Internship Report

ON

“General Banking Activities of Sonali Bank PLC”

Supervised By
Raihan Sobhan
Lecturer
Department of Accounting & Information Systems
Faculty of Business Studies
University of Dhaka

Submitted By
Shrewsee Saha Diba
Exam ID: 10875
Class ID: 24095
MBA Program
Department of Accounting & Information Systems
Faculty of Business Studies
University of Dhaka

Date of Submission: 02 April 2024

 Report On

“A Case Study of Sonali Bank PLC highlighting a

broader view of the general activities of the Bank.”

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 Letter of Transmittal
Date: 02 April, 2024
To,
Raihan Sobhan
Lecturer
Department of Accounting & Information Systems
University of Dhaka
Dear Sir,
It is a great pleasure for me to submit the internship paper on the topic of “General Banking
Activities of Sonali Bank PLC”. While preparing the internship paper, I have tried my level best
to maintain the required standard. I hope that this paper will fulfill your expectations.

I, therefore, pray and hope that you would be kind enough to go through this research paper for
evaluation.

Thanking you,

Shrewsee Saha Diba

Exam Id- 10875
Class Id- 24095
Department of Accounting & Information Systems
University of Dhaka.

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 Letter of Declaration

I declare that this written submission represents my ideas in my own words and where others’
ideas or words have been included. I have adequately cited and referenced the sources. I also
declare that I have adhered to all principles of academic honesty and integrity and have not
misrepresented or falsified any idea in my submission. I understand that any violation of the above
will be cause for disciplinary action by the institution and can also evoke from the sources which
have thus not been properly cited or from whom proper permission has not been taken when
needed.

Shrewsee Saha Diba

Class Id-24095
Exam Id- 10875

Date: 02 April, 2024

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 Acknowledgment

I would like to express my gratitude and appreciation to all those who gave me the possibility
to complete the report. Special thanks are due to my supervisor Mr. Raihan Sobhan whose help,
stimulating suggestions, and encouragement helped me at all times of the thesis process and in
writing this report. I also sincerely thank you for the time spent proofreading and correcting my
many mistakes.
I would also like to give special thanks to my family as a whole for their continuous support and
understanding when undertaking my research and writing my project. Your prayer for me was what
sustained me this far.
Finally, I would like to thank God, for letting me through all the difficulties. I have experienced
your guidance day by day. You are the one who let me finish my degree. I will keep on trusting you
for my future.

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Executive Summary
This study seeks to understand the General Banking Activities and practices carried out by Sonali
Bank PLC. By offering accessible banking facilities and customer-centric schemes, the bank has
earned the trust of customers, secured a significant market share, and established itself as one of the
leading banks in the country. The initial part of the report provides an overview of the content,
followed by a brief overview of Sonali Bank Limited, covering its historical background, branch
network, vision, and mission. The subsequent section details the project, outlining the general
banking activities of Sonali Bank Ltd. I have tried to present in detail the areas in which I got the
opportunity to work in general banking during the internship period. Following this, a section on
sustainability banking is included, focusing on integrated reporting and sustainability banking
principles. The experiences gained from the internship program are then discussed, and findings are
drawn from these experiences. In the findings section, the strengths and weaknesses of the branch
where I am employed are highlighted. Recommendations are made based on these findings and my
observation suggesting that the bank should invest in modern infrastructural facilities and enhance
its human resource management policy to achieve desired outcomes. Lastly, it is stressed that the
bank should take necessary actions to improve programs for the benefit of the general populace in
the future.

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 Table of Contents
Letter of Transmittal.......................................................................................................3

Letter of Declaration ......................................................................................................4

Acknowledgment ...........................................................................................................5

Executive Summary .......................................................................................................6

Introduction ....................................................................................................................8

Objectives of the Study ..................................................................................................8

Methodology of the Study..............................................................................................8

The rationale of the Study ..............................................................................................8

Chapter 01: Company Profile .......................................................................................9

Chapter 02: General Banking Activities of Sonali Bank PLC ....................................16

Chapter 03: Sustainability Banking & Integrated Reporting .......................................24

Chapter 04: Internship Experiences .............................................................................28

Chapter 05: Findings ....................................................................................................31

Recommendations ........................................................................................................33

Conclusion....................................................................................................................34

Reference......................................................................................................................34

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Introduction
In today's era, banks serve as the backbone of a country's economy, constantly modernizing and
expanding their reach in various financial activities. Banking processes are evolving to become
faster, more convenient, and more extensive. With the banking sector becoming increasingly
competitive, organizations are striving to enhance their service offerings for clients. Consequently,
individuals need to have a basic understanding of banking and its procedures. For my internship
program, I chose Sonali Bank Limited, a prominent scheduled bank known for its innovative
banking practices. As a requirement for completing my Master of Business Administration program
at Dhaka University, I've been selected to intern at Sonali Bank Limited's Green Road Branch for
three months. During this internship, I've been assigned to various departments including general
banking and loan and credit division. This report focuses on my practical experience with the
general banking activities of Sonali Bank Limited, approved by my supervisor.

Objectives of the Study

As part of my MBA program requirements, I am completing an internship report this spring in 2024.
This report is based on my chosen topic, "General Banking Activities of Sonali Bank PLC." I
believe that practical experience enhances theoretical knowledge. My interest in banking stemmed
from hands-on involvement rather than just theoretical learning. Therefore, this report reflects my
insights gained from practical experiences. However, the ultimate objective is to gather real
experience about the general activities of the Sonali Bank PLC.

Methodology of the study

This report focuses entirely on the short-term case analysis of Sonali Bank. It outlines my
observations and real experiences during a three-month internship period. The content of the report
is based on what I have observed during this time. Additionally, some secondary data has been
gathered from Sonali Bank's 2022 annual report and Wikipedia. The report consists of 4 chapters.
The first chapter contains the company profile, the second chapter contains general banking
activities, the third chapter contains sustainable banking and integrated reporting, and the fourth
chapter contains internship experience and findings from the entire program.

