Role and Function of Sonali Bank

Introduction

History of the Organization

Sonali Bank, the largest & leading commercial bank of the country, came into being in 1972 immediately after the emergence of Bangladesh as an independent state. A fully state-owned enterprise, the bank has been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy. Sonali Bank singularly enjoys the prestige of being the agent of the Central Bank of Bangladesh in such places where the guardian of the money market has chosen not to act by itself.

Sonali Bank is governed by a Board of Directors consisting of 7(seven) members headed by a Chairman, who is a renowned economist and a former Vice Chancellor of a reputed University. The other members are distinguished representatives from both private and public sectors. The Bank is headed by the Managing Director (Chief Executive), who is a well-known Banker and a reputed professional. The head office of the bank along with its corporate structure is located at Motijheel, Dhaka, and the main commercial center of the capital.

Some notable features of the Bank are as follows:


Rank
Country Rank    :   1 (One)Asian Rank        :   282 (Asia week, September 14, 2001)

World Rank       :  925 (The Banker’s Almanac, volume-3, July 1999 )

 

Capital Structure:
Authorized capital   :   US$ 184.30 millionPaid up capital  :  US$ 60.30 million

Reserve capital : US$ 40.18 million

 

Branches and Subsidiaries:
Total branches  ………………………………………………………………1185Branches in Urban areas  ………………………………………………. 490

Branches in Rural areas  ……………………………………………….. 695

Overseas branches ………………………………………………………    2

Subsidiary branches/booths in UK& USA  ……………………………..  11

Representative Office in K.S.A. …………………………………………   1

Correspondents/agents  ………………………………………………… 2000

Employees ………………………. 26,046 (Officer-12,171 and staff- 13,875)

 

Contact Address of the Bank:

 

SONALI BANK
35-44, Motijheel C/A, Dhaka -1000
Tel: 88-02-9550655, 9565364
Fax: 88-02-9561410

 

E-mail Address:
sbhoitd@bttb.net

sbhoid@bdmail.net

sbhorcd@bttb.net.bd

sbhoicd@bttb.net

SWIFT Code:   “BSONBDDH”

 

Corresponding Banking:

 

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9565364

880-2-9561410

sbhoid@bdmail.net

Import Finance:

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9551526

880-2-9561410

sbhoid@bdmail.net

Export Finance:

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9552007

880-2-9561410

sbhoid@bdmail.net

Trade Financing:

Department

Phone

Fax No.

Deputy General Manager

General Advance Division-3

880-2-9550201

880-2-9561410

Rural Banking:

Department

Phone

Fax No.

Deputy General ManagerRural Credit Division – 2

880-2-9550483

880-2-9561410

Home-bound Remittance:
AddressPhone
Deputy General ManagerInternational Division-2
Sonali Bank,Head Office
Dhaka, Bangladesh
880-2-9552007
Deputy General ManagerWage Earners Corporate Branch, Dilkusha C/A, Dhaka – 1000, Bangladesh880-2-9552080
Industrial Financing:
Industrial Credit Division – 1

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9551011

880-2-9561410

sbhoicd@bdmail.net

Industrial Credit Division – 2

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9568562

880-2-9561410

sbhoicd@bdmail.net

Objectives Of The Organization

The main objective of the organization is to provide all types of banking services at the door of the people of the nation. The bank also participates in various social and development programs and implements policies and commitments to the Government.

ROLE & FUNCTIONS Of SONALI BANK

In our country’s economic acts Sonali bank is considered as a most important bank. Sonali bank is doing so many things for our country. Commercial as well as all types of work is done by the Sonali bank for the general people as own. So based on proceeding nature, it is not possible to divide this bank perfectly. Even so for the convenient of the

analysis this bank is divided into four parts.

General Banking

Personal Banking , Taking Deposit & Giving Interest


The main function of the Sonali bank is to collect money from the general people, various  institutes or organizations as deposit and give them interest on that money by various accounts. This bank collects current, saving and permanent accounts deposit. But they give more interest on saving account than the current account. This bank generally doesn’t pay any interest on the current account.Sonali Bank extends all the major personal banking facilities and services to its customers with its skilled manpower and largest network of around 1300 branches covering all the urban and remote rural areas of Bangladesh.

Deposit Schemes:

Name of Scheme

Interest Rates( Floating )

Current Deposit

Nil

Savings Deposit

3.50%

Short Term Deposit

2.00%

Fixed Deposit :

      3 Months maturity

6 Months maturity

12 Months maturity

24 Months maturity

36 Months maturity

        ( Maximum 5 years )

5.25%

5.50%

6.00%

6.25%

6.25%

Sonali Bank has been providing prompt and best customer services through its 114 computerized branches all over the country.An extensive computerization program is in action to cater to the competitive growing demand of the time.  165 more branches is planned to be computerized by 2005.

Personal Services :


Sonali Bank provides Local & Foreign Remittance in quickest possible time. Foreign remittance is available in both T.C. & Taka draft.

 Transfer of fund from one branch to another by

Demand Draft
Mail Transfer
Telegraphic Transfer

Grant Loan & Collecting Interest


Sonali bank gives the deposited money of the general people to various people, institute and traders based on their need by a fixed interest rate and they also take interest from them. They take a fixed security amount against the loan. This bank takes more interest on loan than the interest which is given to the general people on their deposited money.

Creation Medium Of Exchange


As a big commercial bank in the Bangladesh, they make a convenient and feeless transition by offering cheque and bank-draft etc.   That is why customers can finish their exchange very easily.

Honor Of Cheque


Whenever the depositors want the money according to their cheque, the bank is bound to pay the money to the customer. It is also their important work.Creation Of Loan Deposit


This bank not only gives the loan but also do so many transitions. They make various loans by the deposit and increase the utility.

Taking & Giving Money


Sonali bank collects bill, money laundering, cheque, and bond paper etc money and various types of dues from the customers.

Money Transfer


Sonali bank helps the customers to transfer their money from one place to another place by the money laundering, mail transfer and telegraphic transfer.

Acceptance Of Bill Of Exchange


This bank is given power from the customer to give the exchange bill.

Buying & Selling Securities


Sonali bank buy-sell share, security, bond, loan paper under the interest.

Role As A Trustee


Some times this bank does as a trustee of the customer wealth.

Representative Of Bangladesh Bank


The area where there is not any branch of Bangladesh Bank there Sonali bank does their work as a representative of Bangladesh Bank.

International Banking

Sonali Bank’s expertise in International Banking has a record of in-house growth over more than half a century. Its pioneer role in handling foreign trade and foreign exchange transactions ever before independence of the country still remains unchallenged. With wide network of branches at home and also a large number of correspondent banks world-wide it is singularly handling the largest volume of export-import business including home-bound remittances.

Sonali Bank’s pioneer and extensive role in international banking has enabled it to broaden and deepen its base of qualified professionals for extending expert service to the valued clients.

Products & Services :

      Export Credit (Pre-shipment & Post shipment).

Facilitating Supplier’s Credit.

LCs (Letters of Credit)

Guarantees in Foreign Currency
– Bid Bond
– Performance Guarantee
– Advance Payment Guarantee

Bill Purchasing/Discounting

Remittance, collection, purchases & sales of Foreign Currency & Traveler’s Cheques.

NRAT (Non-Resident Account in Taka)

NFCD A/c (Non-Resident Foreign Currency Deposit)

RFCD A/c (Resident Foreign Currency Deposit)

Convertible and Non-convertible Taka Account

Forward contracts.

Correspondent Banking Relations.


The products and services are provided through a well-established large network of authorized branches all over the country.

Corresponding Banking :


Correspondent banking encompasses the following:

      Strengthening existing and establishing new correspondent relationship with foreign banks and Financial Institutions world over

Attending to problems of the correspondent banks

Helping correspondents in marketing and distributing their products

  • At present the bank is maintaining relationship with about 2000 foreign correspondents
  • Currently the bank has 71 (Seventy one) NOSTRO A/Cs with large foreign banks abroad.
  • The bank maintains 13 (Thirteen) VOSTRO A/Cs of foreign banks.
  • The bank is a SWIFT (Society for World wide Inter-bank Financial Telecommunication) subscriber and its user code is ‘BSONBDDH.”.

Import Finance :


Sonali Bank supports its customers by providing facilities throughout the import process to ensure smooth running of their business. The facilities are:-

      Import Letter of Credit.

Post Import Financing (LIM, LTR etc).

Import collection services & Shipping Guarantees.

Export Finance :


Sonali Bank offers extra cover to its customers for whole export process to speed up receipt of proceeds.The facilities are:-

      Export Letters of Credit advising

. Pre-shipment Export Financing

Export documents negotiation

Letter of Credit confirmation

Guarantee in Foreign Curency :


Sonali bank issues guarantee (Bid Bond/Performance Bond/Advance Payment Guarantee) at the request of Bangladeshi exporter through our foreign Correspondent Banks.

Guarantees (Bid Bond/Performance Bond/Advance Payment Guarantee) against Counter Guarantee of foreign correspondent banks in favour of Bangladeshi beneficiaries are also issued.

The Government has declared a number of facilities in the Export-Import Policy which, in brief, are as follows:-

      Financial incentives

General incentives

Infrastructure facilities, specially in Export Processing Zone

Concessional rate of cargo fair

Special facilities to sub-contracting export

Higher annual ceiling for sending specimen of exportable goods.

Facilities for import of specimen for product development

Multiple entry visas for foreign importers and investors.            

Facilities for attending to market development and international fair

Awarding national trophy and nominating CIP

Deemed export facilities

Allowing export/import without LC in special cases

Liberal terms for import of industrial raw materials of export oriented industries and Incentive for using local raw materials

Home Bound Remittance

More than 40% of home bound remittances are routed through Sonali Bank for its excellent personalized services and wide network of foreign inlets and domestic outlets. Remittance can be sent to all the 1294 local branches of the Bank spreading over the urban and remote rural areas of Bangladesh. To facilitate home bound remittance the Bank has two subsidiary companies, one in the USA and another in the UK. Besides, it has one representative office in Saudi Arabia and 23 agency offices in other Middle Eastern Countries.

Sonali Bank has made arrangements to deposit/pay remitted money to the beneficiaries within 48 hours on receipt of the remittance from abroad.

Facilities For Wage Earners


      Bangladeshi national/Bangladesh origin dual citizen working abroad may open Foreign Currency account (F.C. A/C) in US Dollar and Pound Sterling without initial deposit

Nominee can operate the account

Balance in F.C. A/C can be utilized for import of goods

Balance available in the F.C. account may wholly or partially be sent abroad

Foreign currency brought in by Wage Earners can be deposited in the F.C. A/C.

