General Banking Activities of Sonali Bank Ltd

General Banking Activities of Sonali Bank Limited

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1

#%a&ter' ( Introduction


2

#%a&ter' ( Introduction


2

(.( "b)ective of t%e study'

This study is intended for providing me valuable practical knowledge about banking operation system in Bangladesh. However, the specific objective is the following



o revie$ revie$ t%e general banking activities and o&erating system of Sonali Bank Limited.

(.* +ationale of t%e study'

Banks are important financial institutions in the economy. They play an important role in the development of a country. !o the present economic state of Bangladesh demands immediate development of the financial institutions. To build up potential future of a banker, practical orientation program on banks is necessary. This report is a re"uisite of the practical orientation orientation program. The report helps to build up a perception perception about day#to# day affairs of the bank.

$nternship $nternship program is a part of our academic structure and it implies practical practical knowledge about some things. $ have tried my best to be oriented with the practice of banking in real life.

(., Met%odology' Met%odology'

Both primary and secondary sources of data have been used in preparing this report. The information% data of this report are mainly collected from secondary sources.

The Primary sources are: o

&irect communication with the officials of !onali Bank'imited.

o

&irect communication with the client

The Secondary sources are: o

(nnual )eport and prospectus of !onali Bank 'imited

o

&ifferent books regarding the general banking activities.

o

*eriodical publications by Bangladesh bank.

o

&ifferent publications regarding general banking activities.

o

$nformation $nformation provided in internet about general banking of !onali Bank 'imited.


+

(.- Limitations of t%e study'

'earning all the banking functions within just - days was really tough. 

(nother 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.



$n 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. $n perspective of lack sufficient money, various types of analysis did not become possible.



This is my first e/perience on job, so there may arise some faults though $ have tried my level best.


0

#%a&ter' * "vervie$ of Sonali bank limited




*.( Establis%ment' Sonali Bank , the largest commercial bank in the country, was established under Banglades% Bank Nationali/ation0 "rder (12* &residency "rder No.*3 of (12*0.

By taking over branches of former National Bank of !akistan4 Bank of Ba%a$al&ur limited and !remier Bank Ltd. ere two private banks performing class banking over

the century in that period and 3ational bank of *akistan was government supported bank which was established to finance the jute sector in 4ast *akistan in the early period of *akistan. (fter the birth of Bangladesh on 15th &ecember 161, newly formed !onali Bank for mass banking got special facilities from the government to work on behalf of Bangladesh bank in those areas where Bangladesh bank is not available. ith the increase of commercial and by virtue of performance within a few years, it becomes the largest commercial bank of the country with 1171 branches up to now.

*.* Management'

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 83ationali9ation:

;rder 162 5igure6*.(0 . Board of directors,

constituted by seven members has authority to organi9e, operate and manage its affairs on commercial consideration within the board policy of government. There are directors appointed by the government. ;ther members of the board including <& are also government appointed out of that at least three have the e/perience in the field of =inance, Banking, Trade, >ommerce, $ndustry and (griculture. The managing director is the >hief 4/ecutive of bank. He e/ecutes all the activities under the direction of board. (ll line and staff personnel of banks are own recruitment e/cept member of board of &irection.


5

Board of 7irectors

Managing 7irector 7e&uty Managing 7irectors General managers 7e&uty General managers Assistant General managers Senior !rinci&le "fficers !rinci&le "fficers Senior "fficers "fficers

85igure6*.(' Hierarchy of *osition9


6

*., "rgani/ation'

!onali Bank is the largest nationali9ed commercial bank of the country. $t has e/tended 1171 branches through out the country and abroad to serve the nation. There are two? !onali 4/change >ompany incorporations 8!4>$: in @(! and others are in planning stage. The head office of the bank is located at motijheel commercial (rea, &haka that is the controlling Head"uarter 85igure6*.* :. $t has eight A< officers in si/ &ivisional Head"uarters and twenty si/ principle ;fficers and thirty two headed by )egional ;fficers. *rinciple ;fficers is headed by &A< and each &epartment is headed by (A<. &ifferent grade officers depending on the si9e and nature of branch head the branches. *rincipal office Head"uarter has jurisdiction over the entire area of a &istrict i.e. the principle office is the local point of the banks administrative 9one of the &istrict. The regional officer is situated in the Thana level within the district, is under control and supervision of the principle office of the district. )egional officer are responsible for their activities to the principle office. )egional heads e/ercise control and supervision overall the branches within their jurisdiction and keep the head of principle office informed the progress of their respective areas form time to time.

:ead "ffice G.M "ffice !rinci&le office +egional "ffice Branc% 85igure6*.*' =unctional Hierarchy


7

*.- Sonali Bank at a glance' able6*.(' Highlights on overall activities of the bank

!erial 3o.

