Group as z the expenditures incurred were for the purpose of the
disclosed in the financial statements appeared to Bank’s business for the year;
be materially adequate; z the consolidated financial statements of the Group and
(b) nothing has come to our attention regarding the Separate Financial Statements of the bank have been
material instances of forgery or irregularity or drawn up in conformity with prevailing rules, regulations
administrative error and exception or anything and accounting standards as well as related guidance,
detrimental committed by employees of the circulars issued by Bangladesh Bank;
Group and its related entities (other than matters z provision as required by Bangladesh Bank has been
disclosed in these financial statements); accounted for loans & advances, investments and other
(b) financial statements for the year ended 31 assets which are, in our opinion, doubtful of recovery;
December 2021 of three subsidiaries, namely z the information and explanations required by us have
Sonali Exchange Co. Inc. USA, Sonali Investment been received and found satisfactory;
Ltd. have been audited by United Financial CPA
P.C, Certified Public Accountants, Anil Salam z we have reviewed over 80% of the risk weighted assets
Idris & Co., Chartered Accountants respectively of the Bank covering 60 branches as well as Head Office
who have expressed unmodified audit opinion and spent over 6,237 person hours for the audit of the
and Sonali Bank (UK) Ltd. was remain unaudited. bank; and
The results of the subsidiaries have been z Capital to Risk-weighted Asset Ratio (CRAR) as required
properly reflected in the consolidated financial by Bangladesh Bank has been maintained during the
statements; year.
z in our opinion, proper books of account as required by
law have been kept by the Group and the Bank so far as
it appeared from our examination of those books;
z the records and statements submitted by the branches
have been properly maintained and consolidated in the
financial statements;
Signed for & on behalf of Signed for & on behalf of

Md Moniruzzaman FCA Dr. Jamshed S.A. Choudhury, FCA

Partner Senior Partner
ICAB Enrollment No. 787 ICAB Enrollment No. 363
DVC: 2205090787AS757848 DVC: 2205170363AS401037
Date: 28 April 2022
Place: Dhaka
208
Sonali Bank Limited and its Subsidiaries

Consolidated Balance Sheet
As at 31 December 2021
2021 2020
Particulars Notes
Taka Taka
PROPERTY AND ASSETS
Cash
Cash in Hand (Including Foreign Currencies) 7,85,65,37,591 7,42,89,96,911
Balance with Bangladesh Bank and its agent Bank(s) (Including 69,80,11,30,063 83,80,12,97,347
Foreign Currencies)
3.0 77,65,76,67,655 91,23,02,94,258
Balance with other Banks & Financial Institutions
In Bangladesh 28,67,36,56,597 40,68,03,82,215
Outside Bangladesh 9,93,57,45,481 11,89,39,27,285
4.0 38,60,94,02,078 52,57,43,09,500
Money at Call on Short Notice 5.00 9,26,70,59,326 9,03,13,00,000
Investments
Government 6,14,39,89,95,875 5,50,69,51,58,356
Others 71,45,15,80,633 79,92,09,06,731
6.0 6,85,85,05,76,508 6,30,61,60,65,087
Loans and Advances
Loans, Cash Credit, Overdrafts etc. 6,75,89,81,97,556 5,74,51,19,08,573
Bills Purchased and Discounted 28,37,87,82,999 13,43,75,89,499
7.0 7,04,27,69,80,555 5,87,94,94,98,072
Fixed Asset including Premises, Furniture and Fixture 8.0 34,01,39,39,878 33,89,25,36,141
Other Assets 9.0 1,64,79,77,75,477 1,87,11,48,67,441
Non-Banking Assets 10.00 - -
Total Assets 17,14,47,34,01,477 15,92,40,88,70,500
LIABILITIES AND CAPITAL
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 11.0 2,95,11,66,478 56,26,65,859
Deposits and Other Accounts
Current Accounts & Other Accounts etc. 2,31,07,48,41,683 2,42,81,95,48,854
Bills Payable 12,81,46,84,803 11,04,30,66,246
Savings Bank Deposits 5,28,62,00,42,413 4,51,47,10,60,424
Fixed Deposits 5,77,89,10,93,980 5,53,24,79,76,484
Other Deposits 9,75,05,675 1,18,88,727
12.0 13,50,49,81,68,555 12,58,59,35,40,735
Other Liabilities 13.0 2,80,01,69,28,802 2,47,64,47,21,131
Total Liabilities 16,33,46,62,63,835 15,06,80,09,27,726
Shareholders’ Equity
Paid-up Capital 14.00 45,30,00,00,000 45,30,00,00,000
Statutory Reserve 15.00 14,54,70,96,640 13,46,90,02,429
Other Reserve 16.00 26,18,88,441 16,57,13,816
Revaluation Reserve 17.00 24,08,26,04,301 36,32,84,64,917
Non-Controlling Interest 3,69,22,00,485 -
Surplus in Profit and Loss Account/Retained Earnings 18.00 (6,87,66,52,225) (9,65,52,38,388)
81,00,71,37,643 85,60,79,42,774
Total Liabilities and Shareholders’ Equity 17,14,47,34,01,477 15,92,40,88,70,500
Annual Report 2021


Consolidated Balance Sheet
2021 2020
Particulars Notes
Taka Taka
Off Balance Sheet Items
Contingent Liabilities
Acceptances and Endorsements
Letters of Guarantee 9,45,44,78,857 7,47,48,57,353
Irrevocable Letters of Credit 8,68,31,88,36,307 9,36,60,02,05,509
Bills for Collection 8,42,01,38,856 5,33,80,03,972
Other Contingent Liabilities - -
19.00 8,86,19,34,54,020 9,49,41,30,66,834
Other Commitments -
Documentary credits and short term trade related transactions - -
Forward asset purchased and forward deposit placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commit- - -
ments
Claim against the bank not acknowledged as debt - -
Litigation pending against Bank - -
Total Off Balance Sheet Items including Contingent Liabilities 8,86,19,34,54,020 9,49,41,30,66,834
Consolidated Net Asset Value (NAV) per share 178.82 188.98
The annexed notes from 1 to 48 form an integral part of these consolidated financial statements.
Subhash Chandra Das FCMA, FCA Md. Ataur Rahman Prodhan

CFO & General Manager CEO & Managing Director

Director Director

Chairman
This is the consolidated balance sheet referred to in our separate report of even date.

DVC: 2205090787AS757848 DVC: 2205170363AS401037
Date: 28 April 2022
Place: Dhaka
210

Consolidated Profit and Loss Account
For the year ended 31 December 2021
2021 2020
Particulars Notes
Taka Taka
Operating Income
Interest income 21.00 34,31,26,74,100 32,00,84,39,984
Interest paid on deposit and borrowing etc. 22.00 (43,69,70,85,916) (41,91,73,59,748)
Net Interest Income (9,38,44,11,816) (9,90,89,19,764)
Investment income 23.00 39,09,37,36,978 40,05,79,50,158
Commission, exchange and brokerage 24.00 13,38,93,44,647 12,48,85,34,651
Other operating income 25.00 49,25,31,100 55,08,52,048
52,97,56,12,725 53,09,73,36,857
Total Operating Income (A) 43,59,12,00,909 43,18,84,17,092
Operating Expenses
Salary and allowances 26.00 15,14,65,75,924 14,50,83,21,704
Rent, tax, insurance, electricity etc. 27.00 1,30,21,68,310 1,15,80,59,570
Legal expenses 28.00 14,91,39,354 3,67,68,592
Postage, stamps and telecommunication etc. 29.00 5,48,31,589 4,62,61,924
Printings, stationery, advertisements etc. 30.00 17,64,41,844 16,49,67,821
Chief Executive's salary and fees 31.00 1,43,77,350 1,41,64,947
Directors' fees 32.00 2,14,64,755 43,69,200
Auditors' fees 33.00 4,22,07,854 65,52,495
Depreciation & repair of bank's assets 34.00 82,66,68,845 79,54,06,035
Other expenses 35.00 4,53,33,76,080 4,82,12,92,878
Total Operating Expenses (B) 22,26,72,51,905 21,55,61,65,165
Profit Before Provision, Amortization and Taxes C=(A-B) 21,32,39,49,004 21,63,22,51,927
Provision for loans & advances 36.00 6,11,06,27,970 11,91,93,29,137
Provision for diminution in value of investment 37.00 (63,28,60,461) (88,42,16,807)
Other Provision 38.00 10,04,44,39,275 5,15,31,69,873
Total Provision (D) 15,52,22,06,784 16,18,82,82,202
Total Profit/(Loss) before Taxes E =(C-D) 5,80,17,42,221 5,44,39,69,725
Provision for Taxation (F) 1,99,57,86,945 2,12,31,35,049
Current tax 13.06 57,48,80,590 52,23,84,698
Deferred tax 9.08.01 1,42,09,06,356 1,60,07,50,351
Net Profit/(Loss) after Tax G=(E-F) 3,80,59,55,276 3,32,08,34,677
Annual Report 2021


Consolidated Profit and Loss Account
2021 2020
Particulars Notes
Taka Taka
Appropriation:
General Reserve - -
Reserve for CSR 16.02 5,00,00,000 5,00,00,000
Start-Up Fund 3,45,66,681 -
Reserve for Unwanted Risk arising from Vault - 1,50,00,000
1,16,26,60,892 1,13,34,29,913
Retained Surplus Carried Forward 2,64,32,94,384 2,18,74,04,764
Consolidated Earnings Per Share (EPS) 44.00 8.40 7.33


Director Director

Chairman
This is the consolidated Profit and loss account referred to in our separate report of even date.


DVC: 2205090787AS757848 DVC: 2205170363AS401037
Date: 28 April 2022
Place: Dhaka
212

Consolidated Cash Flow Statement
2021 2020
Particulars Notes
Taka Taka
A. Cash flows from operating activities

Interest received 71,82,15,64,040 71,83,99,30,963
Interest paid (43,19,00,98,066) (42,19,73,05,680)
Dividend Received 37,36,47,902 27,52,11,857
Fee and commission and exchange received 12,84,15,18,086 11,59,95,17,682
Recoveries of previously written-off loans & advances 1,33,61,00,000 52,63,92,195
Cash paid to employees (15,16,09,53,274) (14,57,92,74,291)
Cash paid to Suppliers (23,12,73,433) (22,00,73,367)
Income taxes paid (3,16,09,84,179) (2,87,62,58,168)
Cash received from other operating activities 39.00 49,25,31,100 55,08,52,048
Cash paid for other operating activities 40.00 (6,15,42,60,388) (6,10,32,34,240)
18,96,77,91,789 18,81,57,58,999
Changes in operating assets and liabilities
Loans & advances to customers (1,16,32,74,82,482) (34,82,10,51,546)
Other assets 41.00 24,48,00,95,484 (11,94,41,14,142)
Deposits from other banks 80,39,47,387 11,67,34,73,189
Deposits from customers 91,10,06,80,432 88,27,63,72,320
Other liabilities 42.00 15,76,81,32,447 (14,92,35,89,791)
15,82,53,73,269 38,26,10,90,031
Net cash flow from operating activities 34,79,31,65,057 57,07,68,49,030
B. Cash flows from investing activities
(Purchase)/Sale of securities & bond (63,58,00,45,472) (1,15,52,85,40,885)
(Purchase)/sale of fixed assets (89,36,36,703) (1,14,33,56,459)
Net cash used in investing activities (64,47,36,82,175) (1,16,67,18,97,344)
C. Cash flows from financing activities
Proceed from share issue - -
Payments for redemption of loan capital & debt security 2,38,85,00,619 (4,15,09,324)
Dividends paid - -
Net cash flow from/(used in) financing activities 2,38,85,00,619 (4,15,09,324)
D. Net decrease in cash and cash equivalents (A+B+C) (27,29,20,16,499) (59,63,65,57,638)
E. Cash and cash equivalents at beginning of the year 1,52,91,22,02,458 2,12,54,87,60,096
F. Cash and cash equivalents at end of the year 43.00 1,25,62,01,85,959 1,52,91,22,02,458


Director Director
Date: 28 April 2022 Chairman
Place: Dhaka
Annual Report 2021

Consolidated Statement of Changes in Equity
214
(Amount in Taka)
Non-
Asset
Statutory Other Revaluation of Controlling Retained
Particulars Paid up Capital Revaluation Total Equity
Reserve Reserve Investment Interest of SB Earnings
Reserve
(UK) Ltd.
Balance as at 01 January 2021 45,30,00,00,000 13,46,90,02,429 16,57,13,816 21,49,59,33,277 14,83,25,31,641 - (9,65,52,38,388) 85,60,79,42,774
Surplus/(deficit) on account of
revaluation of HTM, HFT and - - - - (12,24,58,60,616) - - (12,24,58,60,616)
Remeasured Securities (RMS)
Currency Conversion differences - - - - - (6,53,056) (6,53,056)

Net Profit for the Year (after
- - - - - - 3,80,59,55,276 3,80,59,55,276
appropriation)
Adjustment for Investment in SB (UK) Ltd. - - - - - - 13,67,59,936 13,67,59,936
Non-Controling Interest of SB (UK) Ltd.
- - - - - 3,69,22,00,485 - 3,69,22,00,485
During the year
Adjustment made for CSR during the year - - (4,89,51,126) - - - - (4,89,51,126)
Transferred to Reserve of SB (UK) Ltd. - - 9,51,25,751 - - - - 9,51,25,751
Transferred to Reserve for CSR - - 5,00,00,000 - - - (5,00,00,000) -
Transferred to Statutory Reserve - 1,07,80,94,211 - - - - (1,07,80,94,211) -
Transfer to Start-Up Fund - - - - - - (3,45,66,681) (3,45,66,681)
Transfer to Share Money of SECI - - - - - - (8,15,100) (8,15,100)
Balance as at 31 December 2021 45,30,00,00,000 14,54,70,96,640 26,18,88,441 21,49,59,33,277 2,58,66,71,025 3,69,22,00,485 (6,87,66,52,225) 81,00,71,37,643
Balance as at 31 December 2020 45,30,00,00,000 13,46,90,02,429 16,57,13,816 21,49,59,33,277 14,83,25,31,641 - (9,65,52,38,388) 85,60,79,42,774


Director Ziaul Hasan Siddiqui Director
Place: Dhaka
Sonali Bank Limited

Balance Sheet
2021 2020
Particulars Notes
Taka Taka
PROPERTY AND ASSETS
Cash
Cash in Hand (Including Foreign Currencies) 7,72,58,20,573 7,30,08,75,336
Balance with Bangladesh Bank and its agent Bank(s) (Including 69,80,11,30,063 83,80,12,97,347
Foreign Currencies)
3.00 77,52,69,50,637 91,10,21,72,683
In Bangladesh 28,67,36,56,263 40,68,03,81,895
Outside Bangladesh 9,38,15,44,650 11,62,84,26,724
4.00 38,05,52,00,913 52,30,88,08,619
Money at Call on Short Notice 5.00 8,66,30,00,000 9,03,13,00,000
Investments
Government 6,13,13,15,76,047 5,50,69,51,58,356
Others 74,93,31,40,621 78,98,66,80,661
6.00 6,88,06,47,16,668 6,29,68,18,39,017
Loans and Advances
Loans, Cash Credit, Overdrafts, etc. 6,76,73,76,56,645 5,72,79,51,30,205
Bills Purchased and Discounted 13,85,91,97,296 13,43,75,89,499
7.00 6,90,59,68,53,940 5,86,23,27,19,704
Fixed Asset including Premises, Furniture and Fixture 8.00 33,87,64,21,896 33,89,12,94,562
Other Assets 9.00 1,70,02,03,06,696 1,88,98,56,29,876
Total Assets 17,06,80,34,50,750 15,91,23,37,64,462
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 11.00 49,43,25,183 54,92,50,183
Deposit and Other Accounts
Current Accounts & Other Accounts etc. 2,31,39,25,46,360 2,43,01,22,72,784
Bills Payable 12,81,46,84,803 11,04,30,66,246
Savings Bank Deposits 5,28,62,00,42,413 4,51,47,10,60,424
Fixed Deposits 5,77,89,10,93,980 5,53,24,79,76,484
Other Deposits 9,75,05,675 1,18,88,727
12.00 13,50,81,58,73,232 12,58,78,62,64,665
Other Liabilities 13.00 2,78,75,03,57,410 2,46,28,26,44,415
Total Liabilities 16,30,06,05,55,824 15,05,61,81,59,263
Shareholders' Equity
Paid-up Capital 14.00 45,30,00,00,000 45,30,00,00,000
Other Reserve 16.00 16,67,62,690 16,57,13,816
Revaluation Reserve 17.00 24,08,26,04,301 36,32,84,64,917
Surplus in Profit and Loss Account/Retained Earnings 18.00 (7,35,35,68,706) (9,64,75,75,963)
76,74,28,94,925 85,61,56,05,199
Total Liabilities and Shareholders' Equity 17,06,80,34,50,750 15,91,23,37,64,462
Annual Report 2021

Sonali Bank Limited

Balance Sheet
2021 2020
Particulars Notes
Taka Taka
Off Balance Sheet Items
Letters of Guarantee 9,45,44,78,857 7,47,48,57,353
Irrevocable Letters of Credit 8,68,31,88,36,307 9,36,60,02,05,509
Bills for Collection 8,42,01,38,856 5,33,80,03,972
19.00 8,86,19,34,54,020 9,49,41,30,66,834
Other Commitments - -
Forward assets purchased and forward deposits placed - -
Undrawn formal standby facilities, credit lines and other - -
commitments
Total Off Balance Sheet items including contingent liabilities 8,86,19,34,54,020 9,49,41,30,66,834
Net Asset Value (NAV) per share 169.41 189.00
The annexed notes from 1 to 48 form an integral part of these financial statements.


Director Director

Chairman
This is the balance sheet referred to in our separate report of even date.


DVC: 2205090787AS757848 DVC: 2205170363AS401037
Date: 28 April 2022
Place: Dhaka
216
Sonali Bank Limited

Profit and Loss Account
2021 2020
Particulars Notes
Taka Taka
Operating Income
Interest income 21.00 33,74,44,84,441 31,95,96,09,482
Interest paid on deposit and borrowing etc. 22.00 (43,53,70,89,183) (41,90,66,06,914)
Net Interest Income (9,79,26,04,742) (9,94,69,97,432)
Investment income 23.00 38,69,27,31,319 39,99,64,29,147
Commission, exchange and brokerage 24.00 13,05,15,74,985 12,27,34,91,482
Other operating income 25.00 43,65,75,195 55,03,47,411
52,18,08,81,500 52,82,02,68,041
Total Operating Income (A) 42,38,82,76,758 42,87,32,70,609
Operating Expenses
Salary and allowances 26.00 14,82,28,23,616 14,42,41,70,475
Rent, tax, insurance, electricity etc. 27.00 1,23,18,85,570 1,11,00,83,183
Legal expenses 28.00 1,89,17,304 3,41,04,542
Postage, stamps and telecommunication etc. 29.00 4,76,23,595 4,11,50,365
Printings, stationery, advertisements etc. 30.00 16,76,83,896 15,91,06,918
Chief Executive's salary and fees 31.00 90,54,180 78,06,871
Directors' fees 32.00 50,99,600 36,17,900
Auditors' fees 33.00 46,16,980 42,81,195
Depreciation & repair to bank's assets 34.00 81,26,71,187 79,37,06,908
Other expenses 35.00 4,36,41,50,197 4,76,83,10,483
Total Operating Expenses (B) 21,48,45,26,125 21,34,63,38,841
Profit Before Provision, Amortization and Taxes C=(A-B) 20,90,37,50,633 21,52,69,31,768
Provision for loans & advances 36.00 6,10,67,00,767 11,91,93,29,137
Provision for diminution in value of investment 37.00 (63,28,60,461) (88,42,16,807)
Other provision 38.00 10,03,94,39,275 5,14,96,69,873
Total Provision (D) 15,51,32,79,580 16,18,47,82,202
Total Profit/(Loss) before Taxes E=(C-D) 5,39,04,71,053 5,34,21,49,566
Provision for Taxation (F) 1,93,38,02,904 2,10,78,00,124
Current tax 13.06 51,15,09,649 50,59,75,162
Deferred tax 9.08.01 1,42,22,93,255 1,60,18,24,962
Net Profit/(Loss) after Tax G=(E-F) 3,45,66,68,149 3,23,43,49,442
Annual Report 2021

Sonali Bank Limited

2021 2020
Particulars Notes
Taka Taka
Appropriations
General Reserve - -
Reserve for CSR 16.02 5,00,00,000 5,00,00,000
Start-Up Fund 3,45,66,681 -
Reserve for Unwanted Risk arising from Vault - 1,50,00,000
1,16,26,60,892 1,13,34,29,913
Retained Surplus Carried Forward 44.00 2,29,40,07,257 2,10,09,19,529
Earnings Per Share (EPS) 7.63 7.14


Director Director
Chairman
This is the consolidated balance sheet referred to in our separate report of even date.


DVC: 2205090787AS757848 DVC: 2205170363AS401037
Date: 28 April 2022

Place: Dhaka
218
Sonali Bank Limited

Cash Flow Statement
2021 2020
Particulars Notes
Taka Taka
Interest received 70,85,23,68,722 71,72,95,22,997
Interest paid (43,03,01,01,333) (42,18,64,96,393)
Dividend Received 37,36,47,902 27,52,11,857
Fee and commission and exchange received 12,43,33,34,331 11,38,44,74,513
Recoveries of previously written-off loan & advances 1,33,61,00,000 52,63,92,195
Cash paid to employees (14,89,80,67,100) (14,48,80,62,137)
Cash paid to Suppliers (19,49,15,289) (21,41,22,807)
Income taxes paid 39 (3,19,32,71,961) (2,89,49,62,346)
Cash Received from Other Operating Activities 40 43,65,75,195 55,03,47,411
Cash Paid for Other Operating Activities (5,71,75,84,792) (5,99,18,11,892)
Cash generated from operating activities 18,39,80,85,676 18,69,04,93,398
Increase/(decrease) in operating assets and liabilities
Loans & advances to customers 41 (1,04,36,41,34,236) (35,20,64,26,446)
Other assets 21,22,96,41,676 (11,84,57,10,106)
Deposits from other banks 80,39,47,387 11,67,34,73,189
Deposits from customers 42 91,22,56,61,179 88,32,50,10,179
Other liabilities 15,93,59,35,916 (15,14,49,81,417)
24,83,10,51,923 37,80,13,65,399
Net cash flow from operating activities 43,22,91,37,599 56,49,18,58,798
(Purchase)/Sale of securities & bond (70,61,79,31,193) (1,15,04,17,51,178)
(Purchase)/sale of fixed assets (74,36,52,958) (1,14,30,76,002)
Net cash used in investing activities (71,36,15,84,151) (1,16,18,48,27,180)
Payments for redemption of loan capital & debt security (5,49,25,000) (5,49,25,000)
Dividends paid - -
Net cash used in financing activities (5,49,25,000) (5,49,25,000)
D. Net decrease in cash and cash equivalents (A+B+C) (28,18,73,71,552) (59,74,78,93,382)
E. Cash and cash-equivalents at beginning of the year 43 1,52,51,85,80,002 2,12,26,64,73,384
F. Cash and cash-equivalents at end of the year 1,24,33,12,08,450 1,52,51,85,80,002


Director Director
Place: Dhaka
Annual Report 2021

Sonali Bank Limited
220
Statement of Changes in Equity
(Amount in Taka)
Statutory Other Asset Revaluation Revaluation of Retained

Particulars Paid up Capital Total Equity
Reserve Reserve Reserve Investment Earnings
Balance as at 01 January 2021 45,30,00,00,000 13,46,90,02,429 16,57,13,816 21,49,59,33,277 14,83,25,31,641 (9,64,75,75,963) 85,61,56,05,199
Surplus/deficit on account of revaluation of
HTM, HFT and Remeasured Securities (RMS) - - - - (12,24,58,60,616) - (12,24,58,60,616)
Net Profit for the Year(before appropriation) - - - - - 3,45,66,68,149 3,45,66,68,149

Adjustments made for CSR during the year - (4,89,51,126) - - - (4,89,51,126)
Transferred to Reserve for CSR - - 5,00,00,000 - - (5,00,00,000) -
Transferred to Statutory Reserve - 1,07,80,94,211 - - - (1,07,80,94,211) -
Transfer to Start-Up Fund - - - - - (3,45,66,681) (3,45,66,681)
Balance as at 31 December 2021 45,30,00,00,000 14,54,70,96,640 16,67,62,690 21,49,59,33,277 2,58,66,71,024 (7,35,35,68,706) 76,74,28,94,925
Balance as at 31 December 2020 45,30,00,00,000 13,46,90,02,429 16,57,13,816 21,49,59,33,277 14,83,25,31,641 (9,64,75,75,963) 85,61,56,05,199


Director Director
Chairman
Date: 28 April 2022

Place: Dhaka
Sonali Bank Limited
Liquidity Statement, Asset and Liabilities Maturity Analysis
(Amount in Taka)
Up to 01 month 1-3 months 3-12 months 1-5 years More than 5
Particulars Total
maturity maturity maturity maturity years maturity
Assets
Cash in hand 77,52,69,50,637 - - - - 77,52,69,50,637
Balance with other banks and financial institutions - 8,43,05,44,650 22,68,79,15,080 3,86,10,00,000 3,07,57,41,183 38,05,52,00,913
Money at call on short notice 8,66,30,00,000 - - - - 8,66,30,00,000
Investments 2,50,68,66,750 83,15,86,94,241 92,00,85,69,931 3,34,42,00,98,286 1,75,97,04,87,460 6,88,06,47,16,668
Loans and Advances 65,32,84,33,425 47,28,08,47,933 2,06,64,53,65,177 1,66,60,03,25,256 2,04,74,18,82,149 6,90,59,68,53,940
Fixed assets including premises, furniture and fixtures 9,77,21,612 28,99,81,055 86,48,56,097 5,94,35,40,900 26,68,03,22,232 33,87,64,21,896
Other assets 31,75,19,906 1,93,24,21,117 12,12,84,96,393 55,87,54,12,445 99,76,64,56,835 1,70,02,03,06,696
Non-banking assets - - - - - -
Total Assets 1,54,44,04,92,330 1,41,09,24,88,996 ,34,33,52,02,678 5,66,70,03,76,887 ,10,23,48,89,859 17,06,80,34,50,750
Liabilities
Borrowings from Bangladesh Bank, other banks
- - - - 49,43,25,183 49,43,25,183
financial institutions and agents
Deposits 6,34,40,58,65,254 1,13,21,08,80,081 4,03,65,50,52,902 1,01,47,40,44,309 98,07,00,30,685 13,50,81,58,73,232
Other accounts - - - - - -
Provision and other liabilities 8,22,44,143 90,23,39,958 18,87,83,20,900 67,42,28,79,917 1,91,46,45,72,492 2,78,75,03,57,410
Total Liabilities 6,34,48,81,09,397 1,14,11,32,20,039 4,22,53,33,73,801 1,68,89,69,24,226 2,90,02,89,28,361 16,30,06,05,55,824
Net Liquidity Gap (4,80,04,76,17,067) 26,97,92,68,956 (88,19,81,71,123) 3,97,80,34,52,662 2,20,20,59,61,498 76,74,28,94,925
Current and savings deposits do not have any contractual maturity and hence have been classified among all five maturities. Further, it has been assumed that on a going
concern basis, these deposits are not expected to fall below the current year’s level.


Director Ziaul Hasan Siddiqui Director
Annual Report 2021


Place: Dhaka
Sonali Bank Limited and its subsidiaries

Notes to the consolidated and separate financial statements
As at and for the year ended 31 December 2021
1.00 Corporate profile of the Bank and its activities

1.01 Legal status and nature of the reporting entity
Sonali Bank Limited, a state owned largest commercial Bank was incorporated in Bangladesh on 03 June
2007 as a public limited company under the Companies Act 1994 and governed by the Bank Company
Act 1991 (amended to date). Sonali Bank Limited took over the businesses, assets, liabilities, right, power,
privilege and obligation of erstwhile Sonali Bank (emerged as a Nationalized Commercial Bank in 1972),
pursuant to Bangladesh Bank Nationalization order 1972 (P.O. No. 26 of 1972) on a going concern basis
through a vendor agreement signed between the Ministry of Finance, People’s Republic of Bangladesh on
behalf of Sonali Bank and the Board of Directors on behalf of Sonali Bank Limited on 15 November 2007
with a retrospective effect from 1 July 2007. The Bank has 1,229 branches including two overseas branches
at Kolkata and Siliguri in India. The Bank has three 100% owned subsidiaries named Sonali Investment Limited
(SIL),Dhaka, Sonali Exchange Co. Inc. (SECI), USA and Sonali Bank (U.K) Limited. It has also one associate
named as Sonali Intellect Limited.
The registered office of Sonali Bank Limited is located at 35-42,44 Motijheel Commercial Area, Dhaka-1000
and the website address is www.sonalibank.com.bd
1.01.01 Principal Activities of the Bank
The principal activities of the bank are to vastly involved to provide a comprehensive range of financial
services:
a) personal and commercial banking, including accepting deposits, remittance, money transfer, foreign
exchange transaction, guarantee, commitments, trade and services, cash management, treasury, securities,
etc. to its customers.
b) Fund based services include short term & long term loans, Project wise industrial credit, discounting and
purchasing bills, consumers and staff loans, House & car loans etc.
c) The Bank also provides custodian services and perform Government treasury functioning as an agent of
the Bangladesh Bank as well through its 731 branches (including 58 chest and 8 sub chest branches).
1.01.02 Islamic Banking Window
Sonali Bank Limited has started banking business based on Islamic Shariah since 29 June 2010. The Islamic
Banking Windows are performing the banking activities through on-line banking through collection of
deposit and investment assistance. The bank operates Islamic Banking window in 58 (Fifty Eight) windows
designated in compliance with the rules of Islamic Shariah.
Separate financial statement of Islamic Banking Window has been drawn up in the report.
1.02 Subsidiaries of the Bank
Sonali Bank Limited has three 100% owned subsidiaries named Sonali Exchange Co. Inc. (SECI), USA, Sonali
Investment Limited (SIL),Dhaka, and Sonali Bank (U.K) Limited.
1.02.01 Sonali Exchange Co. Inc. (SECI), USA
A subsidiary company named Sonali Exchange Co. Inc. was incorporated on 4 April 1994 under the laws of
the State of New York, Department of State, licensed on 17 October 1994 by the State of New York Banking
Department and commenced operation as an International Money Remitter from 12 December 1994. The
Company is a wholly-owned subsidiary of Sonali Bank Limited, a fully state owned bank of Bangladesh,
which is also the Company’s ultimate holding company. The principal activities of the Company are to
carry on the remittance business and to undertake and participate in any or all transactions, activities and
operations commonly carried on or undertaken by remittance and exchange house.
1.02.02 Sonali Investment Limited (SIL), Dhaka
Sonali Investment Limited was registered under the Company Act 1994 as a Public Company Limited
by shares on 20 April 2010 and commenced its operation from 22 April 2010. The Company obtained
registration from Securities and Exchange Commission as a merchant bank on 28 October 2010. The
Company is a wholly-owned subsidiary of Sonali Bank Limited, a fully state owned bank of Bangladesh,
which is also the Company’s ultimate holding company. The principal activities of the company comprised
of merchant banking, portfolio management, issue management and underwriting and play active role in
the Capital Market of Bangladesh .
222
1.02.03 Sonali Bank (UK) Ltd.

A money remitting company under the name and style of Sonali Trade and Finance (U.K) Limited was
incorporated as an associate under the U.K. Companies Act 1985 on 30 June 1999. Subsequently the
company was allowed to commence its function as a bank from 7 December 2001 (the operational activities
started on 10 December 2001) by the Financial Services Authority of U.K. had changed its name as Sonali
Bank (U.K) Ltd. and restructured the ownership of the Company having 51% share capital in favor of the
Government of the People’s Republic of Bangladesh and remaining 49% by Sonali Bank Limited. It was
considered as subsidiary as per instraction of Bangladesh Bank from 2021.
1.02.04 Accounting Policies of Subsidiaries
The Financial Statements of two subsidiaries have been prepared with consideration and measurement of
all assets, liabilities, income and expenses as well as regularised under Group accounting policies as Parent
Company follows.
IFRS sets out the conditions under which an entity qualifies as a parent undertaking which should prepare
consolidated financial statements for its group-the parent and its subsidiaries. In general an investor that
controls an investee entity is its parent and should account for that entity as a subsidiary. The bank has
complied the applicable IFRS in preparing its separate and consolidated financial statements.
1.03 Associate
1.03.01 Sonali Intellect Limited
Sonali Intellect Limited (hereinafter referred to as the ‘’Company’’ of SIL) was incorporated in Bangladesh as
a private Limited company on 25 January 2012 under the Companies Act 1994. The Company commenced
its business operation on 01 February 2012.The principal activities of the Company are to customize,
enhance, modify, and implement Intellect CBS 10.0 Software in Banks. The Company also provides other
services like initiation, development and implementation of computer application systems, etc relevant to
the customer and any other business undertakings. The ownership of the Company having 51% share capital
in favor of Intellect Design Arena Limited, India, 35% by Sonali Bank Limited, 10% by Bangladesh Commerce
Bank Ltd and remaining 4% by Panthosoft Limited.
2.00 Basis of preparation and significant accounting policies
2.01 Basis of preparation
The consolidated financial statements of the Group and the financial statements of the Bank as at and for the
year ended 31 December 2021 have been prepared under the historical cost convention except investments
and in accordance with the “First Schedule” (section 38) of the Bank Company Act 1991 (Amended to date),
and Bangladesh Bank (the Central Bank of Bangladesh) through BRPD Circular no. 14 dated 25 June 2003,
other Bangladesh Bank Circulars, International Financial Reporting Standards (IFRSs), the Companies Act
1994, the Securities and Exchange Rules 2020 and other laws and rules applicable in Bangladesh. In case
any requirement of provisions and circulars issued by Bangladesh Bank differs with those of other regulatory
authorities, the provisions and circulars issued by Bangladesh Bank shall prevail.
2.02 Statement of Compliance
The financial statements have been prepared on a going concern basis following accrual basis of accounting
in accordance with the “First Schedule (Section 38) of the Bank Company Act 1991 (amended to date) and
BRPD circular no. 14 dated 25 June 2003, BRPD circular no. 15 dated 9 November 2009, other Bangladesh
Bank Circulars, International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs),
Financial Accounting Standards issued by the Accounting and Auditing Organization for Islamic Financial
Institutions, Bahrain etc. The Bank also complied with the requirement of the following regulatory and legal
authorities:
i) The Bank Company Act, 1991 (amended to date)
ii) The Companies Act, 1994
iii) Rules, regulations and circulars issued by the Bangladesh Bank from time to time
iv) Securities and Exchange Ordinance 1969
v) Securities and Exchange Commission Rules, 2020
vi) Income Tax Ordinance and Rules 1984
vii) The Value Added Tax & Supplementary Duty Act, 2012
viii) The Value Added Tax & Supplementary Duty Rules, 2016
ix) Bangladesh Labor Act, 2006 (amended 2013) and Labor Rules 2015
However, the Group and the Bank has departed from some requirements of IFRSs in order to comply with
the rules and regulations of Bangladesh Bank which are disclosed below:
Annual Report 2021

2.02.01 Investment in shares and securities

IFRS: As per requirements of IFRS 9 investments in shares and securities generally falls either under “at fair
value through profit and loss Account” or under “available for sale” where any change in the fair value (as
measured in accordance with IFRS 13) at the year-end is taken to profit and loss Account or revaluation
reserve account respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and
unquoted shares are revalued at the year end at market price and as per book value of last audited balance
sheet respectively. But as per DOS Circular no. 04, dated 24 November 2011, provision should be made for
any loss arising from diminution in value of investment; otherwise investments are recognised at cost.
2.02.02 Revaluation gain/loss on Government securities
IFRS: As per requirement of IFRS 9, T-bills and T-bonds fall under the category of held for trading” and
held to maturity” where any change in the fair value of held for trading is recognised in Profit and Loss
Account, and amortised cost method is applicable for held to maturity using an effective interest rate.
Bangladesh Bank: According to Department of Offsite Supervision (DOS) of Bangladesh Bank Circular
no. 5 dated 26 May 2008 and subsequent clarification in DOS Circular no. 5 dated 28 January 2009
of Bangladesh Bank, loss on revaluation of Government securities (Treasury Bill (T-bill)/ Treasury
Bond (T-bond)) which are categorised as held for trading should be charged through Statement of
Comprehensive Income (Profit and Loss Account), but any gain on such revaluation should be recorded
under Revaluation Reserve Account. However, at the year-end if there is any revaluation gain for
any particular held for trading T-bills/T-bonds; such gain can be used to the extent of any revaluation
loss for that particular held for trading T-bills/T-bonds. T-bills designated as held to maturity are
measured at amortized cost method but interest income / gain should be recognized through reserve.
2.02.03 Provision on loans and advances/investments

IFRS: As per IFRS 9 an entity should start the impairment assessment by considering whether objective
evidence of impairment exists for financial assets that are individually significant. For financial assets which
are not individually significant, the assessment can be performed on an individual or collective (portfolio)
basis.
Bangladesh Bank: As per BRPD Circular No. 14 (23 September 2012), BRPD circular No.19 (27 December
2012), BRPD circular No.05 ( 29 May 2013), BRPD Circular No. 8 (02 August 2015),BRPD Circular No.12 (20
August 2017), BRPD Circular No.15 ( 27 September 2017), BRPD Circular No. 01 (20 February 2018) and
BRPD Circular No. 56 (10 December 2020) a general provision at 0.25% to 5% under different categories
of unclassified loans (good/standard loans) has to be maintained regardless of objective evidence of
impairment. Also provision for sub-standard loans, doubtful loans and bad losses has to be provided at 20%,
50% and 100% respectively for loans and advances depending on the duration of overdue. Again as per
BRPD circular no.10 dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012, a general
provision at 1% is required to be provided for all off-balance sheet exposures provisions are also kept based
on circulars of Bangladesh Bank from time to time as required. Such provision policies are not specifically in
line with those prescribed by IFRS 9.
2.02.04 Recognition of interest in interest suspense account
IFRS: Loans and advances to customers are generally classified as ‘loans and receivables’ as per IFRS 9 and
interest income is recognized through effective interest rate method over the term of the loan. Once a loan
is impaired, interest income is recognized in profit and loss account on the same basis based on revised
carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest
on such loans are not allowed to be recognized as income, rather the corresponding amount needs to be
credited to interest suspense account, which is presented as liability in the balance sheet.
2.02.05 Other comprehensive income
IFRS: As per IAS 1, Other Comprehensive Income (OCI) is a component of financial statements or the
elements of Other Comprehensive Income (OCI) are to be included in a Single Comprehensive Income
(SCI) Statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be
followed by all banks. The templates of financial statements issued by Bangladesh Bank do not include
Other Comprehensive Income; and the elements of Other Comprehensive Income are also not allowed
to be included in a Single Comprehensive Income (SCI) Statement. As such the company does not prepare
the Other Comprehensive Income statement. However elements of SCI, if any, are shown in the elements
of the statement of changes in equity.
224
2.02.06 Financial instruments

In several cases Bangladesh Bank guidelines categories, recognize, measure and present financial instruments
differently from those prescribed in IFRS 9. As such full disclosure and presentation requirements of IFRS 7
and IAS 32 cannot be made in the financial statements.
2.02.07 REPO Transactions
IFRS: As per IFRS 9, when an entity sells a financial assets and simultaneously enters into an agreement
to repurchase the asset (or a similar asset) at a fixed price on a future date (REPO or stock lending), the
arrangement is accounted for as a deposit, and the underlying asset continues to be recognized in the
entity’s financial statements. This transaction will be treated as loan and the difference between selling price
and repurchase price will be treated as interest expenses.
Bangladesh Bank : As per BRPD guidelines, when a bank sells a financial asset and simultaneously enters
into an agreement to repurchase the assets (or a similar asset) at a fixed price on a future date (REPO or
stock lending), the arrangement is accounted for as a normal sales transactions and the financial assets are
derecognized in the seller’s book and recognized in the buyer’s book.
2.02.08 Financial guarantees
IFRS: As per IFRS 9, financial guarantees are contracts that require an entity to make specified payments
to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in
accordance with the terms of a debt instrument. Financial guarantee liabilities are recognized initially at
their fair value, and the initial fair value is amortized over the life of the financial guarantee. The financial
guarantee liability is subsequently carried at the higher of this amortized amount and the present value of
any expected payment when a payment under the guarantee has become probable. Financial guarantees
are included within other liabilities.
Bangladesh Bank: As per BRPD circular 14, dated 25 june 2003, financial guarantees such as letter of credit,
letter of guarantee will be treated as off-balance sheet items. No liability is recognized for the guarantee
except the cash margin.
2.02.09 Cash and cash equivalents
IFRS: Cash and cash equivalents items should be reported as cash item as per IAS 7.
Bangladesh Bank: As per BRPD circular 14, dated 25 june 2003, some cash and cash equivalent items such
as ‘money at call and on short notice’, Treasury bills, Prize bond are not shown as cash and cash equivalent.
Money at call and on short notice is shown as face item in balance sheet, and Treasury bills, Prize bonds are
shown in Investment.
2.02.10 Non-banking assets
IFRS: No indication of non banking assets is found in any IFRS.
Bangladesh Bank: As per BRPD Circular No. 14 dated 25 June 2003, there must exist a face item named
Non-banking asset.
2.02.11 Cash flow statement
IFRS: Cash flow statement can be prepared either in direct method or in indirect method. The presentation
is selected to present these cash flows in a manner that is most appropriate for the business or industry. The
method selected is applied consistently.
Bangladesh Bank: As per BRPD Circular No. 14 dated 25 June 2003, cash flow is a mixture of direct and
indirect methods.
2.02.12 Balance with Bangladesh Bank (CRR)
IFRS: Balance with Bangladesh Bank should be treated as other assets as it is not available for use in day to
day operations as per IAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
2.02.13 Presentation of intangible asset
IFRS: An intangible asset must be identified and recognized, and the disclosure must be given as per IAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD Circular No. 14 dated June 25, 2003.
2.02.14 Off balance sheet items
IFRS: There is no concept of off balance sheet items in any IFRS. But mostly the entity shall follow IAS 37
to recognise off balance sheet items.
Bangladesh Bank: As per BRPD Circular No. 14 dated June 25, 2003, off balance sheet items (e.g. Letter of
credit, Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
Annual Report 2021

2.02.15 Loans and advance net of provision

IFRS: Loans and advances should be presented net of provisions.
Bangladesh Bank: As per BRPD circular 14, dated 23 September 2012, provision on loans and advances are
presented separately as liability and cannot be netted off against loans and advances.
2.03 Basis of measurement
The financial statements of the Bank have been prepared on the historical cost basis except for the
following material items:
a) Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present value using mark
to market concept with gain crediting to revaluation reserve.
b) Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ and Re-measured
Government Treasury Bond at present value using amortization concept.
c) Investment in shares of listed companies.
d) Land and Buildings is recognized at the time of acquisition and subsequently measures at fair value as per
IAS 16 (Property, Plant and Equipment).
The accounting policies unless otherwise stated , have been consistently applied by the bank and are
consistent with those of the previous year.
2.04 Basis of consolidation
A separate set of records for consolidation of the statement of affairs and income and expenditure of the
branches are maintained at the Head Office of the Bank based on which these financial statements have
been prepared.
The consolidated financial statements comprise of the financial statements of Sonali Bank Limited, including
overseas branches Kolkata and Siliguri, Subsidiaries-Sonali Investment Limited (SIL) and Sonali Exchange Co.
Inc. (SECI), USA and Sonali Bank (U.K) Ltd as well as associate Sonali Intellect Ltd. as at 31 December 2021.
2.04.01 Subsidiaries
Subsidiaries are entities controlled by the group. In compliance with IFRS 10 “Consolidated Financial
Statements”, the financial statements of subsidiaries are included in the Consolidated Financial Statements
from the date that control commences until the date the control ceases.
2.04.02 Associates
In compliance with the requirement of IAS 28 “Investment in Associates and Joint Ventures”, the accounting
treatment regarding investment in associates have been addressed.
Conversion policy of Subsidiaries & Associate
The conversion policy of Sonali Exchange Co. Inc. and Sonali Bank (U.K) Ltd. is as follows:
Particulars Currency conversion rate SECI SB(U.K) Ltd.

For Assets & Liabilities Closing rate USD to BDT GBP to BDT
For income & Expenses Average rate USD to BDT GBP to BDT
2.04.03 Transactions eliminated on consolidation

Intra-group balances and transactions and any unrealized income and expenses arising from intra-group
transactions are eliminated in preparing the Consolidated Financial Statements. Unrealized gains arising
from transactions with equity accounted investees are eliminated against the investment to the extent of
the group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but
only to the extent there is no evidence of impairment.
2.05 Use of estimates and judgments
The preparation of the consolidated financial statements of the Group and the financial statements of the
Bank in conformity with Bangladesh Bank Circulars and IFRSs requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amount of
assets, liabilities, income and expenses. Actual result may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised and in any future period affected.
Information about significant areas of estimation uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognized in the consolidated financial
statements.
226
2.06 Changes in accounting estimate and errors

The effect of a change in an accounting estimate shall be recognized prospectively by including it in profit
or loss in:
(a) the period of the change, if the change affects that period only; or
(b) the period of the change and future periods, if the change affects both. To the extent that a change in
an accounting estimate gives rise to changes in assets and liabilities, or relates to an item of equity, it shall
be recognized by adjusting the carrying amount of the related asset, liability or equity item in the period of
the change. Material prior period errors shall be retrospectively corrected in the first financial statements
authorized for issue after their discovery by:
(i) restating the comparative amounts for the prior period(s) presented in which it is required to make proper
comparison; or
(ii) if the error occurred before the earliest prior period presented, restating the opening balances of assets,
liabilities and equity for the earliest prior period presented.
2.07 Books of account
The Company maintains its books of account for main business in electronic form through soft automation.
The accounts of Sonali Bank are generally kept on the double entry system the day book, the general ledger,
the cash book, the current account ledger, the deposit account ledger, the bill books etc.
2.08 Foreign currency transactions

2.08.01 Functional and presentational currency
Financial statements of the Bank are presented in Taka, which is the Bank’s functional and presentational
currency.
2.08.02 Foreign currency transactions
Foreign currency transactions are converted into equivalent Taka currency at the ruling exchange rates on
the respective dates of such transactions as per IAS 21 “The effects of Changes in Foreign Exchange Rates”.
Assets and liabilities in foreign currencies at 31 December 2021 have been converted into Taka currency
at the average of the prevailing buying and selling rates of the relevant foreign currencies at that date
except Balances with other Banks and Financial Institutions which have been converted as per directives of
Bangladesh Bank vide its circular no. BRPD(R) 717/2004-959 dated 21 November 2004.
2.08.03 Commitment
Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements
are translated at contracted rates. Contingent liabilities/commitments for letter of credit, letter of guarantee
and acceptance denominated in foreign currencies are expressed in Taka terms at the rates of exchange
ruling on the date of balance sheet.
2.08.04 Foreign operation
The assets & liabilities of foreign operations are translated to Bangladeshi Taka at exchange rate prevailing
at the statement of financial position (balance sheet) date. The income & expenses of foreign operations
are translated at average rate of exchange for the year. Foreign currency differences are recognized and
presented in the foreign currency translation reserve in equity. When a foreign operation is disposed of such
that control, the cumulative amount in the translation reserve related to that foreign operation is reclassified
to profit or loss as part of the gain or loss on disposal. When the Group disposes as the only part of its
interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of
the cumulative amount is reactivated to non-controlling interest.
2.08.05 Translation gain and losses
Gains or losses arising out of translation of foreign exchange have been included in the Profit and Loss
Accounts and in Balance Sheet.
2.09 Materiality, aggregation and offsetting
The Bank presents separately each material class of similar items and presents separately items of a dissimilar
nature or function unless those are immaterial. The Bank did not offset assets and liabilities or income and
expense, unless required or permitted by IFRS.
2.10 Cash Flow Statement
Cash Flow Statement is prepared principally in accordance as per the guidelines of BRPD Circular no.14 dated
25 June 2003 and International Accounting Standard-7 “Cash flow Statement”. The Cash Flow Statement
shows the structure of and changes in cash and cash equivalents during the year. Cash Flows during the
year have been classified as operating activities, investing activities and financing activities.
Annual Report 2021

2.11 Statement of Changes in Equity

The statement of changes in equity reflects information about increase or decrease in net assets or wealth.
Statement of changes in equity has been prepared in accordance with International Accounting Standards
IAS 1 “Presentation of Financial Statements” and relevant guidelines of Bangladesh Bank.
2.12 Branch Accounting
The Bank has 1229 branches including two overseas branches as on 31 December 2021. Accounts of the
branches are maintained at the branch level and for consolidation a separate set of records of the statement
of affairs and income and expenditure of the branches are compiled at the Head Office of the Bank based
on which these financial statements have been prepared.
2.13 Liquidity statement (Asset and Liability Maturity Analysis)
The liquidity statement has been prepared in accordance with remaining maturity grouping of Assets and
Liabilities as of the close of the year as per following basis;
Particulars Basis
Balance with other banks and financial Maturity term
institutions Maturity term
Investments Residual maturity term
residual maturity term
Loans and advances Repayment/Maturity schedule
Repayment/Maturity schedule
Fixed assets Useful lives
Other assets Adjustment
Borrowings from other banks and financial Repayment / Maturity schedule
institutions Repayment/Maturity schedule
Deposits and other accounts Maturity term and Behavioral past trend
Other long term liability Maturity term
Maturity term
Provisions and other liabilities Settlement
2.14 Events after the Reporting Period

Events after the reporting period that provide additional information about the Bank’s position at the balance
Sheet date are reflected in the financial statements in Note no. 48 as per International Accounting Standards
IAS 10 “Events after the Reporting Period”.
Impact of Covid 19 on financial reporting
The effects of the COVID-19 pandemic have significant global implications for economies, markets and
businesses, including volatility and possible material uncertainties. The operations of the Bank itself have
been affected due to the restrictions brought about by the COVID-19 pandemic by the government and
Bangladesh Bank. Various circulars and facilities were allowed to the borrower (s) of the Bank considering
the impact of COVID-19 in the operation of their business. There is an increasing probability that assertions
and estimates related to reporting may be materially impacted due to loan repayment and other flexibility
to borrowers as ordered by Bangladesh Bank, financial market volatility, deteriorating credit or liquidity
concerns, government interventions, and disruptions in production and supply chain, among other matters.
The Bank has assessed all the impact of COVID-19 and the instructions of regulators regarding COVID-19
and reflected the same in the financial statements.
2.15 Going Concern
The accompanying financial statements have been prepared on a going concern basis, which contemplates
the realization of assets and the satisfaction of liabilities in the normal course of business. The accompanying
financial statements do not include any adjustments should the bank be unable to continue as a going
concern.
2.16 Assets and the basis of their valuation
The accounting policy have been applied consistently to all periods presented in this consolidated financial
statements and those of the bank and have been applied consistently by the group entities except as explain
in Note 2.02.
228
2.16.01 Cash and cash equivalents

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh
Bank and highly liquid financial assets which are subject to insignificant risk of changes in their fair value, and
are used by the bank management for its short term commitments as well as prize bond.
2.16.02 Investments
All investments are initially recognized at cost, including acquisition charges associated with the investment.
Premiums are amortized and discount accredited, using the effective or historical yield method. Accounting
treatment of government treasury bills and bonds (categorized as HFT or/and HTM) is made following
Bangladesh Bank DOS circular letter no. 5 dated 26 May 2008 and as amended on 28 January 2009 and
DOS Circular letter no. dated 19 January 2012.
2.16.02.01 Held to Maturity (HTM)
Investments (financial instruments) which have fixed or determinable maturity date and the bank has no
intention to sell before their maturity date irrespective of changes in market prices or the bank’s financial
position or performance are grouped as held to maturity. Government Treasury Bills, Government Treasury
Bonds and other securities approved for statutory liquidity reserves have been classified as held to maturity
financial asset. These are measured at amortized cost at each year end by taking into account any discount
or premium in acquisition. Any increase or decrease in value of such investments is booked to equity.
2.16.02.02 Held for Trading (HFT)
The securities under this category are the securities acquired by the bank with the intention to trade by
taking advantages of short term price/interest movement and the securities those are classified as HFT
by the Bank held in excess of SLR (net of CRR) at a minimum level. Investments classified in this category
are principally for the purpose of selling or repurchasing on short trading or if designated as such by the
management. In this category, investments are measured in fair value and any change in the fair value i.e.
profit or loss on sale of securities in HFT category is recognized in the Profit and Loss Account.
Value of investments is stated as per the following bases:
Particulars Valuation Method

Government Securities:
Government Treasury Bills Present Value
Prize Bonds Cost Price
Bangladesh Bank Bills Cost price
Special Treasury Bonds Present Value
Reverse Repo Cost Price
Debentures of Govt. Corporations Cost price
Other Investments (Quoted Shares) Market Price
Other Investments ( Other than Quoted Shares) Cost Price
2.16.02.03 REPO and Reverse REPO

Since 01 September 2010 transactions of REPO and Reverse REPO are recorded based on DOS Circular
No. 6, dated 15 July 2010 of Bangladesh Bank. In case of REPO of both coupon and non-coupon
bearing (Treasury bill) security, Sonali Bank Limited adjusted the Revaluation Reserve Account for HFT
securities and stopped the weekly revaluation (if the revaluation date falls within the REPO period) of
the same security. For interest bearing security, SBL stopped the accrual of interest during REPO period.
2.16.02.04 Investment in Quoted and unquoted securities

Investments in equity instruments/shares that are not quoted in active market are not
measured at fair value due to absence of information required to measure in fair value reliably;
so these are presented at cost. The equity instruments that are quoted in active market are
measured at fair value. Details of quoted and unquoted shares are shown in Annexure - H
2.16.02.05 Derivative Investments

Derivatives are financial instruments that derive their value in response to changes in interest rates, financial
instrument prices, commodity prices, foreign exchange rates, credit risk and indices.
Derivatives are categorised as trading unless they are designated as hedging instruments.
Annual Report 2021

All derivatives are initially recognized and subsequently measured at fair Value, with all revaluation gains
recognised in the Income Statement ( except where cash flow or net investment hedging has been achieved,
in which case the effective portion of changes in fair value is recognized within other comprehensive
income).
2.16.02.06 Revaluation of investment
As per the DOS (BB) Circular letter no. 05 dated 26 May 2008 & subsequent amended circular no. 05 dated
28 January 2009, HFT (Held for Trading) securities are revalued on weekly basis and HTM (Held to Maturity)
securities are amortized on yearly basis. The HTM securities are also revalued if they are reclassified to HFT
category with the Board’s approval. Any gain or loss on revaluation of HTM securities is recognized in the
statement of changes in equity. Gain/(Loss) on revaluation of HFT securities is recognized in the profit and
loss account on weekly basis and gain on revaluation is transferred to statement of changes in equity on
monthly basis.
Initial Measurement after initial

Investment class Recording of changes
Recognition recognition
Govt. T-bills/bond(HFT) Cost Face value Loss to P & L, gain to Revaluation
Reserve through P & L
Govt. T-bills/ Cost Amortized cost Increase or decrease in value to
bond(HTM) equity
Debenture/Bond Face value Face value None
Investment in listed Cost Fair value Loss to P & L, gain to Revaluation
securities Reserve
Prize bond Cost Cost None
2.16.02.07 Investments in subsidiary

Investment in subsidiaries is accounted for under the cost method of accounting in the Banks financial
statements in accordance with International Accounting Standard (IAS) 27. Accordingly, investments in
subsidiaries are stated in the Banks balance sheet at cost, less impairment losses if any.
2.16.02.08 Statutory and Non-statutory Investment
Statutory Investments
Amount which is invested for maintaining statutory liquidity ratio according to MPD circular no. 02 dated 10
December 2013 and DOS circular no. 01, dated 19 January 2014 of Bangladesh Bank is treated as statutory
investment, these includes treasury bill, treasury bond, other govt. securities etc. Details of statutory
investment have been given in note -6.03.01
Non- Statutory Investments
All investment except statutory investment is treated as non-statutory investment such as debentures
corporate bond , ordinary share (quoted and unquoted), preference share etc. Details of non-statutory
investment have been given in note-6.03.02
2.16.02.09 Investments in associate
Investment in associate is accounted for in the books of financial statements of the Bank, in accordance
with the International Accounting Standard (IAS) 28 ‘Investments in Associates and Joint Ventures’.
2.16.02.10 Investment and related income
(a) Income on investments other than shares is accounted for on accrual basis concept; and
(b) Dividend income on investment in shares is accounted for in the year when right has been established.
2.16.03 Loans and advances and its provisions
Loans and advances are stated at gross amount. General Provisions on unclassified loans and Off-Balance
Sheet Items,specific provisions for classified loans and interest suspense account thereon are shown under
other liabilities. Provision is made on the basis of quarter end against classified loans and advances review
by the management and instruction contained in BRPD Circular no. 14 dated 23 September 2012, BRPD
circular no. 19 dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013, BRPD circular no. 08
dated 02 August 2015, BRPD circular no. 01 dated 20 February 2018 and BRPD circular no. 56 dated 10
December 2020 and other applicable circulars for the year 2021.
230
2.16.03.01 Interest on loans and advances

i) Interest is calculated on unclassified loans and advances and recognized as income during the year;
ii) Interest calculated on classified loans and advances as per Bangladesh Bank Circulars is kept in
interest suspense account and credited to income on realization;
iii) Interest is calculated on daily product basis but debited to the party’s loan account quarterly. No
interest is charged on loans and advances which are classified as bad and loss;
iv) Total balance of loans and advances as on 31 December 2021 includes bad/loss loan Taka 115,655.27
million on which the Bank did not accrue any interest because of deterioration of quality of loans and
advances determined by the management and on the basis of instructions contained in Bangladesh
Bank Circulars as mentioned in Note 2.16.03 of this financial statements; and
v) Interest suspense and penal interest, if any, calculated on classified loans and advances are taken into
income in the year of its receipt from the defaulting borrowers.
2.16.03.02 Provision for loans and advances
Provision for loans and advances are made on quarter basis as well as year-end review by management
following instructions contained in BRPD Circulars issued by Bangladesh Bank. General Provision on
unclassified loans and advances and specific provision on classified loans & advances are given below:
Rate of provision:
Consumer Financing
Loan to
Short term All other
Particulars SMEF BHs/ MBs/
agri- credit Other Than credit
HF LP SDs
HF & LP
Standard 1.0% 5% 1% 2% 0.3% 2% 1%

Unclassified
SMA 0% 5% 1% 2% 0.3% 2% *1%
SS 5% 20% 20% 20% 20% 20% 20%
Classified DF 5% 50% 50% 50% 50% 50% 50%
BL 100% 100% 100% 100% 100% 100% 100%
*In line with BRPD Circular no. 04, dated 29 January 2015, provision for restructured loan is calculated @ 2%,
as per BRPD Circular no. 56, dated 10 December 2020 the special general provision is @ 2%.
2.16.03.03 Presentation of loans and advances

Loans and advances are shown at gross amount as assets while interest suspense and loan loss provision
against classified advances are shown as liabilities in the statement of financial position.
2.16.03.04 Write off loans and advances
Loans and advances/investments are written off as per guidelines of Bangladesh Bank. These written
off however will not undermine/affect the claim amount against the borrower. Detailed memorandum
records for all such written off accounts are meticulously maintained and followed up.
2.16.03.05 Securities against Loan
Project loan: Land and building are taken as security in the form of mortgage and plant & machinery
are taken in the form of hypothecation. Working capital and trading loan: Goods are taken as security
in the form of pledge and also goods are taken as security in the form of hypothecation along with
land and building as mortgage (value not less than 1.50 times covering the loan amount) in the form of
collateral security. House building loan: Land and building are taken as security in the form of mortgage.
Overdraft: FDRs are taken in pledge. The balance in DPS/JBSPS/SDPS A/C’s is taken in “lien”. Public sector
loan: In most cases Govt. Guarantee is taken and no security is taken for government loan and Crops
loans in agriculture sector.
2.16.04 Bills Purchased and Discounted
a) Bills purchased and discounted do not include Government Treasury bills and have been classified into two
sub-heads viz
i) Payable outside Bangladesh,
ii) Payable in Bangladesh and
b) The bills purchased and discounted have been analyzed in the form/terms as per the maturity grouping.
Annual Report 2021

2.16.05 Property, Plant and Equity

2.16.05.01 Recognition and Measurement
All Property, plant and equipment are classified and grouped on the basis of their nature as required in IAS
1 “Presentation of Financial Statements”. The major categories of Property, plant and equipment held by
the bank are property (Premises & Buildings), Library Book, Furniture and fixtures, Electrical Installations,
Typewriters and Calculating machines, Computer/Software, Motor Car and other vehicles. As per Para 31
of IAS 16 after recognition as an asset, an item of property, plant and equipment whose fair value can be
measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less
any subsequent accumulated depreciation and subsequent accumulated impairment losses.
All Fixed Assets are stated at cost less accumulated depreciation as per IAS 16 “Property, Plant & Equipment”.
The Cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing
the assets to its working condition for its intended use inclusive of inward freight, duties and non-refundable
taxes.
The bank recognizes in the carrying amount of an item of property plant and equipment’s the cost of
replacing part of such an item when that cost is incurred if it is probable that the future economic benefits
embodied with the item will flow to the bank and the cost of the item can be measured reliably. Expenditure
incurred after the assets have been put into operation, such as repairs and maintenance is normally charged
off as revenue expenditure in the period in which it is incurred.
As guided in paragraph 30 of IAS 16 “Property Plant and Equipment” these are capitalized at cost of acquisition
and subsequently stated at cost less accumulated depreciation. The cost of acquisition of an asset comprises
its purchase price and directly attributable cost of bringing the assets to its working condition for its intended
use inclusive of inward fright, duties and refundable taxes. The opening and closing carrying amounts of
all property and equipment are presented including the amount of additions, disposals and depreciation
charged during the year as required by paragraph 73 of IAS 16. Repairs and Maintenance expenses that does
not increase in the future economic benefit of assets is charged to profit & loss account.
2.16.05.02 Depreciation
As required of IAS 16 “Property Plant and Equipment” depreciation has been charged at the following rates
on reducing balance method on all fixed assets other than motor vehicles and computer software which
are depreciated on straight line basis and no depreciation on land is charged.
Category of fixed assets Rate of depreciation

Land 0%
Building 2.5%
Library 7%
Furniture and Fixtures 10%
Electrical Installation 20%
Typewriters and Calculating machines 20%
Computer/ Software 20%
Motor Car and other vehicles 20%
2.16.05.03 Disposal of fixed assets

On the disposal of fixed assets, the cost and accumulated depreciation are eliminated from the fixed assets
schedule and gains or losses on such disposal are reflected in the statement of comprehensive income
(profit and loss account) as per provision of IAS 16 “Property, Plant and Equipment”.
2.16.05.04 Revaluation
The fixed assets of the Bank have been revalued three times. In the year of 2007, following the instruction
of vendor’s agreement signed between Sonali Bank Ltd. and Ministry of Finance, revaluation of all assets
had been done and total value enhanced by Taka 8,833.82 million. Subsequently, in 2011 revalued by Taka
12,026.80 million and lastly in the year 2013 by Taka 9,469.13 million. No revaluation has been made during
the year 2021.
2.16.05.05 Impairment
The carrying amount of the assets should be reduced to its recoverable amount when carrying amount
of an asset is exceeding the recoverable amount of that asset. That reduction is an impairment loss hence
recognized as expenses in the statement of comprehensive income (profit and loss account).
232
2.16.06 Other Assets

Other assets comprise investment in subsidiaries (Sonali Exchange Co. Inc. (SECI), USA and Sonali Investment
Limited, Prepaid Expenses, Branch adjustment, fees and unrealised income receivable, advance for operating
and capital expenditure and stocks of stationery and stamp. Details are shown in Note-9. and others as per
Bangladesh Bank Circulars. Receivables are recognized when there is a contractual right to receive cash or
another financial asset from another entity.
2.16.06.01 Classification of other assets
Other assets have been classified as per BRPD Circular no. 14 dated 25 June 2003 of Bangladesh Bank
and for items not covered under the circular, classification have been made considering their realize ability.
2.16.06.02 Written off of other assets
Other assets having no realistic prospect of recovery have been written off against full provision without
reducing the claimed amount of the Bank. Notional balances against other assets written off have been kept
to maintain the detailed memorandum records for such accounts/assets.
2.16.07 Intangibles assets
An intangible asset is recognized only when its cost can be measured reliably and it is probable that the
expected future economic benefits that are attributable to it will flow to the Bank. Intangible assets acquired
separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is their fair value as at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives
of intangible assets are assessed to be either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life. The amortization period
and the amortization method for an intangible asset with a finite useful life are reviewed at least at
each financial year end. Changes in the expected useful life or the expected pattern of consumption of
future economic benefits embodied in the asset are accounted for by changing the amortization period
or method, as appropriate, and they are treated as changes in accounting estimates. The amortization
expense on intangible assets with finite lives is presented as a separate line item in the statement of
comprehensive income (profit and loss account). Amortization is calculated using the straight-line
method to write down the cost of intangible assets to their residual values over their estimated useful
lives. Intangible assets-valuation adjustment has been addressed inline with regulatory decision.
2.16.08 Non-banking assets

Non-banking assets includes the assets acquired against the bad debt loans to adjust the loan. There are no
assets acquired in exchange for loan during the period of financial statements.
2.17 Liabilities and Provision
2.17.01 Borrowing from other banks, financial institutions and agents
Borrowings from other banks, financial institutions and agents include borrowing from Bangladesh Bank,
inside and outside of Bangladesh. These items are brought to financial statements at the gross value of the
outstanding balance. Details are shown in Note 11.
2.17.02 Deposits and Other Accounts
Deposits and other accounts include non-interest-bearing current deposit redeemable at call, interest
bearing on demand and short-term deposits, savings deposit and fixed deposit. These items are brought to
account at the gross value of the outstanding balances. Deposits and other accounts include bills payable
have been analyzed in terms of the maturity grouping showing separately other deposits and inter-bank
deposits. Details are shown in Note 12.
2.17.03 Other liabilities
Other liabilities comprise items such as provision for loans and advances/investments/other assets, taxation,
superannuation fund, gratuity fund and off balance sheet exposure and also includes interest payable,
interest suspense, accrued expenses etc.Other liabilities are recognized in the balance sheet according to
the guidelines of Bangladesh Bank, Income Tax Ordinance 1984, IAS 37 and internal policy of the Bank.
Details are shown in Note 13.
2.17.04 Taxation
Income tax represents the sum of the current tax and deferred tax payable. Income tax assessment has been
finalized up to 1995 as well as the year 1999. Case pending for the year 1996 to1998 and 2000 to 2020.
Annual Report 2021

2.17.04.01 Current tax

The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in
the Profit and Loss Account because it excludes items of income or expense that are taxable or deductible.
The Bank’s liability for current tax is calculated using tax rates that have been enacted or substantively
enacted by the date of Balance Sheet.
Provision for current income tax has been made as per Income Tax Ordinance and Rules 1984.
2.17.04.02 Deferred tax
Deferred tax is calculated on the taxable/deductible temporary differences between tax base and carrying
value of assets and liabilities as required by International Accounting Standards IAS-12: ‘Income Taxes’.
Deferred tax is not recognised for the following temporary differences:
z on the initial recognition of assets or liabilities in a transaction that is not a business combination and
at the time of transactions, affects neither accounting nor taxable profit or loss; and
z arising on the initial recognition of goodwill.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
against current tax assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a
net basis or their tax assets and liabilities will be realized simultaneously. Deferred tax is computed at the
prevailing tax rate as per Finance Act 2021.
A deferred tax asset is recognized for deductible temporary differences to the extent that it is probable that
future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realized.
2.17.05 Employee benefit schemes
Accounting recognition & measurement, as well as the disclosures requirements for different benefit
schemes for employees are the following:
2.17.05.01 Employees General Provident Fund
Employees General Provident fund is operated from 13 September 1981 under which the concerned
employees are required to contribute at least 10% and highest 25% (on declaration) of their basic salary with
no matching contribution by the bank. This Fund relates to the employees who are availing Pension and
Death-Cum-Retirement Benefit (PDCRB) Scheme.
2.17.05.02 Contributory Provident Fund
The bank operated a Provident Fund named as Contributory Provident Fund into which the bank contributed
10% of the basic salary of its eligible employees while the employees contributed an equal amount to the
fund. This fund is operated by trustees. Employees enjoying contributory provident fund facilities are entitled
gratuity for 2 months last basic pay drawn for each completed year of service subject to completion of
minimum 10 years of service. The scheme is operated on cash basis.
2.17.05.03 Pension and Death-Cum-Retirement Benefit (PDCRB) Scheme
The bank operated a Pension Fund named as Pension and Death-Cum-Retirement Benefit (PDCRB) Scheme
for the employees of General Provident Fund into which the bank contributes 25% of the basic salary (Each
year of June) of its eligible employees. Payments out of this fund are made to the employees on their
separation from bank’s service.
2.17.05.04 Gratuity
The Bank introduced the Gratuity scheme for the member of the Employees of Contributory Provident
Fund into which the Bank contributes 10% of the basic salary (Each year of June) of its eligible employees.
Payments out of this scheme are made to the members on their separation from bank’s service.
2.17.05.05 Investment of the Pension/Gratuity Funds
The balance of Pension/Gratuity funds are partly invested in approved securities with a view to increasing
the Fund and remaining balance being utilized by the bank towards payment of retirement benefits to the
employees.
2.17.05.06 Administration of the Fund

The Provident Fund, Pension Fund and Gratuity are being administered by two administrative committees
each of which consists of 9 (nine) members representing Chairman, 5 (five) members from Board of
Directors, CEO & Managing Director , 1 (one) member from officers and another from members of the staff.
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2.17.05.07 Benevolent Fund

This fund is mainly created for sanctioning scholarship to the meritorious students among the children of
the Bank employees. The distressed employees and family member of deceased employees are also helped
from this Fund.
2.17.05.08 Leave encashment
The Officer/Staff who has opted for Pension and General Provident Fund, will be entitled to leave
encashment facilities up to twelve months at the time of retirement as per letter No. MF/FD/Reg-2/
leave16/84/9 dated 21 January 1985 of Finance Division, Ministry of Finance, Government of Bangladesh.
But if a staff (not officer) has enjoyed /will enjoy leave encashment facilities before retirement, he
will be provided with the rest amount after deduction of the amount enjoyed earlier, as per letter No.
MF/B & 1/Banking/2/1/80/101 dated 31 May 1980 of previous Banking & Investment Division, Ministry
of Finance, and Government of Bangladesh. The leave encashment benefit is paid to the incumbent
debiting ‘Expenditure A/C Leave Encashment Code no. 1217’. No additional fund is required during the year.
2.17.05.09 Death relief grant scheme