Wage Earners Development Bond in Taka can be purchased from the balance of F.C. A/C

Non-Resident Foreign Currency A/C ( NFCD A/C) can also be opened by Wage Earners

F.C. A/C & NFCD A/C may be maintained as long as the account holder desires

 

These accounts can be opened from abroad on submission of required papers duly attested by our Embassy / Branch / Representative office abroad.

 

 Opening of NFCDA Account :


 An NFCD account can be opened without any initial deposit. The account opening form along with copy of passport, two photographs of the applicant duly attested and verifying his signature in the account opening form by designated official of any of the following offices be sent to the concerned designated (Wage Earners) branch:

      Bangladesh Embassy/Consulate Office

Sonali Bank branch/ SECI in the USA / Sonali Bank (UK) Ltd. in the UK / Representative office in Saudi Arabia.

For details please contact with your nearest Bangladesh Embassy/Consulate Office/SECI in the USA/Sonali Bank (UK) Ltd. in the UK.

Application Form Of Opening NFCDA Account :


The Dy. General Manager

Sonali Bank

Wage Earners’ Corporate Branch

Dhaka.

Dear Sir,

SUB:   REQUEST FOR OPENING OF NFCD ACCOUNT IN THE NAME OF JOINT

NAME OF _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ FOR £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ FOR A PERIOD OF_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I would request you to please arrange to open a Non-Resident Foreign Currency Deposit

Account with you in the above noted name for £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ for a period of  _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   by debit to my FCAD / FCAP _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _____maintained with your Branch.

Thanking you,

Yours faithfully

SIGNATURE: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

NAME _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS   _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Received a complete set of NFCD A/C opening forms for £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ from Mr./Mrs. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _

P. DEPUTY GENERAL MANAGER

Procedures for sending remittance from USA through Sonali Exchange Co. Inc.(SECI)

The remitter will simply fill in prescribed form for the remittance and will deposit the remittable amount of money along with requisite charges at his nearest SECI office in the USA. The deposit of fund can also be made by cheques through post.

The remitter may purchase TAKA/ U.S.Dollar Drafts from SECI office at Manhattan, Astoria, Brooklyn and Jackson Heights in New York and at Atlanta and Los Angeles drawn on designated branches of Sonali Bank in Bangladesh. Alternatively at the remitter’s option, SECI will transmit payment instruction on the same day to its Dhaka office who will dispose of the remittance in Bangladesh quickly through the nationwide network of Sonali Bank and other Commercial Banks of Bangladesh.

SECI has the privilege of providing quick services to Bangladeshi Expatriates with its computerized system in the USA with direct link with Dhaka.

SECI assures safe and quick payment of remittances to the beneficiaries in Bangladesh.

Remittance from UK through Sonali Bank (UK) Ltd

The remitter will simply fill in prescribed form for the remittance and will deposit the remitable amount together with charges at his nearest Sonali Bank (UK) Ltd. office in the UK. The deposit of fund can also be made by cheques through post.

Sonali Bank (UK) Ltd. offices in London, Birmingham, Luton, Manchester and Bradford route remittances through Wage Earners’ Corporate Branch, Dhaka, Wage Earners’ Corporate Branch, Chittagonge, Dargagate Branch, Sylhet and Foreign Exchange Branch, Moulvi Bazar. With nationwide network of Sonali Bank branches remittance are quickly disposed of.

To help increase foreign remittances, Sonali Bank has established Taka drawing arrangements with 23 (Twenty Three) Banks / Exchange Companies. Taka drawing arrangements with 6(Six) more Exchange Companies are under process.

Efforts are being made to establish Taka drawing arrangements with many more Exchange Companies all over the world.

COUNTRY WISE LIST OF THE EXCHANGE COMPANIES

Bahrain
BAHRAIN FINANCING COMPANY

P.O. BOX NO.243, MANAMA, BAHRAIN TELEX NO-8416 BFC BN, FAX NO- (973) 223495

ZENJ EXCHANGE CO.

P.O. BOX NO.236, MANAMA BAHRAIN TELEX NO.8478 ABUL BN, FAX NO.(0973) 214405

 

KSA
AL-RAJHI COMMERCIAL FOREIGN EXCHANGE

P.O. BOX NO.4514, JEDDHA, K.S.A. TELEX NO-606250/2 ARAJ SJ, FAX NO-6716419/6723220

AL-RAJHI BANKING & INVESTMENT CORPORATION

P.O. BOX NO-28, RIYADH-11411, K.S.A. TELEX NO-(04795)403539 RAJHI SJ /406317 RAJHI SJ/401464 RAJHI SJ, FAX NO-_9661) 4601519/4600922

BANK AL-JAZIRA

KHALED BIN AL-WALEED STREET, P.O.BOX NO.6277, JEDDAH-21442, K.S.A. TELEX NO.601574 HJAZ SJ /601574/1 HJAZ SJ, FAX NO.6532478

Kuwait
KUWAIT BAHRAIN INTERNATIONAL EXCHANGE CO.

P.O. BOX NO.26926, SAFAT-13130, KUWAIT. TELEX NO.23661 KT, FAX NO.2431000

AL-MUZAINI EXCHANGE CO.

P.O. BOX NO-2156, SAFAT-13022, KUWAIT TELEX NO-22129 AL MUZAIZI / 22432 AL MUZEX, FAX NO-(00965) 241817 OR 2451800

 

BAHRAIN EXCHANGE COMPANY

P.O. BOX NO.29149, SAFAT-13152, KUWAIT TELEX NO.31136 BAEXCO KT, FAX NO.(965) 2401859

DOLLARCO EXCHANGE CO. LTD.

P.O. BOX NO.26270, SAFAT 13123, KUWAIT TELEX NO.44741/30226 DOLFEX KT, FAX NO.00965 2412788

NATIONAL MONEY EXCHANGE CO.

P.O. BOX NO.22424, SAFAT-13085, KUWAIT TELEX NO.30449 KT, FAX NO.2462682

OMAN EXCHANGE COMPANY LTD.

P.O. BOX NO.26057 SAFAT, KUWAIT TELEX NO.OMEXCO 44344/ OMEXCO 44848 KT, FAX NO.2426703

THE CITY INTERNATIONAL EXCHANGE CO.

P.O. BOX NO.21804, SAFAT-13079, KUWAIT TELEX NO.44167 CITEX KT, FAX NO.(964)240731

Malaysia
MAY BANK

100, JALAN TUN PERAK, 50050, KUALA LUMPUR, MALAYSIA TELEX NO. MA 32837, FAX NO.03-2302611

Oman
OMAN BANGLADESH EXCHANGE COMPANY

P.O. BOX NO.994, POSTAL CODE NO.114, MUSCAT SULTANATE OF OMAN TELEX NO.3291 OBEC ON, FAX NO.7735141

GULF OVERSEAS EXCHANGE CO.

P.O. BOX NO.3931, RUWI-112 SULTANATE OF OMAN TELEX NO.3643 GOECOMAN ON, FAX NO.454232 / 7730202

BANK MUSCAT

SULTANATE OF OMAN, FAX NO.(968) 705506

NATIONAL BANK OF OMAN

P.O. BOX NO.751, RUWI-112 SULTANATE OF OMAN, TELEX NO.3281 NBO ON FAX NO.707781

Qatar
EASTERN EXCHANGE ESTABLISHMENT

P.O. BOX NO.454, DOHA, QATAR. TELEX NO.4774 EBFO DH, FAX NO.(0974) 4431314

UAE
THOMAS COOK AL ROSTAMANI EXCHANGE COMPANY

P.O. BOX NO.10072, DUBAI, U.A.E. TELEX NO.47482 T COOK EM, FAX NO.(04) 2286822

MASHREQ BANK

PO. BOX LNO.10955, ABU DHABI U.A.E. TELEX NO.45674/45429 MSHQCM EM, FAX NO.02-5122115

U.A.E. EXCHANGE CHNTRE

P.O. BOX NO.170, ABU DHABI U.A.E. TELEX NO.24130 EXCENT EM, FAX NO.211447 / 312030

HABIB & AL-MANSOOR EXCHANGE CO.

P.O. BOX NO.2370, ABU DHABI, U.A.E. TELEX NO.24358 HALMEX EM, FAX NO.00971-2-6225810 00971-2-6221547

WALL STREET EXCHANGE CENTRE

P.O. BOX NO.3014, NAIF ROAD DEIRA, DUBAI U.A.E. TELEX NO.48313 PIJET EM, FAX NO.267420 / 252673, 2286533/2252673

 

The Corporate and District Head Quarters branches are authorized to make payment of Taka draft directly. Taka draft may also be paid by collection through other branches of Sonali Bank.

Government of the People’s Republic of Bangladesh has decided to issue the US Dollar Investment Bond with effect from 1st November 2002.

Eligibility of the Purchaser:

The Bond may be issued in the name of a holder of a non-resident account against remittances from abroad to the account.

Issuing Branches :

      Sonali Bank Wage Earner’s Corpt. Branch,Dhaka

      Sonali Bank Dhaka Cantt.Corpt. Branch, Dhaka

      Sonali Bank Wage Earner’s Branch,Ctg.

      Sonali Bank Khulna Corpt. Branch, Khulna

      Sonali Bank Dargagate Corpt. Branch, Sylhet

      Sonali Bank Foreign Exchange Branch, Moulovibazar

Salient Features of the Bond :

Maturity Period: 03 Years.
Interest Rate: 6.5 % (Fixed) Per Annum.

Interest may be drawn on half yearly basis.

Principal & Interest will be payable in US Dollar.

Principal & Interest may also be paid in Bangladesh Currency on option.
The Principal & Interest shall be free from income-tax.
On maturity principal amount may be re-invested or repatriated abroad in Foreign Currency.

Denomination of Bonds :

US $ 500 · US $ 1000 · US $ 5000 · US $ 10,000 · US $ 50,000

Limit :

A purchaser can purchase Bond for minimum of US $ 500 and any amount in multiples of US $ 500 without any maximum limit.

Premature Encashment :

The Bond may be encashed before maturity at following rate of interest:

Encashment

Interest payable

Within one year from the date of issue.

No interest

After completion of one year but within two years

5.5%

After completion of two years but within three years.

6.0%

After completion of 3 years.

6.5%

Nominee :

The Purchaser shall appoint a nominee to receive the value of the Bond & Interest payable thereon in the event of death of the holder.

Additional Benefit :

A purchaser having purchased Bond/Bonds totaling US $ 1,000,000 (One million) or above will be treated as C.I.P

Replacement :

In case a Bond is lost, stolen, destroyed, damaged or defaced there is provision
for issuance of duplicate Bond.