4/planation

2--

2-1-

8taka in core: 261.1 -1600.-0

8taka in core: 2222.55 -2+5-.05

1. 2. +.

(uthori9ed capital *aid up capital )eserve capital

0.

&eposit

0-51.1

0671+.01

. 5. 6. 7. . 1-.

'oan and advance Total $nvestment 4arnings Total income Total 4/pense =oreign e/change business

20-5.6 0-72.65 2+1+.16 +25. +-2.0

2-5+0.65 777.-6 27.15 +62.-1 +0-.01

4/port

5000.2-

6010.2

$mport

575.02

150-0.2

)emittance8outward:

26.- 1162.56 8Source' annual report of !onali Bank on 2-1-9




*.; Government Intervention'

=inancial services have traditionally been the subject of close government scrutiny and it is to be e/pected that e/change rates, interest rates and terms of credit should be closely monitored in the public interest. $n the recent years, however, governments have tried to use interest rates, credit regulations and informal controls on banks as a means of managing the supply of money in the economy in an effort to increase or reduce consumer spending and to hold back or promote investment by business. &uring the 165 to now, the effect of these policies has been to add a new dimension of risk and uncertainty to financial markets which were already fluctuation wildly because of the oil crisis, the commodity boom, increasing inflation and controlled e/change rates. Besides government is a big problem for the nationali9ed bank in Bangladesh. Aovernment forces to the nationali9ed bank to insider lending, lend to governments priority sector, state#owned enterprises, sick industries, borrowers with political influence as well as provide e/emption schemes to fulfill its pre#election commitment. The loan e/emption program of 175#76 and 11#2 e/empted 11.+6 percent and 2.5 percent respectively of total bank loan outstanding. (s a result, nationali9ed commercial banks are burdened with very large classified loans 8+2 percent of total loans: against which very large provisions had to be made which affected profit position adversely. >lassified loans in the countrys banking sectors on Cune +-, 15 amount to ++.- percent of total loans. $t was +0. percent as on &ecember +1, 1+. However, net income of local banks is drastically reduced, as the re"uired to maintain very large provisions for bed debts and interest suspense accounts.


1-

#%a&ter' , General Banking Activities of Sonali bank Limited


11

Aeneral banking is the side where banking offer different alternatives to the clients to deposit and remit their money. To encourage the clients, bank offers different options in front of their clients.
!uch as# 1. (ccounts ;pening !ection 2. >ash !ection +. &eposit !ection 0. Bills and >learing !ection . )emittance !ection 5. (ccounts !ection 6. 'oan and (dvance !ection 7. =oreign 4/change !ection

,.( Accounts "&ening Section'

(ccount ;pening is the gateway for clients to enter into transaction with the bank. $t is the foundation of banker#customer relationship. ( customer can open different types of accounts through this department. !uch as# 

>urrent account.



!avings account.



!hort Term &eposit (ccount 8!T&:.



=i/ed &eposit )eceipts 8=&):.



!pecial &eposit *ension !cheme 8!&*!:.



!onali &eposit !cheme 8!&!:.



4ducation &eposit !cheme 84&!:.




12

,.(.( #urrent Account 

>urrent account is an account where the account holders can make numerous transactions within a working day. There is no transaction on the number of deposit and withdrawals from the current account within availability of funds. (s the bank is under the obligation to repay this deposit on demand, on interest is paid in this account. Aenerally, current account is opened for businessmen and trades for easy transaction. ,.(.* +e
There are some re"uirements that have to be completed for opening an account. !ro&rietors%i& 5irm'

There is account opening form for proprietorship firm provided by !onali Bank. =or this account, a customer must need to submit the following papers with the form 

$ntroduction of the account.



Two photographs of the signatories duty attested by the introducer.



>opy of trade license.



!eal of concern.

!artners%i& 5irm'

There is account opening form for partnership firm provided by !onali Bank. $ntroduction for running an account is given in this form. 4nclose &ocuments for partnership account 







*artnership letter duty signed by all partners.



*artnership &eed duty certified by 3otary *ublic.



>opy of )egistration 8if any:.



!eal of the concern.



@pdate Trade 'icense.


1+

Limited #om&any'

There is an account opening form used for limited company. There are two kinds of limited company. The bank always takes precautions for opening this type of accounts. !everal documents submitted by the clients should be checked carefully by bank to be legally in safe position. 4nclosed &ocument for 'imited >o. (ccount 







!ignature and seal of the client.



Trade license.



>ertified copy of memorandum and articles of association.



>ertificate of incorporation.



Broad resolution for opening account duty certified by the chairman% managing director.



'ist of directors along with designation and specimen signature.



