CHAPTER- 01

Introduction

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1.1 Introduction:
The business world is getting dynamic and competitive. It is hard for an organization to run
and even survive in a fast paced, growing and uncertain world if it cannot keep tracks with
the go of business dynamism. Business plays and links important roles in developing the
economy of a country. So, as a student of Department Business Administration, I need to be
attached with any organization to get a handy and versatile experience about the business
world before starting our career. Internship is the arrangement, which makes a bridge
between our academic knowledge and practical world to have an acquaintance with the real
business world as well as to gear me up to lead the future competitive business. I have
worked in different departments and sections of SBL, Sylhet Corporate Branch, Sylhet. In
this report, I will try to make an analysis on General Banking system of SBL.
1.2 Origin of the Report:
Bachelor of Business Administration (BBA) course requires 90 days or three month
attachment with a bank followed by a report assigned by the supervisor in the organization
and endorsed by the faculty advisor. I took the opportunity to do my internship in The Sonali
Bank Limited (SBL). My academic supervisor Md. Alaul Haque, Assistant Professor,
Department of Business Administration, Metropolitan University (MU), also approved the
topic and authorized me to prepare this report as part of the fulfillment of internship
requirement. The report thus was titled as ‘General Banking Activities of Sonali Bank
Limited.’ This internship program and the study have following purposes:-
 To fulfill the requirement of BBA Program;
 To experience the real banking world;
 To get and organize detail knowledge on the job responsibility;
 To get enough knowledge about General Banking activities of SBL;
 To apply theoretical knowledge in the practical field and
 To find out the overall features of SBL.
1.3 Background of the Report:
Metropolitan University has given me a scope to submit a report on Sonali Bank Limited
which is the largest state-owned bank in Bangladesh. The primary purpose of this report is to
give my idea about the General Banking Activities of Sonali Bank Limited. This report is an
attempt to reflect the position of Sonali Bank Limited in the banking industry.

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1.4 Objective of the Report:
The objective of the internship report was to familiarize with the real life Banking and
compare it with the books that we have learnt in our class. The objectives of the report are as
follows:-
1.4.1 General objective: General objectives of the report are:-
 To fulfill the requirement of BBA degree and
 To analyze “The General Banking Activities of Sonali Bank Limited.”
1.4.2 Specific objectives: Specific objectives of the study are:-
 To find out the internal system and actual general banking, loan and advance process
of SBL;
 To know about central bank requirements for the commercial banks on Loan and
Advances;
 To identify the level of customer satisfaction of SBL and
 To provide some valuable recommendations for the specific branch and bank for its
better future.
1.5 Methodology of the Report:
The report has been prepared mainly based on secondary data, famishing by The Sonali Bank
officials have also been incorporated in the report wherever it was considered necessary to
maintain the singleness and lucidity of the report. This report has been prepared on the basis
of experience gathered during the period of three months internship. Personal experience
gained by visiting different desks during internship period. The collected data are taken from
various sources which are mentioned in the below:
1.5.1 Primary Sources of Data:
 Face to face conversation with the respective officers of the banks.
 .Practical experience gained by visiting different desks during internship period.
 .Face to face conversation with the clients.
 Take Interview
1.5.2 Secondary Sources of Data:
 Annual Reports of Pubali Bank Limited.
 Different circular issued by the Head Office and Bangladesh Bank
 Relevant papers and different books.
 Official Records of Pubali Bank Limited.
 Official web site of the Pubali Bank Limited.

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  Prior research reports
1.6 Scope of the Report:
This report has been prepared to gain a clear view of the General Banking activities of the
SBL. Using of all my whole experience I have tried to include different aspects of job
performance. The report will be limited to the level of customer satisfaction. It is my great
pleasure this bank has given me the opportunity to observe the banking environment for the
first time indeed. All provided their valuable suggestions which have contributed
significantly to my understanding on how all banking activities are done in SBL. I have a
remarkable contribution from my supervisor who contributed his valuable supervision,
tireless effort and continuous attention to make this report a complete one. The scope of the
report can be described in terms of two grounds; like:-
Organizational Scope: I have worked in all the desks of general banking division of Sonali
Bank Limited, Sylhet Corporate Branch, Sylhet. I could not get the opportunity to work long
time in Foreign Exchange Department and Loan and Advance Department.
Periodical Scope: Practical orientation in bank has started from the 18 September, 2016 and
the duration of this internship was 90 days.
The report is confined to explain the detailed explanation of other Department; such as- Loan
and Advance Department, Foreign Exchange Department, Card Division, Cash Section.
Credit related to foreign exchange transactions (L/C, LTR, etc.) were excluded. Consumer
Credit (CC) or retail credit facilities and credit provided against Share have also been
excluded from the scope of this report. Details explanation about various types of credit
provided to the staffs of Sonali Bank has also been ignored, as they are special types of credit
provided as a motivating tool for the employees with special terms and conditions.
1.7 Limitation of the Report:
Though I have given utmost effort to prepare this paper but there is some limitation of the
study that I cannot ignore. The main limitations are as follows:-
 Time Constraint: The duration of internship program was not enough to cover all aspect
of banking. Due to time limitation many of the aspects could not be discussed in the
present report.
 Business Secrecy: The main constrain of the study was insufficiency of information
which was required for my report. Some time employees of the bank cannot provide
various information due to security and other corporate obligations.

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 Information: Since the bank personnel were so much busy with their own work, they
could not provide enough time for making concept clear in a particular area.
 Different Circular: For being the largest commercial bank of Bangladesh the functions
and activities of Sonali Bank are too vast, so they change their strategy day by day. As a
result I can’t collect update information and strategy.
 Lack of knowledge: Due to Lack of knowledge, experience and expertise in banking
field it becomes hard to understand each and everything during practical program.

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 Chapter-02
Overview of Banking Industry

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2.1 Banks:
Bank is the life blood of modern economy. The word bank derived from Italian word “Banco,
Banca, Bancus” etc. and German word “Banke”. Simply bank is a bridge between surplus
unit and deficit unit. In the broader sense a bank is a financial intermediary institution which
collects funds from the surplus group of a society as deposit at lower rate of interest and
provide those funds to the deficit group of the society as loan at higher rate of interest.