The Bank operates a death relief scheme since 1 January 1991, which replaced the previous group insurance
scheme. The scheme is applicable to all employees of the bank and payments out of this fund are made to
the successors of the employees on their death as per rate prescribed in the scheme.
2.17.06 Provision for Loans and Advances
Loans and advances are stated at gross amount. General provisions on unclassified loans and contingent
assets, specific provisions for classified loans and interest suspense account thereon are shown under other
liabilities. Provision against classified loans and advances is made on the basis of quarter and review by the
management and instructions contained in BRPD Circular no. 14 dated 23 September 2012, BRPD circular
no. 19 dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013, BRPD circular no. 8 dated 02
August 2015, BRPD Circular no. 1 dated 20 February 2018 and BRPD Circular no. 56 dated 10 December
2020 and other applicable circulars for the year 2021.
2.17.07 Provision for other assets
As per BRPD circular no. 14 dated 25 June 2003 of Bangladesh Bank classification and classification have
been made.
2.17.08 Other Provisions and accrued expenses
In compliance with IAS 37, Provisions and accrued expenses are recognized in the financial statements
when the bank has a legal or constructive obligation as a result of past event, it is probable that an outflow
of economic benefit will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation.
2.17.09 Provision for Off-Balance Sheet Exposures
In compliance with Bangladesh Bank guidelines Off-Balance Sheet items have been disclose under
contingent liabilities. As per BRPD Circular no.10 dated 18 September 2007, Banks are required to maintain
provision @ 1% against Off-Balance Sheet Exposures (L/C, Guarantee and Bills for Collection, etc.).
2.17.10 Provision for Nostro Accounts
According to guideline of Foreign Exchange Policy Department of Bangladesh Bank, Circular no.
FEOD(FEMO)/01/2005-677 dated 13 September 2005, Bank maintains provision regarding the un-reconciled
debit balance as at Balance Sheet date since there was no debit entries more than three months.
2.18 Capital and Shareholders’ Equity
2.18.01 Capital Management
The bank has strategic capital management process for measuring, deploying and monitoring its available capital
and assessing its adequacy. The aim of this capital management process is to achieve four major objectives; exceed
regulatory thresholds and meet long-term internal capital targets, maintain strong credit rating, manage capital
levels commensurate with the risk profile of the bank and provide the banks shareholder with acceptable returns.
Capital is managed in accordance with the board approved capital management planning from time to
time. Senior management develops the capital strategy and oversees the capital management planning of
the bank. The bank’s finance and risk management department are key to implementing the bank’s capital
strategy and managing capital. Capital is managed using both regulatory control measure and internal matrix.
Annual Report 2021

2.18.02 Paid up capital

The paid up capital share capital represents total amount of shareholder capital that has been paid in full
by the Government of Bangladesh i.e. ordinary shareholder. In the event of winding-up of the company
ordinary shareholder(s) rank after all other shareholders and creditors are fully entitled to any residual
proceeds of liquidation.
2.18.03 Statutory reserve
As per the Bank Company Act 1991 (Amended to date) (Section 24) it is required for the bank to transfer 20%
of its current year’s profit before tax to reserve until such reserve equals to its paid up capital.
2.18.04 Dividends on ordinary shares
Dividends on ordinary shares are recognized as a liability and deducted from equity when they are approved
by the Banks shareholders. Dividends for the year that are approved after the reporting date are disclosed as
an event after the reporting date.
2.18.05 Revaluation Reserve
2.18.05.01 Assets Revaluation Reserve
When an asset’s carrying amount is increased as a result of a revaluation, the increase amount should be
credited directly to equity under the heading of revaluation surplus/ reserve as per International Accounting
Standards IAS-16: ‘Property, Plant and Equipment’. The tax effects on revaluation gain are measured and
recognized in the financial statements as per International Accounting Standards IAS-12: ‘Income Taxes’.
2.18.05.02 Revaluation Reserve for HTM & HFT
All HTM securities are amortized at the year end and any increase or decrease of such investment is booked
to equity. In case of HFT revaluation, decrease in the present value is recognized in the profit and loss
account and any increase is booked to Revaluation Reserve Account through Profit and Loss Account as per
Bangladesh Bank DOS circular no. 5, dated 28 January 2009.
2.18.06 Contingent liabilities and Contingent assets
A contingent liability is any possible obligation that arises form the past events and the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Bank; or any present obligation that arises from past events but is not
recognized because:
z it is not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; or
z the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognized but disclosed in the financial statements unless the possibility
of an outflow of resources embodying economic benefits is reliably estimated. Contingent assets are
not recognized in the financial statements as this may result in the recognition of income which may
never be realized.
2.19 Revenue recognition
The revenue during the year has been recognized following all conditions of revenue recognitions as
prescribed by International Financial Reporting Standards IFRS 15 ‘Revenue from Contracts with Customers’.
2.19.01 Interest income
Interest on loans and advances is calculated on daily product basis and accrued at the end of each month,
but charged to customers’ accounts on quarterly basis. In terms of the provisions of the Bangladesh
Financial Reporting Standards IFRS 15 ‘Revenue from Contracts with Customers’, the interest income is
recognized on accrual basis. Interest on unclassified loans and advances have been accounted for as
income on accrual basis, interest on classified loans and advances have been credited to interest suspense
account with actual receipt of interest there-from having credited to income as and when received as per
instruction of Bangladesh Bank.
2.19.02 Investment income
Income on investments is recognized on accrual basis. Investment income includes discount on treasury
bills, interest on treasury bonds and fixed deposit with other banks. Capital gain on investments in shares is
also included in investment income. Capital gain is recognized when it is realized.
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2.19.03 Fees and commission income

z Commission charged to customers on letters of credit and letters of guarantee are credited to
income at the time of effecting the transactions.
z Fee and Commission on bills discounted, purchased & others are recognized at the time of
realization.
z Exchange gains or losses arising out of such transactions are recognized as income or expense for
the year foreign currency transactions are converted into BDT at prevailing on the dates of such
transactions and dealt with exchange account.
2.19.04 Dividend income on shares
Dividend income from shares is recognized during the period in which they are declared and actually
received.
2.19.05 Other operating Income
Other operating income is recognized at accrual basis.
2.19.06 Profit/Loss of Overseas Branches
Profit/loss of the bank’s overseas branches has been reflected in this profit and loss account.
2.19.07 Interest paid on Deposit and Borrowing
Interest paid on Deposit and Borrowing and others expenses are recognized as accrual basis.
2.19.08 Management and other expenses
Expenses incurred by the Bank are recognized on actual and accrual basis.
2.19.09 Regulatory & Legal Compliance
The bank has complied with the requirement of following regulatory & legal authority:
(a) The Bank Company Act, 1991 (Amended to date)
(b) The Companies Act, 1994
(c) Rules, Regulation and Directives issued by Bangladesh Bank
(d) Securities & Exchange Rules, 2020
(e) Securities & Exchange Ordinance, 1969
(f) The Income-Tax Ordiance and Rules ,1984
(g) The Value Added Tax & Supplementary Duty Act, 2012
(h) The Value Added Tax & Supplementary Duty Rules, 2016
(i)Bangladesh Labor Act, 2006 (Amended 2013) and Bangladesh Labor Rule, 2015
2.19.10 Reconciliation of inter-bank and inter-branch account
Accounts with regard to inter bank (in Bangladesh and outside Bangladesh) are reconciled regularly and
there are no material differences that may affect the financial statements significantly.
2.19.11 Segment reporting
For the purpose of Segment Reporting as per International Financial Reporting Standard 8, the following
segments relating to revenue, expenses, assets and liabilities have been identified and shown in the related
notes accordingly as primary/secondary segments.
i) domestic operations in line with geographical segments;
ii) banking operations comprising of branches of the banking entity; and
iii) treasury operations comprising of the banking entity.
Performance is measured based on segment profit before provision, as included in the internal
management reports that are reviewed by the Bank’s Management. Segment report is used to measure
performance as Management believes that such information is the most relevant in evaluating the results
of certain segments relative to other entities that operate within these industries.
2.19.11.01 Operating segments
The Bank has five reportable segments, as described below, which are the Bank’s strategic business units.
The strategic business units offer different products and services, and are managed separately based on
the Bank’s management and internal reporting structure. For each of the strategic business units, the Bank
Management Committee reviews internal management reports on at least a quarterly basis. The following
summary describes the operations in each of the Bank’s reportable segments:
Annual Report 2021

i. Loans & Advances Includes loans, deposits and other transactions and balances with corporate
customers & retail customers.
ii. Treasury Undertakes the Bank’s funding and maintenance of CRR and SLR, Asset-liability
management through borrowings and placement, currency swap and investing
in liquid assets such as short-term placements and corporate and government
debt securities.
iii. Overseas Branches Two (02) overseas branches of Sonali Bank Limited are situated at Kolkata &
(Kolkata, Siliguri) Siliguri in India and operating banking business, money remittance etc. as per
the head office instructions and other activities as permitted under the banking
law of India.
iv. Sonali Exchange Sonali Exchange Company Incorporated (SECI), USA, subsidiary company of
Company Incorporated Sonali Bank Limited operates its business in USA. It performs the activities of
(SECI), USA money remittance, issue cheques, payment instruments and traveler’s cheque
and other activities as permitted under the banking law of USA.
v. Sonali Investments Established to do all kinds of merchant banking activities including issue
Limited management, underwriting, portfolio management and other transactions.
2.19.12 Directors’ responsibility on financial statements

The board of directors takes the responsibility for the preparation and presentation of these financial
statements.
2.20 Consolidation of the Financial Statements
Consolidation of the Financial Statements is started from 2011.
2.21 Risk Management
The Bank Company Act, 1991 (Amended to date) and the Bangladesh Bank Regulations require the
Management to ensure effective internal audit, internal control and risk management functions of the Bank.
The Management is also required to make a self-assessment on the effectiveness of anti-fraud internal
controls and report to Bangladesh Bank on instances of fraud and forgeries.
Bangladesh Bank Department of Off-site Supervision (DOS) has issued Circular no. 02 dated 15 February
2012 on Risk Management Guidelines for Banks and instructed all scheduled banks operating in Bangladesh
to follow this Guidelines for managing various risks which have been compiled by the Bank.
In addition, the Bank is also following relevant Bangladesh Bank guidelines on risk based
capital adequacy, stress testing and managing the banking risks in other core risk areas.
The Bank has established a Risk Management Division (RMD). The RMD conducts stress testing for examining
the Bank’s capacity of handling future shocks, as well as deals with all potential risks that might occur in
future.
Being a financial institution, in the ordinary course of business, the bank is sensitive to verities of risks. The
generic severity of such risk(s) is much intense in our locality due to presence of large number of banks
and complex financial transactions. In such highly competitive environment to ensure a bank’s consistent
system and performance, the presence of strong Risk Management culture is obligatory. Being compliant,
the bank is now looking forward to take risk management practice to a different level, i.e. preventing risk
before occurrence rather than a reactive manner; on a proactive basis. As a part of regulatory and global
benchmarking the bank has based upon 07 (seven) core risks guidelines of Bangladesh Bank and Basel
framework. Listed below are the identified risks the bank is currently managing or intents to manage:
z Internal Control and Compliance Risk
z Foreign Exchange Risk
z Credit Risk Management
z Asset Liability Management Risk
z Money Laundering Risk
z Information & Communication Technology Security Risk
z Environmental Risk
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Accordingly the bank has various high powered committees to monitor and ensure smooth risk management
activities. For example, Board Risk Management Committee, high powered central Risk Management
Committee, Departmental Risk Management Committee, Asset Liability Management Committee (ALCO),
Investment Committee, Credit Committee (CC) etc. To manage the overall risks of the bank in line of Basel
the bank has formed a dedicated Core Risk Management & Basel-II Implementation Division. The detail of
SBL’s risk management is stated below:
a) Internal Control and Compliance Risk
Establishment of sound control environment and effective compliance culture is the key stone of managing
operational risk. Internal control is a process to control overall activities of the Bank through establishing
policies, procedures, observance of instructions of regulatory authorities with a view to avoid any possible
loss from the lack of corporate governance.
To mitigate the operational risk, the Bank ensured effective internal control systems for all of its operational
activities by intensifying the internal audit function, comprehensive and risk based inspection in all branches
and Head Office. The Compliance Division ensures the settlement of objections or irregularities mentioned
in the audit reports under a strong monitoring process of the Management Committee (MANCOM). Besides
there is a division named Vigilance and Control Division under the direct supervision of CEO and MD to act
at any sudden occurrence of loss or irregularities.
The Bank with the support of an Expert Team, has undertaken a program for upgrading its Internal Control
and Compliance policy as well as other policies in the area of credit, audit, information technology and
accounts as per international best practices.
b) Foreign Exchange Risk Management
Foreign Exchange Risk is defined as the possibility of losses due to change in exchange rates interest rate
etc. according to market forces. The Foreign Exchange Risk of the Bank is minimal as all the transactions are
carried out on behalf of the customers against underlying Foreign Exchange transactions.
Treasury Division independently conducts the transactions and the Back Office of Treasury is responsible
for verification of the deals and passing of their entries in the books of account. Mid office coordinates the
work in between front office and back office functioning. All foreign exchange transactions are revalued
at Mark-to-Market rate as determined by Bangladesh Bank at the month -end. All NOSTRO accounts are
reconciled on regular basis and outstanding entries beyond 30 days are reviewed by the Management for
their settlement.
c) Credit Risk Management
Credit risk is one of the crucial risk faced by the Bank. This can be described as potential loss arising from the
failure of a counter party (borrower) to perform as per contractual agreement with the Bank. The failure may
result from unwillingness of the counter party or decline in his/her financial condition. Therefore, Bank’s credit
risk management activities have been designed to address all these issues. The Bank has segregated duties
of the Officers/Executives involved in credit related activities. Credit approval, administration, monitoring
and recovery functions have been segregated. For this purpose, three separate divisions have been formed.
These are credit division, credit monitoring & recovery division and law division. Credit division is entrusted
with the duties of maintaining asset quality, assessing risk in lending to a particular customer, sanctioning
credit, formulating policy/strategy for lending operation, etc.
There is a high power credit committee who manages the credit risk of the bank. A thorough assessment
is done before sanction of any credit facility at credit division. The risk assessment includes borrower risk
analysis, financial analysis, industry analysis, historical performance of the customer, security of the proposed
credit facility, etc. All credit proposals have been placed in credit committee for sanction or make decline.
Managing Director is the Chairman of credit committee. Loans having big exposures are placed before the
Board of Directors of the Bank for sanction.
In determining single borrower/large loan limit, the instructions of Bangladesh Bank are strictly followed.
Internal audit is conducted on periodical interval to ensure compliance of Bank’s and Regulatory policies.
Loans are classified as per Bangladesh Bank’s guidelines.
d) Asset Liability Management Risk
Bank has high powered Asset Liability Management Committee (ALCO) to monitor Balance Sheet Risk and
liquidity Risks of the Bank. The Balance Sheet Risk is determined as potential change in earnings due to
change in rate of interest foreign exchange rates and regulatory instructions, which are not of trading nature.
Asset Liability Committee (ALCO) reviews Liquidity requirement of the Bank, the maturity of assets and
liabilities, deposits and lending, pricing strategy and the Liquidity contingency plan. The primary objective
of the Asset Liability Committee (ALCO) is to monitor and avert significant volatility in Net Interest Income
(NII), investment value and exchange earnings for the purpose of taking future action plan for better interest
of the organization.
Annual Report 2021

e) Money Laundering Risk

Risk Associates with probable Money laundering activities is one of the major risk in the area of banking
sector. Money Laundering risk is defined as the loss of reputation and expenses incurred as penalty for
being negligent in prevention of money laundering. For mitigating the risk the Bank has designated Chief
Compliance Officer at Head Office and Compliance Officer at Branches, who independently review the
transactions of the accounts to verify suspicious transactions.
Manuals for Prevention of Money Laundering, KYC and Transaction profile have been introduced. Training
has been being imparted to Executives, Officers and staff for developing awareness and skill for identifying
suspicious transactions and other Money Laundering related activities.
f) Information & Communication Technology Security Risk
IT Guideline is a systematic approach to policies required to be formulated for IT and also to ensure security
of information and information systems. This guideline covers all information that is electronically generated,
received, stored, printed, scanned and typed. The provisions of this guideline apply to:
1. Sonali Bank Limited for all of its IT system.
2. All activities and operations required ensuring data security including facility design, physical security,
network security, disaster recovery and business continuity planning, use of hardware and software, data
disposal and protection of copy rights and other intellectual properly rights.
The implementation of Core Banking Solution (CBS) will be linked from the branches to the central database.
Near future the information will be easily accessible by senior management and is expected to be important
source of information of strategic decision-making process based on a comprehensive database. It is to be
declared that the Bank is fully compliant according to the guideline of Central Bank’s IT policy.
g) Environmental Risk
Environmental Risk is the new concern in the banking arena. Bank authority is very much aware about
this. In compliance with Bangladesh Bank’s instructions and guidelines regarding environmental risk, all the
activities of the bank are being carried on. Specially, to approve the credit proposal, Bank Credit Committee
meticulously review the compliance status of the borrower regarding environmental requirement.
2.22 Risk Management Committee Disclosure
A Risk Management Committee, comprising Directors of the Board has been formed in consistence with
Bank Company Act 1991 (Amended to date) and directives of BRPD Circular No.11 dated 27.10.2013 of
Bangladesh Bank. Bank’s risk management approach includes minimizing undue concentrations of
exposure, limiting potential losses from stress events and ensuring the continued adequacy of all our
financial resources. The committee is playing a vital role in risk management of the bank. It has a long term
plan to develop risk management culture in the bank.
The risk management committee comprising of four members including chairman who are competent and
professionally skilled and also the director of the board. The name and status of the member of the Board
Risk Management Committee are stated as follows:
Name Status in the Bank Status in the committee

Mr. Ishtiaque Ahmed Chowdhury Director Chairman
Mr. A.B.M Ruhul Azad Director Member
Mrs. Dr. Daulatunnaher Khanam Director Member
Mr. Md. Mofazzal Husain Director Member
Professor Dr. Mohammad Kaykobad Director Member
The risk management committee of the Board of Directors has been formed soon after the Central Bank’s
instruction. The committee conducted 07 meetings in 2021 where the following issues have been discussed:
z Formulated risk management strategies, methodologies, guidelines and processes for risk
identification, risk assessment, risk controlling and monitoring.
z Designed a suitable organization structure for risk controlling. The committee will form separate
risk management committee in management level and supervise their activities for compliance of
instruction regarding credit risk, foreign exchange risk, internal control and compliance risk, money
laundering risk, ICT risk and environmental risk.
z Reviewed and updated all risk management policies and guidelines at least once in a year, if necessary
they will propose and place before the Board of Director for final approval.
z Evaluated, assessed and approved the record keeping and reporting system formulated by the bank
management.
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z Supervised the implementation of overall risk management policies and steps taken for mitigation of
credit risk, market risk and operational risk along with other risks.
z Submitted the report of decision and recommendation made by the committee to the Board on a
quarterly basis.
z Followed the instruction circulated by the controlling authority, etc.
2.23 Audit committee Disclosure
In compliance with the policy directives as well as compliance with the BRPD Circular No. 11 dated 27
October 2013 and previous circular BRPD Circular no. 12 dated 23 December 2002 of Bangladesh Bank, an
audit committee of the board of Sonali Bank Limited was constituted by the Board of Directors in its 615th
meeting held on 15 March 1999 and thereafter lastly reconstituted in the 746th board meeting of Sonali Bank
Limited held on 09 November 2021. The audit committee comprises of four members including chairman
who are competent and professionally skilled and also the director of the board. The company secretary
acts as a secretary of the audit committee. The name and status of the member of the audit committee
are stated as follows:
Sl. No. Name Status in the Bank Status in the committee

3 Mrs. Dr. Daulatunnaher Khanam Director Member
z During the year 2021, the Audit Committee of the Board conducted 11 (Eleven) meetings in 2021
which the following important issues were reviewed/discussed along with others:
z Oversee the financial reporting process & liquidity position of the bank at regular basis.
z Reviewed internal & external auditors findings on the irregularities both major & significance at
different branches of the bank and reference those to the Board with appropriate recommendation
for decision, reviewed draft & audited financial statements for the year 2020.
z Reviewed performance of internal audit 2021.
Reviewed the reconciliation performance of inter branch transaction accounts and advised the
management to keep it regular.
z Reviewed the comprehensive inspection report on SBL by Bangladesh bank as on 31.12.2020.
z Reviewed the cash holding position of different branches & advise the management to ensure
maintenance of optimum level of cash to reduce idle cash in hand as per as practicable.
z Reviewed existing policy of ICC, Risk Grading, Credit Policy, Quarterly Risk Management Paper etc.
and made recommendation to Board for approval.
z Reviewed unaudited quarterly & half yearly financial statements of the bank for the year 2021.
z Monitor internal control risk management process.
z Discussed and reviewed annual budget 2021 & revised budget 2020 and recommended to the board
with some amendments.
z Reviewed the compliance status of audit objections and advised the management to ensure full
compliance of regulatory, legal and significant issues meticulously.
z Reviewed the audit rating by internal audit on Anti Money Laundering of all branches for the year
2020.
z Discuss and reviewed the effectiveness of annual audit plan 2021 and made recommendation to the
board for approval with suggested amendments.
z Reviewed existing risk management procedures along with implementation of core risk management
guidelines and advised the managements to implement the same more effectively.
z Reviewed the audit report of the subsidiaries and directing the authority to take necessary action as
appropriate.
2.24 Credit Rating of the Bank
As per the BRPD circular no. 6 dated 5 July 2006, the Bank has done its credit rating by Emerging Credit
Rating Limited based on the financial statements of Sonali Bank Limited dated 31 December 2020. The
following ratings had been awarded:
Date of
Valid till Rating Mode Long Term Short Term Outlook
Declaration
Govt. Support AAA ST-1
27-Oct-21 26-Oct-22 Stable
Without Govt. Support A+ ST-2
Annual Report 2021

2.25 Implementation of BASEL-III

Banks operating in Bangladesh are maintaining capital since 1996 on the basis of risk weighted assets in line
with the Basel Committee on Banking Supervision (BCBS) capital framework published in 1988. Considering
present complexity and diversity in the banking industry and to make the Bank’s capital more risk-sensitive
as well as to improve the banking sector’s ability to absorb shocks arising from financial and economic
stress, Bangladesh Bank provides revised regulatory capital framework “Risk Based Capital Adequacy for
Banks” which is effective from 1 January 2009. Both the existing capital requirement rules on the basis of
Risk Weighted Assets and revised Risk Based Capital Adequacy Framework for Banks as per Basel-II were
followed simultaneously initially for one year. For the purpose of statutory compliance during the period of
parallel run i.e. 2009, the computation of capital adequacy requirement under existing rules prevailed. On the
other hand, revised Risk Based Capital Adequacy Framework as per Basel-II had been practiced by the Banks
during 2009 so that Basel-II recommendation could effectively be adopted from 2010. From January 2010,
Risk Based Capital Adequacy Framework as per Basel-II have been fully practiced by the Banks replacing
the previous rules under Basel-I. Bangladesh Bank adopted “Guidelines on Risk Based Capital Adequacy
(Revised Regulatory Capital Framework for Banks in line with Basel-III)” as per BRPD circular no. 18 dated
21 December 2014 replaced of “Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital
Framework for Banks in line with Basel-II)”. This circular shall come into force with effect from January 01,
2015. These new global regulatory and supervisory standards mainly addressed the following areas:
1. Pillar-1 :
a) Minimum Capital Requirement (MCR);
b) Assessment of total Regulatory Capital;
c) Calculation of total Risk Weighted Assets;
d) Calculation of Capital to Risk Weighted Assets Ratio (CRAR);
e) Raise the quality and level of capital to ensure banks are better able to absorb losses on both a going
concern and a gone concern basis;
f) Increase the risk coverage of the capital framework;
g) Introduce Leverage Ratio (LR) to serve as a backstop to the risk-based capital measure;
h) Calculation of Liquidity Coverage Ratio (LCR) and
i) Calculation of Net Stable Funding Ratio (NSFR).
2. Pillar-2 :
a) Raise the standards for the supervisory review process ; and the main aspects of a rigorous SRP are as
follows :
z Board and senior management oversight,
z Sound capital assessment,
z Comprehensive assessment of risks,
z Monitoring and reporting,
z Internal control review.
b) Preparation of ICAAP (Internal Capital Adequacy Assessment Process) documents for assessing its overall
risk profile and a strategy for maintaining adequate capital.
c) SRP – SREP dialogue.
3. Pillar-3 :
a) Market Discipline/Public disclosures etc.
The macro prudential aspects of Basel-III are largely enshrined in the capital buffers. Both the buffers i.e. the
capital conservation buffer and the countercyclical buffer are intended to protect the banking sector from
periods of excess credit growth.
i) Capital to Risk Weighted Assets Ratio (CRAR)*
The Capital Adequacy Ratio (CAR) has been newly defined as Capital to Risk Weighted Asset Ratio (CRAR)
which is calculated by taking eligible regulatory capital as numerator and total RWA as denominator.
Total Eligible Capital
CRAR =
Credit RWA+Market RWA+Operational RWA
ii) Leverage Ratio*
In order to avoid building-up excessive on and off-balance sheet leverage in the banking system, a simple,
transparent, non-risk based leverage ratio has been introduced. The leverage ratio is intended to achieve the
following objectives:
a) Constrain the build-up of leverage in the banking sector which can damage the broader financial system
and the economy.
242
b) Reinforce the risk based requirements with an easy to understand and a non-risk based measure.
A minimum Tier 1 leverage ratio of 3% is being prescribed both at solo and consolidated level.
The banks will maintain leverage ratio on quarterly basis. The calculation at the end of each calendar quarter
will be submitted to BB showing the average of the month end leverage ratios based on the following
definition of capital and total exposure.
Tier 1 Capital (after related deductions)
LR =
Total Exposure (after related deductions)
iii) Liquidity Coverage Ratio (LCR)*
LCR or Liquidity Coverage Ratio is a new liquidity standard introduced by the Basel Committee. This standard
is built on the methodologies of traditional liquidity coverage ratio used by banks to assess exposure to
contingent liquidity events. LCR aims to ensure that a bank maintains an adequate level of unencumbered,
high-quality liquid assets that can be converted into cash to meet its liquidity needs for 30 calendar days.
LCR goes beyond measuring the need for liquid assets over the next 30 days in a normal environment. It
measures the need for liquid assets in a stressed environment, in which deposits and other sources of funds
(both unsecured and secured) run off, to various extents, and unused credit facilities are also drawn down
in various magnitudes. These runoffs are in addition to contractual outflows.
Stock of quality liquid assets
LCR= ≥ 100%
Total net cash outflows over the next 30 calendar days
iv) Net Stable Funding Ratio (NSFR)*
NSFR or Net Stable Funding Ratio is another new standard introduced by the Basel Committee. The NSFR
aims to limit over-reliance on short-term wholesale funding during times of abundant market liquidity
and encourage better assessment of liquidity risk across all on off-balance sheet items. The minimum
acceptable value of this ratio is 100 percent, indicating that available stable funding (ASF) should be at least
equal to required stable funding (RSF). ASF consists of various kinds of liabilities and capital with percentage
weights attached given their perceived stability. RSF consists of assets and off-balance sheet items, also
with percentage weights attached given the degree to which they are illiquid or “long-term” and therefore
requires stable funding. The time horizon of the NSFR is one year. Like the LCR, the NSFR calculations
assume a stressed environment.
Available amount of stable funding (ASF)
NSFR= ≥ 100%
Required amount of stable funding (RSF)
The calculation of the NSFR requires two quantities to be defined :
A. available stable funding (ASF) and
B. required stable funding (RSF).
NSFR is met if ASF exceeds RSF, that is if ASF/RSF > 1 or 100%.
2.26 Related party disclosures
As per International Accounting Standards IAS-24 ‘Related Party Disclosures’, parties are considered to be
related if one of the parties has the ability to control the other party or exercise significant influence over
the other party in making financial and operating decisions. The company carried out transactions in the
ordinary course of business on an arm’s length basis at commercial rates with its related parties. Related
party disclosures have been given in Note 46 and 47.
2.27 Litigation
The bank is not a party to any lawsuits except those arising in the normal course of business, which were
filled against the default clients for non-performance in loans repayment and against various level of tax
authority regarding some disputed tax issue. The bank, however, provides adequate provisions as per
guidelines of IAS 37 incompliance with Bangladesh Bank guidelines.
2.28 Loan Write off
Write off describes a reduction in recognized value. It refers to recognition of the reduced or zero value of
an asset. Generally, it refers to loan for which a return on the loan is now impossible or unlikely. The item’s
potential return is thus cancelled and removed from (Written off) the banks statement of financial position.
Recovery against debts written off / provided for is credited to provision or revenue considering the previous
position of the loans.
Annual Report 2021

2.29 Compliance of International Accounting Standards (IASs) and International Financial Reporting Standards
(IFRSs)
The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of International
Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). While preparing the
financial statements, Sonali Bank Limited applied most of IASs and IFRSs as adopted by ICAB. Details are
given below:
IASs/IFRSs
Name of the IASs/IFRSs Status
No.
Presentation of Financial Statements 1 Applied*
Inventories 2 Applied
Statement of Cash Flows 7 Applied
Accounting policies, Changes in accounting Estimates and Errors 8 Applied
Events after the Reporting Period 10 Applied
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Employees Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government 20 N/A
Assistance
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Applied
Separate Financial Statements 27 Applied
Investment in Associates & joint venture 28 Applied
Earning Per Share 33 Applied
Interim Financial Reporting 34 Applied*
Impairment of Assets 36 Applied
Provision, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Investment Property 40 N/A
Agriculture 41 N/A
First-time Adoption of Bangladesh Financial Reporting Standards 1 Applied
Share-Based Payment 2 N/A
Business Combinations 3 Applied
Insurance Contracts 4 N/A
Non-Current Assets Held for Sale and Discontinued Operations 5 N/A
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instrument: Disclosures 7 Applied*
Operating Segments 8 Applied
Financial Instruments 9 Applied*
Consolidated Financial Statements 10 Applied
Joint Arrangements 11 N/A
Disclosure of Interests in Other Entities 12 Applied
Fair Value Measurements 13 Applied
Regulatory Deferral Accounts 14 N/A
Revenue from Contracts with Customers 15 Applied
Leases 16 Applied
* Subject to departure described in Note 2.02 Statement of Compliance
244
2.29.01 IFRS 16: Leases

IFRS 16, Lease is effective for the annual reporting periods beginning on or after 1 January 2019. IFRS 16
defines that a contract is (or contains) a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. IFRS 16 significantly changes how a
lessee accounts for operating leases. Under previous IAS 17, an entity would rent an office building or branch
premises for several years with such a rental agreement being classified as the operating lease would have
been considered as a balance sheet item. However, IFRS 16 does not require a lease classification test and
hence all leases shall be accounted for as on balance sheet item (except some limited exception i.e. short-
term lease, leases for low-value items).
Under IFRS 16, an entity shall be recognizing a right-of-use (ROU) asset (i.e. the right to use the ‘office
building, branches, service center, call center, warehouse, etc.) and a corresponding lease liability. The asset
and the liability are initially measured at the present value of unavoidable lease payments. The depreciation
of the leased asset (ROU) and the interest on the lease liability is recognized in the profit or loss account over
the lease term replacing the previous heading ‘lease rent expenses’.
The Management is continuously assessing the recognition criteria of the components of IFRS 16 in its
financial statements covering the area of operations including the fixed assets and if found appropriate other
than the recognized area, will immediately be recognized as per the scope of IFRS 16- Leases accordingly.
2.30 Corporate Social Responsibility (CSR)
Bank authority is very much concern about responsibility to the society people. With industrialization, the
impacts of business on society and the environment assumed an entirely new dimension. For this Corporate
Social Responsibility has become a criterion of socially lawful business Endeavour and the acceptance of it,
is growing day by day. Countries of developed economy have taken the idea of ‘’Social Responsibility’’. Being
the largest state owned commercial bank in Bangladesh, Sonali Bank Ltd. has also realized its responsibilities
to the society and contributed to the amelioration of the social life of the destitute people, infra-structure,
environment etc. within the framework of Bangladesh Bank guidelines.
2.31 Off-balance sheet items
Under general banking transactions, liabilities against acceptance, endorsements, and other obligations and
bills against which acceptance has been given and claims exists there against, have been shown as off
balance sheet items.
Off Balance Sheet items have been disclosed under contingent liabilities and other commitments as per
As per BRPD circular no. 14, date 23 Sep 2012, 1% provision should be maintained against off- balance sheet
items except the criteria mention in the BRPD circular no 01, date 03 January 2018. Bank has maintained
sufficient provision in the books of accounts against off balance sheet exposure.
2.32 Fraud and Forgeries
2.32.01 Fraud Prevention Process
Based on DOS circular letter no. 17, dated 7 November 2012 issued by Bangladesh Bank, the following areas
for self assessment of Anti-Fraud Internal Controls are addressed by the Bank:
z Internal Control and Compliance (ICC);
z General Banking and Operation (GBO);
z Loans and Advances (LA); and
z Information and Communications Technology (ICT)
z General Banking and Operation (GBO);
z Loans and Advances (LA); and
z Information and Communications Technology (ICT)
In addition to the above self assessment, the following process followed by the management:
i) Additional security devices are incorporated, not only within the bank premises but also in the instruments
given to their numerous clients.
ii) In recruiting key personnel who are to handle certain sensitive operations, it is essential that bank makes
comprehensive efforts at conducting a proper background check on the status and nature of the employee
in his or her neighborhood, as this would help them establish the probability of the employee engaging in
fraudulent activities.
iii) Regular need assessment to increase the ability of bank’s staff in detecting fraud especially those related
to cheques and money transfers. This can be achieved through a combination of internal and external
modules of on the job training and off the job training exercises.
Annual Report 2021

iv) Continuously review the code of ethics and code of conduct to reduce the probable tendency for fraudulent
behavior of the employees. It is believed that if employees are well motivated to the bank, the incidence of
frauds will be reduced.
v) Favorable financial awards and recognition should be given to employees who show dexterity in identifying
and preventing fraud.
vi) Top management must also strive to maintain a high degree of ethical standards in the performance of
their duties, in view of the fiduciary nature of their functions. This is imperative as they are by law required
to safeguard the assets of their banks.
vii) The internal audit divisions of bank should not be seen as a dumping ground for non-performing staff. Staff
deployed into this department should be sufficiently qualified, properly trained and adequately experienced
in all facets of banking operation.
2.33 Internal Audit Process
Internal Audit Division as independent from the part of Management, is committed to standards of best
professional practice on internal audit. The basic steps in the internal audit processes followed by the bank
are stated below:
1) Audit Planning Process
The basic audit planning process consists of two phases: the assessment of business risk and the development
of the annual plan. Assessing of business risk focuses on viz. (i) defining auditable units, (ii) defining the risk
criteria, (iii) constructing the risk model and (iv) ranking the auditable units.
i) Defining Auditable units
Auditable units are defined as individual applications, business units, departments or offices each of these
approaches either limits the scope of an audit project or broadens it beyond what can reasonably be
managed.
ii) Defining the risk criteria
The model is based on operational risk, exposure and controls. Each area is broken down into sub-categories
as follows:
z Operational risk (people, systems, process, contractual, reputational and political)
z Exposure (financial, regulatory and customer);
z Controls (people, process, information systems and reporting).
The controls categories are further broken down into the following sub-categories viz. people, process and
information systems.
iii) Constructing the Risk Model
The risk assessment and audit planning methodology is a structured approach to a subjective process. The
risk assessment and planning model is the product of value judgments.
iv) Ranking the Auditable units
The risk profile spreadsheet computes a score for each auditable unit based on operational risk, exposure
and control. This score is then converted into a ranking for each criterion as follows:
Operational Risk - high, medium, low
Exposure - high, medium, low
Control - high, medium, low
2) Developing Audit Programme
Once the annual plan is developed and approved, Audit Programme are developed for each audit to be
undertaken. Audit Programme is to be reviewed prior to the start of each audit to determine if there have
been any changes. The steps in developing an Audit Programme are: understand the operations, develop
flowchart or narrative, review the process with the concerned staff and develop the Audit Programme.
3) Implementing the Annual Audit Plan
The department undertakes structured approach to accomplish the annual plan and the actual audit can be
broken up into a number of stages stated below.
(i) Preparation stage
At this stage, the team leader ensures that all the necessary requirements for the audit are prepared and
available and preliminary reviews and information gathering is undertaken.
(ii) Fieldwork
During the fieldwork the auditor gathers evidence in order to determine the status of operations and controls
within a particular area. This evidence is the basis for the auditor’s conclusions about a particular assignment.
246
(iii) Documentation or working paper

The working papers are evidence in support of the audit findings and opinion.
(iv) Audit Findings
Findings are pertinent statements of fact uncovered during the course of an audit and these are to be
reported. The findings are reviewed by the Team leader and the Head of Audit prior to the final report being
issued.
4) Reporting
The audit reports are submitted to the auditable units, senior management and to the Audit Committee
of the Board. The audit reports contain findings which are of a critical nature and have a major impact on
the organization. Other operational issues identified during the audit which are considered not to be of a
material nature but are worth are reported through ‘Management Report’ to the Head of the Department/
Office and Head of the area being audited.
5) Follow-up
Along with compliance functioning the internal audit people employ close follow up to ensure that
appropriate and timely action has been taken on audit findings and recommendations. Internal Audit
Department reports to the Audit Committee on the current status of outstanding findings and what action
is being taken to resolve the issues.
6) External Audit
Internal audit uses the external audit reports and ensures that any issues raised by the external auditor have
been followed up by management and whether corrective action has been taken in a timely manner.
2.34 Reporting period
The accounting period of the bank has been determined to be from 1 January to 31 December each year
and is followed consistently.
2.35 Comparative Information
Presentation of Financial Statements, comparative information in respect of the previous year have
been presented in all numerical information in the financial statements and the narrative and descriptive
information where, it is relevant for understanding of the current year’s financial statements.
The comparative figure for amortization of intangible assets has been taken off from the profit and loss
account and shown in the statement of changes in Equity against the corresponding amount in the current
year’s financial statement as explained in note 18 to the financial statement.
2.36 Earnings per share (EPS)
2.36.01 Basic earnings per share
The Bank calculates Earnings per Share (EPS) in accordance with IAS 33 “Earnings per Share”, which has
been shown on the face of profit and loss account, and the computation of EPS is stated in Note 44.
2.36.02 Diluted earnings per share
No diluted earnings per share is required to be calculated for the year as there was no scope for dilution
during the year under review.
2.37 Approval of financial statements
The financial statements were approved by the Board of Directors on 28 April 2022.
2.38 Verification of financial statements through Document Verification System (DVS)
As per BRPD circular letter no. 4 dated 04 January 2021 Banks are required to preserve the updated statutory
audit report of the clients in loan file during approval/renewal of the facilities and as per BRPD circular
letter no. 35 dated 06 July 2021, the statutory audit report and Financial Statements needs to be verified
through the Document Verification System (DVS) developed by the Institute of Chartered Accountants of
Bangladesh (ICAB). Financial Reporting Council (FRC) vide its letter no 178/FRC/APR/2021/27(23) dated 7
December 2021 has instructed to disclose the percentage (%) of the loan file covered under the compliance
of these BRPD Circular in the financial statements of the Bank. The Bank entired in a MOU with ICAB for
varification through DVS at the end of the year 2021. The bank got the master access on the DVS during the
year 2022. After getting the master access the bank has started to implement the compliance accordingly.
2.39 General
a) Figures have been rounded off to the nearest taka.
b) Prior Year’s figures have been shown for comparison purposes and rearranged wherever necessary to
conform to current year’s presentation.
c) Conversion rate is calculated based on the simple average of buying and selling rate.
Annual Report 2021

Amount in Taka
Particulars Notes Consolidated Bank
2021 2020 2021 2020
3.00 Cash
Cash in hand (Including
3.01 7,85,65,37,591 7,42,89,96,911 7,72,58,20,573 7,30,08,75,336
foreign currencies)
Balance with Bangladesh
Bank and its Agent
3.02 69,80,11,30,063 83,80,12,97,347 69,80,11,30,063 83,80,12,97,347
Bank (Including foreign
currencies)
77,65,76,67,655 91,23,02,94,258 77,52,69,50,637 91,10,21,72,683
3.01 Cash In Hand( Including foreign currencies)
Local Currency 3.01.01 7,41,89,25,556 6,73,35,29,375 7,41,89,25,556 6,73,35,29,375
Foreign Currency 3.01.02 43,76,12,036 69,54,67,536 30,68,95,018 56,73,45,961
7,85,65,37,591 7,42,89,96,911 7,72,58,20,573 7,30,08,75,336
3.01.01 Local Currency
Cash in hand 6,73,71,84,024 5,87,57,86,450 6,73,71,84,024 5,87,57,86,450
Cash with ATM A/C 36,08,60,579 30,35,80,528 36,08,60,579 30,35,80,528
Sonali VISA Transaction A/C 19,89,43,489 33,15,26,814 19,89,43,489 33,15,26,814
Islamic Banking Window 12,19,37,464 22,26,35,583 12,19,37,464 22,26,35,583
7,41,89,25,556 6,73,35,29,375 7,41,89,25,556 6,73,35,29,375
3.01.02 Foreign Currency
Foreign Currency in Hand 25,48,49,678 52,42,30,585 25,48,49,678 52,42,30,585
Overseas Branches 5,20,45,340 4,31,15,376 5,20,45,340 4,31,15,376
Sonali Bank (UK) Ltd. 15,14,659 - - -
Sonali Exchange Co. Inc 12,92,02,359 12,81,21,575 - -
43,76,12,036 69,54,67,536 30,68,95,018 56,73,45,961
Balance with Bangladesh Bank and its Agent Bank
3.02
(Including foreign currencies)
Local Currency 59,69,03,35,375 69,62,98,20,044 59,69,03,35,375 69,62,98,20,044
Foreign Currency 9,83,95,61,308 13,97,50,47,170 9,83,95,61,308 13,97,50,47,170
69,80,11,30,063 83,80,12,97,347 69,80,11,30,063 83,80,12,97,347
Mode of Deposit with Bangladesh Bank
Statutory Deposit 69,80,11,30,063 83,80,12,97,347 69,80,11,30,063 83,80,12,97,347
Non Statutory Deposit - - - -
69,80,11,30,063 83,80,12,97,347 69,80,11,30,063 83,80,12,97,347
Details shown in Annexure-A.

3.03 Disclosures regarding maintenance of CRR & SLR
Cash Reserve Requirements (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in
accordance with the sections 25 & 33 of the Bank Company Act 1991 (amended to date) and subsequent MPD
Circular No. 03, 09 April 2020.
The Cash Reserve Requirement (CRR) on the bank’s time and demand liabilities at the rate of 4% has been
calculated and maintained with Bangladesh Bank in current account and 13% Statutory Liquidity Ratio (SLR),
including CRR on the liabilities has also been maintained in the form of treasury bills, bonds and debentures
including F.C. balance with Bangladesh Bank. Both the reserve maintained by the Bank are in excess of the
statutory requirements, as shown below:
3.03.01 Cash Reserve Requirement (CRR )
As per MPD circular No. 3 dated 09 April 2020 of Bangladesh Bank (effective from 15 April 2020) refer to MPD
circular No. 04 dated 1 December 2010, all scheduled Banks are required to maintain a CRR minimum 3.5% on
daily basis based on weekly average demand and time liabilities of two months prior to current month (i.e. CRR
of December 2020 will be based on weekly average balance of October 2020 as per BRPD circular no. 12 dated
6 September 1998) and minimum 4% on bi-weekly basis. SBL has been maintaining its CRR on bi-weekly basis.
248
Amount in Taka
Particulars Percentage
2021 2020
Average demand and time liabilities 12,90,92,84,06,000 11,58,96,39,16,000
Required Reserve 4.0% 51,63,71,36,240 46,35,85,57,000
Reserve held with Bangladesh Bank* (Average) 6.2% 80,26,66,83,060 89,60,06,36,000
Surplus/(Deficit) 2.2% 28,62,95,46,820 43,24,20,79,000
*As per statement of Bangladesh Bank
*As Sonali Bank Limited is maintaining its CRR on bi-weekly basis, the bi-weekly basis balance of reserve held
with Bangladesh bank was Taka 80,26,66,83,060.00 which indicates that the reserve held with Bangladesh Bank
is not below the required reserve.
3.03.02 Statutory Liquidity Ratio (SLR) (including CRR )

Bangladesh Bank circular (MPD circular No. 02 dated 10 December 2013 and DOS circular No. 01 dated 19
January 2014) to maintain SLR separately at 13% effective from 01 February 2014. Sonali Bank Limited maintain
SLR separately from the above date.
The Bank has to maintain Tk. 1,67,82,06,93,000.00 on bi-weekly basis on December 2020 as SLR against which
the bank maintained Tk. 6,20,97,23,06,250.00. As a result the surplus of SLR stood Tk. 4,53,15,16,13,250.00.
Amount in Taka
Particulars Percentage
2021 2020
Average demand and time liabilities 12,90,92,84,06,000 11,58,96,39,16,000
Required Reserve 13.00% 1,67,82,06,93,000 1,50,66,53,09,000

Actual Reserve held with Bangladesh Bank 48.22% 6,20,97,23,06,250 5,79,70,06,92,000
Surplus/(Deficit) 35.22% 4,53,15,16,13,250 4,29,03,53,83,000
Grand Total of CRR &SLR
Required Reserve 2,19,45,78,29,240 1,97,02,38,66,000
Actual Reserve held with Bangladesh Bank 7,01,23,89,89,310 6,69,30,13,28,000
Surplus/(Deficit) 4,81,78,11,60,070 4,72,27,74,62,000
3.03.02.1 Actual Reserve held as Statutory Liquidity Ratio (SLR)

Cash in hand 6,73,71,84,000 7,03,47,53,558
Excess of CRR 28,62,95,46,820 43,24,20,79,000
Unencumbered approved securities (HFT) 2,75,00,36,77,700 1,80,95,13,61,684
Unencumbered approved securities (HTM) 3,00,34,82,64,160 2,21,51,42,29,484
Remeasured Securities Account 77,25,52,74,647 79,57,20,09,388
Bangladesh Government Investment Sukuk (Ijarah Sukuk) 11,22,88,70,000 5,27,94,50,000
Other Eligible Securities 38,88,31,80,400 42,10,68,08,886
7,38,08,59,97,727 5,79,70,06,92,000
4.00 Balance with Other Banks and Financial Institutions:
Amount in Taka
2021 2020 2021 2020
In Bangladesh
Local Currency 4.01 25,38,57,41,517 32,18,07,41,503 25,38,57,41,183 32,18,07,41,183
Foreign Currency - 4,24,25,00,000 - 4,24,25,00,000
Islamic Banking Window 3,28,79,15,080 4,25,71,40,712 3,28,79,15,080 4,25,71,40,712
28,67,36,56,597 40,68,03,82,215 28,67,36,56,263 40,68,03,81,895
Outside Bangladesh 4.02 9,93,57,45,481 11,89,39,27,285 9,38,15,44,650 11,62,84,26,724

38,60,94,02,078 52,57,43,09,500 38,05,52,00,913 52,30,88,08,619
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
4.01 Balance with other Banks and Financial Institutions
In Bangladesh :
Bank
Basic Bank Ltd. BDT - 2,00,00,00,000 - 2,00,00,00,000
Padma Bank Ltd. BDT 2,40,00,00,000 1,90,00,00,000 2,40,00,00,000 1,90,00,00,000
ICB Islamic Bank Ltd BDT 14,51,42,558 14,51,42,558 14,51,42,558 14,51,42,558
National Bank Ltd. BDT 3,50,00,00,000 3,50,00,00,000 3,50,00,00,000 3,50,00,00,000
NRB Global bank Ltd. BDT - 60,00,00,000 - 60,00,00,000
Rajshahi Krishi Unnayan

BDT 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000
Bank (RAKAB)
Karmashangsthan Bank Ltd. BDT - 1,00,00,00,000 - 1,00,00,00,000
SBL Foreign Ex. Corp. Br. BDT 28,97,07,513 18,60,68,617 - -
Dhaka Bank Islamic

BDT 334 320 - -
Banking Br.
SBL Uttara Br. BDT 30,85,240 31,99,092 - -
SBL Mirpur Shilpa Elaka Br. BDT 66,76,698 34,56,221 - -
SBL Wage Earners Corp. Br. BDT 1,82,35,226 - - -
South Bangla Agricultural &

BDT - 60,00,00,000 - 60,00,00,000
Commerce Bank Ltd.
Union Bank Ltd. BDT 80,00,00,000 1,25,00,00,000 80,00,00,000 1,25,00,00,000
Sub Total 8,16,28,47,569 12,18,78,66,808 7,84,51,42,558 11,99,51,42,558
Non-Bank Financial Institutions
Bangladesh Finance &

BDT 19,50,00,000 20,00,00,000 19,50,00,000 20,00,00,000
Investment Co. Ltd.
CVC Finance Limited BDT 5,00,00,000 5,00,00,000 5,00,00,000 5,00,00,000
Bay Leasing & Investment BDT 9,50,00,000 10,50,00,000 9,50,00,000 10,50,00,000
FAS Finance & Investment Ltd. BDT 12,97,61,500 12,97,61,500 12,97,61,500 12,97,61,500
Islami Finance and

BDT 5,00,00,000 7,00,00,000 5,00,00,000 7,00,00,000
Investment Ltd.
Investment Corporation of
BDT
Bangladesh 13,00,00,00,000 15,00,00,00,000 13,00,00,00,000 15,00,00,00,000
GSP Finance Co. Ltd BDT 30,00,00,000 30,00,00,000 30,00,00,000 30,00,00,000
International Leasing &

BDT 18,96,00,000 18,96,00,000 18,96,00,000 18,96,00,000
Finance Service Ltd.
250
Amount in Taka
2021 2020 2021 2020
Meridian Finance Ltd. BDT 3,00,00,000 3,00,00,000 3,00,00,000 3,00,00,000
IIDFC BDT 20,00,00,000 19,00,00,000 20,00,00,000 19,00,00,000
People's Leasing &

BDT 40,00,00,000 40,00,00,000 40,00,00,000 40,00,00,000
Financial Services Ltd.
Bangladesh Industrial
BDT 20,00,00,000 20,00,00,000 20,00,00,000 20,00,00,000
Finance Company Ltd. (BIFC)
Premier Leasing & Finance Ltd BDT 42,12,37,125 42,12,37,125 42,12,37,125 42,12,37,125
Lanka Bangla Finance Ltd BDT 20,00,00,000 71,00,00,000 20,00,00,000 71,00,00,000
Lanka Alliance Finance Ltd. - 5,00,00,000 - 5,00,00,000
Fareast Finance &

BDT 15,00,00,000 15,00,00,000 15,00,00,000 15,00,00,000
Investment Company Ltd.
First Finance Ltd. BDT 15,00,00,000 15,00,00,000 15,00,00,000 15,00,00,000
Aviva Finance Limited BDT 18,00,00,000 18,00,00,000 18,00,00,000 18,00,00,000
Strategic Finance & Inv Ltd. BDT 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000
National Finance Ltd. BDT 5,00,00,000 5,00,00,000 5,00,00,000 5,00,00,000
Phoenix Finance Ltd. BDT 35,00,00,000 35,00,00,000 35,00,00,000 35,00,00,000
Uttara Finance &

BDT 20,00,00,000 26,00,00,000 20,00,00,000 26,00,00,000
Investment Ltd.
Sub Total BDT 17,54,05,98,625 20,18,55,98,625 17,54,05,98,625 20,18,55,98,625
Total BDT 25,70,34,46,194 32,37,34,65,433 25,38,57,41,183 32,18,07,41,183
Less: Inter Company

BDT 31,77,04,677 19,27,23,930 - -
Balance Eliminated
Grand Total BDT 25,38,57,41,517 32,18,07,41,503 25,38,57,41,183 32,18,07,41,183
4.02 Balance Held with Foreign Banks (Outside Bangladesh)
Foreign Banks 4.02.01 7,86,89,94,226 9,84,43,08,459 7,86,89,94,226 9,84,43,08,459
Asian Clearing Union 4.02.02 28,18,70,235 52,69,14,692 28,18,70,235 52,69,14,692
Overseas Branches 4.02.03 1,23,06,80,189 1,25,72,03,572 1,23,06,80,189 1,25,72,03,572
Sonali Bank (UK) Ltd. 38,64,96,237 - - -
9,93,57,45,481 11,89,39,27,285 9,38,15,44,650 11,62,84,26,724
Annual Report 2021

4.02.01 Balance held with Foreign Bank Debit Balance

SL.No. Particulars As at 31 December 2021
Foreign
FC amount Exchange rate Amount in Taka
Currency
1 Sonali Bank (UK) Ltd. London EURO 69,594.74 97.383 67,77,344
2 Sonali Bank (UK) Ltd. London USD 94,42,975.59 85.800 81,02,07,306
8 Sonali Bank (UK) Ltd. London USD 51,092.09 85.800 43,83,701
9 Sonali Bank (UK) Ltd. London GBP 21,29,442.93 115.727 24,64,34,042
11 Sonali Bank (UK) Ltd. London GBP 48,649.82 115.727 56,30,098
12 Sonali Bank (UK) Ltd. London GBP 16,938.57 115.727 19,60,250
13 Sonali Bank (UK) Ltd. London GBP 27.00 115.727 3,125
14 Bank Of America, NY USD 11,610.35 85.800 9,96,168
15 Zaire Bank, London GBP 2,76,433.40 115.727 3,19,90,808
16 Net West Plc, London USD 50,478.14 85.800 43,31,024
17 Chase Chemical Bank USD 6,93,634.15 85.800 5,95,13,810
18 Sonali Bank Ltd Kolkata USD 9,474.50 85.800 8,12,912
19 Sonali Bank (UK) Ltd. London USD 1,13,128.81 85.800 97,06,452
20 Bangladesh Foreign Post office USD 22,57,506.50 85.800 19,36,94,058
21 Standard Chartered Bank, Germany. EURO 96,27,590.13 97.383 93,75,63,610
22 Euno credito Italiana Spa. Italy EURO 68,270.35 97.383 66,48,371
23 Habib American BANK, N.Y. USD 1,03,396.00 85.800 88,71,377
24 Standard Chartered Bank NY USD 35,61,425.31 85.800 30,55,70,292
25 Standard Chartered Bank NY USD 4,74,83,659.09 85.800 4,07,40,97,950
26 Mashreq Bank N.Y USD 7,64,817.74 85.800 6,56,21,363
28 Standard Chartered Bank London GBP 19,809.12 115.727 22,92,450
30 Standard Chartered Bank, Singapore SGD 7,26,728.81 63.443 4,61,05,711
31 Union Bank Of Switzerland CHF 16,561.24 93.801 15,53,464
32 Bank of China Ltd CNY 22,09,947.90 13.473 2,97,74,186
33 Bank of Tokyo Ltd. Japan Yen 9,10,90,979.00 0.746 6,79,90,307
34 Standard Chartered Bank, Japan Yen 1,38,85,811.00 0.746 1,03,64,370
35 Commerz Bank Frankfurt, Germany EURO 72,10,399.37 97.383 70,21,70,321
36 BHF Bank, Germany EURO 1,06,331.40 97.383 1,03,54,871
37 Al-Raji Bank, Inv SAR 1,02,84,733.22 22.854 23,50,45,236
UAE
38 Aktif Yatirim Bank A.S Istambul 1,800.00 23.359 42,046
DIRHAM
Total Debit Balance (A) 20,98,94,552.27 8,55,02,72,816
252
Amount in Taka
2021 2020 2021 2020
4.02.02 Balance held with Foreign Bank Credit Balance
SL. No. Particulars As at 31 December 2021
Foreign Currency FC amount Exchange rate Amount in Taka

1 Doha Bank, Qatar USD 3,231.00 85.800 2,77,220
2 Citi Bank NY USD 23,73,593.42 85.800 20,36,54,316
3 Deutsche Bank TrustCo. NY USD 1,65,271.00 85.800 1,41,80,252
4 Habib American BANK, N.Y. USD 9,34,949.55 85.800 8,02,18,671
5 J.P Margon Chase BANK, N.Y. USD 44,37,637.74 85.800 38,07,49,318
6 Net West Plc, London GBP 19,000.00 115.727 21,98,813
Total Credit Balance (B) 79,33,682.71 68,12,78,590
Grand Total (A-B) 20,19,60,869.56 7,86,89,94,226
4.02.03 Balance Held with Asian Clearing Union (ACU)

1 Sonali Bank Ltd Kolkata EURO 76,930.26 97.383 74,91,700
2 Myanmar Economic Bank EURO 1,50,000.00 97.383 1,46,07,450
3 Myanmar Economic Bank USD 2,00,000.00 85.800 1,71,60,000
4 Nepal Bank Ltd. Kathmandu, Nepal USD 4,363.77 85.800 3,74,411
5 Myanmar Foreign Trade Bank USD 2,32,126.31 85.800 1,99,16,437
6 Bank of Bhutan USD 2,85,856.08 85.800 2,45,26,452
7 Habib Metropolitan Bank Ltd. USD 29,72,492.13 85.800 25,50,39,825
8 Myanmar Investment & Com. Bank USD 2,00,000.00 85.800 1,71,60,000
9 Standard Chartered Bank, Karachi USD 5.48 85.800 470
10 Sonali Bank Ltd Kolkata USD (20,66,962.07) 85.800 (17,73,45,346)
11 Meezan Bank Limited USD 11,86,470.19 85.800 10,17,99,142
12 Bank of Ceylon, Srilanka USD 13,283.14 85.800 11,39,693
Total 32,54,565.29 28,18,70,235
4.02.04 Balance Held with Overseas Branches of Sonali Bank Limited
1 Overseas Branches (Kolkata & Siliguri) IRS 1,06,94,12,747 1.1508 1,23,06,80,189
Total 1,06,94,12,747 1,23,06,80,189
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
4.03 Maturity Grouping of Balance with Other Banks & Financial Institutions
On Demand - - - -
Less than three months 8,43,05,44,650 21,17,68,08,459 8,43,05,44,650 21,17,68,08,459
More than three months
22,85,56,19,674 22,68,79,15,080 29,96,75,58,977
but less than one year 30,23,30,59,857
More than one year but less
3,86,10,00,000 1,01,93,00,000 3,86,10,00,000 1,01,93,00,000
than five years
More than five years 3,46,22,37,754 14,51,41,184 3,07,57,41,183 14,51,41,184
38,60,94,02,078 52,57,43,09,500 38,05,52,00,913 52,30,88,08,619
5.00 Money at Call on Short Notice

In Bangladesh 5.01 8,66,30,00,000 9,03,13,00,000 8,66,30,00,000 9,03,13,00,000
Outside Bangladesh 5.02 60,40,59,326 - - -
9,26,70,59,326 9,03,13,00,000 8,66,30,00,000 9,03,13,00,000
5.01 In Bangladesh
Bank
AB Bank Ltd 1,70,00,00,000 - 1,70,00,00,000 -
ICB Islamic Bank Ltd. 17,32,00,000 17,32,00,000 17,32,00,000 17,32,00,000
Padma Bank Ltd 80,00,00,000 50,00,00,000 80,00,00,000 50,00,00,000
NRB Bank Ltd - 10,00,00,000 - 10,00,00,000
SBAC Bank 81,00,00,000 - 81,00,00,000 -
The City Bank Ltd. - 20,00,00,000 - 20,00,00,000
Modhumoti Bank Ltd. 15,00,00,000 25,00,00,000 15,00,00,000 25,00,00,000
NRB Commercial Bank Ltd. 50,00,00,000 1,10,00,00,000 50,00,00,000 1,10,00,00,000
DBBL - 21,00,00,000 - 21,00,00,000
Dhaka Bank Ltd. - 1,00,00,00,000 - 1,00,00,00,000
Midland Bank Ltd - 30,00,00,000 - 30,00,00,000
National Bank Ltd 1,09,00,00,000 51,00,00,000 1,09,00,00,000 51,00,00,000
Bank Al Falah Ltd. - 60,00,00,000 - 60,00,00,000
Sub Total 5,22,32,00,000 4,94,32,00,000 5,22,32,00,000 4,94,32,00,000
Non-Bank Financial Institutions
Aviva Finance Ltd. 12,13,00,000 12,74,00,000 12,13,00,000 12,74,00,000

Bangladesh Ind. Finance Co. Ltd. (BIFC) 10,00,00,000 10,00,00,000 10,00,00,000 10,00,00,000
Fareast Finance & Inv. Ltd. 14,68,00,000 15,18,00,000 14,68,00,000 15,18,00,000
First Finance Ltd. 7,91,00,000 9,80,00,000 7,91,00,000 9,80,00,000
FAS Finance 6,86,00,000 6,86,00,000 6,86,00,000 6,86,00,000
ICB 83,00,00,000 1,50,00,00,000 83,00,00,000 1,50,00,00,000
Lanka Bangla Finance 20,00,00,000 29,00,00,000 20,00,00,000 29,00,00,000
International Leasing Co. Ltd. 24,66,00,000 25,95,00,000 24,66,00,000 25,95,00,000
Midas Finance Ltd. 4,00,00,000 6,00,00,000 4,00,00,000 6,00,00,000
Phoenix Finance 12,42,00,000 13,44,00,000 12,42,00,000 13,44,00,000
People Leasing 16,00,00,000 16,00,00,000 16,00,00,000 16,00,00,000
Prime Finance and
9,43,00,000 11,29,00,000 9,43,00,000 11,29,00,000
Investment Ltd.
254
Amount in Taka
2021 2020 2021 2020
Premier Leasing 15,70,00,000 15,73,00,000 15,70,00,000 15,73,00,000

BD Finance Ltd. 10,33,00,000 6,84,00,000 10,33,00,000 6,84,00,000
Bay Leasing & Inv. Ltd. 7,00,00,000 10,00,00,000 7,00,00,000 10,00,00,000
United Leasing 20,00,00,000 - 20,00,00,000 -
GSP Finance and Inv. Ltd. 6,90,00,000 7,50,00,000 6,90,00,000 7,50,00,000
Meridian Finance and Inv. Ltd. 8,29,00,000 8,80,00,000 8,29,00,000 8,80,00,000
National Finance & Inv. Ltd. 3,00,00,000 4,00,00,000 3,00,00,000 4,00,00,000
IPDC 19,00,00,000 15,00,00,000 19,00,00,000 15,00,00,000
IIDFC 11,00,00,000 12,00,00,000 11,00,00,000 12,00,00,000
CVC Finance Limited 8,20,00,000 8,71,00,000 8,20,00,000 8,71,00,000
Union Capital 13,47,00,000 13,97,00,000 13,47,00,000 13,97,00,000
Sub Total 3,43,98,00,000 4,08,81,00,000 3,43,98,00,000 4,08,81,00,000
Grand Total 8,66,30,00,000 9,03,13,00,000 8,66,30,00,000 9,03,13,00,000
5.02 Outside Bangladesh

Overseas Branches - - - -
60,40,59,326 - - -
6.00 Investments
Government Securities 6.01 6,14,39,89,95,875 5,50,69,51,58,356 6,13,13,15,76,047 5,50,69,51,58,356
Other Investments 6.02 71,45,15,80,633 79,92,09,06,731 74,93,31,40,621 78,98,66,80,661
Total 6,85,85,05,76,508 6,30,61,60,65,087 6,88,06,47,16,668 6,29,68,18,39,017
6.01 Government Securities (Considered as SLR)

Treasury Bills-Primary 6.01.01 1,22,67,13,34,994 1,34,86,71,40,485 1,22,67,13,34,994 1,34,86,71,40,485
Government Notes/Bonds/ 6.01.02
4,75,37,10,17,948 4,09,07,88,41,521 4,75,37,10,17,948 4,09,07,88,41,521
Other securities
Bangladesh Government
11,22,88,70,000 5,27,94,50,000 11,22,88,70,000 5,27,94,50,000
Investment Sukuk (Ijarah Sukuk)
Prize Bond 8,60,56,900 7,62,98,700 8,60,56,900 7,62,98,700
ICB Share 91,34,24,500 91,34,24,500 91,34,24,500 91,34,24,500
Debentures Public 51,47,900 51,47,900 51,47,900 51,47,900
Reverse-Repo 2,50,68,66,750 - 2,50,68,66,750 -
6,12,78,27,18,993 5,50,22,03,03,106 6,12,78,27,18,993 5,50,22,03,03,106
Sonali Bank (UK) Ltd. 1,26,74,19,828 - - -
Total Government Securities 6,14,39,89,95,875 5,50,69,51,58,356 6,13,13,15,76,047 5,50,69,51,58,356
6.01.01 Treasury Bills-Primary

28 days Treasury Bills - - - -
91 days Treasury Bills 56,38,42,86,687 91,05,50,27,918 56,38,42,86,687 91,05,50,27,918
1,22,67,13,34,994 1,34,86,71,40,485 1,22,67,13,34,994 1,34,86,71,40,485
6.01.02 Government Notes/Bonds/Other securities
2 years Bangladesh Govt.
93,35,74,51,486 45,10,31,67,552 93,35,74,51,486 45,10,31,67,552
Treasury Bond (BGTB)
1,18,44,71,07,860 1,08,61,32,83,749 1,18,44,71,07,860 1,08,61,32,83,749
Annual Report 2021

Amount in Taka
2021 2020 2021 2020

1,14,54,99,27,975 1,00,51,61,87,629 1,14,54,99,27,975 1,00,51,61,87,629
63,39,25,97,540 57,67,34,61,471 63,39,25,97,540 57,67,34,61,471
59,40,54,33,087 56,12,22,04,120 59,40,54,33,087 56,12,22,04,120
11-13 years Treasury Bond (BJMC) 3,92,64,00,000 3,92,64,00,000 3,92,64,00,000 3,92,64,00,000
8-15 years Treasury Bond (BPC) 16,86,47,00,000 31,36,47,00,000 16,86,47,00,000 31,36,47,00,000
3 Years Treasury Bond (FRTB) 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000
3-7 Years Treasury Bond (SBL) 4,42,74,00,000 4,75,94,37,000 4,42,74,00,000 4,75,94,37,000
4,75,37,10,17,948 4,09,07,88,41,521 4,75,37,10,17,948 4,09,07,88,41,521
6.01.03 Investment in Government

Held to Maturity (HTM) 2,48,29,44,55,246 2,21,51,42,29,484 2,48,29,44,55,246 2,21,51,42,29,484
Held for Trading ( HFT) 6.01.03a 2,75,91,80,62,199 2,43,77,83,15,534 2,75,91,80,62,199 2,43,77,83,15,534
Remeasured Securities A/C 77,25,52,74,648 79,57,20,09,388 77,25,52,74,648 79,57,20,09,388
11,22,88,70,000 5,27,94,50,000 11,22,88,70,000 5,27,94,50,000
Prize Bond 8,60,56,900 7,62,98,700 8,60,56,900 7,62,98,700
6,12,78,27,18,993 5,50,22,03,03,106 6,12,78,27,18,993 5,50,22,03,03,106
6.01.03a As per Bangladesh Bank Instruction, ICB share has been kept out of portfolio Investment and categorized as
HFT component. Details in Annexure-A.
6.02 Other Investments:
Ordinary Share 6.02.01 22,73,98,92,051 21,07,98,21,756 21,07,34,52,039 20,14,55,95,686
Debentures of private sectors 6,96,000 7,55,500 6,96,000 7,55,500
Investment in foreign currency - 5,08,80,66,000 5,14,80,00,000 5,08,80,66,000
Private Bond 6.02.02 48,57,03,52,743 53,67,99,95,303 48,57,03,52,743 53,67,99,95,303
Sub-total 71,31,09,40,793 79,84,86,38,559 74,79,25,00,781 78,91,44,12,489
Islamic Banking Window 5,45,60,000 - 5,45,60,000 -
Total Other Investments 71,45,15,80,633 79,92,09,06,731 74,93,31,40,621 78,98,66,80,661
6.02.01 Ordinary Shares

Quoted-Fully paid-up-ordinary share* 8,71,71,14,966 7,78,92,59,906 8,71,71,14,966 7,78,92,59,906
Unquoted-Fully paid-up-ordinary share 12,35,63,37,073 12,35,63,35,780 12,35,63,37,073 12,35,63,35,780
Sonali Investment limited 1,66,64,40,012 93,42,26,070 - -
22,73,98,92,051 21,07,98,21,756 21,07,34,52,039 20,14,55,95,686
Investment in Shares & Bond
Number of Cost Price
Particulars Market Price
Company 2021 2020
Listed Securities 122 7,46,24,53,860 8,71,71,14,966 7,78,92,59,906
Non-Listed Securities 13 12,35,63,37,073 12,35,63,37,073 12,35,63,35,780
Total 135 19,81,87,90,933 21,07,34,52,039 20,14,55,95,686
Sector wise investment
Listed securities
Number of Market Price Cost Price
Sector
Company 2020 2021 2020
Bank and NBFI 44 2,89,23,15,019 3,22,12,01,275 3,30,37,25,127
Insurance Companies 4 6,40,11,161 10,08,85,890 10,08,92,011
256
Amount in Taka
2021 2020 2021 2020
Fuel and Power Co. 18 1,31,63,16,244 1,55,88,18,465 1,12,76,15,580

Manufacturing & Other 56 3,18,98,11,436 3,83,62,09,336 3,25,70,27,187
Total 122 7,46,24,53,860 8,71,71,14,966 7,78,92,59,906
Non-Listed Securities
Number of Market Price Cost Price
Sector
Company 2020 2021 2020
Bank and NBFI 5 1,97,25,11,773 1,97,25,11,773 1,97,25,10,480
Manufacturing 2 1,03,37,900 1,03,37,900 1,03,37,900
Others 6 10,37,34,87,400 10,37,34,87,400 10,37,34,87,400
Total 13 12,35,63,37,073 12,35,63,37,073 12,35,63,35,780
The unlisted investments are shown at cost because the fair value cannot be measured reliably.
Detail shown in Annexure-H.
6.02.02 Private bond