>ertificate from the registrar of join stock company is entitled to commence business 8in case of public 'td. >ompany.:



>ertificate from broad of investment 8incase of joint venture or foreign >o.:



ork permit order from ministry of industry. 8$ncase of foreign nation.:



Coin venture agreement 8incase of join venture.:

Araphically showing the deposit mi/ by types 85igure6,.(' &eposit
,.(., Savings Account Individual=>oin0'

!avings account 8!B: is means for the people of the people lower and middle classes, who wish to save part of their incomes to meet their future needs and intended to earn an income from their savings. =rom savings account the account holder can deposit money so many times the holder wishes. But the holder can not withdraw money more that two times in a week. (lso the holder can not withdraw money more than 2-,--- tk at a time without any permission of the bank. The holder is given an interest on their deposited amount after a certain period at a certain rate. The holders of this type of account are


10

mainly students,

teachers, employees, householders. =or opening of this type of

accounts, the following re"uirements are necessary 

*hotograph attested by the introducer.



(n introducer of !onali Bank.



=or joint accounts, signatures of all the account holders are necessary.

,.(.- S%ort erm 7e&osit S70'

!T& account is same as current account. Here money is kept for a very short time. ( notice is needed prior for withdrawal of money. !onali Bank offers short time deposit to its valued customers. !hort#term deposit is the deposit where the interest is paid on monthly basis. ,.(..; 5i?ed 7e&osit Account' There are deposits which are made with the bank for a fi/ed period of specified in

advance. The bank does not maintain cash reserves against this cash deposit. (nd therefore, the bank offers higher interest rate on such deposits. These deposits generally constitute -D or more of the total deposits. @sually, customers are allowed to open this account for a certain period of time and the rate of interest varies in accordance with the terms of the specified time. $f any holder wishes to draw money before e/pire of time, he%she is not given the entitled interest rate.

,.(.3 Issuing #%e
The following procedures are maintained to provide a che"ue book. 

(t first the customer will fill up a re"uisition form.



The pages of the che"ue book under issue shall be counted to ensure that all the pages and bank re"uisition slip are intact. The name and account number shall be written on the cover page of the che"ue book and its re"uisition slip.



The name and account number of the customer shall be entered in the che"ue book register against the particular che"ue book series.



Then the officer in charge signs the register, che"ue book and the re"uisition slip.



The che"ue book is handed over to the customer after taking acknowledgement on the re"uisition slip and the register book.

( cover file containing the re"uisition slip shall be effectively preserver as vouchers. $f the ledger keeper notices any defect, he%she will make a remarked to that on the


1

re"uisition slip and forwarding it to the cancellation officer to decide whether a new che"ue book should be issued or not. ,.(.2. !rocedure of #losing an Account'

( customer may close his%her account ant time by submitting an application to the branch. The customer should be asked to draw the final check for the amounts standing to the credit of his%her account less the amount of closing and other incidental charge and surrender the unused che"ue leaves. The account should be debited for the amount of closing charge etc. (nd the authori9ed officer of the bank should destroy unused che"ue leaves. $n case of join account the application for the account should be signed by the joint account holder. ,.* Interest +ate'

!onali bank diversified its rate of interest on loan and advances in compliance with the interest rate policy declared by the government in 2--. To encourage the agricultural sector the rate of interest fi/ed to 2.-#15.- percent and to increase the rate of industrial production and services industry, the rate of interest rate is fi/ed to .-#11.- percent and 1+.- percent. )ate of interest of sonali bank is given below# able6,.*' $nterest rate of !onali Bank

)ate of interest 8$n percentage: Eear

2--7 2-- +1

st

!avings

&eposit !hort =i/ed

account

term

deposit

deposit

account

account 2.--

.2#

2.-

5.2 .2#

+.-

5.2 5.2#

+.0.-.--

march, 2-1+-th

'oan an advance eighted (gricultural $ndustrial !ervice eighted average

.12

sector

sector

sector

average

7.--#.--

.--#

12.--

.7

2.--#15.--

11.-.--#

1+.--

1-.0-

.+7

2.--#15.--

11.-.--#12.- 1+.--

1-.51

.+

2.--#15.--

.--#

1-.7

0.6

6.2 .--

+.-

Cune,

5.2# 6.2

1+.--

12.--

2-1FSource' activities of bank and financial institution, 2--#2-1- ,.,.(#as% Section'


15

Bank as a financial institution, accept surplus money from the people as deposit and give them opportunity to withdrawn the same by che"ue or by any other instrument. (mong the banking activities, cash department plays a vital role. $t does the main function of a commercial bank e.g. receiving the deposit and paying the cash on demand.

,.,.* #as% +eceiving !rocedures'

The work of cash receiving counter is to e/amine the deposit slip. &epositor uses the prescribed deposit slip supplying by the bank for depositing cash, che"ue, draft? pay order etc. in all types of deposit the teller must che"ue the following things 

The slip has been properly filled up.