Government of the People’s Republic of Bangladesh has decided to issue the US Dollar Premium Bond with effect from 1st November 2002.

Eligibility of the Purchaser:

The Bond may be issued in the name of a holder of a non-resident account against remittances from abroad to the account.

Issuing Branches :

  •       Sonali Bank Wage Earner’s Corpt. Branch,Dhaka
  •       Sonali Bank Dhaka Cantt.Corpt. Branch, Dhaka
  •       Sonali Bank Wage Earner’s Branch,Ctg.
  •       Sonali Bank Khulna Corpt. Branch, Khulna
  •       Sonali Bank Dargagate Corpt. Branch, Sylhet
  •       Sonali Bank Foreign Exchange Branch, Moulovibazar

Salient Features of the Bond :

Maturity Period: 03 Years.
Interest Rate: 7.5 % (Fixed) Per Annum.
Interest may be drawn on half yearly basis.
Principal will be payable in US Dollar.
Interest will be paid in Bangladesh Taka.
Principal may also be paid in Bangladesh Taka on option.
Principal  & Interest shall be free from income-tax.
On maturity principal amount may be re-invested or repatriated abroad in Foreign Currency.

Denomination of Bonds :

US $ 500 · US $ 1000 · US $ 5000 · US $ 10,000 · US $ 50,000

Limit :

A purchaser can purchase Bond for minimum of US $ 500 and any amount in multiples of US $ 500 without any maximum limit.

Premature Encashment :

The Bond may be encashed before maturity at following rate of interest :

Encashment

Interest payable

Within one year from the date of issue

No interest.

After completion of one year but within two years

7.5%

After completion of two years but within three years

7.0%

After completion of 3 years

7.5%

Nominee :

The Purchaser shall appoint a nominee to receive the value of the Bond, interest payable thereon and also the death risk benefit, if any, in the event of death of the holder.

Additional Benefit :

      A purchaser purchasing Bond(s) for at least US $ 10,000 at the first instance and increases the investment by subsequent addition will qualify for a free death-risk-benefit of maximum Tk 20, 00,000 in the event of his death on fulfillment of some terms & conditions.

      The purchaser having purchased Bond(s) totalling US $ 1,000,000 (One million) or above will be treated as C.I.P.

Replacement :

In case a Bond is lost, stolen, destroyed, damaged or defaced there is provision for issuance of duplicate Bond.

Non – Resident Investor’s Taka Account (NITA)


Non-resident Investor’s Taka Account-(NITA) can be opened with any Authorized Dealer branch by foreign currencies earned abroad for investment in the shares and securities in the capital market of Bangladesh.

      Shares and securities can be bought by funds in the NITA. Dividends earned on and sale proceeds of shares and securities can be credited to NITA.

      Total balance held in NITA can be repatriated abroad in foreign currency at the ruling rate at any time.

      Dividends earned or capital gains on investment are tax-free.

      NITA can be operated by nominee in Bangladesh and the Bank itself with which the account is maintained may act as the nominee.

Interest Rates for Wage Earners :::                                               


Interest rates (P.A)
( Floating)

Wage Earners Development Bond issued for 5 years

12%

Non-Resident Foreign Currency Deposit (NFCD) A/C

Nature of Customer

Currency

Period(Month)

1

Private Individual

USD

1 Month

1.17%

3 Months

1.35%

6 Months

1.64%

12 Months

2.05%

2

Private Individual

GBP

1 Month

4.37%

3 Months

4.58%

6 Months

4.76%

12 Months

5%

3

All Foreign Banks/ Exchange Houses & Financial Institutions

USD

1 Month

1.22%

3 Months

1.43%

6 Months

1.69%

12 Months

2.13%

4

All Foreign Banks/ Exchange Houses & Financial Institutions

GBP

1 Month

4.42%

3 Months

4.63%

6 Months

4.81%

12 Months

5.05%

Resident Foreign Currency Deposit (RFCD) A/C (USD)

.70%

Resident Foreign Currency Deposit (RFCD) A/C (GBP)

3.69%

Foreign Currency Account Dollar (FCAD)

1.12%

Foreign Currency Account Pound (FCAP)

4.32%

Trade Financing

Credit Packages


Sonali Bank extends multiple credit facilities to boost up trade, commerce and industry. The credit packages and interest rates are as under:

Credit Packages

Interest Rates
(Floating)

1

Credit to Trade and Commerce

12%

2

Working capital to Industries.

11%

3

Credit for Power Driven Vechicle/Water Transport.

12%

4

Overdraft against:

 

Fixed deposits

10%

 

DPS/SDPS Accounts

10%

 

National Savings Certificates

10%

 

ICB Certificates

12%

 

Life Insurance Policy

12%

 

Wage Earners’ Development Bonds

10%

 

Shares and Debentures of Public Limited Cos.

12%

 

Work Order of Govt./Semi-Govt./Corporations

12%

5

Housing Loans

12%

6

Small Loans

10% — 10.50%

7

Packing Cash Credit.

7% –8.50

8

Consumers credit

12%

9

Working Capital to Diagnostic Centers

11%

10

Loans to Public Sector Enterprises.

12%

11

Cash credit facilities for Small Business enterprises

12%

12

Agricultural loan under various program/project

9%

Industrial Banking

Credit Schemes


Long term loan for setting up new industrial units and BMRE of existing units including working capital finance are extended by Sonali Bank to cottage industries, small-medium-large scale industries and also to self-employed persons with a view to creating employment opportunities, deployment of resources, increasing GDP and over-all industrial development of the country. Currently the following credit schemes are on offer by the bank:

Some of the main Credit Schemes :

      Industrial Financing for Thrust Sectors

Sonali Bank Industrial Credit Scheme

Special Investment Scheme for Cottage and Small Industries

Financing Large Scale Industries through Banks’ Consortium.

Financing Software Development and Data Processing

About 100 branches including all the corporate and district headquarters branches are designated to handle industrial credit.

Introduction

(A) History of the Organization

Sonali Bank, the largest & leading commercial bank of the country, came into being in 1972 immediately after the emergence of Bangladesh as an independent state. A fully state-owned enterprise, the bank has been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy. Sonali Bank singularly enjoys the prestige of being the agent of the Central Bank of Bangladesh in such places where the guardian of the money market has chosen not to act by itself.

Sonali Bank is governed by a Board of Directors consisting of 7(seven) members headed by a Chairman, who is a renowned economist and a former Vice Chancellor of a reputed University. The other members are distinguished representatives from both private and public sectors. The Bank is headed by the Managing Director (Chief Executive), who is a well-known Banker and a reputed professional. The head office of the bank along with its corporate structure is located at Motijheel, Dhaka, and the main commercial center of the capital.

Some notable features of the Bank are as follows:


 

Rank
Country Rank    :   1 (One)

Asian Rank        :   282 (Asia week, September 14, 2001)

World Rank       :  925 (The Banker’s Almanac, volume-3, July 1999 )

 

Capital Structure:
Authorized capital   :   US$ 184.30 million

Paid up capital  :  US$ 60.30 million

Reserve capital : US$ 40.18 million

 

Branches and Subsidiaries:
Total branches  …………………………………………………………1185

Branches in Urban areas  ………………………………………………. 490

Branches in Rural areas  ……………………………………………….. 695

Overseas branches ………………………………………………………    2

Subsidiary branches/booths in UK& USA  ……………………………..  11

Representative Office in K.S.A. …………………………………………   1

Correspondents/agents  ………………………………………………… 2000

Employees ………………………. 26,046 (Officer-12,171 and staff- 13,875)

 

 

 

Contact Address of the Bank:

 

SONALI BANK
35-44, Motijheel C/A, Dhaka -1000
Tel: 88-02-9550655, 9565364
Fax: 88-02-9561410

 

E-mail Address:
sbhoitd@bttb.net

sbhoid@bdmail.net

sbhorcd@bttb.net.bd

sbhoicd@bttb.net

 

SWIFT Code:   “BSONBDDH”

 

Corresponding Banking:

 

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9565364

880-2-9561410

sbhoid@bdmail.net

Import Finance:

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9551526

880-2-9561410

sbhoid@bdmail.net

Export Finance:

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9552007

880-2-9561410

sbhoid@bdmail.net

Trade Financing:

Department

Phone

Fax No.

Deputy General Manager

General Advance Division-3

880-2-9550201

880-2-9561410

Rural Banking:

Department

Phone

Fax No.

Deputy General ManagerRural Credit Division – 2

880-2-9550483

880-2-9561410

Home-bound Remittance:
AddressPhone
Deputy General ManagerInternational Division-2
Sonali Bank,Head Office
Dhaka, Bangladesh
880-2-9552007
Deputy General ManagerWage Earners Corporate Branch, Dilkusha C/A, Dhaka – 1000, Bangladesh880-2-9552080
Industrial Financing:
Industrial Credit Division – 1

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9551011

880-2-9561410

sbhoicd@bdmail.net

Industrial Credit Division – 2

Phone

Fax No.

E-mail

Deputy General Manager

880-2-9568562

880-2-9561410

sbhoicd@bdmail.net

(B) Objectives Of The Organization

The main objective of the organization is to provide all types of banking services at the

door of the people of the nation. The bank also participates in various social and

development programs and implements policies and commitments to the Government.

ROLE & FUNCTIONS Of SONALI BANK

In our country’s economic acts Sonali bank is considered as a most important bank. Sonali bank is doing so many things for our country. Commercial as well as all types of work is done by the Sonali bank for the general people as own. So based on proceeding nature, it is not possible to divide this bank perfectly. Even so for the convenient of the

analysis this bank is divided into four parts.

General Banking

Personal Banking , Taking Deposit & Giving Interest


The main function of the Sonali bank is to collect money from the general people, various

 institutes or organizations as deposit and give them interest on that money by various accounts. This bank collects current, saving and permanent accounts deposit. But they give more interest on saving account than the current account. This bank generally doesn’t pay any interest on the current account.

Sonali Bank extends all the major personal banking facilities and services to its

customers with its skilled manpower and largest network of around 1300 branches

covering all the urban and remote rural areas of Bangladesh.

 

Deposit Schemes:

 

 

 

 

Name of Scheme

Interest Rates( Floating )

Current Deposit

Nil

Savings Deposit

3.50%

Short Term Deposit

2.00%

Fixed Deposit :

      3 Months maturity

6 Months maturity

12 Months maturity

24 Months maturity

36 Months maturity

        ( Maximum 5 years )

5.25%

5.50%

6.00%

6.25%

6.25%


 

      Sonali Bank has been providing prompt and best customer services through its 114 computerized branches all over the country.

      An extensive computerization program is in action to cater to the competitive growing demand of the time.

      165 more branches is planned to be computerized by 2005.

