Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

CHAPTER-ONE

1.1 Introduction

Generally Bank is a profit oriented financial institution. Banks are important to the
economy of a country for several reasons. Firstly, they act as Intermediaries through
which the funds of surplus units (savers) can be made available to shortage units
(borrowers) in order to finance productive activities. This is crucial to the functioning
of the economy. Secondly, banks provide a whole range of financial services to the
public, such as the payment services that are an everyday fact of life and without
which the economy cannot function smoothly.

1.2 Statement of the problem

Sonali Bank PLC, Kashiadanga Branch, Rajshahi from the very beginning of its
establishment, the major concern of the branch is to collect deposit and to invest in
various business sectors. But it is not very easy to perform this function. Because it
faces some problem in managing overall functions. The branch management
becomes unable to perform overall banking operation up to the mark. In this study it
is tried to identify analyze the problem those are faced by the bank in operating its
overall banking functions.

At present, it is very important for any bank or financial institutions to manage its
overall banking activities effectively and efficiency. Though it is a government owned
public bank, but the survival of a bank mostly depends on its overall banking
functions. Also it is not very easy job for a bank to manage its overall activities
effective. As a government owned public bank Sonali Bank PLC Kashiadanga
Branch, Rajshahi faces different types of problems to manage its overall functions. In
this study the researcher believed that there are some problems of this bank
regarding overall banking activities.

1.3 Objective of the study

The main objective of the study is to examine the Overall Banking activities of Sonali
Bank PLC, Kashiadanga Branch, Rajshahi. With a view to achieve the above
objective, the study hunts for the following:

01. To examine the different banking activities of Sonali Bank [Link]

Branch, Rajshahi.

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02. To evaluate the financial performance of Sonali Bank [Link] Branch,

Rajshahi.

03. To assess the investment and recovery position Sonali Bank PLC. Kashiadanga
Branch, Rajshahi.

04. To find out the problems regarding overall activities of the Bank.

05. To provide some suggestions for solving those problems and Improve the overall
performance of the bank.

1.4 Justification of the study

Simply it can be said that all state owned banks in our country are suffering from
chronic situation of managing overall activities currently. If any bank become unable
to manage its overall activities in an efficient and effective manner. Then it would not
be possible for the bank to generate profit.

Sonali Bank as it is a state owned bank having a responsibility towards the economy
and resources proper utilization of which can is needed for the economic
development of the country. So this study is conducted on the Sonali Bank PLC,
Kashiadanga Branch, Rajshahi.

Different studies have been done on overall performance issues of different banks
but no such study has yet build done on the overall performance Issues of Sonali
Bank PLC, Kashladanga Branch, Rajshahi as far as the researcher's knowledge.
That is why the researcher was motivated to select this area. This study may be
helpful for the policy makers, stake holders and other concern authorities.

1.5 Methodology of the Study

The data was collected from the "Sonali Bank PLC Kashiadanga Branch, Rajshahi."
during the internship period. The data collection methods are of two types as follows:

(1) Primary data collection method

(2) Secondary data collection method

Primary Data Collection Method:

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Primary data was collected from Sonali Bank PLC, Kashiadanga Branch, Rajshahi
by following way:

a) Questionnaire method

To collect information a questionnaire was made information and data from the
officers, personnel and other concerned people was collected according o the
questionnaire of my targeted ban.

b) Interview Method

The information and data collected through interview of the officers, executives and
supervisors and they all responded all of questions friendly.
c) Observation Method

From the observation and with the help of practical knowledge, some information
and data about the bank was collected.

Secondary Data Collection Method:

The only source of secondary data was official record of bank. Others
sources of secondary data are as follows:
a. Statement of affairs of the branch
b. Documents supplied by branch
c. Different articles
d. Magazines and papers
e. Bank's website
f. Rules and regulations provided by agricultural credit department of of
Bangladesh Bank
g. Annual report of the bank from 2019to 2024. and
[Link] statistical graphs and charts of the bank.

1.6 Scope of the study

The focus of the report is on management of overall activities to measure the

performance of the existing banking activities done by Sonali bank efforts have been
taken particularly to get executives opinion about overall management of banking
activities. Overall activities ranging from opening an account under general banking
to loan recovery. In order to achieve its predetermine objectives Sonali Bank PLC,
Kashiadanga Branch, Rajshahi performs various banking activities.

The study also encompasses various credit scheme provided by the bank to
measure the present status of the bank in terms of loan management. In this report
in order to represent the present status of the branch different banking activities

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ranging from opening an account under general banking to loan recovery are also
considered. In this study it is tried to take some attempts so that it can be possible to
identify whether the branch of the bank managing its all activities effectively or not.

In this study researcher has also tried investigate the issues which are responsible
for creating problems to manage overall activities in an effective and efficient
manner. The scope of the study is limited to the Sonali Bank PLC Kashiadanga
Branch, Rajshahi only.

1.7 Limitations of the study

Limitations of time was one of the most important factors that languid the present
study. The researcher conducted the research wonk only 90 days. Due to the time
constraint many aspects could not be discussed in the report.

● Another important point that was faced during execution of the study was
limitation of the scope. Every organization has its own secrecy that is not
reveled to others. Which collecting data that is interviewing the employees,
they did not disclose much information for the sake of the confidentiality of the
organization.

● Another main limitation of the study was the communication gap between the
different employees due to working and unavailability of data.

● The area of the study had to be kept confined to the Kashiadanga Branch,
Rajshahi only.

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CHAPTER-TWO

Introduction to Sonali Bank

2.1 Introduction

Banking sector plays an important role in the socio-economic development for

any country in competitive business world. Banking sector as an instrument of
economic development that has been playing a very important role in utilizing
the deposits received from both rural and urban areas and other allocation
received from different sources by providing credit to different fields. In a
developing economy like Bangladesh the involvement of banking institution
makes the monitory system more systematic and dynamic. Economic
functions are worthless without sound banking system. No one can avoid the
role of banking activities to maintain the economic systems such as; monitory
policy, fiscal policy, financial transaction, investment of fund, loan facility,
secured of money.

There are three nationalized commercial bank in Bangladesh such as; Sonali,
Janata and Agrani bank Ltd. In our country Sonali Bank act as a leading
banking institution after the Bangladesh Bank. The main function of Sonali
bank is to Treasury function. In where Bangladesh Bank's branch is absent
Sonali Bank acts as Bangladesh Bank.

Commercial banks are so named because they specialize in loans to

commercial and industrial businesses. Commercial banks are "profit"
organizations. Their objective is to make a profit. The profits either can be

paid out to bank stockholders or to the holding company in the form of

dividends, or the profits can be retained to build capital (net worth).
Commercial banks traditionally have the broadest variety of assets and
liabilities. Their historical specialties have been commercial lending to
businesses on the asset side and checking accounts for businesses and
individuals on the liability side. However, commercial banks also make
consumer loans for automobiles and other consumer goods as well as real
estate (mortgage) loans for both consumers and businesses. As a Govt.
commercial bank it has a vast objectives and functions. It carries out Treasury
functions, Salary of Govt. employees, Deposit collection, loans & advances
and special loans and investment required for the community.