Prime Bank Ltd. Bond 90,00,00,000 1,20,00,00,000 90,00,00,000 1,20,00,00,000
Eastern Bank Bond 60,00,00,000 70,00,00,000 60,00,00,000 70,00,00,000
Bank Asia Bond 70,00,00,000 1,00,00,00,000 70,00,00,000 1,00,00,00,000
Mutual Trust Bank Bond 1,15,00,00,000 1,50,00,00,000 1,15,00,00,000 1,50,00,00,000
Jamuna Bank Bond 90,00,00,000 1,30,00,00,000 90,00,00,000 1,30,00,00,000
UCBL Bank Bond 60,00,00,000 90,00,00,000 60,00,00,000 90,00,00,000
SIBL Bank Bond - 10,00,00,000 - 10,00,00,000
Standard Bank Bond 1,60,00,00,000 96,00,00,000 1,60,00,00,000 96,00,00,000
One Bank Bond 1,20,00,00,000 1,40,00,00,000 1,20,00,00,000 1,40,00,00,000
IFIC Bank Bond 40,00,00,000 60,00,00,000 40,00,00,000 60,00,00,000
Dhaka Bank Bond 1,12,00,00,000 1,48,00,00,000 1,12,00,00,000 1,48,00,00,000
Trust Bank Bond 44,00,00,000 81,00,00,000 44,00,00,000 81,00,00,000
Southeast Bank Bond 2,00,00,00,000 1,50,00,00,000 2,00,00,00,000 1,50,00,00,000
AB Bank Bond 1,70,00,00,000 2,00,00,00,000 1,70,00,00,000 2,00,00,00,000
Premier Bank Bond 2,05,00,00,000 1,55,00,00,000 2,05,00,00,000 1,55,00,00,000
Pubali Bank Bond 1,60,00,00,000 1,80,00,00,000 1,60,00,00,000 1,80,00,00,000
The City Bank Bond 1,22,50,00,000 1,50,00,00,000 1,22,50,00,000 1,50,00,00,000
Dutch Bangla Bank Bond 1,60,00,00,000 1,80,00,00,000 1,60,00,00,000 1,80,00,00,000
EXIM Bank Bond 2,10,00,00,000 1,80,00,00,000 2,10,00,00,000 1,80,00,00,000
National Bank Bond 30,00,00,000 40,00,00,000 30,00,00,000 40,00,00,000
Padma Bank Bond 90,00,00,000 90,00,00,000 90,00,00,000 90,00,00,000
Shahjalal Islami Bank Bond 60,00,00,000 75,00,00,000 60,00,00,000 75,00,00,000
Al Arafa Islami Bank Bond 40,00,00,000 50,00,00,000 40,00,00,000 50,00,00,000
Mercantile Bank Bond 80,00,00,000 1,00,00,00,000 80,00,00,000 1,00,00,00,000
Islami Bank Bond 2,20,00,00,000 2,40,00,00,000 2,20,00,00,000 2,40,00,00,000
Janata Bank Bond 9,60,00,00,000 12,00,00,00,000 9,60,00,00,000 12,00,00,00,000
Rupali Bank Bond 1,60,00,00,000 2,00,00,00,000 1,60,00,00,000 2,00,00,00,000
NCC Bank Bond 40,00,00,000 50,00,00,000 40,00,00,000 50,00,00,000
First Security Islami Bank Bond 50,00,00,000 50,00,00,000 50,00,00,000 50,00,00,000
Union Bank Bond 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000
Ashugonj Power Bond (Corporate) 50,00,00,000 50,00,00,000 50,00,00,000 50,00,00,000
IPDC Finance Bond 20,00,00,000 25,00,00,000 20,00,00,000 25,00,00,000
RML Zero Coupon Bond (Corporate) 19,99,95,303 27,99,95,303 19,99,95,303 27,99,95,303
Beximco Communication Bond (Corporate) 3,00,00,00,000 3,00,00,00,000 3,00,00,00,000 3,00,00,00,000
ICB Bond 2,00,00,00,000 2,00,00,00,000 2,00,00,00,000 2,00,00,00,000
Lanka Bangla Finance Bond 66,66,66,667 80,00,00,000 66,66,66,667 80,00,00,000
North West Power Gen.
1,00,00,00,000 1,00,00,00,000 1,00,00,00,000 1,00,00,00,000
Bond (Corporate)
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Pran Agro (Pubali Bank) (Corporate) 20,00,00,000 - 20,00,00,000 -

Amra Networks Zero
11,86,90,773 - 11,86,90,773 -
Coupon (Corporate)
NRBC Bank Bond-21 50,00,00,000 - 50,00,00,000 -
48,57,03,52,743 53,67,99,95,303 48,57,03,52,743 53,67,99,95,303
6.03 Classification of Statutory and Non-statutory Investment

Statutory Investment Portfolio 6.03.01 6,13,13,15,76,047 5,50,69,51,58,356 6,13,13,15,76,047 5,50,69,51,58,356
Non-Statutory Investment Portfolio 6.03.02 72,71,90,00,461 79,92,09,06,731 74,93,31,40,621 78,98,66,80,661
6,85,85,05,76,508 6,30,61,60,65,087 6,88,06,47,16,668 6,29,68,18,39,017
6.03.01 Statutory Investment Portfolio

Held to Maturity (HTM) 2,48,29,44,55,246 2,21,51,42,29,483 2,48,29,44,55,246 2,21,51,42,29,484
Held for Trading ( HFT) 2,75,91,80,62,199 2,43,77,83,15,534 2,75,91,80,62,199 2,43,77,83,15,534
Remeasured Securities Account 77,25,52,74,648 79,57,20,09,388 77,25,52,74,648 79,57,20,09,388
11,22,88,70,000 5,27,94,50,000 11,22,88,70,000 5,27,94,50,000
Prize Bond 8,60,56,900 7,62,98,700 8,60,56,900 7,62,98,700
6,13,13,15,76,047 5,50,69,51,58,356 6,13,13,15,76,047 5,50,69,51,58,356
6.03.02 Non-Statutory Investment Portfolio

Ordinary Share 6.02.01 22,73,98,92,051 21,07,98,21,756 21,07,34,52,039 20,14,55,95,686
Debentures of private sectors 6,96,000 7,55,500 6,96,000 7,55,500
Investment in foreign currency 1,26,74,19,828 5,08,80,66,000 5,14,80,00,000 5,08,80,66,000
Private Bond 6.02.02 48,57,03,52,743 53,67,99,95,303 48,57,03,52,743 53,67,99,95,303
Islamic Banking Window 5,45,60,000 - 5,45,60,000 -
72,71,90,00,461 79,92,09,06,731 74,93,31,40,621 78,98,66,80,661
6.04 Maturity grouping of Investments as follows :

On demand 2,50,68,66,750 1,27,21,23,422 2,50,68,66,750 1,27,21,23,422
Less than three months 83,15,86,94,241 1,16,47,51,00,000 83,15,86,94,241 1,16,47,51,00,000
More than three months
92,00,85,69,931 99,11,22,95,598 92,00,85,69,931 99,11,22,95,598
but less than one year
More than one year but less
3,34,42,00,98,286 2,22,20,76,53,400 3,34,42,00,98,286 2,22,20,76,53,400
than five years
Above five years 1,73,75,63,47,300 1,91,54,88,92,667 1,75,97,04,87,460 1,90,61,46,66,597
6,85,85,05,76,508 6,30,61,60,65,087 6,88,06,47,16,668 6,29,68,18,39,017
7.00 Loans and advances

Loans, cash credits and overdrafts 7.03 6,75,89,81,97,556 5,74,51,19,08,573 6,76,73,76,56,645 5,72,79,51,30,205
Bills purchased and discounted 7.04 28,37,87,82,999 13,43,75,89,499 13,85,91,97,296 13,43,75,89,499
7,04,27,69,80,555 5,87,94,94,98,072 6,90,59,68,53,940 5,86,23,27,19,704
7.01 Maturity Grouping of Loans and Advances (Excluding Bills purchased and discounted)
Loans and advances are repayable:
Repayable on demand 65,32,84,33,425 53,83,80,58,443 65,32,84,33,425 53,83,80,58,443
Not more than 3 months 43,30,31,74,298 21,82,25,54,317 43,30,31,74,298 21,82,25,54,317
258
Amount in Taka
2021 2020 2021 2020
More than 3 months but

1,97,98,08,39,545 1,76,85,81,68,633 1,96,76,38,41,516 1,75,14,13,90,265
not more than 1 year
More than 1 year but not
1,68,66,22,68,138 1,43,07,76,05,715 1,66,60,03,25,256 1,43,07,76,05,715
more than 5 years
More than 5 years 2,00,62,34,82,149 1,78,91,55,21,465 2,04,74,18,82,149 1,78,91,55,21,465
6,75,89,81,97,556 5,74,51,19,08,573 6,76,73,76,56,645 5,72,79,51,30,205
7.02 Loans and Advances (In and outside Bangladesh) including bills purchased and discounted
In Bangladesh 7.02.01 6,87,21,44,26,254 5,87,55,53,10,649 6,90,11,50,93,106 5,85,83,85,32,282
Outside Bangladesh 7.02.02 17,06,25,54,301 39,41,87,422 48,17,60,834 39,41,87,422
7,04,27,69,80,555 5,87,94,94,98,072 6,90,59,68,53,940 5,86,23,27,19,704
7.02.01 In Bangladesh
Loan 5,93,07,32,67,737 4,93,11,62,82,437 5,97,23,41,75,818 4,93,17,15,00,443
Cash Credit 57,22,43,14,421 57,73,33,83,751 57,22,43,14,421 57,73,33,83,751
Overdraft 21,19,45,14,909 21,32,31,00,571 22,10,37,76,306 21,70,96,88,474
Portfolio Loan to Investors 2,16,95,02,626 2,15,85,84,276 - -
Bills purchased and discounted 13,55,28,26,562 13,22,39,59,614 13,55,28,26,562 13,22,39,59,614
6,87,21,44,26,254 5,87,55,53,10,649 6,90,11,50,93,106 5,85,83,85,32,282
7.02.02 Outside Bangladesh

Loan 4,35,80,927 4,13,80,809 4,35,80,927 4,13,80,809
Cash Credit 13,78,125 13,96,275 13,78,125 13,96,275
Overdraft 13,04,31,047 13,77,80,453 13,04,31,047 13,77,80,453
Bills purchased and discounted 14,82,59,56,437 21,36,29,885 30,63,70,734 21,36,29,885
17,06,25,54,301 39,41,87,422 48,17,60,834 39,41,87,422
7.03 Loans, cash credits and overdrafts

Loan 7.03.01 5,95,17,80,56,428 4,93,15,76,63,247 5,97,27,77,56,746 4,93,21,28,81,252
Cash Credit 7.03.02 57,22,56,92,546 57,73,47,80,026 57,22,56,92,546 57,73,47,80,026
Overdraft 7.03.03 21,32,49,45,956 21,46,08,81,024 22,23,42,07,353 21,84,74,68,927
Portfolio Loan to Investors 7.03.04 2,16,95,02,626 2,15,85,84,276 - -
6,75,89,81,97,556 5,74,51,19,08,573 6,76,73,76,56,645 5,72,79,51,30,205
7.03.01 Head-wise Loans, Cash Credits and Overdrafts:

Inside Bangladesh:
Loans
Demand Loan 14,28,053 14,64,307 14,28,053 14,64,307
Small Loan 6,82,13,101 7,59,28,905 6,82,13,101 7,59,28,905
House Building Loan (General) 7,16,61,34,491 6,37,79,63,152 7,16,61,34,491 6,37,79,63,152
Staff Loan 7.03.01.1 65,04,03,71,600 61,93,63,14,441 65,04,03,71,600 61,93,63,14,441
Special Small Loan Program 85,39,250 1,17,17,587 85,39,250 1,17,17,587
Loan Under S.B Industrial
38,50,13,88,144 34,22,53,83,044 38,50,13,88,144 34,22,53,83,044
Credit Scheme (Project)
Loan under External Credit Program 94,633 3,65,28,380 94,633 3,65,28,380
Sonali Credit Finance 38,13,69,740 25,92,42,343 38,13,69,740 25,92,42,343
Loan under'SB Agro Based
7,93,81,99,154 8,18,68,50,819 7,93,81,99,154 8,18,68,50,819
Industrial Cr.Scheme
Agricultural Loan 50,86,67,21,413 46,60,68,89,179 50,86,67,21,413 46,60,68,89,179
Micro Credit (SFL Scheme
12,50,60,59,877 12,19,75,20,101 12,50,60,59,877 12,19,75,20,101
plus RSTL Scheme)
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Loan under Imported
1,82,99,06,242 1,88,69,10,694 1,82,99,06,242 1,88,69,10,694
Merchandise (LIM)
Loan against Trust Receipt 94,30,33,70,410 45,76,54,75,529 94,30,33,70,410 45,76,54,75,529
Forced Loan against Back to Back L/C 25,00,40,53,308 24,58,93,44,033 25,00,40,53,308 24,58,93,44,033
Loan for L/C under WES. 1,36,339 1,36,339 1,36,339 1,36,339
Current Account Barter
93,26,06,463 93,26,06,463 93,26,06,463 93,26,06,463
(Debit Balance)
Bridge Finance 2,99,09,91,349 2,99,28,66,505 2,99,09,91,349 2,99,28,66,505
House Building Loan (Govt.Employees) 1,70,13,34,335 76,27,68,795 1,70,13,34,335 76,27,68,795
House Building Loan (Public
4,44,10,688 - 4,44,10,688 -
University & UGC)
Small Business Loan Scheme 1,04,86,32,133 1,19,25,79,160 1,04,86,32,133 1,19,25,79,160
Lease Finance 2,62,39,228 2,62,39,228 2,62,39,228 2,62,39,228
Personal Loan 1,02,50,80,46,875 80,03,41,70,640 1,02,50,80,46,875 80,03,41,70,640
Term Loan to Freedom Fighter 25,58,27,51,932 19,25,20,22,541 25,58,27,51,932 19,25,20,22,541
Special F.C Term Loan to Bangladesh Biman 48,06,69,50,930 50,63,62,24,126 48,06,69,50,930 50,63,62,24,126
Special F.C Term Loan to Payra Port Authority 2,59,41,99,333 - 2,59,41,99,333 -
Special F.C Term Loan to Sonali Bank (UK) Limited - - 4,11,84,00,000 -
Foreign Education Loan Program 7,72,473 7,71,973 7,72,473 7,71,973
SME Finance (Term Loan to Service) 34,02,81,73,345 31,37,66,65,916 34,02,81,73,345 31,37,66,65,916
SME Finance (Term Loan Industries) 48,01,25,115 38,15,24,524 48,01,25,115 38,15,24,524
SME Finance (Working
Capital to Industries 40,01,62,75,666 39,55,27,12,034 40,01,62,75,666 39,55,27,12,034
Services Trading)
SME Loan Under B.B
Revolving Re-Finance for 3,94,82,19,074 3,09,06,92,960 3,94,82,19,074 3,09,06,92,960
COVID-19 (Continuous)
SME Loan Under B.B
Revolving Re-Finance for 15,03,89,573 - 15,03,89,573 -
COVID-19 (Term)
Working Capital under
Stimulus Pack. for Indus. & 12,22,28,35,303 10,95,30,54,369 12,22,28,35,303 10,95,30,54,369
Serv. for COVID-19
Special Term Loan against Fund
Received from B.B for Worker's
16,53,03,921 18,77,17,167 16,53,03,921 18,77,17,167
Salary of Export Oriented Indus.
Under COVID-19
Agri. Loan disbursed at Conce.
2,49,96,81,515 1,86,56,12,697 2,49,96,81,515 1,86,56,12,697
Intt. Rate against COVID-19
Agri. Loan against Special
Stimulus Refinance Sch.for 1,54,81,96,387 1,00,20,18,662 1,54,81,96,387 1,00,20,18,662
COVID-19
Micro Credit Loan Under
B.B Revolving Refi. Sch. for 13,37,74,621 1,26,50,249 13,37,74,621 1,26,50,249
COVID-19
Special Loan - Advance rent
11,81,88,872 10,14,12,987 11,81,88,872 10,14,12,987
(Interest Bearing)
Term Loan to Banks & NBFIs - 2,00,00,00,000 - 2,00,00,00,000
Long term loan at prevailing
- - 4,25,08,082 5,52,18,006
rate of Interest (SECI)
Forced Loan A/C-EDF 2,53,24,02,423 2,50,61,14,804 2,53,24,02,423 2,50,61,14,804
Rural Housing Finance -
19,75,82,731 15,22,88,263 19,75,82,731 15,22,88,263
Sonali Neer A/C
Loan Against Food
5,54,23,40,059 1,65,14,93,441 5,54,23,40,059 1,65,14,93,441
Procurement Bill A/C
5,92,69,64,10,097 4,92,82,18,76,356 5,96,85,73,18,179 4,92,87,70,94,362
260
Amount in Taka
2021 2020 2021 2020
Islamic Banking Window

Bai Muazzal -House Hold
37,68,57,640 29,44,06,081 37,68,57,640 29,44,06,081
Durable Scheme
5,93,07,32,67,737 4,93,11,62,82,437 5,97,23,41,75,818 4,93,17,15,00,443
Outside Bangladesh
(Overseas Branches)
Loan
Demand Loan - 1,51,21,820 - 1,51,21,820
Small Loan - - - -
House Building Loan (Staff) 4,35,80,927 2,62,58,989 4,35,80,927 2,62,58,989
4,35,80,927 4,13,80,809 4,35,80,927 4,13,80,809
5,95,17,80,56,428 4,93,15,76,63,247 5,97,27,77,56,746 4,93,21,28,81,252
7.03.01.1 Staff Loan

Staff House Building Loan 61,55,21,56,768 58,17,56,74,244 61,55,21,56,768 58,17,56,74,244
Staff Loan (Others) 3,48,82,14,832 3,76,06,40,197 3,48,82,14,832 3,76,06,40,197
65,04,03,71,600 61,93,63,14,441 65,04,03,71,600 61,93,63,14,441
7.03.02 Cash Credits:

In Bangladesh
Cash Credit General (Hypo) 5,17,07,48,993 5,07,88,31,317 5,17,07,48,993 5,07,88,31,317
Cash Credit General (Pledge) 68,75,14,251 78,31,59,268 68,75,14,251 78,31,59,268
Working Capital to
34,70,09,02,941 34,49,67,18,482 34,70,09,02,941 34,49,67,18,482
Industries. (Hypo)
Working Capital to
1,98,89,25,951 2,14,40,24,609 1,98,89,25,951 2,14,40,24,609
Industries. (Pledge)
Working Capital to Agro
6,89,62,47,491 7,41,38,86,223 6,89,62,47,491 7,41,38,86,223
based Ind. (Hypo)
Working Capital to Agro
3,37,88,20,247 3,40,71,59,162 3,37,88,20,247 3,40,71,59,162
based Ind. (Pledge)
Packing Cash Credit 4,40,11,54,545 4,40,96,04,690 4,40,11,54,545 4,40,96,04,690
57,22,43,14,421 57,73,33,83,751 57,22,43,14,421 57,73,33,83,751
Outside Bangladesh:
Cash Credit 13,78,125 13,96,275 13,78,125 13,96,275
Total Cash Credit 57,22,56,92,546 57,73,47,80,026 57,22,56,92,546 57,73,47,80,026
7.03.03 Overdrafts etc.:

Overdraft Loan (In Bangladesh) 21,19,45,14,909 21,32,31,00,571 22,10,37,76,306 21,70,96,88,474
21,19,45,14,909 21,32,31,00,571 22,10,37,76,306 21,70,96,88,474
Overdraft Loan (Outside Bangladesh) 13,04,31,047 13,77,80,453 13,04,31,047 13,77,80,453
Total Overdrafts etc. 21,32,49,45,956 21,46,08,81,024 22,23,42,07,353 21,84,74,68,927
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
7.03.04 Portfolio Loan to Investors

Opening balance 2,15,85,84,276 2,17,05,10,950 - -
Add: Charged apply during the year 25,49,78,015 6,93,95,976 - -
Add: Loan disbursed during the year 1,27,75,59,274 34,27,28,613 - -
Less: Loan recovered
(1,52,16,18,939) (42,40,51,263) - -
during the year
Total 2,16,95,02,626 2,15,85,84,276 - -
7.04 Bills Purchased and Discounted (Excluding treasury bills)

Payable Inside Bangladesh 7.04.01a 13,55,28,26,562 13,22,39,59,614 13,55,28,26,562 13,22,39,59,614
Payable Outside
7.04.01b 14,82,59,56,437 21,36,29,885 30,63,70,734 21,36,29,885
Bangladesh
Total 28,37,87,82,999 13,43,75,89,499 13,85,91,97,296 13,43,75,89,499
7.04.01 Bill Discounted and Purchased

7.04.01a In Bangladesh
Payment against
8,27,20,60,694 8,16,47,41,650 8,27,20,60,694 8,16,47,41,650
Documents (PAD)
Loan against Inland Bills 79,68,40,710 16,57,38,226 79,68,40,710 16,57,38,226
Inland Bills Purchased 2,34,12,89,373 2,33,76,56,749 2,34,12,89,373 2,33,76,56,749
Payment against
77,42,59,235 1,13,08,27,216 77,42,59,235 1,13,08,27,216
Documents (PAD) A/C-EDF
Foreign Bills Purchased/
- 5,22,61,638 - 5,22,61,638
Negotiated (Clean)
1,36,83,76,550 1,37,27,34,135 1,36,83,76,550 1,37,27,34,135
Negotiated (Documents)
Total 13,55,28,26,562 13,22,39,59,614 13,55,28,26,562 13,22,39,59,614
7.04.01b Outside Bangladesh

Negotiated (Documents) of 30,63,70,734 21,36,29,885 30,63,70,734 21,36,29,885
Overseas Branches
Negotiated of Sonali Bank 14,51,95,85,703 - - -
(UK) Ltd.
Total 14,82,59,56,437 21,36,29,885 30,63,70,734 21,36,29,885
7.04.02 Maturity grouping bills purchased and discounted

Bills purchased and discounted
Not more than 1 Month 3,97,76,73,635 8,03,02,58,203 3,97,76,73,635 8,03,02,58,203
More than 1 month but not
44,95,54,679 47,09,91,377 44,95,54,679 47,09,91,377
more than 3 Months
More than 3 months but
18,59,95,79,608 4,50,58,04,404 4,07,99,93,905 4,50,58,04,404
not more than 6 Months
More than 6 Months 5,35,19,75,076 43,05,35,514 5,35,19,75,076 43,05,35,514
Total 28,37,87,82,999 13,43,75,89,499 13,85,91,97,296 13,43,75,89,499
262
Amount in Taka
2021 2020 2021 2020
7.05 Net Performing loans and advances / Investments

Gross loans and advances / investments 7,04,27,69,80,555 5,87,94,94,98,072 6,90,59,68,53,940 5,86,23,27,19,704
Non-performing loans and 7.09.01 (1,19,58,52,90,407) (1,07,67,39,00,178) (1,19,58,52,90,407) (1,07,67,39,00,178)
advances / investments
Total 5,84,69,16,90,147 4,80,27,55,97,894 5,71,01,15,63,533 4,78,55,88,19,527
7.06 Loans and advances / Investments on the basis of significant concentration excluding bills purchased and
discounted
Advances to allied concerns of directors - -
Advances to Chief Executive and Other Senior Executives 8,88,71,307 6,70,89,213
Advances to the Customers Group (Amounting more than 10 % of Bank's Paid up Capital) 2,43,31,54,40,732 22,03,29,32,747
Other Customers 3,68,29,29,73,005 4,88,75,87,93,804
Advance to Staff 65,04,03,71,600 61,93,63,14,441
6,76,73,76,56,645 5,72,79,51,30,205
7.07 Number of clients, with amount of outstanding and classified loans to whom loans and advances sanctioned
more than 10% of Paid up capital
Disclosures on Large loan i.e. Loan sanctioned to any individual or enterprise or any organization of a group
amounting to 10% or more of the Bank's Paid up Capital and classified amount therein and measures taken for
recovery of such loan have been furnished as under.
No .of Client 19 19
Paid up Capital 45,30,00,00,000 45,30,00,00,000
10% of Paid up capital 4,53,00,00,000 4,53,00,00,000
Measures taken for recovery of Classified Loan
Bank as a whole takes following steps to recover its classified loans and advances
a) Sending letters and remind to customers.
b) Recovery cell including top management level holds discussion with the clients to recover the loans.
c) Maintain special recovery arrangement through loan fair, client gathering, recovery campaign,etc.
d) Legal proceedings and quick settlement.
e) Providing incentives to employee for cash recovery from classified and written-off loans.
7.07(a) During the year 2021, there are large amount of outstanding and classified loans, to whom loans and advances
sanctioned more than 10% of Paid up Capital of the Bank.
Summary of Borrower are shown below :
Outstanding Classified Classification Outstanding as
Name of the Borrower
amount amount status % of Total Loan
Beximco Group 19,174,666,933 - UC, SMA 2.78%
Hall Mark Group 17,130,284,254 17,130,284,254 BL,BLW 2.48%
T & Brothers Group 4,902,648,493 4,902,648,493 BL 0.71%
Thermex Group 13,101,468,731 - UC 1.90%
Biman Bangladesh Airlines Limited 55,721,048,763 - UC 8.07%
Bangladesh Chemical Industries Corporation (BCIC) 25,659,544,874 - UC 3.72%
Bangladesh Agricultural Development
46,845,331,823 - UC 6.78%
Corporation (BADC)
Bangladesh Water Development Board (BWDB) 9,692,571 - UC 0.00%
Bangladesh Sugar & Food Ind.Cor. (BSFIC) 47,228,615,291 - UC 6.84%
Trading Corporation of Bangladesh (TCB) 7,999,798,940 - UC 1.16%
Directorate General of Food (DGF) 5,542,340,059 1,435,188,984 UC,BL 0.80%
Total 243,315,440,732 23,468,121,731 35%
Annual Report 2021

Amount in Taka
2021
Non Funded
Funded Loan Total Loan Status of Loan
Loan
7.07(b) Details about the Group / Single Borrower
A. Group Borrower
Beximco Group
UC=31,900,000
Beximco Limited 15,10,08,86,001 3,19,00,000 15,13,27,86,001
SMA= 15,100,886,001
Beximco Synthetic Ltd. 79,75,27,353 - 79,75,27,353 UC=797,527,353
UC=6,000,000
GMG Airlines Ltd. 2,44,48,07,292 60,00,000 2,45,08,07,292
SMA= 2,444,807,292
Shinepukur Ceramic Ltd. 83,14,46,287 13,90,98,279 97,05,44,566 UC=831,446,287
Sub Total 19,17,46,66,933 17,69,98,279 19,35,16,65,212
Hall Mark Group
UC=4,080,212,071
M/S Hall Mark Fashion Limited 3,43,59,18,858 4,08,02,12,071 7,51,61,30,929
BL= 3,435,918,858
UC=842,526,976
M/s Farhan Fashion Ltd 26,30,920 84,25,26,976 84,51,57,896
BL=2,630,920
UC=192,106,217,
M/s Hall Mark Design Wear Limited 39,09,74,352 19,21,06,217 58,30,80,569
BL=390,974,352
M/s Jishan Knit Composite Ltd 4,19,52,985 - 4,19,52,985 BL=41,952,985
M/s Perfect Embroidery Ltd 4,62,52,176 - 4,62,52,176 BL=46,252,176
M/s Boby Flatbed Printing Ltd 11,41,65,705 - 11,41,65,705 BL=114,165,705
M/s Hall Mark Accessories Ltd 8,27,21,345 - 8,27,21,345 BL=82,721,345
M/s Islam Fashion Ltd - 1,18,20,63,735 1,18,20,63,735 UC=1,182,063,735
M/s Don Apparels Ltd - 89,47,86,922 89,47,86,922 UC=894,786,922
M/s Mahmud Apparels Ltd - 79,11,75,604 79,11,75,604 UC=791,175,604
M/s Hall Mark Spinning Mills Ltd 72,42,00,477 - 72,42,00,477 BL=724,200,477
UC=17,054,537
M/s Boby Fashion Ltd 23,82,35,821 1,70,54,537 25,52,90,358
BLW=238,235,821
M/s Hall Mark Denim Composite Ltd 12,89,26,798 - 12,89,26,798 BLW=128,926,798
M/S Max Spinning Mills 5,25,60,38,600 - 5,25,60,38,600 BLW=5,256,038,600
M/S Anowara Spinning Mills 4,74,35,58,400 - 4,74,35,58,400 BLW=4,743,558,400
M/s Wall-Mart Fashion Limited 1,70,04,51,311 - 1,70,04,51,311 BLW=1,700,451,311
M/s Hall Mark Style Ltd 7,11,23,997 - 7,11,23,997 BLW=71,123,997
M/s Boby Denim Composite Ltd 7,04,34,740 - 7,04,34,740 BLW=70,434,740
M/s Hall Mark Knit Composite Ltd 4,41,56,437 - 4,41,56,437 BLW=44,156,437
M/s Hall Mark Knitting & Dyeing Ltd 2,94,08,207 - 2,94,08,207 BLW=29,408,207
M/s Hall Mark Packaging Ltd 91,33,125 - 91,33,125 BLW=9,133,125
Sub Total 17,13,02,84,254 7,99,99,26,062 25,13,02,10,316
T & Brothers Group
UC=1,611,832,723
M/s T & Brother Knit Composite Ltd 2,23,14,86,655 1,61,18,32,723 3,84,33,19,378
BL=2,231,486,655
M/s Exper Take Ltd 1,75,69,16,409 - 1,75,69,16,409 BL=1,756,916,409
UC=514,381,651
M/s Dress Me Fashions Ltd 78,08,95,429 51,43,81,651 1,29,52,77,080
BL=780,895,429
LNS Accessories 13,33,50,000 - 13,33,50,000 BL=133,350,000
Sub Total 4,90,26,48,493 2,12,62,14,374 7,02,88,62,867
264
Amount in Taka
2021
Non Funded
Funded Loan Total Loan Status of Loan
Loan
Thermex Group
Thermax Check Fabrics Ltd. 3,44,96,09,279 - 3,44,96,09,279 UC=3,449,609,279
Indigo Spinning Ltd. 3,86,64,12,189 3,61,08,265 3,90,25,20,454 UC=3,866,412,189
Thermax Melange Spinning Mills Ltd. 2,64,09,20,323 15,54,311 2,64,24,74,634 UC=2,640,920,323
Thermax Knit Yarn Ltd 2,19,04,59,418 - 2,19,04,59,418 UC=2,190,459,418
Thermax Spinning Limited 95,40,67,522 - 95,40,67,522 UC=954,067,522
Sub Total 13,10,14,68,731 3,76,62,576 13,13,91,31,307
Total=A 54,30,90,68,411 10,34,08,01,291 64,64,98,69,702
B. Single Borrower
Bangladesh Atomic Energy

- 6,08,24,91,96,642 6,08,24,91,96,642 -
Commission (Roopur NNP Project)
Directorate General of Defense

- 34,85,45,77,928 34,85,45,77,928 -
Purchase (DGDP)
Bangladesh Railway - 16,82,44,51,660 16,82,44,51,660 -
Civil Aviation Authority - 4,77,67,88,569 4,77,67,88,569 -
Chittagong Port Authority - 4,80,62,77,887 4,80,62,77,887 -
Department of Immigration and Passport (DIP) - 5,66,69,66,904 5,66,69,66,904 -
Bangladesh Ordinance Factory (BOF) - 5,70,39,30,009 5,70,39,30,009 -
Bangladesh Inland Water Transport

- 6,01,77,09,521 6,01,77,09,521 -
Corporation (BIWTC)
Bangladesh Petroleum Exploration &

- 6,28,20,18,100 6,28,20,18,100 -
Production Co. Ltd.(BAPLX)
Bangladesh Power Development

- 56,34,51,14,619 56,34,51,14,619 -
Board (BPDB)
Bangladesh Petroleum Corporation (BPC) - 7,39,08,30,927 7,39,08,30,927 -
Biman Bangladesh Airlines Limited 55,72,10,48,763 - 55,72,10,48,763 UC=55,721,048,763
Bangladesh Chemical Industries

25,65,95,44,874 18,37,15,78,804 44,03,11,23,678 UC=25,659,544,874
Corporation (BCIC)
Bangladesh Agricultural
46,84,53,31,823 19,18,43,83,126 66,02,97,14,949 UC=46,845,331,823
Development Corporation (BADC)
Bangladesh Water Development

96,92,571 5,65,63,49,284 5,66,60,41,855 UC=9,692,571
Board (BWDB)
Bangladesh Sugar & Food Ind.Cor. (BSFIC) 47,22,86,15,291 3,99,88,013 47,26,86,03,304 UC=47,228,615,291
Trading Corporation of Bangladesh (TCB) 7,99,97,98,940 8,86,78,91,857 16,86,76,90,797 UC=7,999,798,940
UC=4,107,151,076
Directorate General of Food (DGF) 5,54,23,40,059 18,26,53,93,548 23,80,77,33,607
BL=1,435,188,984
Total=B 1,89,00,63,72,321 8,27,30,34,47,398 10,16,30,98,19,719
Grand Total (A+B) 2,43,31,54,40,732 8,37,64,42,48,689 10,80,95,96,89,421
Annual Report 2021

No.of Amount in Taka % of Total Loan

Branches 2021 2020 2021 2020
7.07.01 Restructured Loan
Name of the Borrower Restructured Amount Payment Tenure
1. Beximco Limited
(i) Demand Loan -
12 years (within 30-06-2027)
(ii) Term Loan 15,10,08,86,001
Total 15,10,08,86,001
Urban 500 5,44,91,70,64,298 4,62,92,49,97,204 78.91 78.97
Rural 727 1,44,82,11,71,169 1,22,61,91,28,997 20.97 20.92
Sub Total 1227 6,89,73,82,35,466 5,85,54,41,26,201 99.874 99.883
Outside Bangladesh
Kolkata & Siliguri 48,17,60,834 39,41,87,422 0.08 0.07
Islamic Banking Window 2 37,68,57,640 29,44,06,081 0.06 0.05
Total 1229 690,596,553, 940 586,232,719,704 100 100
Head office is included in Urban area.
7.08.01 In Bangladesh (GM's office & District wise)

No.of
Dhaka GM's Office
Branches
Dhaka (1 & 2) 125 3,64,50,65,65,609 3,02,18,75,52,763 52.781 51.547
Gazipur 23 4,47,07,19,074 4,01,22,70,001 0.647 0.684
Munshiganj 17 1,83,67,29,814 1,71,13,22,489 0.266 0.292
Narayanganj 19 3,34,50,67,651 3,25,38,52,458 0.484 0.555
Narsingdi 20 4,02,34,06,710 3,47,22,77,311 0.583 0.592
Manikganj 11 1,73,19,21,350 1,60,94,21,985 0.251 0.275
Sub Total 215 3,79,91,44,10,209 3,16,24,66,97,007 55.012 53.946
Chattogram GM's Office

Chattogram North 27 6,69,41,55,798 3,20,00,30,923 0.969 0.546
Chattogram South 29 14,84,42,70,125 17,52,42,71,477 2.149 2.989
Rangamati 23 5,55,69,46,875 4,58,40,02,888 0.805 0.782
Bandarbon 7 1,37,99,23,030 1,15,58,16,111 0.200 0.197
Cox's Bazar 10 2,71,25,10,246 2,50,73,14,607 0.393 0.428
Patiya 14 1,49,45,05,568 1,28,27,76,998 0.216 0.219
Sub Total 110 32,68,23,11,642 30,25,42,13,005 4.732 5.161
Cumilla GM's Office

Brahmanbaria 24 3,32,41,63,202 2,80,50,44,576 0.481 0.478
Chandpur 20 2,89,96,03,989 2,49,66,12,645 0.420 0.426
Cumilla 38 7,71,45,51,050 6,73,48,99,599 1.117 1.149
Feni 17 1,88,68,06,978 1,64,79,10,601 0.273 0.281
Noakhali 28 4,26,24,99,865 3,77,65,51,370 0.617 0.644
Laxmipur 12 2,56,59,19,907 2,30,02,70,684 0.372 0.392
Sub Total 139 22,65,35,44,991 19,76,12,89,475 3.280 3.371
Barishal GM's Office

Barishal 37 7,89,70,13,271 6,80,73,20,868 1.144 1.161
Patuakhali 22 5,59,44,32,648 4,79,37,11,654 0.810 0.818
266

Particulars Branches 2021 2020 2021 2020
Bhola 10 2,02,80,08,744 1,58,99,11,182 0.294 0.271

Pirojpur 10 2,63,43,34,143 2,19,57,22,981 0.381 0.375
Sub Total 79 18,15,37,88,806 15,38,66,66,685 2.629 2.625
Faridpur GM's Office

Chuadanga 19 3,84,73,21,305 3,58,82,47,955 0.557 0.612
Faridpur 23 7,65,73,72,760 6,65,42,59,108 1.109 1.135
Kushtia 22 5,54,56,48,417 4,91,93,73,378 0.803 0.839
Madaripur 17 3,56,96,20,449 2,86,93,09,204 0.517 0.489
Gopalgonj 12 2,31,35,24,863 1,72,59,96,287 0.335 0.294
Rajbari 12 1,69,67,91,778 1,38,08,06,889 0.246 0.236
Sub Total 105 24,63,02,79,572 21,13,79,92,822 3.567 3.606
Khulna GM's Office

Jashore 35 7,65,84,04,654 6,51,60,56,023 1.109 1.112
Jhenaidah 23 9,18,42,19,533 7,85,70,93,473 1.330 1.340
Khulna 24 28,94,48,17,865 27,45,36,61,496 4.191 4.683
Satkhira 17 3,21,69,09,234 2,66,55,07,316 0.466 0.455
Bagerhat 14 2,90,78,68,299 2,42,51,84,719 0.421 0.414
Narail 11 2,39,76,96,064 2,00,56,78,231 0.347 0.342
Sub Total 124 54,30,99,15,648 48,92,31,81,258 7.864 8.345
Mymensingh GM's Office

Jamalpur 19 8,01,83,49,493 7,25,32,64,507 1.161 1.237
Kishoregonj 17 3,37,36,19,268 2,83,00,71,375 0.489 0.483
Mymensingh 25 7,98,20,63,616 6,90,21,77,088 1.156 1.177
Tangail 32 6,08,83,20,419 5,30,86,70,541 0.882 0.906
Netrokona 14 5,82,69,39,082 4,79,48,10,046 0.844 0.818
Sherpur 9 4,00,32,64,316 3,12,76,37,617 0.580 0.534
Sub Total 116 35,29,25,56,195 30,21,66,31,174 5.110 5.154
Rajshahi GM's Office

Bogura 32 8,14,96,56,062 7,07,78,92,480 1.180 1.207
Naogaon 19 5,77,27,54,612 4,88,52,40,045 0.836 0.833
Pabna 18 5,32,17,35,158 4,34,30,61,912 0.771 0.741
Rajshahi 24 10,19,75,86,509 8,75,08,49,987 1.477 1.493
Sirajganj 21 5,03,97,00,752 4,09,83,33,063 0.730 0.699
Chapai Nawabganj 8 3,18,47,78,466 2,76,52,53,596 0.461 0.472
Joypurhat 8 4,82,18,84,173 4,30,31,41,603 0.698 0.734
Natore 13 7,68,25,73,598 6,86,95,51,595 1.112 1.172
Sub Total 143 50,17,06,69,330 43,09,33,24,280 7.265 7.351
Rangpur GM's Office

Dinajpur 32 12,44,98,42,733 10,55,45,30,373 1.803 1.800
Gaibandha 16 9,28,66,64,635 7,98,81,29,274 1.345 1.363
Kurigram 17 7,77,10,83,136 6,09,46,81,336 1.125 1.040
Rangpur 19 11,80,48,48,638 10,09,22,66,964 1.709 1.722
Nilphamari 10 6,61,53,85,939 5,35,03,45,426 0.958 0.913
Thakurgaon 22 12,77,11,12,694 11,35,00,05,000 1.849 1.936
Sub Total 116 60,69,89,37,774 51,42,99,58,372 8.789 8.773
Sylhet GM's Office
Annual Report 2021


Particulars Branches 2021 2020 2021 2020
Moulvibazar 22 2,49,55,15,114 2,02,71,04,267 0.361 0.346

Sylhet 32 3,53,82,59,559 2,81,44,10,508 0.512 0.480
Habiganj 13 2,21,74,72,731 1,75,87,39,792 0.321 0.300
Sunamganj 13 2,98,05,73,896 2,49,39,17,556 0.432 0.425
Sub Total 80 11,23,18,21,300 9,09,41,72,123 1.626 1.551
Total 1227 6,89,73,82,35,466 5,85,54,41,26,201 99.88 99.88
Kolkata & Siliguri 2 48,17,60,834 39,41,87,422 0.08 0.07

Islamic Banking Window 37,68,57,640 29,44,06,081 0.06 0.05
Total Loans & Advances 1229 6,90,59,68,53,940 5,86,23,27,19,704 100 100
Head office & Islamic Banking Window is included in Total Loans & Advances
7.08.02 Divisional Office wise

In Bangladesh
Dhaka Division-1 119 3,11,29,29,70,988 2,57,19,06,44,865 45.08 43.87
Dhaka Division-2 96 68,62,14,39,221 59,05,60,52,141 9.94 10.07
Barishal 79 18,15,37,88,806 15,38,66,66,685 2.63 2.62
Chattagram 110 32,68,23,11,642 30,25,42,13,005 4.73 5.16
Cumilla 139 22,65,35,44,991 19,76,12,89,475 3.28 3.37
Faridpur 105 24,63,02,79,572 21,13,79,92,822 3.57 3.61
Khulna 124 54,30,99,15,648 48,92,31,81,258 7.86 8.35
Mymensingh 116 35,29,25,56,195 30,21,66,31,174 5.11 5.15
Rajshahi 143 50,17,06,69,330 43,09,33,24,280 7.26 7.35
Rangpur 116 60,69,89,37,774 51,42,99,58,372 8.79 8.77
Sylhet 80 11,23,18,21,300 9,09,41,72,123 1.63 1.55
1227 6,89,73,82,35,466 5,85,54,41,26,201 99.87 99.88
Kolkata & Siliguri 2 48,17,60,834 39,41,87,422 0.08 0.07

Islamic Banking Window 37,68,57,640 29,44,06,081 0.06 0.05
Total 1229 6,90,59,68,53,940 5,86,23,27,19,704 100 100
7.09 Details of Provision required and held for loans and advances:
Amount in Taka
Particulars
2021 2020
A. Required Provision for loans and advances:
For Classified Loan 63,28,02,25,184 56,79,22,94,264
For Loan against which writ has been filed 20,59,58,464 87,28,09,762
For Overseas Branches Classified Loan 4,22,07,750 4,03,47,571
For Unclassified Loan 12,14,70,13,409 12,45,87,66,241
For Overseas Branches Unclassified Loan 22,98,492 15,01,281
75,67,77,03,298 70,16,57,19,119
B. Provision Made for loans and advances:
For Classified Loan including writ 63,48,61,83,648 57,66,51,04,026
For Overseas Branches Classified Loan 4,22,07,750 4,03,47,571
For Unclassified Loan 12,14,70,13,409 12,45,87,66,241
For Overseas Branches Unclassified Loan 22,98,492 15,01,281
75,67,77,03,298 70,16,57,19,119
268
7.09.01 Classification of advances as per Bangladesh Bank circular
% of Total Loans Amount in Taka

Particulars
2021 2020 2021 2020
C. Provision Surplus/(Deficit)
For Classified Loan including writ - -
For Overseas Branches Classified Loan - -
For Unclassified Loan - -
Provision Surplus/(Deficit) - -
Standard (Including Staff Loan) 77.47% 73.94% 5,34,97,20,15,619 4,33,46,62,69,707
Special Mention Account (SMA) 5.10% 7.59% 35,23,15,10,725 44,46,97,66,851
Islamic Windows 0.05% 0.05% 37,57,25,667 28,19,00,575
Overseas Branches 0.06% 0.06% 43,23,11,522 34,08,82,394
Sub Total 82.68% 81.63% 5,71,01,15,63,532 4,78,55,88,19,526
Classified
Substandard 0.32% 1.45% 2,23,71,25,465 8,47,17,98,091
Doubtful 0.25% 0.70% 1,69,28,90,849 4,10,40,79,126
Bad/Loss 16.74% 16.21% 1,15,60,46,92,809 95,03,22,12,426
Islamic Windows 0.00% 0.00% 11,31,973 1,25,05,506
Overseas Branches 0.01% 0.01% 4,94,49,312 5,33,05,028
Sub Total 17.32% 18.37% 1,19,58,52,90,407 1,07,67,39,00,178
TOTAL 100.00% 100.00% 6,90,59,68,53,940 5,86,23,27,19,704
* Classified Portion of Loans and Advances of Overseas Branch was Correctly incorporated in to the Classified Amount.
7.10 Particulars of required provision for loans and advances / investments status
Base for Required Provision

Particulars provision Rate (%)
2021 2021 2020
A General provision
Standard & SMA

i) Housing Finance 8,98,68,82,450 1.00% 8,98,68,825 7,21,46,148
ii) Loan for Professional 1,41,31,33,037 2.00% 2,82,62,661 2,68,94,987
iii) Consumer Financing 1,03,03,10,95,313 2.00% 2,06,06,21,906 1,60,17,74,773
iv) Short Term Agri & Micro 55,76,59,26,348 1.00% 55,76,59,263 46,60,87,557
v) Small Medium Enterprise 47,81,06,27,721 0.25% 11,95,26,570 11,54,30,930
Financing
vi) Provision for BRPD 56/2020 76,41,00,04,532 1.00% 76,41,00,045 1,02,81,06,037
vii) Provision for BRPD 50/2021 9,44,56,11,748 2.00% 4,62,83,49,756 6,04,99,89,832
viii) Provision for BRPD 52/2021 18,95,35,21,209 1.50% 37,26,48,130 -
ix) Provision for Staff Loan 64,53,51,31,524 1.00% 64,53,51,315 61,55,80,976
x) Others 2,79,39,43,44,005 1.00% 2,87,33,49,523 2,47,71,16,990
xi) Islamic Windows 37,57,25,666 1.00% 72,75,416 56,38,011
xii) Overseas Branches 37,56,61,733 1.00% 22,98,492 15,01,281
Sub Total 6,66,49,76,65,286 12,14,93,11,901 12,46,02,67,522
B Specific provision Status
Sub-standard
i) Short term Micro Credit 87,54,57,656 5.00% 5,48,29,381 8,51,31,461
ii) Others 2,36,02,58,355 20.00% 47,20,51,671 63,47,25,223
Doubtful
i) Short term Micro Credit 84,19,48,538 5.00% 6,68,37,250 7,84,21,553
ii) Others 7,72,48,154 50.00% 3,86,24,077 24,88,13,045
Annual Report 2021

Base for Required Provision

Particulars provision Rate (%) 2021 2020
2021
Bad / Loss
i) Domestic Branches 67,37,05,56,706 100.00% 62,64,67,50,832 55,73,26,97,476
Islamic Windows 11,31,973 100.00% 11,31,973 1,25,05,506
Overseas Branches 4,22,07,750 100.00% 4,22,07,750 4,03,47,571
71,56,88,09,132 63,32,24,32,933 56,83,26,41,835
C For Loan against which writ has been filed 20,59,58,464 87,28,09,762
Total Required Provision for Loans & Advances (A+B+C) 75,67,77,03,298 70,16,57,19,119
7.10.01 In response to Bank’s request #SBL/HO/CAD(Op)/Basel-III/Capital/385 dated 26 April 2022 to Bangladesh

Bank regarding maintenance of provisions for loans & advances for 2021, Bangladesh Bank vide its letter no-
DOS(CAMS)1157/01(II)-C/2022-2299 dated 28 April 2022 has given certain directives to the Bank to maintain required
provision against all unclassified and classified loans & advances as on 31 December 2021. As per said directives,
the Bank has calculated the required provision against unclassified and classified loans & advances for which Bank
maintained provision amounting taka 7,567.77 crore by relishing deferral of taka 2,546.61 crore accordingly.
Amount in Taka
Particulars Notes
2021 2020
7.11 Industry-Wise Segment of Loan and advances
Govt. of BD Food (Salt & Rice) 4,13,97,00,000 1,43,51,88,984
Barter Accounts 93,26,06,463 93,26,06,463
Food Procurement Bills 5,54,23,40,059 1,65,14,93,441
Rural Credit & Agri. Loan 40,23,21,00,000 61,68,46,90,888
Trading 67,47,77,00,000 61,12,67,00,000
Foreign Exchange (LTR/LIM/PAD/FBPN, etc) 29,27,88,00,000 31,71,74,00,000
Garments Industry 19,68,83,00,000 12,33,25,00,000
Textile Industry 35,69,73,00,000 40,39,95,00,000
Fish Processing 3,11,47,00,000 3,57,21,00,000
Cold Storage 4,60,30,00,000 4,30,78,00,000
Real Estate (House Building) 8,61,88,00,000 6,11,30,00,000
Jute Industry 7,57,17,00,000 7,45,46,00,000
Tannery Industry 2,00,80,00,000 2,00,62,00,000
Bricks & Tiles 61,62,00,000 87,54,00,000
Cottage Industries 35,49,00,000 38,32,000
Food Staff 4,71,11,00,000 5,79,36,00,000
Pharma (Chemical/Plastic) 47,21,00,000 37,21,81,919
Aluminum & Other Metals 18,49,00,000 18,46,00,000
Engineering 9,34,00,000 9,60,00,000
Iron & Ispat Industry 9,07,80,00,000 9,28,86,00,000
Paper Products/Printing Packaging 4,71,38,00,000 4,68,35,00,000
Glass & Ceramic 1,26,73,00,000 1,73,84,00,000
Biman Bangladesh Airlines Ltd. 55,72,10,00,000 50,63,62,24,126
Others (OD/Staff/IT/BADC/BSEC/ BJMC/BCIC/BTMC/BSFIC/TCB/BWDB/ 3,84,47,91,07,418 2,77,82,66,01,883
SB-UK/Payra/PU/Ov. Branches)
Total 6,90,59,68,53,940 5,86,23,27,19,704
7.12 Sector wise Loans and Advances
Government 7.12.01 6,47,49,46,521 7,22,81,00,000
Other Public 1,94,08,47,10,507 1,24,69,52,00,000
7.12.02
(Semi Govt. Autonomous)
Private 7.12.03 4,89,17,85,78,438 4,53,62,08,26,201
6,89,73,82,35,466 5,85,54,41,26,201
Islamic Windows (Standard) 7.12.04 37,68,57,640 29,44,06,081
Overseas Branches (Standard) 7.12.05 48,17,60,834 39,41,87,422
TOTAL 6,90,59,68,53,940 5,86,23,27,19,704
270
Amount in Taka
Particulars Notes
2021 2020
7.12.01 Government
Unclassified
Standard 4,10,71,46,521 4,86,03,00,000
SMA - -
Sub total 4,10,71,46,521 4,86,03,00,000
Classified
Sub standard - -
Doubtful - -
Bad/Loss 2,36,78,00,000 2,36,78,00,000
Sub total 2,36,78,00,000 2,36,78,00,000
Total 6,47,49,46,521 7,22,81,00,000
7.12.02 Other Public

Unclassified
Standard 1,93,33,92,10,507 1,24,25,05,00,000
SMA - -
Sub total 1,93,33,92,10,507 1,24,25,05,00,000
Classified
Sub standard - 11,12,00,000
Doubtful - -
Bad/Loss 74,55,00,000 33,35,00,000
Sub total 74,55,00,000 44,47,00,000
Total 1,94,08,47,10,507 1,24,69,52,00,000
7.12.03 Private
Unclassified
Standard 3,37,52,56,58,591 3,04,35,54,69,707
SMA 35,23,15,10,725 44,46,97,66,851
Sub total 3,72,75,71,69,316 3,48,82,52,36,558
Classified
Sub standard 2,23,71,25,465 8,36,05,98,091
Doubtful 1,69,28,90,849 4,10,40,79,126
Bad/Loss 92,33,09,12,426
1,12,49,13,92,809
Sub total 1,16,42,14,09,123 1,04,79,55,89,644
Total 4,89,17,85,78,438 4,53,62,08,26,201
7.12.04 Islamic Windows (Standard) 37,57,25,667 28,19,00,575

Islamic Windows (Classified) 11,31,973 1,25,05,506
Sub total 37,68,57,640 29,44,06,081
7.12.05 Overseas Branches (Standard) 43,23,11,522 34,08,82,394

Overseas Branches 4,94,49,312 5,33,05,028
(Classified)
Sub total 48,17,60,834 39,41,87,422
6,90,59,68,53,940 5,86,23,27,19,704
Annual Report 2021

Amount in Taka
Particulars Notes
2021 2020
7.13 Movement of Classified Loans and Advances as a Whole
Opening Classified Loans and Advances 4,34,33,21,220 4,36,42,46,000
Less : - -
Cash Recovery 92,43,02,960 74,71,85,000
Written-off 7,32,24,23,020 5,39,00,70,000
Interest waiver - -
Re-schedule, Renew 12,59,00,47,200 10,50,15,01,000
Re-structuring 24,50,14,37,430 6,18,14,96,338
1,19,58,52,90,407 1,07,67,39,00,177
Add: Classified Loans and Advances during the year 6,181,496,338 22,085,018,839
107,673,900,177 111,993,904,839
7.14 Particulars of Loan and Advances/Investments

i) Loans considered good in respect of which the banking company is fully 4,11,59,98,98,465 3,65,73,22,35,345
secured.
ii) Loans considered good against which the banking company holds no
security other than the debtors' personal guarantee. 84,01,42,42,513 60,61,77,50,730
iii) Loans considered good secured by the personal undertakings of one or
more parties in addition to the personal guarantee of the debtor 81,28,65,53,392 51,60,46,24,592
iv) Loans adversely classified; provision not maintained there against - -
5,76,90,06,94,370 4,77,95,46,10,668
v) Loans due by Directors or Officers of the banking company or any of 65,04,03,71,600 61,93,63,14,441
these either separately or jointly with any other persons
vi) Loans due from Companies or Firms in which the directors of the
Banking Company have interests - -
as Director(s), Partner(s) or Managing agent(s) or incase of private
companies as member(s).
vii) Maximum total amount of advances, including temporary advances made 65,04,03,71,600 61,93,63,14,441
at any time during the year to directors or managers or officers of the bank
or any of them either severally or jointly with any other persons.
viii) Maximum total amount of advances, including temporary advances - -
granted during the year to the companies or firms in which any of the
directors of the bank are interested as partners or managing agent or, in
case of private companies as members.
ix) Due from other banking companies - -
x) Amount of Classified Loans on which Interest has not been Charged
a) Increase/(Decrease) in Provision (6,32,967) (2,61,827)
Less: Provision debited against interest waiver 59,80,00,951 16,96,15,666
Amount of provision released against interest waiver 59,73,67,984 16,93,53,839
b) Amount of provision kept against loan classified 63,52,83,91,397 53,01,63,79,222
c) Interest Credited to the Interest Suspense A/C 51,31,66,14,107 46,01,79,40,866
xi) Written-off Loans as per Bangladesh Bank BRPD Circular no -02 dated 13,
January 2003.
Opening amount of written off loan 69,94,98,89,555 70,49,42,85,196
Less: Amount realized (includes cash & interest waiver) during the year 1,67,25,98,008 55,01,02,000
Add: Amount of written off Loan during the current year - -
Closing amount of written off loans 68,27,72,91,547 69,94,41,83,196
xii) Written-off Loans as per Bangladesh Bank BRPD Circular no -02 dated 13,
January 2003.
Cumulative amount of written off loans 68,27,72,91,547 69,94,41,83,196
Note: Various steps have been taken to realise the written off loan and proper records are being maintained.
272
Amount in Taka
2021 2020 2021 2020
8.00 Fixed Asset including Premises, Furniture & Fixture

(A) Cost/Revaluation
In Bangladesh:
Premises 32,22,76,85,884 31,92,26,83,816 31,98,78,66,368 31,92,26,83,816
Building Constructions 31,02,71,060 33,29,89,773 31,02,71,061 33,29,89,774
Furniture 1,46,43,08,481 1,29,19,18,197 1,40,24,44,335 1,27,85,79,149
Electric Installation 1,30,49,87,618 1,12,62,97,858 1,27,34,22,083 1,12,83,13,756
Computer Hardware 2,53,70,26,329 2,27,37,24,992 2,47,37,08,592 2,25,33,41,077
Type Writer Machine 56,09,434 56,10,105 56,09,434 56,10,105
Motor Car & Other Vehicle 62,34,11,219 62,01,18,538 59,39,50,005 59,06,57,323
Library 1,30,86,740 1,25,53,608 1,30,86,740 1,25,53,608
Sub-Total 38,48,63,86,765 37,58,58,96,887 38,06,03,58,617 37,52,47,28,610
Overseas Branches:
Kolkata Branch 2,63,04,299 2,48,92,450 2,63,04,299 2,48,92,450
Siliguri Branch 2,63,04,299 2,48,92,450 2,63,04,299 2,48,92,450
Sub-Total
Intangible Assets 66,52,72,559 61,76,03,760 65,12,81,561 61,29,58,424
Computer Software 66,52,72,559 61,76,03,760 65,12,81,561 61,29,58,424
Right of Use Assets 66,15,07,678 52,19,07,559 66,15,07,678 52,19,07,559
Total Cost Value 39,83,94,71,301 38,75,03,00,656 39,39,94,52,154 38,68,44,87,042
(B) Accumulated Depreciation
In Bangladesh:
Premises 61,17,86,632 45,60,77,000 50,06,38,383 45,60,77,000
Furniture 87,48,58,951 76,49,75,296 81,37,76,125 75,19,49,774
Electric Installation 94,86,21,469 83,71,39,931 91,95,79,447 83,91,55,868
Library 61,32,834 55,54,089 61,32,833 55,54,088
Sub-Total 5,01,31,46,333 4,33,58,94,711 4,72,08,53,859 4,27,59,58,012
Overseas Branches:
Kolkata Branch 2,12,48,891 1,97,14,047 2,12,48,891 1,97,14,047
Siliguri Branch 2,12,48,891 1,97,14,047 2,12,48,891 1,97,14,047
Sub-Total 26,55,73,638 12,77,78,082 26,55,73,638 12,77,78,083
Depreciation of Right of Use Assets 5,29,99,68,862 4,48,33,86,840 5,00,76,76,388 4,42,34,50,141
Total Accumulated Depreciation
(C) Amortization of Intangible Assets 52,55,62,561 37,43,77,675 51,53,53,871 36,97,42,339
Computer Software 5,82,55,31,423 4,85,77,64,514 5,52,30,30,259 4,79,31,92,480
Total 34,01,39,39,878 33,89,25,36,141 33,87,64,21,896 33,89,12,94,562
Written Down Value on Cost &
Valuation (A-B-C) 33,892,536,141 33,467,819,402 33,891,294,563 33,465,560,566
Details Shown in Annexure-B & C.
8.01 Movement of Fixed assets

Cost (Original)/Revaluation 39,10,72,19,651 37,65,40,77,245 38,68,43,68,640 37,58,34,20,240
Addition during the year 81,88,21,401 1,58,01,46,455 80,14,99,100 1,57,98,22,409
39,92,60,41,052 39,23,42,23,701 39,48,58,67,740 39,16,32,42,649
Less: Disposal/Adjustment during the year 8,64,15,586 48,39,23,647 8,64,15,586 47,87,55,607
39,83,96,25,466 38,75,03,00,053 39,39,94,52,154 38,68,44,87,042
Add/(less): Foreign currency gain loss (1,54,165) 602 - -
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Less: Accumulated Depreciation &

5,82,55,31,423 4,85,77,64,515 5,52,30,30,259 4,79,31,92,480
Amortization
Details shown in Annexure-B & C. 34,01,39,39,878 33,89,25,36,141 33,87,64,21,896 33,89,12,94,562
8A.00 Fixed Asset including Premises, Furniture & Fixture

(A) Cost Basis
In Bangladesh:
Premises 2,16,86,44,799 1,86,36,42,731 1,92,88,25,282 1,86,36,42,731
Building Constructions 31,02,71,060 33,29,89,773 31,02,71,060 33,29,89,774
Furniture 1,46,43,08,481 1,29,19,18,197 1,40,24,44,335 1,27,85,79,149
Electric Installation 1,30,49,87,618 1,12,62,97,858 1,27,34,22,083 1,12,83,13,756
Library 1,30,86,740 1,25,53,608 1,30,86,740 1,25,53,608
Sub-Total 8,42,73,45,680 7,52,68,55,802 8,00,13,17,531 7,46,56,87,524
Overseas Branches:
India Operation 2,64,22,701 2,48,92,450 2,64,22,701 2,48,92,450
Sub-Total 2,64,22,701 2,48,92,450 2,64,22,701 2,48,92,450
Intangible Assets
Total Cost Value 9,11,90,40,940 8,16,93,52,012 8,67,90,21,793 8,10,35,38,399
In Bangladesh:
Premises 50,80,69,739 35,20,97,559 39,66,58,942 35,20,97,559
Furniture 87,48,58,951 76,49,75,296 81,37,76,125 75,19,49,774
Library 61,32,834 55,54,089 61,32,833 55,54,088
Sub-Total 4,90,91,66,948 4,23,19,15,270 4,61,68,74,418 4,17,19,78,571
Overseas Branches:
India Operation 2,13,42,661 1,97,14,046 2,13,42,661 1,97,14,046
Sub-Total 2,13,42,661 1,97,14,046 2,13,42,661 1,97,14,046
Total Accumulated Depreciation 4,93,05,09,609 4,25,16,29,316 4,63,82,17,080 4,19,16,92,618
(C) Amortization of
Intangible Assets
Written Down Value on Cost Basis
3,66,29,68,771 3,54,33,45,022 3,52,54,50,842 3,54,21,03,443
(A-B-C)
Details shown in Annexure-D & E
274
Amount in Taka
2021 2020 2021 2020
8A.01 Movement of Fixed assets
Cost (Original)/Revaluation 8,52,63,89,409 7,59,43,48,560 8,10,35,38,399 7,52,36,91,555
Addition during the year 67,92,21,282 1,04,64,72,132 66,18,98,981 1,04,61,48,085
9,20,56,10,691 8,64,08,20,692 8,76,54,37,380 8,56,98,39,640
Less: Disposal/Adjustment
8,64,15,586 47,14,69,283 8,64,15,586 46,63,01,242
during the year
9,11,91,95,105 8,16,93,51,409 8,67,90,21,794 8,10,35,38,399
Add/(less): Foreign currency gain loss (1,54,165) 602 - -
Less: Accumulated Depreciation &
5,45,60,72,169 4,62,60,06,990 5,15,35,70,950 4,56,14,34,956
Amortization
Details shown in Annexure-D & E 3,66,29,68,771 3,54,33,45,021 3,52,54,50,843 3,54,21,03,442
9.00 Other Asset

Income generating other assets
Investment in Shares of 9.01 3,59,39,072 3,38,36,38,798 5,50,04,19,105 5,46,41,99,843
Subsidiary & Associate Com.
Advance Rent,
9.03 8,02,03,561 10,10,01,389 8,02,03,561 10,10,01,389
Advertisement etc.
Interest, Commission and
9.04 20,90,44,76,152 20,48,15,50,454 20,85,96,11,159 20,36,62,71,368
Exchange Receivable
Prepaid Expenses SB(UK)
7,77,56,318 - - -
Ltd.
Prepaid Expenses 9.05 24,79,444 49,70,726 24,79,444 49,70,726
21,10,08,54,548 23,97,11,61,368 26,44,27,13,270 25,93,64,43,327
Non Income generating
other assets
Stationery, Stamps and
9.02 13,70,54,586 12,29,90,228 13,70,54,586 12,29,90,228
Printing Materials in hand
Branch Adjustment 9.06 28,27,06,80,207 42,09,21,75,178 28,27,06,80,207 42,09,21,75,178
Security Deposits of SECI 75,51,944 76,76,107 - -
Advance deposit of SIL 3,00,000 3,00,000 - -
Suspense A/C 9.07 17,88,90,240 16,51,18,697 17,88,90,240 16,51,18,697
Others 9.08 1,15,10,24,43,953 1,20,75,54,45,863 1,14,99,09,68,394 1,20,66,89,02,446
Details shown in Annexure-G 1,43,69,69,20,930 1,63,14,37,06,074 1,43,57,75,93,426 1,63,04,91,86,549
1,64,79,77,75,477 1,87,11,48,67,441 1,70,02,03,06,696 1,88,98,56,29,876
9.01 Investment in Shares of Subsidiary & Associate Companies

In Bangladesh
Sonali Investment Limited - - 2,00,00,00,000 2,00,00,00,000
Sonali Intellect Limited 2,62,50,000 2,62,50,000 2,62,50,000 2,62,50,000
Outside Bangladesh
Security Deposit with Central Bank of India 96,89,072 96,14,791 96,89,072 96,14,791
Sonali Exchange Co. Inc. (USA) - - 8,15,10,000 8,05,61,045
Sonali Bank (UK) Limited - 3,34,77,74,007 3,38,29,70,033 3,34,77,74,007
3,59,39,072 3,38,36,38,798 5,50,04,19,105 5,46,41,99,843
9.02 Stationery, Stamps and Printing

Materials in hand
Stamps in hand 1,13,10,737 1,14,04,265 1,13,10,737 1,14,04,265
Stationery in hand 12,57,43,849 11,15,85,963 12,57,43,849 11,15,85,963
13,70,54,586 12,29,90,228 13,70,54,586 12,29,90,228
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
9.03 Advance Rent and Advertisement etc.
Advance Rent (Non Interest Bearing) 8,02,03,561 10,10,01,389 8,02,03,561 10,10,01,389
8,02,03,561 10,10,01,389 8,02,03,561 10,10,01,389
9.04 Interest, Commission & Exchange
receivable
i) Interest receivable 15,76,32,35,154 15,88,81,36,018 15,76,32,35,154 15,88,81,36,018
ii) Commission receivable 5,09,63,76,005 4,47,81,35,351 5,09,63,76,005 4,47,81,35,351
iii) Others receivable 4,48,64,993 11,52,79,086 - -
20,90,44,76,152 20,48,15,50,454 20,85,96,11,159 20,36,62,71,368
9.05 Preliminary, Formation and Organization Expenses, Renovation/development Expenses, and prepaid Expenses
Prepaid Expenses (Transferred from adjusting A/C)
Rent - - - -
Salary - 40,49,096 - 40,49,096
Law charges - - - -
Postage 32,330 6,12,359 32,330 6,12,359
Sundries 24,47,114 3,09,271 24,47,114 3,09,271
24,79,444 49,70,726 24,79,444 49,70,726
9.06 Branch Adjustment
Debit Balance
Sonali Bank General Account Balance 62,26,11,45,83,630 61,64,65,57,42,084 62,26,11,45,83,630 61,64,65,57,42,084
Main Office Account Balance (New) 2,60,84,80,36,186 2,60,84,75,88,982 2,60,84,80,36,186 2,60,84,75,88,982
Sonali Bank General Account (RMS+) 94,00,04,14,48,428 74,74,82,47,83,391 94,00,04,14,48,428 74,74,82,47,83,391
Sonali Bank General Account (CBS) 87,94,92,60,47,984 63,59,93,03,53,494 87,94,92,60,47,984 63,59,93,03,53,494
2,46,81,93,01,16,228 2,02,60,25,84,67,951 2,46,81,93,01,16,228 2,02,60,25,84,67,951
Less: Credit Balance
Sonali Bank General
62,23,55,88,64,877 61,61,89,31,99,577 62,23,55,88,64,877 61,61,89,31,99,577
Account Balance
Main Office Account Balance (New) 2,60,69,90,03,121 2,60,69,90,86,501 2,60,69,90,03,121 2,60,69,90,86,501
Sonali Bank General
93,74,47,55,20,039 74,35,64,36,53,201 93,74,47,55,20,039 74,35,64,36,53,201
Account (RMS+)
Sonali Bank General
87,94,92,60,47,984 63,59,93,03,53,494 87,94,92,60,47,984 63,59,93,03,53,494
Account (CBS)
Settlement Account Credit Balance 2,46,53,65,94,36,021 2,02,18,16,62,92,773 2,46,53,65,94,36,021 2,02,18,16,62,92,773
28,27,06,80,207 42,09,21,75,178 28,27,06,80,207 42,09,21,75,178
42,092,175,178 31,168,238,122 42,092,175,178 31,168,238,122
9.06.01 Provision against Branch Adjustment (Unreconciled Entries)

In response to Bank request dated 26 April 2022, Bangladesh Bank allowed deferral through vide no- DOS
(CAMS)1157/01(II)-C/2022-2299 dated 28 April 2022 to maintain required provision against branch adjustment
(unreconciled entries) as required for the year ended 31 December 2021. Accordingly Bank has maintained
the provision amounting taka 415.00 crore by relishing deferral of taka 373.32 crore.
9.07 Suspense Account

Pre-Paid Expenses 5,72,881 26,77,518 5,72,881 26,77,518
Dead Stock 41,675 61,292 41,675 61,292
Building Construction 80,000 5,40,000 80,000 5,40,000
Advance Recoverable 6,04,750 14,05,750 6,04,750 14,05,750
Traveling Expenses 42,53,793 66,92,952 42,53,793 66,92,952
Advance Rent 7,07,000 39,62,200 7,07,000 39,62,200
Miscellaneous 17,26,30,141 14,97,78,985 17,26,30,141 14,97,78,985
Total 17,88,90,240 16,51,18,697 17,88,90,240 16,51,18,697
276
Amount in Taka
2021 2020 2021 2020
9.08 Others :
Demand Draft Paid in Ex-Advice 4,94,10,801 5,43,86,228 4,94,10,801 5,43,86,228
Govt. Demand Draft Paid
14,19,222 15,70,210 14,19,222 15,70,210
in Ex-Advice
Protested Bills 29,01,37,711 29,46,63,961 29,01,37,711 29,46,63,961
Adjusting A/C Debit Balance 95,09,71,922 86,57,69,318 95,09,71,922 86,57,69,318
Income Tax Deducted at Source 26,52,53,15,184 23,83,20,43,223 26,52,53,15,184 23,83,20,43,223
SBL Employees Pension
49,18,67,826 1,44,26,42,103 49,18,67,826 1,44,26,42,103
fund Investment
SBL Employees PDCRB
50,00,00,000 4,17,62,59,894 50,00,00,000 4,17,62,59,894
fund Investment
SBL Employees Benevolent
15,95,25,776 - 15,95,25,776 -
fund Investment
BRDB UCCA Crop Loans Int & Penal
51,12,83,719 51,12,83,719 51,12,83,719 51,12,83,719
Int. Exemption-2007
Settlement A/C (Islami) 57,10,58,251 61,22,92,176 57,10,58,251 61,22,92,176
Loan Exemption Under Jute
5,09,45,43,083 5,09,45,43,083 5,09,45,43,083 5,09,45,43,083
Sectors Reform Proj. 94-95.
Demand Drafts Purchased (DDP) 15,14,07,437 39,22,52,910 15,14,07,437 39,22,52,910
Pension Bills (Army) 3,27,04,98,646 3,48,62,61,471 3,27,04,98,646 3,48,62,61,471
Pension Bills(Civil) 11,21,96,785 24,47,55,579 11,21,96,785 24,47,55,579
Sanchaypatra Encashment A/C 9,04,32,83,628 10,11,02,46,412 9,04,32,83,628 10,11,02,46,412
Agri Exemption A/C
9,95,57,837 9,95,57,837 9,95,57,837 9,95,57,837
affected by River Erosion
Wage Earners' Bond
2,43,04,33,305 1,05,34,75,684 2,43,04,33,305 1,05,34,75,684
Encashment A/C.
NRT A/C Dr. Balance 43,57,75,867 43,57,75,867 43,57,75,867 43,57,75,867
Deferred Tax assets 9.08.01 26,08,75,07,726 27,50,84,14,082 26,07,80,85,270 27,50,03,78,525
Army Pension bill Purchased A/C New 10,08,56,55,777 12,09,00,05,145 10,08,56,55,777 12,09,00,05,145
Advance Payment of Income Tax 8,10,86,22,841 7,60,47,12,954 8,02,63,23,815 7,52,63,23,815
Preliminary Expenses - HR Recruitment A/C 4,43,81,074 4,71,88,984 4,43,81,074 4,71,88,984
ATM Settlement Account Debit Balance 14,20,93,384 41,42,48,361 14,20,93,384 41,42,48,361
SECI Settlement Account Debit Balance 36,40,72,470 50,48,10,243 36,40,72,470 50,48,10,243
Clearing Settlement A/C Debit Balance 18,75,76,212 3,02,38,969 18,75,76,212 3,02,38,969
Govt. Transaction Settlement Account
14,80,74,54,851 12,36,32,14,551 14,80,74,54,851 12,36,32,14,551
Debit Balance
Placement With Solicitation Account 19,36,77,713 16,47,17,013 19,36,77,713 16,47,17,013
Branch Reconstruction A/C 50,195 50,195 50,195 50,195
Receivable - Exchange Rate
30,11,956 41 30,11,956 41
Fluctuation of Biman Loan
Mobile Financial Services Link
12,51,973 3,301 12,51,973 3,301
Settlement Account Debit Balance
Non-Interest Bearing Blocked Account
11,42,813 3,47,13,49,961 11,42,813 3,47,13,49,961
for COVID-19
Receivable from Govt. Under Savings
Certificate Issued to Workers of BJMC 4,06,80,61,708 3,54,21,99,340 4,06,80,61,708 3,54,21,99,340
against Retirement Benefit
Others Current assets of SECI 1,97,54,077 1,18,722 - -
Total 1,15,10,24,43,953 1,20,75,54,45,863 1,14,99,09,68,394 1,20,66,89,02,446
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
9.08.01 Deferred Tax assets