      Personal Services :


 

Sonali Bank provides Local & Foreign Remittance in quickest possible time. Foreign

remittance is available in both T.C. & Taka draft.

      Transfer of fund from one branch to another by

Demand Draft
Mail Transfer
Telegraphic Transfer

Grant Loan & Collecting Interest


Sonali bank gives the deposited money of the general people to various people, institute

and traders based on their need by a fixed interest rate and they also take interest from

them. They take a fixed security amount against the loan. This bank takes more interest

on loan than the interest which is given to the general people on their deposited money.

Creation Medium Of Exchange


As a big commercial bank in the Bangladesh, they make a convenient and feeless transition by offering cheque and bank-draft etc.   That is why customers can finish their exchange very easily.

Honor Of Cheque


Whenever the depositors want the money according to their cheque, the bank is bound to pay the money to the customer. It is also their important work.

Creation Of Loan Deposit


This bank not only gives the loan but also do so many transitions. They make various loans by the deposit and increase the utility.

Taking & Giving Money


Sonali bank collects bill, money laundering, cheque, and bond paper etc money and various types of dues from the customers.

Money Transfer


Sonali bank helps the customers to transfer their money from one place to another place by the money laundering, mail transfer and telegraphic transfer.

Acceptance Of Bill Of Exchange


This bank is given power from the customer to give the exchange bill.

Buying & Selling Securities


Sonali bank buy-sell share, security, bond, loan paper under the interest.

Role As A Trustee


Some times this bank does as a trustee of the customer wealth.

Representative Of Bangladesh Bank


The area where there is not any branch of Bangladesh Bank there Sonali bank does their work as a representative of Bangladesh Bank.

International Banking

Sonali Bank’s expertise in International Banking has a record of in-house growth over more than half a century. Its pioneer role in handling foreign trade and foreign exchange transactions ever before independence of the country still remains unchallenged. With wide network of branches at home and also a large number of correspondent banks world-wide it is singularly handling the largest volume of export-import business including home-bound remittances.

Sonali Bank’s pioneer and extensive role in international banking has enabled it to broaden and deepen its base of qualified professionals for extending expert service to the valued clients.

Products & Services :

      Export Credit (Pre-shipment & Post shipment).

Facilitating Supplier’s Credit.

LCs (Letters of Credit)

Guarantees in Foreign Currency
– Bid Bond
– Performance Guarantee
– Advance Payment Guarantee

Bill Purchasing/Discounting

Remittance, collection, purchases & sales of Foreign Currency & Traveler’s Cheques.

NRAT (Non-Resident Account in Taka)

NFCD A/c (Non-Resident Foreign Currency Deposit)

RFCD A/c (Resident Foreign Currency Deposit)

Convertible and Non-convertible Taka Account

Forward contracts.

Correspondent Banking Relations.


The products and services are provided through a well-established large network of authorized branches all over the country.

Corresponding Banking :


Correspondent banking encompasses the following:

      Strengthening existing and establishing new correspondent relationship with foreign banks and Financial Institutions world over

Attending to problems of the correspondent banks

Helping correspondents in marketing and distributing their products

  • At present the bank is maintaining relationship with about 2000 foreign correspondents
  • Currently the bank has 71 (Seventy one) NOSTRO A/Cs with large foreign banks abroad.
  • The bank maintains 13 (Thirteen) VOSTRO A/Cs of foreign banks.
  • The bank is a SWIFT (Society for World wide Inter-bank Financial Telecommunication) subscriber and its user code is ‘BSONBDDH.”.

Import Finance :


Sonali Bank supports its customers by providing facilities throughout the import process to ensure smooth running of their business. The facilities are:-

      Import Letter of Credit.

Post Import Financing (LIM, LTR etc).

Import collection services & Shipping Guarantees.

Export Finance :


Sonali Bank offers extra cover to its customers for whole export process to speed up receipt of proceeds.The facilities are:-

      Export Letters of Credit advising

. Pre-shipment Export Financing

Export documents negotiation

Letter of Credit confirmation

Guarantee in Foreign Curency :


Sonali bank issues guarantee (Bid Bond/Performance Bond/Advance Payment Guarantee) at the request of Bangladeshi exporter through our foreign Correspondent Banks.

Guarantees (Bid Bond/Performance Bond/Advance Payment Guarantee) against Counter Guarantee of foreign correspondent banks in favour of Bangladeshi beneficiaries are also issued.

The Government has declared a number of facilities in the Export-Import Policy which, in brief, are as follows:-

      Financial incentives

General incentives

Infrastructure facilities, specially in Export Processing Zone

Concessional rate of cargo fair

Special facilities to sub-contracting export

Higher annual ceiling for sending specimen of exportable goods.

Facilities for import of specimen for product development

Multiple entry visas for foreign importers and investors.            

Facilities for attending to market development and international fair

Awarding national trophy and nominating CIP

Deemed export facilities

Allowing export/import without LC in special cases

Liberal terms for import of industrial raw materials of export oriented industries and Incentive for using local raw materials

Home Bound Remittance

More than 40% of home bound remittances are routed through Sonali Bank for its excellent personalized services and wide network of foreign inlets and domestic outlets. Remittance can be sent to all the 1294 local branches of the Bank spreading over the urban and remote rural areas of Bangladesh. To facilitate home bound remittance the Bank has two subsidiary companies, one in the USA and another in the UK. Besides, it has one representative office in Saudi Arabia and 23 agency offices in other Middle Eastern Countries.

Sonali Bank has made arrangements to deposit/pay remitted money to the beneficiaries within 48 hours on receipt of the remittance from abroad.

Facilities For Wage Earners


      Bangladeshi national/Bangladesh origin dual citizen working abroad may open Foreign Currency account (F.C. A/C) in US Dollar and Pound Sterling without initial deposit

Nominee can operate the account

Balance in F.C. A/C can be utilized for import of goods

Balance available in the F.C. account may wholly or partially be sent abroad

Foreign currency brought in by Wage Earners can be deposited in the F.C. A/C.

Wage Earners Development Bond in Taka can be purchased from the balance of F.C. A/C

Non-Resident Foreign Currency A/C ( NFCD A/C) can also be opened by Wage Earners

F.C. A/C & NFCD A/C may be maintained as long as the account holder desires

 

These accounts can be opened from abroad on submission of required papers duly attested by our Embassy / Branch / Representative office abroad.

 

Opening of NFCDA Account :


An NFCD account can be opened without any initial deposit. The account opening form along with copy of passport, two photographs of the applicant duly attested and verifying his signature in the account opening form by designated official of any of the following offices be sent to the concerned designated (Wage Earners) branch:

      Bangladesh Embassy/Consulate Office

Sonali Bank branch/ SECI in the USA / Sonali Bank (UK) Ltd. in the UK / Representative office in Saudi Arabia.

For details please contact with your nearest Bangladesh Embassy/Consulate Office/SECI in the USA/Sonali Bank (UK) Ltd. in the UK.

Application Form Of Opening NFCDA Account :


The Dy. General Manager

Sonali Bank

Wage Earners’ Corporate Branch

Dhaka.

Dear Sir,

SUB:   REQUEST FOR OPENING OF NFCD ACCOUNT IN THE NAME OF JOINT

NAME OF _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ FOR £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ FOR A PERIOD OF_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I would request you to please arrange to open a Non-Resident Foreign Currency Deposit

Account with you in the above noted name for £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ for a period of  _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   by debit to my FCAD / FCAP _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _____maintained with your Branch.

Thanking you,

Yours faithfully

SIGNATURE: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

NAME _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS   _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Received a complete set of NFCD A/C opening forms for £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ from Mr./Mrs. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _

P. DEPUTY GENERAL MANAGER

Procedures for sending remittance from USA through Sonali Exchange Co. Inc.(SECI)

The remitter will simply fill in prescribed form for the remittance and will deposit the remittable amount of money along with requisite charges at his nearest SECI office in the USA. The deposit of fund can also be made by cheques through post.

The remitter may purchase TAKA/ U.S.Dollar Drafts from SECI office at Manhattan, Astoria, Brooklyn and Jackson Heights in New York and at Atlanta and Los Angeles drawn on designated branches of Sonali Bank in Bangladesh. Alternatively at the remitter’s option, SECI will transmit payment instruction on the same day to its Dhaka office who will dispose of the remittance in Bangladesh quickly through the nationwide network of Sonali Bank and other Commercial Banks of Bangladesh.

SECI has the privilege of providing quick services to Bangladeshi Expatriates with its computerized system in the USA with direct link with Dhaka.

SECI assures safe and quick payment of remittances to the beneficiaries in Bangladesh.

Remittance from UK through Sonali Bank (UK) Ltd

The remitter will simply fill in prescribed form for the remittance and will deposit the remitable amount together with charges at his nearest Sonali Bank (UK) Ltd. office in the UK. The deposit of fund can also be made by cheques through post.

Sonali Bank (UK) Ltd. offices in London, Birmingham, Luton, Manchester and Bradford route remittances through Wage Earners’ Corporate Branch, Dhaka, Wage Earners’ Corporate Branch, Chittagonge, Dargagate Branch, Sylhet and Foreign Exchange Branch, Moulvi Bazar. With nationwide network of Sonali Bank branches remittance are quickly disposed of.

To help increase foreign remittances, Sonali Bank has established Taka drawing arrangements with 23 (Twenty Three) Banks / Exchange Companies. Taka drawing arrangements with 6(Six) more Exchange Companies are under process.

Efforts are being made to establish Taka drawing arrangements with many more Exchange Companies all over the world.

COUNTRY WISE LIST OF THE EXCHANGE COMPANIES

Bahrain
BAHRAIN FINANCING COMPANY

P.O. BOX NO.243, MANAMA, BAHRAIN TELEX NO-8416 BFC BN, FAX NO- (973) 223495

ZENJ EXCHANGE CO.

P.O. BOX NO.236, MANAMA BAHRAIN TELEX NO.8478 ABUL BN, FAX NO.(0973) 214405

 

KSA
AL-RAJHI COMMERCIAL FOREIGN EXCHANGE

P.O. BOX NO.4514, JEDDHA, K.S.A. TELEX NO-606250/2 ARAJ SJ, FAX NO-6716419/6723220

AL-RAJHI BANKING & INVESTMENT CORPORATION

P.O. BOX NO-28, RIYADH-11411, K.S.A. TELEX NO-(04795)403539 RAJHI SJ /406317 RAJHI SJ/401464 RAJHI SJ, FAX NO-_9661) 4601519/4600922

BANK AL-JAZIRA

KHALED BIN AL-WALEED STREET, P.O.BOX NO.6277, JEDDAH-21442, K.S.A. TELEX NO.601574 HJAZ SJ /601574/1 HJAZ SJ, FAX NO.6532478

Kuwait
KUWAIT BAHRAIN INTERNATIONAL EXCHANGE CO.