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For the betterment of economic growth Sonali bank has special investment
scheme, such as:

1. Cattle Fattening

2. Poultry

3. Fishery

4. Dairy

5. Koel Birds

Sonali Bank also provides agricultural loan, Industrial loan, rural credit, micro
credit and other loans needed for the community.

2.2 Role of bank in the process of economic development

Financial Supervisory/Regulator (BB/SEC)

[Link] Institutions

● Banking Financial Institutions

● Non-Banking Financial Institution

[Link] instruments

[Link] market

● Money Market
● Capital Market

Banking financial institutions are the main part of financial system of Bangladesh.
They play a vital role in our economy. They dominate the Non-financial Institutions
and control the financial markets. Our Capital Market and Security Market depend on
banking sector. Banks as an intermediary financial institution play a crucial role to
accelerate the process of economic growth, mobilizing scattered savings and
channeling the same into various productive investments. The bulk of the savings
generated by the household sectors in the economy can be transferred to the deficit
sector through the bank channel. The development of banking sector is necessary

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for economic growth for a country. Banks transfer the fund from region where it is
available in plenty to where it can be efficiently utilized. Commercial Banks divert and
employ the funds such a way, which are aimed to develop economy of a country and
adds to national wealth.

2.3 Background of Sonali Bank

On March 26, 1971, leaders of East Pakistan declared the state independent as
Bangladesh (Bengali for "land of the Bengalis"), and its independence was assured
on December 16, 1971, when Pakistani troops in the region surrendered to a joint
force of Bangladeshi and Indian troops. In 19th December 1971 all offices opened
but banks was unable to open their functions due to lack of liquidity.

In 23rd December 1971, as per the decision of inter ministerial meeting the name of
central bank changed from state bank of Pakistan to Bangladesh Bank. According to
Bangladesh Banks (Nationalization) Order-1972 (president order # 26, following
three banks immerged as Sonali Bank.

1. The National Bank of Pakistan

2. The Bank of Bahawalpur Ltd.

3. The Premier Bank Ltd.

At that time these three banks had 22 branches. Present Authorized capital of Sonali
bank is 1000 crore and paid up capital 327.22 crore. The Head office of Sonali Bank
is situated in Motijheel, Dhaka. It is considered as the planning office. It has 41
divisions and 58 department and many sections. Address of head office is Sonali
Bank, Head Office, 35-44 Motijheel C/A, Dhaka-1000. PABX of Head Office is
9550426-31, 33, 34 and 9552924 and Fax Number is 88-02-9561410.

2.4 Objectives of Sonali Bank:

The main object of Sonali Bank is to collect scattered savings and employee this
funds in various productive sectors. If it is consider as narrowly, we find various
types of objectives. These objectives are as follows:

● To expand resources mobilization.

● To collect the deposit.

● To locate and give some Recommendation

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● To study of various activities of sonali bank plc

● To secure deposit.

● To inspire savings.

● To control loan.

● To expand of trade and commerce.

● To improve industrialization.

● To give preface the SME secvice of Bangladesh

● To provide the customers service.

● To increase the capital formation.

● To earn profit.

2.5 Organization structure of Sonali Bank.

The organization structure of SB is divided into two categories such as:

1. Controlling office.

2. Human Resources.

2.5.1 Organization structure according to controlling office

Field level offices

[Link] office

Principal office

[Link] GM Office

Regional office Booth

GM Office: General Manager's Office: 18 GM Office

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Bgura,Chittagong south,Dhaka North, Dhaka South, Rajshahi, Khulna, Chittagonj

North, Sylhet, Barisal,Cumilla,Dhaka
Central,Dinajpor,Faridpur,Jamalpur,Jashore,Mymensing,Noakhali and Rangpur.

Principal office : 69

Regional office : 00

Branch :1232 (with 2 foreign branch)

According to evaluation of work extent of branches they are classified into three
categories "A", "B", "C". Moreover as per their activities they are identifying with
different names:

1) Corporate branch: Branches having foreign exchange, advance and general

banking functions are called corporate branch.

ii) Authorized dealer: Branches having licensed for financing in foreign business are
called authorized dealer.

iii) Chest Branch: Those branches maintain govt, transaction and have the authority
to hold money of Bangladesh Bank.

iv) Sub-chest branch: Those branches hold money of Bangladesh Bank but do not
carry out govt. transaction are called sub-chest branch.

v) Treasury branch: Branches only carrying out Govt, transaction are called sub-
chest branch.

Authorized dealer: 49

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2.5.2 Organization structure according to Human Resources

According to designation human resources are designed as follows:

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CHAPTER-THREE

General Banking of Sonali Bank PLC, Rajshahi Kashiadanga Branch.

3.1 INTRODUCTION

The main function of a commercial bank is to collect money from public and
institutions and to give loan among them. That is to collect deposit from surplus unit
and disburse loan to deficit unit Sonali Bank PLC, Kashladanga Branch, Rajshahi
mainly performs that functions and also performs other related functions. General
banking Includes deposit service, local currency remittance etc. It should be
mentioned that cash management Is also an important part of general banking.

3.2 LOCATION OF THIS BRANCH: Kashladanga, Court, Rajshahi.

3.3 DATE OF ESTABLISHMENT: Sonali Bank PLC, Kashiadanga Branch, Rajshahi

has been started its operation on 27th March, 1979.

3.4 FUNCTION OF THIS BRANCH

Main functions of this branch are: -

1. Receiving of money on deposits.

2. Conducting cash transaction of customers who have current accounts.

3. Attending bills of exchange and draft of customers.

4. Sanction of loan.

5. Providing other services to the customer's

a. Transfer of money.

b. Collection of receipts.

c. Collecting interest dividends, rents, pension etc.

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3.5 ORGANIZATIONAL SET UP

Organizational Setup of Sonali Bank Kashladanga Branch, Rajshahi is as follows:

Principal Officer(Manager) -01

Senior Officer-02

Senior Officer (Cash)-03

Officer -01

Officer cash-3

Officer(IT)-1

Cleaner-1

Security Guard-3

3.6 TYPES OF ACCOUNT

Accounts department is the most important functional area of this Branch. The
following types of accounts are maintained in this bank:

a) Fixed deposits A/C

b) Short term deposits A/C

c) Deposit schemes A/C

1. Sonali Deposit Scheme (SDS)

ii. Education Deposit Scheme (EDS)

iii. Medicare Deposit Scheme (MDS)

iv. Double Benefit Deposit Scheme (DBS) etc.

d) Savings deposits A/C

e) Call deposits A/C and

f) Sundry deposit A/C.