Opening Balance 27,50,84,14,082 29,10,91,64,433 27,50,03,78,525 29,10,22,03,487
Less: Adjustment during the year 9.08.01.01 1,42,09,06,356 1,60,07,50,351 1,42,22,93,255 1,60,18,24,962
Closing Balance 26,08,75,07,726 27,50,84,14,082 26,07,80,85,270 27,50,03,78,525
9.08.01.01 Deferred Tax (Assets)/ Liabilities

i) Carrying amount of Fixed Assets
a) Carrying amount at balance sheet 33,34,00,19,207 33,25,00,02,176 33,33,95,04,758 33,24,87,70,597
date
Less: Land Value and building 29,96,81,34,361 29,99,11,15,574 29,96,81,34,361 29,99,11,15,574
construction Amount
Carrying value without considering 3,37,18,84,846 3,25,88,86,602 3,37,13,70,397 3,25,76,55,023
land value
b) Tax base 2,86,64,46,999 2,45,13,63,433 2,86,55,79,482 2,45,62,07,427
c) Taxable/(Deductible) Temporary
50,54,37,847 80,75,23,169 50,57,90,915 80,14,47,596
Difference (a-b)
ii) Employees Liabilities
a) Carrying amount at balance sheet
date
Provision for pension fund (53,42,83,470) (1,69,54,22,274) (53,42,83,470) (1,69,54,22,274)
Provision for PDCRB fund (2,57,28,28,226) (5,88,70,13,188) (2,57,28,28,226) (5,88,70,13,188)
Provision for Employees benefit (35,634) (35,634) (35,634) (35,634)
Provision for Benevolent Fund (16,33,87,117) - (16,33,87,117) -
Total (3,27,05,34,447) (7,58,24,71,097) (3,27,05,34,447) (7,58,24,71,097)
b) Tax base - - - -
(3,27,05,34,447) (7,58,24,71,097) (3,27,05,34,447) (7,58,24,71,097)
Difference (a-b)
iii) Provision for loans and advances
a) Carrying amount at balance sheet date - - - -
Provision for Classified loan and
(55,79,34,86,209) (56,85,76,15,093) (55,79,03,72,029) (56,83,14,50,627)
advances
b) Tax base - - - -
(55,79,34,86,209) (56,85,76,15,093) (55,79,03,72,029) (56,83,14,50,627)
Difference (a-b)
iv) Provision for other assets
a) Carrying amount at balance sheet date (5,09,98,56,909) (3,92,86,26,406) (5,09,98,56,909) (3,92,86,26,406)
b) Tax base - - - -
(5,09,98,56,909) (3,92,86,26,406) (5,09,98,56,909) (3,92,86,26,406)
Difference (a-b)
v) Provision for diminishing value of
investment
a) Carrying amount at balance sheet date (1,15,01,48,007) (1,78,30,08,468) (1,15,01,48,007) (1,78,30,08,468)
b) Tax base - - - -
(1,15,01,48,007) (1,78,30,08,468) (1,15,01,48,007) (1,78,30,08,468)
Difference (a-b)
vi) Provision for Other Bank's and NBFI
a) Carrying amount at balance sheet date (1,22,94,54,058) (74,52,00,000) (1,22,94,54,058) (74,52,00,000)
b) Tax base - - - -
278
Amount in Taka
2021 2020 2021 2020
(1,22,94,54,058) (74,52,00,000) (1,22,94,54,058) (74,52,00,000)
Difference (a-b)
vii) Total Temporary Difference (66,03,80,41,783) 70,08,93,97,894) (66,03,45,74,535) (70,06,93,09,001)
viii) Tax Rate ( 10% to 40%) ( 10% to 40%) ( 10% to 40%) ( 10% to 40%)
ix) Deferred Tax Assets (26,07,01,72,311) (27,50,08,56,617) (26,06,87,85,412) (27,49,28,21,060)
x) Closing Deferred Tax Assets (26,07,01,72,311) (27,50,08,56,617) (26,06,87,85,412) (27,49,28,21,060)
xi) Opening Deferred Tax 27,49,28,21,060 29,10,91,64,433 27,49,28,21,060 29,10,22,03,487
Decrease/(Increase) of Deferred Tax
1,42,26,48,749 1,60,83,07,816 1,42,40,35,648 1,60,93,82,427
Assets/Liabilities
Less: Deferred Tax Income
17,42,393 75,57,465 17,42,393 75,57,465
against IFRS-16
Deferred Tax Liabilities 1,42,09,06,356 1,60,07,50,351 1,42,22,93,255 1,60,18,24,962
9.09 Provision Maintained against Other Assets

Cash in Hand
6,14,675 6,14,675 6,14,675 6,14,675
(Obsolete Indian Rupee)
Stamp on Hand (Obsolete) 6,64,850 6,64,850 6,64,850 6,64,850
Suspense Account 13,94,37,121 13,96,00,000 13,94,37,121 13,96,00,000
Protested Bills 29,01,37,711 29,46,63,961 29,01,37,711 29,46,63,961
Branch Reconstruction Account 50,195 50,195 50,195 50,195
Agri Loan Exemption affected by River Erosion 9,95,57,837 9,95,57,837 9,95,57,837 9,95,57,837
BRDB UCCA Crops Loans Int.Penal
51,12,83,719 51,12,83,719 51,12,83,719 51,12,83,719
Int. Exemption A/C
Demand Draft Paid in Ex-Advice 9.09a 4,94,10,801 - 4,94,10,801 -
Demand Drafts Purchased (DDP) 5,23,00,000 - 5,23,00,000 -
Wage Earners' Bond
11,56,00,000 - 11,56,00,000 -
Encashment A/C.
Pension Bills (Civil) 11,17,00,000 - 11,17,00,000 -
Interest Receivable
2,86,99,00,000 - 2,86,99,00,000 -
(Including Orion Infrac. Ltd.)
Adjusting A/C Debit Balance 85,92,00,000 - 85,92,00,000 -
Sub Total 9.06.01 5,09,98,56,909 1,04,64,35,237 5,09,98,56,909 1,04,64,35,237
Jute Sector Reform Project 2,40,00,00,000 2,10,00,00,000 2,40,00,00,000 2,10,00,00,000
NRT A/C Dr. Balance 43,57,75,867 43,57,75,867 43,57,75,867 43,57,75,867
Pension Bills (Army) 50,00,00,000 50,00,00,000 50,00,00,000 50,00,00,000
Preliminary Expenses HR
95,00,000 95,00,000 95,00,000 95,00,000
Recruitment
Branch Adjustment of
4,15,00,00,000 2,00,00,00,000 4,15,00,00,000 2,00,00,00,000
Unreconciled Entries
Sanchaypatra Encashment Account 1,00,00,00,000 - 1,00,00,00,000 -
Others Provision 4,23,97,174 1,15,87,00,000 4,23,97,174 1,15,87,00,000
Sub Total 8,53,76,73,041 6,20,39,75,867 8,53,76,73,041 6,20,39,75,867
Grand Total 13,63,75,29,950 7,25,04,11,104 13,63,75,29,950 7,25,04,11,104
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
9.09a Jute Sector Reform Project

Through letter no- DOS(BSS-1)1163/96/2015/821, dated 17 February 2015, Bangladesh Bank Approved the Bank
request to provide Tk. 30 Crore provision per year against Jute Sector Reform Project. Accordingly Bank has kept
that provision in 2012 and total provision kept Tk. 240 Crore up to 31 December 2021.
9.10 Movement of the Provision against Other Assets

Opening balance 7,25,04,11,104 4,78,55,02,366 7,25,04,11,104 4,78,55,02,366
Less: Written- off during the year - - - -
7,25,04,11,104 4,78,55,02,366 7,25,04,11,104 4,78,55,02,366
Less: Transferred to P&L A/C - - - -
7,25,04,11,104 4,78,55,02,366 7,25,04,11,104 4,78,55,02,366
Add: Addition during the year 6,38,71,18,846 2,46,49,08,738 6,38,71,18,846 2,46,49,08,738
13,63,75,29,950 7,25,04,11,104 13,63,75,29,950 7,25,04,11,104
9.11 Provision made against other assets

Other Assets 13,12,62,46,231 6,73,91,27,385 13,12,62,46,231 6,73,91,27,385
Interest reserve against
51,12,83,719 51,12,83,719 51,12,83,719 51,12,83,719
BRDB UCCA Crops Loan
13,63,75,29,950 7,25,04,11,104 13,63,75,29,950 7,25,04,11,104
10.00 Non Banking Assets - - - -
11.00 Borrowings from other banks, financial institutions & agents

In Bangladesh 11.01 49,43,25,183 54,92,50,183 49,43,25,183 54,92,50,183
Outside Bangladesh 11.02 2,45,68,41,295 1,34,15,676 - -
2,95,11,66,478 56,26,65,859 49,43,25,183 54,92,50,183
11.01 In Bangladesh
Bangladesh Bank Demand Loan:
Refinance Against RHFG from
72,000 70,000 72,000 70,000
Bangladesh Bank
Refinance Against Jute Sector from
49,42,53,183 54,91,80,183 49,42,53,183 54,91,80,183
Bangladesh Bank
49,43,25,183 54,92,50,183 49,43,25,183 54,92,50,183
11.01.01 Security against borrowings from other banks, financial institutions and agents
Secured (against bills) - - - -
Unsecured 49,43,25,183 54,92,50,183 49,43,25,183 54,92,50,183
49,43,25,183 54,92,50,183 49,43,25,183 54,92,50,183
11.02 Outside Bangladesh

Sonali Exchange Co. Inc - 1,34,15,676 - -
2,45,68,41,295 1,34,15,676 - -
280
Amount in Taka
2021 2020 2021 2020
11.03 Maturity Grouping of Borrowing From Other Banks, Financial Institutions & Agents
Payable on demand - - - -
Repayable on within 1 month - - - -
Over 1 month but within 3 Months - - - -
Over 3 months but within 1 year - - - -
Over 1 year but within 5 years - - - -
Over 5 year but within 10 years 2,95,11,66,478 56,26,65,859 49,43,25,183 54,92,50,183
2,95,11,66,478 56,26,65,859 49,43,25,183 54,92,50,183
12.00 Deposits and other accounts

Current Deposit & Other
12.02.01(a+b+c) 2,31,07,48,41,683 2,42,81,95,48,854 2,31,39,25,46,360 2,43,01,22,72,784
Accounts
Bills Payable 12.02.02(a+b+c) 12,81,46,84,803 11,04,30,66,246 12,81,46,84,803 11,04,30,66,246
Savings Deposits 12.02.03(a+b+c) 5,28,62,00,42,413 4,51,47,10,60,424 5,28,62,00,42,413 4,51,47,10,60,424
Fixed Deposits 12.02.04(a+b+c) 5,77,89,10,93,980 5,53,24,79,76,484 5,77,89,10,93,980 5,53,24,79,76,484
Other Deposits 12.02.05(a+b+c) 9,75,05,675 1,18,88,727 9,75,05,675 1,18,88,727
Total Deposits and other accounts 13,50,49,81,68,555 12,58,59,35,40,735 13,50,81,58,73,232 12,58,78,62,64,665
Deposits and other accounts
Inter Bank Deposits 12.01(A) 53,13,83,32,819 52,33,43,85,432 53,13,83,32,819 52,33,43,85,432
Other than Bank Deposits 12.01(B) 12,93,37,50,50,941 12,01,23,66,62,214 12,93,37,50,50,941 12,01,23,66,62,214
13,46,51,33,83,760 12,53,57,10,47,646 13,46,51,33,83,760 12,53,57,10,47,646
Islamic Banking Window 12.01(C) 3,65,11,65,711 4,62,45,34,374 3,65,11,65,711 4,62,45,34,374
4,30,24,89,472 5,21,52,17,018 4,30,24,89,472 5,21,52,17,018
Less: Inter Company balance
31,77,04,677 19,27,23,930 - -
eliminated
Total 13,50,49,81,68,555 12,58,59,35,40,735 13,50,81,58,73,232 12,58,78,62,64,665

A. Inter bank deposits
Payable on Demand 25,22,96,44,706 24,59,61,12,912 25,22,96,44,706 24,59,61,12,912
Other than Demand 27,90,86,88,113 27,73,82,72,520 27,90,86,88,113 27,73,82,72,520
53,13,83,32,819 52,33,43,85,432 53,13,83,32,819 52,33,43,85,432
B. Other deposits
Payable on Demand 5,02,27,87,52,056 4,67,52,05,44,505 5,02,27,87,52,056 4,67,52,05,44,505
Other than Demand 7,91,09,62,98,885 7,33,71,61,17,710 7,91,09,62,98,885 7,33,71,61,17,710
12,93,37,50,50,941 12,01,23,66,62,214 12,93,37,50,50,941 12,01,23,66,62,214
C. Islamic Banking Window 3,65,11,65,711 4,62,45,34,374 3,65,11,65,711 4,62,45,34,374
D. Overseas Branches 65,13,23,761 59,06,82,644 65,13,23,761 59,06,82,644
4,30,24,89,472 5,21,52,17,018 4,30,24,89,472 5,21,52,17,018
Less: Inter Company
31,77,04,677 19,27,23,930 - -
balance Eliminated
Total 13,50,49,81,68,555 12,58,59,35,40,735 13,50,81,58,73,232 12,58,78,62,64,665
12.02 Deposits and Other Accounts (Category wise)

Domestic Branches
Current and Contingency 12.02.1.a 2,30,77,32,10,011 2,42,54,92,93,651 2,31,09,09,14,688 2,42,74,20,17,581
Bills Payable 12.02.2.a 12,80,55,72,621 11,04,24,87,462 12,80,55,72,621 11,04,24,87,462
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Savings Bank Account 12.02.3.a 5,28,41,45,44,950 4,51,29,94,61,994 5,28,41,45,44,950 4,51,29,94,61,994

Fixed Deposits 12.02.4.a 5,74,20,23,51,501 5,48,48,70,80,609 5,74,20,23,51,501 5,48,48,70,80,609
Other Deposits 12.02.5.a - - - -
13,46,19,56,79,083 12,53,37,83,23,716 13,46,51,33,83,760 12,53,57,10,47,646
Overseas Branches
Current and Contingency 12.02.1.b 29,28,53,175 26,49,78,286 29,28,53,175 26,49,78,286
Bills Payable 12.02.2.b 91,12,182 5,78,784 91,12,182 5,78,784
Savings Bank Account 12.02.3.b 5,39,71,710 6,33,76,874 5,39,71,710 6,33,76,874
Fixed Deposit 12.02.4.b 28,93,26,937 25,28,64,768 28,93,26,937 25,28,64,768
Other Deposits 12.02.5.b 60,59,757 88,83,932 60,59,757 88,83,932
65,13,23,761 59,06,82,644 65,13,23,761 59,06,82,644
Al-Wadeeah Current Deposits 12.02.1.c 87,78,498 52,76,916 87,78,498 52,76,916
Bills Payable 12.02.2.c 15,15,25,752 10,82,21,556 15,15,25,752 10,82,21,556
Mudarabah Savings Deposits 12.02.3.c 3,39,94,15,543 4,50,80,31,106 3,39,94,15,543 4,50,80,31,106
Mudarabah Fixed Deposit 12.02.4.c 9,14,45,918 30,04,795 9,14,45,918 30,04,795
Other Mudarabah Deposits 12.02.5.c 3,65,11,65,711 4,62,45,34,374 3,65,11,65,711 4,62,45,34,374
13,50,49,81,68,555 2,58,59,35,40,735 13,50,81,58,73,232 12,58,78,62,64,665
Total 1,258,593,540,735 1,158,643,695,226 1,258,786,264,665 1,158,787,781,297
12.02.1.a Current and Contingency (Domestic Branches)

Current Account (Credit Balance) 2,05,82,78,90,524 2,20,32,22,99,826 2,05,82,78,90,524 2,20,32,22,99,826
Hajj Deposits 1,94,17,135 4,18,80,707 1,94,17,135 4,18,80,707
Margin on Letter of Credit 3,44,08,22,642 1,78,39,07,445 3,44,08,22,642 1,78,39,07,445
Margin on Bank Guarantee 4,68,21,390 3,75,81,102 4,68,21,390 3,75,81,102
Foreign Bank Deposit 46,96,51,079 47,86,32,425 46,96,51,079 47,86,32,425
Current Account Barter
7,58,61,91,082 4,31,64,06,332 7,58,61,91,082 4,31,64,06,332
Credit Balance
Branch Sundry Deposit A/C 2,28,66,48,537 3,73,24,00,959 2,28,66,48,537 3,73,24,00,959
Call Deposit 2,56,38,019 10,35,78,487 2,56,38,019 10,35,78,487
Exporters' Foreign Currency
8,59,80,82,937 8,11,73,11,029 8,59,80,82,937 8,11,73,11,029
Retention Quota
Foreign Currency Deposit 2,35,66,06,677 3,24,87,98,486 2,35,66,06,677 3,24,87,98,486
Non Resident F.C.D (NFCD)
15,40,40,669 17,00,35,011 15,40,40,669 17,00,35,011
& R.F.C.D Account
Sonali e-Wallet Account 2,20,26,037 28,01,404 2,20,26,037 28,01,404
Credit Balance of Loan & Advances 25,70,77,960 38,63,84,368 25,70,77,960 38,63,84,368
2,31,09,09,14,688 2,42,74,20,17,581 2,31,09,09,14,688 2,42,74,20,17,581
Less: Inter Company
31,77,04,677 19,27,23,930 - -
balance Eliminated
Total 2,30,77,32,10,011 2,42,54,92,93,651 2,31,09,09,14,688 2,42,74,20,17,581
12.02.1.b Current and Contingency 29,28,53,175 26,49,78,286 29,28,53,175 26,49,78,286

(Overseas Branches)
12.02.1.c Current and Contingency 87,78,498 52,76,916 87,78,498 52,76,916

(Islamic Banking Window)
Total 2,31,07,48,41,683 2,42,81,95,48,854 2,31,39,25,46,360 2,43,01,22,72,784
282
Amount in Taka
2021 2020 2021 2020
12.02.2.a Bills Payable ( Domestic Branches)

Draft Payable 2,20,40,08,111 2,23,73,89,579 2,20,40,08,111 2,23,73,89,579
Govt. Draft Payable 4,83,27,024 3,25,49,181 4,83,27,024 3,25,49,181
Payment Order 10,48,08,82,376 8,70,21,79,367 10,48,08,82,376 8,70,21,79,367
Foreign Draft/Travelers
3,03,688 3,03,688 3,03,688 3,03,688
Cheque Issued A/c.
Foreign Draft Payable A/c. 7,20,51,422 7,00,65,647 7,20,51,422 7,00,65,647
12,80,55,72,621 11,04,24,87,462 12,80,55,72,621 11,04,24,87,462
12.02.2.b Bills Payable (Overseas Branches) 91,12,182 5,78,784 91,12,182 5,78,784
12.02.2.c Bills Payable (Islamic Banking Window) - - - -

Total 12,81,46,84,803 11,04,30,66,246 12,81,46,84,803 11,04,30,66,246
12.02.3.a Savings Bank Deposits (Domestic Branches)

Savings Bank Account 5,26,88,56,24,174 4,50,30,98,44,714 5,26,88,56,24,174 4,50,30,98,44,714
Daily Profit Scheme 77,21,43,194 38,52,97,825 77,21,43,194 38,52,97,825
School Banking Scheme 75,67,77,582 60,43,19,455 75,67,77,582 60,43,19,455
5,28,41,45,44,950 4,51,29,94,61,994 5,28,41,45,44,950 4,51,29,94,61,994
12.02.3.b Savings Bank Deposits (Overseas Branches) 5,39,71,710 6,33,76,874 5,39,71,710 6,33,76,874
12.02.3.c Savings Bank Deposits 15,15,25,752 10,82,21,556 15,15,25,752 10,82,21,556

(Islamic Banking Window)
Total 5,28,62,00,42,413 4,51,47,10,60,424 5,28,62,00,42,413 4,51,47,10,60,424
12.02.4.a Fixed Deposit (Domestic Branches)

Fixed Deposits 2,96,95,76,56,758 2,83,26,18,33,358 2,96,95,76,56,758 2,83,26,18,33,358
Special Notice deposits 1,79,68,28,45,900 1,66,73,72,70,718 1,79,68,28,45,900 1,66,73,72,70,718
Deposit Pension Scheme 96,37,116 1,11,06,999 96,37,116 1,11,06,999
Special Deposit Pension Scheme 1,31,71,740 1,36,56,771 1,31,71,740 1,36,56,771
Sonali Deposit Scheme 11,20,57,14,872 10,25,05,67,017 11,20,57,14,872 10,25,05,67,017
Education Deposit Scheme. 2,67,07,70,880 2,99,89,86,224 2,67,07,70,880 2,99,89,86,224
Medicare Deposit Scheme 15,72,80,17,063 16,14,18,46,670 15,72,80,17,063 16,14,18,46,670
Rural Deposit Schemes 54,24,27,811 73,64,36,146 54,24,27,811 73,64,36,146
Monthly Earning Schemes 22,82,61,820 55,17,82,003 22,82,61,820 55,17,82,003
Marriage Savings Schemes 2,72,23,41,377 2,98,00,73,312 2,72,23,41,377 2,98,00,73,312
Double Benefit Scheme 11,63,18,53,989 20,18,56,62,810 11,63,18,53,989 20,18,56,62,810
Triple Benefit Scheme 2,44,01,51,687 2,21,48,49,728 2,44,01,51,687 2,21,48,49,728
Millionaire Deposite Scheme 32,89,53,58,978 25,85,38,95,699 32,89,53,58,978 25,85,38,95,699
Non Resident Deposit Scheme 1,05,28,626 62,60,632 1,05,28,626 62,60,632
Retirement Savings Scheme 2,17,62,017 1,99,91,187 2,17,62,017 1,99,91,187
Sonali Bank Retirement Savings Scheme 1,21,10,87,261 1,34,67,01,064 1,21,10,87,261 1,34,67,01,064
Deposit Pension Payment Account 41,73,543 49,53,024 41,73,543 49,53,024
Shadheen Sanchay Scheme 42,23,75,019 23,71,55,916 42,23,75,019 23,71,55,916
S.B.Employees General Provident Fund 15,46,07,96,039 14,52,01,98,490 15,46,07,96,039 14,52,01,98,490
S.B. Employees Contributory Provident Fund 34,34,19,004 41,38,52,842 34,34,19,004 41,38,52,842
5,74,20,23,51,501 5,48,48,70,80,609 5,74,20,23,51,501 5,48,48,70,80,609
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
12.02.4.b Fixed Deposit (Overseas Branches) 5,74,20,23,51,501 5,48,48,70,80,609 5,74,20,23,51,501 5,48,48,70,80,609
12.02.4.c Fixed Deposit (Islamic Banking Window) 3,39,94,15,543 4,50,80,31,106 3,39,94,15,543 4,50,80,31,106
Total 5,77,89,10,93,980 5,53,24,79,76,484 5,77,89,10,93,980 5,53,24,79,76,484
12.02.5.a Other Deposits (Domestic Branches) - - - -
12.02.5.b Other Deposits (Overseas Branches) 60,59,757 88,83,932 60,59,757 88,83,932
12.02.5.c Other Deposits (Islamic Banking Window) 9,14,45,918 30,04,795 9,14,45,918 30,04,795
Total 9,75,05,675 1,18,88,727 9,75,05,675 1,18,88,727
Amount in Taka
Particulars No.of Branches
2021 2020
12.03 In Bangladesh (GM's Office wise)
Dhaka Division-1 119 3,69,06,39,46,014 3,37,46,40,51,443
Dhaka Division-2 96 2,53,23,10,50,838 2,30,13,21,66,539
Chattagram 110 1,67,22,41,49,956 1,72,41,55,10,200
Khulna 124 77,94,77,03,246 73,06,22,99,596
Rangpur 116 53,82,97,74,820 48,77,42,78,854
Faridpur 105 66,58,77,31,265 62,78,90,83,242
Mymensingh 116 78,62,79,82,208 69,19,84,64,668
Sylhet 80 50,24,07,86,868 46,13,49,59,633
Barishal 79 42,76,52,34,117 39,51,44,15,561
Rajshahi 143 77,83,71,33,259 68,98,33,45,194
Cumilla 139 1,09,15,78,91,168 1,05,10,24,72,715
1227 13,46,51,33,83,760 12,53,57,10,47,647
Islamic Banking Window 3,65,11,65,711 4,62,45,34,375
Overseas Branches 2 65,13,23,761 59,06,82,644
Total 1229 13,50,81,58,73,232 12,58,78,62,64,665
12.03.01 Deposits and Other Accounts (Geographical Location-wise Deposits)

In Bangladesh
Urban 500 10,04,00,80,26,363 9,35,76,85,56,731 74.33 74.34
Rural 727 3,42,50,53,57,397 3,17,80,24,90,915 25.36 25.25
Sub Total 1227 13,46,51,33,83,760 12,53,57,10,47,646 99.68 99.59
Overseas Branches 2 65,13,23,761 59,06,82,644 0.05 0.05
Total 1229 13,50,81,58,73,232 12,58,78,62,64,665 100 100
Head office is included in Urban
12.03.1.a In Bangladesh (GM's Office and District wise)

Dhaka GM's Office
Dhaka (1&2) 126 5,32,80,65,57,407 4,86,75,17,95,580 39.44 38.67
Gazipur 22 39,03,37,01,725 33,49,16,95,019 2.89 2.66
Munshiganj 17 12,29,00,58,655 12,67,99,61,223 0.91 1.01
Narayanganj 18 11,22,41,52,043 10,11,19,25,262 0.83 0.80
Narsingdi 21 15,18,87,18,900 13,86,41,29,965 1.12 1.10
Manikganj 11 11,75,18,08,122 10,69,67,10,933 0.87 0.85
Sub Total 215 6,22,29,49,96,853 5,67,59,62,17,982 46.07 45.09
284
Amount in Taka
2021 2020 2021 2020
Dhaka GM's Office

Chattogram GM's Office
Chattogram North 27 63,08,23,42,653 22,67,22,23,529 4.67 1.80
Chattogram South 29 70,86,60,12,517 1,16,88,50,15,834 5.25 9.29
Rangamati 23 9,69,26,53,156 9,26,37,24,063 0.72 0.74
Bandarbon 7 2,47,96,54,001 2,43,18,32,539 0.18 0.19
Cox's Bazar 10 11,99,30,51,920 12,54,81,31,628 0.89 1.00
Patiya 14 9,11,04,35,709 8,61,45,82,609 0.67 0.68
Sub Total 110 1,67,22,41,49,956 1,72,41,55,10,200 12.38 13.70
Khulna GM's Office
Jashore 35 20,30,56,78,121 18,56,67,06,469 1.50 1.47
Jhenaidah 23 13,51,46,09,654 11,79,50,65,350 1.00 0.94
Khulna 24 21,08,45,07,157 19,74,87,13,928 1.56 1.57
Satkhira 17 9,17,82,51,066 8,42,26,82,748 0.68 0.67
Bagerhat 14 8,35,97,23,367 9,60,20,15,939 0.62 0.76
Narail 11 5,50,49,33,881 4,92,71,15,162 0.41 0.39
Sub Total 124 77,94,77,03,246 73,06,22,99,596 5.77 5.54
Rangpur GM's Office
Dinajpur 32 14,04,02,61,518 12,34,28,02,464 1.04 0.98
Gaibandha 16 7,29,75,41,900 6,90,43,49,559 0.54 0.55
Kurigram 16 8,52,77,87,542 7,51,86,85,091 0.63 0.60
Rangpur 21 11,86,95,84,397 11,20,49,75,589 0.88 0.89
Nilphamari 10 4,71,78,22,211 4,14,26,29,695 0.35 0.33
Thakurgaon 21 7,37,67,77,252 6,66,08,36,455 0.55 0.53
Sub Total 116 53,82,97,74,820 48,77,42,78,854 3.98 3.87
Faridpur GM's Office
Chuadanga 19 9,79,25,29,059 9,68,39,23,143 0.72 0.77
Faridpur 23 18,38,25,42,329 16,79,81,12,348 1.36 1.33
Kushtia 22 10,80,66,41,723 9,72,28,52,777 0.80 0.77
Madaripur 17 12,47,33,41,549 12,93,57,99,603 0.92 1.03
Gopalgonj 12 8,27,70,58,511 7,36,20,01,849 0.61 0.58
Rajbari 12 6,85,56,18,094 6,28,63,93,523 0.51 0.50
Sub Total 105 66,58,77,31,265 62,78,90,83,242 4.93 4.99
Mymensingh GM's Office
Jamalpur 19 8,58,74,46,601 7,75,08,05,077 0.64 0.62
Kishoregonj 17 10,88,22,79,564 9,49,48,30,371 0.81 0.75
Mymensingh 25 19,57,16,43,456 17,03,93,49,480 1.45 1.35
Tangail 32 28,17,36,24,374 24,73,21,43,949 2.09 1.96
Netrokona 14 6,58,53,85,013 5,71,99,75,776 0.49 0.45
Sherpur 9 4,82,76,03,200 4,46,13,60,017 0.36 0.35
Sub Total 116 78,62,79,82,208 69,19,84,64,668 5.82 5.50
Sylhet GM's Office
Moulvibazar 22 10,48,52,51,679 9,58,23,66,576 0.78 0.76
Sylhet 32 25,72,13,69,000 23,51,74,50,317 1.90 1.87
Habiganj 13 7,13,20,32,518 6,32,01,00,121 0.53 0.50
Sunamganj 13 6,90,21,33,671 6,71,50,42,619 0.51 0.53
Sub Total 80 50,24,07,86,868 46,13,49,59,633 3.72 3.67
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Barishal GM's Office

Barishal 37 21,43,69,86,713 19,77,97,27,120 1.59 1.57
Patuakhali 22 9,96,83,39,514 9,84,13,35,817 0.74 0.78
Bhola 10 5,03,38,12,541 4,45,53,66,368 0.37 0.35
Pirojpur 10 6,32,60,95,348 5,43,79,86,256 0.47 0.43
Sub Total 79 42,76,52,34,117 39,51,44,15,561 3.17 3.14
Rajshahi GM's Office
Bogura 32 15,99,80,46,560 14,09,26,14,433 1.18 1.12
Naogaon 19 7,62,56,57,085 6,78,18,80,343 0.56 0.54
Pabna 18 12,29,83,83,876 11,09,03,37,255 0.91 0.88
Rajshahi 24 16,75,10,43,416 14,56,63,88,805 1.24 1.16
Sirajganj 21 11,43,53,06,433 10,23,75,42,493 0.85 0.81
Chapai Nawabganj 8 4,46,43,31,238 3,87,73,26,728 0.33 0.31
Joypurhat 8 3,29,96,61,462 2,95,48,80,728 0.24 0.23
Natore 13 5,96,47,03,189 5,38,23,74,409 0.44 0.43
Sub Total 143 77,83,71,33,259 68,98,33,45,194 5.76 5.48
Cumilla GM's Office
Brahmanbaria 24 17,23,49,53,185 20,65,69,87,057 1.28 1.64
Chadpur 20 13,26,09,28,237 11,94,94,17,588 0.98 0.95
Cumilla 38 42,74,05,57,827 38,97,44,67,044 3.16 3.10
Feni 17 11,94,13,26,625 10,89,42,36,179 0.88 0.87
Noakhali 28 17,01,26,57,980 15,72,08,50,161 1.26 1.25
Laxmipur 12 6,96,74,67,314 6,90,65,14,688 0.52 0.55
Sub Total 139 1,09,15,78,91,168 1,05,10,24,72,715 8.08 8.35
Total 1227 13,46,51,33,83,759 12,53,57,10,47,647 99.68 99.59
12.03.2.b Outside Bangladesh

Overseas Branches 2 65,13,23,761 59,06,82,644 0.05 0.05
Total Deposits and Other
1229 13,50,81,58,73,232 12,58,78,62,64,665 100 100
Accounts
Head office is included in Number of Branches and Deposits and Other Accounts
Amount in Taka
Particulars
2021 2020
12.04 Sector Wise Deposit Including Bills Payable
Presidency, Prime Minister Office and Judiciary 1,18,20,17,97,578 1,12,49,55,54,965
Autonomous and Semi-autonomous bodies 1,39,11,92,46,479 1,36,28,99,03,552
Other Public Sector 2,13,08,07,83,593 2,22,84,71,91,209
Banking Sector 53,13,83,32,819 52,33,43,84,722
Private Sector 8,22,97,32,23,291 7,29,60,40,13,198
13,46,51,33,83,760 12,53,57,10,47,646
Overseas Branches 65,13,23,761 59,06,82,644
13,50,81,58,73,232 12,58,78,62,64,665
286
Amount in Taka
2021 2020 2021 2020
12.05.a Maturity Grouping of deposits and other accounts (Including Bills Payable)
Repayable on Demand 5,27,50,83,96,762 4,92,11,66,57,417 6,34,40,58,65,254 5,47,77,15,48,364
Repayable within 1 Month 1,32,89,79,09,686 1,26,42,88,49,966 1,13,21,08,80,081 1,17,32,78,48,532
Over 1 month but within 6 Months 2,69,18,97,84,088 2,61,15,69,09,160 2,50,05,60,10,159 2,58,76,43,50,209
Over 6 months but within 1 year 1,92,71,20,84,932 1,86,55,97,94,791 1,53,59,90,42,743 1,49,44,59,70,457
Over 1 year but within 5 years 1,05,39,83,36,596 93,87,23,72,382 1,01,47,40,44,309 93,03,89,65,219
Over 5 years but within 10 years 97,20,71,48,970 85,88,82,80,915 86,31,64,15,135 86,19,71,68,140
Over 10 years 25,90,22,12,198 12,76,34,00,035 11,75,36,15,551 6,24,04,13,745
13,50,81,58,73,232 12,58,78,62,64,665 13,50,81,58,73,232 12,58,78,62,64,665
31,77,04,677 19,27,23,930 - -
Eliminated
Total 13,50,49,81,68,555 12,58,59,35,40,735 13,50,81,58,73,232 1,158,787,781,297
12.05.b Maturity Grouping of Inter-Bank Deposits

Repayable on Demand 25,22,96,44,706 24,59,61,12,912 25,22,96,44,706 24,59,61,12,912
Repayable within 1 Month 18,37,33,45,789 18,31,77,27,136 18,37,33,45,789 18,31,77,27,136
Over 1 month but within 6 Months 1,66,52,48,963 1,57,00,90,898 1,66,52,48,963 1,57,00,90,897
Over 6 months but within 1 year 5,24,63,58,974 5,23,36,36,325 5,24,63,58,974 5,23,36,36,325
Over 1 year but within 5 years 2,62,37,34,387 2,61,68,18,162 2,62,37,34,387 2,61,68,18,162
Over 5 years but within 10 years - - - -
Over 10 years - - - -
Sub Total 53,13,83,32,819 52,33,43,85,432 53,13,83,32,819 52,33,43,85,432
Other Deposits
Repayable on Demand 5,02,27,87,52,056 4,67,52,05,44,505 5,02,27,87,52,056 4,67,52,05,44,505
Repayable within 1 Month 1,14,52,45,63,897 1,08,11,11,22,830 1,14,52,45,63,897 1,08,11,11,22,830
Over 1 month but within 6 Months 2,67,52,45,35,125 2,67,52,45,35,125 2,59,58,68,18,262

2,59,58,68,18,262
Over 6 months but within 1 year 1,87,46,57,25,958 1,81,32,61,58,466 1,87,46,57,25,958 1,81,32,61,58,466
Over 1 year but within 5 years 1,02,45,68,97,532 91,25,55,54,220 1,02,45,68,97,532 91,25,55,54,220
Over 5 years but within 10 years 97,52,48,53,647 85,88,82,80,915 97,52,48,53,647 85,88,82,80,915
Over 10 years 25,90,22,12,198 12,76,34,00,035 25,90,22,12,198 12,76,34,00,035
Sub Total 12,97,67,75,40,413 12,06,45,18,79,233 12,97,67,75,40,413 12,06,45,18,79,233
31,77,04,677 19,27,23,930 - -
Eliminated
Total 13,50,49,81,68,555 12,58,59,35,40,735 13,50,81,58,73,232 12,58,78,62,64,665
12.05.c Maturity Grouping of Bills Payables

Repayable on Demand 12,81,46,84,803 11,04,30,66,246 12,81,46,84,803 11,04,30,66,246
Repayable within 1 Month - - - -
Over 1 month but within 6 Months - - - -
Over 6 months but within 1 year - - - -
Over 1 year but within 5 years - - - -
Over 5 years but within 10 years - - - -
Over 10 years - - - -
12,81,46,84,803 11,04,30,66,246 12,81,46,84,803 11,04,30,66,246
Un-claimed deposits for 10 years
or more held by the bank as on 31 2,22,47,648 46,43,561 2,22,47,648 46,43,561
December 2021
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
13.00 Other liabilities

Domestic Branches
Provision for Classified
13.01.a 63,53,23,18,601 57,70,54,51,597 63,52,83,91,397 57,70,54,51,597
loans including writ
Provision for Un-Classified loans 13.01.b 12,14,93,11,901 12,46,02,67,522 12,14,93,11,901 12,46,02,67,522
Interest Suspense 13.02 51,67,42,40,190 46,37,41,46,765 51,31,80,41,800 46,02,02,13,019
Provision against diminishing
13.03 1,23,34,44,342 1,86,63,04,803 1,15,01,48,007 1,78,30,08,468
value of Investment in Share
Liability for employees benefit
13.04 53,42,83,470 1,69,54,22,274 53,42,83,470 1,69,54,22,274
(Pension fund)
Liability for employees
13.05 2,57,28,28,226 5,88,70,13,188 2,57,28,28,226 5,88,70,13,188
benefit ( PDCRB fund)
16,33,87,117 - 16,33,87,117 -
benefit (Benevolent Fund)
Provison for employee benefits 35,634 35,634 35,634 35,634
Provision for Income Tax 13.06 6,65,81,22,696 6,11,01,87,428 6,55,34,08,965 6,04,18,99,316
Provision for debenture
59,44,125 59,44,126 59,44,125 59,44,125
(Public and Private)
Provision for Balance with
46,88,00,000 46,88,00,000 46,88,00,000 46,88,00,000
Bangladesh Bank
BB Refinance Scheme for SME
79,139 79,139 79,139 79,139
(Ren. Energy/Solar Energy)
Provision for Salary 4,62,202 50,463 4,62,202 50,463
Employees Tax Deducted at
77,08,426 76,77,518 77,08,426 76,77,518
source from Salary
Interest Payable ( For Fixed Deposit) 5,64,46,83,416 4,72,45,05,965 5,64,46,83,416 4,72,45,05,965
Interest Payable (For other Deposit) 70,28,42,063 1,31,06,09,860 70,28,42,063 1,31,06,09,860
Income Received in advance 4,32,273 3,96,904 4,32,273 3,96,904
Expenses payable A/C 54,49,51,607 35,03,73,411 54,49,51,607 35,03,73,411
Provision for Off Balance
2,71,45,76,162 2,36,64,15,302 2,71,45,76,162 2,36,64,15,302
Sheet Exposure
Provision for Bonus/Ex-gratia 13.07 2,55,47,29,821 2,56,35,42,979 2,54,03,73,730 2,55,12,51,687
Foreign Correspondent Charges 7,60,012 6,48,188 7,60,012 6,48,188
Adjusting Account Credit Balance 36,55,137 36,55,137 36,55,137 36,55,137
Provision for NOSTRO A/C 3,50,489 1,00,10,305 3,50,489 1,00,10,305
Interest Bearing FC Repayable
51,88,50,89,510 50,45,21,79,322 51,88,50,89,510 50,45,21,79,322
to Bangladesh Bank
Vocational Women's
2,56,353 2,56,353 2,56,353 2,56,353
Cr.Scheme Guarantee Fund
Agricultural Guarantee Against
1,95,62,612 1,95,62,612 1,95,62,612 1,95,62,612
I.D.A. Credit -724 B.D.
Industrial Cr. Guarantee
18,34,493 18,34,493 18,34,493 18,34,493
Claims received Fund
Bangladesh Bank Cr.Guarantee
1,78,997 1,78,997 1,78,997 1,78,997
Fee I.D.A Cr. - 825 B.D.
BSCIC Service Charges
48,81,122 48,81,122 48,81,122 48,81,122
I.D.A Credit -825 B.D.
Revolving fund against I.D.A.
3,72,40,733 3,72,40,733 3,72,40,733 3,72,40,733
Credit -725 B.D.
Sundry Deposits (H.O) 11,75,21,30,857 10,66,60,36,489 11,75,21,30,857 10,66,60,36,490
Interest Subsidy Account 35,85,618 35,85,618 35,85,618 35,85,618
288
Amount in Taka
2021 2020 2021 2020
SPL A/C's Proceeds of Import

7,87,657 7,87,657 7,87,657 7,87,657
Documents Dr.of F.C( NBP)
Special accounts surplus
8,479 8,479 8,479 8,479
Proceeds of Import Goods
Unclaimed Dividend (NBP) 1,49,578 1,49,578 1,49,578 1,49,578
AST-CIDA Guarantee Fund
45,312 45,312 45,312 45,312
for MCDSF.
Mother Club Women's
25,54,409 25,54,409 25,54,409 25,54,409
Cr.Guarantee Fund
Loan from IDA Credit No. 765 BD. 5,68,24,870 5,68,24,870 5,68,24,870 5,68,24,870
Sirajganj Integrated Rural
4,11,04,457 4,04,88,334 4,11,04,457 4,04,88,334
Development Fund
Provison for Other Bank's and
1,22,94,54,058 74,52,00,000 1,22,94,54,058 74,52,00,000
Financial Institutions
I.D.A. Credit -3917 B.D 22,41,19,540 22,41,19,540 22,41,19,540 22,41,19,540
VOSTRO Accounts Balance 13.08 7,06,06,896 7,07,46,334 7,06,06,896 7,07,46,334
Refinance fund for Milk Product and
1,96,00,000 9,47,55,000 1,96,00,000 9,47,55,000
Artificial Inse. Scheme-RCD
E-Challan statement
26,66,34,536 29,36,535 26,66,34,536 29,36,535
account credit balance
ATM settlement account
1,14,21,985 6,16,77,352 1,14,21,985 6,16,77,352
credit balance
Clearing settlement
4,42,82,411 4,12,46,955 4,42,82,411 4,12,46,955
account credit balance
Govt. Transaction settlement
29,19,66,00,780 18,90,19,70,229 29,19,66,00,780 18,90,19,70,229
account credit Balance
MCD Loan settlement
16,47,943 16,48,943 16,47,943 16,48,943
FET settlement account
5,25,34,75,743 1,83,52,49,307 5,25,34,75,743 1,83,52,49,307
credit Balance
Sanchaypatra sales account
6,12,12,18,938 8,34,33,99,150 6,12,12,18,938 8,34,33,99,150
credit Balance
Imprest A/C-Received from
8,16,50,564 18,86,859 8,16,50,564 18,86,859
B.B against W.E.R Account
Lease Liability against IFRS-16 41,44,70,357 40,49,32,399 41,44,70,357 40,49,32,399
Travel Tax Online
28,21,750 1,16,000 28,21,750 1,16,000
Transaction (LO) Account
Travel Tax Central Recovery Account 6,90,000 1,40,250 6,90,000 1,40,250
E-Passport Central Recovery Account 5,28,500 3,47,300 5,28,500 3,47,300
29,87,796 4,477 29,87,796 4,477
Settlement A/C Credit Balance
Repayable to B.B against Stimulus
Fund Received for Worker's Salary
15,54,11,339 20,98,05,286 15,54,11,339 20,98,05,286
of Export Oriented Industries Under
COVID-19
Interest Suspense Account
2,16,572 88,82,16,631 2,16,572 88,82,16,631
for COVID-19
Repayable to B.B for Fund Received
UnderAgri. Loan against Special Stimulus 2,06,43,51,400 22,29,47,000 2,06,43,51,400 22,29,47,000
RefinanceScheme (RCD) for COVID-19
Provision for Other assets 5,09,98,56,909 1,04,64,35,237 5,09,98,56,909 1,04,64,35,237
Provision for Branch Adjustment of
4,15,00,00,000 2,00,00,00,000 4,15,00,00,000 2,00,00,00,000
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Provision for Jute Sector

2,40,00,00,000 2,10,00,00,000 2,40,00,00,000 2,10,00,00,000
Reform Project
Provision for Army Pension Bills 50,00,00,000 50,00,00,000 50,00,00,000 50,00,00,000
Provision for Preliminary
95,00,000 95,00,000 95,00,000 95,00,000
Expenses HR Recruitment
Provision for NRT Account
43,57,75,867 43,57,75,867 43,57,75,867 43,57,75,867
Debit Balance
Provision for Orion
30,36,00,000 - 30,36,00,000 -
Infrastructure Ltd.
Provision for Sanchaypatra
1,00,00,00,000 - 1,00,00,00,000 -
Encashment Account
Provision for Others 4,23,97,174 1,15,87,00,000 4,23,97,174 1,15,87,00,000
Provision for Start-Up Fund 13.09 6,72,66,681 3,27,00,000 6,72,66,681 3,27,00,000
BB Refinance Scheme for
- 7,44,750 - 7,44,750
S.M.L of Tk.10 A/C Holders
Rebate A/C of Term Loans to NBFI - 3,50,452 - 3,50,452
Repayable to B.B for Fund Received Under
11,70,00,001 - 11,70,00,001 -
Revolving Refinance Scheme for COVID-19
Repayable to Borrower the Interest Subsidy Fund
9,45,62,650 - 9,45,62,650 -
Received from BB againstCOVID-19
Interest Bearing F.C (Payra Port
2,59,41,99,333 - 2,59,41,99,333 -
Authority)Repayable to B.B
BB Refinance Scheme (200
2,99,90,000 - 2,99,90,000 -
Crore) for Jute Sector
Provision for Staff Loan
5,00,00,000 - 5,00,00,000 -
Exemption A/C
Bank POS settlement
1,01,300 - 1,01,300 -
SPG Settlement Account
1,27,97,334 - 1,27,97,334 -
Credit Balance
Provision against Portfolio Loan 38,90,11,537 38,90,11,538 - -
Expenses Payable for SIL
2,76,16,574 2,72,95,387 - -
Client Sale & Others
Others liabilities of
3,87,57,397 14,02,91,937 - -
subsidiary Company SIL
Others liabilities of
2,86,20,736 16,17,20,525 - -
subsidiary Company SECI
Others liabilities of subsidiary
9,14,32,918 - -
Company SB(UK) Ltd.
Portfolio Margin Deposit Control 5,47,83,712 4,38,14,309 - -
Remittance Payable to Beneficiary 7,35,15,413 8,17,84,999 - -
Security Deposit of SIL 2,29,814 2,29,814 - -
Security Deposit of SECI 1,11,540 1,18,723 - -
2,77,74,75,00,105 2,45,37,79,71,970 2,76,48,09,28,713 2,44,01,58,95,253
Overseas Branches
Other Liabilities 1,34,83,70,785 1,33,53,89,342 1,34,83,70,785 1,33,53,89,342
Reserve Fund 23,09,75,051 19,21,67,998 23,09,75,051 19,21,67,998
1,57,93,45,836 1,52,75,57,340 1,57,93,45,836 1,52,75,57,340
Other Liabilities 69,00,82,860 73,91,91,822 69,00,82,860 73,91,91,822
Total 2,80,01,69,28,802 2,47,64,47,21,131 2,78,75,03,57,410 2,46,28,26,44,415
290
Amount in Taka
2021 2020 2021 2020
13.01 a) Provision for Classified loans Including writ

Balance at the beginning of the year 57,70,54,51,597 53,01,63,79,222 57,70,54,51,597 53,01,63,79,222
Less: Provision debited against interest waiver 59,80,00,951 16,96,15,666 59,80,00,951 16,96,15,666
57,10,74,50,646 52,84,67,63,556 57,10,74,50,646 52,84,67,63,556
Add: Provision credited against Debit
6,32,967 2,61,827 6,32,967 2,61,827
TRA from Branches
57,10,80,83,613 52,84,70,25,383 57,10,80,83,613 52,84,70,25,383
Add: Specific Provision (including
6,42,23,74,810 4,81,80,78,643 6,41,84,47,607 4,81,80,78,643
Islami Win.) made during the year
Add: Overseas Branches 18,60,177 4,03,47,571 18,60,177 4,03,47,571
Closing Balance at the end of the
63,53,23,18,601 57,70,54,51,597 63,52,83,91,397 57,70,54,51,597
year
b) Provision for Un-Classified loans
Less: Loans written off which fully
- - - -
Provided for
12,46,02,67,522 5,35,75,15,747 12,46,02,67,522 5,35,75,15,747
Add: Recovery from the Previous
- - - -
Written Off Loans
12,46,02,67,522 5,35,75,15,747 12,46,02,67,522 5,35,75,15,747
Add: Provision made during the year (31,17,46,840) 6,07,31,44,457 (31,17,46,840) 6,07,31,44,457
12,14,85,20,682 11,43,06,60,204 12,14,85,20,682 11,43,06,60,204
Less: Provision which no more required 5,00,09,91,894 - 5,00,09,91,894 -
7,14,75,28,788 11,43,06,60,204 7,14,75,28,788 11,43,06,60,204
Add: Special General Provision against COVID-19 5,00,09,91,894 1,02,81,06,037 5,00,09,91,894 1,02,81,06,037
Add: Overseas Branches 7,91,219 15,01,281 7,91,219 15,01,281
Closing Balance at the end of the year 12,14,93,11,901 12,46,02,67,522 12,14,93,11,901 12,46,02,67,522
Special General Provision against COVID-19 has been maintained as per Bangladesh Bank, BRPD circular letter no.56
dated 10 December 2020 and BRPD circular letter no.50 dated 14 December 2021. This amount is included with the total
Provision on Un-classified loans and advances under note-13.01(b).
13.02 Interest Suspense

Balance at the beginning of the period
Interest Suspenses 46,37,18,74,612 39,94,59,61,385 46,01,79,40,866 39,59,29,54,868
Interest Suspenses Penal Interest 22,72,153 22,70,040 22,72,153 22,70,040
46,37,41,46,765 39,94,82,31,425 46,02,02,13,019 39,59,52,24,908
Add: Amount transferred to "Interest
- - - -
Suspense" Account during the year
Interest Suspenses Penal Interest 27,214 2,113 27,214 2,113
8,45,05,08,000 7,86,76,42,273 8,37,07,67,627 7,84,40,82,987
Less: Amount Recovered in "Interest Suspense" account during the year
Interest Suspenses Penal Interest 8,71,674 - 8,71,674 -
3,15,04,14,574 1,44,17,26,932 3,07,29,38,845 1,41,90,94,875
Less: Amount written off during the year
Interest Suspenses - - - -
Interest Suspenses Penal Interest - - - -
- - - -
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Closing Balance at the end of the period

Interest Suspenses Penal Interest 14,27,693 22,72,153 14,27,693 22,72,153
Total 51,67,42,40,190 46,37,41,46,765 51,31,80,41,800 46,02,02,13,019
13.03 Provision against diminishing value of Investment in Share

Add: Additional during the year (63,28,60,461) (88,42,16,807) (63,28,60,461) (88,42,16,807)
13.04 Liability for Employees Pension fund

Less: Payment made during the year 1,21,32,01,859 30,85,07,450 1,21,32,01,859 30,85,07,450
Add: Addition during the year 5,20,63,055 27,01,17,331 5,20,63,055 27,01,17,331
Closing Balance at the end of the year 53,42,83,470 1,69,54,22,274 53,42,83,470 1,69,54,22,274
Provision Required 53,42,83,470 53,42,83,470 53,42,83,470 1,69,54,22,274
Provision Maintained 53,42,83,470 53,42,83,470 53,42,83,470 1,69,54,22,274
Provision Surplus/(Deficit) - - - -
13.05 Liability for Employees PDCR Benefit fund

Balance at the beginning of
5,88,70,13,188 9,63,69,66,300 5,88,70,13,188 9,63,69,66,300
the year
Less: Payment made during the year 6,79,00,34,969 7,56,78,76,124 6,79,00,34,969 7,56,78,76,124
Add: Addition during the year 3,47,58,50,007 3,81,79,23,013 3,47,58,50,007 3,81,79,23,013
Provision Required 2,57,28,28,226 5,88,70,13,188 2,57,28,28,226 5,88,70,13,188

Provision Maintained 2,57,28,28,226 5,88,70,13,188 2,57,28,28,226 5,88,70,13,188
Provision Surplus/(Deficit) - - - -
13.06 Provision for Income Tax

Less: Adjustment for excess provision 39,27,204 4,53,936 - -
Less: Payment during the year 3,84,93,135 3,39,60,790 - -
Add: Adjustment for Rebate of SB (UK)
1,54,75,016 - - -
Ltd.
Add : Amount transferred during the
57,48,80,590 52,23,84,698 51,15,09,649 50,59,75,162
year
Closing Balance at the end
6,65,81,22,696 6,11,01,87,429 6,55,34,08,965 6,04,18,99,316
of the year
13.07 Provision for Bonus/Ex-gratia

Balance at the beginning of the period 2,56,35,42,979 2,18,05,91,339 2,55,12,51,687 2,16,97,69,115
Less: Payment during the year 2,31,56,11,663 1,67,08,05,907 2,31,26,76,463 1,66,87,74,975
Less: Return from Bonus 20,00,00,000 45,00,00,000 20,00,00,000 45,00,00,000
Add: Adjustment during the year 17,98,505 2,57,547 17,98,505 2,57,547
Add: Provision Made during the year 2,50,50,00,000 2,50,35,00,000 2,50,00,00,000 2,50,00,00,000
Closing Balance at the end of the
2,55,47,29,821 2,56,35,42,979 2,54,03,73,730 2,55,12,51,687
period
292
13.08 VOSTRO Accounts Balance

SL.
Particulars Foreign Amount in
No. FC amount Exchange rate
Currency Taka
Myanmar Foreign Trade Bank,
1 EURO 1,16,456.37 97.383 1,13,40,871
Myanmar
2 Office Account EURO 10,782.00 97.383 10,49,984
3 Sonali Bank Ltd Kolkata USD 14,398.91 85.800 12,35,426
The Jammu & Kashmir Bank
4 USD 25,158.50 85.800 21,58,599
Ltd.
Myanmar Investment & Com.
5 USD 4,98,258.04 85.800 4,27,50,540
Bank
6 Office Account USD 1,37,019.87 85.800 1,17,56,305
7 Export Development Bank Ltd. USD 115.85 85.800 9,940
8 Bank of Ceylon, Srilanka USD 3,557.49 85.800 3,05,233
Total 8,05,747.03 7,06,06,896
13.09 Start-up Fund has been maintained as per Bangladesh Bank SMESPD circular no. 04 and 05 dated 29 March
2021 and 26 April 2021 respectively. In prior year the fund was created based on operating profit but as per
latest circular, base for the fund was changed to net profit. Bank has created the fund accordingly.
Amount in Taka
2021 2020 2021 2020
14.00 Share Capital 45,30,00,00,000 45,30,00,00,000 45,30,00,00,000 45,30,00,00,000
14.01 Authorized Capital

600,000,000 ordinary shares of Taka 60,000,000,000 60,000,000,000 60,000,000,000 60,000,000,000
100 each
14.02 Issued, subscribed and fully paid up

Capital
453,000,000 ordinary shares of Taka 45,300,000,000 45,300,000,000 45,300,000,000 45,300,000,000
100 each
The entire amount of the paid up capital has been subscribed by the Government of the People’s Republic of
Bangladesh but each Director of the Bank is the holder of one symbolic Share of taka one hundred.
14.03 Capital To Risk Weighted Assets Ratios (CRAR)

In terms of section 13(2) of Bank Company Act, 1991 and Bangladesh Bank BRPD circular no. 09 dated 31
December 2008 and BRPD circular no. 18 dated 21 December 2014, required capital of the Bank at the close of
business on 31 December 2021 was Taka 66,62,70,40,000.00 as against core capital of Taka 52,00,90,09,063.62
and supplementary capital of Taka 14,86,38,88,062.65 i.e. a total capital of Taka 66,87,28,97,126.27 has been
maintained, thereby showing a surplus of capital/equity of Taka 24,58,57,126.27 at the year end:
Total risk weighted assets including off- 6,64,03,45,00,000 6,34,70,92,00,000 6,66,27,04,00,000 6,33,60,17,00,000
balance sheet items
Required capital @ 10% of risk weighted 66,40,34,50,000 63,47,09,20,000 66,62,70,40,000 63,36,01,70,000
assets
Capital held:
Tire 1 Capital 14.03.02 56,25,92,60,783 48,66,18,74,097 52,00,90,09,064 48,67,41,81,858
Tier 2 Capital 14.03.03 14,86,38,88,063 14,82,66,82,824 14,86,38,88,063 14,82,66,82,824
Total Eligible Regulatory Capital (Tier 1 71,12,31,48,845 63,48,85,56,921 66,87,28,97,126 63,50,08,64,681
and 2)
Total capital surplus 4,71,96,98,845 1,76,36,921 24,58,57,126 14,06,94,681
CRAR/ CAR Based on Basel-III/ (II) 10.71% 10.00% 10.04% 10.02%
Framework
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
14.03.01 Capital requirement Required Held Held Held Held

Tier - I (Minimum CET-1 @ 5.5% 8.47% 7.67% 7.81% 7.68%
4.5%)
Tier - II ( Maximum up to 4.5% 2.24% 2.34% 2.23% 2.34%
4% of the total RWA or
88.89% of CET-1 whichever
is higher applicable from 01
January 2015)
Total 10.0% 10.71% 10.00% 10.04% 10.02%
Amount in Taka
2021 2020 2021 2020
14.03.02 Tier 1 Capital
A. Common Equity Tier 1 (CET1) Capital (Going-Concern Capital)
Paid up capital 45,30,00,00,000 45,30,00,00,000 45,30,00,00,000 45,30,00,00,000
Statutory reserve 15.00 14,54,70,96,640 13,46,90,02,429 14,54,70,96,640 13,46,90,02,429
Other reserve 26,18,88,441 16,57,13,816 16,67,62,690 16,57,13,816
Retained earnings (6,87,66,52,225) (9,65,52,38,388) (7,35,35,68,706) (9,64,75,75,963)
Share money deposit 3,69,22,00,485 - - -
Sub-total 56,92,45,33,342 49,27,94,77,857 52,66,02,90,624 49,28,71,40,282
Less : Intangible Assets (Sofware) 66,52,72,559 61,76,03,760 65,12,81,561 61,29,58,425
Less : Deferred Tax Assets 14.03.2a - - - -
Total 56,25,92,60,783 48,66,18,74,097 52,00,90,09,064 48,67,41,81,858
B. Additional Tier-1 Capital
Non-cumulative irredeemable
- - - -
preference shares
Instruments issued by the banks that
- - - -
meet the qualifying criteria for AT1
Others (if any item approved by
- - - -
Bangladesh Bank)
- - - -
Less: Regulatory Adjustments from
- - - -
AT-1 Capital
(Shortfall Provision against NPLs) - - - -
Total Tier 1 Capital (A+B) 56,25,92,60,783 48,66,18,74,097 52,00,90,09,064 48,67,41,81,858
14.03.03 Tier 2 Capital

Tier 2 Capital (Gone-concern Capital)
General provision maintained against
unclassified loans and off-balance 14,86,38,88,063 14,82,66,82,824 14,86,38,88,063 14,82,66,82,824
sheet exposures
Assets revaluation reserve - - - -
Revaluation Reserve for HTM
- - - -
securities
Revaluation Reserve for Equity - - - -
14,86,38,88,063 14,82,66,82,824 14,86,38,88,063 14,82,66,82,824
Less: 100% Revaluation Reserves for
- - - -
Fixed Assets, Securities
Total Tier 2 Capital 14,86,38,88,063 14,82,66,82,824 14,86,38,88,063 14,82,66,82,824
294
Amount in Taka
2021 2020 2021 2020
14.03.2a As per Bank request dated 26 April 2022, Bangladesh Bank allowed deferral through vide no-
DOS(CAMS)1157/01(II)-C/2022-2299 dated 28 April 2022 not to deducted deferred tax assets against Common
Equity Tier-1 (CET-1) Capital amounting taka 2,750.04 crore regarding total provision as on 31 December 2021.
Bank has complied that instruction accordingly.
14.04 Risk Weighted Assets (RWA) (Taka in Crore)

Credit Risk
i) On-Balance Sheet Exposure 51,321.03 47,295.43 51,650.80 47,313.26
ii) Off Balance Sheet Exposure 1,654.88 1,533.92 1,654.88 1,533.92
Market Risk 6,430.18 6,290.87 6,430.18 6,221.51
Operational Risk 6,997.36 8,350.70 6,891.18 8,291.48
Total Risk Weighted Assets (A+B+C) 66,403.45 63,470.92 66,627.04 63,360.17
14.05 Minimum Capital Requirement Under Basel III (Amount in Taka)

A. Eligible Capital :
1. Common Equity Tier 1 (CET1)
56,25,92,60,783 48,66,18,74,097 52,00,90,09,064 48,67,41,81,858
Capital (Going-concern capital )
2. Tier 2 Capital (Gone-concern
14,86,38,88,063 14,82,66,82,824 14,86,38,88,063 14,82,66,82,824
Capital)
3. Tier-3 (eligible for market risk only) - - - -
4. Total Eligible Capital (1+2+3) : 71,12,31,48,845 63,48,85,56,920 66,87,28,97,126 63,50,08,64,681
B. Total Risk Weighted Assets (RWA): 6,33,60,17,00,000

6,64,03,45,00,000 6,34,70,92,00,000 6,66,27,04,00,000
C. Capital Adequacy Ratio (CAR) (A4 / B)*100 10.71% 10.00% 10.04% 10.02%
D. Core Capital to RWA (A1 / B)*100 8.47% 7.67% 7.81% 7.68%
E. Supplementary Capital to RWA (A2 / B)*100 2.24% 2.34% 2.23% 2.34%
F. Minimum Capital Requirement (MCR) 66,40,34,50,000 63,47,09,20,000 66,62,70,40,000 63,36,01,70,000
14.06 Ratio (As per Basel III requirement)

Capital Related Ratio
CRAR 10.71% 10.00% 10.04% 10.02%
Leverage Ratio 3.05% 2.77% 2.83% 2.80%
Liquidity Related Ratio:
Liquidity Coverage Ratio 422.54% 539.08%
Net Stable Funding Ratio 100.73% 100.45%
14.06.1 Details about Ratio
a) Capital to Risk-weighted Asset Ratio
Total Eligible Capital

CRAR (Bank) =
Credit RWA+Market RWA+Operational RWA
66,87,28,97,126
=
6,66,27,04,00,000
= 10.04%
71,12,31,48,845
CRAR (Consolidated) =
6,64,03,45,00,000
= 10.71%
Annual Report 2021

b) Leverage Ratio
Tier 1 Capital (after relate deductions)
LR =
Total Exposure (after relate deductions)
52,00,94,00,000
LR (Bank) =
18,39,47,35,27,817
= 2.83%
56,25,92,00,000
LR(Consolidated) =
18,47,12,94,78,544
= 3.05%
c) Liquidity Coverage Ratio
Stock of quality liquid assets
LCR =
Total net cash outflows over the next 30 calendar days
6,78,51,83,69,000
=
1,60,58,26,35,400
= 422.54%
d) Net Stable Funding Ratio
Available amount of stable funding (ASF)
NSFR =
Required amount of stable funding (RSF)
1,18,26,44,350
=
1,17,40,32,846
= 100.73%
14.07 Details about Shareholding as at 31 December 2021
Name of Shareholders As at 31 Dec. 2021 Amount in Taka
Government of the People's Republic of Bangladesh represented by

452,999,992 452,999,992,200
Finance Secretary, Ministry of Finance
Mr. Ziaul Hasan Siddiqui 1 100
Mr. A K M Kamrul Islam FCA, FCS 1 100
Mr. Ishtiaque Ahmed Chowdhury 1 100
Mrs. Dr. Doulatunnaher Khanam 1 100
Mr.Md. Mofazzal Husain 1 100
Mr. Molla Abdul Wadud 1 100
Prof. Dr. Mohammad Kaykobad 1 100
Mr. A. B. M Ruhul Azad 1 100
Total 45,30,00,000 45,30,00,00,000
296
14.08 Name of Directors and their Shareholding

Name of the directors Status Amount in Taka
Mr. Ziaul Hasan Siddiqui Chairman & Director 100
Mr. A K M Kamrul Islam FCA, FCS Director 100
Mr. Ishtiaque Ahmed Chowdhury Director 100
Mrs. Dr. Doulatunnaher Khanam Director 100
Mr.Md. Mofazzal Husain Director 100
Mr. Molla Abdul Wadud Director 100
Prof. Dr. Mohammad Kaykobad Director 100
Mr. A. B. M Ruhul Azad Director 100
Total 800
Amount in Taka
2021 2020 2021 2020
15.00 Statutory Reserve

Opening Balance 13,46,90,02,429 12,40,05,72,516 13,46,90,02,429 12,40,05,72,516
Add: Transferred during the year
1,07,80,94,211 1,06,84,29,913 1,07,80,94,211 1,06,84,29,913
(20% of pre-tax profit )
Total 14,54,70,96,640 13,46,90,02,429 14,54,70,96,640 13,46,90,02,429
16.00 Other Reserves

Reserve for Unforeseen Loss 16.01 4,70,00,000 4,70,00,000 4,70,00,000 4,70,00,000
Reserve for CSR 16.02 10,47,62,690 10,37,13,816 10,47,62,690 10,37,13,816
Reserve of SB (UK) Ltd. 9,51,25,751 - - -
Reserve for Unwanted Risk
1,50,00,000 1,50,00,000 1,50,00,000 1,50,00,000
arising from Vault
Total 26,18,88,441 16,57,13,816 16,67,62,690 16,57,13,816
16.01 Reserve for Unforeseen Loss

Balance at the beginning of the year 4,70,00,000 4,70,00,000 4,70,00,000 4,70,00,000
Transfer to Reserve for Unforeseen losses - - - -
4,70,00,000 4,70,00,000 4,70,00,000 4,70,00,000
16.02 Reserve for CSR

Distribution during the year (4,89,51,126) (1,86,64,274) (4,89,51,126) (1,86,64,274)
Reserve for CSR against COVID-19 - 3,00,00,000 - 3,00,00,000
Reserve for CSR during the Year 5,00,00,000 2,00,00,000 5,00,00,000 2,00,00,000
10,47,62,690 10,37,13,816 10,47,62,690 10,37,13,816
17.00 Revaluation Reserve

Revaluation of Investment 17.01 2,58,66,71,024 14,83,25,31,640 2,58,66,71,024 14,83,25,31,640
Assets Revaluation Reserve 17.02 21,49,59,33,277 21,49,59,33,277 21,49,59,33,277 21,49,59,33,277
Total 24,08,26,04,301 36,32,84,64,917 24,08,26,04,301 36,32,84,64,917
17.01 Revaluation of investment

Revaluation Reserve for
17.01.01 18,53,07,716 77,58,86,973 18,53,07,716 77,58,86,973
Held to Maturity (HTM)
17.01.02 2,07,90,63,854 13,54,74,74,400 2,07,90,63,854 13,54,74,74,400
Held for Trading (HFT)
17.01.03 32,22,99,454 50,91,70,267 32,22,99,454 50,91,70,267
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Balance at the end of the year 2,58,66,71,024 14,83,25,31,640 2,58,66,71,024 14,83,25,31,640
17.01.01 Revaluation Reserve for Held to Maturity (HTM)

Less : Loss on Revaluation of HTM 8,46,99,269 3,98,32,465 8,46,99,269 3,98,32,465
Balance at the end of the year 18,53,07,716 77,58,86,973 18,53,07,716 77,58,86,973
17.01.02 Revaluation Reserve for Held for Trading (HFT)

Balance at the beginning of the year 14,22,27,52,926 (16,20,49,450) 14,22,27,52,926 (16,20,49,450)
Less : Loss on Revaluation of HFT (12,14,36,89,072) 13,70,95,23,849 (12,14,36,89,072) 13,70,95,23,849
Balance at the end of the year 2,07,90,63,854 13,54,74,74,400 2,07,90,63,854 13,54,74,74,400
17.01.03 Revaluation Reserve for Remeasured Securities (RMS)

Balance at the beginning of the period 50,91,70,267 5,12,42,503 50,91,70,267 5,12,42,503
Add: Revaluation Gain on Remeasured
(18,68,70,814) 45,79,27,764 (18,68,70,814) 45,79,27,764
Securities (RMS)
Balance at the end of the period 32,22,99,454 50,91,70,267 32,22,99,454 50,91,70,267
17.02 Assets Revaluation Reserve

Balance at the beginning of the period 21,49,59,33,277 21,49,59,33,277 21,49,59,33,277 21,49,59,33,277
Addition during the year - - - -
Balance at the end of the period 21,49,59,33,277 21,49,59,33,277 21,49,59,33,277 21,49,59,33,277
18.00 Surplus in Profit and Loss Account/Retained Earnings

Balance at the beginning of the year (9,65,52,38,388) (11,84,25,86,699) (9,64,75,75,963) (11,74,84,95,492)
Add: Previous Year
- - - -
Adjustment
Opening Balance (9,65,52,38,388) (11,84,25,86,699) (9,64,75,75,963) (11,74,84,95,492)
Net Profit After Tax 3,80,59,55,276 3,32,08,34,677 3,45,66,68,149 3,23,43,49,442
Transfer to Statutory
(1,07,80,94,211) (1,06,84,29,913) (1,07,80,94,211) (1,06,84,29,913)
Reserve
Transfer to Reserve for CSR (5,00,00,000) (5,00,00,000) (5,00,00,000) (5,00,00,000)
Transfer to Start-Up Fund (3,45,66,681) - (3,45,66,681) -
Transfer to Share Money of
(8,15,100) - - -
SECI
Adjustment for Investment in SB (UK)
13,67,59,936 - - -
Ltd.
Transfer to Reserve for Unwanted Risk
- (1,50,00,000) - (1,50,00,000)
arising from Vault
2,77,92,39,220 2,18,74,04,764 2,29,40,07,257 2,10,09,19,529
Total Retained Surplus (6,87,59,99,168) (9,65,51,81,935) (7,35,35,68,706) (9,64,75,75,963)
Currency Conversion
(6,53,056) (56,453) - -
differences
Balance at the end of the
(6,87,66,52,225) (9,65,52,38,388) (7,35,35,68,706) (9,64,75,75,963)
year
19.00 Contingent Liabilities & Commitments

