INTERNSHIP REPORT

ON
Internship Report on Overall Banking Activities
 Declaration

I, Md. Fardus All-Amin, hereby declare that this research report is entitled “Overall Banking
Activities” is an original work conducted under the supervision of honorable Suchana Akther,
Lecturer, Department of Management, Rangamati Science & Technology University, Rangamati.
In the process of preparing this report, I have made my sincere efforts for the collection of
relevant data, study related materials, documents and annual reports of the Bank, and examine
relevant research and journals for the preparation of this report. I have tried my level best to
make this report as comprehensive and informative as possible.

I also affirm that the content of the report has not been submitted or published in any form to any
other university or institution for any degree or other purposes.

…………………………

Md. Fardus All-Amin

Roll No: 12

Reg. No: 2014210118

Session: 2014-2015

Department of Management

Rangamati Science & Technology University, Rangamati

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 Letter of Submission

To
Suchana Akhter
Lecturer of Management Department
Faculty of Business Studies
Rangamati Science & Technology University

Subject: Submission of the Internship Report on “Overall Banking Activities of Sonali Bank Ltd”.

Sir,
I am hereby submitting my Internship Report, which is a part of the BBA Program curriculum. It is great
achievement to work under your active supervision.
This report is based on, “Overall Banking Activities at Sonali Bank Limited”. I have got the opportunity
to work in Sonali Bank Limited at “New Court Building Branch” for 6-7 weeks, under the supervision of
Mr. Amir Azim (SPO) Branch Manager of Sonali Bank Limited, New Court Building Branch. I have tried
my level best to include all the relevant information to make the internship report informative and
comprehensive.
This internship gave me both academic and practical exposures. First of all I learned about the banking
operations and understood banking culture of a prominent financial institution of the country. Secondly,
this experience gave me the opportunity to develop a network with the corporate environment.
Lastly, I would like to express my sincere appreciation and thanks to your help while preparing the report.
I shall be glad to answer any queries that you may have in this regard.

Sincerely Yours

…………………………
Md. Fardus All-Amin
Roll No: 12
Reg. No: 2014210118
Session: 2014-2015
Department of Management
Rangamati Science & Technology University

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 Acknowledgement

At the very beginning I would like to express my deepest gratitude to the Almighty God
for giving me the strength and the composure to finish the task within scheduled time.
Preparation of this report required assistance, guidance and also took valuable time of
many important and prestigious personalities. I want to express my gratitude to Head of
Human Resource Department of Sonali Bank Limited for providing me the opportunity to
do my internship.
I worked with all the concerned officers of Sonali Bank Ltd, New Court Building Branch,
Who kindly provide me the information and training and other employee of that branch
helped me a lot about my practical experience in the bank. I would like to express my
sincere gratitude to all officers of this branch who had responded cordially to meet my
need relating to the report and give me their support. Of them I like to mention the name
of-

1. Md. Abbas Uddin (Manager, Senior Principal Officer).

2. Md. Gazi Abdul Quader (Principal Officer).

3. Mrs. Sumya Ferdaush (Senior Officer).

4. Mrs. Mst. Dilara Afroz Shathi (Officer).

Then I would like to give special thanks to my course supervisor Suchana Akther,
lecturer, Department of management, Rangamati Science & Technology University who
has given me the opportunity and directions to prepare such a meaningful report. I am
also satisfied to work under his supervision and care.
I would like to give special thanks to my respected trainers of Sonali Bank Staff College
to give me opportunity to doing internship in branch and co-operate us in doing my
research.

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Finally, appreciation is extended to those of my friends and family especially my father
who helped me to get the chance for internship program in the Bank.