P.O. BOX NO.26926, SAFAT-13130, KUWAIT. TELEX NO.23661 KT, FAX NO.2431000

AL-MUZAINI EXCHANGE CO.

P.O. BOX NO-2156, SAFAT-13022, KUWAIT TELEX NO-22129 AL MUZAIZI / 22432 AL MUZEX, FAX NO-(00965) 241817 OR 2451800

 

BAHRAIN EXCHANGE COMPANY

P.O. BOX NO.29149, SAFAT-13152, KUWAIT TELEX NO.31136 BAEXCO KT, FAX NO.(965) 2401859

DOLLARCO EXCHANGE CO. LTD.

P.O. BOX NO.26270, SAFAT 13123, KUWAIT TELEX NO.44741/30226 DOLFEX KT, FAX NO.00965 2412788

NATIONAL MONEY EXCHANGE CO.

P.O. BOX NO.22424, SAFAT-13085, KUWAIT TELEX NO.30449 KT, FAX NO.2462682

OMAN EXCHANGE COMPANY LTD.

P.O. BOX NO.26057 SAFAT, KUWAIT TELEX NO.OMEXCO 44344/ OMEXCO 44848 KT, FAX NO.2426703

THE CITY INTERNATIONAL EXCHANGE CO.

P.O. BOX NO.21804, SAFAT-13079, KUWAIT TELEX NO.44167 CITEX KT, FAX NO.(964)240731

Malaysia
MAY BANK

100, JALAN TUN PERAK, 50050, KUALA LUMPUR, MALAYSIA TELEX NO. MA 32837, FAX NO.03-2302611

Oman
OMAN BANGLADESH EXCHANGE COMPANY

P.O. BOX NO.994, POSTAL CODE NO.114, MUSCAT SULTANATE OF OMAN TELEX NO.3291 OBEC ON, FAX NO.7735141

GULF OVERSEAS EXCHANGE CO.

P.O. BOX NO.3931, RUWI-112 SULTANATE OF OMAN TELEX NO.3643 GOECOMAN ON, FAX NO.454232 / 7730202

BANK MUSCAT

SULTANATE OF OMAN, FAX NO.(968) 705506

NATIONAL BANK OF OMAN

P.O. BOX NO.751, RUWI-112 SULTANATE OF OMAN, TELEX NO.3281 NBO ON FAX NO.707781

Qatar
EASTERN EXCHANGE ESTABLISHMENT

P.O. BOX NO.454, DOHA, QATAR. TELEX NO.4774 EBFO DH, FAX NO.(0974) 4431314

UAE
THOMAS COOK AL ROSTAMANI EXCHANGE COMPANY

P.O. BOX NO.10072, DUBAI, U.A.E. TELEX NO.47482 T COOK EM, FAX NO.(04) 2286822

MASHREQ BANK

PO. BOX LNO.10955, ABU DHABI U.A.E. TELEX NO.45674/45429 MSHQCM EM, FAX NO.02-5122115

U.A.E. EXCHANGE CHNTRE

P.O. BOX NO.170, ABU DHABI U.A.E. TELEX NO.24130 EXCENT EM, FAX NO.211447 / 312030

HABIB & AL-MANSOOR EXCHANGE CO.

P.O. BOX NO.2370, ABU DHABI, U.A.E. TELEX NO.24358 HALMEX EM, FAX NO.00971-2-6225810 00971-2-6221547

WALL STREET EXCHANGE CENTRE

P.O. BOX NO.3014, NAIF ROAD DEIRA, DUBAI U.A.E. TELEX NO.48313 PIJET EM, FAX NO.267420 / 252673, 2286533/2252673

 

The Corporate and District Head Quarters branches are authorized to make payment of Taka draft directly. Taka draft may also be paid by collection through other branches of Sonali Bank.

Government of the People’s Republic of Bangladesh has decided to issue the US Dollar Investment Bond with effect from 1st November 2002.

Eligibility of the Purchaser:

The Bond may be issued in the name of a holder of a non-resident account against remittances from abroad to the account.

Issuing Branches :

      Sonali Bank Wage Earner’s Corpt. Branch,Dhaka

      Sonali Bank Dhaka Cantt.Corpt. Branch, Dhaka

      Sonali Bank Wage Earner’s Branch,Ctg.

      Sonali Bank Khulna Corpt. Branch, Khulna

      Sonali Bank Dargagate Corpt. Branch, Sylhet

      Sonali Bank Foreign Exchange Branch, Moulovibazar

Salient Features of the Bond :

Maturity Period: 03 Years.
Interest Rate: 6.5 % (Fixed) Per Annum.

Interest may be drawn on half yearly basis.

Principal & Interest will be payable in US Dollar.

Principal & Interest may also be paid in Bangladesh Currency on option.
The Principal & Interest shall be free from income-tax.
On maturity principal amount may be re-invested or repatriated abroad in Foreign Currency.

Denomination of Bonds :

US $ 500 · US $ 1000 · US $ 5000 · US $ 10,000 · US $ 50,000

Limit :

A purchaser can purchase Bond for minimum of US $ 500 and any amount in multiples of US $ 500 without any maximum limit.

Premature Encashment :

The Bond may be encashed before maturity at following rate of interest:

Encashment

Interest payable

Within one year from the date of issue.

No interest

After completion of one year but within two years

5.5%

After completion of two years but within three years.

6.0%

After completion of 3 years.

6.5%

Nominee :

The Purchaser shall appoint a nominee to receive the value of the Bond & Interest payable thereon in the event of death of the holder.

Additional Benefit :

A purchaser having purchased Bond/Bonds totaling US $ 1,000,000 (One million) or above will be treated as C.I.P

Replacement :

In case a Bond is lost, stolen, destroyed, damaged or defaced there is provision
for issuance of duplicate Bond.

Government of the People’s Republic of Bangladesh has decided to issue the US Dollar Premium Bond with effect from 1st November 2002.

Eligibility of the Purchaser:

The Bond may be issued in the name of a holder of a non-resident account against remittances from abroad to the account.

Issuing Branches :

      Sonali Bank Wage Earner’s Corpt. Branch,Dhaka

      Sonali Bank Dhaka Cantt.Corpt. Branch, Dhaka

      Sonali Bank Wage Earner’s Branch,Ctg.

      Sonali Bank Khulna Corpt. Branch, Khulna

      Sonali Bank Dargagate Corpt. Branch, Sylhet

      Sonali Bank Foreign Exchange Branch, Moulovibazar

Salient Features of the Bond :

Maturity Period: 03 Years.
Interest Rate: 7.5 % (Fixed) Per Annum.
Interest may be drawn on half yearly basis.
Principal will be payable in US Dollar.
Interest will be paid in Bangladesh Taka.
Principal may also be paid in Bangladesh Taka on option.
Principal  & Interest shall be free from income-tax.
On maturity principal amount may be re-invested or repatriated abroad in Foreign Currency.

Denomination of Bonds :

US $ 500 · US $ 1000 · US $ 5000 · US $ 10,000 · US $ 50,000

Limit :

A purchaser can purchase Bond for minimum of US $ 500 and any amount in multiples of US $ 500 without any maximum limit.

Premature Encashment :

The Bond may be encashed before maturity at following rate of interest :

Encashment

Interest payable

Within one year from the date of issue

No interest.

After completion of one year but within two years

7.5%

After completion of two years but within three years

7.0%

After completion of 3 years

7.5%

Nominee :

The Purchaser shall appoint a nominee to receive the value of the Bond, interest payable thereon and also the death risk benefit, if any, in the event of death of the holder.

Additional Benefit :

      A purchaser purchasing Bond(s) for at least US $ 10,000 at the first instance and increases the investment by subsequent addition will qualify for a free death-risk-benefit of maximum Tk 20, 00,000 in the event of his death on fulfillment of some terms & conditions.

      The purchaser having purchased Bond(s) totalling US $ 1,000,000 (One million) or above will be treated as C.I.P.

Replacement :

In case a Bond is lost, stolen, destroyed, damaged or defaced there is provision for issuance of duplicate Bond.

Non – Resident Investor’s Taka Account (NITA)


Non-resident Investor’s Taka Account-(NITA) can be opened with any Authorized Dealer branch by foreign currencies earned abroad for investment in the shares and securities in the capital market of Bangladesh.

      Shares and securities can be bought by funds in the NITA. Dividends earned on and sale proceeds of shares and securities can be credited to NITA.

      Total balance held in NITA can be repatriated abroad in foreign currency at the ruling rate at any time.

      Dividends earned or capital gains on investment are tax-free.

      NITA can be operated by nominee in Bangladesh and the Bank itself with which the account is maintained may act as the nominee.

Interest Rates for Wage Earners :::                                               


Interest rates (P.A)
( Floating)

Wage Earners Development Bond issued for 5 years

12%

Non-Resident Foreign Currency Deposit (NFCD) A/C

Nature of Customer

Currency

Period(Month)

1

Private Individual

USD

1 Month

1.17%

3 Months

1.35%

6 Months

1.64%

12 Months

2.05%

2

Private Individual

GBP

1 Month

4.37%

3 Months

4.58%

6 Months

4.76%

12 Months

5%

3

All Foreign Banks/ Exchange Houses & Financial Institutions

USD

1 Month

1.22%

3 Months

1.43%

6 Months

1.69%

12 Months

2.13%

4

All Foreign Banks/ Exchange Houses & Financial Institutions

GBP

1 Month

4.42%

3 Months

4.63%

6 Months

4.81%

12 Months

5.05%

Resident Foreign Currency Deposit (RFCD) A/C (USD)

.70%

Resident Foreign Currency Deposit (RFCD) A/C (GBP)

3.69%

Foreign Currency Account Dollar (FCAD)

1.12%

Foreign Currency Account Pound (FCAP)

4.32%

Trade Financing

Credit Packages


Sonali Bank extends multiple credit facilities to boost up trade, commerce and industry. The credit packages and interest rates are as under:

Credit Packages

Interest Rates
(Floating)

1

Credit to Trade and Commerce

12%

2

Working capital to Industries.

11%

3

Credit for Power Driven Vechicle/Water Transport.

12%

4

Overdraft against:

 

Fixed deposits

10%

 

DPS/SDPS Accounts

10%

 

National Savings Certificates

10%

 

ICB Certificates

12%

 

Life Insurance Policy

12%

 

Wage Earners’ Development Bonds

10%

 

Shares and Debentures of Public Limited Cos.