Banke Banco Bank

(German) (Italian) (English)

Image: Origin of the word of bank

2.2 Origin and Evaluation of Bank:

For an economy is like as blood in a body and a bank may be compared to an artery system of
a body. Modern banking system is not a consequence of an accident but a result of a gradual
systematic development. Though history of banking is as old as human civilization but there
exists little historical evidence as to nature of real banking operation before 13th century. For
the earlier period, the destination between commercial bank and other types of banks is
difficult to make with certainty. It is very difficult for this early period to differentiate
between the activities of dealers in coin and in billion and the activities of bank. Money
exchanger and business were often viewed as one and the same. According to the historians
the first bank of the world was established in China in 600 B.C. Although the banking
business was mostly done by private individuals like the Gold Smith (1000), Jewish
Merchants (1200), and Money Lenders (1300) during the ancient period, many countries
established public banking in order to facilitate trade and commerce or to serve the
government. The Bank of Venice established in 1157 is supposed to be the most ancient
bank. Then the bank of Sans Georgia was established in 1178. Originally there was not full
bank in the 14 modern sense, being simply an office for the transfer of the public debt. It
seems to the historian that Bank of Barcelona is the first modern bank of the world that was
established in Venice, Milan, Amsterdam, and Humbug. Majority of the historians agrees that
the institutional father of modern banking was the Bank of England chartered in 1694. After
it, many modern banks were established in the world like Hindustan bank (1700), Bank of
France (1800), Bank of Japan (1982) act.
At a glance the history of gradual evaluation of banking system:-

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  Ancient age
 Middle age and
 Modern age.
Banking of the ancient age: The most remarkable civilizations of ancient age are Chin, Vedic,
Babylon, Roman (in Roman civilization the bankers were known as Arjentari, Kolistiboy
etc.), Persians civilization so on.
Banking of the middle age: In middle age the ancestors of modern bank (Goldsmiths, money
lenders and the merchant) brought about fabulous expansion of banking business. In this age
Bank of Venice established in 1157.
Banking at modern age: The modern age of banking system started with the establishment of
Bank of Barcelona in 1401.
2.3 Development of Banking Business in Bangladesh:
Beginning of Banking in Bangladesh: After independence there was serious crisis in the
banking sector of Bangladesh. As a result, the Government of People’s Republic of
Bangladesh was formally to cover the charge of the administration of the territory new
constitute Bangladesh. In an attempt to rehabilitate the war-devastated banking of
Bangladesh, the government promulgated a law called Bangladesh Bank (temporary) Order,
1971 (Acting President’s order No.2 of 1971). By this Order, the state bank of Pakistan was
declared to be deemed as Bangladesh Bank and offices, branches and assets of said State
Bank was declared to be deemed as offices, branches and assets of Bangladesh Bank. On that
date there existed 14 scheduled banks with about 3042 branches all over the country.
On the 16th December 1971, there existed the following 12 banks in Bangladesh, namely:-
 National Bank of Pakistan
 Bank Bahawalpur Ltd.
 Habib Bank Ltd.
 Premier Bank Ltd.
 Commerce Bank Ltd.
 United Bank Ltd.
 Union Bank Ltd.
 Muslim Commercial Bank Ltd.
 Standard Bank Ltd.
 Australasia Bank Ltd.
 Eastern Sonali Bank Ltd.

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  Eastern Banking Corporation Ltd.
Nationalization of Banks in Bangladesh: Immediately after the Government of Bangladesh
Consolidated its authority, it decided to adopt socialist pattern of society as its goal. Hence in
order to implement the above mentioned state policy, the Government of Bangladesh decides
to nationalize all the banks of the country accordingly on the 26th March, 1972, Bangladesh
Banks (Nationalization) Order, 1972 (President Order No.26 of 1972) was Promulgated. The
list of those new nationalized banks is below:-
Existing Bank New Bank

1. National Bank of Pakistan. 1. Sonali Bank Ltd.

2. Bank Bahwalpur Ltd.
3. Premier Bank Ltd.

4. Habib Bank Ltd. 2. Agrani Bank Ltd.

5. Commerce Bank Ltd

6. United Bank Ltd. 3. Janata Bank Ltd.

7. Union Bank Ltd.

8. Muslim Commercial Bank Ltd. 4. Rupali Bank Ltd.

9. Standard Bank Ltd.
10.Australasia Bank Ltd.

11 Eastern Sonali Bank Ltd. 5. Pubali Bank Ltd.

12.Eastern Banking Corporation Ltd. 6. Uttara Bank Ltd.

2.4 Little Introduction of Central Bank:

In a country’s economic system, central bank plays an important role as an advisor, a
guardian of government and an apex regulatory body for the country’s monetary and
financial system. Each country of the world has a central bank which prevents the country’s
banking system from failing. So, we can define central bank as a monetary guardian of
transaction system that takes monetary policy to against inflation and deflation.
The name of the central bank of Bangladesh is Bangladesh Bank which was established in
Dhaka as a body of corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972)
with effect from 16 December, 1971.

The main features of central bank are:-

Act as a guardian of money market,
Act as a clearing house,
Features of Central Banker of the last resort
Bank The banker’s of others banks and
The banker of the government

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2.5 List of Banks in Bangladesh:
The banking sector in Bangladesh consists of several types of institutions. Bangladesh Bank
is the central bank of Bangladesh and the chief regulatory authority in the banking sector.
Pursuant to Bangladesh Bank Order, 1972 the Government of Bangladesh reorganized the
Dhaka Branch of the State Bank of Pakistan as the central bank of the country, and named it
Bangladesh Bank with retrospective effect from 16 December 1971. Other than the Central
Bank itself, banks in Bangladesh are primarily categorized into 2 types. They are Scheduled
Banks and Non-Scheduled Banks.