The rationale of the Study

My internship report, titled "General Banking Activities of Sonali Bank PLC," delves into the
products, procedures, performance, and revenue generated from general banking services at Sonali
Bank PLC. During my time in the General Banking Department at Sonali Bank, I found the tasks
to be engaging and interesting, which led me to choose this department for my report. General
Banking is a crucial department at Sonali Bank PLC, encompassing services related to deposits,
clearing, schemes, cash handling, and foreign remittances. This report primarily focuses on the
products and services offered by SBPLC, General Banking activities, a brief overview of the
associated procedures, some overview of sustainability banking activities along a brief overview of
integrated reporting. Integrated reporting is highly associated with the general activities of a bank
because it allows for comprehensive communication of the bank’s financial performance,

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governance, strategy, and social impact cohesively and transparently. For this reason, the part is
included here.

Chapter 01
Company Profile

❖ Short History
Sonali Bank, the largest commercial bank in the country, was established under Bangladesh Bank
(Nationalization) Order 1972 (presidency Order No.26 of 1972). By taking over branches of the
former National Bank of Pakistan, Bank of Bahawalpur Limited, and Premier Bank Ltd. There were
two private banks performing class banking over the century in that period and the National Bank
of Pakistan was the government-supported bank that was established to finance the jute sector in
East Pakistan in the early period of Pakistan. After the birth of Bangladesh on 16th December 1971,
the newly formed Sonali Bank for mass banking got special facilities from the government to work
on behalf of Bangladesh Bank in those areas where Bangladesh Bank was not available. With the
increase of commercial and performance within a few years, it has become the largest commercial
bank in the country with 1204 branches and about 21,839 up to now.
Soon after the independence of the country Sonali Bank Limited emerged as the largest and leading
Nationalized Commercial Bank by proclamation of the Banks' Nationalization Order 1972
(Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank, and Bank of
Bahawalpur. As a fully state-owned institution, the bank had been discharging its nation-building
responsibilities by undertaking government-entrusted different socio-economic schemes as well as
money market activities of its own volition, covering all spheres of the economy.
The bank has been converted to a Public Limited Company with 100% ownership of the government
and started functioning as Sonali Bank Limited on November 15, 2007, taking over all assets,
liabilities, and business of Sonali Bank. After corporatization, the management of the Bank has been
given the required autonomy to make the bank competitive and to run its business effectively.

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❖ The Corporate Profile of Sonali Bank PLC-

Name of Company Sonali Bank PLC

Registered Office 35-42, 44 Motijheel Commercial Aria, 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 03 June, 2007
Business
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 03 June, 2007
Registration
Company Registration No. C -67113(4605)/07
Authorized Capital BDT 60,000.00 Million
Paid of Capital BDT 45,300.00 Million
Face value per Share BDT 100.00 per Share
Shareholding Pattern 100% share owner by Government
Tax Identification No. (TIN) 465337943663
VAT Registration No. (BIN) 000000063
Chairman of the Board of Mr. Ziaul Hasan Siddiqul
Directors
CEO & Managing Director Mr. Md Afzal Karim
Head of Risk Management Mrs. Sanchia Binte Ali
Head of ICC Mr. Imran Ahmed
Chief Financial Officer Mr. Md. Iqbal Hossain ACMA. CFA.
Chief Information Mohammad Rezwan Al Bakhtiar
Technology Officer
Chief Audit Officer Mr. Imran Ahmed
Company Secretary Mr. Tauhidul Islam

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 ---Data Source- Annual Report 2022

Vision of Sonali Bank PLC

Socially committed leading banking institution with global presence.
Mission of Sonali Bank PLC
Dedicated to extend a whole range of quality products that support divergent needs of people aiming
at enriching their lives, creating value for the stakeholders and contributing towards socio-economic
development of the country.
Slogan
“ Credible and Smart. ”
Core values
➢ Ethics
➢ Accountability
➢ Objectivity
➢ Transparency
➢ Integrity
➢ Teamwork
➢ Excellence
➢ Self-Reliance
➢ Commitment
➢ Innovation
Strategic Objectives
➢ Increased focus will be placed on catering to the needs of the potential and unbanked
populace of the nation by expanding banking services to underserved regions, building upon
existing pilot projects.
➢ Enhancing corporate governance will involve bolstering positive corporate culture, fostering
motivation, providing training, and implementing supervision across all management tiers.
➢ Achieving competitive advantages through reducing overall costs in comparison to
competitors.
➢ Creating a Human Resource Management System to incentivize and retain employees, while
also converting human resources into valuable human capital through comprehensive
training across all aspects of the work environment.
➢ Maintaining our leading position by delivering excellent customer service.
➢ By segment, scale, economic objective, and geographic distribution, we aim to broaden
tailored retail services and financing options for SMEs, microfinance ventures, and female
entrepreneurs.
➢ Allocating resources towards the key and prioritized sectors of the economy.
➢ Optimizing cost control across all operational levels by enforcing budgetary measures and
maximizing revenue through high-quality services and diversification of products.

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 ➢ Offering flawless and continuously improving customer services by implementing
innovative technologies.
➢ Ensuring a robust internal control and compliance culture by establishing a solid control
environment and fostering sound compliance practices within the Bank.
➢ Striving for excellence in serving the needs of the least developed communities and regions.
➢ Establishing a strong and efficient risk management culture within the Bank to protect
banking assets and safeguard the interests of depositors and other stakeholders.
➢ Enhancing the composition of deposits by ensuring that the proportion of inexpensive and
free-of-charge deposits remains substantial within the overall deposit pool, thus fortifying
the business with ample funding.
➢ Guaranteeing committed support to government functions as the treasury and handling
government financial transactions (including receipts and disbursements) to attain
anticipated economic expansion.
❖ Branches and Subsidiaries
Amount
1. Total No of Branches 1232
a) No of Foreign Branches 2
b) No of Local Branches 1230
I. No of Rural Branches 695
II. No of Urban Branches 535
2. No of GM Offices 18
3. No of Principal Offices 69
4. No of Regional Offices 0

❖ The Organogram of Sonali Bank

The organogram of Sonali Bank shows the hierarchical structure and relationships among
different departments, divisions, and positions within the Bank. It shows the chain of command,
reporting lines, and the roles and responsibilities of the personnel or units within the
organization.