12%

 

Work Order of Govt./Semi-Govt./Corporations

12%

5

Housing Loans

12%

6

Small Loans

10% — 10.50%

7

Packing Cash Credit.

7% –8.50

8

Consumers credit

12%

9

Working Capital to Diagnostic Centers

11%

10

Loans to Public Sector Enterprises.

12%

11

Cash credit facilities for Small Business enterprises

12%

12

Agricultural loan under various program/project

9%

Industrial Banking

Credit Schemes


Long term loan for setting up new industrial units and BMRE of existing units including working capital finance are extended by Sonali Bank to cottage industries, small-medium-large scale industries and also to self-employed persons with a view to creating employment opportunities, deployment of resources, increasing GDP and over-all industrial development of the country. Currently the following credit schemes are on offer by the bank:

Some of the main Credit Schemes :

      Industrial Financing for Thrust Sectors

Sonali Bank Industrial Credit Scheme

Special Investment Scheme for Cottage and Small Industries

Financing Large Scale Industries through Banks’ Consortium.

Financing Software Development and Data Processing

About 100 branches including all the corporate and district headquarters branches are designated to handle industrial credit.

Thrust Sector


Besides the traditional and oft-trodden sectors, Sonali Bank has also come up with very low rate of interest to finance the following thrust sectors of the economy as identified by the Government:

      Software development and data processing.

      Agro-based industries (excepting cold storage for preservation of potatoes).

      Manufacture of artificial flowers.

      Frozen foods.

      Gift items (preferably export oriented).

      100% export oriented finished leather goods.

      100% export oriented jute goods

      Jewelry and Diamond cutting and polishing.

      Oil and Gas.

      Sericulture and silk industries.

      Stuffed Toys (preferably export oriented).

      100% export oriented textile industry (excepting garments manufacturing industries).

Other Viable Industrial Sectors

      Composite textile (woven & knit fabrics)

      Textile / Acrylic Spinning

      Sweater Industry

      Garments Accessories & Washing Plant

      Denim Fabrics (export oriented)

      Tourism / Hotel and Resort facilities

      Hospital & Clinics

      Other Export linkage industries.

      Power Generating Plant.

      LPG, CNG Filling & Conversion plant.

      Pharmaceutical Ind.

      Plastic Ind.

      Tannery/Rubber Foot wear.

      Other highly rewarding appropriate technology based projects

Nature of Loan

Interest rates (Floating)

1

Term loan/Project loan

9%–11%

2

Term loan/project loan (Thrust Sector)

9%

3

working capital

11%

Rural Banking

Rural & Microcredit


Rural lending continues to be one of the core lending programs of Sonali Bank. Sonali Bank stepped into rural lending in 1973. Any comparative study would clearly depict Sonali Bank’s supremacy in the Rural Finance Market over other private or public sector commercial banks in Bangladesh. All the on-going rural and micro finance outlets of Sonali Bank aim at increasing agricultural output, promote agro-based Small and Micro Enterprises (SMEs), facilitate agro-based support services, create and sustain employment opportunities through linking the rural and urban poor to the various Income Generating Activitis (IGAs) and reduce poverty. Sonali Bank’s Rural / Microcredit has been channeled through a wide network of 1073 rural branches.

Broadly, Sonali Bank’s rural and mircocredits are of following categories:

Program Credit: These outfits aim at addressing the credit need of the mainstream agriculture ( viz. cereal crops, tubers, pulses, oilseeds, etc.) and agro-sub-sectors (viz. dairy, poultry, fisheries, hatchery, etc.) as well as agro-offshoots ranging from medium term as in small and medium agro-enterprises to long term as in agro-based industries. The programs include:

      Special Agricultural Credit Program (credit to subsistence and marginal farmers as well as share-croppers for raising seasonal crops )

      Financing the poor and subsistence farmers grouped under formal cooperative societies.

      Finance to agro-based Small and Micro Enterprises (SMEs) under a scheme named Special Investment Scheme.

      Finance to Agro based Industries.

      Finance to various farm and off-farm micro enterprises.

      Credit to agro-support sectors (viz. various irrigation equipments, agricultural implements, tractors, power tillers etc).

Supervised Credit: These programs predominantly aim at reducing the level of poverty and generate self-employment opportunities with the core objective of improving the quality of life.

Linkage Credit: These credit outlets have been the collaborative efforts and eventually aim at reaching the targeted hardcore rural and urban poor, socially as well as technically mobilized and prepared by Partner Organizations (NGOs and various public bodies).

In all the cases, Sonali Bank’s micro credits aim at socio-economic development and empowerment of the poor with special focus on disadvantaged/destitute women. Sonali Bank has, interalia, three micro credit products that exclusively target the disadvantaged rural and urban women, namely :

      Integrated Rural Women Development Programmer (IRWDP).

      Credit for Urban Women Micro Enterprise Development Programmer (CUMED)

      NGO linkage programmer for assisting the women in city slums.

Linkage with Microfinance – NGOs: Bangladesh has been the world’s capital of Microfinance with more than 1,000 Micro Finance Institutions (MFls) concentrating to this sector. Sonali Bank with a mission of building a sustainable business relationship with the MFls has marketed this new product in 1997 and leveraged so far a total sum of Tk. 500 Million (=US$ 10 million approximately) to a number of MFIs. Sonali Bank’s

NGO-linkage program has been regarded as the single largest linkage outfit in the world.

Incentives


Rural/Micro credit clients are usually given incentives for on-time repayments by offering rebate on interest payable.

Interest Rates


Nature of Loan                                                                      Interest Rates (Floating)
Mainstream Agriculture
a) Crop Loan

8.00%

b) Other agricultural loan

8.00%

c) Thrust sector (viz. Dairy, Poultry, Fisheries etc)

8.00%

Micro credit/Micro enterprises

a) NGO-linkage                                                                                          

9%

b) Micro enterprises                                                                                

12.00%

 

 

 

Investment Banking

Central Accounts & Fund Management Division at Head Office maintains Investment Portfolio of the Bank. With a view to implementing Government policies & decisions and accelerating the growth of the Capital Market of the country, surplus funds of Sonali Bank are utilized in the following areas:

Short Term:
Call Loans: An overnight investment to other Banks & Financial Institutions.
Treasury Bills: Investment made to the Government through Treasury Bills.
Long Term:
Government / Public Bonds: Sonali Bank purchases bonds issued by the Govt. of Bangladesh and other Public Bodies.
Shares / Equity Participation: Sonali Bank participates in the IPO and extends bridge finance to the equity of Public Ltd. Companies, Institutions and Public Bodies.
Debentures: Sonali Bank purchases debentures issued by the Public Bodies and Financial Institutions under Government Guarantee. Besides, Sonali Bank purchases the debentures of the Public Limited Companies.

Government Business

Receipt & Payment


Bangladesh Bank, the central bank of the country has authorized Sonali bank to carry out Government transactions on its behalf in places where it has no branch. At present 572 branches of Sonali Bank carry out Government transactions. These branches receive deposits towards Government exchequer and pay against different Government bills/Payrolls. Besides, 104 more branches of Sonali Bank receive only deposits towards Government exchequer where branches of Bangladesh Bank exist.

Chest Branches Of Sonali Bank


Sonali Bank holds chest on behalf of Bangladesh Bank at its 65 branches throughout the country.

Utility Services

Sonali Bank offers multiple special services with its network of branches throughout the country in addition to its normal banking operations.

 

Collection :

 

      Gas bills

      Electricity bills

      Telephone bills

      Water/Sewerage bills

      Municipal holding Tax

      Passport fees and Travel tax

      Customs & excise duties

Payment :

 

      Pension of employees of Government and other Corporate Bodies

      Army pension

      British pension

      Students’ stipend/scholarship

      Old age allowances

      Widows, divorcees and destitute women allowances

      Freedom Fighters’ allowances

      Govt. & Non-Govt. Teachers’ salary

      Food procurement bill on behalf of the Govt.

Sale & Encashment/Purchase :

 

      Savings Certificates

      ICB Unit Certificates

      Prize Bonds

      Wage Earner’s Development Bonds

      Lottery tickets of different Semi-Govt. and Autonomous Bodies.

 

 

 

 

 

New Products

IT Project Financing


For growing international markets for software and data processing this scheme provides long term and short term credit facilities on easier terms to set up and run IT based projects.

Eligibility: Entrepreneurs, of them at least two with recognized degree/diploma in Computer Science or Electrical Engineering / Telecommunication / Applied Physics & Electronics, forming a private limited company may apply. Experience in the related field will be preferred.

 

Loan Limit: Maximum Tk. 1.50 million. In deserving cases, upto Tk.10.00 million may be considered.

 

Debt-Equity Ratio: 80:20.

 

Period: Maximum 6 years including 1 year grace period.

 

Security: In case of Rented premises collateral of immovable at least covering prayed loan is needed. in case of project with own land & building no collateral security other than the personal guarantee of the loanees is required. Entrepreneurs offering collateral security will be preferred.Or Loan may be consider with personal guaranty of worthy person(s) (Third party) and in such case original certificates on academic achievements of the sponsor are required.

 

Interest Rate: 9% p.a.

 

IT Export Financing


For export of software and processed data short term finance is extended to existing IT projects.

Eligibility : Feasibly implemented and properly staffed IT projects with export L/C or firm contract in hand may apply. Export through settlite, BTTB confirmation required.

 

Loan Limit : Tk. 1.00 million. For larger contract higher amount may be considered.

 

Debt-Equity Ratio: 90:10.

 

Period: L/C or Contract period plus 21 days but not exceeding 180 days from the date of disbursement.

 

Security: No collateral security other than the personal guarantee of the loanees is required. But for loan amount exceeding Tk. 1.00 million collateral will be required.

 

Interest Rate: 7% p.a.

 

Sonali Bank Reday Cash Card Service


Sonali Bank started “Sonali Bank Ready Cash Card Service”. In this respect we are furnishing below the main features of the program as under:-

      Sonali Bank Ready Cash Card is a Debit Card.

Cardholder can easily pay utility bills like – Water, Telephone, Gas etc.

It is easy to remit funds among the participating branches of the Bank.

Transaction beyond working hours

It is a riskless Cash Carrying facility

Cashless purchase can be made form specific merchandise points

Only computerized Branches of Dhaka City will deal Ready Cash Card.

Branches of other Cities and Towns will introduce Sonali Bank Ready Cash Card in due course.

 

Consumers’ Credit Scheme


With the steady development of the industrial and the service sectors in Bangladesh, the level of personal consumption has recorded progressive growth. To cater to the growing demand for consumer durables, Sonali Bank has launched the “Consumers’ Credit Scheme”, with the following features:

      Eligibility: Permanent employees with 5 years service in Govt., Semi-Govt. organization and Autonomous & recognized bodies.