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Serial No Bank

Central Bank (Bangladesh Bank)

State Owned Commercial Banks

01 Agrani

02 Janata Bank

03 Rupali Bank

04 Sonali Bank

05 BASIC Bank

06 BDBL

Specialized Banks

07 Bangladesh Krishi Bank

08 RAKUB.

Private Commercial Banks

09 AB Bank Ltd.

10 Al-Arafah Islami Bank Ltd.

11 Bangladesh Commerce Bank Ltd.

12 Bank Asia Ltd

13 BRAC Bank Ltd.

14 Dhaka Bank Ltd.

15 Dutch Bangla Bank Ltd.

16 Eastern Bank Ltd.

17 EXIM BankLtd.

18 First Security Islami Bank Ltd.

19 ICB Islamic Bank

20 IFIC Bank Ltd.

21 Islami Bank Bangladesh Ltd.

22 Jamuna Bank Ltd

23 Meghna Bank Ltd

24 Sonali Bank Ltd.

25 Midland Bank Ltd

26 Modhumoti Bank Ltd

27 Mutual Trust Bank Ltd

28 National Bank Ltd.

29 NCC Bank Ltd Page 10 of 55

30 NRB Bank Ltd

 CHAPTER-03
Overview of Sonali Bank Limited

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3.1 Background of SBL:
Soon after independence of the country Sonali Bank emerged as the largest and leading
nationalized commercial bank by proclamation of the Bank’s Nationalized Order 1972
(Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank and
Bank of Bhwalpur. As a fully state owned institution, the bank had been discharging its
nation-building responsibilities by undertaking government entrusted different social
economic schemes as well as money market activities of its own volition, covering all
spheres of the economy.
The bank has been converted to a Public Limited Company with 100% ownership of the
government and started functioning as Sonali Bank Limited from November 15, 2007 taking
over all assets, liabilities and business of Sonali Bank. After corporatization, the management
of the bank has been given required autonomy to make the bank competitive and to run its
business effectively.
Sonali Bank Limited is governed by a Board of Directors consisting of 11 members. The
bank is headed by the Managing Director and CEO (Chief Executive Officer), who is a well-
known Banker and a reputed professional. The corporate head quarter of the bank is located
at Motijheel, Dhaka, Bangladesh, the main commercial center of the capital.
Slogan
“Your Trusted Partner in Innovative Banking

Sonali Bank Gets Best Brand Award

Sonali Bank Limited, the largest commercial bank of the country, received best brand award
from Bangladesh Brand Forum, a wing of international survey organization Nielsen. SBL
was also awarded the same consecutive previous two years.
Nealsen Bangladesh has been conducting this survey since 2008 in Bangladesh. Generally
customers’ satisfaction, retail market share and sustainability were the main focus of the
survey. In Bangladesh, Nealsen Bangladesh carries out their survey in 19 different sectors.
According the survey mass people regard Sonali Bank as the bank of all class.

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3.2 Vision, Mission and Objectives:

Vision Socially committed leading banking institution

with global presence

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

The main objectives of the bank are to provide all

type of banking services to the door steps of
people. The bank participates in various socio-
economic development activities and also takes
part in implementation of various policies and
program made by government. As the largest
Objectives state-owned commercial bank, SBL has the
responsibility to run it as a service-oriented and
professional managed leading bank of the country

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 3.3.1) Corporate Information:
CORPORATE PROFILE
Name of the Company : Sonali Bank Limited
Chairman : Mr. Md. Ashraful Moqbul

CEO & Managing Director : Mr. Md. Obayed Ullah Al Masud

Company Secretary : Mr. A.K.M Sajedur Rahman Khan

Legal Status : Public Limited Company

Date of Incorporation : 03 June, 2007

Date of Vendor's Agreement : 15 November, 2007

Registered Office : 35-42, 44 Motijheel Commercial Area, Dhaka,

Bangladesh

Authorized Capital : Taka 6000.00 Crore

Paid-up Capital : Taka 3830.00 Crore

Number of Employee : 22,446

Total No of Branches 1209, No of Foreign branches=2, No of Local

branches=1207
No of Regional Offices 16
No of Principal Offices 46
No of G.M. Offices 11
Phone-PABX 9550426-31, 33, 34, 9552924
FAX 88-02-9561410, 9552007
SWIFT BSONBDDH
Website www.sonalibank.com.bd
E-mail itd@sonalibank.com.bdf
Office Time Sunday – Thursday (10.00 am - 6.00 pm)
Transaction Time Sunday – Thursday (10.00 am – 4.00 pm)
3.3 At a Glance of SBL:

Subsidiaries:
 Sonali Exchange Company Incorporated (SECI) having 10 (Ten) branches in USA.

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  Sonali Investment Limited (Merchant Banking) having 4 (Four) branches at
Motijheel, Paltan, Uttara, Mirpur in Dhaka and 1 (One) branch in Khulna,
Bangladesh.
Associates:
 Sonali Bank (UK) Limited having 6 (Six) branches in UK.
 Sonali Polaris FT Limited
 Representative Office: 3 [One) in Jeddah, KSA; one in Riyadh, KSA and one in
Kuwait
 Correspondence: 639
3.3.2) Business/Services:
Sonali Bank operates the following services:-
Core Business:
 Corporate Banking
 Project Finance
 SME Finance
 Remittance
 Lease Finance
 Consumer Credit
 Trade Finance
 Loan Syndication
 Foreign Exchange Dealing
 International Trade
 NGO-Linkage Loan
 Consumer Credit
 Investment
 Government Treasury Function
 Money Market Operation
 Rural and Micro Credit
 Capital Market Operation
 Special Small Loan

Other Business/Services:
 Government Treasury Bonds
 Locker Service

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  ATM Card
 Utility Bills Collection
 Ancillary Services
 Merchant Banking

Islamic Banking Services:

Deposit Products Investment Products

 Al-Wadeeah Current Account(AWCA)  Bai-Murabaha
 Mudaraba Savings Account(MSA)  Bai-Muajjal
 Mudaraba Special Notice Deposit Account(MSNDA)  Bai-Salam
 Mudaraba Term Deposit Account(MTDA)  Bai-Istisna
 Mudaraba Hajj Saving Account(MHSA)  Hire Purchase Under
 Mudaraba Sonali Monthly Deposit Scheme(SMDS) Shirkatul Melk (HPSM)
 Mudaraba Monthly Profit Scheme(MMPS)