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Fixed Deposits A/C

This account is opened for a fixed period of time. This type of account is very popular
to the fixed income earners. Sonali Bank Kashiadanga branch, The branch maintains
fixed deposit accounts for maximum term of three years. A fixed deposit account
holder has to deposit his money with the bank at a time and he can withdraw money
at the maturity of the account. But in case of emergency a fixed deposit can be
withdrawn maturity. Interests rate on this account various according to term of
deposit.

Sonali Bank Kashiadanga branch, Rajshahi pays the following interest rates on fixed
deposit account as on1st june, 2024 (effective from 1st january, 2024):

Duration Rate of interest (%)

1 months or more but less than 2 10.00

months

2 months or more but less than 3months 10.00

3 months or more but less than 6

months 10.50

6 months or more but less than 1 year 11.00

1 year or more but less than 2 years 11.50

2 year or more but less than 3 years 12.00

Source: Accounts department, Sonali Bank PLC, Rajshahi Kashiadanga Branch

Short Term Deposit A/C

The minimum initial deposit of STD accounts is TK. 5000. This account is operated
like the current accounts. Depositor must inform the bank 7 days before withdrawal.
Otherwise, no interest will be paid.

Sonali Bank Kashiadanga branch, Rajshahi pays the following interest rates on fixed
deposit account as on 01June, 2024(effective from 1st january, 2024):

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Short Term Deposit A/C Rate of interest (%)

Less than tk. 1 core 5.00

Tk. 1 core or more but less than tk. 25 5.25

core

Tk. 25 core or more but less than tk. 50 5.50

core

Tk. 50 core or more but less than tk. 100 6.00

core

6.50
Tk. 100 core or more

Source: Accounts department, SB PLC, Rajshahi Kashiadanga Branch

Deposit Schemes

Sonali Bank. Kashiadanga Branch, Rajshahi offers some deposit schemes to the
customers. They are as follows:

1. Sonali Deposit Scheme

2. Education Deposit Scheme

3. Medicare Deposit Scheme

4. Double Benefit Deposit Scheme etc.

Savings Deposits A/C

This account is opened for the individual customer, this branch provides Interest rate
is 5.75% for city region and 6.75% for rural region. They maintain initial deposit at
savings accounts is Tk. 100 and this amount always be maintained. The customer
withdraws his or her money two times in a week.

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Current Deposits A/C

This account is normally opened for businessman or business organizations. No

interest is given on the current accounts. This account is opened with
recommendation of other account holder of the branch. In this case, the accounts
holder can withdraw his or her money in any time of office hours. In this account
minimum required amount-

a. Tk. 2000 for individual and

b. Tk. 5000 for organization.

Sundry Deposits A/C

This account is also called special purpose deposit account. The following items are
deposited in this account:

1. Employee's contributory provident fund.

2. Employee's general provident fund.

3. Sonali Bank employee's pension fund.

4. Sonali bank employee's pension and death come benefit fund. retirement

3.7 ACCOUNT OPENING PROCEDURE

Bank accounts are opened in the Sonali Bank Kashiadanga branch, Rajshahi. The
Resercheres taught how gathered practical knowledge about opening of bank
account. Various types of current deposit (CD) account and saving deposit (SD)
account are opened.

3.8 PROCEDURE OF OPENING CURRENT DEPOSIT A/C

Any one opens this account with fill up a specific form. No interest is given to these
types of account holders. Customer can deposit or withdraw any amount and any
time without specific prior notice.

To open a current deposit account, an individual has to carry out the following
procedures-

● Obtain a prescribed application form from the bank.

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● Submit the duly completed form with necessary papers to the concerned
officer

● Face a brief interview.

● Put specimen signature in the signature card supplied by the bank.

Once these formalities re carried out in appropriate manner an account number is

posted against the application. But recently to open a current deposit account also fill
up a KYC profile form. Then a cheque book is issued in favor of the applicant and he
is considered as a valid account holder of the bank.

For opening a current account, the applicant should submit the following papers and
information:

• Photocopy of National ID Card.

• Two copies of recent passport size photographs and one copy passport size
photograph of nominee.

If the applicant is a service holder or business man he should collect certificate or

license and is to be submitted

The applicant's signature should be identified by an introducer who has a CD

account with the respective branch.

The applicant should deposit Tk.5000 is required to open this account

3.9 PROCEDURES OF OPENING A SAVINGS DEPOSIT (SD) A/C

The procedures of opening a SD account are almost same as the CD account. Some
of the rules and regulations regarding to operate a SD account are mentioned below

Only savings account holder or a CD account holder of the respective branch can be
introducer of the applicant of opening SD accountt.

Two coples of recent passport size Photographs of the applicant should be attested
by the introducer. In this case, the introducer mentions his or her account number.

The applicant should deposit Tk. 100 required to open this account.

If the client is private or public limited company, the people authorized to open and
operate the account should put joint signature where it is necessary.

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3.10 CLOSING AN ACCOUNT

During the study work the researcher taught how to close a bank account Closing by
Customer In order to close an account the account holder has to place a written
application to the bank after receiving the application the Bank will deduct service
charge at an amount necessary for the respective account as closing fee from the
balance and rest of the money is given to the account holder.

Closing by Banker

The relationship between bank and his customer is a contractual one and may be
terminated by either of them. Bank closes an account in the following situation:

If a customer wants to close his/her account it conducted when the customer places
written application to the Bank.

If a customer does not properly maintain the rules and regulation which is necessary
to operate an account.

If the bank is notified the message of death of a customer.

If the bank receives a garnishee order from court and order by govt.

3.11 FUNCTION OF THE CASH DEPARTMENT

Cash department is the most important functional area of any bank. From this
department we have learnt about cash payment and cash receipts.

Cash Receipt

Customer's deposits are received in this section of bank. The amount received is
credited to the customer's A/C in the ledger book. The formalities that are followed to
receive a customer's deposit (cash in) the cash receipt section are stated in the
following flow chart.

● Customer places this cash and deposit slip before the respective officer at the
counter.

● After receiving the cash and deposit slip, the officer makes an entry to scroll
register book. Then the deposit slip and cash are placed before cashier.

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● The cashier counts the amount of money first and then makes an entry to
another register book. The book is generally called cash book.

● Then the cashier passes the cash book and deposit slip to the second officer.

● After verifying the deposit slip, the second officer returns the counter-folio of
the deposit slip to the customer and keeps the other portion in his custody.

● At the end of banking hour, trial balance is prepared from that cash receipt
register.

3.12 CHECK DISHONOURED BY BANK

A bank can dishonor a cheque for various reasons. Some of the reasons for

that a bank dishonors his customer's cheque are stated below-

. If the customer's account position is not ok, that is if the amount of money
mentioned in the cheque is greater than customer's deposit.

• If the cheque is post-dated or a stolen checks.

IF the customer's signature given on the cheque is a forged one or does not tally with
his specimen signature kept in bank custody.

• If the cheque is not submitted to the customer within banking hour.