Letters of guarantee 19.01 9,45,44,78,857 7,47,48,57,353 9,45,44,78,857 7,47,48,57,353
Irrevocable Letters of Credit 19.02 8,68,31,88,36,307 9,36,60,02,05,509 8,68,31,88,36,307 9,36,60,02,05,509
298
Amount in Taka
2021 2020 2021 2020
Bills for collection 19.03 8,42,01,38,856 5,33,80,03,972 8,42,01,38,856 5,33,80,03,972

8,86,19,34,54,020 9,49,41,30,66,834 8,86,19,34,54,020 9,49,41,30,66,834
Significant amount of irrevocable L/C has been incurred in 2017 because of opening a special L/C amounting
to Tk. 96.246 crores in favor of Ministry of Power, Energy and Mineral Resources, Government of the Republic
of Bangladesh for Ruppur Nuclear power plant.
19.01 Letters of guarantee

Claims lodged with the bank company, which is not recognized as loan;
Money for which the bank is contingently liable in respect of guarantee issued favoring:
Directors or officers - - - -
Government 3,77,86,15,861 1,38,39,82,054 3,77,86,15,861 1,38,39,82,054
Banks and other financial institutions 91,42,716 1,19,58,700 91,42,716 1,19,58,700
Others:
Domestic 5,66,17,83,481 6,07,39,56,206 5,66,17,83,481 6,07,39,56,206
Overseas 49,36,799 49,60,393 49,36,799 49,60,393
9,45,44,78,857 7,47,48,57,353 9,45,44,78,857 7,47,48,57,353
19.02 Irrevocable Letters of Credit

(i) Government
Domestic 7,74,13,80,90,388 9,18,03,68,94,689 7,74,13,80,90,388 9,18,03,68,94,689
Overseas - - - -
7,74,13,80,90,388 9,18,03,68,94,689 7,74,13,80,90,388 9,18,03,68,94,689
Less: Margin - - - -
Sub Total 7,74,13,80,90,388 9,18,03,68,94,689 7,74,13,80,90,388 9,18,03,68,94,689
(ii) Bank and Other Financial Institutions
Domestic - - - -
Overseas - - - -
- - - -
Sub-total - - - -
(iii) Others
Domestic 94,18,01,61,573 18,56,33,10,821 94,18,01,61,573 18,56,33,10,821
Overseas 5,84,345 - 5,84,345 -
94,18,07,45,919 18,56,33,10,821 94,18,07,45,919 18,56,33,10,821
Sub Total 94,18,07,45,919 18,56,33,10,821 94,18,07,45,919 18,56,33,10,821
Total of (i+ii+iii) 8,68,31,88,36,307 9,36,60,02,05,509 8,68,31,88,36,307 9,36,60,02,05,509
19.03 Bills for collection

Payable in Bangladesh
19.03.01 3,23,85,72,638 2,18,03,77,667 3,23,85,72,638 2,18,03,77,667
(Inland Bills)
Payable Outside
19.03.02 5,18,15,66,218 3,15,76,26,305 5,18,15,66,218 3,15,76,26,305
Bangladesh (Foreign Bills)
8,42,01,38,856 5,33,80,03,972 8,42,01,38,856 5,33,80,03,972
19.03.01 Payable of Inland Bills (Divisional office-wise)

Dhaka Division-1 2,26,42,76,488 1,77,01,68,941 2,26,42,76,488 1,77,01,68,941
Dhaka Division-2 70,36,91,615 25,32,21,721 70,36,91,615 25,32,21,721
Chattagram 13,91,38,799 7,37,90,917 13,91,38,799 7,37,90,917
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Khulna 12,39,50,834 5,47,19,135 12,39,50,834 5,47,19,135

Cumilla 39,77,721 39,77,721 39,77,721 39,77,721
Faridpur 35,37,181 2,44,99,232 35,37,181 2,44,99,232
Rajshahi - - - -
Rangpur - - - -
Barishal - - - -
Sylhet - - - -
Mymensingh - - - -
3,23,85,72,638 2,18,03,77,667 3,23,85,72,638 2,18,03,77,667
19.03.02 Payable of Foreign Bills (Divisional office-wise)

Dhaka Division-1 1,74,32,21,024 1,65,45,00,012 1,74,32,21,024 1,65,45,00,012
Dhaka Division-2 14,70,55,433 65,31,913 14,70,55,433 65,31,913
Chattagram 2,96,40,60,806 1,24,59,46,118 2,96,40,60,806 1,24,59,46,118
Khulna - - - -
Cumilla - - - -
Faridpur - - - -
Rajshahi - - - -
Rangpur - - - -
Barishal - - - -
Sylhet - - - -
Mymensingh - - - -
5,18,15,66,218 3,15,76,26,305 5,18,15,66,218 3,15,76,26,305
20.00 Income Statement

Income
Interest, discount and
20.01 73,40,64,11,078 72,06,63,90,142 72,43,72,15,760 71,95,60,38,630
similar income
Commission,Exchange and
20.02 13,36,95,65,973 12,48,85,34,651 13,05,15,74,985 12,27,34,91,482
brokerage
Other operating income 25.00 49,25,31,100 55,08,52,048 43,65,75,195 55,03,47,411
87,26,85,08,151 85,10,57,76,841 85,92,53,65,941 84,77,98,77,523
Expenses
Interest, fee and commission 43,69,70,85,916 41,91,73,59,748 43,53,70,89,183 41,90,66,06,914
Administrative expenses 20.03 16,90,72,06,979 15,93,94,66,251 16,30,77,04,740 15,78,43,21,450
Other operating expenses 4,53,33,76,080 4,82,12,92,878 4,36,41,50,197 4,76,83,10,483
Depreciation on banking assets 82,66,68,845 79,54,06,035 81,26,71,187 79,37,06,908
63,47,35,24,913 65,02,16,15,307 63,25,29,45,755

65,96,43,37,821
20.01 Interest, discount and similar income

Interest income 34,31,26,74,100 32,00,84,39,984 33,74,44,84,441 31,95,96,09,482
Discount Income - -
Interest income on treasury
39,09,37,36,978 40,05,79,50,158 38,69,27,31,319 39,99,64,29,147
bills, reverse repo, bonds
Interest on debenture - - - -
73,40,64,11,078 72,06,63,90,142 72,43,72,15,760 71,95,60,38,630
300
Amount in Taka
2021 2020 2021 2020
20.02 Commission,Exchange and brokerage

Exchange 74,77,70,374 67,88,68,104 74,77,70,374 67,88,68,104
Commission 12,62,17,95,599 11,80,96,66,547 12,30,38,04,611 11,59,46,23,378
13,36,95,65,973 12,48,85,34,651 13,05,15,74,985 12,27,34,91,482
20.03 Administrative Expenses

Salaries and allowances 15,14,65,75,924 14,50,83,21,704 14,82,28,23,616 14,42,41,70,475
Rent, Taxes, Insurance,
1,30,21,68,310 1,15,80,59,570 1,23,18,85,570 1,11,00,83,183
Electricity etc.
Legal expenses 14,91,39,354 3,67,68,592 1,89,17,304 3,41,04,542
Postage, Stamps,
5,48,31,589 4,62,61,924 4,76,23,595 4,11,50,365
Telecommunication etc.
Stationery, Printing,
17,64,41,844 16,49,67,821 16,76,83,896 15,91,06,918
Advertisement etc.
Managing Directors' salary
1,43,77,350 1,41,64,947 90,54,180 78,06,871
and fees
Directors' fees 2,14,64,755 43,69,200 50,99,600 36,17,900
Auditors' fees 4,22,07,854 65,52,495 46,16,980 42,81,195
16,90,72,06,979 15,93,94,66,251 16,30,77,04,740 15,78,43,21,450
21.00 Interest Income

On Loan and Advances 21.01 26,80,72,15,280 25,41,08,84,179 26,64,41,49,916 25,36,88,61,313
On balance with other
banks and financial 21.02 2,22,21,13,164 4,79,29,38,993 2,21,81,48,817 4,78,85,33,085
institutions
On Interest received from
21.03 5,41,32,808 5,86,26,008 5,41,32,808 5,86,26,008
foreign banks
Others Interest income 21.04 4,56,87,32,209 2,88,87,97,917 4,56,75,99,295 2,88,63,96,190
On Islamic Banking Window 22,24,92,190 29,35,06,462 22,24,92,190 29,35,06,462
On Overseas Branches 3,82,61,416 2,77,44,473 3,82,61,416 2,77,44,473
On Sonali Bank (UK) Ltd. 40,00,27,034 - - -
34,31,29,74,100 33,47,24,98,032 33,74,47,84,441 33,42,36,67,531
Less: Interest Income transferred to
3,00,000 1,46,40,58,048 3,00,000 1,46,40,58,048
Interest Suspense A/C
Total 34,31,26,74,100 32,00,84,39,984 33,74,44,84,441 31,95,96,09,482
21.01 Loan and Advances:

Loans
On Demand 3,353 8,103 3,353 8,103
On Small Loan 14,89,781 12,38,157 14,89,781 12,38,157
On House Building Loan (General) 57,24,23,864 49,40,30,041 57,24,23,864 49,40,30,041
On House Building Loan (Staff) 1,81,30,63,570 1,97,25,17,880 1,81,30,63,570 1,97,25,17,880
On Other Staff Loan 9,53,20,574 11,31,10,305 9,53,20,574 11,31,10,305
On Loan Under SB Industrial Credit Scheme 1,04,18,01,457 68,69,86,536 1,04,18,01,457 68,69,86,536
On Loan Under SB Agro based Ind.
21,68,02,311 19,63,59,129 21,68,02,311 19,63,59,129
Credit Scheme
On House Building Loan (Govt. Employees) 10,07,81,564 4,41,25,194 10,07,81,564 4,41,25,194
On House Building Loan
3,83,688 - 3,83,688 -
(Public University & UGC) A/C
On Agricultural Loan 1,49,65,39,847 2,80,82,59,458 1,49,65,39,847 2,80,82,59,458
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
On Micro Credit 42,28,89,472 42,98,19,803 42,28,89,472 42,98,19,803

On Loan against Imported
1,27,19,180 1,69,68,913 1,27,19,180 1,69,68,913
Merchandise (LIM)
On Loan Against Trust Receipts (LTR) 3,30,27,53,302 2,57,70,51,468 3,30,27,53,302 2,57,70,51,468
On Force Loan against Back to Back L/C 38,05,04,944 26,94,50,663 38,05,04,944 26,94,50,663
On Bridge Finance 1,35,771 - 1,35,771 -
On Small Business Loan Scheme 9,30,42,656 10,43,56,664 9,30,42,656 10,43,56,664
On Special Small Loan Program 4,58,115 7,49,345 4,58,115 7,49,345
On Sonali Credit 4,97,55,313 3,48,79,791 4,97,55,313 3,48,79,791
On SME Finance(WC to Ind.Serv.Trad.) 1,43,12,01,628 1,43,47,06,061 1,43,12,01,628 1,43,47,06,061
On SME Finance 18,66,95,325 6,40,42,418 18,66,95,325 6,40,42,418
On Term Loan to Freedom Fighter 1,29,83,64,172 1,27,01,86,006 1,29,83,64,172 1,27,01,86,006
On Foreign Currency Placement Account 2,69,34,035 2,45,12,881 2,69,34,035 2,45,12,881
On Portfolio loan to Investors 16,30,65,364 4,20,22,866 - -
On Personal loan 8,18,92,16,280 6,71,26,24,585 8,18,92,16,280 6,71,26,24,585
On Term Loan to Bank and NBFI 14,19,44,445 10,00,00,000 14,19,44,445 10,00,00,000
On Special F.C Term Loan to
85,80,57,870 1,19,10,15,017 85,80,57,870 1,19,10,15,017
Bangladesh Biman
On Special F.C Term Loan to Sonali
97,65,561 - 97,65,561 -
Bank (UK) Ltd.
On Investment (Placement of Best
5,36,35,422 50,00,00,000 5,36,35,422 50,00,00,000
Holdings Limited) A/C
On Special Loan - Interest Bearing
88,90,509 69,40,630 88,90,509 69,40,630
Advance Rent
On Rural Housing Finance - Sonali Neer A/C 1,05,29,693 92,16,634 1,05,29,693 92,16,634
On EDF Loan Account 9,25,66,677 13,80,63,827 9,25,66,677 13,80,63,827
On Loan against Bank Guarantee A/C 2,59,598 - 2,59,598 -
On TOD against Cash Incentive 26,181 - 26,181 -
On W.C under StimulusPackage for
1,04,10,00,183 33,71,41,630 1,04,10,00,183 33,71,41,630
Industries & Services against COVID-19
On Agricultural Loan against Concessional
15,64,52,802 1,87,19,963 15,64,52,802 1,87,19,963
Interest Rate against COVID-19
On Agricultural Loan against Special
6,21,80,041 85,61,228 6,21,80,041 85,61,228
Stimulus Refinance Scheme for COVID-19
On MCD Loan Under B.B
39,61,115 34,630 39,61,115 34,630
RevolvingRefinance Scheme for COVID-19
On SME Loan Under B.B Revolving Re-
31,18,68,714 3,67,29,713 31,18,68,714 3,67,29,713
Finance Scheme for COVID-19
On Special Term Loan against
3,59,280 1,40,825 3,59,280 1,40,825
Worker's Salary of EOI for COVID-19
On Long term loan at prevailing rate
5,69,170 6,91,012 5,69,170 6,91,012
of Interest (SECI)
Sub-total 23,64,84,12,828 21,64,52,61,378 23,48,53,47,464 21,60,32,38,512
Cash Credit
On Cash Credit General-Hypo 29,70,74,707 35,72,69,713 29,70,74,707 35,72,69,713
On Cash Credit General-Pledge 3,84,01,143 19,51,45,553 3,84,01,143 19,51,45,553
On Working Capital to Industries -Hypo 88,76,28,218 92,34,01,305 88,76,28,218 92,34,01,305
On Working Capital to Industries -Pledge 2,43,67,308 6,33,57,511 2,43,67,308 6,33,57,511
On Working Capital to Agro based Ind. -Hypo 50,22,16,834 52,60,08,149 50,22,16,834 52,60,08,149
On Working Capital to Agro based Ind. -Pledge 2,21,97,935 4,42,90,522 2,21,97,935 4,42,90,522
On Packing Cash Credit 3,08,51,971 3,04,35,803 3,08,51,971 3,04,35,803
Sub-total 1,80,27,38,116 2,13,99,08,556 1,80,27,38,116 2,13,99,08,556
302
Amount in Taka
2021 2020 2021 2020
Overdraft
On Overdraft Loan 1,24,64,39,028 1,56,07,02,028 1,24,64,39,028 1,56,07,02,028
Sub-total 1,24,64,39,028 1,56,07,02,028 1,24,64,39,028 1,56,07,02,028
Bills Discounted &
Purchased
On Payment against Document (PAD) 6,90,77,480 4,00,07,995 6,90,77,480 4,00,07,995
On Loan against Inland Bills 2,92,86,564 1,35,06,905 2,92,86,564 1,35,06,905
On Foreign Bills
Purchased/Documentary- 1,12,61,263 1,14,97,317 1,12,61,263 1,14,97,317
Documentary
Sub-total 10,96,25,307 6,50,12,217 10,96,25,307 6,50,12,217
Total 26,80,72,15,280 25,41,08,84,179 26,64,41,49,916 25,36,88,61,313
On Islamic Banking Window 2,10,71,781 2,28,34,608 2,10,71,781 2,28,34,608
Sub-total 5,91,06,233 4,97,82,332 5,91,06,233 4,97,82,332
21.02 Interest on balance held with other banks and financial institutions
Interest on fund placement/FDR with
2,21,81,48,817 4,78,85,33,085 2,21,81,48,817 4,78,85,33,085
Other Bank
Interest on STD with Other Bank of SIL 39,64,347 44,05,908 - -
Sub-total 2,22,21,13,164 4,79,29,38,993 2,21,81,48,817 4,78,85,33,085
Sub-total 20,11,76,261 27,06,71,854 20,11,76,261 27,06,71,854
21.03 Interest received from foreign banks

On Balance Held with
1,62,251 - 1,62,251 -
Foreign Bank Abrosd
On Foreign Currency
5,39,70,557 5,86,26,008 5,39,70,557 5,86,26,008
Account
Sub-total 5,41,32,808 5,86,26,008 5,41,32,808 5,86,26,008
21.04 Others Interest income

On Advance Rent - - - -
On Interest Recovered from Interest
3,07,29,38,845 1,41,72,00,653 3,07,29,38,845 1,41,72,00,653
Suspense A/c
On Recoveries from Written Off Loans 1,18,58,50,502 52,63,92,195 1,18,58,50,502 52,63,92,195
On Interest Income from SECI 11,32,914 24,01,727 - -
On Money at Call and Short Notice 30,88,09,948 94,28,03,342 30,88,09,948 94,28,03,342
Sub-total 4,56,87,32,209 2,88,87,97,917 4,56,75,99,295 2,88,63,96,190
On Islamic Banking
2,44,147 - 2,44,147 -
Window
On Overseas Branches 2,26,963 7,96,750 2,26,963 7,96,750
Sub-total 4,71,111 7,96,750 4,71,111 7,96,750
Total 33,91,29,47,066 33,47,24,98,032 33,74,47,84,441 33,42,36,67,531
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
22.00 Interest paid on deposits and borrowings etc.

Interest on Deposits 22.01 42,74,98,63,923 40,58,26,58,785 42,74,98,63,923 40,58,26,58,785
Interest on Borrowings 22.02 58,92,31,375 1,03,23,84,511 53,65,41,403 1,02,29,71,676
Interest on Foreign Banks Account 22.03 - - - -
Interest on others 22.04 8,00,46,083 8,42,97,944 7,92,10,206 8,36,44,491
Interest On SECI 5,58,395 6,86,546 - -
Interest On Sonali Bank (UK) Ltd. 10,59,12,489 - - -
Interest on Deposit and borrowings of
14,61,44,426 19,12,75,357 14,61,44,426 19,12,75,357
Interest on Deposit and borrowings of
2,53,29,225 2,60,56,605 2,53,29,225 2,60,56,605
Overseas Branches
43,69,70,85,916 41,91,73,59,748 43,53,70,89,183 41,90,66,06,914
22.01 Interest paid on Deposits

Fixed deposits 17,77,62,33,525 15,56,42,77,891 17,77,62,33,525 15,56,42,77,891
Savings deposits 11,05,51,36,347 11,37,75,30,332 11,05,51,36,347 11,37,75,30,332
Special Notice Deposits 5,57,00,19,133 4,80,09,91,062 5,57,00,19,133 4,80,09,91,062
Deposit pension scheme 3,89,899 21,76,501 3,89,899 21,76,501
Special deposit & pension scheme 47,788 16,369 47,788 16,369
S.B Employees Provident fund 1,65,76,83,269 1,62,34,05,417 1,65,76,83,269 1,62,34,05,417
Sonali Deposit Scheme 67,75,47,741 74,43,29,560 67,75,47,741 74,43,29,560
Education Deposit scheme 18,94,18,044 22,09,03,054 18,94,18,044 22,09,03,054
Medicare Deposit Scheme 1,10,71,33,349 1,16,89,43,506 1,10,71,33,349 1,16,89,43,506
Rural Deposit Scheme 3,79,16,465 5,12,66,854 3,79,16,465 5,12,66,854
Monthly Earning Scheme 41,01,752 6,13,36,466 41,01,752 6,13,36,466
School Banking Scheme 3,89,48,155 2,98,33,640 3,89,48,155 2,98,33,640
Double Benefit Scheme 1,18,00,26,376 1,94,80,96,941 1,18,00,26,376 1,94,80,96,941
Daily Profit Scheme 2,92,44,534 1,57,26,001 2,92,44,534 1,57,26,001
Triple Benefit Scheme 30,11,53,332 27,16,27,393 30,11,53,332 27,16,27,393
Shadheen Sanchay Scheme 1,97,50,707 98,09,861 1,97,50,707 98,09,861
Millionaire Deposit Scheme 2,74,45,15,067 2,28,22,20,238 2,74,45,15,067 2,28,22,20,238
Retirement Saving Scheme 20,55,446 24,21,105 20,55,446 24,21,105
SB Retirement Saving Scheme 14,73,60,140 16,76,24,782 14,73,60,140 16,76,24,782
Non Resident Deposit Scheme 5,02,075 2,10,217 5,02,075 2,10,217
Marriage Saving Scheme 21,06,80,780 23,99,11,596 21,06,80,780 23,99,11,596
Marriage Saving Scheme 42,74,98,63,923 40,58,26,58,785 42,74,98,63,923 40,58,26,58,785
40,582,658,785 39,625,916,764 40,582,658,785 39,625,916,764
22.02 Interest paid on Borrowings

On Bangladesh Bank Demand Loan 2,17,16,735 4,36,01,296 2,17,16,735 4,36,01,296
On Special F.C Repayable to Bangladesh Bank 51,10,17,045 84,36,19,376 51,10,17,045 84,36,19,376
On Long Term & Short Term Loan of SIL 5,26,89,972 94,12,835 - -
On Repo 38,07,623 13,57,51,004 38,07,623 13,57,51,004
58,92,31,375 1,03,23,84,511 53,65,41,403 1,02,29,71,676
304
Amount in Taka
2021 2020 2021 2020
22.03 Interest paid on Foreign Banks Account

Foreign Banks Account - - - -
- - - -
22.04 Interest paid on others

On Money at Call and Short Notice - 3,47,222 - 3,47,222
On Subsidiary Company Provident Fund 8,35,877 6,53,453 - -
Interest Expenses on Lease Liability
4,31,35,374 4,25,66,659 4,31,35,374 4,25,66,659
against IFRS-16
Other Interest 3,60,74,832 4,07,30,611 3,60,74,832 4,07,30,611
84,297,944 8,42,97,944 7,92,10,206 8,36,44,491
23.00 Investments Income

On Treasury Bill 1,64,52,04,707 3,81,07,23,253 1,64,52,04,707 3,81,07,23,253
On Bangladesh Bank Bills 5,32,38,000 - 5,32,38,000 -
On Special Treasury Bond 17,70,96,49,711 30,84,64,67,384 17,70,96,49,711 30,84,64,67,384
On Reverse Repo 42,68,759 1,38,79,843 42,68,759 1,38,79,843
On Gain/(Loss) of disposal of securities 18,11,37,47,747 5,03,76,95,272 18,11,37,47,747 5,03,76,95,272
On Dividend & Others 40,70,77,420 28,45,46,966 37,36,47,981 27,12,74,400
On Bangladesh GovernmentInvestment
4,56,11,947 - 4,56,11,947 -
Sukuk (Ijarah Sukuk)
On Debenture (Private) 3,72,343 - 3,72,343 -
On Gain on Trading of Share/Stock 99,47,32,457 4,82,48,445 72,64,59,711 -
On Islamic Banking Window 43,63,247 - 43,63,247 -
9,93,03,474 - - -
39,09,37,36,978 40,05,79,50,158 38,69,27,31,319 39,99,64,29,147
24.00 Commission, Exchange and Brokerage

Commission 24.01 12,47,95,11,095 11,71,67,60,626 12,16,15,20,107 11,50,17,17,458
Exchange 24.02 74,77,70,374 67,88,68,104 74,77,70,374 67,88,68,104
Commission & Exchange from Islamic
1,27,907 2,84,088 1,27,907 2,84,088
Banking Window
Commission & Exchange from
14,21,56,597 9,26,21,832 14,21,56,597 9,26,21,832
Overseas Branches
Commission & Exchange
1,97,78,674 - - -
from Sonali Bank (UK) Ltd.
13,38,93,44,647 12,48,85,34,651 13,05,15,74,985 12,27,34,91,482
24.01 Commission
Commission A/C Cr. Balance
On Foreign Bills Purchased/Negotiated 2,02,93,910 1,81,16,388 2,02,93,910 1,81,16,388
On Inland DD, MT,TT Issued/Cancelled 4,87,67,673 8,99,70,288 4,87,67,673 8,99,70,288
On Inland DD Purchased 2,26,594 7,68,955 2,26,594 7,68,955
On Govt. Receives & Disbursement 6,48,06,07,574 6,27,63,25,119 6,48,06,07,574 6,27,63,25,119
On Inland L/C Opened 7,53,14,862 2,62,82,627 7,53,14,862 2,62,82,627
On Purchased & Sale of Shares/Securities 3,372 13,25,80,502 3,372 13,25,80,502
On Inland Bills & Cheque Collection 3,49,65,788 4,26,66,992 3,49,65,788 4,26,66,992
On Inland Bank Guarantee Issued 1,07,99,906 1,74,15,731 1,07,99,906 1,74,15,731
On Payment Order 29,42,03,546 22,92,78,983 29,42,03,546 22,92,78,983
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
On Sanchaypatra Sales 1,23,00,86,096 1,00,57,60,385 1,23,00,86,096 1,00,57,60,385

On Lockers Fees, Profitable
5,35,10,904 3,72,96,018 2,31,61,275 1,97,83,717
Management fees & Other fees
On Payment of Food Procurement Bills 24,34,47,618 24,57,03,370 24,34,47,618 24,57,03,370
On Army Pension 2,78,54,064 4,84,20,477 2,78,54,064 4,84,20,477
On Civil Pension 13,38,194 11,55,97,001 13,38,194 11,55,97,001
On Foreign DD,MT,TT Issued Cancelled 27,52,644 22,90,446 27,52,644 22,90,446
On Foreign DD,MT,TT Purchased/
4,470 3,985 4,470 3,985
TT.Collection
On Foreign L/C Opened 1,52,73,95,722 1,02,05,44,561 1,52,73,95,722 1,02,05,44,561
On Foreign Bills and Cheques Collection 1,08,32,257 80,85,877 1,08,32,257 80,85,877
On ForeignBank Guarantee Issued 4,03,62,557 7,73,09,011 4,03,62,557 7,73,09,011
On Wage Earners Development Bond 1,19,96,205 2,15,88,763 1,19,96,205 2,15,88,763
On NID Varification Fees A/C 30,71,951 17,62,522 30,71,951 17,62,522
On Cards 15,78,32,374 10,43,11,339 15,78,32,374 10,43,11,339
On E-Commerce Account 2,72,90,666 50,05,901 2,72,90,666 50,05,901
On Maintenance fees for
52,27,76,810 82,69,47,146 52,27,76,810 82,69,47,146
Different Deposit A/C
On Travel Tax 11,448 15,740 11,448 15,740
On Online Transactions 41,44,60,703 43,12,27,789 41,44,60,703 43,12,27,789
On Subsidiary Company SECI 28,76,41,359 19,75,30,868 - -
On SMS Service 50,26,39,390 - 50,26,39,390 -
On e-Wallet Account 3,53,788 - 3,53,788 -
On Mobile Financial Services Link Account 20,05,911 - 20,05,911 -
On Others 44,66,62,739 73,39,53,843 44,66,62,739 73,39,53,843
Sub-total 12,47,95,11,095 11,71,67,60,626 12,16,15,20,107 11,50,17,17,458
Less: Commission A/C Dr. Balance
On Debt Recovery Agent - - - -
Sub-total - - - -
12,47,95,11,095 11,71,67,60,626 12,16,15,20,107 11,50,17,17,458
24.02 Exchange
Exchange gain
Gain on F. Currency Transaction 31,43,31,802 43,19,18,531 31,43,31,802 43,19,18,531
Gain on F. Currency Revaluation 5,99,82,85,230 9,03,40,34,246 5,99,82,85,230 9,03,40,34,246
Gain On Foreign Bill Purchase/
82,74,871 80,26,183 82,74,871 80,26,183
Negotiated
Gain on Others 32,60,70,314 28,15,95,864 32,60,70,314 28,15,95,864
Sub-total 6,64,69,62,217 9,75,55,74,824 6,64,69,62,217 9,75,55,74,824
Less: Exchange Loss
Foreign Currency Transaction 3,28,10,546 21,50,22,533 3,28,10,546 21,50,22,533
Foreign Currency Revaluation 5,53,22,39,262 8,57,93,31,364 5,53,22,39,262 8,57,93,31,364
Loss on Others 33,41,42,035 28,23,52,823 33,41,42,035 28,23,52,823
Sub-total 5,89,91,91,843 9,07,67,06,720 5,89,91,91,843 9,07,67,06,720
74,77,70,374 67,88,68,104 74,77,70,374 67,88,68,104
306
Amount in Taka
2021 2020 2021 2020
25.00 Other Operating Income

On Rent Received 1,81,96,788 - 1,81,96,788 -
On Gain on Disposal of Fixed Assets 29,80,146 - 29,80,146 -
On Profit of Sonali Intelect Ltd. 1,05,22,180 48,46,079 1,05,22,180 48,46,079
On Islamic windows 89,201 1,02,110 89,201 1,02,110
On Sonali Investment Limited 2,45,580 4,97,450 - -
On Sonali Exchange Co., Inc. 1,34,25,248 7,187 - -
On Sonali Bank (UK) Ltd. 4,22,85,077 - - -
On Return from Provision for Bonus 20,00,00,000 45,00,00,000 20,00,00,000 45,00,00,000
On Sundries 20,47,86,882 9,53,99,222 20,47,86,882 9,53,99,222
49,25,31,100 55,08,52,048 43,65,75,195 55,03,47,411
26.00 Salary & Allowances*

Salaries (Basic Pay, House Rent &
10,33,43,55,209 10,61,92,96,825 10,33,43,55,209 10,61,92,96,825
Other Allowance)
Contribution to Pension & Gratuity Fund 2,30,04,92,115 1,46,58,69,453 2,30,04,92,115 1,46,58,69,453
Bank's contribution to provident fund 1,24,72,408 17,92,08,072 1,24,72,408 17,92,08,072
Medical Allowance 74,89,92,840 72,42,74,869 74,89,92,840 72,42,74,869
Festival Bonus 1,12,62,59,556 1,13,49,24,943 1,12,62,59,556 1,13,49,24,943
Recreation Expense 14,20,64,402 13,93,17,209 14,20,64,402 13,93,17,209
Bangla Nabobarsho Allowance 10,99,87,537 11,14,62,099 10,99,87,537 11,14,62,099
Sonali Investment Limited 2,31,60,671 1,83,87,478 - -
15,14,65,75,924 14,50,83,21,704 14,82,28,23,616 14,42,41,70,475
27.00 Rent, Tax, Insurance, Electricity, etc.

Rent 51,56,03,655 45,88,18,141 51,56,03,655 45,88,18,141
Taxes 2,83,60,598 3,64,62,171 2,83,60,598 3,64,62,171
Insurance 51,90,10,496 46,17,98,838 51,90,10,496 46,17,98,838
Power and Electricity 15,63,84,983 14,38,14,567 15,63,84,983 14,38,14,567
Sonali Investment Limited 95,71,981 57,49,918 - -
Overseas Branches 1,25,25,838 91,89,467 1,25,25,838 91,89,467
1,30,21,68,310 1,15,80,59,570 1,23,18,85,570 1,11,00,83,183
28.00 Legal expenses

Law Charges 1,75,59,973 3,36,45,914 1,75,59,973 3,36,45,914
Other Legal Expenses 12,02,433 4,17,496 12,02,433 4,17,496
Sonali Investment Limited 34,626 43,000 - -
Sonali Exchange Co. Inc 1,83,45,575 26,21,050 - -
Overseas Branches 1,54,898 41,132 1,54,898 41,132
14,91,39,354 3,67,68,592 1,89,17,304 3,41,04,542
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
29.00 Postage, Stamps, Telecommunication

Postage 91,82,712 62,42,158 91,82,712 62,42,158
Court Fees and Stamps 49,79,501 59,86,780 49,79,501 59,86,780
Telephone 2,66,83,572 2,53,32,269 2,66,83,572 2,53,32,269
Sonali Exchange Co. Inc 48,14,334 50,04,684 - -
Overseas Branches 67,77,810 35,89,158 67,77,810 35,89,158
5,48,31,589 4,62,61,924 4,76,23,595 4,11,50,365
30.00 Printing, Stationery, Advertisement, etc.

Stationery 10,47,40,305 11,92,54,294 10,47,40,305 11,92,54,294
Printing 2,16,18,934 1,39,41,157 2,16,18,934 1,39,41,157
Advertisement 4,03,82,104 2,51,04,748 4,03,82,104 2,51,04,748
17,64,41,844 16,49,67,821 16,76,83,896 15,91,06,918
31.00 Chief executive's salary and fees

Chief executive's salary and fees 48,00,000 48,00,000 48,00,000 48,00,000
Chief executive's salary and fees of SECI 53,23,170 63,58,075 - -
Chief executive's salary and fees of
42,54,180 30,06,871 42,54,180 30,06,871
Overseas Branches
1,43,77,350 1,41,64,947 90,54,180 78,06,871
*Basic Salary of Managing Director and CEO Tk. 3,25,000 and Allowances Tk. 75,000 per month.
32.00 Directors' Fees & Honorium*

Directors' fees & Honorarium 50,99,600 36,17,900 50,99,600 36,17,900
2,14,64,755 43,69,200 50,99,600 36,17,900
*Each Director is paid Tk. 8,000 per meeting per attendance as per Bangladesh Bank's BRPD Circular no.11
dated 04 October 2015.
33.00 Auditors' fees

Statutory Audit fee 34,75,000 34,50,000 34,75,000 34,50,000
Sonali Investment Limited 73,000 73,000 - -
4,22,07,854 65,52,495 46,16,980 42,81,195
308
Amount in Taka
2021 2020 2021 2020
34.00 Depreciation and Repairs at Bank's Assets

Depreciation:
A) Premises (Including Land & Building)
Premises 5,12,59,079 4,48,42,400 4,45,61,383 4,48,42,400
Building Construction - - - -
Sub-total 5,12,59,079 4,48,42,400 4,45,61,383 4,48,42,400
B) Dead stock
Furniture 6,87,85,783 6,96,38,703 6,83,07,839 6,93,74,642
Computer Hardware 18,41,07,755 19,57,59,498 18,33,39,290 19,54,28,415
Type Writer Machine 1,08,424 68,171 1,08,424 68,171
Library 5,78,745 5,95,902 5,78,745 5,95,902
Sub-total 42,71,20,229 41,38,03,679 42,32,65,897 41,25,25,963
C) Overseas Branches
India Operation 16,28,615 21,99,185 16,28,615 21,99,185
Sub-total 16,28,615 21,99,185 16,28,615 21,99,185
D) Amortization of Intangible Assets
Preliminary Expenses 1,79,41,057 - 1,79,41,057 -
Sub-total 16,71,00,111 11,82,49,609 16,39,44,798 11,82,29,609
E) Depreciation on Right of Use
Depreciation on Right of
13,77,95,555 13,95,44,848 13,77,95,555 13,95,44,848
Use against IFRS-16
Sub-total 13,77,95,555 13,95,44,848 13,77,95,555 13,95,44,848
Depreciation Adjustment of IFRS-16 1,26,70,623 - 1,26,70,623 -
Total (A+B+C+D+E) 77,22,32,966 71,86,39,721 75,85,25,625 71,73,42,005
Repairs:
Repairs to Bank's Assets 5,39,70,429 7,61,73,242 5,39,70,429 7,61,73,242
Sub-total 5,44,35,879 7,67,66,314 5,41,45,562 7,63,64,903
Grand Total 82,66,68,845 79,54,06,035 81,26,71,187 79,37,06,908
34A.00 Depreciation and Repairs at Bank's Assets

Depreciation:
Premises 4,45,61,383 1,11,07,740 4,45,61,383 1,11,07,740
Building Construction - - - -
Sub-total 4,45,61,383 1,11,07,740 4,45,61,383 1,11,07,740
B) Dead stock
Furniture 6,83,07,839 6,96,38,703 6,83,07,839 6,93,74,642
Computer Hardware 18,33,39,290 19,57,59,498 18,33,39,290 19,54,28,415
Type Writer Machine 1,08,424 68,171 1,08,424 68,171
Library 5,78,745 5,95,902 5,78,745 5,95,902
Sub-total 42,32,65,897 41,38,03,679 42,32,65,897 41,25,25,963
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
C) Overseas Branches
India Operation 16,28,615 21,99,185 16,28,615 21,99,185
Sub-total 16,28,615 21,99,185 16,28,615 21,99,185
D) Amortization of Intangible Assets
Preliminary Expenses 1,79,41,057 - 1,79,41,057 -
Sub-total 16,39,44,798 11,82,49,609 16,39,44,798 11,82,29,609
Total (A+B+C+D) 63,34,00,692 54,53,60,213 63,34,00,692 54,40,62,497
Repairs:
Repairs to Bank's Assets 5,39,70,428 7,61,73,242 5,39,70,428 7,61,73,242
Repairs to Bank's Assets of
1,75,133 1,91,661 1,75,133 1,91,661
Overseas Branches
Sub-total 5,44,35,878 7,67,66,314 5,41,45,561 7,63,64,903
Depreciation on Right of
13,77,95,555 13,95,44,848 13,77,95,555 13,95,44,848
Use against IFRS-16
Grand Total 82,56,32,126 76,16,71,375 54,97,50,698 75,99,72,248
35.00 Other expenses
Repairs to Rented Property 3,63,34,768 2,59,38,277 3,63,34,768 2,59,38,277

Books and News Paper 2,73,70,169 2,52,59,662 2,72,31,392 2,51,70,004
Pay of Police guards. 95,77,00,499 90,60,27,752 95,29,23,699 90,28,20,906
Motor Car Running 2,89,25,223 2,76,72,234 2,89,25,223 2,76,72,234
Motor Car Maintenance 3,02,82,631 2,86,53,329 2,04,39,265 2,15,31,936
Hired Transport 3,51,27,807 2,98,45,884 3,51,27,807 2,98,45,884
Entertainment 5,55,24,844 5,29,88,206 5,45,45,680 5,25,16,814
Conveyance 43,17,690 30,46,340 43,17,690 30,46,340
Sundries 57,28,82,879 54,10,58,857 54,59,83,392 51,10,12,831
Traveling Expenses 9,73,43,180 10,19,27,701 9,69,51,906 9,79,96,116
Lunch Subsidy 63,35,40,591 66,11,42,862 63,28,40,591 66,05,85,582
Donation 2,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000
Subscription 73,76,746 51,03,000 60,68,600 48,71,000
Liveries to Staff 73,81,417 82,65,860 73,81,417 82,65,860
Sports 80,00,000 69,99,275 80,00,000 69,99,275
VISA-IRF 2,94,602 92,137 2,94,602 92,137
Computer Hardware Repairs & Maintenance 5,04,67,822 3,30,21,662 5,04,67,822 3,30,21,662
Computer Software Repairs & Maintenance 31,09,96,870 38,48,75,370 26,12,30,441 38,42,57,588
Rent of Connectivity/CCTV/Internet Etc. 20,19,77,630 8,56,70,325 20,19,77,630 8,56,70,325
Training Expenses 4,02,72,178 2,71,08,828 3,97,36,902 2,71,08,828
Washing Allowance 12,15,177 13,48,362 12,15,177 13,48,362
Cash Transportation 7,63,13,281 6,96,61,295 6,51,92,220 6,53,87,250
Business Development 2,64,00,035 1,56,09,956 1,79,86,000 1,56,09,956
Death Relief Grant Scheme 1,36,25,000 3,42,25,000 1,36,25,000 3,42,25,000
Honorarium to staff 2,50,15,500 1,89,20,908 2,50,15,500 1,89,20,908
Generator Maintenance 6,09,64,949 5,75,17,932 6,09,64,949 5,75,17,932
NID Verification Charge 1,08,97,570 31,64,800 1,08,97,570 31,64,800
310
Amount in Taka
2021 2020 2021 2020
Loss on disposal of Securities 43,52,17,198 1,72,93,000 43,52,17,198 1,72,93,000

Loss on Disposal of Fixed Assets 45,356 40,10,680 45,356 40,10,680
Children Education Allowance 4,11,73,804 3,78,66,732 4,11,73,804 3,71,63,883
Operation & Maintenance Cost of
26,81,59,755 26,34,92,662 26,81,59,755 26,34,92,662
Executive Car Loan
Fees against Swift, Bankers Almanc etc. 98,43,550 99,46,399 98,43,550 99,46,399
Overtime 4,29,98,559 4,14,07,068 4,29,98,559 4,14,07,068
Incentive for COVID-19 27,18,04,795 1,25,63,22,658 27,18,04,795 1,25,63,22,658
Exemption of SHBL of Deceased Employees 5,50,19,465 - 5,50,19,465 -
Consultant fees & Bank Charge of SIL 5,29,248 4,42,597 - -
CDBL Charge of Sonali
21,42,285 4,19,048 - -
Investment Ltd.
VAT expense 14,37,705 8,69,895 - -
Other expenses of SB (UK) Ltd. 5,02,42,827 - - -
Other expenses of
1,42,12,474 1,40,76,329 1,42,12,474 1,40,76,329
Overseas Branches
4,53,33,76,080 4,82,12,92,878 4,36,41,50,197 4,76,83,10,483
36.00 Provision for Loans and Advances

Provision for Classified Loans &
6,42,23,74,810 4,81,80,78,643 6,41,84,47,607 4,81,80,78,643
Advances
Provision for Unclassified Loans and
(31,17,46,840) 7,10,12,50,494 (31,17,46,840) 7,10,12,50,494
Advances
Total 6,11,06,27,970 11,91,93,29,137 6,10,67,00,767 11,91,93,29,137
36a In response to Bank’s request #SBL/HO/CAD(Op)/Basel-III/Capital/385 dated 26 April 2022 to Bangladesh

Bank regarding maintenance of provisions for loans & advances for 2021, Bangladesh Bank vide its letter no-
DOS(CAMS)1157/01(II)-C/2022-2299 dated 28 April 2022 has given certain directives to the Bank to maintain
required provision against all unclassified and classified loans & advances as on 31 December 2021. As per said
directives, the Bank has calculated the required provision against unclassified and classified loans & advances
for which Bank maintained provision amounting taka 7,567.77 crore by relishing deferral of taka 2,546.61 crore
accordingly.
37.00 Provision for diminution in value of investment

Dealing securities
Quoted - - - -
Unquoted - - - -
Investment securities
Quoted (59,86,74,441) (91,70,54,707) (59,86,74,441) (91,70,54,707)
Unquoted (3,41,86,020) 3,28,37,900 (3,41,86,020) 3,28,37,900
(63,28,60,461) (88,42,16,807) (63,28,60,461) (88,42,16,807)
38.00 Other provisions

Provision for Other Assets 4,05,34,21,672 2,46,49,08,738 4,05,34,21,672 2,46,49,08,738
Provision for Off Balance Sheet
34,81,60,860 15,02,79,135 34,81,60,860 15,02,79,135
Exposure
Provision for Bonus/Ex-gratia 2,50,00,00,000 2,50,00,00,000 2,50,00,00,000 2,50,00,00,000
Provision for Others which no more
(1,08,99,87,048) - (1,08,99,87,048) -
required
Provision for NOSTRO A/C
(96,62,500) - (96,62,500) -
which no more required
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Provision for Rebate A/C

of NBFIs which no more (3,50,452) - (3,50,452) -
required
Provision for Unreconciled Entries of
2,685 - 2,685 -
NOSTRO A/C
Provision for Investment of Orion
30,36,00,000 - 30,36,00,000 -
Infrastructure Ltd.
Provision for Other Banks and NBFIs 48,42,54,058 - 48,42,54,058 -
Provision for Branch Adjustment of
2,15,00,00,000 - 2,15,00,00,000 -
Provision for Jute Sector
30,00,00,000 - 30,00,00,000 -
Reform Project
Provision for Sanchaypatra
1,00,00,00,000 - 1,00,00,00,000 -
Encashment Account
Provision for Start-Up Fund - 3,27,00,000 - 3,27,00,000
Provision for Salary - 17,82,000 - 17,82,000
Provision for Incentive Bonus of Sonali
50,00,000 35,00,000 - -
Investment Ltd.
10,04,44,39,275 5,15,31,69,873 10,03,94,39,275 5,14,96,69,873
38a In response to Bank request dated 26 April 2022, Bangladesh Bank allowed deferral through vide no-
DOS(CAMS)1157/01(II)-C/2022-2299 dated 28 April 2022 to maintain required provision against Other Assets,
Balance with Bangladesh Bank & Balance with Other Banks and NBFIs for the year ended 31 December 2021.
Accordingly the Bank has maintained provision amounting taka 1,950.41 crore by relishing deferral of taka
1,635.04 crore.
38b As per BRPD circular no. 14, date 23 Sep 2012, 1% provision should be maintained against off- balance sheet items
except the criteria mention in the BRPD circular no 01, date 03 January 2018. In response to Bank appeal dated
27 November 2017, Bangladesh Bank allowed forbearance through vide no- BRPD (p-1)/661/13)/2017-7860 dated
27 November 2017 to maintain required provision against L/C of Ruppur Nuclear Power plant. Bank has complied
that accordingly.
39.00 Cash Received from Other Operating Activities

Other Operating Income 49,25,31,100 55,08,52,048 43,65,75,195 55,03,47,411
49,25,31,100 55,08,52,048 43,65,75,195 55,03,47,411
40.00
Cash paid for Other Operating Activities
Rent (51,56,03,655) (45,88,18,141) (51,56,03,655) (45,88,18,141)

Taxes (2,83,60,598) (3,64,62,171) (2,83,60,598) (3,64,62,171)
Insurance (51,90,10,496) (46,17,98,838) (51,90,10,496) (46,17,98,838)
Power & electricity (15,63,84,983) (14,38,14,567) (15,63,84,983) (14,38,14,567)
Rent, Taxes, Insurance of Overseas Branches (1,25,25,838) (91,89,467) (1,25,25,838) (91,89,467)
Law Charges (14,91,39,354) (3,67,68,592) (1,89,17,304) (3,41,04,542)
Postage (91,82,712) (62,42,158) (91,82,712) (62,42,158)
Court Fees and Stamps (49,79,501) (59,86,780) (49,79,501) (59,86,780)
Telephone (2,66,83,572) (2,53,32,269) (2,66,83,572) (2,53,32,269)
Postage, Stamp, Telephone
(67,77,810) (35,89,158) (67,77,810) (35,89,158)
of Overseas Branches
Statutory Auditors' Fees (4,22,07,854) (65,52,495) (46,16,980) (42,81,195)
Fees Paid for Attending Board Meeting (2,14,64,755) (43,69,200) (50,99,600) (36,17,900)
312
Amount in Taka
2021 2020 2021 2020
Repairs to Bank's Property (5,39,70,429) (7,61,73,242) (5,39,70,429) (7,61,73,242)

Repairs to Bank's Property of Overseas Branches (1,75,133) (1,91,661) (1,75,133) (1,91,661)
Repairs to Rented property (3,63,34,768) (2,59,38,277) (3,63,34,768) (2,59,38,277)
Pay of Police Guards (95,77,00,499) (90,60,27,752) (95,29,23,699) (90,28,20,906)
Motor Car Running and Maintenance (5,92,07,855) (5,63,25,563) (4,93,64,488) (4,92,04,170)
Operation & Maintenance Cost of
(26,81,59,755) (26,34,92,662) (26,81,59,755) (26,34,92,662)
Executive Car Loan
Entertainment (5,55,24,844) (5,29,88,206) (5,45,45,680) (5,25,16,814)
Sundries (53,83,16,198) (54,10,58,857) (54,59,83,392) (51,10,12,831)
Traveling Expenses (9,73,43,180) (10,19,27,701) (9,69,51,906) (9,79,96,116)
Overtime (4,29,98,559) (4,14,07,068) (4,29,98,559) (4,14,07,068)
Donation (2,00,00,000) (2,00,00,000) (2,00,00,000) (2,00,00,000)
Subscription (73,76,746) (51,03,000) (60,68,600) (48,71,000)
Lunch Subsidy (63,35,40,591) (66,11,42,862) (63,28,40,591) (66,05,85,582)
Liveries to Staff (73,81,417) (82,65,860) (73,81,417) (82,65,860)
Sports (80,00,000) (69,99,275) (80,00,000) (69,99,275)
VISA-IRF (2,94,602) (92,137) (2,94,602) (92,137)
Computer Hardware
(5,04,67,822) (3,30,21,662) (5,04,67,822) (3,30,21,662)
Repairs & Maintenance
Computer Software Repairs & Maintenance (31,09,96,870) (38,48,75,370) (26,12,30,441) (38,42,57,588)
Rent of Connectivity/CCTV (20,19,77,630) (8,56,70,325) (20,19,77,630) (8,56,70,325)
Training Expenses (4,02,72,178) (2,71,08,828) (3,97,36,902) (2,71,08,828)
NID Verification Charge (1,08,97,570) (31,64,800) (1,08,97,570) (31,64,800)
Loss o Disposal of Securities (43,52,17,198) (1,72,93,000) (43,52,17,198) (1,72,93,000)
Loss o Disposal of Fixed Assets (45,356) (40,10,680) (45,356) (40,10,680)
Washing Allowance (12,15,177) (13,48,362) (12,15,177) (13,48,362)
Cash Transportation (7,63,13,281) (6,96,61,295) (6,51,92,220) (6,53,87,250)
Business Development (2,64,00,035) (1,56,09,956) (1,79,86,000) (1,56,09,955)
Conveyance (43,17,690) (30,46,340) (43,17,690) (30,46,340)
Death Relief Grant Scheme (1,36,25,000) (3,42,25,000) (1,36,25,000) (3,42,25,000)
Reserve for CSR Expenditure (5,00,00,000) (5,00,00,000) (5,00,00,000) (5,00,00,000)
Transfar to Share Money & Vault (10,66,42,333) (1,50,00,000) - (1,50,00,000)
Fees against Swift, Bankers Almanic etc. (98,43,550) (99,46,399) (98,43,550) (99,46,399)
Generator Maintenance (6,09,64,949) (5,75,17,932) (6,09,64,949) (5,75,17,932)
Incentive for COVID-19 (27,18,04,795) (1,25,63,22,658) (27,18,04,794) (1,25,63,22,658)
Other Expenses of
(1,42,12,474) (1,40,76,329) (1,42,12,474) (1,40,76,329)
Overseas Branches
Exemption of SHBL of Deceased Employees (5,50,19,465) - (5,50,19,465) -
Start-Up Fund (3,45,66,681) - (3,45,66,681)
Hired Transport (3,51,27,807) - (3,51,27,807) -
Rent, Taxes, Insurance of SIL (95,71,981) (57,49,918) -
Rent, Taxes, Insurance of SECI (4,60,75,585) (4,22,26,468) - -
Postage, Stamp, Telephone of SIL (1,72,310) (1,06,875) - -
Postage, Stamp, Telephone of SECI (48,14,334) (50,04,684) - -
Repairs to Bank's Property of SIL (2,90,317) (4,01,411) - -
VAT expense (14,37,705) (8,69,895) -
Currency Conversion differences (6,53,056) (56,453) - -
Consultant Fees & Bank Charge of SIL (5,29,248) (4,42,597) -
CDBL Charge of Sonali Investment Ltd. (21,42,286) (4,19,048) -
(6,15,42,60,388) (6,10,32,34,240) (5,71,75,84,792) (5,99,18,11,892)
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
41.00 Increase / (Decrease) of Other Assets

Investment in SECI - - (9,48,955) 93,955
Investment in SB-UK Limited (3,51,96,026) (9,92,97,140) (3,51,96,026) (9,92,97,140)
Security Deposit with Central Bank of India (74,281) - (74,281) -
Stamps in Hand 93,528 (1,74,197) 93,528 (1,74,197)
Stationery in Hand (1,41,57,886) (83,91,737) (1,41,57,886) (83,91,737)
Advance Rent 2,07,97,828 (3,48,59,155) 2,07,97,828 (3,48,59,155)
Branch Adjustment 13,82,14,94,971 (10,92,39,37,056) 13,82,14,94,971 (10,92,39,37,056)
Suspense Account (1,37,71,542) 5,04,44,21,228 (1,37,71,542) 5,04,44,21,228
Prepaid Expenses 24,91,282 (5,25,127) 24,91,282 (5,25,127)
Employee pension fund investment 95,07,74,276 (6,79,60,105) 95,07,74,276 (6,79,60,105)
Employee PDCRB fund investment 3,67,62,59,894 3,50,00,00,000 3,67,62,59,894 3,50,00,00,000
SBL Employees Benevolent fund Investment (15,95,25,776) - (15,95,25,776) -
Demand Draft Paid in Ex-Advice 49,75,427 96,46,889 49,75,427 96,46,889
Govt. Demand Draft Paid in Ex-Advice 1,50,988 20,582 1,50,988 20,582
Protested Bills 45,26,250 (8,53,600) 45,26,250 (8,53,600)
Adjusting Account Debit Balance (8,52,02,604) 87,55,855 (8,52,02,604) 87,55,855
Wage Earners' Bond Encashment A/C (1,37,69,57,621) 17,59,53,394 (1,37,69,57,621) 17,59,53,394
Settlement Account (Islamic) 4,12,33,924 (8,01,39,344) 4,12,33,924 (8,01,39,344)
Demand Drafts purchased 24,08,45,473 38,57,43,432 24,08,45,473 38,57,43,432
Pension Bill Purchased(Army) 21,57,62,826 9,65,94,833 21,57,62,826 9,65,94,833
Pension Bill Purchased(Civil) 13,25,58,794 1,03,77,39,800 13,25,58,794 1,03,77,39,800
Sanchaypatra Encashment Account 1,06,69,62,783 (2,09,36,51,815) 1,06,69,62,783 (2,09,36,51,815)
Preliminary Expenses - HR Recruitment A/C 28,07,910 36,67,193 28,07,910 36,67,193
ATM Settlement Account Debit Balance 27,21,54,977 (32,15,90,128) 27,21,54,977 (32,15,90,128)
SECI Settlement Account Debit Balance 14,07,37,773 (15,59,79,072) 14,07,37,773 (15,59,79,072)
Clearing Settlement Account Debit Balance (15,73,37,243) (1,34,30,813) (15,73,37,243) (1,34,30,813)
Govt. Transaction Settlement Account
(2,44,42,40,300) 35,53,75,508 (2,44,42,40,300) 35,53,75,508
Debit Balance
Army Pension Bill Purchased A/C New 2,00,43,49,367 (1,37,99,85,863) 2,00,43,49,367 (1,37,99,85,863)
Receivable - Exchange Rate Fluctuation
(30,11,915) (41) (30,11,915) (41)
of Biman Loan
(12,48,672) (3,301) (12,48,672) (3,301)
Settlement Account Debit Balance
Non-Interest Bearing Blocked Account
3,47,02,07,148 (3,47,13,49,961) 3,47,02,07,148 (3,47,13,49,961)
for COVID-19
Receivable from Govt. Under Savings
(52,58,62,368) (3,54,21,99,340) (52,58,62,368) (3,54,21,99,340)
Cert. Issued to Workers of BJMC
Current Assets of Overseas Branches (3,24,16,532) (16,29,22,575) (3,24,16,532) (16,29,22,575)
Current Assets of Islamic Banking Window 3,93,68,678 (11,81,13,687) 3,93,68,678 (11,81,13,687)
Placement With Solicitation Account (2,89,60,700) - (2,89,60,700) -
NRT A/C Dr. Balance - 1,16,41,283 - 1,16,41,283
Current Assets of SECI (1,96,35,355) 89,79,670 - -
Current Assets of SB (UK) Ltd. 3,30,52,13,715 - -
Other receivable (3,61,97,670) (10,56,11,320) - -
Security Deposits 1,24,163 (16,78,431) - -
24,48,00,95,484 (11,94,41,14,142) 21,22,96,41,676 (11,84,57,10,106)
314
Amount in Taka
2021 2020 2021 2020
42.00 Increase / (Decrease) of Other Liabilities

Closing other liabilities:
Provision for Classified Loans (57,10,32,367) (12,75,04,987) (57,10,32,367) (12,75,04,987)
Interest Suspense 5,30,00,93,426 6,42,59,15,340 5,29,78,28,781 6,42,49,88,111
Sonali Bank Employees' Pension fund (1,16,11,38,804) (3,83,90,119) (1,16,11,38,804) (3,83,90,119)
Sonali Bank Employees' PDCRB fund (3,31,41,84,962) (3,74,99,53,112) (3,31,41,84,962) (3,74,99,53,112)
16,33,87,117 - 16,33,87,117 -
benefit (Benevolent Fund)
Sundry Deposits (H.O) 1,08,60,94,368 1,09,66,77,997 1,08,60,94,368 1,09,66,77,997
Provision for Bonus (2,51,08,77,958) (2,11,70,48,360) (2,51,08,77,958) (2,11,85,17,428)
Refinance fund for Milk Product and
(7,51,55,000) (8,46,47,500) (7,51,55,000) (8,46,47,500)
Artificial Inse. Scheme-RCD
Sirajganj Integrated Rural Development Fund 6,16,123 6,16,123 6,16,123 6,16,123
Foreign Correspondent Charges 1,11,824 (11,90,089) 1,11,824 (11,90,089)
Interest Bearing FC Repayable to
1,43,29,10,188 (3,78,16,58,795) 1,43,29,10,188 (3,78,16,58,795)
Bangladesh Bank
Provision for Salary 4,11,739 (17,31,537) 4,11,739 (17,31,537)
Income Receivable in Advance 35,369 (22,415) 35,369 (22,415)
BB Refinance Scheme for SML of Tk. 10 (7,44,750) 7,44,750 (7,44,750) 7,44,750
Employes Tax Deducted at Source from Salary 30,908 (23,73,737) 30,908 (23,73,737)
E-Challan Settlement A/C Credit Balance 26,36,98,001 25,34,998 26,36,98,001 25,34,998
ATM Settlement Account Credit Balance (5,02,55,367) 1,19,89,231 (5,02,55,367) 1,19,89,231
Clearing Settlement Account Credit Balance 30,35,456 2,34,41,541 30,35,456 2,34,41,541
Govt. Transaction Settlement Account Credit Balance 10,29,46,30,551 (17,64,30,80,092) 10,29,46,30,551 (17,64,30,80,091)
Sanchaypatra Sales Account (2,22,21,80,212) (11,47,28,379) (2,22,21,80,212) (11,47,28,379)
MCD Loan Settlement A/C Credit Balance (1,000) 13,062 (1,000) 13,062
Imprest A/C-Received from B.B against
7,97,63,705 (44,03,39,640) 7,97,63,705 (44,03,39,640)
W.E.R Account
FET Settlement Account Credit Balance 3,41,82,26,437 1,77,38,54,920 3,41,82,26,437 1,77,38,54,920
Asian Clearing Union (VOSTRO) (1,39,438) (1,41,68,831) (1,39,438) (1,41,68,831)
Travel Tax Online Transaction (LO) Account 27,05,750 1,16,000 27,05,750 1,16,000
Travel Tax Central Recovery Account 5,49,750 1,40,250 5,49,750 1,40,250
E-Passport Central Recovery Account 1,81,200 3,47,300 1,81,200 3,47,300
29,83,319 4,477 29,83,319 4,477
Settlement A/C Credit Balance
Repayable to B.B against Stimulus Fund
(5,43,93,947) 20,98,05,286 (5,43,93,947) 20,98,05,286
Received for Worker's COVID-19
Interest Suspense Account for COVID-19 (88,80,00,059) 88,82,16,631 (88,80,00,059) 88,82,16,631
Repayable to B.B for Fund Received
1,84,14,04,400 22,29,47,000 1,84,14,04,400 22,29,47,000
UnderAgri. Loan against COVID-19
Other Liabilities of Overseas Branches 5,17,88,496 1,15,67,09,227 5,17,88,496 1,15,67,09,227
Other Liabilities of Islamic Banking Window (4,91,08,961) 73,91,91,822 (4,91,08,961) 73,91,91,822
Lease Liability against IFRS-16 95,37,957 40,49,32,399 95,37,957 40,49,32,399
Annual Report 2021

Amount in Taka
2021 2020 2021 2020
Loan from IDA Credit No. 765 BD. - 1,60,54,120 - 1,60,54,120

Repayable to B.B for Fund Received Under
11,70,00,001 - 11,70,00,001 -
Revolving Refinance Scheme for COVID-19
Repayable to Borrower the Interest Subsidy
9,45,62,650 - 9,45,62,650 -
Fund Received from BB againstCOVID-19
Interest Bearing F.C (Payra Port
2,59,41,99,333 - 2,59,41,99,333 -
Authority)Repayable to B.B
BB Refinance Scheme (200 Crore) for
2,99,90,000 - 2,99,90,000 -
Jute Sector
Bank POS settlement
1,01,300 - 1,01,300 -
SPG Settlement Account Credit Balance 1,27,97,334 - 1,27,97,334 -
Start-Up Fund 3,45,66,681 - 3,45,66,681 -
Expenses Payable for SIL
3,21,187 1,97,82,136 - -
Client Sale & Others
(10,15,34,540) 9,81,72,640 - -
Company SIL
(17,45,28,125) 6,18,25,803 - -
Company SECI
10,29,80,731 - - -
Company SB(UK) Ltd.
Security Deposit of SECI (7,183) (137) - -
Portfolio Margin Deposit Control 1,09,69,403 2,08,04,175 - -
Remittance Payable to Beneficiary (82,69,586) 1,84,10,715 - -
15,76,81,32,447 (14,92,35,89,791) 15,93,59,35,916 (15,14,49,81,417)
43.00 Cash and cash equivalents

Cash in hand (Including foreign currency) 7,85,65,37,591 7,42,89,96,911 7,72,58,20,573 7,30,08,75,335
Balance with Bangladesh Bank 69,80,11,30,063 83,80,12,97,347 69,80,11,30,063 83,80,12,97,347
Money at call on short notice 9,26,70,59,326 9,03,13,00,000 8,66,30,00,000 9,03,13,00,000
Balance held with other bank 38,60,94,02,078 52,57,43,09,500 38,05,52,00,913 52,30,88,08,619
Prize bonds in hand 8,60,56,900 7,62,98,700 8,60,56,900 7,62,98,700
1,25,62,01,85,959 1,52,91,22,02,458 1,24,33,12,08,450 1,52,51,85,80,002
44.00 Earnings per Share (EPS)

Net profit after tax 3,80,59,55,276 3,32,08,34,677 3,45,66,68,149 3,23,43,49,442
Number of ordinary shares
44.01 45,30,00,000 45,30,00,000 45,30,00,000 45,30,00,000
outstanding
Earnings per share (EPS) 8.40 7.33 7.63 7.14
44.01 Weighted average number of ordinary shares outstanding
453,000,000 ordinary shares

45,30,00,000 45,30,00,000 45,30,00,000 45,30,00,000
outstanding for 365 days (2020)
45,30,00,000 45,30,00,000 45,30,00,000 45,30,00,000
316
45.00 Audit Committee

Audit Committee of Sonali Bank Limited has been constituted by the Board of Directors as per BRPD Circular No.
12 dated 23 December 2002 comprising the following members:
Sl. Status in the Status with

Name Educational qualification
No. Bank the committee
B.Com (Honours) ,M.com
(Accounting), FCA, FCS
2 Mr. Ishtiaque Ahmed Chowdhury Director Member M.A (Political science), L.L.B
"Ph.D (Economics),
3 Dr. Doulatunnaher Khanam Director Member
M.S.C(Economics)"
"Ph.D(The Flinders
University of South Australia)"
Duties and Responsibilities of the Audit Committee:
i) To Evaluate internal control and compliance, risk management, computerization and system of MIS of the
bank.
ii) To review annual financial statements of the bank and exchange views with external auditors and Bank
management in the regard.
iii) To consider if the recommendations made by internal & External Auditors are in order to develop internal
control strategy by the Bank Management.
iv) To review as to whether the rules and regulation made by controlling authorities like Bangladesh Bank and
other regulatory bodies are duly followed.
v) To appraise the Bank’s Board of Directors regarding Lapses and errors/ Frauds & Forgeries/ other
irregularities detected by internal auditors, external auditors & Bangladesh Bank inspection team and
corrective measures taken for the purpose of effective control.
During the year 2021 the Audit Committee has conducted 11 (eleven) meetings in which, among others, the
following issues were discussed:
i) Comprehensive inspection reports of Bangladesh Bank including status of Compliance thereof.
ii) Inspection reports of branches/Head Office conducted by Bank’s internal inspection team.
iii) Financial Statements of the Bank.
iv) Half yearly accounts of 2021 of the Bank.
v) Status of compliance of different rules and regulations.
Annual Financial Statements have been Discussed with the External Auditors in the Audit Committee Meeting held
on 28 April 2022.
46.00 Related Party Disclosures

Name of the Board of Directors and the entities in which they had interest as at 31 December 2021
Name of the firms/Companies in

Status
SL. which interested as proprietor, No. of
Name with the Position
No partner, director, managing Shares
Bank
agent, guarantor, employee etc.
1 Mr. Ziaul Hasan Siddiqui Chairman Nil Nil Nil
Director
2 Mr. Md. Fazlul Haque (Retired on Nil Nil Nil
03.06.2021)
Director Mashnoons Limited Chairman 50%
3 Mr. A K M. Kamrul Islam FCA, FCS "Islam Aftab Karmrul & Co.
Partner _
Chartered Accountants"
4 Mr. Ishtiaque Ahmed Chowdhury Director Nil Nil Nil
5 Dr. Doulatunnaher Khanam Director Nil Nil Nil
6 Mr. Md. Mofazzal Husain Director Nil Nil Nil
7 Mr. Molla Abdul Wadud Director Nil Nil Nil
8 Prof. Dr. Mohammad Kaykobad Director Nil Nil Nil
Director
9 Mr. A.B.M Ruhul Azad (Joined on Nil Nil Nil
15.06.2021)
CEO &
10 Mr. Md. Ataur Rahman Prodhan Managing Nil Nil Nil
Director
Annual Report 2021

47.00 Related party/(ies) transaction

The bank generally carried out transactions in the ordinary course of its business at arm’s length at commercial
rate as per agreements with different related parties. The bank also renders services to the Government in various
forms, which are not quantified. However, as of the date of the financial statements the Bank had no transactions
with the Director of the Bank as a related party. During the year, the bank had some quantified transactions with
the Government (Sponsor/Share holder) as defined on BRPD Circular no14 issued by the Bangladesh Bank on 25
March 2003 are listed below:
Transaction
Status with the Related Outstanding
Name of the Related Party Related by Remarks
Party Balance
(Crore)
Sponsor/Share Concerned Department
Government (Note-9.8.) 327.05 Pension bills(Army)
holder of the Government
Sponsor/Share Concerned Department Pension bills Army
Government (Note: 9.8) 1,008.57
holder of the Government (New)
Government (Note: 9.8) 11.22 Pension bills(Civil)
Jatio Shanchaya Bureau Sponsor/Share Concerned Department PSB/BSP
904.33
(Note-9.8) holder of the Government Encashment
Bangladesh Power Sponsor/Share Concerned Department
5,634.51 Non Funded Loan
Development Board (BPDB) holder of the Government
Bangladesh Petroleum Sponsor/Share Concerned Department
739.08 Non Funded Loan
Corporation (BPC) holder of the Government
Bangladesh Agricultural Sponsor/Share Concerned Department Funded & Non
6,602.97
Development Corp.(BADC) holder of the Government Funded Loan
Bangladesh Sugar & Food Sponsor/Share Concerned Department Funded & Non
4,726.86
Ind. Corp(BSFIC) holder of the Government Funded Loan
Bangladesh Steel & Engg. Sponsor/Share Concerned Department Funded & Non
29.75
Corp. (BSEC) holder of the Government Funded Loan
Sponsor/Share Concerned Department Funded & Non
Directorate General of Food (DGF) 2,380.77
holder of the Government Funded Loan
Bangladesh Air Force (Note: 7.07) 157.00 Non Funded Loan
Bangladesh Navy (Note: 7.07) 422.95 Non Funded Loan
Rapid Action Battelion (RAB) 33.55 Non Funded Loan
Bangladesh Coast Guard Sponsor/Share Concerned Department
(Note: 7.07) holder of the Government
Bangladesh Chemical Sponsor/Share Concerned Department Funded & Non
4,403.11
Industries Croporation (BCIC) holder of the Government Funded Loan
Bangladesh Railway 1,682.45 Non Funded Loan
Bangladesh Water Sponsor/Share Concerned Department Funded & Non
566.60
Development Board (BWDB) holder of the Government Funded Loan
Bangladesh Rural Sponsor/Share Concerned Department
Electrification Board (BREB) holder of the Government
B-R Powergen Limited Sponsor/Share Concerned Department
(Note: 7.07) holder of the Government
Department of Gas Transmission Sponsor/Share Concerned Department
Company Limited (GTCL) holder of the Government
Department of Fire Service Sponsor/Share Concerned Department
& Civil Defense holder of the Government
318
Transaction
Party Balance
(Crore)
Bangladesh Textile Mills Sponsor/Share Concerned Department
15.10 Funded Loan
Corporation (BTMC) holder of the Government
Bangladesh Betar 0.40 Non Funded Loan
National Board of Revenue Sponsor/Share Concerned Department
(NBR) holder of the Government
Bangladesh Petroleum
Exploration & Production 628.20 Non Funded Loan
Co. Ltd.(BAPLX)
Eastern Refinery Limited 325.57 Non Funded Loan
Trading Corporation of Sponsor/Share Concerned Department Funded & Non
1,686.77
Bangladesh(TCB) holder of the Government Funded loan
Dhaka Wasa 15.33 Non Funded Loan
Civil Aviation Authority 477.68 Non Funded Loan
Chittagong Port Authority 480.63 Non Funded Loan
Bangladesh Standard
Control & Testing Institute 7.34 Non Funded Loan
(BSTI)
Dhaka University 57.23 Funded Loan
Essential Drug Co. Ltd. 27.96 Non Funded Loan
Milk Vita 18.92 Non Funded Loan
Bangladesh Bank 30.19 Non Funded Loan
Bangladesh
Telecommunication Co.Ltd. 23.42 Non Funded Loan
(BTCL)
Bangladesh Settelite Co.Ltd. 0.94 Non Funded Loan
Ministry of Information & Sponsor/Share Concerned Department
Communication holder of the Government
Bangladesh Municipal Sponsor/Share Concerned Department
Water holder of the Government
Ministry of Health 4.61 Non Funded Loan
Metrological Department 1.79 Non Funded Loan
Family Planning 3.54 Non Funded Loan
Livestock and Daily
Devolopment Project 20.62 Non Funded Loan
(LDDP)
Annual Report 2021