3.3.3) Product and Services of Sylhet Corporate Branch:

Product and Services of Sylhet Corporate Branch

Deposits 1. Savings Deposit A/C

2. Current Deposit A/C
3. FDR A/C
4. STD A/C
5. Sonali Deposit Scheme [SDS:-Valid from 18-May-2016]
6. Educational Deposit Scheme [EDS :-Valid from 18-May-2016]
7. Medicare Deposit Scheme [MDS:-Valid from 18-May-2016]
8. Rural Deposit Scheme [RDS:-Valid from 18-May-2016]
9. School Banking Scheme (SBS)
10. Sonali Bank Deposit Pension Scheme [SBRS:-Valid from 19-May-2016]
11. Sonali Bank Millionior Scheme [SBMS:-Valid from 19-May-2016]

Credit 1. Consumers Credit

Schemes 2. Special Small Credit Scheme
3. IT Finance
4. Loan for Diagnostic Center

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3.3.4) Disclosure on Risk Based Capital:

 BASEL-III Year 2017

 BASEL-II Year 2015-2018

3.3.5) Management Hierarchy:

Managing Director (MD)

Deputy Managing Director (DGM)

General Manager (GM)

Deputy General Manager (DGM)

Assistant General Manager (AGM))

Senior Principal Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)

Officer

Junior Officer (JO)

Assistant Officer Grade (AOG)

Supporting Staff (SS)

PTS

Sources: Management Hierarchy of SBL

3.4 Product and Services (With Interest Rate) of Sylhet Corporate Branch:

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3.4.1) Interest Rate on Deposit Products:
Serial Type of Deposits Rate of Interest
No. Existing Rate New Rate
1. Savings Deposit 5.00% 4.00%
2. Fixed Deposit Receipt (FDR)
For 3 months to >6 months 5.50% 5.00%
For 6 months to >1 year 5.75% 5.25%
For 1 year to >3years 6.00% 5.50%

3. Short Notice Deposit (SND)

Less than TK 25 crore 4.00% 4.00%
From TK 25 crore to TK 100 crore 4.50% 4.00%
Above TK 100 crore 5.00% 4.00%
4. Sonali Bank Daily Profit Account (SBDP) 5.00% 5.00%

3.4.2) Interest Rate on Loan and Advance:

Serial No. Categories Rate of Interest
1. General Advances

Freedom Fighter 7%

Cash Credit: General-Hypothecation 13%

Overdraft 3%

Small Loan 13%

House Building Loan (Only for staff) 5%

Other Staff Loan 5%

Car Loan 0%

Computer Loan 5%

Small Business Loan 13%

Personal Loan 13.5%

2. Industrial Credit

Loan under Sonali Bank Industrial Credit 13%

Loan under External Credit Programme 0%

Working Capital to Industries-Hypothecation 13%

3. Rural Credit

Agricultural Credit 10%

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 Micro Credit 12%

Refinance Scheme for Milk Production 7%

4. Small and Medium Enterprises (SME) 13%

5. Loan against-
- FDR
- DPS 3% more than
the provided
- SDPS
interest rate to
- SDS
customer
- EDS
- MDS
- RDS
- MSS
- MES
- DBS
- NRDS

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 CHAPTER: 4
Description of General Banking
Activities of Sonali Bank Ltd

In my BBA Program I just theoretically understood all the activities related to banking
industry. However, in my internship, I have practically understood all the activities of

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banking systems and procedures. Here, mentioned that, it is not possible for me to explain
each of tasks and details for limitations. But I have tried to explain the main facts and tasks
performed by me.
4.1 General Banking Department:
General banking is the heart of business banking activities. General banking department
performs the core function of bank operates the day-to-day transactions. It is the storage point
of all kinds of purpose in transactions. General banking is the front-side banking service
department. It provides services to customers coming frequently as well as customers coming
for only one time in the bank for enjoying ancillary services. General Banking is an important
department for all banks because it provides day-to-day service to the customers. It is the
department that serves most of the customers of the Bank and the image of the Bank is
established with the services provided by the Front Desk. Almost all the customers are
directly served by this department. Customers open accounts, issue checks books, deposit
their money, receive payments, remit funds, issues bank drafts and pay orders and meet their
demand for cash by honoring checks with this department.
A typical Bank has generally the following sections -

Account
Opening

Cash
Section General Clearing
Banking

Remittance

Sylhet Corporate Branch of SBL has all the required sections of general banking which
are as follows:
 Account opening section
 Bills and clearing section
 Cash section
 Remittance section and
 Mails receive and dispatch section.

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As an intern of Sylhet Corporate Branch of SBL, I was assigned in the 3 sections of General
Banking Department which are- Account Opening Section, Bills and Clearing Section and
Remittance Section. The activities done by me in these sections are described below:-
4.1.1) Account Opening Section:
One of the vital sections under general Banking is the account opening section. In Sylhet
Corporate Branch of SBL Mr. Md. Waris Ahmed (SPO) is in charge of account opening
section. Banker customer relationship begins this section. Various tasks are performed in this
section. Such as:-
 Opening of different types of account
 Issue of checkbook
 Transfer and closing of account
 Enquiry of account.
 Collection of Deposit:
Deposits are life-blood of a commercial bank. Without deposits there are no businesses for
the commercial banks of any nature (NCBs, PCBs or FCBs). Accepting deposits is one of the
two classic functions of commercial banks. Bank deposits can be broadly classified as
follows:-
Bank Deposits

Demand Deposits Time Deposits

(Current deposits, (FDR, STD etc.)
savings deposits etc)

Chart: Types of Bank Deposits

 Demand Deposits: Demand deposits can be withdrawn without any prior notice; such as:
current deposits. Sonali Bank Sylhet Corporate Branch accepts demand deposits through
the opening of
 Current Account
 Savings Bank Account
 Time Deposits: On the other hand a deposit that is payable at a fixed date or after a period
of notice is called ‘Time Deposit’. This branch accepts time deposit through
 Fixed Deposit Receipt (FDR)
 Short Term Deposit (STD)