The title of the account and its number.



The amount in figure and in words is same.



$nstrument signed by the depositor.



&ata of the instrument.

(fter checking all these things the teller will accept cash, che"ue, draft, pay order etc. against deposit slip. The teller will place the cash in cash drawer according to denominations. The teller will place signature and affi/ Gcash received and record in the cash received register book against the account number. (t the end of this procedure, the cash officer passes the deposit slip to the computer section for posting purpose and returns the customers copy.

&ate

*articulars >ash (%>

&r. 8Tk.: IIII.

&r. >ustomers (%>

>r.8Tk.: IIII.

>r.

,.,., #as% !ayment !rocedures'


16

$n order to safeguard the position the banker has to observe the following precaution before honoring a che"ue 

( che"ue must be locked whether it is an incomplete che"ue.



The playing officer should see whether the che"ue is drawn on his%her branch.



He must see whether the che"ue is post dated or pre dated. ( letter must not pay any post#dated che"ue.



The officer must carefully see the apparent tenor of the che"ue. $f it is mutilated or martially altered then the officer must not honor it.



The officer must compare the signature of the che"ue with the signature on the specimen card.



The officer must verify the regularity of the endorsement.



The officer may allow overdue against a che"ue if prior arrangement is done with the bank.

,.,.- !assing t%e #%e
(fter verifying the above#mentioned things the officer passes it to computer section for more verification. (fter that it is passed to the cash to make payment. By putting Gpay cash seal the cash officer make it clean to pay. The cash officer gives the cash amount to the holder and record in the paid register.

&ate

*articulars >ustomers (%>

&r.

>ash (%>

>r.

&r. 8Tk.: IIII.


>r.8Tk.: IIII.

17

,.,.; 7is%onor of #%e
( banker can dishonor a che"ue in the following situation 

$nsufficient fund.



*ayment stopped by drawer.



(lternation re"uire in drawer signature.



4ffect not clear in the che"ue.



4/ceed arrangement in che"ue.



=ill cover note received.



*ayees endorsement irregular%illegible%re"uired.



&rawer signature different and re"uired.



>he"ue is postdate%mutilated%out of date.



>learing stamp re"uired cancellation.



>he"ue crossed Gaccounts payee only.



>ollecting banks discharge irregular% re"uired.

,.- 7e&osit Section'

&eposit is the lifeblood of the bank. =rom the history and origin of the banking system, we know that deposit collection is the main function of a bank. The officer of the deposit section maintains account number of all the customers of the bank. They use different code number for different account. The officer makes position three types of transactions such as cash, clearing and transfer section. This section performs the following takes 

*ost kind of transactions.



*rovide on demand report.



>he"ue maintenance.



*reparation of day transaction position.



*reparation of closing monthly transaction position.

,.; Bills and #learing Section'

=or safety and security in financial transaction people use financial instrument like &&, *;, and che"ue etc. commercial banks collect these financial instruments on behalf of their customers. This process that the bank use to collect and clear on behalf their of their


1

customers account, is known as clearing and collection. (t &haka Banglades% Bank plays the role of #learing :ouse for all banks. The area where Bangladesh bank is not available sonali bank plays the role of clearing house on behalf of Bangladesh bank. The main function of this section is to collection instrument on behalf of the customers through Bangladesh bank clearing house, outside bank clearing 8;B>:, $nter branch clearing 8$B>:. @pon receipt of the instruments this section e/amines the following things



hether the paying bank within the &haka city.



hether the paying bank out side of &haka city.



hether the paying bank is its own branch.

,.;.( "ut$ard #learing'

;utward clearing held if the instruments are to collect by specified branch within the &haka city and not for their own branch. Here the following procedures are followed 

)eceive of the client duty signed instruments.



>hecking for any apparent discrepancy.



>learing stamps are affi/ed on the instrument and on the deposit slip.



Branch code number also affi/ed on the instruments



The authori9ed signature endorses instruments.



*articulars of the instruments and vouchers are recorded in the Goutward cleaning register.

,.3. +emittance t%roug% a 5oreign Bank'

The remitter can send money through any financial institution which branches in both countries. $n this case, the bank in Bangladesh receives the amount from its foreign branches and then transfers it to the bank where the client wishes to draw the money. Here the bank needs to fill up a > from if the amount of money is J2,--- or more. $t is done for the declaration for remittance received from foreign country in the amount of J2,--- or more.

,.3.( Local +emittance'


2-

hen money is transferred through one place to another place within the country, it is called local remittance. !onali Bank has highest number of branches all over the country and offers various kinds of remittance facilities to the public. The main instruments issued by sonali bank for remitting funds are 

*ay#;rder 8*;:.



&emand &raft 8&&:.