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 Board of Directors

Chief Executive Officer & Managing Director

(CEO & MD)

Deputy managing Director

(DMD)

General Manager
(GM)

Deputy General Manager

(DGM)

Assistant General Manager

(AGM)

Senior Principal Officer

(SPO)

Principal Officer
(PO)

Senior Officer
(SO)

Officer

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❖ Product & Services
In addition to normal banking operations, it offers multiple special services with its network of
branches throughout the country.
➢ Collection:
✓ Gas bills
✓ Electricity bills
✓ Telephone bills
✓ Water/Sewerage bills
✓ Municipal holding tax
✓ Passport fees, visa fees, and travel tax
✓ Customs & Excise duties
✓ Source tax and VAT
✓ Jakat fund
✓ Hajj deposit
✓ Land development tax
➢ Payment:
✓ Pension of employees of Government and other Corporate Bodies
✓ Bangladesh Bank employee's pension
✓ Army pension
✓ British pension
✓ Students’ stipend/scholarship
✓ Govt & Non-Govt Teachers’ salary
✓ Food procurement bill on behalf of the Govt.
➢ Social Services:
✓ Old age allowances
✓ Widows, divorcees, and destitute women's allowances
✓ Freedom Fighters’ allowances
✓ Rehabilitation allowances for acid survival women
✓ Maternal allowances for poor women
✓ Disability allowances
➢ Sales & Encashment/Purchase
✓ Savings Certificate
✓ ICB Unit Certificate
✓ Prize bonds
✓ Wage Earner’s Development Bonds
✓ US Dollar Premium & Investment Bond
✓ Lottery tickets of different Semi-Govt. and Autonomous Bodies
✓ Sanchaypatra
✓ Public Service Commission’s application form
✓ Judicial Service Commission's application form
✓ Exchange of soiled/ torn notes

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 ➢ Miscellaneous Services
✓ Bank a/c information of tax payee client according to demand of NBR.
✓ Local Governance Support Project
✓ Enlist of Non -Governmental Insurance company
These are the general and special functions of Sonali Bank. But the area of these functions varies
from branch to branch. Not all branches do all kinds of work. Again, any branch can do more
specialized work. However, what type of activities are conducted by respective branches depends
on the size of the branch, internal working environment, skills and quality of work of employees,
departmental coordination system, infrastructural facilities, financial support, Bangladesh Bank
order, and so on.

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 Chapter 02
General Activities of Sonali Bank PLC
General Banking Activities
The general banking division of a bank provides various avenues for clients to deposit and transfer
their funds, aiming to incentivize them through diverse options. While these offerings may largely
resemble those of other banks, the quality of customer service and available facilities can vary. Each
branch of every bank is mandated to maintain a general banking department, which primarily
focuses on essential banking functions such as collecting customer deposits. The general banking
department is primarily tasked with expanding the customer base, serving as the initial point of
contact for clients, and providing essential banking services. Sonali Bank's principal branch
encompasses all necessary sections within its general banking division.
Such as-
➢ Accounts Opening Section
➢ Cash Section
➢ Deposit Section
➢ Bills and Clearing Section
➢ Remittance Section
➢ Accounts Section
➢ Loan and Advance Section
➢ Foreign Exchange Section

Accounts Opening Section

Account opening serves as the entry point for clients to engage in transactions with the bank,
forming the cornerstone of the relationship between the bank and its customers. Through this
department, clients have the opportunity to establish various types of accounts.
Current Account
A current account allows account holders to conduct multiple transactions throughout a business
day without restrictions on the number of deposits and withdrawals, as long as funds are available.
Since the bank is required to repay these deposits upon demand, no interest is typically paid on
balances in this account. Current accounts are commonly utilized by businesses and traders for
convenient and unrestricted transactions.
Requirements for opening a current account
Some requirements have to be completed for opening an account-
1) Proprietorship Firm:
There is an account opening form for proprietorship firms provided by Sonali Bank Limited.
For this account, a customer must need to submit the following papers with the form:
➢ Introduction of the account.
➢ Two photographs of the signatory's duty attested by the introducer.

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 ➢ Copy of trade license.
➢ Seal of concern.
2) Partnership Firm:
There is an account opening form for a partnership firm provided by Sonali Bank Limited. An
introduction to running an account is given in this form.
Enclose Documents for the partnership account:
➢ Introduction of the account.
➢ Two photographs of the signatory's duty attested by the introducer
➢ Partnership letter duty signed by all partners.
➢ Partnership Deed duty certified by Notary Public.
➢ Copy of Registration (if any).
➢ Seal of the concern.
➢ Update Trade License.
3) Limited Company:
A specific account opening form is utilized for limited companies, which can fall into two
categories. Banks consistently exercise caution when opening such accounts, ensuring thorough
examination of the documents submitted by clients to maintain legal compliance and safeguard their
position.
Enclosed Document for Limited Co. Account:
➢ Introduction of the account.
➢ Two photographs of the signatory's duty attested by the introducer.
➢ Signature and seal of the client.
➢ Trade license.
➢ Certified copy of memorandum and articles of association.
➢ Certificate of incorporation.
➢ Broad resolution for opening account duty certified by the chairman/ managing director.
➢ List of directors along with designation and specimen signature.
➢ A certificate from the registrar of a joint stock company is entitled to commence business (in
the case of a public Ltd. Company.)
➢ Certificate from a broad of investment (in case of a joint venture or foreign Co), Work permit
order from the ministry of industry (In case of foreign nation), Join venture agreement (in
case of joint venture).
Savings Account
A savings account (SB) serves as a tool for individuals from lower and middle-income brackets who
aim to set aside a portion of their earnings for future needs and seek to generate income from their
savings. Account holders can deposit funds into their savings accounts as frequently as they desire.
However, withdrawals are limited to two transactions per week, with a maximum withdrawal limit
of TK 20,000 per transaction without prior authorization from the bank. Interest is accrued on the