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 Types of Account: Accounts department is the most important functional area of this
branch. The following types of accounts are maintained in this bank:
 Fixed deposits A/C
 Short-term Deposits A/C
 Savings deposits A/C
 Current deposits A/C
 Call deposit A/C
 Sundry deposit Accounts.
 Procedures for opening of accounts:
Before opening of a current or savings account, the officer of account opening section hears
personal details specially where he or she is living and about his or her income source. If the
customers live near of the particular branch, the branch permits him or her to take an account
opening form and fill up it but if he or she does live near the particular branch, the officer
suggests him or her to go to nearest branch of SBL of his or her home and open an account.
With the prescribed application form the customer has to submit the following paper and
application:-
 Original Copy (for checking) and photo copy of National ID Card or Birth Certificate
or Passport;
 Two copies of recent passport size photographs;
 Introduction by an account holder who has an account with the respective branch;
 Putting three specimen signature in the “Specimen Signature Card” and
 Mandate (if necessary).
During my internship I have opened at least 4/5 accounts daily in Sylhet Corporate Branch
following above-mentioned formalities. Most of the accounts are Savings and very few
accounts are Current. I have also opened 30-40 School Banking Accounts in my three months
internship at this branch.
 Cheque Issue:
After doing the above formalities, the branch provides the customer a pay-in-slip and a
cheque-book. The cheque-book may be off 10-page, 25-page, 50-page or 100-page depending
on the type of account the customer has opened. To complete the issuing of cheque-book, a
customer has to fill-up the ‘Requisition Slip’ for cheque-book. Then a new cheque-book will
be filled-up by the account number of the customer and name of the branch in each page of
the cheque-book. The name and account number of the customer are registered in the
“Cheque-book Issue Register” and a signature is then taken in this register book by the

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customer. The requisition slips are maintained and recorded as vouchers. The serial number
of the cheque-book is also entered in the computer for the proper maintenance of records and
to prevent any attempt of forgery. I issued 15-20 (average) cheque books daily during my
internship program.
Sylhet Corporate Branch of SBL also provides MICR cheque book for its customers by
which they can withdraw money from any branch. To get MICR cheque the customers have
to give an intent in MICR Cheque Issue Register.
Charges: To pay salary and allowances for its employees the branch gives 2 cheque books
(Each of 10 leaves) to its employees without any charge. But Tk 10 is charged for each extra
cheque book of 10 leaves in case of bank staffs. But in case of issuing cheque book for other
savings, current and NSD account holders, TK 1 is charged for each leave. And for MICR
cheque 2.5 taka is charged for each leave.
 Application form for current and savings account:
Recently SBL has changed its former application form for opening account. The new
application form includes 12 pages which are filled by customer and finally branch officer.
Followings are the main contents of the new application form for opening Savings or Current
account in Sylhet Corporate Branch, Sonali Bank Limited:
 Name of the Applicant(s),
 Father’s/Husband’s Name and Mother’s name,
 Nationality,
 Occupation,
 Date of Birth,
 Address: Present, Permanent and Occupational,
 Introducer’s information
 Information about the Nominee
 Special instruction for operation of the account (if any)
 Initial Deposit
 Specimen signature(s) of the Applicant
 Voter ID number or Birth Certificate number or Passport number
 2 copies recent passport size photos of account holder attested by the introducer
 Photo of the Nominee(s) attested by the Account Holder.
If the account holder wants to take ATM service when he or she is opening account, then an
another form named as Debit Card Application Form has to be fulfilled by the customer with

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a extra copy of passport size photograph and this copy of passport size photo does not need to
be attested by introducer
In case of joint account, the applicant must furnish the following information and papers:-
 Name of the parties who will open and operate the account and sign the checks;
 At the event of death either or any of the account holders how the balance will be paid
and to whom the securities (if any) will be delivered. The documentary requirements
are almost the same as individual accounts. Account opening form and the special
instructions must be signed by all the joint account holders to signify their consent;
 If the client is a partnership company, the company has to submit partnership deed to
the bank;
 If the applicant is a sole proprietorship business, the client has to submit trade license
collected from the appropriate authority and seal of the institution.
 If the client is a private or public limited company, the company has to submit
Memorandum of Association (MOA), Article of Association (AOA) and other
necessary documents. Name and specimen signature of the people who are authorized
to open and operate the account and the source of their authority.
 Application Form for Fixed Deposit Receipt (FDR):
Fixed deposits are the deposits in which an amount of cash is deposited in bank for a fixed
period specified in advance. Hence, these deposits are time deposits or time liabilities.
Normally, the money on a fixed deposit is not repayable before the expiry of a fixed period.
At the time of opening the deposit account, the banker issues a receipt acknowledging the
receipt of money on deposit account. It is popularly known as FDR (Fixed Deposit Receipt).
In Sylhet Corporate Branch of SBL, the application form for FRD account opening form is
like savings account and current account forms. But the account holder does not need to
fulfill all pages of account opening form like savings account and current account. In Sylhet
Corporate Branch, following necessary headings have to be fulfilled by an account holder for
opening a FDR account:-
 Amount in figures
 Period
 Rate of interest
 Beneficiary’s name and address
 Special instruction in case of joint account
 Information about nominee(s)
 Address of the applicant(s)

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  Specimen signature(s)
In Sylhet Corporare Branch, after opening a FDR Account, it is usually not recorded in any
FDR register. In case of Fixed Deposit Accounts, the bank needs not hold a cash reserve to
repay money to the customers. The payment will be made after the completion of a certain
period. Hence, Sonali Bank Ltd. offers a high interest rate in Fixed Deposit Account which
have been mentioned in chapter 3.
 Short Term Deposit:
During my internship program I have noticed that in Short Term Deposit (STD) Account, the
deposit should be kept for at least seven days to get interest. The interest offered for STD is
less than that of savings deposit. In Sylhet Corporate Branch, Government Departments like
BIWTC, Jiban Bima Corporation, Bangladesh Biman and other private organizations and
individuals keep money in STD accounts. For this type account, frequent withdrawal is
discouraged and requires prior notice. STD is also called SND or Short Notice Account.
In Sylhet Corporate Branch, usually customers give an instruction that their current accounts
will be debited whenever the deposited amount crosses a certain limit and this amount will be
transferred to the STD account. The Branch follows this instruction by giving the following
entries –
Customer’s Current A/C------------------- Dr.
Customer’s STD A/C---------------------- Cr.
 Transfer of Account to another Branch: The account holder requests to transfer his
accounts by giving the following instructions:-
 Reasons for transfer the account
 Address of the branch at which customer wants to transfer the account and
 The unutilized cheque book will be returned to the transferring branch before transfer
of account.
After verification, the approval of the manager for transferring the account is obtained and
then the specimen of the forwarding letter of transferee branch will be sent. After the
application is received duly approved from the manager, the branch transfer the account
based on the following entries-
Customer’s Account--------------------------- Dr
Transferee Branch Account------------------ Cr
Service charge (income) ---------------------- Cr