Telegraphic Transfer 8TT:.



,.3.* !ay6 "rder !"0'

*ayment order is an instrument that is used to remit fund within a local area i.e. within the same clearing house area. =or e/ample, if we want to remit fund from one place of &haka to another place, we generally use payment order. (ccounting treatment *; by >ash

&ate

*articulars >ash (%>

&r.8Tk: III.

&r.

Bill payable 8*;:

>r.

*; commission

>r.

>r.8Tk: III.. III..

(ccounting treatment *; by >he"ue

&ate

*articulars >he"ue 8(%> 3o.: (%>

&r.8Tk: III.

&r.

Bill payable 8*;:

>r.

*; commission

>r.


>r.8Tk: III.. III..

21

,.3.*.( 7emand 7raft 770'

$t is an instrument that is drawn on one banker office to another or other bankers branch to pay certain sum of money to the named person. $t is generally used to remit fund from one corner of the country to another. =or e/ample, if we want to remit fund from &haka to khulna we use &&. && is very popular instrument for remitting money from one corner of the country to another. Difference between Pay- Order and Demand Draft:

There are some differences between pay order and demand draft. These are given below# 

$n case of demand draft both the payer and payee need to have accounts. But there is no certain rule for pay order.



*; is used in the same clearing areas? && is used for all kinds. && can not be done in the same clearing area.



&& is drawn on a certain bank office. But there is no certain rule for pay order 8*;:.

,.3.*.* elegra&%ic ransfer 0'

!ome times the remitter of the fund wants the money to be available to the receivers account immediately. $n that case bankers arrange to remit fund telegraphically. Here the remitter bears the additional charge for tele/%telephone.

(ccounting treatment for 8TT: &ate

*articulars

&r.8Tk: III.

>r.8Tk:

>ash (%>

&r.

TT (%>

>r.

TT >ommission (%>

>r

III..

TT >harge (%>

>r.

III.


III..

22

,.3.*., Mail ransfer M0'

$t is an instrument that is drawn by one banker office on another or other bankers branch to pay certain sum of money to the named person. This instrument is not given to the holder but the bank carries it and a message is sent to the particular branch. $t is generally used to remit fund from one corner of the country to another.

,.2 Account Section'

This is a very much crucial section for each business concern. (s such this is a crucial department for a commercial bank. )ecords of all the transactions of every department are maintained here. (ccounts section verifies all financial amounts and contents of transactions. 4very working day all the account is balanced and reconciled to remove any discrepancy. The overall activities of account section are as follows 

)ecord all transaction in the cash book.



)ecord all transaction in general and subsidiary ledger.



*repare daily fund function, weekly position, periodic statement of affairs etc.



*repare necessary statement for reporting purpose.





*ay all e/penditures on behalf of the branch.



Branch to branch fund remittance and support for account treatment



Budgeting for branch.




2+

+.7 #ustomer Service' To ensure "ualified customer service sonali bank has started in addition to computeri9ation corporate client service and one stop service. To facilitate the foreign e/change activities !onali bank has launched !$=T 8!ociety for orldwide inter bank =inance and Telecommunication: system in its 12 branches. The bank has launched website, )euter service, $nternet service, and )eady cash service. The bank has taken a plan to launch shared (T< system in various important places. (lready, it has given work order for this.

,.1#om&uteri/ation'

!onali Bank starts its computeri9ation process at &ecember, 17. (fter that it e/pands its computeri9ation process by establishing )$!4 system 8)! 15---: ;!%2, '(3 etc. up to this time 11+ branches are under computeri9ation system. Beside this Gone stop is begin given in its 5 branches.
=oreign e/change business and standard of customer services is begin increased and speed up of information flow by using the computeri9ation system '(3 8'ocal (rea 3etwork: and (3 8ide (rea 3etwork:.



$t has established 6 subsidiary companies in @nited !tates named !onali 4/change >ompany $ncorporated 8!4>$: and  officers of !onali Bank, @K 'td. 4stablish with 0D share with govt. in @K so that 3on#)esident Bangladesh can send their money to Bangladesh through a vital channel as fast as possible.



)ecently !4>$ established a web based )emittance !oftware in @nited !tates.



!onali Bank age 4arners >orporate Branch established electronic link with its branch in

20

$=)redit advice. This has been started as an e/perimental but this system will be started among +-- branches soon.

General advance of Sonali Bank ,.(@ Loan and Advance Section'

=or any commercial bank deposit and loan are two important sections. To service in the market banks have deal with the deposited money. They have to use the deposit efficiently in profitable sector. !o dealing with the loan is very crucial for the bank. @p to +-th Cune, 2--5, sonali bank had 5050+ million taka distributed loan and by that time it recovered 12- million taka. $f we analy9e sector wise loan, we can see that up to +-th Cune 2--5 sonali bank distributed loan on agricultural sector Tk.27- million and recovered 276- million. $n industrial sector, it distributed Tk.2-6 million and recovered Tk. 2-+1. (nd in other sectors it had distributed loan of Tk. 50-6+5 and recovered Tk. 75+-0.