Executive Summary

Banks are the major financial institution which play a major role in the financial system and
process of economic growth of a country. Banks creates money by accepting fund from surplus
unit to deficit unit. Sonali Bank Limited (SBL) is the largest and biggest national Commercial
Bank in Bangladesh. Its activities are vast and in cases unique to any other bank. It finances
government projects, provides unique services to people in need, even in places it works as
central bank. Profit earning is not its main objective but also provide better services for the mass
people. This report is prepared on the basis of my three-month practical experience at Sonali
Bank Limited, at New Court Building Branch, Rangamati. As an Internee, I had the
opportunity to do the different types of tasks under Sonali Bank Limited. During the internship
period, I have used my observations and gained experiences about various banking functions and
day-to-day operations. This report focuses a clear idea about the Overall Banking Activities of
Sonali Bank Limited. To fulfill this study, data were collected from Primary & Secondary
sources. Primary data collected by face to face conversation with the branch officers and
customers. Secondary data collected from the websites of SBL, Bank’s annual reports, journals,
accounts department guidelines, and different related books. I segmented my report into six
chapters. First covers the introduction about the report, second chapter covers the methodology.
Third chapter is the organizational overview of Sonali Bank Limited. Fourth chapter is the
general banking activities of Sonali Bank Ltd., New Court Building Branch. Fifth chapter
includes Loans and Advances. Sixth chapter is E-banking systems of Sonali Bank Ltd. Loans &
Advances department takes a long time to process a loan because the process of sanctioning loan
is done manually. Bank should train up its employee and also use modern tools & technologies
to process of sanctioning loan is done within a short time. Remaining chapter consists of

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conclusion and recommendations. From the study, we will get a clear picture of overall
performance of SBL and also special scenario of Loan and Advance. Though the recent scenario
of disbursing and recovering position of Sonali Bank Ltd. is not satisfactory but it is common
picture & true for all nationalized commercial banks. Overall performance of this bank is
satisfactory.

Chapter I

Introduction

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 INTRODUCTION

1.1 Introduction

In the age of globalization, the importance of banking sector is beyond description. Banking
sector is going ahead with the improvement new technological innovation. Banks are the major
financial institution which play a major role in the financial system of a country. Bank is a
financial institution which deals with money. Not all banks are the same. There are different
types of banks such as, co-operative banks, savings banks, investment banks and central banks.
Because of its transitional role, banking system occupies a vital place in a country’s economy.
Banking sector creates its new and strong positioned in our economy by taking advantage of its
strong heritage build on trust and by its new innovation of products and services. That was
creates a higher value for its respected customers and shareholders.

Banking sector shows it commitment in support our social economic development by giving loan
in our agricultural, industrial, and commercial and consumer credit sector. In the process of
acceptance of deposits and invest this deposits by provision of loan and advances. Banks is very
old financial institution, has become a caring banking through its dedicated and shows its
professionalism with new innovative services in the areas of banking.

In service sector banking is very emerging field in today’s family and business life. E-banking
has made our life very easy and comfortable because e-banking give opportunity to complete
transaction at home. In our country, banking is profitable industry than many other countries of
the world. After the liberation war most of the bank was under government control.

Banking sector is a highly competitive sector in the country. A small country like Bangladesh
has as many as 62 Schedule banks and 5 Non-scheduled banks, there are 6 state owned
commercial banks, 41 private commercial banks, 8 Islamic banks, 9 foreign commercial banks.

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Last five years, the banking sector witnessed of remarkable growth and economic development.
By introducing internet banking, mobile banking or SMS banking services is changing the global
trend of banking business. Introducing digital signature for online shopping and other transaction
added the banking services new dimension. Today bank like National Commercial Bank, Sonali
Bank Ltd. need to back customer confidence and skilled personnel to increase their service
quality. Internship program is a prerequisite for acquiring BBA degree. Limited as Internee and
selecting topic “Overall Banking Activities of Sonali Bank Limited”. I was placed in Sonali
Bank Limited, New Court Building Branch for a period of 6-7 weeks. This internship is an
orientation to the entire working activities of Sonali Bank Limited and a study on an overall
banking area.

1.2 Background
Every invention comes from necessity. As a result the banking world has been undergoing rapid
and fundamental changes. The speed of these changes has been maintained even after the global
financial turmoil experienced during the past few years. All over the world the dimension of
banking sector has been changing rapidly due to deregulation, technological innovation and
globalization to cope with this changing situation.