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In case of transferring a saving account (Monthly), TK 200 is charged in cash and maximum
charge is TK 300 (including Post cost). But to transfer a government account and bank’s own
employees account the bank does not deduct any service charges.
 Closing an Account:
During the study work I have been taught how to close a bank account before maturity. In
order to close an account before maturity the holder has to place a written application to the
bank. After receiving the application the bank will deduct service charge at an amount
necessary for the respective account as closing fee from the balance and rest of the money is
given to the account holder and the cheque book is to be returned to the branch.
When bank closes an account: Bank closes an account in the following situations:-
 If a customer places written application to the bank to close his account
 If the customer does not properly follow the rules and regulations necessary to operate
his account
 If the bank is notified the message of death of a customer
 If the bank receives a notice regarding the insanity of his customer
 If the bank receives a garnishee order from court etc.
Accounting entries will be-
Customer’s Account--------------------------- Dr
Account Closing Charge (income) ---------- Cr
4.1.2) Remittance section:
The system of transmitting or sending money from one branch to another branch of the same
bank or from one bank to another bank within a country or outside the country is known as
remittance. It is one of the important functional areas of a bank. A bank can earn handsome
fees as commission from the dealings of money remittance. During my internship program I
have gathered practical experience about how money is remitted from one branch to another
branch of a bank or from one bank to another bank.

Issuing Paying
Remitter Branch Branch Payee

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 Chart: Bank Remittances Flow

 Types of Remittance:
Sonali Bank Ltd. earns more from this section by TT, DD, MT, PO, Spot cash, Western
Union, Xpress Money, Transfast, EFT, BFTEN etc. Remittance can be of two types; such as:-
 Inland Remittance
 Foreign Remittance.
Inland Remittance: When money is remitted within a country through proper banking
channel, it is termed as inland remittance. Sonali Bank, Sylhet Corporate Branch deals a lot
of inland remittance at every working day.
Modes of Inland Remittance: From three months internship program I have known that there
are various types of inland remittances. They are:-
1. Demand Draft (DD)
2. Pay Order (PO)
3. Mail Transfer (MT)
4. Telegraphic Transfer (TT)
5. Any Branch Banking (ABB)
1. Demand Draft (DD):
DD is the most widely used instrument of remitting fund. It is order to pay money drawn by
one branch of a bank upon another branch of same bank for a particular amount of money
that is payable to order and demand. This instrument can be purchased by a customer from a
particular bank for himself and can be handed over to the purchaser for delivery to the
beneficiary. The payee or beneficiary will claim the amount of money in the instrument by
producing the same to the concerned paying branch. Demand draft may be paid in cash to the
payee on proper identification or the amount may be credited to his account (in case of A/C
holder of the bank).

Voucher Issuing Branch gives Purchaser

submitted to branch DD to sends DD to
branch prepares DD purchaser payee

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 Paying Payee
branch pays presents DD
the amount to branch

Flow Chart for DD

Receiving Money DD presented

Sends
Issuing Branch Paying Branch

Advice of Drawing

Issues DD Pays DD

Flow Chart for DD Payment

Procedures of remitting money through DD: The procedures of remitting money through DD
are stated briefly in below:-
a) At first, the sender of money is advised to fill up a form and deposit the cash. The form is
usually called DD application form or credit voucher,
b) The senders of money fills up the voucher appropriately and place it with cash before the
officer at cash receipt section,
c) After receiving the voucher and cash, the officer counts the money and charges a fee as
commission,
d) After that, the voucher is sent to the concerned officer of remittance section,
e) Here the officer prepares a paper instrument called “Demand Draft (DD)” and enters the
amount in the draft issue register,
f) If everything is okayed, the officer signs the DD and voucher and keeps the register and
counter foil of the DD,
g) After that the DD is issued to the sender of money. At this stage he can send the DD to
the receiver branch by post or any other ways,

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h) After issuing the DD and handing over it to the sender of money, the DD issuing branch
sends an advice to the receiver branch about DD and
i) Finally, the DD receiver branch makes payment to the bearer of DD. i.e. payee after
completing the necessary formalities.

There are two kinds of DD paper instruments; one is for government DD and another one is
for others. Government DD is entered in the “Government DD Issue Register” and others
are entered in the “Normal DD Issue Register”. During internship program I have
completed these tasks maintaining named formalities
2. Pay or Payment Order (PO):
Payment Order (PO) is an instrument that contains an order for payment to the payee only in
case of local payment whether on behalf of the bank or its constituents. Customers can
purchase to deposit as security money or earnest money. Payment Order is in the form of
receipts and issued by joint signatures of two officials. Payment of this instrument is made
from the branch it has been issued. The payee’s banker who should certify that the amount
would be credited.
3. Mail Transfer (MT):
MT is another widely used instrument of remitting fund from one branch of a bank to another
branch of the same bank. It is not used to remit fund from one bank to another. MT is nearly
same as DD
Procedures of remitting money through MT: The procedures of remitting money through MT
are almost same as the procedures of remitting fund through DD. But there are some
exceptions in this system. The procedures of remitting money through MT are stated in
below-
a) In case of MT, the sender of money is not provided with the MT paper but a receipt. The
branch sends the MT paper under its own responsibility by mail to the MT receiving
branch.
b) The MT issuing branch has to send a secret message i.e. test to the MT receiving branch.
It is must for any amount of money. Here the amount of money, issuing date and other
particulates are mentioned.
c) To maintain the secrecy of the message sent, the issuing branch codes the message by a
particular number consisting of different digits. After receiving the message, the paying
branch decodes it by using the predetermined techniques. This process is called test. In