=or economic development of the country, reduction of unemployment, reduction of import dependency and to be self sufficient sonali bank continued to distribute loan in this sector. =rom 1st Canuary to Cune +-th the bank had +5 projects in this sector the monetary value of which is Tk. 102 million.

=rom 16+#60 sonali bank has been providing agricultural loan in rural areas. The bank is distribution this loan through its 6-6 branches in 15+ unions allover the country. =rom 166 beside krishi bank, sonali bank is also distributing special agriculture loan. @p to this sonali bank has distributed Tk. 20757 million of which Tk. 1672 is still due.


2

able6A' sector wise loan fo !onali Bank.

!' no. 1.

!ector (gricultural M fish a: >rops

2.

b: ;thers8without crops: $ndustrial a: 'arge M medium.

+. 0. . 5.

b: !mall M handicraft. holesale% retail business and restaurant% hotel. $nsurance, real estate and service business. Transportation M communication !pecial loan project. a: *overty reduction.

6.

b: ;thers ;thers 8with working capital: Total

Tk.8
FSource' activities of bank and financial institution, 2--#2-1-

Aeneral (dvance is as follows +.11. >ash credit 8>>: $. Hypothecation here, the goods are available in the shop. $$. *ledge here the goods are available in the godown. $f the party is disabling to pay the loan then the bank can take those goods which are available in the shop or in the godown.

Security' these are two types of security. These are given below#

a: >ollateral security or sohayok jamanath. $n this case, land building? showroom etc is the registered mortgage.


25

b: *rimary security here, the goods of the show room or products of the mills, factory etc are the security in this bank. $f the parties are disable to pay the loan then the bank at first take the primary security. $f the primary security cannot fulfill the banks need then bank take the collateral security. (ny one who wants to take any loan must open an account in that branch.

$o system of cas% credit ##0'

1. Trading concern and 2.
,.(,. #onsumer credit' $n consumer credit bank provide at least one lack taka. (s a loan bank provide this consumer credit loan to buy home furniture to the party. $n this case, the parties who take this loan make a grantor. The grantor work as a security of the bank the grantor must be a government employee and a known person of the party.

,.(-. eac%ers loan' sonaliu bank also provide teachers loan. $n which branch the teacher get his salary he can take this type of loan from that branch. ;ne lack taka he can take as a loan and he has to pay this money within one year.

,.(; Small loan' This type of loan treated as a latest loan of the bank. ( grantor works as a security in this type of loan. =or some purpose any one can take these types of loan. !uch as# $. *harmacy.


26

$$. Aarments products. $$$. Alossary shop. $N. Tailoring. N. *hone, fa/, *hotostat. N$. )estaurant, hotel. N$$. Cew alary. N$$$. Hardware. $O. >osmetics. O. (ny kind of department store. O$. Narious types of trading business. O$$. Beauty parlor. O$$$.

27

,.(3. Sonali bank staff loan' !taff of sonali bank can take this type of loan. !onali bank provide staff loan in various purpose among the sonali bank staff. These are given below $. !HM B' or sonali bank house building loan. !onali bank also provide loan for flat. $$. <>' loan or motor cycle loan. $$$. >omputer loan. Here, interest rate of loan is very small. $nterest rate is  percent. Bangladesh bank set up the interest rest. !ecurity of house building or flat is land the amount of computer loan is 6 thousand taka. $n any staff is disable to pay his loan then the bank taking it from his provident fund.

,.(2. Bank grantee' $f any party wants to take gas line in his industry from titas gas then titas gas want a bank grantee from the party. sonali bank also provide service as a bank grantor. $n the party is disabling to pay money to the titas gas then titas gas collect money from that grantor bank and the bank has to pay that money to titas gas. (fter that the bank collects that amount of money from that party. sonili bank also service as a bank grantor in custom duty.

,.( General :ouse Building GBL0' AB' means general house building loan. $t is open for the general people. (ny one can get this type of loan. $n this case, the party has to mortgage his land as a security of the loan. 3ow a days sonali bank doesnt provide this type of loan.


2

#%a&ter' General Banking Activities "f Sonali Bank Limited At +amna #or&orate Branc%.