• If the duration of issuing the cheque is more than 6 month.

• Any other appropriate reason for which if the banker thinks to dishonor the cheque.

3.13 FATE OF ACCOUNT WITHOUT TRANSACTION

period of 2 years, the account is kept separate and marked as sleeping account. If
no transaction If no transaction is made in a bank account, especially in savings
deposit account, for a is made in 10 years, the account is closed and transferred to
the bank's account.

3.14 CUSTOMER SERVICE

Sonali Bank PLC, Kashiadanga Branch offers the following facilities:

Customer's Bills Collection

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Customer can cash a cheque drawn from another bank. Sonali Bank Limited,
Kashladanga Branch performs this task for his customer without any charge. The
collection procedure is after receiving different bills or checks from different
customers, bank sorting the bills according to different bank, then sends them to
Bangladesh Bank clearing house for settlement. When the settlement is completed,
then bank posting them to the customer account and ready to give cash to the
demanders.

Public Bills Collection

Pension

• Gratuity Fund

Salary and allowance of Teacher

• Allowance for freedom fighter and unemployment

3.15 REMITTANCE

The system of transmitting or sending money from one branch to another branch of
the same bank or from one bank to another bank within a country or outside the
country is known as remittance. It is one of the most important functional areas.
Kashiadanga branch earn a handsome fees as commission from the dealings of
money remittance. During my studies the resercher gathered practical experience
about how money is remitted, and also learned the procedure of issuing DD, T.T, MT
and payment order.

Types of Remittance:There are two ways to transfer money with cash and through
paper such as: (1) Inland Remittance.
(2) Foreign Remittance.

Inland Remittance:Inland Remittances are as follows-

Payment Order (PO)

Demand Draft (DD)

Mail Transfer (MT)

Telegraphic Transfer (TT)

Payment Order (PO):

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It is a written document; this payment order can be enchased on that branch from
where it is issued. Several suppliers, organizations use this payment order and here
no account is needed to open with the bank. It is used in locally.

Demand Draft (DD)

DD is the most widely used instrument of remitting fund. It is an order to pay money
drawn by one branch of a bank upon another branch of the same bank for a
particular amount of money which is payable to order on demand.

Procedures of remitting money through DD

The procedures of remitting money through DD are stated briefly in below-

At first, the sender of money is advised to fill up a form and deposit the cash. The
form is usually called DD application form or credit voucher.

The senders of money fills up the voucher appropriately and place it with cash before
the officer at cash receipt section.

After receiving the voucher and cash, the officer counts the money and charges a
fee as commission. Here it is mentionable that the commission for DD up to Tk.
20,000 is Tk. 30 and Tk. 1 for every thousand above Tk. 20,000 and vat 15% of the
commission. Postal charge Tk.30.

After that, the voucher is sent to the concerned officer of remittance section.

Here the officer prepares a paper instrument called "Demand Draft (DD)" and enters
the amount in the draft issue register.

Draft book and DD along with the register are then sent to the officer in charge for
checking. If everything is Okayed, the officer signs the DD and voucher and keeps
the register and counter foil of the DD.

After that the DD is issued and the same is given to the sender of money. At this
stage he can send the DD to the receiver branch by post or any other ways,

After issuing the DD and handing over it to the sender of money, the DD issuing
branch sends an advice to the receiver branch about DD.

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Finally, the DD receiver branch makes payment to the bearer of DD. payee after
completing the necessary formalities.

Mail Transfer (MT)

MT is another widely used instrument of remitting fund from one branch of a bank to
another branch of the same bank. It is not used to remit fund from one bank to
another. MT is nearly same as DD.

Procedures of remitting money through MT

The procedures of remitting money through MT are almost same as the procedures
of remitting fund through DD. But there are some exceptions in this system-

In case of MT, the sender of money is not provided with the MT paper but a receipt.
The branch sends the MT paper under its own responsibility by mail to the MT
receiving branch.

The commission for MT up to Tk. 30 for per 20000 and Tk. 1 for every thousand
above Tk. 20,000 and vat 15% of the commission. Postal charge Tk.20 and
telephone charge Tk. 30 (any one of these)

The MT issuing branch has to send a secret message Le. Test to the MT receiving
branch. It is must for any amount of money. Here the amount of money, issuing date
and other particulates are mentioned.

To maintain the secrecy of the message sent, the issuing branch codes the message
by a particular number consisting of different digits. After receiving the message, the
paying branch decodes it by using the predetermined techniques. This process is
called test. If everything is Okayed, the paying branch makes payment to the payee.

Telegraphic Transfer (TT)

TT is the fastest means of remitting fund between two branches of the same bank.
Fund cannot be remitted from one bank to another bank through TT.

Procedures of remitting money through TT

The primary formalities that have to be maintained to remit money through TT are
same as DD and Mт.

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The commission for TT up to Tk. 20,000 is Tk. 30 and Tk. 1 for every thousand
above Tk. 20,000 and vat 15% of the commission.

Here a fee of Tk. 30 is charged as telegraphic charge for every TT issue and for any
amount of money.

In case of TT, no paper instrument is sent to the paying branch. Rather the TT
Issuing branch sends a TT advice through telephone, telegraph, Fax or telex to the
paying branch. In sending message, the branch keeps necessary secrecy. Side by
side, the TT issuing branch sends an advice to the head office of the bank.

After receiving the message, the paying branch tests to decode the message. If
everything is obeyed, then the branch makes payment to the payee. After that the
branch sends an advice to the head office to reconcile the accounts of both branch

Foreign Remittance

The procedure to transfer money from one country to another country through bank
or other govt. authorized agencies is called foreign remittance. Sonali Bank
Kashladanga branch does not provide this service directly, but they work as
intermediary for the customer.

3.16 SPECIAL FUNCTIONS ASSIGNED BY THE GOVT.

Payment of Pension

The retried person draws their pension money from this bank branch. For this 1%
commission or service charge is taken. Government supplies person money to this
branch.

Payment of Allowance to the Old:It supplies money to the old on behalf of

government then the old drawn their allowance money from this branch. 1% service
charge is taken from government.

Salary of School and College Teachers:

This branch pays salary of school and college teachers on behalf of government.
Government repays the money to the bank. No service charge is taken. It is non-
profit transaction.

Other Services:
Collecting fees on behalf of the government for different purposes such as passport,
tender offers etc

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

CHAPTER-FOUR

LOAN DISBURSEMENT AND LOAN MANAGEMENT

4.1 Introduction

Sonali Bank is a nationalized commercial bank. The main task of a commercial bank
is to collect deposit in a comparative low rate of Interest and to pay loan is a
comparative high rate of interest. A bank has to bear deposit cost and administrative
cost by its earnings from granting loans. If it fails to bear these costs by its earning
from granting loan, the bank business will be closed. In my internship program, a
case study on loan disbursement and repayment position is presented in this part of
the report.