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 Sylhet Corporate Branch of SBL test is done by Senior Principal Officer. If everything is
okayed, the paying branch makes payment to the payee.
4. Telegraphic Transfer (TT):
TT is another widely used mode for remittances of funds. Telegraphic Transfer is quicker
than a transfer of amount by DD or MT. The customer deposits money with the branch to be
sent. The customer obtains a cash memo containing TT serial number.
Procedures of remitting money through TT: The primary formalities that have to be followed
to remit money through TT are same as DD and MT. These are:-
a) In case of TT, no paper instrument is sent to the paying branch. Rather the TT issuing
branch sends a TT advice through telephone, telegraph, Fax or telex to the paying
branch. In sending message, the branch keeps necessary secrecy,
b) Side by side, the TT issuing branch sends an advice to the Head Office of the bank,
c) After receiving the message, the paying branch tests to decode the message. If
everything is obeyed, then the branch makes payment to the payee. After that the
branch sends an advice to the head office to reconcile the accounts of both branches
and
d) In case of TT, test is must for every issue and for any amount of money.
5. Any Branch Banking (ABB):
Sonali Bank Limited is providing Any Branch Banking facility through its 1,203 branches.
To provide fast service, Sylhet Corporate Branch of Sonali Bank Limited is providing this
facility to its customer. To transfer an amount through ABB from Sylhet Corporate Branch,
the customers have to use TT, MT, DD form (F-11). The bank detects a service charge from
customers on the basis of transferred amount.
 Charges:
The commission for DD, TT, and MT up to TK 30,000 is Tk. 30 for per 1000 and Tk. 1 for
every thousand above Tk. 30,000. But in case of Payment Order (PO), the following service
charges are charged:-

Amount Charge
Upto TK 1000 20
Upto TK 1,00,000 30
Above TK 1,00,000 100

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In present as VAT TK 5 is charged for DD, TT, MT, and PO. There are some branches of
SBL which provides DD, TT and MT services for their employees without any service
charges and some branches provide these services to their staff with service charge.
B) Foreign Remittance: The procedure to transfer money from one country to another
country through bank or other govt. authorized agencies is called foreign remittance. The
Sonali Bank, Sylhet Corporate Branch, Sylhet provides following foreign remittance facility
to its customer directly.
Procedures for Western Union, Spot cash, Transfast, Xpress money: When the clients arrive
to receive cash, performs the following duties:-
a) Customers show pin number from the remitter abroad to the banker for payment. If 8
digits, it will be spot cash, If 16 digits, it will be Xpress money, if 10 digits, it will be
Western Union, If 13 digits, it will be Transfast,
b) The banker logs in that site and confirms payment by matching information and
c) Then the banker gives payment instrument and the customers collect money from cash
counter.
EFT and BFTN: From various countries, amount is directly transferred to the branch of
the clients. Now, share bonus, fund transfer and salary of government and private
organization are given through BFTN.
In Flow of Foreign Remittance of Sylhet Corporate Branch of SBL:
 July 16, 2016 TK 14.68 million (TK 1,46,84,442)
 August 16, 2016 TK 16.83 million (TK 1,68,29,556)
 September 16, 2016 TK 15.55 million (TK 1,55,54,780)
 October 16, 2016 TK 16.92 million (TK 1,69,21,472)
4.1.3) Bills and clearing section:
Bills Section: This section is very critical and complex. It carries risk. In Sylhet Corporate
Branch a Senior Principal Officer named Mr. Subroto Muhon Kor is charged with this section
that is well-experienced and skilled enough to deal such complexities.
Customers pay and receives bill from their counter party as a result of transaction. SBL
collects bill on behalf of their customer. Collection mechanisms in SBL are clearing, outward
bill for collection (OBC), inward bills for collection (IBC).
 Outward Bills for Collection (OBC): When a particular branch receives bills from its
local parties or banks and sends those to an outstation branch or bank for collection, the
bills are considered outward bills for that particular branch.

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 Inward Bills for Collection (IBC): When the bills are received by a branch either from a
outstation branch, bank or parties direct for collection and remittance of the proceeds, the
bills are considered inward bills for the particular branch.
Clearing Section: Clearing is a system by which a bank can collect customers fund from one
bank to another through clearing house. Clearing section plays a vital role in general banking.
This section receives cheques, DD, PO etc from depositors attached with a deposit slip. Then
instruments are posted the Nikash Computer. After posting this instruments are segmented
bank wise. The Clearing House sits twice daily on all working days. The first clearing is held
in the morning and the second clearing in the afternoon. Time for both the clearings is
predetermined. Change in timing, if any, is advised from time to time by Bangladesh Bank
and Sonali Bank. In the first clearing representative of each member banks delivers
instruments drawn on rest of the banks and receives instruments of other banks drawn on
itself. Cheques or instruments returned unpaid are delivered to the respective representative
along with returning memo in the second clearing.
4.2 Loan and Advance Department:
Credit section is the heard of the banking activities, because the main bank profit comes
from this section. For a short duration of internship I was not set up for long time in this
department and ultimately did not get opportunity to gain more idea about this department.
 Duties of the loan and advance:
In the Sonali Bank ltd offer lot of loan side in the real life and business life, such as-
Consumer loan, Staff House Building Loan, Auto loan for bank top level employees like
AGM, Personal loan, Micro credit etc. From my 3 months internship program it has been
cleared to me that loan defaults are the main risk of Loan Department, sometimes customers
take the loan and one or two installment will be but next time and there are not payment their
installment. So this is main fall of earning this should be very care full process and the leady
process. The following work to do in this department:-
 Loan types,
 Information required for preparing the loan proposal,
 Documents required for preparing the loan proposal and
 Important aspect of the loan sanctioning
4.3 Foreign Exchange Department:
Foreign exchange means foreign currency. If we consider Foreign Exchange as a subject then
it means all kinds of transaction related to Foreign currency as well as currency instruments