+-

(s $ have worked !onali bank 'td. (t )amna >orporate Branch for three months in general Banking &epartment, $ have worked the following sections. $ have taken help in making report from the following sections officers with whom $ work and from my knowledge $ gathered during $nternship period. The sections are given bellow 1. (ccount ;pening !ection 2. >ash !ection +. >learing !ection 0. *ay ;rder !ection . &eposit !ection The activities of each section are bellow -.( Activities of Account "&ening Section'

(ccount opening is the gateway for client to enter into transaction with the bank.$t is the foundation of banker#customer relationship. ( customer can open different type of account through the department. The following types of account are opened here         

>urrent (ccount !avings (ccount !hort Term &eposit (ccount8!T&: =i/ed &eposit )eceipt8=&): !pecial &eposit *ension !cheme8!&*!: !onali &eposit !cheme8!&!: 4ducation &eposit !cheme84&!:
Requirements for opening Savings Account:       

=ill up !avings (ccount form and !pecimen signature *hotocopy voter $& card attested by account opening officer after verifying original voter $& of (ccount holder. $f s%he is an employee, *hotocopy of 4mployees $& card. $f s%he is a business man, Nisiting >ard, (ddress ,copy of trade 'icense. Two copies of *assport si9e photography of account holder dully attested by the introducer Two copies of *assport si9e photography of nominee dully attested by account holder.

+1

Requirements for opening current Account: =irstly =ill up current account form. =or private limited company, @pdate trade license is a must. $n case of joint holders certificate from joint stock company,. =or *ublic 'imited >ompany >ertificate from joint stock company is a must and other papers mentioned above.

The client will be provided a che"ue book of 2 upto - pages. Bank charge is Tk. -half yearly.

-.* Activities of #as% Section'

$t is an important part of Aeneral Banking &epartment. Here cash of >urrent and !avings accounts receives and also payments are made either in >ash or transfer to respective (ccount but Aovt >halan only receive or transfer to Aovt. account. 3o commission is given to the bank in case of Aovt. >halan as per govt. rules but in case of 4lectricity and asa bills, >ash is received and paid to respective accounts such as &4!>; account for 4lectricity bills and 2D commissions are deducted. Aovt. pri9e bonds are also purchased and sold. $n all types of vouchers, signature of a cashier and an officer is re"uired.

-., Activities of #learing Section'

>learing section is comple/ section of bank. >he"ue of other banks or same bank is received and payments are deposited to !onali Banks >ustomer accounts. hen che"ues are deposited at clearing section and a slip of account details of the account holder is attached with the che"ue, then that che"ues are sent to >learing House in Bangladesh bank for clearance where all banks delegators present there and che"ue of other banks are presented to respective delegators. $f the che"ues are in favor of !onali Banks other branches, then the che"ues are given to other branches delegator.The delegators scan the che"ue8<$>) >he"ue: through computeri9ed scanning system to further verify at their own branches for settlement. (fter one day when they meet again if all information such as che"ue number, !ignature of the account holder and amount payable etc. are correct, then the respective delegators credited the amount to name of account holder of !onali Bank. !ome che"ues may be dishonored under 2 criteria. !ome important of them are Amended +eturn +eason #odes for BA#: Banglades% #learing :ouse0' 1. $nsuficient =und. 2. (mount in figure and word differs. + .post dated% undated che"ue. 0. &rawers signature differs% missing. . ) 8haracter )ecognition: data and $mage miss#matched. 7. >he"ue and advice data mismatch. . >redit limit e/ceeded 1-. >he"ue not activated%intimation not received. 11. (ll clearing seals re"uired are not well completed.


+2

-.- Activities of !ay "rder Section'

$n any type of pay order, (t first vouchers are filled up and amount is deposited in cash section, then pay order is written in the !ection to respective branch account of !onali Bank of respective person .The person who sent *ay ;rder must sign the back part of the *ay ;rder *aper. The payment is instantly made to drawers account.

The commission that the bank get as per Bangladesh bank rule is given below (mount

>ommission

Tk. 1 upto Tk.1---

Tk.2+8Tk.2- commisionPTk.+ N(T:

Tk. 1--1 upto Tk.1--,---

Tk.+8Tk.+- commisionPTk. N(T:

Tk.1--,--1 above

Tk.118Tk.1-- commisionPTk.1 N(T:

$n >ase of &emand &raft8&&: and Telegraphic Transfer8TT:,!ame vouchers are filled up and amounts are received at cash section. $n case of && the bank write && and && paper is provided to the respective customer.&& (dvice is provided against &&.$n case if TT The bank write an entry in the registered book and give a test number to the respective customer to the respective branch account. !ome TT! are maintained >omputeri9ed system where online facilities are available in the respective branch and some are Telephonic !ystem by manager.