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deposited amount at a specified rate and is credited to the account holder periodically. Typically,
holders of such accounts include students, teachers, employees, and householders.
• Procedures for Opening a Savings Deposit (SD) A/C:
➢ Only savings or current account holders can be introducer of the applicant.
➢ The introducer has to submit two recent passport-size photographs. The introducer needs to
mention his/her account number here.
➢ A minimum BDT 1200 is needed to open SD A/C.
➢ In the case of a public or private limited company the authorized people should signify their
consent by putting a signature where it is necessary.
➢ For joint accounts, the signatures of all the account holders are necessary.
Fixed Deposit Account
Fixed deposits are sums of money deposited with a bank for a predetermined period agreed upon in
advance. Banks do not hold cash reserves against these deposits, allowing them to offer higher
interest rates. Typically, these deposits comprise at least 50% of the total deposits held by the bank.
Customers can usually open such accounts for a specified duration, with the interest rate varying
based on the agreed-upon terms. If a depositor seeks to withdraw funds before the agreed-upon
period ends, they may not receive the full entitled interest rate.
Issuing Cheque Book
The process for obtaining a cheque book involves several steps. Initially, the customer fills out a
requisition form. Subsequently, the bank verifies that all pages of the cheque book and the bank
requisition slip are present. The customer's name and account number are then written on the cover
page and requisition slip of the cheque book. The customer's details are recorded in the cheque book
register corresponding to the specific series of cheque books. Following this, an authorized officer
signs the register, cheque book, and requisition slip. Upon completion, the cheque book is handed
over to the customer, who acknowledges receipt of the requisition slip and the register book. A cover
file containing the requisition slip is maintained as a record. If any defects are identified by the
ledger keeper, they are noted on the requisition slip, which is forwarded to the cancellation officer
for a decision on whether a new cheque book should be issued.
Procedure of Closing an Account:
A customer has the option to close their account at any time by submitting an application to the
branch. Upon closure, the customer is required to draw a final check for the remaining balance in
their account, minus any closing and incidental charges, and return any unused cheque leaves. The
account is then debited for the applicable closing charges, and any unused cheque leaves are
destroyed by an authorized officer of the bank. For joint accounts, the closure application must be
signed by all joint account holders.

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 Cash Section
A commercial bank functions as a financial institution where individuals can deposit their excess
funds and later withdraw them using various means such as checks or other instruments. Within the
operations of a bank, the cash department holds significant importance, as it primarily facilitates
the core functions of the bank. Some functions of the cash section are- Cash Receiving Procedures,
Cash Payment Procedures, Passing the Cheque, and Dishonor of Cheque.
Deposit Section
Deposits are the primary source of sustenance for banks, a fact evident from the historical evolution
of banking systems. The core function of a bank traditionally revolves around collecting deposits.
Within the deposit section, bank officers meticulously manage customer accounts, assigning unique
code numbers to each account. These officers oversee three main types of transactions: cash
handling, clearing, and transfers.
This section performs the following tasks:
➢ Post kind of transactions.
➢ Provide on-demand reports.
➢ Cheque maintenance.
➢ Preparation of day transaction position.
➢ Preparation of closing monthly transaction position
Types of Deposit by Sonali Bank
A bank has to collect deposits from various sources to operate its activities successfully as well as
to satisfy national objectives. Sonali Bank has deposits of the following types:
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),
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.

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 Bills and Clearing Section
To ensure the safety and security of financial transactions, people utilize instruments like Demand
Drafts (DD), Postal Orders (PO), and checks. Commercial banks undertake the responsibility of
collecting these financial instruments on behalf of their customers. This process, known as clearing
and collection, involves banks gathering and processing these instruments. In Dhaka, Bangladesh,
the Bangladesh Bank serves as the Clearing House for all banks. In areas where the Bangladesh
Bank is unavailable, Sonali Bank fulfills this role on behalf of the Bangladesh Bank. The primary
task of this section is to collect instruments on behalf of customers through various channels such
as the Bangladesh Bank Clearing House, Outside Bank Clearing (OBC), and Inter-Branch Clearing
(IBC).
Upon receipt of the instruments this section examines the following things:
➢ Whether the paying bank within Dhaka city.
➢ Whether the paying bank outside of Dhaka city.
➢ Whether the paying bank is its branch.
Remittance Section
The process of transferring money from one branch of a bank to another branch within the same
bank, or from one bank to another either domestically or internationally, is referred to as remittance.
This is a crucial aspect of banking operations. Banks can generate significant income through
commissions charged for facilitating remittance transactions. A person sending money (remitter)
can choose any financial institution with branches in both the sender's and recipient's countries. In
such cases, the bank in Bangladesh receives the funds from its foreign branches and then transfers
them to the desired bank where the recipient intends to withdraw the money.
Pay Order and Demand Draft (DD) is the part of local remittance function. During my internship
period, I gathered some practical experience in pay order and DD applications handled by bankers.
Pay- Order (PO):
A payment order is a tool used for transferring funds within a specific local area, typically within
the same clearing house jurisdiction. For instance, when we need to send money from one location
to another within Dhaka, we commonly utilize payment orders.
Demand Draft (DD):
A draft is a document issued by one bank office or branch to another, or a different bank's branch,
authorizing the payment of a specified amount to a named individual. It's commonly employed for
transferring funds from one part of the country to another. For instance, if we need to send money
from Dhaka to Khulna, we often use a Demand Draft (DD). DDs are widely favored for transferring
funds across different regions of the country.
Difference between Pay-Order and Demand Draft:
There are some differences between the pay order and demand draft. These are given below-
In the case of a demand draft, both the payer and payee need to have accounts. But there is no
certain rule for pay order.