Transaction
Party Balance
(Crore)
National Inst. Of Caner Sponsor/Share Concerned Department
Hospital holder of the Government
LGED 2.88 Non Funded Loan
Bangladesh Inland Water
Transport Corporation 601.77 Non Funded Loan
(BIWTC)
NCTB 1.12 Non Funded Loan
Department of Immigration Sponsor/Share Concerned Department
and Passport holder of the Government
Bangladesh Cable Shilpa Sponsor/Share Concerned Department
Ltd. holder of the Government
Sahid Monsur Ali Medical Sponsor/Share Concerned Department
College holder of the Government
Bangladesh Police 159.19 Non Funded Loan
Central Medical storage Sponsor/Share Concerned Department
DEPO (CMSD) holder of the Government
DGFI 12.38 Non Funded Loan
Bangladesh Ordinance Sponsor/Share Concerned Department
Factory holder of the Government
Bangladesh Atomic Energy
Commission (Roopur NNP 60,824.92 Non Funded Loan
Project)
Directorate General of Sponsor/Share Concerned Department
3,485.46 Non Funded Loan
Defense Purchase (DGDP) holder of the Government
Bangladesh Election Sponsor/Share Concerned Department
Commission (BEC) holder of the Government
Bangladesh Jute Mills Sponsor/Share Concerned Department
159.13 Funded Loan
Corporation (BJMC) holder of the Government
Department of Environment 8.92 Non Funded Loan
Dhaka South City Sponsor/Share Concerned Department
Corporation holder of the Government
Islamic Foundation 3.86 Non Funded Loan
National
Telecommunication 79.23 Non Funded Loan
Monetoring Center
KUET 43.87 Non Funded Loan
Latif Buwany Jute Mills Ltd. 0.42 Non Funded Loan
Sher-e-Bangla Agricultural Sponsor/Share Concerned Department
90.16 Funded Loan
University holder of the Government
Mowlana Bhasani Science & Sponsor/Share Concerned Department
Technology University holder of the Government
320
Transaction
Party Balance
(Crore)
Shahjalal University of Sponsor/Share Concerned Department
1.47 Funded Loan
Science & Technology holder of the Government
Sundarban Gas Shilpa Ltd. 20.58 Non Funded Loan
Biman Bangladesh Airlines Sponsor/Share Concerned Department
5,572.10 Funded Loan
Ltd.(note 7.7) holder of the Government
Sonali Exchange Co. N.Y. (note 7.3.1) The Bank Subsidiary Company 0.12 Funded Loan
Sonali Bank (U.K.) Ltd (note 7.3.1) The Bank Subsidiary Company 411.84 Funded Loan
Payra Port Authority (note Concerned Department
The Bank 259.42 Funded Loan
7.3.1) of the Government
Sonali Exchange Co. N.Y. (note 9.1) The Bank Subsidiary Company 8.15 Investment
Sonali Investment Ltd. (note 9.1) The Bank Subsidiary Company 200.00 Investment
Sonali Bank (U.K.) Ltd (note 9.1) The Bank Subsidiary Company 338.30 Investment
Sonali Intelect Ltd (note 9.1) The Bank Associate 26.25 Investment
48.00 Event after the Balance Sheet date

No circumstances have arisen since the Balance Sheet date, which would require any adjustments or disclosure
to be made in the Financial Statements but COVID-19 pandemic may affect the financial activities of the Bank in
2021.
Annual Report 2021

Sonali Bank Limited

Balance with Bangladesh Bank and its agent bank(s)
and Investment in Government securities
Annexure-A
1.00 Balance with Bangladesh Bank and its agent bank(s)

a) Local Currency
Amount in Taka
No. Particulars As per

As per
Bangladesh
Sonali Bank
Bank
1 Head Office 51,34,87,81,813 49,95,05,24,513
2 Local Office 6,56,51,21,356 5,59,54,30,905
3 Barishal Corporate Branch 17,97,72,308 17,97,72,308
4 Bogra Corporate Branch 1,06,55,014 26,06,72,420
5 Laldighi Corporate Branch 63,31,54,372 22,85,16,900
6 Khulna Corporate Branch 42,49,33,495 41,79,04,495
7 Rangpur Corporate Branch 36,47,63,796 36,84,68,858
8 Rajshahi Corporate Branch 14,33,21,620 14,33,21,620
9 Sylhet Corporate Branch 1,98,31,602 98,34,502
Total 59,69,03,35,375 57,15,44,46,520
b) Foreign Currency
1 USD 9,82,26,14,966 31,43,288.93

2 GBP 1,18,54,702 1,13,494.12
3 EURO 40,12,213 43,604.63
4 J. YEN 10,79,427 14,46,177.00
Total 9,83,95,61,308 47,46,565
Difference appeared in between the balance as per Bangladesh Bank and Sonali Bank Ltd. due to reconciliation gap.
Investment in Government securities classified as per Bangladesh Bank's DOS circular No. 05 date 26 May
2.00
2008 and DOS circular No. 05 date 28 January 2009.
Amount in Taka
Particulars
2021 2020
a) Held to Maturity (HTM)
Bond / Other securities
2 years BGTB 30,02,98,59,365 9,00,67,69,478
5 years BGTB 50,01,20,49,906 41,06,34,30,961
10 years BGTB 56,96,33,33,561 59,92,22,55,934
15years BGTB 44,95,09,70,243 37,30,13,31,318
20 years BGTB 40,11,45,94,272 33,16,47,56,893
11 to 13 years BJMC 3,92,64,00,000 3,92,64,00,000
8 to 15 years BPC 16,86,47,00,000 31,36,47,00,000
322
Amount in Taka
Particulars
2021 2020
3 years SBL - 33,20,37,000
7 years SBL 4,42,74,00,000 4,42,74,00,000
Public Debenture 51,47,900 51,47,900
3 years FRTB 1,00,00,00,000 1,00,00,00,000
Sub Total 2,48,29,44,55,246 2,21,51,42,29,484
Total 2,48,29,44,55,246 2,21,51,42,29,484
b) Held For Trading (HFT)
Treasury Bill
91 days Treasury Bill 56,38,42,86,687 91,05,50,27,918
Sub Total 1,22,67,13,34,994 1,34,86,71,40,485
Bond / Other securities
2 years BGTB 49,32,75,92,121 36,09,63,98,075
5 years BGTB 65,26,97,56,917 44,50,87,71,077
10 years BGTB 23,78,13,07,270 7,92,87,22,864
15years BGTB 4,72,60,02,787 7,51,71,00,950
20 years BGTB 6,72,17,76,860 11,94,67,57,584
Reverse Repo 2,50,68,66,750 -
Public Share-ICB 91,34,24,500 91,34,24,500
Sub Total 1,53,24,67,27,205 1,08,91,11,75,049
Total 2,75,91,80,62,199 2,43,77,83,15,534
(c) Remeasured Security Account
2 years BGTB 14,00,00,00,000 -
5 years BGTB 3,16,53,01,038 23,04,10,81,711
10 years BGTB 33,80,52,87,145 32,66,52,08,830
15years BGTB 13,71,56,24,510 12,85,50,29,204
20 years BGTB 12,56,90,61,955 11,01,06,89,643
Sub Total 77,25,52,74,648 79,57,20,09,388
(d) Bangladesh Government Investment Sukuk (Ijarah Sukuk)
BG Investment Sukuk (Ijarah Sukuk) 11,22,88,70,000 5,27,94,50,000
Sub Total 11,22,88,70,000 5,27,94,50,000
Grand Total 6,12,69,66,62,093 5,50,14,40,04,406
Annual Report 2021

324
Consolidated Schedule of Fixed Assets
Annexure -B
Cost/Revaluation Depreciation/Amortization
Written down
Particulars Desposals/ Foreign Adjusted Desposals/ Foreign value as at
Adjusted Addition Total Rate of Charged Total
adjustments currency opening adjustments currency 31.12.2021
opening balance during the balance as at Dep. during the balance as at
during the translation balance as at during the translation
as at 01.01.2021 year 31.12.2021 (in %) year 31.12.2021
year gain/(loss) 01.01.2021 year gain/(loss)
Premises 32,14,61,65,983 8,16,77,923 - (1,58,023) 32,22,76,85,884 2.50 56,05,91,832 - 5,12,59,079 (64,279) 61,17,86,632 31,61,58,99,252
Building Construction 33,29,89,773 4,24,63,839 6,51,82,552 - 31,02,71,060 - - - - - - 31,02,71,060

Sub total 32,47,91,55,757 12,41,41,762 6,51,82,552 (1,58,023) 32,53,79,56,944 56,05,91,832 - 5,12,59,079 (64,279) 61,17,86,632 31,92,61,70,312
B) Dead Stock
Furniture 1,34,04,43,296 13,04,70,135 66,04,950 - 1,46,43,08,481 10.00 81,25,56,698 64,81,488 6,87,85,783 (2,042) 87,48,58,951 58,94,49,531
Electric Installation 1,15,93,63,344 15,02,98,237 46,77,821 3,858 1,30,49,87,618 20.00 86,58,69,041 54,19,724 8,81,91,548 (19,395) 94,86,21,469 35,63,66,149
Computer Hardware 2,31,63,43,974 23,01,80,369 94,98,015 - 2,53,70,26,329 20.00 1,95,91,77,608 1,10,31,789 18,41,07,755 (5,741) 2,13,22,47,833 40,47,78,496
Type Writer Machine 56,10,105 - 671 - 56,09,434 20.00 54,37,880 605 1,08,424 - 55,45,699 63,735
Motor Car & Other Vehicle
62,01,18,538 33,48,733 56,052 - 62,34,11,219 20.00 34,86,07,723 5,650 8,53,47,973 2,869 43,39,52,914 18,94,58,305
Library 1,25,53,608 5,33,133 - - 1,30,86,740 7.00 55,54,089 - 5,78,745 - 61,32,834 69,53,906

Sub total 5,45,44,32,864 51,48,30,608 2,08,37,509 3,858 5,94,84,29,821 3,99,72,03,037 2,29,39,256 42,71,20,229 (24,309) 4,40,13,59,701 1,54,70,70,121
Total (A+B) 37,93,35,88,621 63,89,72,370 8,60,20,061 (1,54,165) 38,48,63,86,765 4,55,77,94,869 2,29,39,256 47,83,79,308 (88,588) 5,01,31,46,333 33,47,32,40,433
C) Dead Stock of overseas Branches
India Operation 2,47,74,048 15,30,251 - - 2,63,04,299 1,96,20,276 - 16,28,615 - 2,12,48,891 50,55,408
Sub total 2,47,74,048 15,30,251 - - 2,63,04,299 1,96,20,276 - 16,28,615 - 2,12,48,891 50,55,408
D) Intangible Assets
Computer Software 62,69,49,423 3,87,18,661 3,95,525 - 66,52,72,559 20.00 37,68,25,616 3,92,208 14,91,59,053 (29,900) 52,55,62,561 13,97,09,998
Sub total 62,69,49,423 3,87,18,661 3,95,525 - 66,52,72,559 37,68,25,616 3,92,208 14,91,59,053 (29,900) 52,55,62,561 13,97,09,998
E) Right of Use Assets
Right of Use Assets 52,19,07,559 13,96,00,119 - - 66,15,07,678 12,77,78,083 - 13,77,95,555 - 26,55,73,638 39,59,34,040
Sub total 52,19,07,559 13,96,00,119 - - 66,15,07,678 12,77,78,083 - 13,77,95,555 - 26,55,73,638 39,59,34,040
Balance as at 31 December 2021 39,10,72,19,651 81,88,21,401 8,64,15,586 (1,54,165) 39,83,94,71,301 5,08,20,18,843 2,33,31,464 76,69,62,531 (1,18,488) 5,82,55,31,423 34,01,39,39,878
Balance as at 31 December 2020 37,65,40,77,245 1,58,01,46,455 48,39,23,647 602 38,75,03,00,655 4,18,64,56,744 4,73,34,468 71,86,39,720 2,518 4,85,77,64,515 33,89,25,36,141
Sonali Bank Limited
Schedule of Fixed Assets
Annexure -C
Written down
Particulars Desposals/ Adjusted Desposals/ value as at
Adjusted opening Addition Total Rate of
adjustments opening adjustments Charged Total balance 31.12.2021
balance as at during the balance as at Dep.
during the balance as at during the during the year as at 31.12.2021
01.01.2021 year 31.12.2021 (in %)
year 01.01.2021 year
Premises 31,92,26,83,816 6,51,82,551 - 31,98,78,66,368 2.50 45,60,77,000 - 4,45,61,383 50,06,38,383 31,48,72,27,985
Building Construction 33,29,89,774 4,24,63,839 6,51,82,552 31,02,71,061 - - - - - 31,02,71,061
Sub total 32,25,56,73,590 10,76,46,390 6,51,82,552 32,29,81,37,428 45,60,77,000 - 4,45,61,383 50,06,38,383 31,79,74,99,046
B) Dead Stock
Furniture 1,27,85,79,149 13,04,70,135 66,04,950 1,40,24,44,335 10.00 75,19,49,774 64,81,488 6,83,07,839 81,37,76,125 58,86,68,210
Electric Installation 1,12,83,13,756 14,97,86,148 46,77,821 1,27,34,22,083 20.00 83,91,55,868 54,19,724 8,58,43,303 91,95,79,447 35,38,42,636
Computer Hardware 2,25,33,41,077 22,98,65,529 94,98,015 2,47,37,08,592 20.00 1,89,81,16,484 1,10,23,965 18,33,39,290 2,07,04,31,809 40,32,76,783
Type Writer Machine 56,10,105 - 671 56,09,434 20.00 54,37,880 605 1,08,424 55,45,699 63,735
Motor Car & Other Vehicle 59,06,57,323 33,48,733 56,052 59,39,50,005 20.00 31,96,66,919 5,650 8,50,88,294 40,47,49,563 18,92,00,442
Library 1,25,53,608 5,33,133 - 1,30,86,740 7.00 55,54,088 - 5,78,745 61,32,833 69,53,907
Sub total 5,26,90,55,019 51,40,03,678 2,08,37,509 5,76,22,21,189 3,81,98,81,012 2,29,31,432 42,32,65,897 4,22,02,15,477 1,54,20,05,712
Total (A+B) 37,52,47,28,609 62,16,50,069 8,60,20,061 38,06,03,58,617 4,27,59,58,012 2,29,31,432 46,78,27,280 4,72,08,53,859 33,33,95,04,758
India Operation 2,47,74,048 15,30,251 - 2,63,04,299 1,96,20,276 - 16,28,615 2,12,48,891 50,55,408
Sub total 2,47,74,048 15,30,251 - 2,63,04,299 1,96,20,276 - 16,28,615 2,12,48,891 50,55,408
Computer Software 61,29,58,425 3,87,18,661 3,95,525 65,12,81,561 20.00 36,97,42,339 3,92,208 14,60,03,740 51,53,53,871 13,59,27,690
Sub total 61,29,58,425 3,87,18,661 3,95,525 65,12,81,561 36,97,42,339 3,92,208 14,60,03,740 51,53,53,871 13,59,27,690
E) Right of Use Assets
Right of Use Assets 52,19,07,559 13,96,00,119 - 66,15,07,678 12,77,78,083 - 13,77,95,555 26,55,73,638 39,59,34,040
Sub total 52,19,07,559 13,96,00,119 - 66,15,07,678 12,77,78,083 - 13,77,95,555 26,55,73,638 39,59,34,040
Balance as at 31 December 2021 38,68,43,68,640 80,14,99,100 8,64,15,586 39,39,94,52,154 - 4,79,30,98,709 2,33,23,640 75,32,55,190 5,52,30,30,259 33,87,64,21,896
Balance as at 31 December 2020 37,58,34,20,240 1,57,98,22,409 47,87,55,607 38,68,44,87,042 - 4,11,80,58,570 4,22,08,095 71,73,42,005 4,79,31,92,480 33,89,12,94,562
Annual Report 2021

326
Consolidated Schedule of Fixed Assets on Cost Basis
Annexure -D
Written down
Particulars Desposals/ Foreign Adjusted Desposals/ Foreign value as at
Adjusted Addition Total Rate of Charged
adjustments currency opening adjustments currency Total balance 31.12.2021
opening balance during the balance as at Dep. during the
during the translation balance as at during the translation as at 31.12.2021
as at 01.01.2021 year 31.12.2021 in %) year
year gain/(loss) 01.01.2021 year gain/(loss)
Premises 2,08,71,24,898 8,16,77,923 - (1,58,023) 2,16,86,44,799 2.50 45,66,12,391 - 5,15,18,758 (61,410) 50,80,69,739 1,66,05,75,060
Building Construction 33,29,89,773 4,24,63,839 6,51,82,552 - 31,02,71,060 - - - - - - 31,02,71,060
Sub total 2,42,01,14,672 12,41,41,762 6,51,82,552 (1,58,023) 2,47,89,15,859 45,66,12,391 - 5,15,18,758 (61,410) 50,80,69,739 1,97,08,46,120
B) Dead Stock
Furniture 1,34,04,43,296 13,04,70,135 66,04,950 - 1,46,43,08,481 10.00 81,25,56,698 64,81,488 6,87,85,783 (2,042) 87,48,58,951 58,94,49,531
Electric Installation 1,15,93,63,344 15,02,98,237 46,77,821 3,858 1,30,49,87,618 20.00 86,58,69,041 54,19,724 8,81,91,548 (19,395) 94,86,21,470 35,63,66,148
Computer Hardware 2,31,63,43,974 23,01,80,369 94,98,015 - 2,53,70,26,328 20.00 1,95,91,77,608 1,10,31,733 18,41,07,755 (5,741) 2,13,22,47,889 40,47,78,439
Type Writer Machine 56,10,105 - 671 - 56,09,434 20.00 54,37,880 605 1,08,424 - 55,45,699 63,735
Motor Car & Other Vehicle 62,01,18,538 33,48,733 56,052 - 62,34,11,219 20.00 34,86,07,723 5,650 8,50,88,294 - 43,36,90,367 18,97,20,853
Library 1,25,53,608 5,33,133 - - 1,30,86,740 7.00 55,54,089 - 5,78,745 - 61,32,834 69,53,906
Sub total 5,45,44,32,864 51,48,30,608 2,08,37,509 3,858 5,94,84,29,821 3,99,72,03,037 2,29,39,200 42,68,60,550 (27,178) 4,40,10,97,209 1,54,73,32,612
Total (A+B) 7,87,45,47,536 63,89,72,370 8,60,20,061 (1,54,165) 8,42,73,45,680 4,45,38,15,428 2,29,39,200 47,83,79,308 (88,588) 4,90,91,66,948 3,51,81,78,732
India Operation 2,48,92,450 15,30,251 - - 2,64,22,701 1,97,14,047 - 16,28,615 - 2,13,42,661 50,80,040
Sub total 2,48,92,450 15,30,251 - - 2,64,22,701 1,97,14,047 - 16,28,615 - 2,13,42,661 50,80,040
Computer Software 62,69,49,423 3,87,18,661 3,95,525 - 66,52,72,559 20.00 37,68,25,615 3,92,208 14,91,59,053 (29,900) 52,55,62,560 13,97,09,999
Sub total 62,69,49,423 3,87,18,661 3,95,525 - 66,52,72,559 20 37,68,25,615 3,92,208 14,91,59,053 (29,900) 52,55,62,560 13,97,09,999
Balance as at 31 December 2021 8,52,63,89,409 67,92,21,282 8,64,15,586 (1,54,165) 9,11,90,40,940 20 4,85,03,55,089 2,33,31,408 62,91,66,976 (1,18,488) 5,45,60,72,169 3,66,29,68,771
Balance as at 31 December 2020 7,59,43,48,560 1,04,64,72,132 47,14,69,283 602 8,16,93,52,012 20.00 4,08,93,05,013 3,54,48,676 57,21,48,135 2,518 4,62,60,06,991 3,54,33,45,021
Sonali Bank Limited
Schedule of Fixed Assets on Cost Basis
Annexure -E
Written down
Particulars Adjusted Desposals/ Desposals/ value as at
Rate of Adjusted Charged
opening Addition during adjustments Total balance adjustments Total balance as 31.12.2021
Dep. opening balance during the
balance as at the year during the as at 31.12.2021 during the at 31.12.2021
(in %) as at 01.01.2021 year
01.01.2021 year year
Premises 1,86,36,42,731 6,51,82,551 - 1,92,88,25,282 2.50 35,20,97,559 - 4,45,61,383 39,66,58,942 1,53,21,66,341
Building Construction 33,29,89,774 4,24,63,839 6,51,82,552 31,02,71,061 - - - - - 31,02,71,061
Sub total 2,19,66,32,505 10,76,46,390 6,51,82,552 2,23,90,96,343 35,20,97,559 - 4,45,61,383 39,66,58,942 1,84,24,37,402
B) Dead Stock
Furniture 1,27,85,79,149 13,04,70,135 66,04,950 1,40,24,44,335 10.00 75,19,49,774 64,81,488 6,83,07,839 81,37,76,125 58,86,68,210
Electric Installation 1,12,83,13,756 14,97,86,148 46,77,821 1,27,34,22,083 20.00 83,91,55,868 54,19,724 8,58,43,303 91,95,79,447 35,38,42,636
Computer Hardware 2,25,33,41,077 22,98,65,529 94,98,015 2,47,37,08,592 20.00 1,89,81,16,484 1,10,23,965 18,33,39,290 2,07,04,31,809 40,32,76,783
Type Writer Machine 56,10,105 - 671 56,09,434 20.00 54,37,880 605 1,08,424 55,45,699 63,735
Motor Car & Other Vehicle 59,06,57,323 33,48,733 56,052 59,39,50,005 20.00 31,96,66,919 5,650 8,50,88,294 40,47,49,563 18,92,00,442
Library 1,25,53,608 5,33,133 - 1,30,86,740 7.00 55,54,088 - 5,78,745 61,32,833 69,53,907
Sub total 5,26,90,55,019 51,40,03,678 2,08,37,509 5,76,22,21,189 3,81,98,81,012 2,29,31,432 42,32,65,897 4,22,02,15,477 1,54,20,05,712
Total (A+B) 7,46,56,87,524 62,16,50,068 8,60,20,061 8,00,13,17,532 4,17,19,78,571 2,29,31,432 46,78,27,280 4,61,68,74,418 3,38,44,43,113
India Operation 2,48,92,450 15,30,251 - 2,64,22,701 1,97,14,047 - 16,28,615 2,13,42,661 50,80,040
Sub total 2,48,92,450 15,30,251 - 2,64,22,701 1,97,14,047 - 16,28,615 2,13,42,661 50,80,040
Computer Software 61,29,58,425 3,87,18,661 3,95,525 65,12,81,561 20.00 36,97,42,339 3,92,208 14,60,03,740 51,53,53,871 13,59,27,690
Sub total 61,29,58,425 3,87,18,661 3,95,525 65,12,81,561 36,97,42,339 3,92,208 14,60,03,740 51,53,53,871 13,59,27,690
Balance as at 31 December 2021 8,10,35,38,399 66,18,98,981 8,64,15,586 8,67,90,21,794 4,56,14,34,956 2,33,23,640 61,54,59,635 5,15,35,70,950 3,52,54,50,843
Balance as at 31 December 2020 7,52,36,91,555 1,04,61,48,085 46,63,01,242 8,10,35,38,399 4,02,09,06,840 3,03,22,303 57,08,50,419 4,56,14,34,956 3,54,21,03,442
Annual Report 2021

Sonali Bank Limited

Schedule of Tax Position
Annexure-F
Tax assessment of Sonali Bank Ltd. has been completed and settled upto assessment year 2002-2003 (Income year upto
2001) resulting tax refund of Tk. 426,30,48,032 in favour of the Bank. As regards latest status of the tax assessments for
the income years 2019 and 2020 these are not yet finalised by the tax department. The Bank has submitted I.T. Returns
showing loss Tk . (15,74,48,87,099) & showing loss Tk. (7,10,16,05,441) for the income year 2019 and 2020 i.e. assessment
years 2020-2021, & 2021 - 2022 respectively. The loss shown by bank is inclusive of claim of Bad Debts written off and
others. In the income years 1996,1997 1998, 2000, 2001, 2002, 2003, 2004, 2005, 2006 ,2007, 2008 , 2009 , 2010 , 2011
, 2012, 2013, 2014, 2015, 2016 and 2017 the tax department did not accept the claim of Bad Debt written off, Provision for
Ex-gratia, Provision for NOSTRO A/C., Provision for other Assets, Interest on securities etc. against which the bank has filed
Reference Application to the Honorable High Court.
Detail of Tax assessment
Tax Provision
Income Assessment Assessment Assessed Tax Payment of Refundable/
as per Present Status Remarks
Year Year made by Liabilities Total Tax (Payable)
Accounts
Adjusted as
1992 1993-94 Nil DCT Settled Nil 9,78,95,171 - Demanded Tax
Adjusted as
Adjusted as
Adjusted as
Reference Application to the Adjusted as
1996 1997-98 Nil DCT High Court
Nil 35,93,91,548 - Demanded Tax
Reference Application to the
Nil 44,21,19,323 42,49,71,176 Refundable
1999 2000-01 Nil DCT Settled Nil 60,08,18,273 60,08,18,273 Refundable

Nil 1,13,54,89,757 1,13,54,89,757 Refundable
89,85,21,314 71,25,87,221 (18,59,34,093) Payable
241,46,10,301 58,80,00,560 (1,82,66,09,741) Payable
Nil 51,80,28,392 27,46,73,831 Refundable
37,80,72,785 43,81,69,963 6,00,97,178 Refundable
170,34,73,454 53,81,54,625 (1,26,65,36,541) Payable
201,08,03,744 1,21,81,37,968 (75,27,63,573) Payable
2008 2009-10 Nil DCT High Court.
216,74,91,869 88,94,21,612 (132,53,29,527) Payable
3,70,44,72,179 63,51,59,113 (254,00,43,944) Payable
4,11,68,48,042 1,11,85,23,981 (339,21,46,471) Payable
5,83,68,48,604 1,36,89,57,252 (508,32,62,792) Payable
3,30,64,74,128 1,45,92,84,890 (207,08,46,597) Payable
4,03,08,26,003 1,52,49,75,830 (2,86,91,07,823) Payable
2014 2015-16 19,94,01,664 DCT High Court
92,77,86,216 2,68,88,70,549 176,10,84,333 Refundable
2015 2016-17 19,71,84,155 DCT High Court
4,28,94,07,141 3,15,28,28,934 (1,14,61,15,391) Payable
2016 2017-18 41,61,18,748 DCT Appeal to Applat Tribunal 2,99,33,13,144 2,99,52,03,196 (1,40,948) Payable
2017 2018-19 43,86,38,021 DCT Appeal to Applat Tribunal 5,69,44,50,838 2,73,26,82,064 (2,96,17,68,774) Payable
2018 2019-20 45,18,69,948 DCT CT Appeal 7,56,27,11,954 2,46,42,75,972 (5,09,84,35,982) Payable
2019 2020-21 45,54,43,809 DCT Not yet assessed - 2,49,09,06,131 - Not yet assessed
2020 2021-22 50,59,75,162 DCT Not yet assessed - 2,97,91,69,309 - Not yet assessed
328
Sonali Bank Limited

Statement of Non-Income Generating Other Assets
Annexure-G
2021 2020
Particulars
Taka Taka
DOMESTIC BRANCHES
Stamps in hand 1,13,10,737 1,14,04,265
Stationery in hand 12,57,43,849 11,15,85,963
Branch Adjustment 28,27,06,80,207 42,09,21,75,178
Settlement A/C (Islami) 57,10,58,251 61,22,92,176
SBL Employee PDCRB fund Investment 50,00,00,000 4,17,62,59,894
SBL Employee Pension fund Investment 49,18,67,826 1,44,26,42,103
SBL Employees Benevolent fund Investment 15,95,25,776 -
Suspense A/C 17,88,90,240 16,51,18,697
Income Tax Deducted at source 26,52,53,15,184 23,83,20,43,223
Demand Draft Paid in Ex-Advice 4,94,10,801 5,43,86,228
Govt. Demand Draft Paid in Ex-Advice 14,19,222 15,70,210
Deferred Tax assets 26,07,80,85,270 27,50,03,78,525
Demand Drafts purchased 15,14,07,437 39,22,52,910
Protested Bills 29,01,37,711 29,46,63,961
BRDB UCCA Crop Loans Int. & Panel int. Exmpt.-2007 51,12,83,719 51,12,83,719
Branch Reconstruction A/C 50,195 50,195
Pension Bill Purchased (Army) 3,27,04,98,646 3,48,62,61,471
Pension Bill Purchased (Civil) 11,21,96,785 24,47,55,579
Army Pension Bill Purchases A/C New 10,08,56,55,777 12,09,00,05,145
Sanchaypatra Encashment Account 9,04,32,83,628 10,11,02,46,412
Loan Exemption Under J.S Reform Proj.94-95 5,09,45,43,083 5,09,45,43,083
NRT A/C Dr. Balance 43,57,75,867 43,57,75,867
Advance Payment of Income Tax 8,02,63,23,815 7,52,63,23,815
Adjusted Account Debit balance 95,09,71,922 86,57,69,318
Agri- Exemption A/C Affected By River Erosion 9,95,57,837 9,95,57,837
Preliminery Expenses - HR Recruitment A/C 4,43,81,074 4,71,88,984
ATM Settlement Account Debit Balance 14,20,93,384 41,42,48,361
SECI Settlement Account Debit Balance 36,40,72,470 50,48,10,243
Clearing Settlement Account Debit Balance 18,75,76,212 3,02,38,969
Govt. Transaction Settlement Account Debit Balance 14,80,74,54,851 12,36,32,14,551
Placement With Solicitation Account 19,36,77,713 16,47,17,013
Wage Earners' Bond Encashment A/C. 2,43,04,33,305 1,05,34,75,684
Receivable - Exchange Rate Fluctuation of Biman Loan 30,11,956 41
Mobile Financial Services Link Settlement Account Debit Balance 12,51,973 3,301
Non-Interest Bearing Blocked Account for COVID-19 11,42,813 3,47,13,49,961
Receivable from Govt. Under Savings Certificate Issued to Workers of BJMC against
4,06,80,61,708 3,54,21,99,340
Retirement Benefit
Islamic Banking Window 7,87,45,009 11,81,13,687
Others Assets of India operation 22,06,97,172 18,82,80,641
Total 1,43,57,75,93,426 1,63,04,91,86,549
Annual Report 2021

Sonali Bank Limited

Investment in Shares (Quoted and Unquoted)
Annexure -H
Cost Value Per Market Price Total Market

Particulars No. of Shares Total Cost Value
Share per Share Value
1 2 3 4=(2*3) 5 6=(2*5)
Investment in Shares (Quoted)
Bank & NBFI

AB BANK 29,53,278 52.30 15,44,56,439 13.50 3,98,69,253
AL-ARAFA BANK 21,01,013 25.95 5,45,21,287 26.60 5,58,86,946
BANK ASIA 31,51,190 19.86 6,25,82,633 21.80 6,86,95,942
DHAKA BANK 31,65,975 22.05 6,98,09,749 14.00 4,43,23,650
DUTCH BANGLA BANK 6,00,000 88.18 5,29,08,000 78.10 4,68,60,000
EBL 1,93,87,500 8.92 17,30,25,423 38.50 74,64,18,750
MTB 1,30,000 21.82 2,83,66,000 19.60 2,54,80,000
EXIM BANK 51,25,000 19.40 9,94,25,000 12.70 6,50,87,500
FIRST.S BANK 24,00,000 13.50 3,24,00,000 12.90 3,09,60,000
ICBI BANK 54,18,100 10.00 5,41,81,000 5.20 2,81,74,120
IDLC 16,71,879 70.49 11,78,50,751 60.30 10,08,14,304
IFIC BANK 13,00,000 19.29 2,50,77,000 16.90 2,19,70,000
MERCANTILE BANK 65,90,090 20.34 13,40,42,431 17.10 11,26,90,539
NBL 67,96,413 22.22 15,10,16,297 7.50 5,09,73,098
NCC BANK 52,03,989 23.87 12,42,19,217 15.30 7,96,21,032
ONE BANK 76,76,707 20.62 15,82,93,698 13.80 10,59,38,557
PREMIER BANK 22,50,000 14.90 3,35,25,000 14.90 3,35,25,000
PRIME BANK 39,30,000 23.57 9,26,30,100 21.50 8,44,95,000
SHAHJALAL BANK 53,25,092 25.97 13,82,92,639 21.80 11,60,87,006
SOUTHEASTB 50,07,782 30.75 15,39,89,297 15.50 7,76,20,621
STANDBANKL 33,42,039 16.59 5,54,44,427 10.70 3,57,59,817
UCBL 60,63,750 19.68 11,93,34,600 15.30 9,27,75,375
UNITEDFIN 7,01,325 39.02 2,73,65,702 21.10 1,47,97,958
LANKA BANGLA 22,70,000 42.50 9,64,75,000 37.30 8,46,71,000
UTTARA BANK 48,61,765 31.32 15,22,70,480 25.50 12,39,75,008
UTTARAFIN 5,94,227 136.41 8,10,58,505 40.90 2,43,03,884
CITY BANK 45,18,550 34.57 15,62,06,274 27.30 12,33,56,415
ISLAMI BANK 5,70,643 31.97 1,82,43,457 32.00 1,82,60,576
SIBL 23,58,889 14.90 3,51,47,446 14.80 3,49,11,557
BAYLEASING 7,14,816 96.80 6,91,94,189 31.00 2,21,59,296
1JANATAMF 12,00,000 8.08 96,97,501 6.20 74,40,000
1STPRIMFMF 2,07,000 38.82 80,34,886 19.80 40,98,600
ICBSONALI1 2,50,00,000 10.00 25,00,00,000 8.00 20,00,00,000
DBHISTMF 7,82,000 15.29 1,19,56,780 7.40 57,86,800
EBL1STMF 16,70,461 16.22 2,70,95,329 7.50 1,25,28,458
ICB3RDNRB 30,00,000 8.60 2,58,00,000 6.40 1,92,00,000
ICBEPMF1St 10,00,000 14.64 1,46,38,814 7.30 73,00,000
330

1 2 3 4=(2*3) 5 6=(2*5)
IFICISTMF 11,08,186 9.98 1,10,55,626 5.50 60,95,023
IFILISLMFI 30,00,000 8.06 2,41,80,000 6.40 1,92,00,000
TRUSTB1MF 9,60,089 10.59 1,01,67,417 5.70 54,72,507
PF1STMF 30,79,967 11.17 3,44,03,231 8.20 2,52,55,729
SEBL1STMF 14,32,000 10.00 1,43,20,000 13.10 1,87,59,200
PRIME1ICBA 20,00,000 8.09 1,61,80,000 7.20 1,44,00,000
Sub-Total 16,06,19,715 3,17,88,81,625 2,85,59,98,519
Insurance
BGIC 5,13,476 69.71 3,57,93,514 54.20 2,78,30,399
GREENDELMF 5,24,500 12.34 64,72,825 7.40 38,81,300
KARNAPHULI 6,18,360 79.77 4,93,23,732 42.50 2,62,80,300
PEOPLESINS 99,655 93.28 92,95,818 60.40 60,19,162
Sub-Total 17,55,991 10,08,85,890 6,40,11,161
Fuel and Power
DESCO 16,68,720 104.60 17,45,45,135 35.50 5,92,39,560
JAMUNAOIL 13,57,000 172.08 23,35,12,560 171.10 23,21,82,700
NATOXG 1,305 100.00 1,30,500 100.00 1,30,500
PADMAOIL 8,19,613 217.10 17,79,37,982 212.50 17,41,67,763
TITASGAS 35,50,000 39.89 14,16,09,500 36.30 12,88,65,000
MJLBD 13,00,000 95.25 12,38,25,000 88.30 11,47,90,000
LINDEBD 50,000 1,309.55 6,54,77,500 1,579.80 7,89,90,000
UPGDCL 2,87,808 290.15 8,35,07,491 244.20 7,02,82,714
POWERGRID 12,11,000 60.70 7,35,07,700 59.60 7,21,75,600
NAVANA CNG 5,10,885 139.51 7,12,73,566 29.50 1,50,71,108
SUMITPOWER 13,00,000 54.13 7,03,69,000 38.90 5,05,70,000
BARAKAPOWER 8,50,000 30.78 2,61,63,000 23.80 2,02,30,000
Sub Total 1,29,06,331 1,24,18,58,935 1,01,66,94,944
Manufacture & Others
AFTABAUTO 21,70,807 69.10 15,00,02,764 27.30 5,92,63,031
BATBC 4,12,000 655.77 27,01,77,240 635.60 26,18,67,200
KTL 2,00,000 40.17 80,34,000 32.40 64,80,000
BBSCABLES 10,30,000 78.39 8,07,41,700 55.90 5,75,77,000
BERGERPBL 26,735 1,749.59 4,67,75,289 1,765.90 4,72,11,337
BSCCL 3,32,500 222.14 7,38,61,550 210.10 6,98,58,250
MLDYING 1,00,000 36.28 36,28,000 23.30 23,30,000
EHL 6,50,000 64.92 4,21,98,000 46.80 3,04,20,000
MPETROLEUM 5,86,693 198.29 11,63,35,355 196.80 11,54,61,182
IBNSINA 1,40,000 288.57 4,03,99,800 271.30 3,79,82,000
ROBI 5,00,000 42.60 2,13,00,000 34.60 1,73,00,000
SINGERBD 4,00,000 193.47 7,73,88,000 169.90 6,79,60,000
RENATA 46,919 1,251.00 5,86,95,669 1,312.00 6,15,57,728
APEXWEAV 51,200 10.00 5,12,000 10.00 5,12,000
ASHRAFTEX 3,64,582 10.00 36,45,820 10.00 36,45,820
AZADIPRINT 756 100.00 75,600 100.00 75,600
Annual Report 2021


1 2 3 4=(2*3) 5 6=(2*5)
HEIDELBCEM 3,30,000 382.00 12,60,60,000 272.40 8,98,92,000
BCIL 2,960 100.00 2,96,000 100.00 2,96,000
CONFIDCEM 3,05,000 155.70 4,74,88,500 121.90 3,71,79,500
BEXIMCO 1,10,000 74.64 82,10,400 148.40 1,63,24,000
DULAMIACOT 16,000 10.00 1,60,000 49.70 7,95,200
FBFIF 7,76,14,699 6.44 50,00,00,000 5.20 40,35,96,435
UNILEVERCL 2,000 2,855.10 57,10,200 2,977.10 59,54,200
LR GLOBAL MF-1 51,84,672 9.64 5,00,00,000 6.90 3,57,74,237
POPULAR1MF 14,95,442 6.69 1,00,04,507 5.40 80,75,387
ATLASBANG 4,84,045 135.85 6,57,57,513 125.70 6,08,44,457
BENGALWTL 11,00,000 34.00 3,74,00,000 21.20 2,33,20,000
OIMEX 15,02,482 38.28 5,75,15,011 17.30 2,59,92,939
SQUARETEXT 9,54,850 54.56 5,20,96,616 52.20 4,98,43,170
SQUAREPHARMA 20,00,000 224.00 44,80,00,000 214.30 42,86,00,000
BXPHARMA 2,87,500 245.82 7,06,73,250 192.70 5,54,01,250
NILOYCEM 98 100.00 9,800 100.00 9,800
OLYMPIC 6,00,000 200.20 12,01,20,000 160.60 9,63,60,000
RAKCERAMIC 18,15,000 62.49 11,34,19,350 44.40 8,05,86,000
ROSEHEAV 4,327 15.00 64,905 15.00 64,905
SAPORTL 4,34,169 100.68 4,37,12,135 24.50 1,06,37,141
ACI 5,82,385 249.41 14,52,52,643 285.40 16,62,12,679
ACIFORMULA 5,64,500 159.00 8,97,55,500 147.10 8,30,37,950
ARGODENIM 11,00,000 27.45 3,01,95,000 17.50 1,92,50,000
BBS 20,90,550 26.00 5,43,54,300 18.30 3,82,57,065
GENNEXT 12,00,000 7.31 87,76,525 5.80 69,60,000
GHAIL 19,00,000 28.04 5,32,76,000 16.50 3,13,50,000
GP 3,18,500 358.45 11,41,66,325 349.50 11,13,15,750
IFADAUTOS 8,05,548 104.63 8,42,84,487 47.30 3,81,02,420
LHBL 10,75,000 83.02 8,92,46,500 71.10 7,64,32,500
SALAMCRST 3,90,000 37.93 1,47,92,700 25.20 98,28,000
SHASHADNIM 10,50,000 38.40 4,03,20,000 24.50 2,57,25,000
UNIQUEHRL 3,14,100 56.19 1,76,49,279 50.20 1,57,67,820
WMSHIPYARD 6,26,623 19.33 1,21,12,623 10.70 67,04,866
Sub Total 11,32,72,642 3,50,46,50,855 2,89,79,91,818
Grand total 28,85,54,679 8,02,62,77,305 6,83,46,96,441
Special Purpose Fund (SBLSF) Holding Position as on 31-12-2021
Bank and NBFI
DUTCHBANGLA 4,65,000 91.01 4,23,19,650 78.10 3,63,16,500
Sub Total 4,65,000 4,23,19,650 3,63,16,500
Fuel and Power
PADMAOIL 1,40,000 213.40 2,98,76,000 212.50 2,97,50,000
JAMUNAOIL 27,000 177.63 47,96,010 171.10 46,19,700
MPETROLIUM 2,61,000 199.44 5,20,53,840 196.80 5,13,64,800
MJLBD 4,20,000 102.64 4,31,08,800 88.30 3,70,86,000
SPCL 3,12,000 118.99 3,71,24,880 85.90 2,68,00,800
Candle Stone 1,50,00,000 10.00 15,00,00,000 10.00 15,00,00,000
332

1 2 3 4=(2*3) 5 6=(2*5)
Sub Total 1,61,60,000 31,69,59,530 29,96,21,300
Manufacture & Others
ACI 57,000 269.51 1,53,62,070 285.40 1,62,67,800
ACMELAB 3,05,000 107.12 3,26,71,600 86.50 2,63,82,500
BATBC 50,000 719.63 3,59,81,500 635.60 3,17,80,000
BBSCABLES 3,03,000 76.04 2,30,40,120 55.90 1,69,37,700
BERGERPBL 44,976 1,775.38 7,98,49,491 1,765.90 7,94,23,118
BXPHARMA 3,00,000 247.89 7,43,67,000 192.70 5,78,10,000
SQUAREPHARMA 2,95,000 238.26 7,02,86,700 214.30 6,32,18,500
SUB TOTAL 13,54,976 33,15,58,481 29,18,19,618
Grand total 1,79,79,976 69,08,37,661 62,77,57,418
Total Quoted 30,65,34,655 8,71,71,14,966 7,46,24,53,860
Investment in Shares (Unquoted)
Bank and NBFI
Grameen Bank 30,000 100.00 30,00,000 100.00 30,00,000
IIDFC 1,33,80,903 4.41 5,90,01,553 4.41 5,90,01,553
Karmasangthan Bank 26,00,000 100.00 26,00,00,000 100.00 26,00,00,000
Pubali Bank (former) 51,022 10.00 5,10,220 10.00 5,10,220
Padma Bank 16,50,00,000 10.00 1,65,00,00,000 10.00 1,65,00,00,000
Sub Total 18,10,61,925 1,97,25,11,773 1,97,25,11,773
Manufacturing
Allied Pharma Ltd. 10,00,000 10.00 1,00,00,000 10.00 1,00,00,000
S. Jute Yarn & Twine 33,790 10.00 3,37,900 10.00 3,37,900
Sub Total 10,33,790 1,03,37,900 1,03,37,900
Others
Bangladesh Fund 2,13,00,000 100.00 2,13,00,00,000 100.00 2,13,00,00,000
BCBL 11,25,000 100.00 11,25,00,000 100.00 11,25,00,000
CDBL 89,68,456 14.55 13,04,85,900 14.55 13,04,85,900
Orion Infrastructures 30,00,00,000 10.00 3,00,00,00,000 10.00 3,00,00,00,000
BHL 7,69,23,100 65.00 5,00,00,01,500 65.00 5,00,00,01,500
Paper Convert & Pack 5,000 100.00 5,00,000 100.00 5,00,000
Sub Total 40,83,21,556 10,37,34,87,400 10,37,34,87,400
Total Unquoted 59,04,17,271 12,35,63,37,073 12,35,63,37,073
Grand total 89,69,51,926 21,07,34,52,039 19,81,87,90,933
Required Provision
Provision Required on Quoted Share and Mutual Fund 1,03,35,48,007
Provision Required on Unquoted Share 11,66,00,000
Total Required Provision 1,15,01,48,007
Annual Report 2021

Sonali Bank Limited

Highlights on the Overall Activities
Annexure - I
SL. 2021 2020

Particulars
No. Taka Taka
1 Authorized Capital 60,00,00,00,000 60,00,00,00,000

2 Paid-up Capital 45,30,00,00,000 45,30,00,00,000
3 Total Capital (as per Capital Adequacy) 66,87,28,97,126 63,50,08,64,681
4 Capital surplus/(deficit) 24,58,57,126 14,06,94,681
5 Capital Adequacy Ratio 10.04% 10.02%
6 Statutory Reserve 14,54,70,96,640 13,46,90,02,429
7 Total Assets 17,06,80,34,50,750 15,91,23,37,64,462
8 Total Deposits 13,50,81,58,73,232 12,58,78,62,64,665
9 Total Investment 6,88,06,47,16,668 6,29,68,18,39,017
10 Total Contingent Liabilities and Commitments 8,86,19,34,54,020 9,49,41,30,66,834
11 Advance Deposit Ratio 51.12% 46.57%
12 Credit Deposit Ratio 102.06% 96.59%
13 Total Import 3,14,53,92,00,000 1,65,66,20,00,000
14 Total Export 32,11,36,00,000 25,17,31,00,000
15 Operating Profit 20,90,37,50,633 21,52,69,31,768
16 Profit after tax and provision 3,45,66,68,149 3,23,43,49,442
17 Total Loans and Advances 6,90,59,68,53,940 5,86,23,27,19,704
18 Amount of Classified Loans 1,19,58,52,90,407 1,07,67,39,00,177
19 Percentage of Classified Loans and Advances 17.32% 18.37%
20 Provisions kept against Classified Loans 63,52,83,91,397 57,70,54,51,597
21 Provision surplus/(deficit) - -
22 Cost of Fund 4.98% 5.23%
23 Income from Investment 38,69,27,31,319 39,99,64,29,147
24 Interest Earning Assets 13,32,23,71,94,384 11,95,51,72,10,490
25 Non-Interest Earning Assets 3,74,56,62,56,366 3,95,71,65,53,972
26 Return on Investment (ROI) 5.87% 6.07%
27 Return on Asset (ROA) 0.21% 0.21%
28 Return on Equity (ROE) 4.26% 4.21%
29 Earnings per Share (EPS) 7.63 7.14
30 Net assets value per share (NAVPS) 169.41 189.00
31 Price Earning Ratio N/A N/A
32 Net Operating Income per Share 46.15 47.52
334
FINANCIAL STATEMENTS OF SIL
AUDITOR’S REPORT
TO THE SHAREHOLDERS
OF
SONALI INVESTMENT
LIMITED
Opinion International Financial Reporting Standards, and for such in-

ternal control as management determines is necessary to
We have audited the financial statements of Sonali Invest- enable the preparation of financial statements that are free
ment Limited (the “Company”), which comprise the state- from material misstatement, whether due to fraud or error.
ment of financial position as at 31December 2021, and the In preparing the financial statements, management is re-
statement of profit or loss and other comprehensive in- sponsible for assessing the Company’s ability to continue as
come, statement of changes in equity and statement of cash a going concern, disclosing, as applicable, matters related
flows for the year then ended, and notes to the financial to going concern and using the going concern basis of ac-
statements, including a summary of significant accounting counting unless management either intends to liquidate the
policies and other explanatory information. Company or to cease operations, or has no realistic alterna-
tive but to do so.
In our opinion, the accompanying financial statements give
a true and fair view of the financial position of the Company Those charged with governance are responsible for over-
as at 31December 2021, and of its financial performance and seeing the Company’s financial reporting process.
its cash flows for the year then ended in accordance with In-
ternational Financial Reporting Standards (IFRSs), the Com-
panies Act 1994 and other applicable law and regulations. Auditor’s Responsibilities for the Audit of
the Financial Statements
Basis for Opinion Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
We conducted our audit in accordance with International material misstatement, whether due to fraud or error, and to
Standards on Auditing (ISAs). Our responsibilities under those issue an auditor’s report that includes our opinion. Reason-
standards are further described in the Auditors’ Responsibil- able assurance is a high level of assurance, but is not a guar-
ities for the Audit of the Financial Statements section of our antee that an audit conducted in accordance with ISAs will
report. We are independent of the Company in accordance always detect a material misstatement when it exists. Mis-
with the International Ethics Standards Board for Accoun- statements can arise from fraud or error and are considered
tants’ Code of Ethics for Professional Accountants (IESBA material if, individually or in the aggregate, they could rea-
Code),together with the ethical requirements that are rele- sonably be expected to influence the economic decisions of
vant to our audit of the financial statements in Bangladesh users taken on the basis of these financial statements
and we have fulfilled our other ethical responsibilities in ac-
cordance with the IESBA Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to As part of an audit in accordance with ISAs, we exercise
provide a basis for our opinion. professional judgment and maintain professional skepticism
throughout the audit. We also:
Responsibilities of Management and Those

z Identify and assess the risks of material misstatement of
Charged with Governance for the Financial the financial statements, whether due to fraud or error,
Statements and Internal Controls design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
Management is responsible for the preparation of financial and appropriate to provide a basis for our opinion. The
statements that give a true and fair view in accordance with risk of not detecting a material misstatement resulting
Annual Report 2021

from fraud is higher than for one resulting from error, underlying transactions and events in a manner that
as fraud may involve collusion, forgery, intentional achieves fair presentation.
omissions, misrepresentations, or the override of
internal control. We communicate with those charged with governance re-
garding, among other matters, the planned scope and tim-
z Obtain an understanding of internal control relevant to ing of the audit and significant audit findings, including any
the audit in order to design audit procedures that are significant deficiencies in internal control that we identify
appropriate in the circumstances. during our audit.
z Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates Report on other Legal and Regulatory
and related disclosures made by management.
Requirements
z Conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based In accordance with the Companies Act 1994, we also
on the audit evidence obtained, whether a material report the following:
uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability a. we have obtained all the information and explanations
to continue as a going concern. If we conclude that which to the best of our knowledge and belief were
a material uncertainty exists, we are required to draw
necessary for the purposes of our audit and made due
attention in our auditor’s report to the related disclosures
verification thereof;
in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions b. in our opinion, proper books of accounts as required
are based on the audit evidence obtained up to the by law have been kept by the Company so far as it
date of our auditor’s report. However, future events appeared from our examination of these books; and
or conditions may cause the Company to cease to
continue as a going concern. c. the statements of financial position and statement of
profit or loss and other comprehensive income dealt
z Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures, with by the report are in agreement with the books of
and whether the financial statements represent the accounts.
Firm’s Name : Anil Salam Idris & Co., Chartered Accountants
Signature :
Engagement Partner Name : S.M Tauhidul Islam, FCA

Partner/Enrolment No : 1536
DVC Number : 2204281536AS268564
336

Statement of Financial position
Amount in Taka
Particulars Notes
2021 2020
Assets
Non-Current Assets
Property, Plant & Equipment 4.00 5,14,450 3,80,452
Investment in Shares 5.00 1,66,64,40,012 93,42,26,070
Total Non-Current Assets 1,66,69,54,462 93,46,06,523
Current Assets:
Portfolio Margin Loan to Investors 6.00 2,16,95,02,626 2,15,85,84,276
Advance, Deposit and Prepayments 7.00 3,00,000 3,00,000
Advance Income Tax 8.00 8,22,99,026 7,83,89,138
Other Assets 9.00 94,18,456 80,31,557
Other Receivables 10.00 4,48,64,993 11,52,79,086
Cash and Cash Equivalents 11.00 31,77,05,010 19,27,24,249
Total Current Assets 2,62,40,90,112 2,55,33,08,306
Total Assets 4,29,10,44,574 3,48,79,14,829
Equity & Liabilities
Capital and Reserves
Share Capital 12 2,00,00,00,000 2,00,00,00,000
Retained Earnings 13.00 31,26,17,041 (1,65,26,670)
2,31,26,17,041 1,98,34,73,330
Non-Current Liabilities
Long Term Loan from Sonali Bank limited 14.01 30,99,98,483 17,65,02,933
Current Liabilities & Provision:
Short Term Loan from Sonali Bank limited 14.02 59,99,98,032 21,00,84,970
Portfolio Margin Deposit Control Accounts 15.00 5,47,83,712 4,38,14,309
Payable for Client Sale 32,31,884 1,39,24,732
Liabilities for Expenses 16.00 2,43,84,690 1,33,70,655
Other Liabilities 17.00 40,95,41,694 50,67,46,789
Provision Against Portfolio Margin Loan 18.00 38,90,11,538 38,90,11,538
Provision Against Investment in Shares 19.00 8,32,96,334 8,32,96,334
Liabilities for Income Tax 20.00 10,41,81,167 6,76,89,240
Total Current Liabilities & Provision 1,66,84,29,050 1,32,79,38,567
Total Equity and Liabilities 4,29,10,44,574 3,48,79,14,829
The annexed notes 01 to 44 form an integral part of these financial statements.
Chief Executive Officer Director Chairman
Signed in terms of our separate report of even date annexed.
Signature :

DVC Number : 2204281536AS268564
Annual Report 2021


Statement of Profit or Loss and Other Comprehensive Income
Amount in Taka
Particulars Notes
2021 2020
Operating Income :
Interest Income 21.00 16,70,29,712 4,64,28,775
Interest Expenses 22.00 (5,35,25,849) (1,00,66,287)
Net Interest Income 11,35,03,863 3,63,62,487
Capital Gain/(Loss) on Sale of Shares (Own Portfolio) 26,82,72,746 4,82,48,445
Dividend Income 23.00 3,34,29,439 1,32,72,566
Fees and Commission Income 24.00 3,03,49,629 1,75,12,301
Other Operating Income 25.A 2,45,550 1,43,600
Total Operating Income (A) 44,58,01,227 11,55,39,399
Operating Expenses :
Salaries & Allowances 26.00 2,31,60,671 1,83,87,478
Rent, Rates, Insurance, Lighting 27.00 95,71,981 57,49,918
Postage, Telephone and Stamp 28.00 1,72,310 1,06,875
Stationery, Printing & Advertisement 29.00 2,09,975 1,58,343
Directors Fees & Honorarium 30.00 3,80,000 2,44,000
Repairs & Maintenance 31.00 2,90,317 4,01,411
Other Operating Expenses 32.00 63,20,467 41,91,275
CDBL Charges 21,42,285 4,19,048
Depreciation 4.02 3,43,722 4,52,808
Total Operating Expenses (B) 4,25,91,728 3,01,11,157
Non-Operating Income ( C ) 25.B - 3,53,850
Profit Before Provision (A-B+C) 40,32,09,529 8,57,82,092
Other Provision 17.02 50,00,000 35,00,000
Profit Before Tax 39,82,09,529 8,22,82,092
Income Tax Expense
Current Tax Expenses 33.00 (7,04,52,716) (1,58,10,664)
Deferred Tax 34.00 13,86,899 10,70,611
Net Profit after Tax 32,91,43,712 6,75,42,040
Earnings per Share 35.00 1.65 0.34


Signature :

DVC Number : 2204281536AS268564

338

Amount in Taka
Particulars Share Capital Retained Earnings Total Equity
Balance as on 01.01.2021 2,00,00,00,000 (1,65,26,670) 1,98,34,73,330
Net Profit after Tax - 32,91,43,712 32,91,43,712
Balance as at 31.12.2021 2,00,00,00,000 31,26,17,042 2,31,26,17,042

Amount in Taka
Particulars Share Capital Retained Earnings Total Equity
Balance as on 01.01.2020 2,00,00,00,000 (8,40,68,710) 1,91,59,31,290
Net Profit after Tax - 6,75,42,040 6,75,42,040
Balance as at 31.12. 2020 2,00,00,00,000 (1,65,26,670) 1,98,34,73,330

Annual Report 2021


Statement of Cash Flows
Amount in Taka
Particulars Notes
2021 2020
Cash flows from operating activities
Receipts from interest income 16,70,29,712 4,64,28,775
Receipts from other income 33,22,97,393 7,95,30,761
49,93,27,104 12,59,59,536
Payments to suppliers, employees & others (11,46,54,097) 1,62,76,358
Net cash generated by operating activities (A) 38,46,73,007 14,22,35,894
Cash flows from investing activities
(Payments)/Receipts for property, plant and equipment (4,77,720) (79,702)
Payments for investment in shares (73,22,13,940) (48,67,89,707)
(Increase)/Decrease in margin loan (1,09,18,350) 1,19,26,674
Net cash generated by investing activities (B) (74,36,10,010) (47,49,42,735)
Cash flows from financing activities
Proceeds from SBL loans 52,34,08,613 38,65,87,902
Finance cost recognized in profit and loss (3,94,90,849) (52,52,887)
Net cash used in financing activities ( C) 48,39,17,764 38,13,35,015
Net increase in cash and cash equivalents (A+B+C) 12,49,80,760 4,86,28,175
Cash and cash equivalents at the beginning of the year 19,27,24,249 14,40,96,074
Cash and cash equivalents at the end of the year 31,77,05,010 19,27,24,249

340

Notes to the Financial Statements
1.0 Reporting Entity

1.01 Legal Status And Nature Of The Company
Sonali Investment Limited was registered under the Companies Act 1994 as a Public Company, limited by shares
on 22 April 20IO and commenced its operation from 22 April 20I0. The Company obtained registration from
Securities and Exchange Commission as a merchant bank on 28 October 20I0. As a part of restructuring program
of Sonali Bank Limited directive by the Bangladesh Bank as per BRPD Circular no. 12 on 14 October 2009, Sonali
Investment Limited has been established as a subsidiary of Sonali Bank Limited to conduct merchant banking
activities and play active role in the Capital Market of Bangladesh.
1.2 Registered Office
The registered office of the Company is located at Borak Biz Center ( Ist & 2nd floor), 70, Dilkusha C/A, Dhaka.
1.3 Principal Activities

The major activities of the Company are portfolio management, margin loan account, issue management,
underwriting, equity & entrepreneurship fund consultancy and other services as required by clients.
2.00 Basis of Preparation And Presentation Financial Statements
2.01 Statement of Compliance
The Financial Statements have been prepared under Historical Cost Convention as a Going Concern. All
expenditure is recognized on accrual basis and all income is recognized on cash basis except for interest on
Margin Loan
2.02 Regulatory Compliances
As required, Sonali Investment Limited complies with the following major legal provisions in addition to the
Companies Act 1994 and other applicable laws and regulations:
a. Bangladesh Securities & Exchange Commission Rules and Regulations;
b. The Income Tax Ordinance 1984;
c..The Income Tax Rules 1984;
4. The Value Added Tax and Supplementary Duty Act 2012;
e. The Value Added Tax and Supplementary Duty Rules 2016;
f. Regulations & Circulars issued by Bangladesh Bank.
2.03 Rlsk and Uncertainties For Use Of Estimates In Preparation Of Financial Statements
Preparation of Financial Statements in conformity with the International Accounting Standards requires
management to make estimates and assumption that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the Financial Statements and revenues and expenses
during the year then ended. Actual results could differ from those estimates. Estimates are used for Accounting
of certain items such as long term contracts, depreciation and amortization, employees benefit plans, reserves
and contingencies.
2.04 Functional And Presentational Currency
These financial statements are prepared in Bangladesh Taka (Taka/Tk.) currency, which is the company's
functional currency. All financial information presented in Taka has been rounded off to the nearest Taka.
2.05 Use of Estimates And Judgment
The preparation of these financial statements in conformity with IFRSs requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, incomes and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.
Annual Report 2021

2.06 Components Of Financial Statements
The presentation of these financial statements is in accordance with the guidelines provided by IAS- I:
Presentationof Fina!1cial Statements. The Financial Statements comprises:
a. Statement of Financial Position as at 31 December 2020;
b. Statement of Profit and Loss or Other Comprehensive Income for the year ended 31 December 2020;
c. Statement of Changes in Equity for the year ended 31 December 2020;
d. Statement of Cash Flows for the year ended 31 December 2020; and
e. Notes, comprising a summary of significant accounting policies and explanatory information.
2.07 Reporting Period
The financial period of the company covers one year from 01 January 2020 to 31 December 2020 and is
followed consistently.
2.08 Authorisation For Issue
These financial statements are authorised for issue by the Board of Directors in its 76th Board of Directors
meeting heldon 18 May 2021.
2.09 Director's Responsibility On Financial Statements
The Board of Directors takes the responsibility for the preparation and presentation of these financial statements.
2.10 Comparative Information And Rearrangement Thereof
Comparative information has been disclosed for the year 2019 for all numerical information in the financial
statements and also the narrative and descriptive information where it is relevant for understanding of the
current rear's financial statements.
3.0 Significant Accounting Policies
The accounting policies set out below have been applied consistently (otherwise as stated) to all years presented
in these financial statements.
3.01 Property, Plant And Equipment
3.01.01 Recognition And Measurement
Items of property , plant and equipment are measured at cost less accumulated depreciation less impairment
loss, if any. Cost includes expenditure that is directly attributable to the acquisition of asset.
3.01.02 Subsequent Costs And Maintenance Activities
The company recognizes in the carrying amount of an item of property, plant and equipment the cost of
replacing part of such an item when the cost is incurred, if it is probable that the future economic benefits
embodied with the item will flow to the company and the cost of the item can be measured reliably. Expenditure
incurred after the assets have been put into operation, such as repair and maintenance is normally charged off
as revenue expenditure in the year in which it is incurred. In situation where it can be clearly demonstrated that
the expenditure has resulted in an increase in the future economic benefit expected to be obtained from the use
of fixed assets, the expenditure is capitalized as an additional cost of the assets. All other costs are recognized
to the profit and loss account as expenses as incurred. All up-gradation/enhancement are generally charged off
as revenue expenditure unless they bring similar sigificant additional benefits.
3.01.03 Software
Software cost less than TK 15,000 is charged as revenue expenditure. Customized software that is integral to the
functionality of the related equipment is capitalized as part of that equipment.
3.01.04 Maintenance Activities
The company incurs maintenance cost for all its major items of property, plant and equipment. Repair and
maintenance costs are charged as expenses when incurred.
342
3.01.05 Depreciation
Depreciation begins when the asset is available for use and continues until the asset is derecognized.
Depreciation is charged to amortize the cost of assets over their estimated useful lives, using reducing balance
method from 2010 to 2013 and from 2014 straight line method in accordance with IAS l6 "Property, Plant &
Equipment". Half basis of depreciation is charged on the additional assets. Depreciation is charged at the rates
varying from 10% to 20% depending on the estimated useful lives of assets as under,
Caegory Rate of Depreciation

Furniture & Fixtures 10%
Computer & Accessories 20%
Office Eauipment 20%
Motor Vehicle 20%
Air Conditioner & Generator 20%
Application Software 20%
Interior Decoration 20%
3.02 Investment In Shares
Investment in marketable ordinary shares has been shown at cost. Required provision for diminution in value of
shares as at closing of the year on an individual investment basis is made in the financial statements.
3.3 Receivables
Olher receivables at the balance sheet date are stated at amounts which are considered realizable. Specific
allowance is made for receivable considered to be doubtful of recovery.
3.04 Advances, Deposits And Prepayments
a. Advances are initially measured at cost. After initial recognition advances are carried at cost less deductions,
adjustments or charges to other account heads such as property, plant and equipment, inventory or expenses.
b. Deposits are measured at payment value.
c. Prepayments are initially measured at cost. After initial recognition prepayments are carried at cost less charges
to profit and loss account.
3.05 Cash And Cash Equivalents
Cash and cash equivalents include notes and coins in hand, cash at banks which are held and available for use
by the company without any restriction.
3.06 Provision For Liabilities
A provision is recognized in the balance sheet when the company has a legal or constructive obligation as
a result of a past event and it is probable that an outflow of economic benefits will be required to settle the
obligations in a:icordance with the IAS-37 "Provisions, Contingent Liabilities and Contingent Assets".
3.07 Income Tax Expenses
The company is a public limited company, limited by share. As per Income Tax Ordinance, 1984, provision for
Tax has been made at the existing rate of 37.5% in respect of business income.
3.07.01 Current Tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the reporting date and any adjustment to tax payable in respect of previous years. The applicable
tax rate for the company is 37.50%. Provision for taxation has been made on the basis of the Income Tax
Ordinance-I 984.
3.07.02 Deferred Tax
Deferred tax is provided for all temporary differences comprising between the tax base of assets and liabilities
and their carrying amounts in financial statements in accordance with the provision of IAS 12. Deferred tax is
calculated as per IAS -12.
Annual Report 2021

3.08 Revenue Recognition

3.08.01 Interest Income
In terms of the provisions of IFRS-15 "Revenue from contract with customer", the interest income is recognized
on accrual basis.
3.08.02 Investment Income
Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is also
included in investment income. Capital gain is recognized when it is realized,
3.08.03 Fees And Commission Income
Fees and commission income arising on services provided by the company are recognized on cash basis.
3.08.04 Dividend Income On Shares
Dividend income on shares is recognized during the period when it is received.
3.09 Borrowing Costs
Borrowing costs comprise interest expense on bank loan and other borrowings. All borrowing costs are
recognized in the profit and loss account.
3.10 Statement Of Cash Flows
Since the company is a subsidiary of Sonali Bank Ltd. the Cash Flow Statement has been prepared in conformity
with Bangladesh Bank Guideline to facilitate consolidation:
3.11 Related Party Disclosures
As par- IAS-24 “Related Party Disclosures”, parties are considered to be related if one of the parties has the ability
control the other party or exercise significant influence over the other party in making financial and operating
decisions. The company carried out transactions in the ordinary course of business on an arm’s length basis at
commercial rates with its related parties.
344
Amount in Taka
Particulars
2021 2020
4.00 Property, Plant & Equipment
4.01 Cost:
Opening balance 2,07,31,192 2,57,77,863
Less: Disposal during the year - (51,68,041)
Add: Addition made during the year 4,77,720 1,21,370
Closing balance 2,12,08,912 2,07,31,192
4.02 Accumulated Depreciation:
Opening balance 2,03,50,740 2,50,24,305
Less: Adjustment for disposal - (51,26,373)
Add: Charged during the year 3,43,722 4,52,808
Closing balance 2,06,94,462 2,03,50,740
Written down value (Note 4.01-4.02) 5,14,450 3,80,452
Details of assets are shown under 'Annexure-A'
5.00 Investment In Shares
Opening balance 93,42,26,070 44,74,36,363
Add: Investment made during the year 3,06,56,39,452 93,94,73,200
Less: Share sold during the year (2,33,34,25,510) (45,26,83,492)
Closing balance 1,66,64,40,012 93,42,26,070
Details of investment in share are shown under, 'Annexure - B'
6.00 Portfolio Loan To Investors
Opening balance 2,15,85,84,276 2,17,05,10,950
Add: Charged applied during the year 25,49,78,015 6,93,95,976
Add: Loan disbursed during the year 1,27,75,59,274 34,27,28,613
Less: Loan recovered during the year (1,52,16,18,939) (42,40,51,263)
Closing balance 2,16,95,02,626 2,15,85,84,276
7.00 Advance, Deposit And Prepayments
Security Deposit to CDBL 2,00,000 2,00,000
Advance House Rent (Uttara Branch) 1,00,000 1,00,000
Total 3,00,000 3,00,000
8.00 Advance Income Tax
Opening balance 7,83,89,138 9,70,93,316
Add: Paid during the year 3,78,70,678 1,52,56,612
11,62,59,816 11,23,49,928
Less: Adjusted during the year (3,39,60,790) (3,39,60,790)
Closing balance 8,22,99,026 7,83,89,138
9.00 Other Assets
Opening balance 80,31,557 69,60,946
Add: Deferred Tax Assets 13,86,899 10,70,611
Closing balance 94,18,456 80,31,557
10.00 Other Receivables
Receivable from ISTCL 1,25,14,093 7,45,21,264
Receivable from Wifang Securities 16,32,383 1,30,67,982
Receivable from Shahajan Securities 42,77,672 1,21,48,373
Receivable from Lankabangla Securities 1,61,74,647 1,16,36,704
Receivable from City Brokerage 1,02,33,787 38,72,351
A/C Receivable (against Assets Sales) 32,412 32,412
Total 4,48,64,993 11,52,79,086
Annual Report 2021

Amount in Taka
Particulars
2021 2020
11.00 Cash And Cash Equivalents
Cash in hand - -
Cash at Bank 31,77,05,010 19,27,24,249
Total 31,77,05,010 19,27,24,249
11.01 Cash At Bank
SBL, Foreign Ex. Corp. Br. (Investors STD A/C No. # 36000636) 7,89,69,810 5,81,32,152
SBL, Foreign Ex. Corp. Br. (Brokerage STD A/C No. # 36000628) 18,34,77,686 3,41,05,381
SBL, Foreign Ex. Corp. Br. (Current A/C No. # 33033589) 7,97,014 2,24,380
SBL Foreign Ex. Corp. Br., (SIL Kallyan Tahbil A/C No. # 34049584) 5,49,187 5,16,855
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000594) 35,97,572 8,76,14,875
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000677) 64,805 62,026
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000719) 89,11,357 54,12,948
Dhaka Bank, Islamic Banking Br., Motijheel (A/C No. # 214155434) 1,33,40,082 -
SBL, Uttara Br. (Investors STD A/C No. # 4000269) 1,82,35,226 -
SBL Uttara Br. (Current A/C No. # 1015192) 334 320
UCBL, Bijoynagar Br. (Investors A/C No. # 010713200000113) 30,10,553 31,96,915
UCBL, Bijoynagar Br. (A/C No. # 010711100001245) 74,687 2,177
SBL Mirpur Shilpa Elaka Br. (Investors STD A/C No. # 36000316) 65,45,668 34,33,041
SBL Mirpur Shilpa Elaka Br. (Current A/C No. # 33003627) 1,31,030 23,180
Total 31,77,05,010 19,27,24,249
12.00 Share Capital
Authorized capital
500,000,000 ordinary shares of Tk. 10 each 5,00,00,00,000 5,00,00,00,000
Issued, Subscribed & Paid up capital
200,000,000 ordinary shares of Tk. 10 each 2,00,00,00,000 2,000,000,000
Total 2,000,000,000 2,000,000,000
2021 2020
Name of the share holders Designation Percentage Percentage

Amount in Amount in
No of shares of total share No of shares of total share
Taka Taka
holdings holdings
Director and
Mr. Ziaul Hasan Siddique 1 0.0000005% 10 1 0.0000005% 10
Chairman
Mr. Md. Afzal Karim Director 1 0.0000005% 10 - - -
Mr. Md. Shamim Ahmed Director 1 0.0000005% 10 1 0.0000005% 10
CFO & GM, Sonali Bank