Loan limit: Maximum Tk. 1.00 lack.

Debt-equity ratio: 75:25

Interest rate: 15% p.a. (Yearly compound)

Mode of repayment: Monthly installment.

Period of loan: Maximum 3 years.

Security:


a)      Hypothecation of consumer goods to be purchased

b)      Letter of guarantee from the employer.

c)      No objection certificate & salary certificate from employer.

d)     Lien on provident fund/gratuity.

Designated Branches: All district branches and the corporate branches

Loan Facility for Diagnostic Center


Sonali Bank has launched a new loan scheme for “Diagnostic Center” to promote medical facilities. The salient features of the scheme are as follows:

Nature of loan:

Cash Credit (Hypothecation)

Interest Rate:

16% (Floating).

Margin:

40%

Security:

Primary Security: Stock of Chemicals, X-ray papers, Injection Syringe, Medicine etc.

Collateral Security: Collateral security twice the value of the loan is required

Period of loan:

One Year.

Sonali Bank become MCC’s first ever ticket selling partner


Sports Correspondent

Bangladesh’s largest banking network Sonali Bank’s UK branch joined Marylebone Cricket Club (MCC) to promote Bangladesh’s first ever Test at the Lord’s against the hosts England in the Npower Test Series beginning on May 26.

According to the news that released on March 11 at the MCC website, the bank will sell tickets of the match from today (March 14) from it’s main branch in Osborn Street, London E1, at the heart of one of Britain’s biggest Bangladeshi communities.

MCC’s Secretary & Chief Executive Roger Knight said: “MCC has a very long and strong relationship with cricket in Bangladesh.”

“We are really excited too, by the prospect of staging an England vs Bangladesh Test for the first time. We want to attract as many people as possible to this historic moment in the long history of Lord’s,” he added.

The ticket-selling partnership is the first of its kind in MCC history and reflects the Club’s commitment to attract as many people as possible to Bangladesh’s first Test match at Lord’s.

“As the Sonali Bank (UK) Ltd. works closely with so many members of the Bangladeshi community in Britain, it’s the perfect partner to help MCC promote England vs Bangladesh at ‘the home of cricket’,” Knight said.

In an associated initiative, ticket availability is being promoted through leaflets and posters printed in both English and Bengali.

These initiatives are the latest parts of a promotional campaign, which began back in September, when MCC hosted a reception for the Bangladesh team – and prominent members of the Bangladeshi community in Britain – at Lord’s.

The Osborn Street branch of the Sonali Bank (UK) Ltd. will sell a range of tickets to this Test; children’s tickets cost £5 each, while adult ticket prices range from £20 to £30. The tickets will be available between 9.30am and noon from Monday to Friday, and from 11am to 2pm on Saturdays.

At the same time, tickets remain available from MCC’s Ticket Office.

Bangladesh will play two Tests in the Npower Test series against the hosts England followed by a tri-nation NatWest ODI series also involving Australia.

The first Test of the Npower series is scheduled to take place at the Lord’s from May 26 and the second and final is set to be played at Chester-le-Street on June 3.

The tri-nation NatWest series will begin with the match between Bangladesh and England at Cardiff on June 18.

 

 

 

Reference

      Banking & Insurance

  • Commerce Publications
  • Page 64 – 67

  Annual Report Of Sonali Bank,2002

Questions & Answers :

 


 

1. What is the meaning of “Sonali”?

The word “Sonali” is a Bengali word which means ‘Golden’.

 

2. Who owns Sonali Bank?

Sonali Bank is a fully Govt. owned Commercial Bank in Bangladesh.

 

3. When was Sonali Bank Established?

In 1972.

 

4. Can I open an account with Sonali Bank?

Yes, you can open a Saving, Current, Short-term or Fixed Deposit Account with any branch of Sonali Bank.

 

5. What is the exchange rate between US$ and Bangladesh Currency (TK)?

One US$ is equivalent to Tk.66.50 (flexible).

 

6. Can I send money home from overseas?

Yes, you can easily send money from overseas. Contact any of our overseas branches / booth / subsidiaries / representative office / Agencies etc.

 

7. What is Ready Cash?

Ready Cash is a debit card facility.

 

8. Can I open an L/C through Sonali Bank?

Yes, you can open L/Cs through Sonali Bank.

 

9. What is micro-credit?

Micro-credit is a small unit of loan meant for self-employment.

 

10. Does Sonali Bank have overseas branches?

Yes, Sonali Bank has two overseas branches in India.

 

11. Does Sonali Bank have overseas booth?

Yes, six booths in the USA and five booths in the UK operated by its subsidiaries.

 

12. What are the latest loan programs?

a) IT software financing
b) Consumer’s credit
c) Diagnostic center credit programs etc.

 

13. What are the consumer credit programs?

It is a facility for individuals to take small loan under leasing arrangement to purchase consumer durables including computer system etc.

 

14. What can Sonali Bank do for Non-Resident Bangladeshis?

Sonali Bank can facilitate quick remittance of foreign currencies by NRBs to their beneficiaries. Entrepreneurial NRBs can avail software development loans from the Bank either as an individual or in group. They can also promote Sonali Bank financed software products in Bangladesh. They can also invest in agro-processing industries and other thrust sectors through Sonali Bank.

Conclusion

Making term paper on the “Role & Function Of A commercial Bank In Bangladesh (Sonali Bank)” was not at all an easy task. Because the number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks, 28 local private commercial banks, 12 foreign banks & the rest five are Development Financial Institutions & choosing one is so much difficult. I know that I could not reach the sand of the deep blue see; still I am satisfied as though in the initial stage, I did design some thing successfully. My main limitations are in the facts that I could not write many of the role & functions of the bank because of not getting so much enough information from the bank to prepare this report.


Besides the traditional and oft-trodden sectors, Sonali Bank has also come up with very low rate of interest to finance the following thrust sectors of the economy as identified by the Government:

  •       Software development and data processing.
  •       Agro-based industries (excepting cold storage for preservation of potatoes).
  •       Manufacture of artificial flowers.
  •       Frozen foods.
  •       Gift items (preferably export oriented).
  •       100% export oriented finished leather goods.
  •       100% export oriented jute goods
  •       Jewelry and Diamond cutting and polishing.
  •       Oil and Gas.
  •       Sericulture and silk industries.
  •       Stuffed Toys (preferably export oriented).
  •       100% export oriented textile industry (excepting garments manufacturing industries).

Other Viable Industrial Sectors

  •       Composite textile (woven & knit fabrics)
  •       Textile / Acrylic Spinning
  •       Sweater Industry
  •       Garments Accessories & Washing Plant
  •       Denim Fabrics (export oriented)
  •       Tourism / Hotel and Resort facilities
  •       Hospital & Clinics
  •       Other Export linkage industries.
  •       Power Generating Plant.
  •       LPG, CNG Filling & Conversion plant.
  •       Pharmaceutical Ind.
  •       Plastic Ind.
  •       Tannery/Rubber Foot wear.
  •       Other highly rewarding appropriate technology based projects

Nature of Loan

Interest rates (Floating)

1

Term loan/Project loan

9%–11%

2

Term loan/project loan (Thrust Sector)

9%

3

working capital

11%

Rural Banking

Rural & Microcredit


Rural lending continues to be one of the core lending programs of Sonali Bank. Sonali Bank stepped into rural lending in 1973. Any comparative study would clearly depict Sonali Bank’s supremacy in the Rural Finance Market over other private or public sector commercial banks in Bangladesh. All the on-going rural and micro finance outlets of Sonali Bank aim at increasing agricultural output, promote agro-based Small and Micro Enterprises (SMEs), facilitate agro-based support services, create and sustain employment opportunities through linking the rural and urban poor to the various Income Generating Activitis (IGAs) and reduce poverty. Sonali Bank’s Rural / Microcredit has been channeled through a wide network of 1073 rural branches.

Broadly, Sonali Bank’s rural and mircocredits are of following categories:

Program Credit: These outfits aim at addressing the credit need of the mainstream agriculture ( viz. cereal crops, tubers, pulses, oilseeds, etc.) and agro-sub-sectors (viz. dairy, poultry, fisheries, hatchery, etc.) as well as agro-offshoots ranging from medium term as in small and medium agro-enterprises to long term as in agro-based industries. The programs include:

  •       Special Agricultural Credit Program (credit to subsistence and marginal farmers as well as share-croppers for raising seasonal crops )
  •       Financing the poor and subsistence farmers grouped under formal cooperative societies.
  •       Finance to agro-based Small and Micro Enterprises (SMEs) under a scheme named Special Investment Scheme.
  •       Finance to Agro based Industries.
  •       Finance to various farm and off-farm micro enterprises.
  •       Credit to agro-support sectors (viz. various irrigation equipments, agricultural implements, tractors, power tillers etc).

Supervised Credit: These programs predominantly aim at reducing the level of poverty and generate self-employment opportunities with the core objective of improving the quality of life.

Linkage Credit: These credit outlets have been the collaborative efforts and eventually aim at reaching the targeted hardcore rural and urban poor, socially as well as technically mobilized and prepared by Partner Organizations (NGOs and various public bodies).

In all the cases, Sonali Bank’s micro credits aim at socio-economic development and empowerment of the poor with special focus on disadvantaged/destitute women. Sonali Bank has, interalia, three micro credit products that exclusively target the disadvantaged rural and urban women, namely :

  •       Integrated Rural Women Development Programmer (IRWDP).
  •       Credit for Urban Women Micro Enterprise Development Programmer (CUMED)
  •       NGO linkage programmer for assisting the women in city slums.

Linkage with Microfinance – NGOs: Bangladesh has been the world’s capital of Microfinance with more than 1,000 Micro Finance Institutions (MFls) concentrating to this sector. Sonali Bank with a mission of building a sustainable business relationship with the MFls has marketed this new product in 1997 and leveraged so far a total sum of Tk. 500 Million (=US$ 10 million approximately) to a number of MFIs. Sonali Bank’s

NGO-linkage program has been regarded as the single largest linkage outfit in the world.

Incentives


Rural/Micro credit clients are usually given incentives for on-time repayments by offering rebate on interest payable.