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 ➢ PO is used in the same clearing areas; DD is used for all kinds. DD cannot be done in the
same clearing area.
➢ DD is drawn on a certain bank office. But there is no certain rule for pay order (PO).
Account Section
This department holds significant importance for every business. It's a crucial section within a
commercial bank. Here, records of transactions from all departments are meticulously maintained.
The Accounts section ensures accuracy in financial amounts and transaction details. Each day, all
accounts are thoroughly checked and balanced to rectify any discrepancies.
The overall activities of the account section are as follows:
➢ Record all transactions in the cash book.
➢ Record all transactions in general and subsidiary ledger.
➢ Prepare daily fund function, weekly position, periodic statement of affairs, etc.
➢ Prepare necessary statements for reporting purposes.
➢ Make salary statement and pay salary.
➢ Pay all expenditures on behalf of the branch.
➢ Branch-to-branch fund remittance and support for account treatment budgeting for a branch.
➢ Make charge for different types of duties.
During my internship period, I also gathered some experiences by observing the account section
activities. Sometimes, I was employed by an accounts officer to accomplish some duties such as
preparing voucher index in a register, voucher filing in their respective files, etc.
Loans and Advance Section
In the realm of commercial banking, both deposits and loans hold significant importance. To thrive
in the market, banks must effectively manage the funds deposited with them, directing them towards
profitable ventures. Consequently, the handling of loans becomes a critical aspect of a bank's
operations.
General Advance:
This segment serves as the backbone of a bank's operations, as its success directly impacts the bank's
survival. It is crucial because it constitutes the primary revenue-generating unit for the bank. Bank
loans play a pivotal role in stimulating economic growth within a nation. If this division fails to
operate effectively, it could lead to the bank facing bankruptcy. Without sufficient financial support
from banks, maintaining a stable economy and fostering growth becomes unattainable. Banks
attract deposits from customers by offering interest and ensuring the safekeeping of their funds. The
fundamental method through which banks provide interest to clients is by issuing loans.
Why does the bank provide advances to the borrowers-
1. To earn interest from the borrowers and give the deposit interest back.
2. To accelerate economic development by providing different industrial as well as
agricultural advances.
3. To create employment by providing industrial loans.
4. To pay the employees as well as meet the interest groups.

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The process of credit is ongoing, as the repayment of one loan leads to the issuance of another.
Through this cycle of circulating funds, banks generate revenue in the form of interest. Banks have
various avenues for investing their funds, including providing loans and advances to traders,
entrepreneurs, and industrialists. Furthermore, the characteristics of credit can vary based on factors
such as security requirements, disbursement provisions, and terms and conditions.
Classification of Loans & advances:
Sonali Bank offers the following types of loans and advances;
1) Secured Overdraft (SOD)
2) Cash – Credit (CC)
3) Mid- term loan
4) Demand loan
5) Small loan
6) Customer loan
7) Industrial loan
8) Bills purchased & discounted
9) Staff loan.
10) House building loan
11) Transport loan
Secured Overdraft (SOD)
A secured overdraft is a perpetual credit facility where customers can draw funds exceeding their
current account balance, up to the limit approved by the bank. Interest is levied solely on the
withdrawn amount, not on the approved limit. Sonali Bank has granted secured overdrafts against
various forms of security.
Procedure of Sanctioning SOD:
i. The party should have a current account with the branch.
ii. In the case of a proprietorship firm, a trade license must be submitted and in the case of a limited
company, all the documents required to open a current A/C should be submitted. The financial
statements of the concerned firm should also be submitted.
iii. The party will apply to the concerned officer in the prescribed form.
iv. The officer will prepare a “Credit Appraisal”, where he writes about the business concern, details
of proprietors/ directors of the concern, management structure, the existing credit facilities, the
particulars about the facilities that asked for – such as margin limit, date of expiry, details of
security, and any other relevant information with a proposal to send it to the head office, General
advances Division for approval.
v. Head office will examine the proposal and if it seems to a viable then the loan will be sanctioned.

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 Another Banking Activities
Digitalized banking
In line with the current digital landscape, SBPLC has implemented various technological
advancements such as a Core Banking System, Mobile Banking, SMS Banking, Online Any Branch
Banking (ABB), and RMS Plus. These initiatives aim to enhance operational efficiency and
ultimately improve service delivery to our esteemed customers. By streamlining our IT
infrastructure and enhancing automation, we aim to create a conducive environment while freeing
up our frontline staff to focus more on customer interaction. Digitization efforts have also simplified
our application and documentation procedures, facilitating quicker and easier account opening for
new customers. The implementation of Core Banking Solution (CBS) software across 1,229
branches has integrated banking activities, streamlined functions, enhanced security measures
against fraud and forgery, and most importantly, enhanced customer service.
All over digital banking services of Sonali Bank-
1) Sonali Bank Mobile Apps
2) Sonali eSheba
3) Sonali eWallet
4) Sonali Home
5) Binimoy Service
Sonali e-Sheba and Sonali e-wallet
During the COVID-19 pandemic in 2020, Sonali Bank launched "Sonali e-Sheba," allowing clients.
to open accounts remotely from their homes for the welfare of the nation and its citizens. As part of
its ongoing efforts, the bank also rolled out the "Sonali e-wallet," enabling clients to conduct various
transactions, such as transferring funds to any account, and paying bills, and taxes, among other
functionalities
Locker Service
Secured Locker Service is provided in some branches of Sonali Bank Limited. Customers may avail
of this service and secure their valuables.
Locker size Yearly Charge (Tk.) Security Deposit (Tk.)
Small (4.7" x 7" x 23.50") 2,500.00
Medium (4.7" x 14.33" x 23.50") 3,000.00 5,000.00 (refundable)
Large (9.4" x 14.33" x 23.50") 4,000.00

Islamic Banking
SBPLC is emphasizing Islamic Banking due to its increasing prominence in the banking industry.
The bank's "Islamic Banking Division" effectively operates across 58 branches using the "Ababil
Islamic Core Banking Solution," showcasing successful business management in this sector.