Limited Represented by Shareholder 1 0.0000005% 10 1 0.0000005% 10
Mr. Subhash Chandra Das
Sonali Bank Ltd.
Represented by Mr. Md. Shareholder 19,99,99,996 99.9999995% 1,99,99,99,960 19,99,99,996 99.9999980% 1,99,99,99,960
Ataur Rahman Prodhan
Mr. Md. Zakir Hossain Director - - - 1 0.0000005% 10
Total 20,00,00,000 100% 2,000,000,000 20,00,00,000 100% 2,00,00,00,000
346
Amount in Taka
Particulars
2021 2020
13.00 Retained Earnings
Opening Balance (1,65,26,670) (8,40,68,710)
Add: Profit after tax during the year 32,91,43,712 6,75,42,040
Closing balance 31,26,17,042 (1,65,26,670)
14.00 Loan From Sonali Bank Limited -
Khandakalin Rin (Note 14.01) 30,99,98,483 17,65,02,933
Long term loan (Note 14.02) 59,99,98,032 21,00,84,970
Total 90,99,96,514 38,65,87,902
14.01 Long Term Loan 210,084,970 -
Opening balance 17,65,02,933 -
Add: Loan received during the year 23,83,94,433 17,65,02,933
Less: Loan repaid during the year (10,48,98,883) -
Closing balance 30,99,98,483 17,65,02,933
14.02 Khandakalin Rin
Opening balance 21,00,84,970 -
Add: Loan received during the year 42,56,46,343 21,00,84,970
Less: Loan repaid during the year (3,57,33,281) -
Closing balance 59,99,98,032 21,00,84,970
* The loan has been provided by Sonali Bank Limited (Holding Company) for investment in own portfolio.
Khandakalin Rin was approved by Sonali Bank Limited as per Sanction Letter # 3072, dated 19 November 2019.
Long Term Loan was approved by Sonali Bank Limited as per Sanction Letter # 1267, dated 06 September 2020
as per Bangladesh Bank DOS Circular no. 01, dated 10 February
The interest amount shall be repaid quarterly each year as per agreement with Sonali Bank Limited.
* Interest rate of Khandakalin Rin is 6%
* Interest rate of Long Term Loan is 6%
15.00 Portfolio Deposit Control Accounts
Opening balance 4,38,14,309 2,30,10,134
Add: Deposit during the year 1,59,44,26,496 56,90,92,471
Less : Withdrawal/Fund use during the year (1,58,34,57,093) (54,82,88,296)
Closing balance 54,783,712 43,814,309
* Portfolio Deposit Control Accounts consists of the credit balance of investors deposit accounts.
16.00 Liabilities For Expenses
Pension fund 19,30,229 16,56,419
Contributory provident fund 68,47,662 55,46,899
Subscription 25,000 -
Audit fees 73,000 73,000
Legal Expenses - 50,000
CCTV/Internet/Intranet - 1,01,088
House Rent (HO) 5,69,250 5,69,250
Service Charge (HO) 37,950 37,950
Electric bill 1,60,000 1,30,000
Telephone bill 11,000 10,000
Paper bill 15,000 10,000
Interest and Charge on Khandakalin Rin 92,45,000 29,77,311
Interest and Charge on Long Term Loan 47,90,000 18,36,089
Generator maintenance - 15,150
Stamp and court Fee 40,000 -
Sundries 2,00,000 1,00,000
Source Tax Payable - 22,600
VAT Payable 1,00,000 1,33,900
Annual Report 2021

Amount in Taka
Particulars
2021 2020
Provision for CDBL charge 2,50,000 1,00,000
P&T 5,000 1,000
Repairs & Maintenance (Computer Hardware) 85,600 -
Total 2,43,84,690 1,33,70,655
17.00 Other Liabilities
Payable to ISTCL 1,82,00,557 10,52,53,635
SIL kallyan tahabil 4,57,104 4,43,732
Payable to Wifang Securities 32,05,898 92,50,044
Payable to Shahjahan Securities 29,83,861 1,03,75,204
Payable to Lankabangla Securities 38,15,869 1,10,08,274
Payable to City Brokerage 1,00,94,108 39,61,048
Security deposit 2,29,814 2,29,814
Interest suspense a/c 35,61,98,391 35,39,33,747
Provision for Incentive Bonus 1,43,56,091 1,22,91,291
Total 40,95,41,694 50,67,46,789
17.01 Interest Suspense Account
Opening balance 35,39,33,747 35,30,06,517
Add: Transfer to Interest Suspense Account 7,97,40,373 2,35,59,286
Less: Adjusted for Interest waiver of Affected small
(7,74,75,729) (2,26,32,057)
Investors
Closing balance 35,61,98,391 35,39,33,747
17.02 Provision for Incetnive Bonus
Opening balance 1,22,91,291 1,08,22,223
Add: Provision made during the year 50,00,000 35,00,000
Less: Paid during the year (29,35,200) (20,30,932)
Closing balance 1,43,56,091 1,22,91,291
18.00 Provision For Portfolio Margin Loan
Opening balance 38,90,11,538 38,90,11,538
Closing balance 38,90,11,538 38,90,11,538
* Required provision is made as per BSEC directives dated 28 December 2016.
19.00 Provision For Investment In Shares
Opening balance 8,32,96,334 8,32,96,334
Closing balance 8,32,96,334 8,32,96,334
* Required provision is made as per BSEC directives dated 28 December 2016.
20.00 Liabilities For Income Tax
Opening balance 6,76,89,240 8,58,39,367
Add: Provision made during the year 7,04,52,716 1,58,10,664
13,81,41,957 10,16,50,030
Less: Adjusted during the year (3,39,60,790) (3,39,60,790)
Closing balance 10,41,81,167 6,76,89,240
Interest on portfolio loan to investors 16,30,65,364 4,20,22,866
Interest on Bank deposits 39,64,347 44,05,908
Total 16,70,29,712 4,64,28,775
22.00 Interest Expense
Interest on Provident Fund 8,35,877 6,53,453
Interest on Khandakalin Rin 3,27,14,002 76,16,746
Interest on Long Term Loan 1,99,75,970 17,96,089
Total 5,35,25,849 1,00,66,287
348
Amount in Taka
Particulars
2021 2020
23.00 Dividend Income
Dividend from Securities 2,94,76,771 1,29,92,566
Dividend from Grameen MF 39,52,668 2,80,000
Total 3,34,29,439 1,32,72,566
24.00 Fees And Commission Income
Portfolio management fee 1,21,72,278 38,13,824
Settlement fee 1,81,57,937 41,82,452
EEF consultancy fee 95,00,000
Bond Arrangement Fee 19,415 16,025
IPO Application processing fee 3,03,49,629 1,75,12,301
Total 17,512,301 19,739,851
25.00 Other Income (25.A & 25.B) 2,45,580 4,97,450
25.A Other Income
Documentation charge 1,49,000 82,000
Sale of account opening form 7,050 4,100
Account closing charges 89,500 57,500
Total 2,45,550 1,43,600
25.B Other Income
Gain/(Loss) on Sale of fixed Assets-Interior Decoration & AC 30
Total - 3,53,850
26.00 Salaries & Allowances 1,95,76,386
Salaries & allowances 3,94,340 1,60,65,818
Recreation Expenses 9,90,000 4,80,000
Executive Car Maintenance 17,27,530 14,56,860
Festival Bonus - -
Honorarium (Diploma) 10,280 15,280
Leverage to Staff 4,62,135 3,69,520
Overtime 2,31,60,671 1,83,87,478
Total 10,280 15,280
27.00 Rent, Rates, Insurance & Lighting 82,11,000 49,42,120
Office Rent (HO, Mirpur, Uttara) 64,295 64,295
Insurance 7,66,510 5,39,753
Electric Bill 74,776
Service charge of premises 4,55,400 2,03,750
Total 95,71,981 57,49,918
28.00 Postage, Telephone And Stamps
Postage 18,630 21,335
Telephone bill 46,380 35,940
Stamp 1,07,300 49,600
Total 1,72,310 1,06,875
29.00 Printing, Stationery & Advertisement
Printing and stationery 1,84,975 1,19,382
Advertisement and publicity 25,000 38,961
Total 2,09,975 1,58,343
30.00 Directors Fees & Honorarium
Directors fees 3,20,000 1,84,000
Honorarium (Chairman of the Board) 60,000 60,000
Total 3,80,000 2,44,000
Annual Report 2021

Amount in Taka
Particulars
2021 2020
31.00 Repair And Maintenance
Car maintenance 1,59,570 2,90,636
Generator maintenance 20,072 3,250
Office Equipment Maintenace 1,10,675 1,07,525
Total 2,90,317 4,01,411
32.00 Other Operating Expenses
Traveling and conveyance 9,563 4,026
Entertainment expenses 7,56,879 4,11,108
Newspapers and periodicals 1,38,777 89,658
Bank charge 3,37,748 2,71,397
Lunch subsidy 7,00,000 5,57,280
Audit fees (Annual Accounts Audit) 73,000 73,000
Legal expenses 34,626 43,000
Subscriptions 7,56,080 2,32,000
Computer software & accessories (including internet &
7,05,432 6,17,782
Intranet bill)
VAT expenses 14,37,705 8,69,895
Tax consultant fees 1,91,500 1,71,200
Security Guard Payment 1,84,320 1,48,080
Business Promotion 1,42,500
Training Expenses 970
Miscellaneous expenses 8,51,367 7,02,849
Total 63,20,467 41,91,275
* Miscellaneous expenses comprises Iftar subsidy, light refreshment, water bill etc.
33.00 Income Tax Expenses
Tax on Income from investment in share (Capital Gain) @10% 2,68,27,275 48,24,845
Tax on other income @ 37.5% 3,69,64,554 83,36,306
Tax on Dividend Income @ 20% 58,95,354.28 25,98,513
Tax on Dividend Income of Grameen MF@ 20% 7,65,534 51,000
Provision made for current year 7,04,52,716 1,58,10,664
Total 7,04,52,716 1,58,10,664
34.00 Deferred Tax (Assets)
Opening balance 80,31,557 69,60,946
Add: Provision made during the year 13,86,899 10,70,611
Closing balance 94,18,456 80,31,557
35.00 Earnings Per Share (Eps)
Basic earnings per share:
Net Profit after tax 32,91,43,711 6,75,42,040
Number of ordinary shares outstanding 20,00,00,000 20,00,00,000
Earnings per share 1.65 0.34
36.00 Related Party Transaction
Name of the Transaction Transaction
Relationship Types of transactions
parties During the year During the year
Long term borrowing 30,99,98,483 -
Sonali Bank Limited Holding Company
Khandakalin rin 59,99,98,032 -
37.00 Receipts From Other Income
Capital gain/ (loss) on sale of shares (own portfolio) 26,82,72,746 4,82,48,445
Dividend income 3,34,29,439 1,32,72,566
Fees and commission income 3,03,49,629 1,75,12,301
Other income 2,45,580 4,97,450
Total 33,22,97,393 7,95,30,761
350
Amount in Taka
Particulars
2021 2020
38.00 Payments To Suppliers, Employees And Others
Total operating expenses (4,25,91,728) (3,01,11,157)
(Decrease)/Increase in portfolio deposit control accounts 1,09,69,403 2,08,04,175
(Decrease)/Increase in Payable for Client sale (Adjusting
(1,06,92,848) 1,29,67,236
Account)
(Decrease)/Increase in other liabilities (9,72,05,096) 13,45,29,728
(Decrease)/Increase in liabilities for expenses (30,20,965) 20,01,500
Income taxes Paid during the year (3,78,70,678) (1,52,56,612)
Decrease/(Increase) in other receivables 7,04,14,093 (10,56,11,320)
Increase/Decrease in other provision (50,00,000) (35,00,000)
Decrease/(Increase) in advance, deposit and prepayments - -
Depreciation 3,43,722 4,52,808
Total (11,46,54,097) 1,62,76,358
39.00 Director Fees
As per decision of the Board remuneration was paid to the Directors .
40.00 Status Of Tax Assessment Of The Company
The Company has submitted Income Tax Return for the year 2010 to DCT showing total income of Tk
53,142,899 and Tax amounting Tk. 17,674,025 has been paid before submission of Return. DCT settled the
income tax case with an additional income tax claim for Tk. 4,434,098. The company has appealed against
the claim. The Commissioner of Taxes(Appeal) settled the appeal case on 21 August 2013 with reduced to Tax
amount Tk. 4,420,163. The company has appealed to the Taxes Appellate Tribunal Division against the claim.
The Commissioner of Taxes(Tribunal) rejected the appeal case on 26 August 2015. The company has filed an
Income Tax Referrence Application to High Court Division on 26 October 2016 against the Commissioner of
Taxes (Appeal) decision.
The Company has submitted Income Tax Return for the year 2011 to DCT showing total income of Tk
81,584,399. Tax amounting Tk. 30,433,875 has been paid before submission of Return. DCT settled the income
tax case with an additional income tax claim for Tk. 549,784. The Company was paid the such amount.
The Company has submitted Income Tax Return for the year 2012 to DCT showing total income of Tk 26,343,997
and payable tax Tk 7,943,390. Tax amounting Tk. 22,080,941 has been paid before submission of the said
Return. The company has claimed the excess amount of Tk.19,121,429 for refund. DCT settled the income tax
case with an additional income tax claim for Tk. 121,816,431. The company was appealed to Commissioner of
Taxes (Appeal) against the claim. The Commissioner of Taxes (Appeal) rejected the appeal on 22 October, 2015.
The company appealed to the Taxes Appellate Tribunal Division against the claim and as per order of the Taxes
Appellate Tribunal, Benches-5, the appeal is sent back on remad to the learned CT(A) concern with direction
do dispose of the appeal on merit after allowing the assessee an opportunity of being heard. As the appeal is
remanded other ground have became redounded. CT (A) sent back to DCT as per Tribunal Order. But DCT did
not accepted for review and Revised their oreder as it is. The Company again appealed to the Commissioner
of Taxes (Appeal) against the DCT order. The Commissioner of Taxes(Appeal) did not accept the Appeal. The
company has again appealed to the Taxes Appellate Tribunal Division against the claim. The Commissioner of
Taxes(Tribunal) rejected the appeal case on 27 January 2020. The company has filed an Income Tax Referrence
Application to High Court Division on 26 January 2021 against the Commissioner of Taxes (Appeal) decision.
Annual Report 2021

and payable tax Tk 14,586,099.Tax amounting Tk. 3,887,397 has been paid with an adjustment of Tk. 19,121,429
from previous year (2012) before submission of the said Return. DCT settled the income tax case with an additional
income tax claim for Tk. 2,69,29,313. The company was appealed to Commissioner of Taxes (Appeal) against the
claim. The Commissioner of Taxes (Appeal) rejected the appeal on 23 November, 2016. The company appealed to
the Taxes Appellate Tribunal Division against the claim and as per order of the Taxes Appellate Tribunal, Benches-5,
the appeal is sent back on remad to the learned CT(A) concern with direction do dispose of the appeal on merit
after allowing the assessee an opportunity of being heard. As the appeal is remanded other ground have became
redounded. CT (A) sent back to DCT as per Tribunal Order. But DCT did not accepted for review and Revised their
oreder as it is. The Company again appealed to the Commissioner of Taxes (Appeal) against the DCT order. The
Commissioner of Taxes(Appeal) did not accept the Appeal. The company has again appealed to the Taxes Appellate
Tribunal Division against the claim. The Commissioner of Taxes(Tribunal) rejected the appeal case on 28 November
2019. The company has filed an Income Tax Referrence Application to High Court Division on 28 January 2021
against the Commissioner of Taxes (Appeal) decision.
and payable tax Tk 16,175,259.Tax amounting Tk. 16,175,259 has been paid before submission of the said Return.
DCT settled the income tax case with an additional income tax claim for Tk. 2,36,03,267. The company was
appealed to Commissioner of Taxes (Appeal) against the claim. The Commissioner of Taxes (Appeal) rejected the
appeal on 28 June, 2017. The company has appealed to the Taxes Appellate Tribunal Division against the claim. The
Commissioner of Taxes(Tribunal) rejected the appeal case on 30 May 2018. The company has filed an Income Tax
Referrence Application to High Court Division on 15 September 2019 against the Commissioner of Taxes (Appeal)
decision.
and payable tax Tk 29,42,146.20.Tax amounting Tk. 32,97,238 has been paid before submission of the said Return.
DCT settled the income tax case with an additional income tax claim for Tk. 40,84,906. The company has appealed
to Commissioner of Taxes (Appeal) against the claim.The Commissioner of Taxes (Appeal) revised DCT oreder on
23 April, 2018. As per revised DCT order DCT settled the income tax case with revised additional income tax claim
for Tk. 30,04,938. The company has appealed to the Taxes Appellate Tribunal Division against the claim on August
28, 2018. The Commissioner of Taxes(Tribunal) rejected the appeal case on 28 August 2018. The company has filed
an Income Tax Referrence Application to High Court Division on 24 November 2020 against the Commissioner of
Taxes (Appeal) decision.
The Company has submitted Income Tax Return for the year 2016 to DCT showing total income of Tk. 8,749,959 and
payable Tax of Tk. 4,332,815. Tax amounting Tk. 4,332,815 has been paid before submission of the said Return. DCT
settled the income tax case with refundable of income tax for Tk. 57,659. But as per DCT oreder they disallowance
of 10 items. As such the company has appealed to Commissioner of Taxes (Appeal) against the disallowances.
The Company has submitted Income Tax Return for the year 2017 to DCT showing total income of Tk. 124,396,828
and payable Tax of Tk. 33,960,790. Tax amounting Tk. 33,960,790 has been paid before submission of the said
Return. DCT settled the income tax case with an additional income tax for Tk. 3,339,542. The company has appealed
to Commissioner of Taxes (Appeal) against the claims.
352
and payable Tax of Tk. 28,440,912. Tax amounting Tk. 28,440,912 has been paid before submission of the said
Return.
and payable Tax of Tk. 24,492,154. Tax amounting Tk. 24,492,154 has been paid before submission of the said Return.
41.00 Capital Commitment
There is no capital commitment as at 31 December 2021.
42.00 Contingent Liabilities
There is no contingent liability as at 31 December 2021.
43.00 Claims Against The Company Not Acknowledged As Debt
There is no claim against the company not acknowledged as debt at 31 December 2021.
44.00 General:
i) The expenses, irrespective of capital or revenue nature, accrued/due but not paid have been provided for in the
books of the company.
ii) Previous years’ figure has been changed where necessary to confirm the current year’s profit.
Annual Report 2021

354
Annexure -A
Cost Depreciation Written down value

Sl.
Category of Assets Opening Purchased Disposal Charged
No. Total as on Opening Adjustment for Total as on As on As on
balance as during the during the Rate during the
31.12.2021 balance Disposal Assets 31.12.2021 31.12.2021 31.12.2020
on 01.01.21 year year year
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11=(5-10) 12

1 Furniture & Fixture 18,60,672 - 18,60,672 10% 16,28,001 1,48,239 - 17,76,240 84,432 2,32,671
2 Computer & Accessories 54,92,609 3,14,840 - 58,07,449 20% 53,54,868 1,69,196 - 55,24,064 2,83,385 1,37,741
3 Motor Vehicle 50,00,000 - - 50,00,000 20% 49,99,999 - - 49,99,999 1 1
4 Office Equipment 3,96,543 - - 3,96,543 20% 3,96,527 - - 3,96,527 16 16

Air Conditioner &
5 46,43,768 1,62,880 - 48,06,648 20% 46,43,747 16,288 - 46,60,035 1,46,613 21
Generator
6 Application of Software 29,17,600 - - 29,17,600 20% 29,07,600 9,999 - 29,17,599 1 10,000
7 Interior Decoration 4,20,000 - - 4,20,000 20% 4,19,998 - - 4,19,998 2 2
Total Assets 2,07,31,192 4,77,720 - 2,12,08,912 2,03,50,740 3,43,722 - 2,06,94,462 5,14,450 3,80,452
Portfolio of Investment in Shares
Annexure-B
Cost of Investment Market Value of Investment

Unrealized
Sl. No. Company Name
No of Share Cost per Cost of No of Share Market Price Market Value of Gain/Loss (Tk)
Held Share (Tk) Investment (Tk) Held per Share (Tk) Investment (Tk)
A. Marginable Share :
1 ACI Formulations Ltd. 52,500 200.21 10,510,978 52,500 147.10 7,722,750 (2,788,228)
2 Aftab Automobiles 131,018 47.74 6,255,426 131,018 27.30 3,576,790 (2,678,636)
3 Agrani Ins. Co Ltd. 154,071 59.21 9,123,114 154,071 60.00 9,244,260 121,146
4 Asia Insurance 44,500 109.59 4,876,800 44,500 115.00 5,117,500 240,701
5 Bashundhara Paper Mills Ltd. 171,227 58.39 9,997,996 171,227 43.10 7,379,884 (2,618,112)
6 Bay Leasing & Inv.Ltd. 130,764 54.67 7,148,933 130,764 31.00 4,053,684 (3,095,249)
7 BBS Cables Ltd. 36,173 67.15 2,428,915 36,173 55.90 2,022,043 (406,872)
8 BDCOM Online Limited 191,425 24.58 4,705,797 191,425 22.50 4,307,059 (398,738)
9 Beximco Limited 100,000 94.20 9,420,220 100,000 148.40 14,840,000 5,419,780
10 BSRM Steels Ltd. 131,450 90.35 11,876,271 131,450 71.10 9,346,095 (2,530,176)
11 Confidence Cement 85,001 147.74 12,558,094 85,001 121.90 10,361,604 (2,196,490)
12 Crown Cement PLC 7,623 74.75 569,851 7,623 62.20 474,151 (95,700)
13 CVO Petrochemical Ltd. 18,618 350.94 6,533,536 18,618 190.60 3,548,496 (2,985,041)
14 DBH Finance Corp. Limited 13,225 87.06 1,151,341 13,225 77.10 1,019,648 (131,693)
15 Eastern Housing 101,087 50.81 5,136,534 101,087 46.80 4,730,872 (405,662)
Annual Report 2021

356
Unrealized
16 Esquire Knit Composite Limited 41,669 45.00 1,875,105 41,669 35.00 1,458,415 (416,690)
17 First Security Bank Ltd. 200,000 12.83 2,566,480 200,000 12.90 2,580,000 13,520
18 GPH ispat ltd. 138,250 55.25 7,637,870 138,250 53.00 7,327,250 (310,620)
19 Grameen MF-2 1,036,906 17.98 18,645,436 1,036,906 15.40 15,968,352 (2,677,084)

20 GrameenPhone Ltd. 23,000 489.43 11,256,982 23,000 349.50 8,038,500 (3,218,482)
21 Heidelberg Cement 36,884 556.95 20,542,680 36,884 272.40 10,047,202 (10,495,479)
22 IDLC Finance Ltd. 20,704 73.38 1,519,286 20,704 60.30 1,248,451 (270,835)
23 IFAD Autos Limited 366,385 71.59 26,231,188 366,385 47.30 17,330,011 (8,901,177)
24 Jamuna Oil 30,090 198.39 5,969,441 30,090 171.10 5,148,399 (821,042)
25 LankaBangla Finance 50,000 36.84 1,842,215 50,000 37.30 1,865,000 22,785
26 Linde Bangladesh Ltd. 2,000 1,459.98 2,919,956 2,000 1,579.80 3,159,600 239,644
27 Lub-rref (Bangladesh) Limited 396,386 50.11 19,864,131 396,386 37.70 14,943,752 (4,920,379)
28 Malek Spin.Mills Ltd. 154,155 28.08 4,329,042 154,155 26.10 4,023,446 (305,597)
29 Matin Spinning Mills Limited 73,000 62.43 4,557,237 73,000 55.10 4,022,300 (534,937)
30 Meghna Petroleum Ltd. 110,665 237.79 26,315,473 110,665 196.80 21,778,872 (4,536,601)
31 MJL BD. Ltd. 20,000 98.34 1,966,740 20,000 88.30 1,766,000 (200,740)
Nahee Aluminum Composite

32 53,928 57.43 3,097,015 53,928 40.10 2,162,513 (934,502)
Panel Ltd.
Northern Islami Insurance
33 49,400 53.11 2,623,590 49,400 53.80 2,657,720 34,130
Limited
Unrealized
34 Oimex Electrode Ltd. 0 9.09 1 0 17.30 2 1
35 Olympic Industries 17,340 215.49 3,736,510 17,340 160.60 2,784,804 (951,706)
36 One Bank Limited 1,035,960 20.51 21,244,328 1,035,960 13.80 14,296,248 (6,948,080)
37 Padma Oil 175,478 283.77 49,795,234 175,478 212.50 37,289,075 (12,506,159)
38 Power Grid Co. 250,000 53.31 13,327,250 250,000 59.60 14,900,000 1,572,750
39 RAK Ceramics 280,040 47.22 13,224,273 280,040 44.40 12,433,776 (790,497)
40 Ring Shine Textiles Ltd. 1,005 7.30 7,341 1,005 9.60 9,651 2,310
41 Runner Automobiles Limited 64,666 64.81 4,190,784 64,666 51.30 3,317,366 (873,418)
42 Shahjibazar Power 58,568 91.35 5,350,158 58,568 85.90 5,030,991 (319,166)
43 Singer BD. Limited 2,000 194.11 388,220 2,000 169.90 339,800 (48,420)
Sonali Life Insurance Company
44 9,308 10.00 93,080 9,308 63.20 588,266 495,186
Limited
45 Square Pharma 93,686 240.28 22,511,256 93,686 214.30 20,076,910 (2,434,346)
46 Titas Gas T&D Co.Ltd. 355,810 69.03 24,560,105 355,810 36.30 12,915,903 (11,644,202)
47 Unique Hotel & Resort 33,535 53.15 1,782,332 33,535 50.20 1,683,457 (98,875)
48 United Insurance 180,966 68.78 12,446,027 180,966 65.70 11,889,466 (556,561)
49 United Power Generation 50,000 293.50 14,675,025 50,000 244.20 12,210,000 (2,465,025)
50 Uttara Bank Ltd. 381,084 32.95 12,555,956 381,084 25.50 9,717,642 (2,838,314)
51 Uttara Finance 15,830 69.80 1,104,929 15,830 40.90 647,447 (457,482)
52 VFS Thread Dyeing Limited 463,971 22.77 10,564,527 463,971 20.30 9,418,611 (1,145,916)
Sub Total (A) 477,611,006 382,820,030
Annual Report 2021

358
Unrealized
B. Non-Marginable Share :
1 ACME Pesticides Limited 10,000 10.00 100,000 10,000 26.80 268,000 168,000
2 Arian Chemicals(Pvt.Plac) 500,000 10.00 5,000,000 500,000 10.00 5,000,000 -
Energypac Power Generation

3 208,000 53.62 11,153,637 208,000 39.60 8,236,800 (2,916,837)
Limited
4 Familytex (BD) Limited 457,640 8.43 3,857,807 457,640 4.60 2,105,142 (1,752,665)
5 Fiber Shine Ltd.(Pvt.Plcemnt) 200,000 10.00 2,000,000 200,000 10.00 2,000,000 -
6 Generation Next Fashions Ltd. 400,000 5.92 2,369,414 400,000 5.80 2,320,000 (49,414)
7 Golden Son Limited 99,488 34.31 3,413,018 99,488 19.10 1,900,221 (1,512,797)
8 InTech Online Ltd. 40,000 61.23 2,449,012 40,000 27.90 1,116,000 (1,333,012)
9 Maksons Spin.Mills 400,000 22.90 9,161,710 400,000 24.70 9,880,000 718,290
10 Prime Finance 1,100,000 22.42 24,664,889 1,100,000 15.80 17,380,000 (7,284,889)
Sena Kalyan Insurance Company

11 4,000 10.00 40,000 4,000 77.30 309,200 269,200
Limited
12 Union Capital 284,067 22.38 6,356,019 284,067 9.90 2,812,263 (3,543,756)
Sub Total (B) 70,565,507 53,327,626
Total (A+B) 548,176,513 436,147,656

Annexure-B

Unrealized
1 Aftab Automobiles 19,023 29.64 563,785 19,023 27.30 519,324 (44,462)
2 Agrani Ins. Co Ltd. 352,734 60.54 21,354,997 352,734 60.00 21,164,040 (190,957)
3 AMCL (Pran) 50,000 193.04 9,652,224 50,000 292.50 14,625,000 4,972,776
4 Apex Footwear Limited 50,000 214.59 10,729,497 50,000 268.10 13,405,000 2,675,503
5 Asia Insurance 100,000 106.18 10,618,159 100,000 115.00 11,500,000 881,841
6 Bashundhara Paper Mills Ltd. 238,462 46.60 11,112,874 238,462 43.10 10,277,712 (835,162)
7 BATBC 25,000 558.38 13,959,390 25,000 635.60 15,890,000 1,930,610
8 BBS Cables Ltd. 105,000 54.18 5,688,392 105,000 55.90 5,869,500 181,108
9 BD. Lamps 16,023 193.53 3,100,999 16,023 192.70 3,087,632 (13,367)
10 BD. Submarine Cable Co. 10,000 183.85 1,838,513 10,000 210.10 2,101,000 262,487
11 BDCOM Online Limited 581,905 25.03 14,566,984 581,905 22.50 13,092,863 (1,474,122)
12 Beximco Limited 700,000 95.76 67,031,878 700,000 148.40 103,880,000 36,848,122
13 Beximco Pharma 150,000 188.73 28,308,952 150,000 192.70 28,905,000 596,048
14 Confidence Cement 140,000 133.18 18,644,728 140,000 121.90 17,066,024 (1,578,703)
15 Crown Cement PLC 352,096 79.93 28,143,526 352,096 62.20 21,900,371 (6,243,155)
Annual Report 2021

360
Unrealized
16 Eastern Housing 317,281 56.83 18,032,010 317,281 46.80 14,848,751 (3,183,259)
17 eGeneration Limited 300,101 61.35 18,410,342 300,101 47.50 14,254,798 (4,155,545)
18 GPH ispat ltd. 148,450 51.70 7,675,201 148,450 53.00 7,867,850 192,649
19 Grameen MF-2 1,634,021 18.02 29,439,242 1,634,021 15.40 25,163,923 (4,275,319)

20 ICB 77,000 107.75 8,296,664 77,000 123.90 9,540,300 1,243,636
21 Jamuna Oil 30,000 169.43 5,082,921 30,000 171.10 5,133,000 50,079

LafargeHolcim Bangladesh
22 21,500 73.17 1,573,186 21,500 71.10 1,528,650 (44,536)
Limited
23 LankaBangla Finance 800,000 41.77 33,417,900 800,000 37.30 29,840,000 (3,577,900)
24 Lub-rref (Bangladesh) Limited 390,000 50.41 19,659,236 390,000 37.70 14,703,000 (4,956,236)
25 M.L. Dyeing Limited 727,067 30.03 21,836,153 727,067 23.30 16,940,661 (4,895,492)
26 Malek Spin.Mills Ltd. 452,265 31.32 14,164,997 452,265 26.10 11,804,117 (2,360,881)
27 Matin Spinning Mills Limited 209,323 62.40 13,061,709 209,323 55.10 11,533,697 (1,528,012)
28 Meghna Petroleum Ltd. 34,040 202.02 6,876,890 34,040 196.80 6,699,072 (177,818)
Northern Islami Insurance
29 313,598 56.77 17,803,035 313,598 53.80 16,871,572 (931,463)
Limited
30 Padma Oil 21,964 224.14 4,923,108 21,964 212.50 4,667,350 (255,758)
31 Power Grid Co. 465,000.00 52.80 24,549,664 465,000 59.60 27,714,000 3,164,336
32 Premier Cement Mills Ltd. 153,954 90.85 13,986,479 153,954 65.10 10,022,405 (3,964,074)
33 Prime Bank Limited 1,250,000 24.96 31,197,193 1,250,000 21.50 26,875,000 (4,322,193)
34 Rangpur Foundry 45,000 121.12 5,450,302 45,000 154.10 6,934,500 1,484,198
35 Renata Limited 10,000 1,314.67 13,146,651 10,000 1,312.00 13,120,000 (26,651)

Unrealized
36 Runner Automobiles Limited 171,000 63.01 10,774,783 171,000 51.30 8,772,300 (2,002,483)
38 Square Pharma 139,000 222.08 30,869,430 139,000 214.30 29,787,700 (1,081,730)
39 Square Textile 250,000 49.00 12,250,560 250,000 52.20 13,050,000 799,440
40 Trust Bank Limited 464,264 34.12 15,842,685 464,264 33.30 15,459,991 (382,693)
41 United Insurance 486,953 68.48 33,347,929 486,953 65.70 31,992,812 (1,355,117)
Sub Total (A) 696,094,303 692,507,064
B. Non-Marginable Share :
Energypac Power Generation
1 230,466.00 52.80 12,169,578 230,466.00 39.60 9,126,454 (3,043,124)
Limited
2 Maksons Spin.Mills 550,000.00 24.43 13,436,831 550,000.00 24.70 13,585,000 148,169
3 Meghna Life Insurance 20,000.00 75.50 1,509,990 20,000.00 71.20 1,424,000 (85,990)
4 Western Marine Shipyard 0.45 11.73 5 0.45 10.70 5 (0)
Sub Total (B) 27,116,404 24,135,458 (2,980,945)
Total (A+B) 723,210,706 716,642,522 (2,980,946)
Annual Report 2021

362
Annexure-B
Unrealized
Sl. No. Company Name No of Share Cost per Cost of No of Share Market Price Market Value of Gain/Loss (Tk)
1 AMCL (Pran) 10,000 194.50 1,945,049 10,000 292.50 2,925,000 979,951

2 Apex Footwear Limited 18,900 209.01 3,950,324 18,900 268.10 5,067,090 1,116,766
3 Asia Pacific G. Ins. 411,457 69.65 28,656,702 411,457 68.50 28,184,805 (471,898)
4 Bashundhara Paper Mills Ltd. 184,836 45.52 8,413,648 184,836 43.10 7,966,432 (447,216)
5 BATBC 30,000 549.97 16,499,239 30,000 635.60 19,068,000 2,568,761
6 BBS Cables Ltd. 223,650 50.25 11,238,717 223,650 55.90 12,502,035 1,263,318
7 BDCOM Online Limited 277,963 24.67 6,857,929 277,963 22.50 6,254,156 (603,773)
8 Beximco Pharma 182,105 186.68 33,994,625 182,105 192.70 35,091,634 1,097,009
9 BGIC 195,000 59.65 11,632,679 195,000 54.20 10,569,000 (1,063,679)
10 Confidence Cement 154,883 122.37 18,953,765 154,883 121.90 18,880,280 (73,485)
11 Eastern Bank Limited 45,000 33.48 1,506,756 45,000 38.50 1,732,500 225,744
12 GPH ispat ltd. 36,920 54.18 2,000,151 36,920 53.00 1,956,760 (43,391)
13 Grameen MF-2 204,000 16.90 3,447,467 204,000 15.40 3,141,600 (305,867)
14 Green Delta Ins. 66,520 114.13 7,592,163 66,520 106.10 7,057,772 (534,391)
15 Hwa Well Textiles Ltd 309,130 46.30 14,313,626 309,130 42.10 13,014,373 (1,299,253)
16 ICB 100,000 110.25 11,024,979 100,000 123.90 12,390,000 1,365,021
17 IFIC Bank Limited 446,430 15.06 6,723,943 446,430 16.90 7,544,667 820,724
18 Jamuna Oil 10,000 166.01 1,660,133 10,000 171.10 1,711,000 50,867
19 LankaBangla Finance 105,000 39.18 4,113,834 105,000 37.30 3,916,500 (197,334)
20 M.L. Dyeing Limited 550,817 32.54 17,923,508 550,817 23.30 12,834,036 (5,089,472)
Unrealized
Sl. No. Company Name No of Share Cost per Cost of No of Share Market Price Market Value of Gain/Loss (Tk)
21 Matin Spinning Mills Limited 57,213 61.07 3,494,146 57,213 55.10 3,152,436 (341,710)
22 Meghna Petroleum Ltd. 160,000 198.67 31,786,537 160,000 196.80 31,488,000 (298,537)
23 MJL BD. Ltd. 27,915 82.13 2,292,708 27,915 88.30 2,464,895 172,186
Nahee Aluminum Composite
24 477,671 48.00 22,929,493 477,671 40.10 19,154,607 (3,774,886)
Panel Ltd.
25 National Polymar 95,172 63.73 6,065,465 95,172 50.20 4,777,634 (1,287,830)
26 Nitol Insurance 273,932 61.62 16,878,906 273,932 61.30 16,792,032 (86,874)
27 Olympic Industries 107,473 177.03 19,025,562 107,473 160.60 17,260,164 (1,765,398)
28 One Bank Limited 40,000 12.76 510,204 40,000 13.80 552,000 41,796
29 Padma Oil 2,524 205.41 518,458 2,524 212.50 536,350 17,892
30 Power Grid Co. 325,000 52.31 16,999,740 325,000 59.60 19,370,000 2,370,260
31 Rangpur Foundry 60,335 122.42 7,386,298 60,335 154.10 9,297,624 1,911,326
32 Renata Limited 10,230 961.83 9,839,507 10,230 1,312.00 13,421,760 3,582,253
34 Shasha Denims Limited 10,133 25.99 263,339 10,133 24.50 248,259 (15,080)
35 Square Pharma 78,000 206.21 16,084,484 78,000 214.30 16,715,400 630,916
36 Square Textile 40,610 52.47 2,130,708 40,610 52.20 2,119,842 (10,866)
37 United Insurance 85,689 71.66 6,140,130 85,689 65.70 5,629,767 (510,363)
39 Uttara Bank Ltd. 20,000 22.51 450,139 20,000 25.50 510,000 59,861
Sub Total (A) 391,794,384 389,891,638
B. Non Marginable Share :
Meghna Life Insurance 45,746 71.23 3258409.06 45,746 71 3,257,115.20 1,293.86
Sub Total (B) 3258409.06 3,257,115
Total 395,052,793 393,148,753.56
Grand Total (Portfolio 1, 3 and 4) 1,666,440,012 1,545,938,932
Annual Report 2021

SONALI BANK LIMITED

ISLAMIC BANKING WINDOW
Balance Sheet
2021 2020
Particulars Notes
Taka Taka
PROPERTY AND ASSETS
Cash
Cash in Hand 121,937,463.58 222,635,582.72
Balance with Central Bank and its agent Bank(s) 271,233,379.81 196,430,133.19
1.00 393,170,843.39 419,065,715.91
In Bangladesh 3,287,915,079.96 4,257,140,712.10
Outside Bangladesh - -
2.00 3,287,915,079.96 4,257,140,712.10
Money at Call on Short Notice 3.00 - -
Investments
Government 150,000,000.00 275,000,000.00
Sukuk 54,560,000.00 -
4.00 204,560,000.00 275,000,000.00
Loans and Advances
Loans, Cash Credit, Overdrafts, etc. 376,857,639.66 294,406,081.16
Bills Purchased and Discounted -
5.00 376,857,639.66 294,406,081.16
Fixed Asset including Premises, Furniture and Fixture 6.00 -
Other Assets 7.00 78,745,008.63 118,113,686.66
Non-Banking Assets 8.00 -
Total Assets 4,341,248,571.64 5,363,726,195.83
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 9.00 - -
Current Accounts & Other Accounts etc. 8,778,498.25 5,276,916.44
Bills Payable - -
Savings Bank Deposits 151,525,752.43 108,221,555.98
Fixed Deposits 3,399,415,542.70 4,508,031,106.49
Other Deposits 91,445,917.95 3,004,795.18
10.00 3,651,165,711.33 4,624,534,374.09
Other Liabilities 11.00 690,082,860.31 739,191,821.74
Total Liabilities 4,341,248,571.64 5,363,726,195.83
364
FINANCIAL STATEMENTS OF ISLAMIC BANKIING WINDOW
SONALI BANK LIMITED

Balance Sheet
2021 2020
Particulars Notes
Taka Taka
Shareholders' Equity:
Paid up Capital 12.00 - -
Statutory Reserve 13.00 - -
Other Reserve 14.00 - -
Revaluation Reserve 15.00 - -
Surplus in Profit and Loss Account/Retained Earnings 16.00 - -
Total Liabilities and Shareholders' Equity 4,341,248,571.64 5,363,726,195.83

Off-Balance Sheet Items
Letters of Guarantee - -
Irrevocable Letters of Credit - -
Bills for Collection - -
17.00 - -
Other Commitments
Undrawn formal standby facilities, credit lines and other commitments - -
Total Off Balance Sheet items including contingent liabilities - -
Net Asset Value (NAV) per Share - -
Annual Report 2021

SONALI BANK LIMITED

for the year ended 31 December 2021
2021 2020
Particulars Notes
Taka Taka
Operating Income
Interest income 18.00 226,855,436.22 293,506,461.66
Interest paid on deposit and borrowing etc. 19.00 146,144,425.73 191,275,356.90
Net Interest Income 80,711,010.49 102,231,104.76
Investment income 20.00 - -
Commission, exchange and brokerage 21.00 127,907.20 284,088.49
Other operating income 22.00 89,200.54 102,110.41
Total Operating Income (A) 80,928,118.23 102,617,303.66
Operating Expenses
Salary and allowances - -
Rent, tax, insurance, electricity etc. - -
Legal expenses - -
Postage, stamps and telecommunication etc. - -
Printings, stationery, advertisements etc. - -
Chief Executive's salary and fees - -
Directors' fees - -
Auditors' fees - -
Depreciation & repair to bank's assets - -
Other expenses - -
Total Operating Expenses (B) - -
Profit Before Provision, Amortization and Taxes C=(A-B) 80,928,118.23 102,617,303.66
Provision for loans & advances - -
Provision for diminution in value of investment - -
Other provision - -
Total Provision (D) - -
Total Profit/(Loss) before Taxes E=(C-D) 80,928,118.23 102,617,303.66
Provision for taxation (F)
Current tax - -
Deferred tax - -
Net Profit/(Loss) after Tax G=(E-F) - -
Appropriations
General Reserve - -
Statutory Reserve - -
Reserve for CSR - -
Dividend etc. - -
Retained Surplus Carried Forward - -
Earnings Per Share (EPS) - -
366
FINANCIAL STATEMENTS OF ISLAMIC BANKING WINDOW
Ref. Bank
Notes Particulars
Note 2021 2020
1.00 Cash
Cash in hand 1.01 121,937,463.58 222,635,583
Balance with Central Bank and its Agent Bank's 1.02 271,233,379.81 196,430,133
393,170,843.39 419,065,716
1.01 Cash In Hand
Local Currency 1.01.01 121,937,463.58 222,635,583
Foreign Currency 1.01.02 -
121,937,463.58 222,635,583
Cash in hand 121,937,463.58 222,635,583
Cash with ATM A/C -
121,937,463.58 222,635,583
Foreign Currency in hand - -
- -
1.02 Balance with Central Bank and its Agent Bank
Local Currency 271,233,379.81 196,430,133
Foreign Currency - -
271,233,379.81 196,430,133
In Bangladesh
Local Currency 3,287,915,079.96 4,257,140,712
- -
Bank Name
Social Islami Bank Ltd 1,662,822,734.46 2,600,111,032
Union Bank Ltd 1,155,540,118.61 1,217,490,783
Al Arafah Islami Bank Ltd 305,964,826.89 171,359,233
AB Bank Ltd 8,500,000.00 191,035,800
Islami Bank Bangladesh Ltd 83,700,000.00 57,143,863
Global Islami Bank Ltd 71,387,400.00 20,000,000
Total 3,287,915,079.96 4,257,140,712
3.00 Money at Call on Short Notice - -
4.00 Investments
Government Securities 4.01 150,000,000.00 275,000,000
Other Investments 4.02 54,560,000.00 -
Total 204,560,000.00 275,000,000
4.01 Government Securities
Treasury bills-Primary - -
Government Notes/Bonds/other securities 204,560,000.00 275,000,000
Prize Bond - -
Total Government Securities 204,560,000.00 275,000,000
Annual Report 2021

Ref. Bank
Notes Particulars
Note 2021 2020
Ordinary Share - -
Debentures of private sectors - -
Investment in foreign currency - -
Private Bond - -
Total Other Investments - -
Loans, cash credits and overdrafts 5.01 376,857,639.66 294,406,081
Bills purchased and discounted 5.02 - -
376,857,639.66 294,406,081
5.01 Loans and Advances (In and outside Bangladesh) including bills purchased and discounted
Inside Bangladesh 5.01.01 376,857,639.66 294,406,081

Outside Bangladesh 5.02.02 - -
- -
5.01.01 Inside Bangladesh
Loan 376,857,639.66 294,406,081
Cash Credit - -
Overdraft - -
Bills purchased and discounted - -
Loan - -
Cash Credit - -
Overdraft - -
Bills purchased and discounted - -
- -
5.01.01 Head-wise Loans, Cash Credits and Overdrafts:
Inside Bangladesh
Loans
Demand Loan - -
House Building Loan (General) - -
Staff Loan - -
Agricultural Loan - -
Small Business Loan - -
Lease Finance - -
Personal Loan(BI-Muajjal) 376,857,639.66 294,406,081
Term Loan to Banks & NBFIs - -
Forced Loan A/C-EDF - -
376,857,639.66 294,406,081
Demand Loan - -
Small Loan - -
Staff House Building Loan - -
- -
Total Loans - -
368
Ref. Bank
Notes Particulars
Note 2021 2020
(A) Cost
Premises - -
Building Constructions - -
Furniture - -
Electric Installation - -
Computer Software - -
Computer Hardware - -
Motor Car & Other Vehicle - -
Total Cost Value - -
Premises - -
Building - -
Furniture - -
Electric Installation - -
Total Accumulated Depreciation
Written down value (A-B) - -
7.00 Other Asset -
Inter Brance Transaction - -
Advance Rent, Advertisement etc. - -
Interest, Commission and Exchange Receivable 78,745,008.63 117,667,999
Prepaid Expenses - -
78,745,008.63 117,667,999
Non Income generating other assets
Stationery, Stamps and Printing Materials in hand - -
Branch Adjustment - -
Security Deposits - -
Advance Cover Funds - -
Advance deposit - -
Suspense A/C - -
Others - -
8.00 Non Banking Assets - -

In Bangladesh - -
Outside Bangladesh - -
- -
Current Deposit & Other Accounts 8,778,498.25 5,276,916
Bills Payable - -
Savings Deposits 151,525,752.43 108,221,556
Fixed Deposits 3,399,415,542.70 4,508,031,106
Other Deposits 91,445,917.95 3,004,795
3,651,165,711.33 4,624,534,374
Annual Report 2021

Ref. Bank
Notes Particulars
Note 2021 2020
10.01 Current Deposit & Other Accounts 8,778,498.25 5,276,916
10.02 Bills Payable
Payment Order - -
Foreign Draft/Travelers Cheque Issued A/c. - -
Foreign Draft Payable A/c. - -
- -
10.03 Savings Bank Deposits 151,525,752.43 108,221,556
10.04 Fixed Deposits 3,399,415,542.70 4,508,031,106
10.05 Other Deposits 91,445,917.95 3,004,795

Profit payable 54,613,034 -
Profit suspense 28,908 -
Compensation receivable 1,485,178 -
Duties & Tax 2,091,390 -
Profit receivable 49,480,309.97 -
Compensation realized 1,209,596.89 -
Others 581,174,443.44 -
690,082,860.30 -
Authorized Capital - -
12.00 Paid up Capital
- -
13.00 Statutory Reserve - -
14.00 Other Reserves - -
Revaluation of investment - -
Assets Revaluation Reserve - -
- -
Balance at the beginning of the period - -
Net Profit After Tax - -
Transfer to Statutory Reserve - -
Total Retained Surplus - -
Letters of guarantee - -
Bills for collection - -
- -
On Loan and Advances 21,071,780.89 22,834,608
On Balance with other banks and financial institutions 201,176,261.24 270,671,854
On Received from foreign banks - -
Others Interest income 244,147.47 386,199
222,492,189.60 293,892,661
370
Ref. Bank
Notes Particulars
Note 2021 2020
Interest on Deposits 146,144,425.73 191,275,357
Interest on Borrowings - -
Interest on Foreign Banks Account - -
Interest on others - -
146,144,425.73 191,275,357
Treasury Bills-Primary - -
Government Notes/Bonds/other securities 4,363,247 -
Interest on Treasury Bond - -
Private Bond - -
Interest on Reverse Repo - -
Dividend income & Others - -
- -
Commission 127,907.20 176,061
Exchange - 108,022
Sundries 89,200.54 102,110
89,200.54 102,110
Annual Report 2021

SONALI EXCHANGE
CO. INC.
Independent Auditors’ Report

To the Board of Directors and Stockholder of
Sonali Exchange Co. Inc.
We have audited the accompanying financial statements of financial statements. The procedures selected depend on
Sonali Exchange Co. Inc., a State of New York corporation, the auditor’s judgment, including the assessment of the
which comprise the balance sheet as of December 31, 2021 risks of material misstatement of the financial statements,
and 2020, and the related statements of income and cash whether due to fraud or error. In making those risk
flows for the years then ended, and the related notes to the assessments, the auditor considers internal control relevant
financial statements. to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that
Management’s Responsibility for the are appropriate in the circumstances, but not for the purpose
Financial Statements of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion.
Management is responsible for the preparation and fair
An audit also includes evaluating the appropriateness
presentation of these financial statements in accordance
of accounting policies used and the reasonableness of
with accounting principles generally accepted in the United
significant accounting estimates made by management, as
States of America; this includes the design, implementation,
and maintenance of internal control relevant to the well as evaluating the overall presentation of the financial
preparation and fair presentation of financial statements that statements.
are free from material misstatement, whether due to fraud or We believe that the audit evidence we have obtained is
error. sufficient and appropriate to provide a basis for our audit
opinion.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial
Opinion
statements based on our audits. We conducted our audits In our opinion, the financial statements referred to
in accordance with auditing standards generally accepted above present fairly, in all material respects, the financial
in the United States of America. Those standards require position
that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of Sonali Exchange Co. Inc. as of December 31, 2021 and
from material misstatement. 2020, and the results of its operations and its cash flows
for. years then ended in accordance accounting principles
An audit involves performing procedures to obtain audit generally accepted in the United States of America.
evidence about the amounts and disclosures in the
New York
February 01, 2022
372
FINANCIAL STATEMENTS OF SECI
SONALI EXCHANGE CO. INC.

Balance Sheet
Amount in USD
Particulars Notes
2021 2020
Property And Assets
Cash
Cash in Hand 15,05,855 15,10,832
Balance with Central Bank and its agent Bank(s) - -
1.00 15,05,855 15,10,832
In USA 19,54,599 31,30,829
Outside USA - -
2.00 19,54,599 31,30,829
Money at Call on Short Notice 3.00 - -
Investments
Government - -
Others - -
4.00
Loans and Advances
Loans, Cash Credit, Overdrafts, etc. - -
Bills Purchased and Discounted - -
5.00
Fixed Asset including Premises, Furniture and Fixture 6.00 8,862 10,127
Other Assets 7.00 3,18,252 91,918
Total Assets 37,87,568 47,43,706
Liabilities And Capital
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 9.00 5,04,000 8,16,200
Deposit and Other Accounts 10.00 - -

Current Accounts & Other Accounts etc. - -
Bills Payable - -
Savings Bank Deposits - -
Fixed Deposits - -
Other Deposits - -
Other Liabilities 11.00 11,91,698 28,71,535
Total Liabilities 16,95,698 36,87,735
Shareholders' Equity
Paid up Capital 12.00 9,59,500 9,50,000
Statutory Reserve 13.00 - -
Other Reserve 14.00 - -
Revaluation Reserve 15.00 - -
Surplus in Profit and Loss Account/Retained Earnings 16.00 11,32,370 1,05,971
Total Liabilities and Shareholders' Equity 37,87,568 47,43,706
Anowar Hossain, CPA Devasree Mitra

New York, NY President & CEO
Annual Report 2021


Balance Sheet
Amount in USD
Particulars Notes
2021 2020
Off-Balance Sheet Items
Letters of Guarantee - -
Bills for Collection - -
17.00 - -
Other Commitments
Undrawn format standby racrities, creadit lines and other commitments - -
Total Off Balance Sheet items including contingent liabilities - -
Net Asset Value (NAV) per Share 218.02 111.15

374

Amount in USD
Particulars Notes
2021 2020
Operating Income
Interest income 18.00 13,350 28,406
Interest paid on deposit and borrowing etc. 19.00 6,580 8,120
Net Interest Income 6,770 20,286
Investment income 20.00 - -
Commission, exchange and brokerage 21.00 33,89,499 23,36,345
Other operating income 22.00 1,58,200 -
Total Operating Income (A) 35,54,469 23,56,631
Operating Expenses
Salary and allowances 23.00 8,12,904 7,77,809
Rent, tax, insurance, electricity etc. 24.00 5,42,944 4,99,426
Legal expenses 25.00 1,71,505 31,000
Postage, stamps and telecommunication etc. 26.00 56,731 59,192
Printings, stationery, advertisements etc. 27.00 98,289 67,446
Chief Executive's salary and fees 28.00 62,727 75,199
Directors' fees 29.00 5,250 6,000
Auditors' fees 30.00 24,000 26,000
Depreciation & repair to bank's assets 31.00 5,380 9,993
Other expenses 32.00 6,39,937 5,73,484
Total Operating Expenses (B) 24,19,666 21,25,548
Profit Before Provision, Amortization and Taxes C=(A-B)
Provision for loans & advances 33.00 - -
Provision for diminution in value of investment 34.00 - -
Other provision 35.00 - -
Total Provision (D) - -
Total Profit/(Loss) before Taxes E=(C-D) 11,34,803 2,31,083
Provision for taxation
Current tax 98,904 7,062
Deferred tax - -
Total Provision for Taxation (F) 98,904 7,062
Net Profit/(Loss) after Tax G=(E-F) 10,35,899 2,24,021
Appropriations
General Reserve - -
Statutory Reserve - -
Reserve for CSR - -
Dividend etc. - -
Retained Surplus Carried Forward 10,35,899 2,24,021
Earnings Per Share (EPS) 37.00 107.96 23.58

Annual Report 2021


Cash Flow Statement
Amount in USD
Particulars Notes
2021 2020
Interest received 13,350 28,406
Interest paid (6,580) (8,120)
Dividend Received - -
Fee and commission and exchange received 33,89,499 23,36,261
Recoveries of previously written-off loan & advances - -
Cash paid to employees (8,07,162) -
Cash paid to Suppliers - -
Income taxes paid (98,904) 7,062
Cash received from other operating activities 1,58,200 85
Cash paid for other operating activities (16,07,130) (21,39,672)
Cash generated from operating activities 10,41,273 2,24,022
Increase/(decrease) in operating assets and liabilities
Loans & advances to customers (1,58,200) -
Other assets (19,01,405) 1,15,759
Deposits from other banks - -
Deposits from customers (1,07,600) -
Other liabilities 1,00,334 11,53,330
Net cash flow from operating activities (10,25,598) 14,93,111
(Purchase)/Sale of securities & bond (4,109) -
(Purchase)/sale of fixed assets 2,500 (22,264)
Net cash (used in)/flow from investing activities (1,609) (22,264)
Payments for redemption of loan capital & debt security (1,54,000) (1,54,000)
Dividends paid - -
Net cash (used in)/flow from financing activities (1,54,000) (1,54,000)
D. Net (decrease)/increase in cash and cash equivalents (A+B+C) (11,81,207) 13,16,847
E. Cash and cash-equivalents at beginning of the year 46,41,661 33,24,814
F. Cash and cash-equivalents at end of the year 36.00 34,60,454 46,41,661

376
(Amount in USD)
Statutory Other Asset Revaluation Revaluation of Retained

Particulars Paid up Capital Total Equity
Reserve Reserve Reserve Investment Earnings
Balance as at 01 January 2021 9,50,000 - - - - 1,05,971 1,055,971
Surplus/deficit on account of revaluation of - - - - - - -

HTM, HFT and Remeasured Securities (RMS)
Net Profit for the year (after appropriation) - - - - - 10,35,899 10,35,899
Share money transferred to paid up capital 9,500 - - - - - 9,500
Transferred to Statutory Reserve - - - - - (9,500) (9,500)
Balance as at 31 December 2021 9,59,500 - - - - 11,32,370 20,91,870

Annual Report 2021

378
Annexure -A

Sl.
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11=(5-10) 12

1 Furniture & Fixture 1,35,199 - - 1,35,199 - 1,34,248 637 - 1,34,885 313 951
2 Computer & Accessories 1,75,394 4,115 - 1,79,509 - 1,72,339 1,682 - 1,74,021 5,488 3,055
3 Motor Vehicle - - - - - - - - - - -
4 Office Equipment 88,059 - - 88,059 - 88,059 - - 88,059 - -

Air Conditioner &
5 20,350 - - 20,350 - 20,350 - - 20,350 - -
Generator
6 Application of Software - - - - - - - - - - -
7 Interior Decoration 2,88,118 - - 2,88,118 - 2,81,997 3,060 - 2,85,057 3,061 6,120
Total Assets 7,07,120 4,115 - 7,11,235 - 6,96,993 5,379 - 7,02,373 8,862 10,126
* Rate of Depreciation is determined as per IRS guidelines (Item wise straight line basis).

Bank
Particulars Notes
2021 2020
1.00 Cash
Cash in hand 1.01 15,05,855 15,10,832
Balance with Central Bank and its Agent Bank's 1.02 - -
15,05,855 15,10,832
1.01 Cash In Hand
Local Currency (USD) 1.01.01 15,05,855 15,10,832
Foreign Currency 1.01.02 - -
15,05,855 15,10,832
1.01.01 Local Currency (USD)
Cash in hand 15,05,855 15,10,832
Cash with ATM A/C - -
15,05,855 15,10,832
Foreign Currency in hand - -
Local Currency - -
In USA
Local Currency 19,54,599 31,30,829
19,54,599 31,30,829
Bank Name
HAB Bank 17,45,986 29,22,216
Metro City Bank 2,08,613 2,08,613
Total 19,54,599 31,30,829
3.00 Money at Call on Short Notice - -
4.00 Investments
Government Securities 4.01 - -
Other Investments 4.02 - -
Total - -

Loans, cash credits and overdrafts 5.01 - -
Bills purchased and discounted 5.02 - -
(A) Cost
Premises - -
Leasehold Improvement 2,88,118 2,88,118
Furniture & Fixture 1,35,199 1,35,199
Security System 20,350 20,350
Organizational Cost 88,059 88,059
Machinery & Equipment 1,79,503 1,75,394
Total Cost Value 7,11,229 7,07,120
Annual Report 2021

Bank
Particulars Notes
2021 2020

Premises - -
Leasehold Improvement 2,85,057 2,81,997
Furniture & Fixture 1,34,884 1,34,248
Security System 20,350 20,350
Organizational Cost 88,059 88,059
Machinery & Equipment 1,74,017 1,72,339
Total Accumulated Depreciation 7,02,367 6,96,993
Written down value (A-B) 8,862 10,127
7.00 Other Asset
Investment in Shares - -
Advance Rent, Advertisement etc. - -
Interest, Commission and Exchange Receivable - -
Prepaid Expenses - -
Stationery, Stamps and Printing Materials in hand - -
Branch Adjustment - -
Security Deposits 88,018 90,518
Advance Cover Funds - -
Advance deposit - -
Suspense A/C - -
Others 2,30,234 1,400
3,18,252 91,918
8.00 Non Banking Assets
In USA - 1,58,200
Outside USA 5,04,000 6,58,000
5,04,000.00 8,16,200.00
Current Deposit & Other Accounts - -
Bills Payable - -
Savings Deposits - -
Fixed Deposits - -
Other Deposits - -
Security Deposit (Premises Sub lease) 1,300 1,400
Cover Funds - 18,71,988
Remittance Liabilities to Remitters 8,56,823 9,64,423
Payroll Tax Liabilities 13,370 14,078
Others 3,20,205.00 19,646
11,91,698.00 28,71,535
Authorized Capital 10,00,000 10,00,000
12.00 Paid up Capital 9,59,500 9,50,000
- -
380
Bank
Particulars Notes
2021 2020
13.00 Statutory Reserve
14.00 Other Reserves
Revaluation of investment - -
Assets Revaluation Reserve - -
16.00 Retained Earnings 1,05,971 (1,18,050)
Balance at the beginning of the period
Net Profit After Tax 10,35,899 2,24,022
Transfer to Statutory Reserve 9,500 -
Total Retained Surplus 11,32,370 1,05,971
Letters of guarantee - -
Bills for collection - -
18.00 Interest Income - -
On Loan and Advances - -
On Balance with other banks and financial institutions - 28,406
On Received from foreign banks - -
Others Interest income 13,350 -
13,350 28,406
Interest on Deposits - -
Interest on Borrowings 6,580 8,120
Interest on Foreign Banks Account - -
Interest on others - -
6,580 8,120
Treasury Bills-Primary - -
Government Notes/Bands/other securities - -
Interest on Treasury Bond - -
Private Bond - -
Interest on Reverse Repo - -
Dividend income & Others - -
Commission 7,35,414 4,82,768
Exchange 26,54,085 18,53,493
33,89,499 23,36,261
Sundries 1,58,200 85
- -
23.00 Salary & Allowances
Salaries (Basic Pay, House Rent & Other Allowance) 8,12,904 7,77,809
Contribution to Pension & Gratuity Fund - -
Bank's contribution to provident fund - -
Medical Allowance - -
Festival Bonus - -
Recreation Expense - -
Bangla Nabobarsho Allowance - -
Salaries and allowances of Indian operation - -
8,12,904 7,77,809
Annual Report 2021

Bank
Particulars Notes
2021 2020
Rent 4,02,129 3,51,277
Taxes 439 769
Service Charge of premises - -
Insurance 1,12,948 1,20,567
Power and electricity 27,428 26,812
5,42,944 4,99,426
Law charges 1,71,505 31,000
Other Legal Expenses - -
1,71,505 31,000
Postage 56,731 4,391
Court Fees and Stamps - -
Telephone - 54,800
56,731 59,191
27.00 Printing, Stationery, Advertisement, etc.
Stationery 98,289 26,789
Printing - 11,446
Advertisement - 29,210
98,289 67,446
28.00 Chief executive's salary and fees
Chief executive's salary and fees 62,727 75,199
62,727 75,199
29.00 Directors' Fees & Honorium
Directors' fees & Honorium 5,250 5,250
5,250 5,250
30.00 Auditors' fees
Statutory Audit fee 24,000 26,000
24,000 26,000
31.00 Depredation and Repairs at Bank's Assets
Depredation:
Premises - -
Leasehold Improvement 3,060 8,073
Sub-total 3,060 8,073
B) Dead stock
Furniture 638 637
Machinery & Equipment 1,682 1,283
Type Writer Machine - -
Library - -
Sub-total 2,320 1,920
Depreciation of Indian operation -
Sub-total - -
Repairs:
Repairs to Bank's Assets - -
Sub-total - -
Total 5,380 9,993
382
Bank
Particulars Notes
2021 2020
Maintenance 74,031 84,227
Bank Charge 3,06,705 1,89,721
Business Losses 240 160
Cash Carrying 1,31,048 50,551
Licensing Expenses 32,637 33,716
Entertainment 1,204 713
Compliance 12,039 56,749
Traveling Expenses 4,498 46,453
Business Development 19,500 35,155
Office Expenses 22,848 39,863
Outsource Services 26,964 25,373
Security Services 8,223 10,804
Total 6,39,937 5,73,484
Provision for Classified Loans & Advances - -
Provision for Unclassified Loans and Advances - -
34.00 Provision for diminution in value of investment
Dealing securities
Quoted - -
Unquoted - -
Investment securities
Quoted - -
Unquoted - -
Debenture (Public and Private) - -
35.00 Other provisions
Provision for Other Assets - -
Provision which no more Required against Off Balance Sheet - -
Provision for Unforeseen Losses - -
Provision for Bonus - -
36.00 Cash and cash equivalents
Cash in hand 15,05,855 15,10,832
Cash at Bank 19,54,599 31,30,829
Balance with Bangladesh Bank - -
Money at call on short notice - -
Balance held with other bank - -
Prize bonds in hand - -
34,60,454 46,41,661
37.00 Earnings per Share (EPS)
Net profit after tax 10,35,899 2,24,021
Number of ordinary shares outstanding 9,595 9,500
Earnings per share (EPS) 107.96 23.58
Annual Report 2021

FINANCIAL
STATEMENTS OF
†mvbvjx e¨vsK (BD †K)
SONALI BANK (UK)
SONALI BANK (UK)
LIMITED
Balance Sheet
2021
Particulars Note
GBP
PROPERTY AND ASSETS
Cash
Cash in Hand 13,089
Balance with Central Bank and its agent Bank(s) -
1.00 13,089
In UK 3,339,926
Outside UK -
2.00 3,339,926
Money at Call on Short Notice 3.00 5,220,008
Investments
Government 10,952,470
Others -
4.0 10,952,470
Loans and Advances
Loans, Cash Credit, Overdrafts, etc. 17,812,027
Bills Purchased and Discounted 125,471,705
5.0 143,283,732
Fixed Asset including Premises, Furniture and Fixture 6.0 1,177,352
Other Assets 7.0 671,935
Non-Banking Assets 8.0 -
Total Assets 164,658,512
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 9.0 -
Current Accounts & Other Accounts etc. -
Bills Payable -
Savings Bank Deposits 101,306,959
Fixed Deposits -
Other Deposits -
10.0 101,306,959
Other Liabilities 11.0 781,522
Total Liabilities 102,088,481
Shareholders’ Equity
Paid up Capital 12.0 61,463,800
Statutory Reserve 13.0 -
Other Reserve 14.0 1,677,620
Revaluation Reserve 15.0 -
Surplus in Profit and Loss Account/Retained Earnings 16.0 (571,389)
62,570,031
Total Liabilities and Shareholders’ Equity 164,658,512
Chief Financial Officer, SBUK

23 March 2022
384
FINANCIAL STATEMENTS OF SB (UK) LTD.

for the year ended 31 December 2021
2021
Particulars Note
GBP
Operating Income
Interest income 17.0 3,423,737
Interest paid on deposit and borrowing etc. 18.0 906,480
Net Interest Income 2,517,257
Investment income 19.0 -
Commission, exchange and brokerage 20.0 1,019,196
Other operating income 21.0 361,908
Total Operating Income (A) 3,898,361
Operating Expenses
Salary and allowances 22.0 1,982,266
Rent, tax, insurance, electricity etc. 23.0 116,659
Legal expenses 24.0 957,228
Postage, stamps and telecommunication etc. 25.0 19,012
Printings, stationery, advertisements etc. 26.0 1,771
Chief Executive’s salary and fees 27.0 -
Directors’ fees 28.0 133,000
Auditors’ fees 29.0 303,675
Depreciation & repair to bank’s assets 30.0 110,468
Other expenses 31.0 944,506
Total Operating Expenses (B) 4,568,585
Profit Before Provision, Amortization and Taxes C=(A-B) (670,224)
Provision for loans & advances 32.0 33,612
Provision for diminution in value of investment 33.0 -
Other provision 34.0 -
Total Provision (D) 33,612
Total Profit/(Loss) before Taxes E=(C-D) (703,836)
Provision for taxation (F) (132,447)
Current tax (132,447)
Deferred tax -
Net Profit/(Loss) after Tax G=(E-F) (571,389)
Appropriations
General Reserve -
Statutory Reserve -
Reserve for CSR -
Dividend etc. -
Retained Surplus Carried Forward (571,389)

23 March 2022
Annual Report 2021

386
(Amount in GBP)
Asset Revaluation
Paid up Statutory Other Retained
Particulars Revaluation of Total Equity
Capital Reserve Reserve Earnings
Reserve Investment
Balance as at 01 January 2021 61,463,800 - - - - 1,677,620 63,141,420
Adjustment of deferred tax - - - - - - -

Restated balance as at 01 January 2016 61,463,800 - - - - 1,677,620 63,141,420
Surplus/deficit on account of revaluation of HTM, HFT and - - - - - - -

Currency translation differences - - - - - - -
Net Profit for the year (after appropriation) - - - - - (571,389) (571,389)
Share money transferred to paid up capital - - - - - -
Transferred to Statutory Reserve - - - - - - -

23 March 2022
Annexure -A

Sl.
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11=(5-10) 12
1 Freehold land & buildings 19,31,232 1,41,180 - 20,72,412 - 9,03,170 57,324 - 9,60,494 11,11,918 10,28,062
2 Furniture & Fixture 4,19,332 - - 4,19,332 - 4,11,177 2,358 - 4,13,535 5,797 8,155
3 Computer & Accessories 3,68,294 - - 3,68,294 - 3,54,950 5,129 - 3,60,079 8,215 13,344
4 Right of use 2,85,737 - - 2,85,737 - 2,48,264 18,737 - 2,67,001 18,736 37,473
5 Air Conditioner & Generator - - - - - - - - - - -
6 Application of Software 80,761 - - 80,761 - 21,154 26,920 - 48,074 32,687 59,607
7 Interior Decoration - - - - - - - - - - -
Total Assets 30,85,356 1,41,180 - 32,26,536 - 19,38,715 1,10,468 - 20,49,183 11,77,353 11,46,641

23 March 2022
Annual Report 2021

Ref. Bank
Notes Particulars
Note 2021
1.0 Cash
Cash in hand 1.01 13,089
Balance with Central Bank and its Agent Bank’s 1.02 -
13,089
1.01 Cash In Hand
Local Currency 1.01.01 -
Foreign Currency 1.01.02 13,089
13,089
Cash in hand -
Cash with ATM A/C -
-
Foreign Currency in hand 13,089
13,089
Local Currency -
Foreign Currency -
-
Local Currency -
Foreign Currency 3,339,926
3,339,926
Bank Balance Sterling 788,088
Bank Balance Other Currencies 2,551,838
Total 3,339,926
3.00 Money at Call on Short Notice
Designated Money Market 5,220,008
Total 5,220,008
4.0 Investments
Government Securities 4.01 10,952,470
Other Investments 4.02 -
Total 10,952,470
4.01 Government Securities
Government Securities HQLA 6,902,896
Bonds Investment of HTM 4,049,574
Total Government Securities 10,952,470
Ordinary Share -
Debentures of private sectors -
Investment in foreign currency -
Private Bond -
Total Other Investments -
5.0 Loans and Bills
Loans and Advances 5.0 17,812,027
Bills purchased and discounted 5.0 125,471,705
143,283,732
388
Ref. Bank
Notes Particulars
Note 2021
Demand Loan -
House Building Loan (General) -
Staff Loan 669
Agricultural Loan -
Small Business Loan -
Personal Loan -
Term Loan to Banks & NBFIs 17,811,358
5.02 Bills purchased and discounted
Bills purchased and discounted 125,471,705
125,471,705
Total Loans -
Written down value
Land & Buildings 1,111,919
Others 65,433
Total 1,177,352
7.00 Other Asset
Investment in Shares -
Advance Rent, Advertisement etc. -
Interest, Commission and Exchange Receivable -
Prepaid Expenses 671,935
671,935
Stationery, Stamps and Printing Materials in hand -
Branch Adjustment -
Suspense A/C -
Others -
-
671,935
7.01 Prepaid Expenses
Rent -
Sundries 671,935
671,935
8.00 Non Banking Assets -
In UK -
Outside UK -
-
Current Deposit & Other Accounts -
Bills Payable -
Savings Deposits 101,306,959
Fixed Deposits -
Other Deposits -
101,306,959
Provision for Classified loans -
Provision for Un-Classified loans -
Interest Suspense -
Provision for Income Tax -
Provision for Bonus -
Derivative 89,181
Others 692,341
781,522
Annual Report 2021

Ref. Bank
Notes Particulars
Note 2021
12.00 Paid up Capital 61,463,800
61,463,800
13.00 Statutory Reserve -
14.00 Other Reserves 1,677,620