The commissions are as follow (mount

>ommission

Tk. 1 upto Tk.+----

Tk.58Tk.+- commisionPTk.+- Telephonic >hargePTk N(T:

Tk. +---1 P(bove

*er thousand costs Tk.1.P1D N(T on >ommission >harge amount

-.; Activities of 7e&osit Section'

!onali bank deposits against many accounts. They are =i/ed &eposit )eceipts8=&):, !onali &eposit (ccount8!&!:, )esidential &eposit !cheme8)&!, 4ducation &eposit !cheme84&!:,

++

A. 5i?ed 7e&osit +ecei&ts 57+0'

The amount of interest at different time interval of the principal amount which are applied from - =eb 2-12 onwards is as follow

3-

Particulars of Fixed Deposit

*resent interest )ate

1

5i?ed 7e&osit Below tk.2 lac 1 month Q 2 months 2 months Q + months + months Q 5 months 5 months Q 1 year 1 year Q 2 years 2 year Q + years Tk.2 lac or more

2

6.--D 6.-D .--D .-D 1-.--D 1-.-D 12.-D

B. Sonali 7e&osit Sc%eme S7S0'

1

2

+

0

!l. no.

 yrs maturity

(mount of *remiu m

 (mount of premium after  yrs Tk.

5

6

1

&o

--

+-,---

*ayable *ayable bonus inter amount est amo Tk. unt Tk. 6,17 1,--

2

&o

1,---

5-,---

10,+67

2,---

65,+76

+

&o

2,---

1,2-,---

27,65

+,---

1,1,65

0

&o

+,---

1,7-,---

0+,1+0

0,---

2,26,1+0



&o

0,---

2,0-,---

6,12

,---

+,-2,12

5

&o

,---

+,--,---

61,71

5,---

+,66,71

6

&o

5,---

+,5-,---

75,25

6,---

0,+,25

7

&o

6,---

0,2-,---

1,--,506

7,---

,27,507



&o

7,---

0,7-,---

1,1,-2

,---

5,-0,-2

1-

&o

,---

,0-,---

1,2,0-0

1-,---

5,6,0-0

11

&o

1-,---

5,--,---

1,0+,672

11,---

6,0,672

Tk.


$nterestP principalP bonus amount at maturity at a time Tk. +7,57

+0

#.Medical 7e&osit Sc%eme M7S0' 1

2

!l. n o .

1

1- yrs
&o

+

0

(mount of *remi um Tk

--

(mount of premiu m after 1- yrs Tk 5-,---



5

*ayable interest amount Tk

+-,57

6

*ayable bonu s amo unt Tk 1,-

$nterestPprinciplePbon us amount at maturity at a time Tk

2,17

2,-

1,7+,+61

+,-

+,5,60+

0,-

,07,11

,-

6,+-,076

5,-

,12,77

6,-

1-,,2+-

7,-

12,66,5-2

,-

10,,60

1-,

15,02,+0

11,

17,20,616

2

&o

1,---

1,2-,---

51,+61

+

&o

2,---

2,0-,---

1,22,60+

--0

&o

+,---

+,5-,---

1,70,11 --



&o

0,---

0,7-,---

2,0,076 --

5

&o

,---

5,--,---

+,-5,77 --

6

&o

5,---

6,2-,---

+,57,2+-

7

&o

6,---

7,0-,---

0,2,5-2

--

&o

7,---

,5-,---

0,-,60 --

1-

&o

,---

1-,7-,---

,2,,+0 ---

11

&o

1-,---

12,-----

5,1+,616 ---

7. +esidential 7e&osit Sc%eme +7S0' 7D interest is paid on taka -- up to tk1-,--deposited at 1- years maturity.

E. Education 7e&osit Sc%eme E7S0' 7D interest is paid on taka -- up to tk1-,--deposited at 1- years maturity.


+

#%a&ter ; Summary of 5indings4 #onclusion and


+5

;.( Summary of 5indings' $ have found out some points by screening the whole study, which is e/pressed as major findings. The findings are given below



(s a commercial bank, !onali Bank still follows the traditional banking. This organi9ation still concentrates on production oriented approach.



There is a training institution and a human resource division of !onali Bank to run the activities of human resources.



$t provides compensation according to the government pay scale



!ometimes inefficient allocations of resources have created a huge amount of Bad debt.



'ack of ade"uate, update, and accurate information from the management information system



There is lack of modern technological advances to provide better service to respective customers.



There is a limitation of trained personnel.



There is limitation of technological support such as available (T< booths at different places.


+6

;.* #onclusion' !onali Bank is the largest bank as well as the largest employer in both the public and private sectors in Bangladesh. The bank is playing an important role in the socio# economic development through the development of industrial sectors by providing all the conventional banking services as well as some speciali9ed financing activities to the economy.

!o in conclusion it can be said that every organi9ation has its positive as well as negative conse"uences and in case of sonali bank e/istence of the later one is less than the earlier one and as the management is determined to reach the pick of success it seems that in near future the negative will be eliminated.


+7

General Banking Activities of Sonali Bank Ltd

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