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 Chapter 03
Sustainability Analysis and Integrated Reporting of the Bank
Sustainability Banking
SBPLC prioritizes sustainability as a fundamental aspect of its overall business strategy, which is
deeply ingrained in its operations. The bank acknowledges that sustainability forms the essence of
its corporate strategy, emphasizing the integration of social and environmental responsibility
throughout its business processes and engagement with stakeholders. Recognizing its potential to
generate both social and corporate value, SBPLC integrates sustainability seamlessly into its
strategic decision-making processes. This approach enables the bank to support environmentally
and socially responsible initiatives, adopt innovative technologies, and promote sustainable
enterprises. As a leading bank, Sonali Bank PLC incorporates environmental and social
considerations into its product design, mission policies, and overall strategies, reflecting its
commitment to sustainability.
The mission of Sonali Bank PLC in Sustainable Banking
The mission of Sonali Bank PLC in achieving a sustainable economy incorporates the strategy and
policy of the government which includes:
➢ Poverty alleviation through contributing to the socioeconomic development of the country.
➢ Achieve food security by promoting sustainable agriculture and by enhancing facilities in the
transactions of the farmers.
➢ Support quality education and facilitate the school-going students.
➢ Create awareness among its employees and valued clients for a pollution-free Bangladesh.
➢ Sustainable and gradual positive financial growth through financing established and
promising sectors.
➢ Uphold customer care and responsible financial services.
➢ Build a balanced and green Bangladesh by protecting forests and by combating
desertification.
➢ Promote peaceful and inclusive societies for sustainable development.
➢ Corporate infrastructure and culture in the institution.
Sustainable Development Goal
❖ Customers- “We show our customers that we are on their side through service excellence,
supporting financial wellbeing, good customer outcomes and advocacy, and digital
innovation.”
❖ Community- “We are rebuilding trust and our reputation by engaging proactively and
openly with government and regulators, investing in communities and education, and
rolemodelling reconciliation.
❖ People- “We motivate our people through leadership and engagement, by promoting health,
wellbeing, diversity and inclusion, and by providing training and career development.”
❖ Shareholder- “We deliver sustainable financial performance through strong conduct,
culture, governance, accountability, remuneration, and responsible business practices.”

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In-house Environmental Management
The company introduced an in-house environmental management system aimed at minimizing
wastage and optimizing the efficient use of water, paper, electricity, and fuel. This initiative included
the issuance of a "Green Office Guide" with specific instructions, outlined in Circular Letter-411
(Risk Management Department Circular Letter-03) dated September 23, 2012. As per the
guidelines, all offices and branches were instructed to assess their usage of water, paper, electricity,
and fuel and maintain it within designated limits.
Green Marketing
In our marketing efforts and customer service provision, we aim to emphasize our products'
advantages and disadvantages. Additionally, we carefully evaluate ongoing and potential projects,
assessing their environmental safety and risk factors before approving any loans.
Staff Training, Creating Consumer Awareness, And Green Banking Activities
Adhering to environmental regulations, we encourage individuals to manage their business and
financial operations responsibly, actively engaging them in environmental conservation efforts. The
Sonali Bank Staff College is progressively arranging training sessions focused on green banking.
Developing Sector-Specific Environmental Policy
SBPLC adheres to the Bangladesh Bank's Environmental Risk Management (ERM) guidelines as
well as the Environmental Conservation Act of 1995 (ECA 1995), Environmental Conservation
Rules of 1997 (ECR 1997), and other pertinent regulations. We formulate Sector-Specific
Environmental Policies tailored to various environmentally sensitive sectors such as agriculture,
agribusiness (poultry and dairy), aquaculture, leather (tannery), fisheries, textiles and apparel,
renewable energy, pulp and paper, sugar and distillery, construction and housing, engineering and
basic metals, chemicals (fertilizers, pesticides, and pharmaceuticals), rubber and plastic industries,
hospitals/clinics, chemical trading, brick manufacturing, ship breaking, and jute and jute goods
production. We are also in the process of developing evaluation tools to assess businesses that
receive financing and ensure proper monitoring. Our policy discourages funding projects
categorized as environmentally hazardous or falling under the "red category."
Social Impact of Sustainable Banking
Considering our significant concerns, we have pinpointed the Sustainable Development Goals
(SDGs) that hold the most relevance for our business and stakeholders.
Employees and Talent Management
To become the top choice retail and commercial bank for our customers, our starting point is our
employees. When they feel a sense of pride in being part of SBPLC and are fully dedicated, they
can secure the long-term loyalty of our customers. SBPLC is dedicated to attracting and retaining
top talent, ensuring our professionals are motivated, committed, and compensated fairly. Our
employees embody our corporate culture, centered around fulfilling our purpose of aiding
individuals and businesses in thriving, while consistently conducting business in a straightforward,
personalized, and equitable manner.

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 New Financial Inclusion
SBPLC’s goal for financial inclusion
A Financial Literacy wing was formed in the bank on 08 December 2022 to implement Vision 2041
of the Bangladesh government and to achieve SDGs announced by the United Nations by 2030 as
well as to ensure National Financial Inclusion Strategy (2021-2026). To achieve steady and fair
economic growth by a wide range of financial inclusion, following prior policies has been
developed.
➢ Access to all households to a full range of financial services at a reasonable cost and time.
➢ Extension of banking services and products to un-banked and underprivileged people
➢ Being responsive and support quickly to the government’s growth strategy and Bangladesh
Bank’s policy.
➢ Include different classes of people by introducing new products.
➢ Financing in agriculture, SMEs, and environment-friendly activities.
➢ “School Banking” is introduced to make the habit of saving by students from school from
their early age.
➢ Financing higher education and overseas employment to take the country ahead in the near
future.
➢ Good governance by clear regulation and industry performance standards.
➢ Financial and institutional sustainability to ensure stability and certainty of return on
investment
List of new financial inclusion program
Sonali Bank PLC is the leading bank by progressing successfully towards the goal of its financial
inclusion program. Some of these are as follows:
1) Farmer’s Account
2) Social Safety Net Program
3) Freedom Fighters Account
4) School Banking Account
5) Small Life Insurance Program
6) RMG sector account
7) Others account
Role of SBPLC in enhancing financial inclusion
➢ Being the helping hand of the Government's inclusive growth strategy, SBPLC has taken
financial Inclusion as the utmost priority for accelerating economic growth.
➢ SBPLC has extended lending to the under-served/un-served economic sectors.
➢ Provides credit facilities to SME entrepreneurs, agricultural and other rural and urban farm
and nonfarm productive activities throughout the country.