4.2 What is Disbursement?

When bank distributes its fund in various ways to various sectors to earn profit, and
to operate banking function and gives some interest to deposit holder, then it is
called disbursement.

4.3 Problems of Loan Disbursement

Loan disbursement and recovery is the main task of Sonali Bank. In this case Sonali
Bank at first accomplishes the activities of loan disbursement. But Sonali Bank some
difficulties to disburse credit. These are as follows:

1. The first problem is selection of appropriate promoters.

2. Another problem is the promoter does not supply equity in due time.

3. The lack of management of the project cannot be evaluated accurately.

Consequently it is difficult to disburse credit.

4. It is not possible to disburse credit on account in ability of promoters to operate the

project activity.

5. Entrepreneurs cannot manage working capital in due time.

6. Statutory problems.

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

7. Entrepreneurs have to collect the various certificate, such as Trade license, water
power, Gas supply document etc. but they cannot collect it in due time. In that case
disbursement of credit is not possible.

8. Political mediation. Now it's a main problem in field of loan disbursement.

9. For the above-mentioned it is not possible to disburse credit activities in correctly

and properly.

4.4 Major Items of Loan Disbursement

The following items show various ways of loan disbursement for this

branch:

1. Cash Credit

2. SME

3. Over Draft

4. House Building Loan (Staff)

5. Micro-credit

6. Personal Loan

7. Small Loan

8. Agricultural Loan

9. Other Staff Loan

4.5 Loan and Advances

The goal of every commercial bank is to serve customer service as well as earns
profit. Sonali Bank Kashiadanga branch, Rajshahi is of no exception. As a
nationalized commercial bank, its goal is to earn profit as well as to contribute on the
economic development of the country.

4.5.1 Sources of Loanable Fund

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

This bank collects deposit from people and various organizations at a certain rate of
interest that is payable to them and lend this money to people at certain rate of
interest, more than the rate of collecting money. The main source of banks loanable
fund is deposit.

4.5.2 Types of Loan and Advances

Loan means landing money to someone on trust. The Sonali Bank, Kashiadanga
branch provides the following kinds of loans to the customer's:

[Link] Cash Credit

Current accounts on which an overdraft has been sanctioned. Under this system the
banker specifies a limit called the cash credit limit for each customer up to which the
customer is permitted to borrow against the security of tangible assets guarantee.
The interest rate is 16%. Cash credit has maturity one year.

[Link] Overdraft (OD)

When a bank gives opportunity to his customer to withdraw specific amount of

money over his bank A/C balance, then it is called overdraft. Normally bank takes a
security for overdraft against FDR, Sanchay Patra, and Deposit Schemes. Normally
a customer can take 80% loan against FDR, Deposit Schemes and Sanchay Patra.
Now bank pays most of the overdraft against FDR and Deposit Schemes

[Link] Staff Loan

When the bank lends its money to its staff then it is called staff loan. The following
types of loan are supply to the staff:

L. House building loan.

ii. Loan against provident fund.

iii. Loan for motor cycle and bicycle.

[Link] Small Loan

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Small loans are usually provides to the businessman. Its maturity date is 1 year and
maximum amount is Tk. 2 lakhs. Land, Property, Business institution uses as for
mortgage. Up to Tk. 50000 Bank don't require any mortgage.

4.6 Interest Rates of Loan

The following table shows the various types of loan and advances interest rates (on
31.05.24)
Interest Rate
Particulars

Cash Credit
10%

Over Draft Against FDR 3% above the rate paid by bank to

customer

Over Draft Against Deposit Schemes 3% above the rate paid by bank to
customer

House Building (Staff)

5%

Micro-credit 11%

Personal Loan 12%

Small Loan 13%

10%
Agricultural Loan

Other Staff Loan 5%

Source: Loan and advance department of Sonali Bank, Kashiadanga Branch,

Rajshahi.

4.7 Procedure of Granting Loan

The procedure of granting loan of Sonali Bank, Kashladanga Branch, Rajshahi is

given bellow:

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

4.7.1 Judgment of Loan Application

At the time of lending bank judges the customer's credit worthiness. Bank cellects
information from various sources for the security of credit
information which is very essential for unsecured loan. Bank can collect information
from the following sources:-

1) Lean application form:

From the application form bank seeks information about.

L Customer business experience.

ii. Amount of assets and liabilities.

iii. History of business.

iv. Name of the banker.

v. Amount of advance sought.

vi. Period of advance.

vii. Source of repayment

2) Analysis of financial statement.

3) Analysis of past transaction made with the bank.

4) Credit information Bureau Report (CIB Report).

5) Transaction with other banks.

6) Personal interview.
After collecting information, Bank analysis this information and assess as the
acceptability of credit of the applicant. For the secured loan, bank gives priority to the
security that has the following features:

i. Marketability of the security.

ii. Price stability.

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

iii. Consistency.

Iv. Durability.

v. Possession of the property.

But for the unsecured loan bank assess the credit worthiness of the borrower. Credit
worthiness of a person is judged by the banker on the basis of the following 5C's and
5R's:

5 C's 5R’S

[Link]
1. Character
2. Reliability
2. Capital
3. Respectability
3. Capacity
4. Resource
4. Condition
[Link]
5. Collateral

4.7.2 Instrument for issuing Loan

The instrument which are necessary for issuing debt:

1. Letter of continuity.

2. Letter of arrangement.

3. Letter of disbursement.

4. Letter of hypothecation.

5. Statement of monitoring signed by manager.

6. Memorandum of deposit title head.

7. Power of attorney in case of failure to repay debt.

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

8. Guarantee of owner of property.

9. A passport size photograph.

4.8 Loan Disbursement against Total Deposit

Total deposit, Total Loan and advanced (Amount in Te '00000)

Period in 2024 Total deposit Total loans and Percentage of loan

advances disbursement
against total
deposit

January 2015.15 398.02 19.75%

February 2050.49 391.85 19.30%

March 2070.26 399.80 19.31

April 2100.00 400.79 19.08%

May 2179.01 403.08 18.49%

Source: Statement of affairs of Sonali Bank, Kashladanga branch, Rajshahi.

Above table represents that total Deposit and Loan disbursement in the duration of
January to june 2024 Disbursement is in increasing trend. After disbursement and
fulfilling the vault capacity, Sonali Bank, Kashiadanga Branch, Rajshahi transfers the
remaining deposit balance to the Treasury Branch at the interest rate of 6.0%.

Item wise loan disbursement position for last 6months in 2024

Items anuary February March April May

Cash credit 56.25 50.25 49.55 52.05 47.96

Demand 18.47 19.30 20.98 18.84 17.30

draft

Over draft 85.89 48.10 47.41 65.69 80.55

Other staff 17.43 17.21 14.88 15.66 14.47

loan

Small 2.01 1.90 1.00 .98 .80

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business
loan

Micro credit 10.06 10.90 9.67 9.56 8.12

Total 190.11 147.66 153.30 162.50 170.67

Source: Statement of affairs of Sonali Bank, Kashladanga branch, Rajshahi.