Banking system has also been changed now banks must compete in the market place both with
local institution as well as foreign ones. To survive and thrive in such a competitive banking
world, two important requirements are development of appropriate financial infrastructure by the
central bank and development of 'professionalism' in the sense of developing an appropriate
manpower structure and its expertise and experience. It is well recognized that there is urgent
need for better qualified management and better-trained staff in the dynamic global market.
Bangladesh is not exception of this trend. Banking in Bangladesh is facing challenges from
different angle through its prospect is bright in the future.

1.3 Significance of the Study

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This internship report is an important partial requirement of BBA program. This training will
help to improve knowledge and learning become perfect when it is associated with theory and
practice. By this internship program students can establish contacts and networking. Networking
may help to get a job in practical life. That is, student can train and prepare themselves for the
job market. A poor country like Bangladesh has an overwhelming number of unemployed
educated graduates. As they have no internship experience they have not been able to gain
normal professional experience of establish networking system, which is important in getting a
job. After completing my Bachelors of Business Administration (BBA) in Management as a
student of RMSTU, I wanted to complete my internship program from a reputed bank which
would be helpful for my future professional career. I got the opportunity to perform my
internship in the Sonali Bank Limited (SBL). I was spent to New Court Building Branch,
Rangamati. It was 6-7 weeks practical orientation program. This report has been prepared on the
basis of practical experienced on the day to day banking activities under the close supervision of
my internal guide teacher.

1.4 Objectives of the Study

The objective of this study is to have a clear concept and some practical experience about the
following:

1.4.1 General Objectives

 To know about the overall banking activities of a commercial bank.
 To gain practical experience in the job field.
 To fulfill academic requirement.

1.4.2 Specific Objectives

• To know about the profile of Sonali Bank limited.

• To get enough knowledge about general banking activities of Sonali Bank Limited.
• To gain knowledge about the credit related operations and maintenance in Sonali Bank
New Court Building Branch.
• To have a sound understanding of credit management system in the Sonali Bank Limited.

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 • To find out the procedure of Loan and Advances that followed by Sonali Bank Limited.
• To evaluate the credit risk management performance of this bank.
• To gain idea about security and loan recovery procedure.
• To point out the major findings of the report & provide some valuable recommendations
based on them.

1.5 Scope of the Study

The internship program is a partial requirement of the BBA (Management) program of the
Rangamati Science & Technology University, which construct a relation and build a bridge
between the real life state of affairs and theoretical concepts, and that were taught in the class-
room. After completing my courses, it was my great opportunity to get the practical knowledge
of the corporate world, that’s why I had to join in the Sonali Bank Limited, New Court Building
Branch and my internship report is based on the practical knowledge that I have performed.

At present, banking sector is one of the most established areas in Bangladesh. In the process of
forming a good economic system, banks are playing an important role in the country. For this
reason I choose to complete my internship with Sonali Bank Ltd. There I worked for 6-7 weeks
as an internee and this report cover the above aspect of the work. I have worked in all the desks
of general banking division and credit department of Sonali Bank Limited. I could not get the
opportunity to work in cash department.

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 CHAPTER II

Methodology

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 CHAPTER II
Methodology
To successfully complete my study I followed a methodical way. I visited the bank every day,
inspected the references, talked with employees and customers. I collected data from primary
and secondary sources. Data sources, period of data collection, processing and analysis of data
are briefly presented in this section. To identify the implementation, supervision and monitoring
practices interview with the employee and extensive study of the existing file and practical case
observation was done.

2.1 Data Sources

To perform the study data sources are to be identified and collected, the data are to classified,
analyzed, interpreted and presented in a systematic manner. In order to making a report, two
sources of data and information have been used widely.

The Primary sources are:

 Face-to-face conversation with the respective officers and staffs of New Court Building
Branch, Sonali Bank Limited.
 Direct communication with the client (randomly select).
 Practical work exposures from the different desks of different departments at the Branch
of Bank.
 Relevant file study as provided by the officers concerned.
The Secondary sources are:
 Annual Report and prospectus of Sonali Bank Limited.
 Different books regarding the general banking activities.
 Periodical publications by Bangladesh bank.

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  Different publications regarding general banking activities.
 Information provided in internet about general banking of Sonali Bank Limited.
 Website of Sonali Bank Limited.