Interest Rates


Nature of Loan                                                                      Interest Rates (Floating)
Mainstream Agriculture
a) Crop Loan

8.00%

b) Other agricultural loan

8.00%

c) Thrust sector (viz. Dairy, Poultry, Fisheries etc)

8.00%

Micro credit/Micro enterprises

a) NGO-linkage                                                                                          

9%

b) Micro enterprises                                                                                

12.00%

 

 

Investment Banking

Central Accounts & Fund Management Division at Head Office maintains Investment Portfolio of the Bank. With a view to implementing Government policies & decisions and accelerating the growth of the Capital Market of the country, surplus funds of Sonali Bank are utilized in the following areas:

Short Term:
Call Loans: An overnight investment to other Banks & Financial Institutions.
Treasury Bills: Investment made to the Government through Treasury Bills.
Long Term:
Government / Public Bonds: Sonali Bank purchases bonds issued by the Govt. of Bangladesh and other Public Bodies.
Shares / Equity Participation: Sonali Bank participates in the IPO and extends bridge finance to the equity of Public Ltd. Companies, Institutions and Public Bodies.
Debentures: Sonali Bank purchases debentures issued by the Public Bodies and Financial Institutions under Government Guarantee. Besides, Sonali Bank purchases the debentures of the Public Limited Companies.

 Government Business

Receipt & Payment


Bangladesh Bank, the central bank of the country has authorized Sonali bank to carry out Government transactions on its behalf in places where it has no branch. At present 572 branches of Sonali Bank carry out Government transactions. These branches receive deposits towards Government exchequer and pay against different Government bills/Payrolls. Besides, 104 more branches of Sonali Bank receive only deposits towards Government exchequer where branches of Bangladesh Bank exist.

Chest Branches Of Sonali Bank


Sonali Bank holds chest on behalf of Bangladesh Bank at its 65 branches throughout the country.

Utility Services

Sonali Bank offers multiple special services with its network of branches throughout the country in addition to its normal banking operations.

Collection :

  •       Gas bills
  •       Electricity bills
  •       Telephone bills
  •       Water/Sewerage bills
  •       Municipal holding Ta
  •       Passport fees and Travel tax
  •       Customs & excise duties

Payment :

  •       Pension of employees of Government and other Corporate Bodies
  •       Army pension
  •       British pension
  •       Students’ stipend/scholarship
  •       Old age allowances
  •       Widows, divorcees and destitute women allowances
  •       Freedom Fighters’ allowances
  •       Govt. & Non-Govt. Teachers’ salary
  •       Food procurement bill on behalf of the Govt.

Sale & Encashment/Purchase :

  •       Savings Certificates
  •       ICB Unit Certificates
  •       Prize Bonds
  •       Wage Earner’s Development Bonds
  •       Lottery tickets of different Semi-Govt. and Autonomous Bodies.

New Products

IT Project Financing


For growing international markets for software and data processing this scheme provides long term and short term credit facilities on easier terms to set up and run IT based projects.

Eligibility: Entrepreneurs, of them at least two with recognized degree/diploma in Computer Science or Electrical Engineering / Telecommunication / Applied Physics & Electronics, forming a private limited company may apply. Experience in the related field will be preferred.

 

Loan Limit: Maximum Tk. 1.50 million. In deserving cases, upto Tk.10.00 million may be considered.

 

Debt-Equity Ratio: 80:20.

 

Period: Maximum 6 years including 1 year grace period.

 

Security: In case of Rented premises collateral of immovable at least covering prayed loan is needed. in case of project with own land & building no collateral security other than the personal guarantee of the loanees is required. Entrepreneurs offering collateral security will be preferred.Or Loan may be consider with personal guaranty of worthy person(s) (Third party) and in such case original certificates on academic achievements of the sponsor are required.

 

Interest Rate: 9% p.a.

 

IT Export Financing


For export of software and processed data short term finance is extended to existing IT projects.

Eligibility : Feasibly implemented and properly staffed IT projects with export L/C or firm contract in hand may apply. Export through settlite, BTTB confirmation required.

 

Loan Limit : Tk. 1.00 million. For larger contract higher amount may be considered.

 

Debt-Equity Ratio: 90:10.

 

Period: L/C or Contract period plus 21 days but not exceeding 180 days from the date of disbursement.

 

Security: No collateral security other than the personal guarantee of the loanees is required. But for loan amount exceeding Tk. 1.00 million collateral will be required.

 

Interest Rate: 7% p.a.

 

Sonali Bank Reday Cash Card Service


Sonali Bank started “Sonali Bank Ready Cash Card Service”. In this respect we are furnishing below the main features of the program as under:-

      Sonali Bank Ready Cash Card is a Debit Card.

Cardholder can easily pay utility bills like – Water, Telephone, Gas etc.

It is easy to remit funds among the participating branches of the Bank.

Transaction beyond working hours

It is a riskless Cash Carrying facility

Cashless purchase can be made form specific merchandise points

Only computerized Branches of Dhaka City will deal Ready Cash Card.

Branches of other Cities and Towns will introduce Sonali Bank Ready Cash Card in due course.

 

Consumers’ Credit Scheme


With the steady development of the industrial and the service sectors in Bangladesh, the level of personal consumption has recorded progressive growth. To cater to the growing demand for consumer durables, Sonali Bank has launched the “Consumers’ Credit Scheme”, with the following features:

      Eligibility: Permanent employees with 5 years service in Govt., Semi-Govt. organization and Autonomous & recognized bodies.

Loan limit: Maximum Tk. 1.00 lack.

Debt-equity ratio: 75:25

Interest rate: 15% p.a. (Yearly compound)

Mode of repayment: Monthly installment.

Period of loan: Maximum 3 years.

Security:


a)      Hypothecation of consumer goods to be purchased

b)      Letter of guarantee from the employer.

c)      No objection certificate & salary certificate from employer.

d)     Lien on provident fund/gratuity.

Designated Branches: All district branches and the corporate branches

 

Loan Facility for Diagnostic Center


Sonali Bank has launched a new loan scheme for “Diagnostic Center” to promote medical facilities. The salient features of the scheme are as follows:

Nature of loan:

Cash Credit (Hypothecation)

Interest Rate:

16% (Floating).

Margin:

40%

Security:

Primary Security: Stock of Chemicals, X-ray papers, Injection Syringe, Medicine etc.

Collateral Security: Collateral security twice the value of the loan is required

Period of loan:

One Year.

Sonali Bank become MCC’s first ever ticket selling partner


Sports Correspondent

Bangladesh’s largest banking network Sonali Bank’s UK branch joined Marylebone Cricket Club (MCC) to promote Bangladesh’s first ever Test at the Lord’s against the hosts England in the Npower Test Series beginning on May 26.

According to the news that released on March 11 at the MCC website, the bank will sell tickets of the match from today (March 14) from it’s main branch in Osborn Street, London E1, at the heart of one of Britain’s biggest Bangladeshi communities.

MCC’s Secretary & Chief Executive Roger Knight said: “MCC has a very long and strong relationship with cricket in Bangladesh.”

“We are really excited too, by the prospect of staging an England vs Bangladesh Test for the first time. We want to attract as many people as possible to this historic moment in the long history of Lord’s,” he added.

The ticket-selling partnership is the first of its kind in MCC history and reflects the Club’s commitment to attract as many people as possible to Bangladesh’s first Test match at Lord’s.

“As the Sonali Bank (UK) Ltd. works closely with so many members of the Bangladeshi community in Britain, it’s the perfect partner to help MCC promote England vs Bangladesh at ‘the home of cricket’,” Knight said.

In an associated initiative, ticket availability is being promoted through leaflets and posters printed in both English and Bengali.

These initiatives are the latest parts of a promotional campaign, which began back in September, when MCC hosted a reception for the Bangladesh team – and prominent members of the Bangladeshi community in Britain – at Lord’s.

The Osborn Street branch of the Sonali Bank (UK) Ltd. will sell a range of tickets to this Test; children’s tickets cost £5 each, while adult ticket prices range from £20 to £30. The tickets will be available between 9.30am and noon from Monday to Friday, and from 11am to 2pm on Saturdays.

At the same time, tickets remain available from MCC’s Ticket Office.

Bangladesh will play two Tests in the Npower Test series against the hosts England followed by a tri-nation NatWest ODI series also involving Australia.

The first Test of the Npower series is scheduled to take place at the Lord’s from May 26 and the second and final is set to be played at Chester-le-Street on June 3.

The tri-nation NatWest series will begin with the match between Bangladesh and England at Cardiff on June 18.

 Reference

      Banking & Insurance

  • Commerce Publications
  • Page 64 – 67

  Annual Report Of Sonali Bank,2002

Questions & Answers :


1. What is the meaning of “Sonali”?

The word “Sonali” is a Bengali word which means ‘Golden’.

2. Who owns Sonali Bank?

Sonali Bank is a fully Govt. owned Commercial Bank in Bangladesh.

3. When was Sonali Bank Established?

In 1972.

4. Can I open an account with Sonali Bank?

Yes, you can open a Saving, Current, Short-term or Fixed Deposit Account with any branch of Sonali Bank.

5. What is the exchange rate between US$ and Bangladesh Currency (TK)?

One US$ is equivalent to Tk.66.50 (flexible).

6. Can I send money home from overseas?

Yes, you can easily send money from overseas. Contact any of our overseas branches / booth / subsidiaries / representative office / Agencies etc.

7. What is Ready Cash?

Ready Cash is a debit card facility.

8. Can I open an L/C through Sonali Bank?

Yes, you can open L/Cs through Sonali Bank.

9. What is micro-credit?

Micro-credit is a small unit of loan meant for self-employment.

 

10. Does Sonali Bank have overseas branches?

Yes, Sonali Bank has two overseas branches in India.

 

11. Does Sonali Bank have overseas booth?

Yes, six booths in the USA and five booths in the UK operated by its subsidiaries.

 

12. What are the latest loan programs?

a) IT software financing
b) Consumer’s credit
c) Diagnostic center credit programs etc.

 

13. What are the consumer credit programs?

It is a facility for individuals to take small loan under leasing arrangement to purchase consumer durables including computer system etc.

 

14. What can Sonali Bank do for Non-Resident Bangladeshis?

Sonali Bank can facilitate quick remittance of foreign currencies by NRBs to their beneficiaries. Entrepreneurial NRBs can avail software development loans from the Bank either as an individual or in group. They can also promote Sonali Bank financed software products in Bangladesh. They can also invest in agro-processing industries and other thrust sectors through Sonali Bank.

 Conclusion

Making term paper on the “Role & Function Of A commercial Bank In Bangladesh (Sonali Bank)” was not at all an easy task. Because the number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks, 28 local private commercial banks, 12 foreign banks & the rest five are Development Financial Institutions & choosing one is so much difficult. I know that I could not reach the sand of the deep blue see; still I am satisfied as though in the initial stage, I did design some thing successfully. My main limitations are in the facts that I could not write many of the role & functions of the bank because of not getting so much enough information from the bank to prepare this report.

 Role and Function of a commercial Bank in Bangladesh (Sonali Bank)