The above column chart shows the item-wise loan disbursement position.

Loan disbursement was highest in October and lowest in January. Total loan
disbursement was in increasing trend.

Item wise loan disbursement position ( in percentage)

Items January February March April May

Credit 7.92% -13.08% 2.45% 2.03% 7.30%

Demand 1.39% 4.09% 11.94% 11.94% -2.82%

draft

Over draft 215.08% -42.02% -8.19% 8.19% 37.75%

Others staff 7.78% 2.69% 3.18% 3.14% 22.34%

loan

[Link] 1.00% 3.00% 5.95% -5.95% 1.55%

ss loan

Micro credit 15.46% 12.77% 18.96% -2.17% 2.88%

Agricultural 9.00% 11.00% 13.00% 10.55% 11.05%

credit

Growth has been calculated by the following formula

Growth (Amount increase or decrease of respective year. Amount of previous year)

100

From the above table we can see that item-wise loan is in increasing trend except
Cash Credit, Other Stuff Loan, Micro-credit and Small Loan But total loan was
gradually increasing because Over Draft and IIBL (Staff) was increasing significantly.

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

The schedule of loan repayment for the last 5 months (Amount in Tk 00000)

Period in 2024 Loan Loan repayment Repayment

disbursement Against
Disbursement

January 853.21 125.41 13.50%

February 810.19 192.65 25.22%

March 811.00 60.74 10.03%

April 820.20 125.20 13.55%

May 831 72.39 17.22%

Source: General ledger of Kashladanga Branch of Sonali Bank, Rajshahi.

From the above table we can see that Loan repaate against disbursement is
significantly low. Loan repayment is highest in February and lowest loan in
[Link] point is that in this branch there is no relationship between loan
disbursements and repayments and repayment as all loans are repaid at maturity.
And there is no classified and unclassified loan in this Branch

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

CHAPTER-FIVE

Overall Banking System

5.1 Introduction:

The objective of commercial bank is to make profit by borrowing and lending

activities. It has to pay interest on deposit; on the other hand it takes interest from
loan and advances. The difference between two interests is main part of the profit.
As commercial banks are profits making organization. The banks are evaluated on
the banks of profit and loss similar to other trade organization.

A bank is considered as successful of which share holders get maximum dividend.

Besides If there are some goals which are consistent with the main objective of a
bank. These are increment of deposit, loan and advances, total assets etc.

5.2 Concept of Performance Evaluation:

If the actual of any of the items differ from standard, the performance is bad.
Financial performance means the financial strengths and weaknesses of a firm.
Therefore, we can say that financial performance is the picture of financial results of
a firm.

5.3 Objectives of Performance Evaluation

➤ To determine the extent to which management assigned

responsibilities have been realized.

To identify the causes of deviations from established performance standard.

To suggest courses of action to rectify out of control situations.

To provide motivation for improving in performance.

To establish a basis for comparison between different sectors in companies

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

5.4 Types of Deposit Schemes

This branch offers the following schemes to the customers:

a) Sonali Deposit Scheme (SDS)

b) Education Deposit Scheme (EDS)

c) Medicare Deposit Scheme (MDS)

d) Monthly Earning Scheme (MES)

e) Marriage Savings Scheme (MSS)

f) Fixed Deposit Receipt (FDR)

5.5 Account Opening For Deposit Schemes

Accounts of these schemes can be availed by any Bangladeshi aged 18 years or

above. Account opening procedure of deposit schemes is the same with that of other
deposit A/Cs. Followings are the requirements for opening account of deposit
schemes:

i. Two recently captured attested Passport Size Photographs of the Account holder.

ii. Nominee is compulsory.

5.6 Loan Facility

Bank provides loan against deposit schemes to the depositor. Bank provides 90% of
total deposit as loan against SDS, EDS, MDS, MSS, MES and DBS 80% of total
deposit against FDR. Loan is provided at the interest rate of 3% above the rate paid
by the bank to customer.

5.7 Features and Performance of the Schemes

The Features and Performance of the Schemes of Sonali Bank, Kashiadanga

Branch, Rajshahi is given bellow:

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

5.7.1Sonali Deposit Scheme (SDS)

a. Validity of account: 5 years.

b. Amount of monthly installment: Tk.500 or its multiple up to Maximum Tk. 10000.

c. Rate of interest: 8.5% (compounded).

d. After due date if there is a penalty the due can be deposited with next month's
deposit.

e. Premature encashment: Premature encashment is allowed. But no interest will be

paid if enchased within 1 year.

Interest will be paid at savings rate if encashed after 1.

Interest will be paid at 5% rate of interest if encashed after 1 year but before 3 years.

Interest will be paid at 6% rate of interest if encashed after 3 years but before 6
years.

f. If there is no due of monthly deposit, a predetermined bonus will be paid on

maturity.

g. Account opening and installment date: 16th to 25th of each month.

Payment on maturity for SDS

Installment Interest payable Bonus payable Total payable at

(BDT) maturity with
bonuses

500 7189 1500 38689

1000 14378 2000 76378

2000 28756 3000 151756

3000 43134 4000 227134

4000 57512 5000 302512

5000 71891 6000 377891

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

6000 86269 7000 453269

7000 100647 8000 526847

8000 115015 9000 604025

9000 129404 10000 679404

10000 143782 11000 754782

Sources:Register & general ledger of Sonali Bank PLC, Rajshahi Kashiyadanga

Branch.

Overall performance of SDS for last few years in given in following table:

Particul 2019 2020 2021 2022 2023 2024 Total

ars

No. Of 79 46 37 34 53 50 299
A/Cs

Total 1912 2627 3190 3681 2969 6439 20818

deposit
(amount
in ‘000)

Encash 63 217 531 1988 4294 5925 13078

ment
(amount
in ‘000)

No. Of 6 12 11 25 45 50 149
A/Cs
encashe
d

No. Of 5 6 8 13 10 4 46
loans
against
SDS

Amount 200 200 265 573 322 90 1650

of
loan(am
ount in
‘000

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

Source: Register & general ledger of Sonali bank PLC, Rajshahi Kashiyadanga
Branch

5.7.2 Education Deposit Scheme (EDS)

a. Validity of account: 10 years,

b. Amount of monthly installment: Tk.500 or its multiple up to Maximum Tk. 10000.

c. Rate of interest: 8% (compounded).

d. After due date if there is a penalty the due can be deposited with next month's
deposit.

e. Premature encashment: Premature encashment is allowed. But no interest will be

paid if encashed within 1 year.

Interest will be paid at savings rate if encashed after 1 year.

Interest will be paid at 5% rate of interest if encashed after 1 year but before 3 years.

Interest will be paid at 6% rate of interest if encashed after 3 years but before 5
years.

Interest will be paid at 7% rate of interest if enchased after 5 years but before 10
years.

f. Account opening and installment date: 10th to 15th of each month.