2.2 Sampling Unit

The research sample is comprised of 20 respondents of New Court Building Branch of Sonali
Bank Limited (SBL). The breakdown of respondents is as follows:

SAMPLE FRAMEWORK
CUSTOMER 10
EMPLOYEE 10
TOTAL 20

2.3 Sampling Procedure

I have surveyed respondents conveniently and judgmentally. Even though, there were some
refusals during the interviews from different respondents, where few people refused to
participate in the survey either because they were in a hurry or they were unwilling to do so.

2.4 Questioner Design

Based on the discussion with the employee of the bank and by gathering ideas from literature
review, I have developed a questioner and developed ten different questions (ten for customers
and ten for employees) to collect response.

2.5 Period of Data Collection

Practical Orientation in bank has started from the 01 December 2019 and the duration of this
internship was 45 days.

2.6 Processing and Analysis of Data

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Collected data was compiled and processed with the aid of MS Excel. The raw data was
collected from various sources. The Excel program has also been used for the table, figures,
percentages, charts & graphical presentation. Mostly descriptive statistics were used to achieve
the objectives of the report.

2.7 Limitations of the study: Learning all the banking functions within just 45 days was really
tough.

 Another limitation of this report is bank’s policy of not disclosing some data and
information for obvious reason, which could be very much useful.
 The bank authority was very busy, so they could not give me enough time for discussion
about various problems.
 In case of performance analysis secondary data are used.
 These studies completely depend on official record and annual reports.
 To prepare an analytical report need financial assistance. The financial assistance
provided by the department is insufficient. In perspective of lack sufficient money,
various types of analysis did not become possible.
 There are very short time to complete this study program properly, therefore I had to
conduct with all functions within short time.
 I couldn’t add some updated information due to the banks new annual report was yet not
published.
 This is my first experience on job, so there may arise some faults though I have tried my
level best.
 All available data couldn't be verified.
 Due to lack of adequate studies of the loan sanction, disbursement, monitoring &
recovery process.
 Lack of sophisticated knowledge.
 Lack of published materials.

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 CHAPTER III

ORGANIZATION OVERVIEW

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 Organization Overview
This chapter emphasizes on the historical background of the Sonali Bank Limited and it also
include organization structure, financial condition, products & services etc.

Corporate Vision and Mission

Vision: Socially committed leading banking institution with global presence.

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

Slogan: Your trusted partner in innovative banking.

Core Values

The core value proposition of Sonali Bank Limited consists of the following key elements which
would assist the Bank in perceiving its employees to work as a team towards accomplishment of
assigned duties and responsibilities for achievement of desired objectives. The core values
include:

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

 Objectivity: All persons will have definite objective in carrying out their tasks.
 Integrity: Protection and safeguard of national and customer’s interest are vital elements
for societal trust.

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  Excellence: Excellent performance and effectiveness are pre-conditions to ensure quality
service to the large customer base of the Bank.

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

satisfaction of valued customers.

 Accountability: All employees are responsible for their activities and will remain
accountable to their respective superior for accomplishment of tasks.

 Transparency: Information to be kept open for all so that stakeholders can have proper
ideas about the activities of the Bank.

 Team Work: Open communication, discussion and interaction amongst the employees
would ensure unification of actions and efforts towards achieving the common goal(s).

 Self-Reliance: Each employee will have ownership attitude towards the Bank and self
confidence in his work for the betterment of the Bank.

 Innovation: New and innovative products are the needs of the time for which continuous
action oriented researches are being carried out.

Corporate Profile:

Table 01: Corporate profile of Sonali Bank Limited

Name of the Company Sonali Bank Limited

Chairman Mr. Ziaul Hasan Siddiqui
Managing Director & CEO Mr. Md. Ataur Rahman Prodhan
Company Secretary Mr. Md. Hasanul Banna
Legal Status Public Limited Company
Genesis Emerged as Nationalised Commercial Bank in 1972,
following the Bangladesh Bank (Nationlisation) Order No.
1972 (PO No. 26 of 1972)
Date of Incorporation 03 June, 2007
Date of Vendor's Agreement 15 November, 2007
Registered Office 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh

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 Authorised Capital Taka 6,000.00 Crore
Paid-up Capital Taka 4530.00 Crore
Number of Employee 17,965
Number of Branches 1218
Phone-PABX 9550426-31, 33, 34, 9552924
FAX 88-02-9561410, 9552007
SWIFT BSONBDDH
Website www.sonalibank.com.bd
E-mail itd@sonalibank.com.bd

Year Authorized Capital Paid-up Capital

2018 60000 45300

2017 60000 42300

2016 60000 38300

2015 60000 38300

2014 60000 31200

Capital Structure:
The capital structure of Sonali Bank Ltd. is quite strong. At present, Authorized Capital of the
company is BDT 60 Billion (BDT 1000.00 crore) divided into 6,000,000,000 ordinary shares of
BDT 100 each.

Table: Authorized & Paid-up Capital (2014-18)

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 Capital Structure
70000

60000

50000

40000

30000

20000

10000

0
2014 2015 2016 2017 2018

Authorised Capital Paid-up Capital

Figure: Authorized & paid up capital

Branches and Subsidiaries

At present the number of sonali bank can be identified with the number of 1218 in total 1216
branches represent the countries inward banking activity and the rest of 2 branches are situated in
foreign country. Sonali bank maintains there inward activity through 1213 branches, in which
746 branches are providing banking activities in villages and rural area. And the rest numbers of
467 branches are established to cover the cities and towns of the country.

Among of these 1216 branches, 46 branches are declared as “Authorized dealer (AD)” branches
through the Sonali Bank performs its foreign trade activities for its customers. The New Court
Building Branch is one of the branch of Sonali Bank. For the record the two foreign branches are
carrying the banking activities in Kolkata (West Bengal) and Shiliguri in India. To support
countries internal banking activity there are 11 general manager (GM) offices, 46 principal
offices and 16 regional branch offices in all over Bangladesh. Sonali bank is performing its
official activities under the direction of 46 different department of its head office.

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 1. Total No of Branches 1218
a) No of Foreign branches 2
b) No of Local branches 1216

i) No of Rural Branches 749

ii) No of Urban Branches 467

2. No of Regional Offices
16
3. No of Principal Offices 46
4. No of G.M. Offices 11

Table: Total Number of Branches

Subsidiaries:
1. Sonali Exchange Company Incorporated (SECI) having 10 (Ten) branches in USA.
2. Sonali Investment Limited (Merchant Banking) having 4 (Four) branches at Motijheel,
Paltan, Uttara, Mirpur in Dhaka and 1 (One) branch in Khulna, Bangladesh.
3. Associates:
 Sonali Bank (UK) Limited having 2 (Two) branches in UK.
 Sonali Polaris FT Limited.
4. Representative Offices: (3) one in Jeddah (KSA) one in Riyadh (KSA) and one in
Kuwait.
5. Correspondence: 639

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Organogram (Functions Wise): Sonali Bank is the largest nationalized commercial bank in
Bangladesh. The head office of the bank is located at motijheel commercial Area which is the
controlling Headquarter. GM office is the divisional Headquarter of a Division. Principal office
is the district Headquarter which has jurisdiction over the entire area of a District. The principle
office is the local point of the bank’s administrative zone of the District. The regional officer is
situated in the Thana level within the district, is under control and supervision of the principle
office of the district. Regional officer are responsible for their activities to the principle office.
Regional heads exercise control and supervision overall the branches within their jurisdiction and
keep the head of principle office informed the progress of their respective areas from time to
time.

Head Office

G.M Office

Principle Office

Regional Office

Branch Office

Organogram: (Position Wise): The management of the bank is vested on a board of directors,
subject to overall supervision and directions on policy matters by the board which is constituted
in terms of Bangladesh bank (Nationalization) Order 1972. Board of directors, constituted by
seven members has authority to organize, operate and manage its affairs on commercial
consideration within the board policy of government. There are directors appointed by the

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government. Other members of the board including MD are also government appointed out of
that at least three have the experience in the field of Finance, Banking, Trade, Commerce,
Industry and Agriculture. The managing director is the Chief Executive of bank. He executes all
the activities under the direction of board. All line and staff personnel of bank’s are own
recruitment except member of board of Direction.

BOA
RD
OF
DIRE
CTO
MANAGING
RS
DIRECTORS

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