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 ➢ For the physically and mentally disabled people, SBPLC has taken comprehensive
programs.
Corporate Social Responsibility
Sonali Bank PLC, a leading state-owned commercial bank, actively participates in social and
philanthropic endeavors to support disadvantaged individuals in the country. Through corporate
responsibility initiatives, the bank aims to achieve balanced and sustainable outcomes for its
customers, communities, and employees. Sonali Bank is committed to bringing about sustainable
social change for the less fortunate and underprivileged members of society, prioritizing the interests
of marginalized individuals. Its widespread CSR activities have significantly impacted the lives of
thousands from underserved communities. These initiatives encompass various areas such as
education, healthcare, and infrastructure development in both urban and rural settings. The bank
provides scholarships to students at different levels of education, including SSC, HSC, and higher
studies in fields like medicine and engineering, based on merit. Additionally, Sonali Bank
contributes to the construction of educational institutions and clinics, and assists hospitals in
acquiring medical equipment. During winter, the bank distributes blankets to those in need as part
of its CSR program. Furthermore, Sonali Bank supports various organizations to raise awareness
on social issues for the advancement of society.

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 Chapter 04
Internship Experience
I was selected as an intern at Sonali Bank Ltd.'s Green Road Branch in Dhaka. During my internship,
I had the chance to engage in various general tasks at different intervals. This branch stands out as
the sole provider of foreign trade services in the surrounding area, despite the presence of numerous
other branches nearby.
❖ General Functions of the Branch
The main divisions of General Banking activities of the branch are-
➢ Account opening section
➢ Remittance section
➢ Bills and clearing section
➢ Cash section
➢ Loan section
➢ Sanchaypotro, Pay Order & DD section
➢ Foreign Trade
In addition to general banking, the branch where I was employed provided some special services to
its clients. The overall functions of the Green Road Branch are-
General banking Lone & Advance Foreign Business

Savings Account General Home Lone Export/Import

Current Account Home Lone for Govt. Foreign Remittance Account

Service Holders
SND Account Personal Lone Passport Endorse

Deposit Skim Account, FDR OD Against Deposit Skim Foreign Remittance

Transaction

Sonali e-service, OD Against FDR Students Banking

Debit/Credit Card
Sonali Bank e-wallet Small & Medium Enterprise
Loan
BEFTN & RTGS and CMSME, CSMME
Locker Service (Women Entrepreneurs)
Cash Withdrawn Using QR Cash Credit
Code Without any
Check/Card
Opening an Account Staff Lone

Passport Free, e-challan, Agricultural Lone

Sanchaypotra, DD, Pay Project Lone, Agricultural

Order Project Lone

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 Foreign Remittance, Online Microcredit
Banking, School Banking.

Lessons Learned from the Internship Program

Account Opening Section
In the realm of general banking, the account opening department holds significant importance. It
serves as the cornerstone of banking operations, marking the initiation of a relationship between a
bank and its clients. The foundation of the banker-client relationship is laid in this department. Right
from the onset of my internship, I had the chance to engage in and witness various tasks within this
section, gaining valuable practical insights and experiences. Various activities are conducted and
managed within this department.
➢ Opening of different types of accounts.
➢ Issue of a checkbook.
➢ Receiving check order.
➢ Giving Non-MICR checks in the absence of a formal checkbook. Generally, after opening a
bank account it takes one month to get a formal check book.
➢ Transfer and closing of account.
➢ Enquiry of account.
Among these activities, I was employed to accomplish a few duties. Such as-
✓ Creating various account forms for clients, ensuring they're properly stamped and include all
necessary official documents.
✓ Organizing and storing filled account forms securely after carefully reviewing each document
for accuracy and completeness, as they contain sensitive client information.
✓ Scanning client signature cards and entering the signatures into the system in two stages,
maintaining a systematic process.
✓ Printing out and attaching NID verification cards to respective client account forms with
appropriate seals and authorization.
✓ Verifying the presence of required authorization seals from relevant offices on the forms.
✓ Issuing checkbooks and maintaining the full procedure.
✓ Recording incoming check orders in a register.
✓ Upon receiving ordered checkbooks, put the account holder's name and account number in
the register in sequential order of checkbook serial numbers.
✓ Preparing and providing Non-MICR books to clients upon request, especially when formal
checkbooks take longer than a month to be prepared, allowing clients to withdraw urgent
cash in the interim.

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Sanchaypotro, Pay Order & DD section
➢ Within this department, there are opportunities for me to handle tasks involving pay orders and
demand drafts (DDs). This includes preparing pay orders and DD checks under the guidance of
the section's officer. I input the necessary information onto the checks and include the required
numbers from the pay order and DD forms as requested by clients.
Bills and Clearing section
➢ I've managed certain billing tasks, such as creating a voucher index in a register and organizing
vouchers in the appropriate files based on the type of transaction.
Loans and Advance Section
✓ In this department, I learned about the loan sanctioning process, the documents needed for a
loan application, the types of documents required, their significance, and how the bank ensures
the security of the loan.
✓ I also observed a special loan service called SOD loan, which is granted to clients who have a
fixed deposit account with the bank. This loan allows clients to withdraw money urgently from
their fixed deposit accounts, which serve as collateral for the bank. This arrangement benefits
both the clients and the bank.
✓ Another service I witnessed is RTGS (Real Time Gross Settlement). I had the opportunity to fill
out an RTGS form. This service enables clients to transfer amounts above 50,000 instantly from
one bank to another anywhere in Bangladesh. RTGS facilitates quick online fund transfers.
✓ Additionally, I observed the procedures for obtaining personal staff loans and home loans,
including the required documentation for loan approval.