Payment on maturity for EDS

Installment (BDT) Interest payable Bonus payable Total payable at

maturity with
bonus

500 30685 1500 92185

1000 61371 2000 183371

2000 122743 3000 365743

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3000 184115 4000 548115

4000 245487 5000 730487

5000 306858 6000 912858

6000 368230 7000 1095230

7000 429602 8000 1277602

8000 490974 9000 1459974

9000 552345 10000 1642345

1000 613717 11000 1824717

Source :Register and general ledger of Sonali Bank PLC, Kashiyadanga Branch,
Rajshahi

Overall performance of EDS for last few years is given in following

Particul 2019 2020 2021 2022 2023 2024(up Total

ars to may)

No of 12 10 7 Nil 1 3 33
A/Cs

Total 5721 7365 7761 7552 5043 3580 36980

deposit
(amount
in ‘000)

Encash 79 87 347 206 67 112 898

ment
(amount
in ‘000)

No of 4 6 7 7 2 5 31
A/Cs
Encash
ed

No of 4 4 3 5 11 11 38
loans
Against
EDS

Amount 112 100 100 139 367 382 1200

of loan

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

(amount
in ‘000)

Source : Register and general ledger of Sonali Bank PLC,Rajshahi Kashiyadanga

Branch

5.7.3 Mediate deposit scheme (MDS)

[Link] of account:10 years.

[Link] of monthly installment :Tk.500or its multiple up to Maximum Tk 10000
[Link] of interest :8%(compounded)
[Link] dye date if there is a penalty the due can be deposited with next month's
deposit.
[Link] enchament :Premature encashment is allowed. But no interest will be
paid if cnchashed within 1year.
-Internet will be paid at savings rate if enchased after 1year.
-Internet will be paid at 5% rate interest if encashed after 1year but 3years.
-Internet will be paid at 6% rate of interest if encashed after 3years but befor
5years.
-Interest will be paid at 7% rate if interest if enchashed after 5years but before
10years
[Link] opening and installment date:10th to 20th of each month

Payment of maturity for MDS

Installment Interest payable Bonus payable Total payable at
maturity with
bonus

500 30685 1500 92185

1000 613771 2000 183371

2000 122743 3000 365743

3000 184115 4000 548115

4000 245487 5000 730487

5000 306858 6000 912858

6000 368230 7000 1095230

7000 42960 8000 1277602

8000 490974 9000 1459974

9000 552345 10000 1642345

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

10000 613717 11000 1824717

Source :Register and general ledger of Sonali Bank PLC, Rajshahi

Overall performance of MDS for last 5years is given in following table :

Particul 2019 2020 2021 2022 2023 2024(up Total
ars to may)

No. Of 46 36 14 4 7 9 116
A/Cs

Total 226 1014 1177 1321 1037 5298 10073

deposit
(amount
in ‘000)

Encash 7 126 186 144 510 347 1320

ment
(amount
in ‘000)

No of 1 9 8 6 9 7 10
A/Cs
Encash
ed

No. of 3 4 3 8 9 15 36
loans
Against
MDS

Amount 100 100 100 212 334 538 1384

of Loan
(amiunt
in ‘000)

Source :Register and general ledger of Sonali Bank PLC Rajshahi Kashiyadanga
Branch.

5.7.4 Marriage Savings Scheme (MSS)

This scheme is newly started scheme. It has been started from 2017. Details
features of MSS are as below:

a. Validity of account: 10 years.

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

b. Amount of monthly Installment: Tk. 100 to Tk 500 and Tk. 1000 to Th 10000.

c. Rate of interest: 8.5% (compounded).

d. After due date if there is a penalty the due can be deposited with next month's
deposit.

e. Premature encashment: Premature encashment is allowed. But no Interest will be

paid if If encashed within 1 year.

Interest will be paid at savings rate if encashed after 1 year.

Interest will be paid at 6% rate of Interest if encashed after 1 year but before 3 years.

Interest will be pald at 7% rate of interest if encashed after 3 years but before 5
years.

Interest will be paid at 8% rate of interest if encashed after 5 years but before 10
years.

f. If there is no due of monthly deposit, a predetermined bonus will be paid on

maturity.

g. Account opening and installment date: 1st to 10th of each month

Payment on Maturity for MMS

Instalment (BDT) Interest Payable Bonus Payable Total payable at

maturity with
bonus

100 6622 300 18922

200 13244 600 37844

300 19866 900 56766

400 26488 1200 75688

500 33110 1500 94610

1000 66220 2000 188220

2000 132440 3000 375440

3000 198660 4000 562660

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

4000 264880 5000 749880

5000 331100 6000 937100

6000 39700 7000 1124320

7000 463540 8000 1311540

8000 529760 9000 1598760

9000 595980 10000 1685980

10000 662200 11000 1873200

Source : Register and general ledger of Sonali Bank Rajshahi Kashiyadanga Branch

Overall performance of MASS for last three months

Particular 2022 2023 2024 Total

No. Of A/Cs 4 5 9 18

Total Deposit 114 182 517 813

(amount in
‘000)

Encashment 45 32 10 88
(amount in
‘000)

No of A/Cs 4 1 2 7
Encashed

No of Loans 0 0 1 1
Against MSS

Amount of 0 0 24 24
loan(amount in
‘000)

Source :Register and general ledger of Sonali Bank Rajshahi Kashiyadanga Branch

5.7.5 Monthly Earning Scheme (MES)

This scheme is also newly started scheme. It has been started from 2017.

Details features of MES are as below:

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

a. Validity of account: 3years and 5years.

b. Deposit amount is Tk. 50000 or Multiple of Tk. 50000 at Once.

c. Rate of Interest: 9.95% for 3 years maturity and 10.80% for 5 years maturity.

d. If there is no due of monthly deposit, a predetermined bonus will be paid on

maturity.

e. Premature encashment: Deposit can be encashed before maturity. But

no interest will be paid if encashed within 1 year. Interest will be paid at 5% rate of
interest if encashed after 1

year but before 3 years.

Interest will be paid at 6% rate of interest if encashed after 3 years but before 5
years.
-Interest will be paid at 7% rate of internet if encashed after five years but before
10years.