1,677,620
Revaluation of investment -
Assets Revaluation Reserve -
-
Balance at the beginning of the period -
Net Profit After Tax (571,389)
Transfer to Statutory Reserve -
Total Retained Surplus (571,389)
On Loan and Advances 3,423,737
On Balance with other banks and financial institutions -
On Received from foreign banks -
Others Interest income -
3,423,737
Interest on Deposits 875,700
Interest on Borrowings -
Interest on Foreign Banks Account -
Interest on others 30,780
906,480
Treasury Bills-Primary -
Government Notes/Bonds/other securities -
Interest on Treasury Bond -
Debentures of private sectors -
Investment in foreign currency -
Private Bond -
Interest on Reverse Repo -
Dividend income & Others -
-
Commission 931,190
Exchange 88,006
1,019,196
Sundries 361,908
361,908
390
Ref. Bank
Notes Particulars
Note 2021
22.00 Salary & Allowances
Salaries (Basic Pay, House Rent & Other Allowance) 1,982,266
Contribution to Pension & Gratuity Fund -
Bank’s contribution to provident fund -
Medical Allowance -
Festival Bonus -
Recreation Expense -
Bangla Nabobarsho Allowance -
Salaries and allowances of Indian operation -
1,982,266
Rent (5,336)
Taxes -
Service Charge of premises -
Insurance 93,421
Power and electricity 28,574
116,659
Law charges 955,207
Other Legal Expenses 2,021
957,228
Postage 4,421
Court Fees and Stamps -
Telephone 14,591
19,012
26.00 Printing, Stationery, Advertisement, etc. -
Stationery -
Printing 1,771
Advertisement -
1,771
27.00 Chief executive’s salary and fees
Chief executive’s salary and fees -
-
28.00 Directors’ Fees & Honorium
Directors’ fees & Honorium 133,000
133,000
29.00 Auditors’ fees
Statutory Audit fee 303,675
303,675
30.00 Depreciation and Repairs at Bank’s Assets
Depreciation:
Land and Building 110,468
Sub-total 110,468
Annual Report 2021

Ref. Bank
Notes Particulars
Note 2021
B) Dead stock
Furniture -
Electric Installation -
Computer Software -
Computer Hardware -
Type Writer Machine -
Motor Car & Other Vehicle -
Library -
Sub-total -
Depreciation of Indian operation -
Sub-total -
110,468
Repairs:
Repairs to Bank’s Assets -
Sub-total -
Total 110,468
Repairs to Rented Property -
Books and News Paper -
Pay of Police guards. 13,749
Motor Car Maintenance 30,477
Hired Transport -
Entertainment 1,028
Conveyance -
Traveling Expenses (916)
Operating Lease Payments 4,968
Bank Charge 182,303
Subscription 4,725
Rates 76,827
Service Charge 55,954
Computer Software Repairs & Maintenance 419,902
Office Cleaning 26,068
Training Expenses 4,573
Business Development 40,036
Board Department 2,294
Generator Maintenance -
Recruitment 19,330
Redundancy 63,190
944,506
Provision for Classified Loans & Advances 33,612
Provision for Unclassified Loans and Advances -
33,612
392
ADDITIONAL INFORMATION
DOMESTIC BRANCHES
Sl. CORPORATE BRANCHES 13 REGISTRATION COMPLEX
1 LOCAL OFFICE, DHAKA 14 NCTB
2 BANGABANDHU AVENUE CORP., DHAKA 15 BANGO BHABAN
3 RAMNA CORP., DHAKA 16 RAJUK BHABAN
4 WAGE EARNERS’ CORP., DHAKA 17 KRISHI BHABAN
5 SHILPA BHABAN CORP., DHAKA 18 NAGAR BHABAN
6 DILKUSHA CORP., DHAKA 19 KAKRAIL
7 FOREIGN EXCHANGE CORP., DHAKA 20 SEGUN BAGICHA
8 B-WAPDA BHABAN CORP., DHAKA 21 SONARGAON ROAD
9 SADARGHAT CORP., DHAKA 22 SUPREME COURT
10 DHAKA CANTT. CORP., DHAKA PRINCIPAL OFFICE : DHAKA SOUTH
11 DU CAMPUS CORP., DHAKA 1 AGLA
12 HOTEL SHERATON CORP., DHAKA 2 ARMANITOLA
13 DHANMONDI CORP., DHAKA 3 ATIBAZAR
14 PM OFFICE CAORP., DHAKA 4 BABUBAZAR
15 CHAWKBAZAR CORP., DHAKA 5 CHURAIN
16 NARAYANGONJ CORP., NARAYANGONJ 6 D.C.HALL
17 MYMENSINGH CORP., MYMENSINGH 7 DISTILARY ROAD
18 AGRABAD CORP., CHITTAGONG 8 FARASHGANJ
19 LALDIGHI CORP., CHITTAGONG 9 JOYPARA
20 WAGE EARNERS’ CORP., CHITTAGONG 10 KALAKOPA
21 COMILLA CORP., COMILLA 11 KALATIA
22 KHULNA CORP., KHULNA 12 KERANIGANJ
23 DOULATPUR CORP., KHULNA 13 MITFORD ROAD
24 JESSORE CORP., JESSORE 14 LAXMI BAZAR
25 RAJSHAHI CORP., RAJSHAHI 15 NAWABGANJ
26 BOGRA CORP., BOGRA 16 NAYABAZAR
27 RANGPUR CORP., RANGPUR 17 NAZIRABAZAR
28 DINAJPUR CORP., DINAJPUR 18 PALAMGANJ
29 BARISAL CORP., BARISAL 19 POSTAGOLA
30 SYLHET CORP., SYLHET 20 RUHITPUR
31 DARGAGATE CORP., SYLHET 21 NAZIM UDDIN ROAD
32 FARIDPUR CORP., FARIDPUR 22 RASULPUR BAZAR
GENERAL MANAGER’S OFFICE 23 NORTH SOUTH SARAK
DHAKA-1 24 PANGAON ICT BR.
PRINCIPAL OFFICE : BANGABANDHU DHAKA CENTRAL
PRINCIPAL OFFICE: NARSHINGDI
1 BAITUL MOKKARRAM
1 BELABOO
2 BANANI
2 DANGA
3 BANANI BAZAR
3 GHORASAL
4 BARIDHARA
4 GORADIA
5 BANGA BANDHU JATIO STADIUM
5 MADHABDI
6 FARMGATE
6 MONOHARDI
Sl. NAME OF BRANCH
7 NARAYANPUR BAZAR
7 GULSHAN
8 NARSINGDI
8 GULSHAN NEW NORTH CIRCLE
9 PALASH
9 KAWRAN BAZAR
10 PANCHDONA
10 MOHAKHALI
11 PUTIA
11 SONARGAON HOTEL
12 RAIPURA
12 TEJGAON INDUSTIAL AREA
13 RAMPUR BAZAR
Annual Report 2021

14 SAIDABAD 12 BASHABO
15 SATIRPARA 13 KAMALAPUR RAILWAY STATION ICD
16 SHIBPUR 14 SAIDABAD BUS TERMINAL
17 BHAKHAN NAGAR 15 AWLAD HOSSAIN MARKET
18 COURT BUILDING 16 VIKARUNNISSA NOON SCHOOL
19 BELTALI BAZAR 17 ISHWAR CH.STREET
20 PORADIA BAZAR 18 NOWABPUR ROAD
21 HATIRDIA BAZAR 19 WARI
PRINCIPAL OFFICE: GAZIPUR PRINCIPAL OFFICE: DHAKA WEST
1 STATION ROAD 1 PUBLIC SERVICE COMMISSION
2 BSIC INDUSTRIAL AREA 2 GANA BHABAN
3 TONGI 3 GREEN ROAD
4 TONGI BAZAR 4 KALLYANPUR
5 B.A.R.I. 5 MANIK MIAH AVENUE
6 B.R.R.I 6 COLLEGE GATE
7 BHAWAL JAMALPUR 7 B.I.S.E.
8 BOF GAZIPUR CANTONMENT 8 B.M.E.B.
9 GAZIPUR COURT BUILDING 9 B.U.E.T.
10 JOYDEVPUR 10 NEW MARKET
11 KALIAKOIR 11 JHIKATALA
12 KALIGANJ Sl. NAME OF BRANCH
13 KAPASIA 12 LALMATIA
14 PUBAIL BAZAR 13 MOHAMMADPUR BAZAR
15 RAJENDRAPUR CANTONMENT 14 JATIO SANGSHAD BHABAN
16 BARMI BAZAR 15 SATMASJID ROAD
17 SREEPUR THANA HEAD QUARTER 16 BAJME KADERIA COMPLEX
18 GAZIPUR SADAR UPAZILLA COMPLEX 17 AGARGAON
19 SHAFIPUR ANSAR ACADEMY COMPLEX 18 AGRANI BALIKA BIDYALAYA
20 SINGSREE BAZAR 19 HAZARIBAG BRANCH
21 JATIO BISWABIDDALAYA 20 KRISHI BAZAR
22 B.B.SK.MUJIB KRISHI BISWABIDDALAYA 21 LALBAG ROAD (DHAKA)
REGIONAL OFFICE: MANIKGONJ 22 MOKIMKATRA
1 BALIRTEK BAZAR 23 URDU ROAD
2 DARGRAM PRINCIPAL OFFICE: MIRPUR
3 DAULATPUR 1 KURMITOLA
4 GHIOR 2 NEVAL HEAD QUARTER
5 HARIRAMPUR 3 UTTARA MODEL TOWN
6 MANIKGANJ 4 SHAHJALAL INTERNATIONAL AIRPORT
7 MANIKGANJ UPAZILLA 5 IBRAHIMPUR
8 SATURIA 6 CUSTOM HOUSE BRANCH,KURMITOLA
9 SHIVALAYA 7 UTTARKHAN BRANCH
10 SINGAIR 8 ASHULIA BAZAR BR.
11 CHANDAHAR 9 AMIN BAZAR
GENERAL MANAGER’S OFFICE 10 DHAMRAI
DHAKA-2
11 MIRPUR SECTION-1
PRINCIPAL OFFICE: DHAKA EAST
12 NAYARHAT
1 BADDAH
13 PATC (SAVAR)
2 MOGH BAZAR
14 KALAMPUR BAZAR
3 BAWANINAGAR
15 MIRPUR CANTONMENT
4 DAYAGONJ
16 MIRPUR SECTION-12
5 FAKIRAPOOL
17 SAVAR
6 GORAN
18 SAVAR CANTONMENT
7 JATRABARI
19 BEGUM ROKEYA SHARANI
8 KHILGAON
20 MIRPUR SHILPA ELAKA
9 MALIBAGH
21 DHAKA RAPTANI PRAKRIAKARAN ALAKHA
10 RAMPURA
11 SHAHJAHANPUR
394
PRINCIPAL OFFICE: NARAYANGONJ Sl. NAME OF BRANCH

1 ARAIHAZAR 16 NANDAIL
2 GODNAIL 17 PADURBARI
3 FATULLAH 18 PHULPUR
4 DHARMAGANJ 19 BINA
5 DHUPTARA 20 SHIBGONJ
6 GOPALDI BAZAR 21 TARERGHAT
7 KURIPARA 22 TRISHAL
8 LADIES BRANCH 23 DOBAURA
9 MADANGANJ 24 TARAKANDA
Sl. NAME OF BRANCH 25 JATIO KOBI KAZI NAZRUL ISLAM UNI.
10 MUGRAPARA PRINCIPAL OFFICE : JAMALPUR
11 NABIGANJ 1 BAKSHIGONJ
12 NARAYANGANJ DOCK YARD 2 BSCI INDUSTRIAL ESTATE
13 NETAIGANJ 3 CHAPARKONA
14 PUNCHRUKHI 4 DEWANGONJ BAZAR
15 RUPGANJ 5 DEWANGONJ SUGAR MILL
16 SONARGAON 6 HAZRABARI
17 TARABOO BAZAR 7 ISLAMPUR
18 BANDAR BRANCH 8 JAMALPUR
PRINCIPAL OFFICE: MUNSHIGONJ 9 JAMALPUR BAZAR
1 BALURCHAR 10 BARO MASJID ROAD
2 BASAIL 11 MADERGONJ
3 BHABERCHAR 12 MEDICAL ROAD
4 DIGHOLI BAZAR 13 MELANDAH
5 GAZARIA 14 NANDINA
6 MAWYA 15 SANANDABARI
7 HALDIA BAZAR 16 SHARISHABARI
8 KEYAIN 17 SHARISHABARI THANA HEAD QUARTER
9 MUNSHIGANJ 18 SREEPUR KUMARIA BAZAR
10 REKABIBAZAR 19 JAMUNA SAR KARKHANA
11 SHEKHAR NAGAR PRINCIPAL OFFICE: KISHORGONJ
12 SIRAJDEE KHAN 1 AUSTAGRAM
13 SREE NAGAR 2 BAJITPUR
14 SYEDPUR 3 BHAIRAB
15 TALTALA 4 CHAYSHUTI
16 TONGIBARI 5 DOMRAKANDA
17 SUKHBASHPUR 6 HOSSAINPUR
18 DAMLA 7 ITNA
GENERAL MANAGER’S OFFICE 8 KALIACHAPRA
MYMENSINGH
9 KARIMGONJ
PRINCIPAL OFFICE : MYMENSINGH
10 KATIADI
1 MATHSHA GABESHANA INSTITUTE
11 KISHOREGONJ
2 ASIM BAZAR
12 KULIARCHAR
3 BALIA BAZAR
13 MITAMAIN
4 BHALUKA
14 NIAMATPUR
5 CHAR NILOKHIA
Sl. NAME OF BRANCH
6 FULBARIA
15 NIKLY
7 GAFFARGAON
16 PAKUNDIA
8 GAYESPUR
17 TARAIL
9 GOURIPUR
18 STATION ROAD
10 HALUAGHAT
PRINCIPAL OFFICE : TANGAIL
11 ISWARGONJ
1 BARATI BAZAR
12 KESHORGONJ BAZAR
2 BASHAIL
13 MUKTAGACHA
3 BHUAPUR
14 MYMENSINGH
4 DELDUAR
15 MYMENSINGH BUSINESS CENTRE
Annual Report 2021

5 DHANBARI GENERAL MANAGER’S OFFICE

FARIDPUR
6 DIST. HEAD QUARTER
PRINCIPAL OFFICE : FARIDPUR
7 FALDA BAZAR
1 ALFADANGA
8 GHATAIL
2 BHANGA
9 GOBINDASHI
3 BISWA ZAKIR MANJIL
10 GOPALPUR
4 BOALMARI
11 GORAI
5 SADAR UPAZILLA COMPLEX
12 KALIHATI
6 CHAR BHADRASAN
13 KENDUA BAZAR
7 COURT BUILDING
14 BALLA BAZAR
8 FARIDPUR
15 LADIES BRANCH
9 GOALCHAMAT
16 LOWHATI
10 HAJIGONJ
17 MIRZAPUR
11 HATKRISHNAPUR
18 MODHUPUR
12 KAMARKHALI
19 MOHANPUR
13 KANAIPUR
20 NAGARPUR
14 KHALILPUR
21 NIKRAIL
15 MADHUKHALI
22 PAKUTIA
16 MADHUKHALI U.Z.C.
23 SHAKHIPUR
17 NAGARKANDA
24 TANGAIL
18 SADARPUR
25 TANGAIL BAZAR
19 SHIRGRAM
26 VICTORIA ROAD
20 TALMA
27 SHAHID SALAHUDDIN CANTT.GHATAIL
21 TEPAKHOLA
28 NALIN BAZAR
22 MOYENDA BAZAR
29 MOULANA BHASANI SCIENCE AND TECH.
23 SALTHA BAZAR
30 GARO BAZAR
PRINCIPAL OFFICE : MADARIPUR
31 ELENGA
1 ANGARIA BAZAR
32 SADATPUR BAZAR
2 BHEDARGONJ
REGIONAL OFFICE : SHERPUR
3 CHAR MUGURIA
1 SHERPUR
Sl. NAME OF BRANCH
2 JHENAIGATI
4 DAMUDDYA
3 NAKHLA
5 GOSAIRHAT
4 NALITABARI
6 JAJIRA
5 NAYANI BAZAR
7 KALKINI
6 SREEBORDI
8 KULPADDI
7 SURJADI BAZAR
9 PAURASHAVA
8 KORTIMARI BAZAR
10 MADARIPUR
9 RAJIBPUR
11 MILLGATE
10 ROWMARI
12 NARIA
11 Kortimari Bazar
13 RAJOIR
REGIONAL OFFICE : NETROKONA
14 SARIATPUR
1 ATPARA
15 SHIBCHAR
2 BARHATTA
16 TEKERHAT
3 DURGAPUR
17 DATTAPARA BAZAR BRANCH
4 KALMAKANDA
PRINCIPAL OFFICE : KUSHTIA
5 KENDUA
1 AMLA
6 KHALIAJHURI
2 BHERAMARA
7 LEPSIA
3 BHERAMARA POWER STATION
8 MADAN
4 COURT BUILDING
9 MADANPUR
5 DAULATPUR
10 MOHANGONJ
6 DOHAKULA
11 NETROKONA
7 EKTERPURHAT
12 PURBADHALA
8 HALSHA
13 THAKURKONA BAZAR
9 HARINARAYANPUR
14 HOGLA BAZAR
10 KUSHTIA SUGAR MILLS
11 KAYA BAZAR
396
12 KHOKSHA 10 RAJBARI
13 KUMARKHALI 11 RAJBARI UPOZILLA COMPLEX
14 KUMARKHALI UPA ZILLA COMPLEX 12 KALUKHALI
15 KUSHTIA GENERAL MANAGER’S OFFICE
CHATTOGRAM
16 MIRPUR
PRINCIPAL OFFICE : CHATTOGRAM NORTH
17 MODHUPUR BAZAR
1 AMIN JUTE MILLS
18 N.S.ROAD
2 ASADGONJ
19 PORADAH
3 BAHADDARHAT
20 SAMOSPUR
4 CHAKTAI
21 PASHCHIM ABDALPUR
5 CHATTOGRAM CANTONMENT
22 NANDALALPUR
6 CHOWKBAZAR
PRINCIPAL OFFICE : CHUADANGA
7 COURT HILLS
1 ALAMDANGA
8 JAMALKHAN ROAD
2 CHUADANGA
9 KAGATIAHAT
3 DAMURHUDA
10 KALURGHAT INDUSTRIAL ESTATE
4 DARSANA
11 KHATUNGONJ
5 DINGIADAH
12 KURBANIGONJ
6 GOKULKHALI BAZAR
13 MOHAMMAD TAKIRHAT
Sl. NAME OF BRANCH
14 PUNCHLAISH
7 HATBOALIA
15 RAUZAN
8 JIBANNAGAR
16 CHATTOGRAM MEDICAL COLLEGE
9 MUNSHIGONJ
17 SIRAJUDDOWLA ROAD
10 SAROJGONJ
18 TERRI BAZAR
11 UTHALI
19 NA CHOWDHURY ROAD
12 AMJHUPI
20 FAKIRHAT BRANCH
13 GARADOB BAZAR
21 HATHAZARI
14 GANGNI
22 KALUMUNSHIRHAT
15 GANGNI THANA HEAD QUARTER
23 NANGOLMORA
16 JOREPUKURIA
24 FATIKCHARI
17 MEHERPUR
PRINCIPAL OFFICE: CHATTOGRAM SOUTH
18 MEHERPUR COURT BUILDING
1 B.I.D.C.STEEL PLANT
19 MUJIBNAGAR
2 BANUR BAZAR
20 Court Building
3 BHATIARY
REGIONAL OFFICE :GOPALGONJ
4 CDA MARKET
1 GOPALGONJ
5 CUSTOM HOUSE
2 BHATIAPARA
6 KALIBARI
3 BOLTALI
7 CDA RESIDENTIAL AREA
4 GHAGOIR
8 MAJIRGHAT
5 KASHIANI
9 MARIAMNAGAR
6 BANOGRAM BAZAR
10 MIRSARAI
7 D.C COMPLEX
11 NEW MARKET
8 MOKSEDPUR
12 NIZAMPUR
9 PANCHURIA
13 CUET
10 PATGATI
14 PAHARTALI MAIN ROAD
11 TONGIPARA
15 PORT BRANCH
12 BASBARIA BAZAR
16 RAILWAY BUILDING
REGIONAL OFFICE : RAJBARI
17 RANGUNIA
1 BAHARPUR
18 REAZUDDIN BAZAR
2 BALIAKANDI
Sl. NAME OF BRANCH
3 BELGACHI
19 ROAZARHAT
4 GOALUNDO
20 SADARGHAT
5 GOALUNDO UPOZILLA COMPLEX
21 SANDVIP
6 KASBA MAJAIL
22 SITAKUNDA
7 MACHPARA
23 CHATTOGRAM UREA FERTILIZER LTD.
8 PANGSHA
24 SHAH AMANAT (R:) INT. AIRPORT
9 PUNGSHA UPOZILLA COMPLEX
Annual Report 2021

25 MIDAGALI REGIONAL OFFICE : BANDARBAN

26 HALISHAHAR HOUSING ESTATE 1 ALI KADAM
27 MARINE ACADEMY 2 BANDARBON
PRINCIPAL OFFICE : RANGAMATI 3 LAMA
1 BAGAICHARI 4 NAIKHANGCHARI
2 BANARUPA 5 ROWANGCHARI
3 BARAICHARI 6 RUMA
4 BARKAL 7 THANCHI
5 BELAICHARI GENERAL MANAGER’S OFFICE
COMILLA
6 CHANDRAGHONA
PRINCIPAL OFFICE : COMILLA
7 DIGHINALA
1 ADDA BAZAR
8 GHAGRA
2 BISE (COMILLA)
9 JURACHARI
3 BARURA
10 KAPTAI
4 BRAHMANPARA
11 KAWKHALI
5 BURICHONG
12 KHAGRACHARI
6 CHANDINA
13 LANGADU
7 CHOWDDAGRAM
14 LAXMICHARI
8 COMILLA CANTONMENT
15 MAHALCHARI
9 COURT BUILDING
16 MANIKCHARI
10 DAUDKANDI
17 MATIRANGA
11 DAULATGONJ
18 NANIARCHAR
12 DEBIDWAR
19 NEW COURT BUILDING
13 ELIOTGONJ
20 PANCHARI
14 GOURIPUR BAZAR
21 RAJASTHALI
15 HOMNA
22 RAMGARH
16 KONGSHANAGAR
23 RANGAMATI
17 KOTBARI
24 Guimara
18 MURADNAGAR
PRINCIPAL OFFICE : PATIYA
Sl. NAME OF BRANCH
1 ANOWARA
19 NANGALKOT
2 BANSHKHALI
20 NOYABAZAR
3 BOALKHALI
21 PAYALGACHA
4 CHANDANAISH
22 RAIPUR BAZAR
5 DOHAZARI
23 RAMMOHAN BAZAR
6 KALARPOLE
24 COMPANYGANJ BAZAR
7 KHAN BAHADUR BAZAR
25 SREEKAIL
8 LOHAGARA
26 STATION ROAD,COMILLA
9 MOULVI BAZAR
27 SUAGAZI
10 PATIYA
28 WAPDA BUILDING,COMILLA
Sl. NAME OF BRANCH
29 BHARASAR BAZAR
11 ROWSHANHAT
30 PARAMTALA
12 RUSTOMHAT
31 MEGNA BR.
13 SATKANIA
32 COMILLA SADAR DAKKHIN UPOZILA BR.
REGIONAL OFFICE : COX’S BAZAR
33 MONOHORGONJ BR.
1 BADARKHALI
34 TITAS
2 CHAKARIA
35 LALMAI UPOZILA
3 COX'S BAZAR
36 KHALILPUR BAZAR
4 DULAHAZARA
37 MIA BAZAR
5 KUTUBDIA
PRINCIPAL OFFICE: NOAKHALI
6 MOHESHKHALI
1 AMANULLAHPUR
7 RAMU
2 BASHURHAT
8 TEKNAF
3 CHAPRASHIRHAT
9 UKHIYA
4 CHAR BATA
10 EIDGHAH
5 SUBARNA CHAR
6 CHAR MATUA
7 CHATKHIL
398
8 CHAUDHURYHAT 17 SHAHRASTI
9 CHAUMUHANI 18 SHOLAGHAR
10 CHHAYANI BAZAR 19 WARUK
11 COLLEGE ROAD 20 SENGAR CHAR
12 DAYARAMDI PRINCIPAL OFFICE : B-BARIA
13 HATIYA 1 AKHAURA
14 KALAMUNSHI BAZAR 2 ASHUGONJ
15 KANKIRHAT 3 BANCHARAMPUR
16 KHALIFERHAT 4 BRAHMANBARIA
17 MAIJDEE BAZAR Sl. NAME OF BRANCH
18 MAIJDEE COURT 5 CHANDPUR BAZAR
19 PAURA BIPANI BITAN 6 ZIA SARKARKHANA
20 SAGORIA BAZAR 7 CHATALPAR BAZAR
21 SEBARHAT 8 FANDAUK
22 SENBAGH 9 GOKARNAGHAT
23 SHAHAPUR 10 HARINBAR BAZAR
24 SONAIMURI 11 KOSBA
25 SONAPUR OLD TOWN 12 KUTIBAZAR
26 TAMARUDDI 13 T.A. ROAD
27 ZAMINDARHAT 14 MEDDA
28 HATIYA THANA PARISAD 15 NABINAGAR
PRINCIPAL OFFICE : FENI 16 NASIRNAGAR
1 BAKTERMUNSHI 17 NEW MARKET
2 CHHAGOLNAIYA 18 RASULLABAD
3 DAGAN BHUIYAN 19 RUPASDI BAZAR
4 FENI 20 SARAIL
5 FULGAZI 21 SHYMAGRAM
6 GUTHUMA BAZAR 22 SINGERBIL
7 ISLAMPUR ROAD 23 MIRASHANI
8 LAMUA BAZAR 24 BIJOYNAGAR
9 LASHKER HAT REGIONAL OFFICE : LAXMIPUR
10 MAHIPAL 1 BHAWANIGANJ BAZAR
11 MATIAGODHA 2 CHANDRAGANJ
12 MUNSHIRHAT 3 CHAR ALEXANDER
13 PANCHGACHIA 4 CHAR LORENCE
14 PARSHURAM 5 CHAR SITA
15 SADAR UPAZILA COMPLEX 6 HAIDERGANJ
16 SILONIA BAZAR 7 HAJIR HAT
17 SONAGAZI 8 KANCHANPUR
PRINCIPAL OFFICE : CHANDPUR 9 LAXMIPUR
1 ALIGANJ 10 RAIPUR
2 CHANDPUR 11 RAKHALIA BAZAR
3 FARAJIKANDI 12 RAMGANJ
4 FARIDGANJ GENERAL MANAGER’S OFFICE
SYLHET
5 GAZIPUR
PRINCIPAL OFFICE : SYLHET
6 HAIMCHAR
1 AMJAD ALI ROAD
7 HAZIGANJ
2 BAIRAGIR BAZAR
8 KACHUA
3 BALAGONJ
9 KHILA BAZAR
4 BEANIBAZAR
10 NATUN BAZAR
5 BISWANATH
11 MOTLABGANJ
6 CHARKHAI
12 NABIPUR
7 COMPANYGANJ
13 KALIAPARA
8 COURT BUILDING
14 PURANBAZAR
9 DAKSHIN FENCHUGONJ
15 RAHIMANAGAR
Sl. NAME OF BRANCH
16 SACHAR BAZAR
10 DHAKA DAKSHIN
Annual Report 2021

11 FENCHUGONJ SAR KARKHANA 11 TAHIRPUR

12 GOLAPGONJ 12 DAKKHAIN SUNAMGONJ
13 GOWAINGHAT PRINCIPAL OFFICE : HABIGONJ
14 JAINTAPUR 1 AJMIRIGANJ
15 JAKIGANJ 2 BAHUBAL
16 KAJAL HAOR 3 BANIYACHONG
17 KAMAL BAZAR 4 CHUNARUGHAT
18 KANAIGHAT 5 HABIGANJ
19 KHADIMNAGAR 6 KAKAILCHAO
20 MOHAJANPATTY 7 LAKHAI
21 OSMANI AIRPORT 8 MADHABPUR
22 FENCHUGONJ 9 NABIGANJ
23 PIRER BAZAR 10 SHAISTAGANJ
24 CITY CORP. 11 ENATGONJ
25 STATION ROAD 12 CHOWDHURY BAZAR
26 SYLHET CANTONMENT 13 AUSHKANDI
27 TAJPUR GENERAL MANAGER’S OFFICE
BARISAL
28 TIKARPARA
PRINCIPAL OFFICE : BARISAL
29 TILLAGARH
1 AGAILJHARA
30 SHAHJALAL UNIVERSITY OF SCIENCE & TEC
2 BAKERGONJ
31 TAMABIL LAND PORT
3 BANARIPARA
PRINCIPAL OFFICE : MOULVIBAZAR
4 BARISAL CADET COLLEGE
1 BARLEKHA
5 CHAKHAR
2 BHAIRABGONJ BAZAR
6 CHARAMUDDI
3 CHANDGRAM
7 CHOWK BAZAR
4 CHANDNIGHAT
8 COLLEGE ROAD
5 DIGHIRPAR BAZAR
9 DHAMURIA
6 FOREIGN EXCHANGE
10 GOILA
7 KADAMHATA
11 GOURNADI
8 KAMALGONJ
12 GUTHIA
9 KAMALPUR BAZAR
13 HALTABANDAR
10 KULAURA
14 HIZLA
11 COURT ROAD
15 JHALAKATI COURT BUILDING
12 MOULVIBAZAR
Sl. NAME OF BRANCH
13 MUNSHIBAZAR
16 KAMARKHALI
14 PHULARTAL BAZAR
17 KATHALIA
15 RAJNAGAR
18 KHANPURA
16 SARKER BAZAR
19 MEDAKUL
17 SATGAON
20 MEHENDIGONJ
18 SHAHBAZPUR
21 MULADI
19 SHAMSHERNAGAR
22 NACHAN MAHAL
20 SREEMONGAL
23 NALCHIRA
21 TARAPASHA BAZAR
24 NALCHITY
22 JURI BR.
25 NEAMATI BANDAR
REGIONAL OFFICE : SUNAMGONJ
26 RAJAPUR
1 BISWAMVARPUR
27 SAGARDI
2 CHHATAK
28 SHAHEBERHAT
3 DERAI
29 C & B ROAD
4 DHARMAPASHA
30 TORKEY BANDAR
5 DOWARA BAZAR
31 WAZIRPUR
6 JAGANNATHPUR
32 MOLLAR HAT
7 MADHYANAGAR
33 ARATDHAR PATTY
8 SACHNABAZAR
34 PAISARHAT
9 SULLAH
35 BARISAL UNIVERSITY
10 SUNAMGANJ
36 KAZIR HAT
400
PRINCIPAL OFFICE : PATUAKHALI 11 KHALISHPUR

1 AMTALI 12 KHULNA SHIPYARD
2 BAKULBARIA 13 KOYRA
3 BAMNA 14 PAIKGACHA
4 BARGUNA COURT BUILDING 15 PHULBARIGATE
5 BAUPHAL 16 PHULTALA
6 BETAGI 17 RUPSA MARKET
7 BOGA BANDAR 18 SHAHPUR
8 DASHMINA 19 SHIROMONI INDUSTRIAL AREA
9 GALACHIPA 20 TEROKHADA
10 KALAPARA BANDAR 21 SIR IQBAL ROAD
11 MOHIPUR PRINCIPAL OFFICE : JESSORE
12 MOUKARAN BAZAR 1 ALFA MILLGATE
13 NEW TOWN Sl. NAME OF BRANCH
14 PATHARGHATA 2 BAGANCHRA
15 PATUAKHALI 3 BAGHERPARA
16 SUBIDKHALI 4 BARINAGAR
17 ULANIA BAZAR 5 BASUNDIA
18 DUMKI 6 BENAPOLE
19 PAYRA BANDAR 7 BHATPARA
20 TALTOLI 8 CHARAVITA
REGIONAL OFFICE : BHOLA 9 CHINATOLA
1 BHOLA 10 SAGARDARI BAZAR
2 BORHANUDDIN 11 CHOWGACHA
3 CHARFASHION 12 CHURAMANKATI
4 DAULATKHAN 13 DHALGRAM
Sl. NAME OF BRANCH 14 GARIBSHAH SARAK
5 GAZARIA 15 JESSORE BAZAR
6 LALMOHAN 16 JESSORE CANTT.
7 MOHAJANPATTY 17 JHIKARGACHA
8 MONPURA 18 KARBALA ROAD
9 NORTH DIGHOLDI 19 KESOBPUR
10 TAJUMUDDIN 20 MONIRAMPUR
REGIONAL OFFICE : PIROJPUR 21 NARIKELBARIA
1 BHANDARIA 22 BISE
2 ZIANAGAR 23 NOAPARA
3 KOWKHALI 24 PAR BAZAR
4 MATHBARIA 25 PURAPARA
5 NAZIRPUR 26 R.N.ROAD
6 PARERHAT 27 RAIL GATE
7 PIROJPUR 28 RAJGONJ
8 SREERAMKATI 29 RUPDIA
9 SWARUPKATI 30 SALUA BAZAR
10 TUSHKHALI 31 SARSHA
GENERAL MANAGER’S OFFICE 32 TRIMOHONI
KHULNA
33 ULASHI
PRINCIPAL OFFICE : KHULNA
34 KHAZURA BAZAR
1 BANIAKHALI BAZAR
PRINCIPAL OFFICE : SATKHIRA
2 BATIAGHATA
1 ASSASUNI
3 BOYRA
2 BUDHATA
4 CHALNA BAZAR
3 DEBHATTA
5 CUSTOM HOUSE
4 GOYRAH BAZAR
6 DAULATPUR COLLEGE ROAD
5 KUMIRA BAZAR
7 DIGHOLIA
6 JHAUDANGA
8 DUMURIA
7 KALAROA
9 K.D.A.NEW MARKET
8 KALIGONJ
10 KAZDIA
Annual Report 2021

9 KAMAN NAGAR 7 NARAIL

10 KHALISHKHALI BAZAR 8 PIROLI BAZAR
11 KULIA BAZAR 9 RUPGONJ
12 MAGURA BAZAR 10 TULARAMPUR
13 PARULIA 11 LOHAGARA BAZAR
Sl. NAME OF BRANCH GENERAL MANAGER’S OFFICE
RAJSHAHI
14 SATKHIRA
PRINCIPAL OFFICE : RAJSHAHI
15 SHYAMNAGAR
1 BAGHA
16 TALA
2 BHAWANIGONJ
17 BHOMRA BR. SATKHIRA
3 CHARGHAT
PRINCIPAL OFFICE : JHENAIDAH
4 DAKRA
1 BARO BAZAR
5 MOUGACHI BAZAR
2 BARODHOPADI BAZAR
6 DURGAPUR
3 BUNAGATI BAZAR
7 GODAGARI
4 GARAGONJ
8 GREATER ROAD
5 HARINAKUNDU
9 MOHANPUR
6 HATGOPALPUR
10 MONIGRAM
7 JHENAIDAH
11 MOTIHAR
8 JHENAIDAH CADET COLLEGE
12 PABA
9 KALIGONJ
13 POLICE ACADEMY
10 KOLABAZAR
14 PUTHIA (RAJSHAHI)
11 KOTCHANDPUR
15 RAJSHAHI CADET COLLEGE
12 LADIES BR.
16 RAJSHAHI COURT BUILDING
13 MAGURA
17 RAJSHAHI MEDICAL COLLEGE HOSPITAL
14 MOBARAKGONJ SUGAR MILL
18 SAPURA INDUSTRIAL ESTATE
15 MODHUPUR
19 TANORE
16 MOHAMMADPUR
20 RAJSHAHI RAILWAY COMPLEX
17 MOHESHPUR
21 KASBA TANGRAMARY
18 NUTAN BAZAR
22 MUNDUMALAHAT
19 RABINARIKELBARIA
PRINCIPAL OFFICE : NAOGAON
20 SAILKUPA
1 ABADPUKURHAT
21 SHALIKHA
2 ATRAI
22 SHEIKHPARA BAZAR
3 BADALGACHI
23 SREEPUR
4 BHANDERPUR
REGIONAL OFFICE : BAGERHAT
5 BHAWANIPUR BAZAR
1 BAGERHAT
6 DHAMOIRHAT
2 CHITALMARI BAZAR
7 K. D. MORE
3 FAKIRHAT
Sl. NAME OF BRANCH
4 GILATALA
8 MANDA
5 GOURAMBHA BAZAR
9 MOHADEVPUR
6 KACHUA
10 MOHISHBATHAN
7 MAIN ROAD
11 MONGALBARIHAT
8 MOLLAHAT
12 NAOGAON
9 MONGLA
13 NIAMATPUR
10 MORELGONJ
14 PATNITALA
11 RAMPAL
15 PORSHA
12 RAYENDA BAZAR
16 RANINAGAR
13 MONGLA PORT
17 SAPAHAR
14 COURT BUILDING
18 T.T.D.C.
REGIONAL OFFICE : NARAIL
19 TRIMOHONI
1 CHACHURI BAZAR
PRINCIPAL OFFICE : PABNA
2 GOBRA
1 ARAMBARIA
3 KALIA
2 ATGHORIA
4 ZILA PARISHAD
3 BAGHOIL
5 LAXMIPASHA
4 BANWARINAGAR
6 MOHAJAN BAZAR
5 BERA
402
6 BHANGOORA BAZAR 20 NANDIGRAM

7 CHATMOHAR 21 NASHARATPUR
8 DASURIA 22 RANABAGHA BAZAR
9 EKDANTA 23 SANTAHAR
10 GOPALPUR (Z.B.) 24 SHARIAKANDI
11 ISHURDI 25 SHERPUR
12 JORGACHA 26 SHERPUR ROAD
13 PABNA TRADE CENTRE 27 SHIBGONJ
14 PABNA 28 SONATALA
15 SANTHIA 29 TALORA
16 SUZANAGAR 30 SHAHAR PUKUR
17 ANANTA BAZAR 31 SHAHID ZIAUR RAHMAN MEDICAL COLLEGE
18 KARANJA BAZAR PRINCIPAL OFFICE : NATORE
PRINCIPAL OFFICE : SIRAJGONJ 1 AHMEDPUR
1 BAGHABARIGHAT 2 BAGATIPARA
2 CHANDAIKONA 3 BARAIGRAM
3 CHOWBARI Sl. NAME OF BRANCH
4 DHANGARA 4 CHANCHKOIR
5 ENAYETPUR 5 DAYARAMPUR
6 JAMTOIL 6 GURUDASHPUR
7 KAZIPUR 7 OLD BUS STAND
8 KHASH KAWLIA 8 LALPUR
9 LAHIRI MOHANPUR 9 NATORE
10 NAOGAON BAZAR 10 NATORE STATION BAZAR
11 QUAMI JUTE MILLS 11 FULBAGAN
12 SHAHZADPUR 12 SINGRA
Sl. NAME OF BRANCH 13 NOLDHANGA HAAT
13 SHOHAGPUR REGIONAL OFFICE : JOYPURHAT
14 SIRAJGANJ 1 AKKELPUR
15 SONAMUKHI 2 HATIL
16 TARASH 3 JOYPURHAT
17 ULLAPARA 4 JOYPURHAT EAST
18 SIRAJGANJ COURT BHABAN 5 KALAI
19 HATIKUMRUL 6 KHETLAL
20 NATUAR PARA 7 PANCHBIBI
21 SADANANDAPUR 8 PUNATHAT
PRINCIPAL OFFICE : BOGRA REGIONAL OFFICE : CHAPAINAWABGONJ
1 ADAMDIGHI 1 BHOLAHAT
2 AZIZUL HOQUE COLLEGE 2 CHAPAINAWABGONJ
3 B.P.U.A 3 GOMASTAPUR
4 BALUAHAT 4 NEW MARKET
5 BOGRA BAZAR 5 NACHOLE
6 BOGRA CANTONMENT 6 ROHANPUR
7 COLLEGE ROAD 7 SHIBGONJ
8 DHUNAT 8 SONA MASJID
9 DUPCHANCHIA GENERAL MANAGER’S OFFICE
RANGPUR
10 DURGAPUR
PRINCIPAL OFFICE : RANGPUR
11 GABTALI
1 BADARGONJ
12 GANG NAGAR
2 CHATRAHAT
13 GOHAIL ROAD
3 DHAP
14 GOHAILHAT
4 GANGACHARA
15 GUZIA
5 HARAGACHA
16 HARIKHALIHAT
6 MAHIGONJ
17 JAMURHAT
7 JAIGIRHAT
18 KAHALOO
8 KACHARIBAZAR
19 NAMUZAHAT
9 KAWNIA
Annual Report 2021

10 KHALASHPIR 11 HAKIMPUR
11 RANGPUR BAZAR 12 JOYNANDAHAT
12 LALDIGHIHAT 13 KACHINIAHAT
Sl. NAME OF BRANCH 14 KAHAROLE
13 MIRBAGH 15 KHANSAMA
14 MITHAPUKUR 16 MILL ROAD
15 PIRGACHA 17 NAWABGONJ
16 PIRGONJ 18 OSMANPUR
17 RANGPUR CANTONMENT 19 PAKERHAT
18 TARAGANJ 20 PARBATIPUR
PRINCIPAL OFFICE : KURIGRAM 21 HUGLI PARA .
1 ADITHMARI 22 PHULBARI
2 BARABARIHAT 23 PULHAT BRANCH
3 BHURUNGAMARI 24 RANIGONJ BAZAR
4 CHILMARI 25 SETABGONJ
5 FULBARI 26 SHEIKHPURA
6 HATIBANDHA 27 STATION ROAD
7 KALIGANJ 28 SUIHARI
8 KURIGRAM 29 MADDHAPARA KATHIN SHILA PRAKALPA
9 LALMONIRHAT 30 BARA PUKURIA KOYLAKHANI PRAKALPA
10 MOHISH KHOCHA 31 SHAHID MAHBUB SENANIBASH SHAKHA
11 NAGESWARI PRINCIPAL OFFICE : THAKURGAON
12 PATGRAM 1 AKHANAGAR
13 RAJARHAT 2 ATWARI
14 ULIPUR 3 BALIADANGI
15 BURIMARI Sl. NAME OF BRANCH
16 KAKINA BAZAR 4 BHAJANPUR
17 SONAHAT LANDPORT 5 BODA
PRINCIPAL OFFICE : GAIBANDHA 6 CHOWDHURYHAT
1 BHARATKHALI 7 DEBIGONJ
2 BIRATHAT 8 GOREYAHAT
3 BONARPARA 9 HARIPUR
4 FASHITOLA 10 KHOCHABARIHAT
5 FULCHARI 11 NEEKMARAD
6 GAIBANDHA 12 PANCHAGARH
7 GOBINDAGONJ 13 PIRGONJ
8 KAMARJANI 14 RANISANKAIL
9 KAMDIA 15 RUHIA
10 D. B. ROAD 16 SHIBGONJ
11 MOHIMAGONJ 17 TETULIA
12 PALASHBARI 18 THAKURGAON
13 PURANBAZAR 19 THAKURGAON SUGAR MILLS
14 SADULLAPUR 20 ZABARHAT
15 SHAGHATA 21 SHABDAL HAT
16 SUNDARGONJ 22 BANGLABANDHA LANDPORT
PRINCIPAL OFFICE : DINAJPUR REGIONAL OFFICE : NILPHAMARI
1 AFTABGONJ 1 BHABANIGONJ
2 BHAWANIPUR BAZAR 2 CHILAHATI
Sl. NAME OF BRANCH 3 DIMLA
3 BINNA KURI 4 DOMAR
4 BIRAMPUR 5 JALDHAKA
5 BIRGONJ 6 KISHOREGONJ
6 BIROL 7 MIRGONJ
7 CHIRIR BANDAR 8 NILPHAMARI
8 COURT BUILDING 9 SAIDPUR
9 FARAKKABAD 10 SAIDPUR CANTONMENT
10 GHORAGHAT
404
AUTHORISED DEALER BRANCHES

S/N BRANCH NAME AD BR. CODE SWIFT CODE
1 AGRABAD CORPORATE, CHITTAGONG 0342 BSONBDDHAGR
2 B-WAPDA CORPORATE, DHAKA 0360 BSONBDDHBWP
3 BANGABANDHU AVENUE CORPORATE, DHAKA 0338 BSONBDDHBBA
4 BAHADDARHAT, CHITTAGONG 0367 BSONBDDHBHT
5 BOGRA CORPORATE, BOGRA 0357 BSONBDDHBOG
6 BRAHMANBARIA, BRAHMANBARIA 0375 BSONBDDHBRM
7 CHANDPUR, CHANDPUR - --
8 CHAPAINAWABGONJ, CHAPAINAWABGONJ 0363 BSONBDDHCHP
9 CHAWKBAZAR, DHAKA 0335 BSONBDDHCWK
10 CHATAK, SUNAMGONJ 0374 BSONBDDHCTK
11 COMILLA CORP., COMILLA 0350 BSONBDDHCCB
12 DARGAGATE CORP., SYLHET 0348 BSONBDDHDGT
13 DAULATPUR, KHULNA 0353 BSONBDDHDAU
14 DHAKA CANTT. CORP., DHAKA 0361 BSONBDDHCNT
15 DILKUSHA CORP., DHAKA 0332 BSONBDDHDIL
16 DINAJPUR CORP., DINAJPUR 0359 BSONBDDHDNJ
17 FOREIGN EXCHANGE CORP., DHAKA 0336 BSONBDDHFEB
18 GREEN ROAD, DHAKA 0369 BSONBDDHGRN
19 GULSHAN, DHAKA 0364 BSONBDDHGUL
20 HABIGANJ, HABIGANJ - --
21 HOTEL SHERATON, DHAKA 0370 BSONBDDHHST
22 JESSORE CORP., JESSORE 0354 BSONBDDHJSR
23 KHATUNGONJ, CHITTAGONG 0344 BSONBDDKHA
24 KHULNA CORP., KHULNA 0352 BSONBDDHKHU
25 KUSHTIA, KUSHTIA 0355 BSONBDDHKST
26 FOREIGN EXCHANGE, NARAYANGONJ 0373 BSONBDDHLAD
27 LALDIGHI CORP., CHITTAGONG 0343 BSONBDDHCTG
28 LOCAL OFFICE, DHAKA 0330 BSONBDDHLOD
29 LALMONIRHAT, LALMONIRHAT 0368 BSONBDDHLAL
30 MOULOVIBAZAR, MOULOVIBAZAR - --
31 MYMENSINGH, MYMENSINGH 0341 BSONBDDHMYM
32 NARAYANGONJ CORP., NARAYANGONJ 0339 BSONBDDHNAR
33 RAILWAY BUILDING, CHITTAGONG 0345 BSONBDDHRWB
34 RAJSHAHI CORP., RAJSHAHI 0356 BSONBDDHRAJ
35 RAMNA CORP., DHAKA 0333 BSONBDDHRAM
36 RANGPUR CORP., RANGPUR 0358 BSONBDDHRNG
37 SADARGHAT CORPORATE, DHAKA 0334 BSONBDDHSDR
38 SATKHIRA, SATKHIRA 0366 BSONBDDHSAT
39 SHILPA BHABAN CORPORATE, DHAKA 0331 BSONBDDHSLP
40 SIRAJGONJ, SIRAJGONJ - --
41 SUNAMGONJ, SUNAMGONJ 0356 BSONBDDHSNG
42 SYLHET CORPORATE, SYLHET - --
43 TEKNAF, COX’S BAZAR - --
44 WAGE EARNER'S CORPORATE, DHAKA 0337 BSONBDDHWEB
45 WAGE EARNER'S CORPORATE, CHITTAGONG 0346 BSONBDDHWEC
46 Uttara Model Town, Dhaka 0376 --
47 Panchagarh, Panchagarh 0377 --
48 Hazrat Shahjalal International Airport, Dhaka 0378 --
Annual Report 2021

ADDITIONAL
INFORMATION
YEAR OF FIRM COMMITMENT
YEAR OF EXPLORING NEW FRONTIER ADDITIONAL INFORMATION
GLOBAL REMITTANCE
NETWORK OF SBL
1
1
3
3 1
1 1
1
2 6
2 6
3 3
10 10
10 4
10 4 1 1
11
22
1 1
8 8 11
11
4 4 11
1 1 3 3
14 14 11
8 8
2 27 7 11
33
11
4
4
1
1 2
2
Note 1
Note 1. Sonali Bank (UK) lTd. - 2 Branches in UK
1
1. Sonali Bank (UK) lTd.
2. Sonali - 2 Branches
Exchange in UK
Co. Incorporation (SECI)
Subsidiary Company of
2. SBL - 10 Branches
Sonali Exchange in USA
Co. Incorporation (SECI)
Subsidiary Company of SBL - 10 Branches in USA
1. Embassy of Bangladesh, Riyadh, KSA
1. Embassy 2.
ofConsulate General
Bangladesh, of Bangladesh,
Riyadh, KSA Jeddah
SBL Representation Office
2. Consulate3. General
EmbassyofofBangladesh,
Bangladesh, Jeddah
Kuwait, KSA
SBL Representation Office 3. Embassy of Bangladesh, Kuwait, KSA
1. SBL Kolkata Branch
Overseas Branches of1.SBL 2. SBL
SBL Kolkata Shiliguri Branch
Branch
Overseas Branches of SBL 1. Western
2. SBL Shiliguri BranchUnion 5. Merchantrade
2. X-press Money 6. Xoom Paypal
1. Western Union
3. IME 5. Merchantrade
7. RIA Financial Services
Number of Exchange 2. X-press Money
Houses 6. Xoom Paypal
4.Trans Fast 8.Hello Paisa South Africa
3. IME 7. RIA Financial Services
Number of Exchange Houses 4.Trans Fast 8.Hello Paisa South Africa
NOSTRO arrangement of SBL with Several countries
NOSTRO arrangement of SBL with Several countries

378 SONALI BANK LIMITED
Annual Report 2019 379
SONALI BANK LIMITED

OVERSEAS BRANCHES
Siliguri Branch, India Siliguri Branch, India
Wachel Molla Mansion (1st Floor), White House, 304/3, Sevoke Road
8, Lenin Sarani (Dharmatala Strret) P.S. Siliguri, Dist. Darjeeling
Kolkata 700013, India. West Bengal, India.
Tel: 00-91-33-2229-7998 Tel: 00-91-0353-2520947(Off)
00-91-33-2229-3788 00-91-0353-2640800(Res)
Cell: 00919830024868 Fax: 00-91-0353-2520946
Fax: 00-91-33-2245-7407 E-mail : sonalisig@sancharnet.in.
Email: sonalibank@vsnI.net. sonalisiguri@bsnl.in
SONALI BANK LIMITED

REPRESENTATIVE OFFICES
Riyadh, K.S.A. Jeddah, K.S.A.
Sonali Bank Limited Representative Office, Riyadh Sonali Bank Limited Representative Office, Jeddah
Embassy of the People’s Republic of Bangladesh Consulate General of Bangladesh
Post box # 94395, Riyadh-11693, K.S.A. Kilo-3, Makkah Road,
Tel: 009661-4195300 Post box # 31085, Jeddah-21497, K.S.A.
00966-11-4192954 Ext. 111 (Off) Tel: 00966-12-6878465 Ext-142 (Off)
00966-11-2054013 (Res) 00966-12-6321158 (Res)
Cell: 00966-542851847 Cell: 00-966-567658295
E-mail: sbro.riyadh@gmail.com Fax: 00966-2-6336480
Fax: 009661-4196909/4193555 E-mail : sbr¬jed@gmail.com
Kuwait
Sonali Bank Limited Representative Office, Kuwait
Embassy of the People’s Republic of Bangladesh
House no-11, Block No-2, Street no-29, Khaldiya, Kuwait
Tel: 00965 24913219-20; Ext: 106
00965-24913210 (Off)
Cell: 00965-65762097
Fax: 00965-24913205
E-mail:sbrkuwait@yahoo.com
408
SONALI BANK (UK) LIMITED

SUBSIDIARY IN UNITED KINGDOM
Chief Executive Office, London London Main Branch
29-33 Osborn Street, London, E1 6TD, U.K. 29-33 Osborn Street, London E1 6TD, U.K.
Tel: 00-44-(0)20-7877-8200 (Switch Board) Tel: 00-44-(0)20-7877-8200 (Switch Board)
00-44-(0)20-7877-8231 (Direct) 00-44-(0)20-7877-8219 (Direct)
Fax: 00-44-(0)20-7377-9924 Fax: 00-44-(0)20-7375-3648
E-mail: enquiries@sonali-bank.co.uk E-mail: tauhidul.islam@sonali-bank.co.uk
Sarwar.hossain@sonali-bank.co.uk
Birmingham Branch
380, Coventry Road
Small Heath
Birmingham, B10 0UF, UK
Tel: 00-44-(0)20-7877-8200
00-44-(0)121-772-7240
Fax: 00-44-(0)121-772-8823
E-mail:birmingham@sonali-bank.co.uk
Annual Report 2021

SONALI EXCHANGE COMPANY
A SUBSIDIARY OF SONALI BANK LIMITED
Corporate Office, Manhattan Manhattan Branch
336 East 45th Street 8th Floor 336 East 45th Street 8th Floor
NY-10017, New York, USA NY-10017, New York, USA
Tel: 001-212-808-0790 (Office) Tel: 001-212-808-0790(Office)
Cell: 001-646-957-2283 Cell: 001-917-204-0315
Fax: 001-212-808-0791 Fax: 001-212-808-0791
E-mail: ceo@sonaliexchange.com E-mail: manhattan@sonaliexchange.com
Brooklyn Branch Astoria Branch
474, Macdonald Avenue, 1st Floor 29-31 Newtown Avenue, Astoria
Brooklyn, NY-11218, New York, USA NY-11102, New York, USA
Tel: 001-718-853-9558(Off.) Tel: 001-718-777-7001(Off.)
Cell: 001-917-670-1215 Cell: 001-646-509-7530
Fax: 001-718-853-9568 Fax: 001-718-777-1237
E-mail: brooklyn@sonaliexchange.com E-mail: astoria@sonaliexchange.com
Jackson Heights Branch Atlanta Branch
37-17 74th Street, Suite#2R 4897, Buford Highway, Suite #230
Jackson Heights, NY-11372, New York, USA Chamblee, Georgia GA -30341, USA
Tel: 001-718-507-6002 (Office) Tel: 001-770-936-9906 (Office)
Cell: 001- 646-371-6299 Cell: 001-678-772-2599
Fax: 001-718-507- 6295 Fax: 001-770-936-9907(off)
E-mail: jacksonhights@sonaliexchange.com E-mail: atlanta@sonaliexchange.com
410
Ozone Park Branch Paterson Branch
74-17, 101 Avenue, Ozone Park 436, Union Avenue, Paterson NJ-07502
New York, NY-11416, USA New Jersey, USA
Tel: 001- 347-505-8670 Tel: 001-973-595-7590 (Office)
Cell: Cell: 001-862-684-0836
Fax: 001-718-507- 6295 Fax: 001-973-595-7591
E-mail: ozonepark@sonaliexchange.com E-mail : paterson@sonaliexchange.com
Michigan Branch Jamaica Branch
11319 Conant Street, Suite #B, Hamtramck 169-12, Hillside Avenue
MI-48212, Michigan, USA Jamaica, NY -11432, USA
Tel: 001-313-368-3845 (Off.) Tel: 001-347- 644- 5150
Cell: 001-313-455-2532 Cell: 001-347-517-1114
Fax: 001-313-368-3897 Fax: 001-347- 644- 1692
E-mail: michigan@sonaliexchange.com Email : jamaica@sonaliexchange.com
Bronx Branch
21-51, Starling Avenue
1st Floor, Bronx NY-10462, USA
Tel: 001-718-822-1081 (Off.)
Cell: 011-347-335-5390
Fax: 001-718-822-1083
E-mail: bronx@sonaliexchange.com
Annual Report 2021

LIST OF ACRONYMS
AD Authorized Dealer ICandCD Internal Control and Compliance Division
ADB Asian Development Bank ICAB The Institute of Chartered Accountants of Bangladesh
ADP Annual Development Program ICMAB The Institute of Cost and Management Accountants
ADR Alternative Dispute Resolution of Bangladesh
AGM Annual General Meeting ICT Information and Communication Technology
ALCO Asset Liability Committee IMF International Monetary Fund
ALM Asset Liability Management IT Information Technology
AML Anti Money Laundering KSA Kingdom of Saudi Arabia
AMLC Anti Money Laundering Committee KYC Know Your Customer
ATA Anti- Terrorism Act LDR Loan Deposit Ratio
ATM Automated Teller Machine MANCOM Management Committee
BACH Bangladesh Automated Clearing House MBID Merchant Banking and Investment Division
BACPS Bangladesh Automated Cheque Processing MCR Minimum Capital Requirement
System MCO Maximun Cumulative Outflow
BAMLCO Branch Anti Money Laundering Compliance MDGs Millennium Development Goals
Officer MICR Magnetic Ink Character Recognition
BAS Bangladesh Accounting Standards MLPA Money Laundering Prevention Act
BB Bangladesh Bank MSME Micro, Small and Medium Enterprise
BBTA Bangladesh Bank Training Academy MTMF Medium Term Macro Economic Framework
TK. Bangladesh Tk. MVA Market Value Added
BEFTN Bangladesh Electronic Fund Transfer Network NAV Net Asset Value
BFIU Bangladesh Financial Intelligence Unit NCBs Nationalised Commercial Banks
BFRS Bangladesh Financial Reporting Standards NGO Non Government Organization
BIBM Bangladesh Institute of Bank Management NII Net Interest Income
BRDB Bangladesh Rural Development Board NPL Non Performing Loan
BRPD Banking Regulation and Policy Department NRB Non Resident Bangladeshi
BSA Bangladesh Standards on Auditing OBU Off-Shore Banking Unit
BSEC Bangladesh Securities and Exchange Commission OMIS Overview Management Information System
CAMELS Capital Adequacy, Asset Quality, Management, PC Packing Credit
PEPs Politically Exposed Persons
Earnings, Liquidity and Sensitivity to Market Risk
PMIS Personal Management Information System
CAMLCO Chief Anti Money Laundering Compliance Officer
POS Point of Sales
CAR Capital Adequacy Ratio
PRSP Poverty Reduction Strategy Paper
CBS Core Banking Software
RBCA Risk Based Capital Adequacy
CDBL Central Depository Bangladesh Limited
RBIA Risk Based Internal Audit
CDC Central Data Centre
REPO Repurchase Agreement
CDMS Core Deposit Monitoring System RMD Risk Management Division
CEO Chief Executive Officer RMS Remmittance Management System
CFO Chief Financial Officer RMU Risk Management Unit
CFT Combating Financing of Terrorism ROA Return on Asset
CIB Credit Information Bureau ROE Return on Equity
CRG Credit Risk Grading ROI Return on Investment
CRM Credit Risk Management RWA Risk Weighted Assets
CRR Cash Reserve Requirement SAFA South Asian Federation of Accountants
CSR Corporate Social Responsibility SBCS Sonali Bank Clearing System
CTR Cash Transaction Report SBL Sonali Bank Limited
DCFCL Departmental Control Function Check List SBSC Sonali Bank Staff College
DRS Disaster Recovery System SBTI Sonali Bank Training Institute
DSE Dhaka Stock Exchange Limited SCB State-owned Commercial Bank
EAS Early Alert System SECI Sonali Exchange Company Incorporated
EDF Export Development Fund SIL Sonali Investment Limited
EEF Equity Entrepreneurship Fund SLR Statutory Liquidity Ratio
EFT Electronic Fund Transfer SMA Special Mention Account
EGBMP Enterprize Growth Bank Modernization Project SMEs Small and Medium Enterprises
EPS Earning Per Share SOE State Owned Enterprise
ERM Environmental Risk management SREP Supervisory Review Evaluation Process
ERQ Exporter’s Retention Quota SRP Supervisory Review Process
ETPs Effluent Treatment Plants STR Suspicious Transaction Report
FBP Foreign Bills Purchased SWIFT Society for Worldwide Interbank Financial
FDI Foreign Direct Investment Telecommunication
FY Financial Year (July-June) TOR Terms of Reference
GAAP Generally Accepted Accounting Principles TP Transaction Profile
GDP Gross Domestic Product UAE United Arab Emirates
GNI Gross National Income UCCA Upazila Central Co-operative Association
GOB Government of Bangladesh UK United Kingdom
GTS Government Transaction System UN United Nations
HRDD Human Resources Development Division USA United States of America
IAS International Accounting Standard VAT Value Added Tax
IBP Inland Bills Purchased WDV Written Down Value
WEO World Economic Outlook
WTO World Trade Organization
412
STANDARD
DISCLOSURE INDEX
Disclosure checklist to the key sections of the Annual Report 2021
ITEM PAGE NO.
Corporate objectives, values and structure
Vision and mission 10-11
Overall strategic objectives 14
Core values and code of conduct/ethical principles 12-13
Profile of the company 16-18
Director's profiles and their representation on Board of other companies and
24, 28-43, 125-126
organization chart
Management report and analysis including director’s report/Chairman’s review/CEO
and Managing Director review etc.
A general review of the performance of the company 4-5,49-56,58-88
Description of the performance of the various activities / products / segments 49-56, 58-88, 127-140
of the company and group companies during the period under review 171-201
A brief summary of the business and other risks facing the organization and
73-74, 120-121, 144-169, 192
steps taken to effectively manage such risks
A general review of the future prospects/ outlook 15,176-177, 193
Information on how the company contributed to its responsibilities towards the
54,84-85,171-177
staff (including Health and safety)
Information on company's contribution to the national exchequer and to the
61,64,67-71,85,177-178,186
economy
Sustainability Reporting
Social Responsibility Initiatives (CSR) 78,184
Environment related Initiatives 171-173
Environmental & Social Obligations 66, 171-173, 184-186
Integrated Reporting 171-201
Appropriateness of disclosure of accounting policies and general disclosure
Disclosure of adequate and properly worded accounting policies relevant to
assets, liabilities, income and expenditure in line with best reporting standards
Any specific accounting policies
222-247
Impairment of assets
Changes in accounting policies/changes in accounting estimates
Accounting policy on subsidiaries 335-353, 372-392
Segment information
Comprehensive segment related information bifurcating segment revenue,
137, 237, 258-272
segment results and segment capital employed
Information regarding different segments and units of entity as well as non
segmental entities/units 19,26-27,58-88,128-140,152-169,219
Segment analysis of
Segment revenue
Segment results
Turnover 137, 209-221
Operating profit
Carrying amount of net segment assets
Annual Report 2021

ITEM PAGE NO.

Financial statements
Disclosure of all contingencies and commitments 210, 216, 236, 298-300
Comprehensive related party disclosure 317-321
Disclosures of remuneration and facilities provided to the Directors and CEO &
93-97, 100,308
Managing Director
Statement of financial position/balance sheet and relevant schedules
Income statement/profit and loss account and relevant schedules
Statement of changes in equity/ reserves and surplus schedule
Disclosure of types of share capital
Statement of cash flow 209-392
Consolidated financial statement

Extent of compliance with the core IAS/ IFRS or equivalent national standards
Disclosures/ contents of notes to accounts
Information about corporate governance
Board of Directors, Chairman and CEO and Managing Director 28-43, 90-97
Audit committee (composition, role, meetings, attendance etc.), internal control
30,32,94-95,109-112,117-119
and risk management
Ethics and compliance 13, 97-103
Remuneration and other committees of Board 93-97
Human capital 100, 177
Communication to shareholders and stakeholders 100, 124
Information available on website www,sonalibank.com.bd
Other information 16-18, 102
Management review and responsibility 101, 188-193
Disclosure by Board of Directors or Audit Committee on evaluation of quarterly
90-95, 116-119
reports
Any other investor friendly information 122-126
Description of Risk Management Framework

Risk Mitigation Methodology 73-74,120-121,144-169
Disclosure of Risk Reporting
Stakeholders information
Distribution of shareholding (number of shares as well as category wise e.g.
promoter group etc.) 122-124
Shares held by Directors/executives and relatives of Directors/executives
Redressal of investors complaints 124
Graphical/ pictorial data
Earnings per share
Net assets
Stock performance 128-130
Shareholders' funds
Return on shareholders' fund
414
ITEM PAGE NO.

Horizontal/ vertical analysis including: operating performance (income statement)
Total revenue
Operating profit
Profit before tax 134
Profit after tax
EPS
Statement of financial position (balance sheet)
Shareholders fund
Property plant and equipment
127, 135
Net current assets
Long term liabilities/ current liabilities
Profitability/ dividends/ performance and liquidity ratios
Net Interest income Ratio
Profit before provisions and Tax
Price earnings ratio
127-133
Capital Adequacy Ratio
Return on capital employed
Debt equity ratio
Statement of value added and its distribution
Government as taxes
Shareholders as dividend
Employees as bonus/ remuneration
138-140
Retained by the entity
Market share information of company's product/ services
Economic value added
Presentation of financial statements
Layout of contents 6-7
Theme on the cover page 1
28-45,66,68,70,78,117,120,124
Use of photographs
175-176, 188,194-195,199-201
Use of charts and graphs 74-79,84-85,128-130,134-139,

158-160
Approval of financial statements and holding AGM
Date of approval of financial statements by BoD: 28.04.2022 210-221
Date of 15th Annual General Meeting 9
Additional disclosures
Report on sustainable banking 171-173
Human resource accounting 177
Report on financial inclusion 178-179
Customer care 180-183
Corporate Social Responsibility (CSR) 184
Annual Report 2021

ITEM PAGE NO.

Government transactions and works related to social responsibility 185
Contribution to national economy 186
Awards and recognitions 194-195
Specific areas for banking sector
Disclosure of ratings given by various rating agencies for instruments issued
247-258
by / of bank e.g. FD, CD, tier 1 perpetual bonds
Details of advances portfolio classification wise as per the direction issued by
156-160,258-272
the central bank of the respective countries
Disclosure for non performing assets
Movement of NPA
Sector wise breakup of NPA 258-272,291
Movement of provisions made against NPA
Details of accounts restructured as per regulatory guidelines 266-272
Maturity pattern of key assets and liabilities (ALM) 221,248-258, 273-287
Classification and valuation of investments as per regulatory guidelines /
229-234,255-258,322-323,330-333
accounting Standards
Business ratio/information
Statutory liquidity reserve (ratio)
Net interest income as a percentage of working funds/operating cost
Return on average asset
Cost / income ratio
Net asset value per share
Profit per employee
127-133, 248-249
Capital adequacy ratio
Operating profit as a percentage of working funds
Cash reserve ratio / liquid asset ratio
Dividend cover ratio
Gross non-performing assets to performing assets
Details of credit concentration/ sector wise exposures 258-272
The break-up of 'provisions and contingencies' included in profit and loss
298-300, 311-312
account
Disclosure under regulatory guidelines 104-114,152-169,248-249,243-277
Details of non-statutory investment portfolio 230-237
Disclosure in respect of assets given on operating and finance lease 260
Disclosures for derivative investments 248, 255-258
Bank's network: List of branches 393-411
416
BRANCH NETWORK
WITH BANGLADESH MAP
Sonali Bank Limited GM Office Wise

Branch Network with Bangladesh Map
Serial Name of GM No. of Branches
No. Office (Including Corp.)
01 Dhaka-1 109
02 Dhaka-2 106
03 Mymensing 118
04 Sylhet 80
05 Faridpur 106
Indicates District Total Number of Branches
06 Chittagong 109 Indicates GM Headed Branch (3 in Dhaka City)
07 Barisal 78
08 Khulna 123
1. Local Office
09 Rajshahi 143 2. Bangabandhu Avenue Corp.
10 Rangpur 116 3. Ramna Corp.
11 Cumilla 139
TOTAL 1227
Annual Report 2021

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www.ampersand.com.bd
35-42,44 Motijheel Commercial Area, Dhaka-1000, Bangladesh

PABX :9550426-31, 33, 34, Fax: 88-02-9561410, 88-02-9552007
E-mail: itd@sonalibank.com.bd, SWIFT: BSONBDDH

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Sonali Bank Annual Report 2021 PDF

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YEAR OF EXPLORING

ANNUAL REPORT 2021

+ 223 + 92,030 + 0.02% - 1.05%

2021 2020 2021 2020 2021 2020 2021 2020

+ 104,364 + 4.55% + 0.49% - 0.25%

2021 2020 2021 2020 2021 2020 2021 2020

+ 115,569 + 58,383 + 0.05% +5.47%

2021 2020 2021 2020 2021 2020 2021 2020

Validity of Surveillance Rating Upto October 2022 Upto November 2021

140 Market Value Added Statement 199 Media Highlights 2021

141 Financial Calendar 2021 and 2022 200 Photo Gallery

142 Credit Rating

Auditors’ Report and

10 Corporate Vision and Mission 152 BASEL-III Compliance Report

28 Board of Directors & its committees 413 Standard Disclosure Index

Sub: Annual Report for the year ended 31 December, 2021.

(Md. Ataur Rahman Prodhan)

CEO & Managing Director

D³ mfvq Avcbvi m`q Dcw¯’wZ Kvgbv KiwQ|

cwiPvjbv cl©` Gi Av‡`kµ‡g

Annual Report 2021

Socially committed leading banking

Annual Report 2021

INTEGRITY TEAM WORK

EXCELLENCE SELF RELIANCE

Annual Report 2021

STRATEGIC OBJECTIVES OF SBL

Developing Human Resource Management System to

z Highest degree of ICT inclusion. reduction of ROA and ROE

Annual Report 2021

Annual Report 2021

Legal Advisors of SBL

03 Mohammad Shafiqul Islam 04 Mr. Fayez Ahmed

Sonali Bank Limited

Name of the Date of No. of

Merchant banking, portfolio

Subsidiaries Remittance business,

Sonali Bank (UK) 07 December, GBP 61.46

Customize, enhance, modify

Annual Report 2021

CORPORATE Corporate organogram reflects the corporate governance culture of

DMD DMD DMD DMD DMD

AUDIT & INTERNATIONAL CENTRAL INFORMATION

Sonali Bank Ltd. Manpower:

20 Annual Report 2021

First annual report

1973 1980 1986

2014 2016 2018 2020

2015 1st position in Annaul

2011 Financial Institutions

2008 2013 Achieved Center for Large Tax Payers Unit

22 Annual Report 2021

02 Mr. A. K. N. Ahmed 27.03.1973 – 17.11.1974

03 Mr. S. A. Chowdhury (Current Charge) 18.11.1974 – 24.01.1975

04 Mr. K. A. Rashid 25.01.1975 – 12.03.1981

Sl. Chairman, Board of Directors, Sonali Bank Tenure

01 Mr. A. M. Zahiruddin Khan (MP) 15.04.1981 – 31.03.1982

02 Mr. S. A. Khair 19.05.1982 – 04.12.1985

03 Mr. Chowdhury A. K. M. Aminul Haque 14.01.1986 – 30.03.1986

04 Mr. Keramat Ali 20.04.1986 – 09.04.1989

05 Major General (Retd.) M. Shamsul Haque (MP) 23.04.1989 – 24.05.1990

06 Mr. Md. Abdur Rahim (MP) 04.06.1990 – 25.11.1990

07 Mr. Md. Akhtar Ali 26.12.1990 – 30.06.1991