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 Chapter 05
Findings
In a significant step towards realizing the government's vision of a smart economy, Sonali Bank,
the country’s largest state-owned bank, has adopted cutting-edge technologies across both
conventional and digital platforms. This move underscores the bank's commitment to offering top-
tier services and embracing the modern banking era.
Some glorious performances in recent decades are given below-
Financial Achievement in 2022
Sonali Bank, the largest state-owned bank in the country, has experienced its best-ever year in 2022,
excelling in all major financial indicators thanks to an increase in performing loans in small segment
businesses.
➢ According to the bank, Net Interest Margin (NIM), the difference between interest expense and
earnings, turned positive for the first time last year. NIM was negative Tk979 crore in 2021,
which turned to positive Tk300 crore in the last year.
➢ The interest income of the bank increased by nearly Tk1,400 crore in the last year from the year
before. At the same time, expenditure on deposits declined by Tk500 crore in the last year from
2021. The bank also made the highest profit of Tk371 crore in 2022, up from Tk345 crore a year
ago.
➢ The rate of NPLs declined to 14.83% in December last year from 17.32% in the same period of
the last year, according to the bank's annual report.
➢ The Advance Deposit (AD) ratio increased to 60% in the last year, which had dipped to 47% in
2020.
➢ Performing loans increased mostly in the Cottage, Micro, Small, and Medium Enterprises
(CMSME) sector in the last year.
➢ The deposit size of the bank stood at Tk1.42 lakh crore in the last year, 5% higher than that in
the previous year, according to the bank's annual report.
Technological Achievement
➢ Aligning with the digital strategy of the government, Sonali Bank has been quick to adopt the
latest technologies. the recent introduction of QR (quick read) code as an alternative to traditional
paper cheques for transactions. From now on, any account holder can operate the Sonali e-Wallet
app from anywhere. Through the app on Android and iOS platforms, users can pay bills and
transact with mobile banking.
➢ Sonali Bank has introduced electronic registration of customers to enable expatriates to open and
maintain Sonali Bank accounts while abroad.
➢ In terms of service delivery, Sonali Bank maintains a zero-tolerance mode. Among state-owned
lenders, Sonali Bank has introduced the first-ever call center (16639) where anyone can learn
about the service of the bank

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Social Achievement
➢ Sonali Bank offers 37 services free of cost under the social safety net program of the government,
benefiting marginalized people. In agricultural loans, Sonali Bank has achieved a cent percent
target in each financial year.
➢ Sonali Bank would focus on sub-branches instead of agent banking for expansion for inclusive
banking with full-fledged services.
➢ Sonali Bank has enrolled with the government's universal pension scheme as a payment gateway
partner.
Besides the overall progress of Sonali Bank PLC in recent years, I also experienced some progress
in my branch where I was employed for 3 months. After screening the whole internship program, I
have figured out the achievements of my branch which I mentioned here as findings:
➢ The branch office lacks sufficient space to accommodate the daily operations, workforce,
and customers. A bank requires a broader and more spacious area considering its activities
and clientele.
➢ The branch's infrastructure is subpar, leading to demotivation among employees when
performing their duties.
➢ Sonali Bank generates a significant income from the remittance sector. Additionally, since
my branch exclusively handles foreign trade, it also earns a substantial amount from this
sector.
➢ The branch diligently adheres to Bangladesh Bank regulations regarding check issuance and
loan approval processes.
➢ All staff members, including the Assistant General Manager, are courteous and helpful,
fostering a peaceful environment where everyone maintains good relationships with each
other.
These innovations and successes reflect Sonali Bank's proactive approach to fulfilling the
government's vision for a smart economy, making banking accessible, convenient, and beneficial for
all.

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Recommendations
The overall progress of Sonali Bank is very satisfactory. Despite this, some areas require to go
through a development and reformation process to strengthen their competitive position. Those
recommendations are written below-
✓ A few branches require additional space to streamline their operations and better
infrastructure to enhance the working environment.
✓ Sonali Bank ought to introduce a comprehensive and adaptable career advancement policy
for its employees and staff.
✓ There is a necessity to improve Sonali Bank Ltd.'s promotion policy to ensure employees
remain motivated and enthusiastic.
✓ Implement comprehensive training programs for employees to improve customer service
skills. Emphasize the importance of prompt and courteous service to enhance customer
satisfaction and loyalty.
✓ Invest more and more in modernizing the bank's technological infrastructure to streamline
operations, reduce processing times, and enhance security. Already technological
advancement has shown in providing customer service but to operate the core banking
activities, there is a lack of advancement in technology. Some progressive steps should be
taken to facilitate the digital work environment.
✓ Strengthen risk management practices to mitigate operational, credit, and compliance risks.
This involves establishing robust risk assessment frameworks, implementing effective
internal controls, and regularly monitoring and reporting risk exposures.
✓ More diversified product offerings to cater to the evolving needs of customers and enhance
revenue streams. This may involve introducing new financial products and services such as
insurance products, investment options, and wealth management services.
✓ Develop more and more new strategies to promote financial inclusion by reaching out to
underserved communities and offering tailored financial solutions. This could involve setting
up branches in rural areas, providing microfinance services, and launching financial literacy
programs.

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Conclusion
A nation's economic progress significantly relies on its banking system. Sonali Bank Ltd., a leading
bank in our country's banking sector, offers various banking facilities and financial services to the
public. The bank has made additional investments in the export and import sectors. The bank's
proper management and establishment of a successful network nationwide can play a crucial role
in development initiatives. Success in banking largely depends on effective lending and timely
recovery of loans. A significant contribution to remittance and overall financial activities can boost
both national and international economic growth, positioning the bank as a reliable service provider.
While every banking institution has limitations, Sonali Bank also faces challenges but remains
committed to its clients. The bank could introduce more products or service schemes to cater to the
diverse needs of its customers. Additionally, the bank's management needs to monitor operations
closely and provide necessary guidance to ensure desired outcomes.

Reference
https://www.academia.edu/13063352/General_Banking_Activities_of_Sonali_Bank_Limited
Annual Report 2022
https://en.wikipedia.org/wiki/Sonali_Bank
https://www.sonalibank.com.bd/#
https://www.daily-sun.com/printversion/details/707157
https://www.tbsnews.net/supplement/sonali-bank-sees-best-ever-financial-performance-2022-
640558

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