Monthly profit for MES

Deposit amount Monthly profit for Monthly profit for

3years scheme 5years scheme

50000 415 450

100000 830 900

Overall performance of MES for 2024

Particulars 2023 2024 Total

No of A/Cs 85 27 112

Total deposit 19050 33480 52530

(amount in ‘000)

Encashment 485 325 810

(amount in ‘000)

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

No. Of A/Cs 9 6 15
Encashed

No. Of Loans 7 8 15
Against MES

Amount of Loan 1700 815 2512

(amount in ‘000)

Source:Register and General ledger of Sonali Bank PLC Rajshahi Kashiyadanga

Branch

5.7.6 Fixed deposit Receipt (FDR)

This account is opened for a fixed period of time. This type of account is very popular
to the fixed income [Link] minimum terms is one month.
The branch maintains fixed deposit accounts for maximum term of three years. A
fixed deposit account holder has to deposit his money with the bank at a time and
the can withdraw money at the maturity of the account. But in case of emergency a
fixed deposit can be withdrawn maturity. Interests rate on this account various
according to term of deposit. Sonali Bank Kashladanga branch, Rajshahi pays the
following interest rates on fixed deposit account as on: 31/05/2024

Duration Rate of interest (%)

1 months or more but less than 2months 10.00

2months or more but less than 3months 10.00

3months or more but less than 6months 10.50

6months or more but less than 1year 11.00

1year or more but less than 2years 11.50

2year or more but less than 3years 12.00

Source: Accounts department, SB PLC, Rajshahi Kashiadanga Branch.

Overall performance of FDR for last few years is given in following

Table

Particul 2019 2020 2021 2022 2023 2024(up Total

ar to

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

October
)

No. Of 41 38 24 45 73 70 291
A/Cs

Total 109.11 109.64 104.29 257.99 377.67 996.35 1955.05

deposit
(amount
in
‘00000)

Encash 191.19 125.76 109.10 254.31 211.98 120.80 1013.14

ment
(amount
in
‘00000)

No. Of 24 22 17 19 21 30 133
A/Cs
Encash
ed

[Link] 8 5 4 5 6 2 30
loans
Against
FDR

Amount 1500 388 300 435 2130 80 4833

of
loan(am
ount in
‘000)

Source :Register and general ledger of Sonali Bank plc Rajshahi, Kashiyadanga
Branch

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

CHAPTER-SIX

Findings, Recommendations and Conclusion

6.1 Findings:

Sonali Bank PLC is a nationalized commercial Bank, Government performs

monetary tough this bank. It is directed by monetary of Government. Every
government organization faces a lot of problems. As government bank Sonali Bank
PLC, Kashiadanga Branch has some strengths and weaknesses like the other
organizations. It appears from the findings that performance of Sonali Bank,
Kashladanga branch in development financing has not been up to the desired level.
The reasons behind such low profile may be explained as under:

Strengths:

✓ This branch employee done an excellent performance in doing the

daily transactions.

✓ This branch has an excellent performance in mobilizing deposits

✓ Recently this branch introduce new loan category as a

government bank such as Grameen Khudro Business Loan and
Khudro Khamar Loan.

✓ It does most of the government activities such as pay allowances

to

the freedom fighters, widow, divorced, old aged persons

✓ This branch does not provide all types of loan.

✓ Sonali Bank's credit allocation is not based on systematic analysis

of potential economic activities.

✓ The Bank is highly interested in paying the staff loans.

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

✔ This branch's loanable fund is only collection of deposit.

✔Bank attaches Importance on the strategy for short run profit

making rather than long-run development outlook. and

Surprisingly, all loans are repaid on time and there is no classified and unclassified
loan here.

Weakness:

✓ New loan disbursement performance of this branch is very poor.

✓ Limited relationship exist performance of total deposit and

outstanding loan.

✓ Effective interest cost and effective administration cost is slightly

high

6.2 Conclusion

Bank is a financial intermediary that mobilizes the idle funds of the people into
productive investments. It serves the people by collecting deposits, disbursing loan
and providing various types of customer services. As a branch of a nationalized
commercial bank, Sonali Bank Ltd, Kashiadanga Branch has been rendering
services to its customer from very beginning of Its establishment.

During my internship program, the researcher was introduced with different kinds of
services rendered by this branch. Since it is not possible to focus on all the functions
of the bank from a 90 days internship program, my report is mainly based on overall
performance of sonali bank. In previous pages, the researcher has analyzed total
activities includes general banking, loan disbursement position, account-wise
disbursement, number of account of the branch and customer satisfaction level on
loan disbursement of the branch. In analyzing the data provided by the bank, it is
seen that the loan disbursement performance of the branch is satisfactory. To
measure customer satisfactory level the researcher has gone through a
questionnaire. In analyzing the data provided by sample customer of this branch has
been shown that they are in satisfactory level. The branch performance of OD, CC,
MCD, Consumer loan disbursement performance is in growing position. Over the last
five years all of them show incremental trend. On the other hand modern

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

technologies use are not in satisfactory level need to start on line banking to survive
in competitive world.

6.3 Recommendation
Since Sonali Bank is the leading nationalized commercial bank of Bangladesh, it
must have to remove its limitation in banking service. In my study I have recognized
several weakness present states of banking service (mainly cash credit) and my
recommendation are given bellow:

1. Bank must enrich its service like private commercial bank most likely one stop
service, ATM service etc.

2. The loan should be sanctioned within short period of trine after full filling the
required formality.

3. In order to crates charge on securities pledge should emphasized over

hypothecation.

4. A standard criterion is required for evaluation security.

5. Interest should be charged within an acceptable range so that it does not Create
any burden of the borrower.

6. For improve customer service complained cell should be formed in the branch.

7. In order to enlarge the skill of bank employees, training program should be applied
more frequently.

8. Top management executives should make decision quickly.

9. Activities of CBA should be reduced.

[Link] should be introduced in this branch because now days it is an important part
and parcel of an organization.
[Link] coordination should be needed.

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

Questionnaire

1. State the historical background of Sonali Bank?

2. What is the organizational setup of Sonali Bank?

3. What are the main objectives of the bank?

4. What are major sources of the bank fund?

5. What are the deposit rates of your bank?

6. What are the various rates of interest?

7. How to open an account?

8. How to close an account?

9. What are the provisions of opening and closing an account?

10. Do you State the check honouring procedure?

11. Why does a check become dishonor?

12. What are the factors considering by the bankers before honouring a cheque?

13. What are the major services of your bank?

14. What are the charges against those services?

15. What is the procedure of L/C?

16. Which are main document to open L/C?

17. Profitability of this branch?

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 Overall Banking Activities of Sonali Bank PLC,Kashiadanga Branch, Rajshahi

BIBLIOGRAPHY

1. Annual Report of Sonali Bank PLC.

2. Bangladesh Bank Bulletin

3. Economic Trends-2005

4. 1. M. Pandey "Financial Management" (7th Edition) Vikas Publishing House Pvt.

Ltd.-1995.

5. K. c. Shekhar, -"Banking theory and practice".

6. Kothari C.R. (Wishwa Pakistan 1998) "Research Methodology-Methods and

Techniques" Second Edition.

7. Ledger Book, Sonali Bank Ltd Kashiadanga Branch

8. M. Y. Khan and P.K. Jain "Financial Management" Fifth Edition.

9. Peter S. Rose, "credit Management" (5th edition)

10. Published and unpublished research reports

11. Uma Sekaran, "Research Methods for Business" Fourth Edition (Wiley Student
Edition)

12. Weston and Brigham "Managerial Finance"

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