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such as DD, TT, TC, Payment Order & Foreign Trade. In other wards Foreign Exchange
deals with foreign Financial Transactions.
 Duties of the Foreign Exchange:
For a very short span of time, I did not get such opportunity to work at Foreign Exchange
Department; ultimately to study on the activities of the department. From my little experience
I have just known that there are 3 kinds of Foreign Exchange Transactions in Sylhet
Corporate Branch. They are:-
 Import
 Export
 Foreign Currency Account
4.4 Learning Points:
I have learnt following things from Sonali Bank Limited, Sylhet Corporate Branch, Sylhet:-
 To learn how to open an account (current account, saving account and short-term
deposit account);
 How to issue Cheque book;
 How to give intent for MICR cheque book;
 How to issue DD;
 How to issue PO;
 How to issue MT;
 How to issue TT;
 How to entry passport fee;
 What types of requirement are necessary for loan;
 How pay cash account holder and
 How to make a financial statement of passport Fees

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 CHAPTER: 5
Task Completed During Internship
Program

As I have worked Sonali bank Ltd. at Sylhet Corporate Branch, Sylhet for ninety (90) days in
General Banking Department, I have worked the following sections. I have taken help in
making report from the following sections’ officers with whom I work and from my
knowledge I gathered during Internship period. The sections are given bellow:

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  Account Opening Section
 Cash Section
 Clearing Section
 Pay Order Section
 Deposit Section
5.1) Activities of Account Opening Section:
Account opening is the gateway for client to enter into transaction with the bank. It is the
foundation of banker-customer relationship. A customer can open different type of account
through the department. The following types of account are opened here:
 Current Account
 Savings Account
 Short Term Deposit Account(STD)
 Fixed Deposit Receipt(FDR)
 Special Deposit Pension Scheme(SDPS)
 Sonali Deposit Scheme(SDS)
 Education Deposit Scheme(EDS)
 Medical Deposit Scheme(MDS)
 Double Deposit Scheme(DBS)
Requirements for opening current Account:
 Firstly fill up current account form.
 For private limited company, Update trade license is a must.
 In case of joint holders certificate from joint stock company.
 For Public Limited Company Certificate from joint stock company is a must and other
papers mentioned above.
 The client will be provided a cheque book of 25 upto 50 pages. Bank charge is Tk.
500 half yearly.
Requirements for opening Savings Account:
 Fill up Savings Account form and Specimen signature.
 Photocopy voter ID card attested by account opening officer after verifying original
voter ID of Account holder.
 If he/she is an employee, Photocopy of Employee’s ID card.
 If he/she is a business man, Visiting Card, Address, copy of trade License.

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  Two copies of Passport size photography of account holder dully attested by the
introducer.
 Two copies of Passport size photography of nominee dully attested by account holder.
 Minimum Tk.500 to be deposited.
 The account holder will be provided a cheque book of 10 pages. Bank charge is
Tk.300 maintenance charge+ Tk45 VAT is deducted half yearly i.e. January1 up to
Jun30.
5.2) Activities of Cash Section:
It is an important part of General Banking Department. Here cash of Current and Savings
accounts receives and also payments are made either in Cash or transfer to respective
Account but Govt. Chalan only receive or transfer to Govt. account. No commission is given
to the bank in case of Govt. Chalan as per Govt. rules but in case of Electricity and Wasa
bills, Cash is received and paid to respective accounts such as SESCO account for Electricity
bills and 2% commissions are deducted. Govt. prize bonds are also purchased and sold. In all
types of vouchers, signature of a cashier and an officer is required.
5.3) Activities of Clearing Section:
Clearing section is complex section of bank. Cheque of other banks or same bank is received
and payments are deposited to Sonali Bank’s Customer accounts. When cheques are
deposited at clearing section and a slip of account details of the account holder is attached
with the cheque, then that cheques are sent to Clearing House in Bangladesh bank for
clearance where all banks’ delegators present there and cheque of other banks are presented
to respective delegators. If the cheques are in favor of Sonali Bank’s other branches, then the
cheques are given to other branch’s delegator. The delegators scan the cheque (MICR
Cheque) through computerized scanning system to further verify at their own branches for
settlement. After one day when they meet again if all information such as cheque number,
Signature of the account holder and amount payable etc. are correct, then the respective
delegators credited the amount to name of account holder of Sonali Bank. Some cheques may
be dishonored under 29 criteria. Some important of them are:

Amended Return Reason Codes for BACH (Bangladesh Clearing House):

 Insufficient Fund.
 Amount in figure and word differs.
 Postdated/ undated cheque.

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  Drawers signature differs/ missing.
 Material alteration-payee name/amount/date/account No.
 Account closed/dormant/blocked.
 MICR (Magnetic Ink Character Recognition) data and Image miss-matched.
 Cheque and advice data mismatch.
 Credit limit exceeded
 Cheque not activated/intimation not received.
 All clearing seals required are not well completed.
5.4) Activities of Pay Order Section:
In any type of pay order, At first vouchers are filled up and amount is deposited in cash
section, then pay order is written in the Section to respective branch account of Sonali Bank
of respective person .The person who sent Pay Order must sign the back part of the Pay Order
Paper. The payment is instantly made to drawer’s account.
The commission that the bank gets as per Bangladesh bank rule is given below:
Amount Commission
Tk. 1 up to Tk.1000- Tk.23 (Tk.20 commision+Tk.3 VAT)
Tk. 1001 upto Tk.100, 000- Tk.35 (Tk.30 commision+Tk.5 VAT)
Tk.100, 001 above - Tk.115 (Tk.100 commision+Tk.15 VAT)
In Case of Demand Draft (DD) and Telegraphic Transfer (TT), same vouchers are filled up
and amounts are received at cash section. In case of DD the bank write DD and DD paper is
provided to the respective customer. DD Advice is provided against DD. In case of TT The
bank write an entry in the registered book and give a test number to the respective customer
to the respective branch account. Some TTs are maintained computerized system where
online facilities are available in the respective branch and some are Telephonic System by
manager.
The commissions are as follow:
Amount Commission
Tk. 1 upto Tk.30000- Tk.65 (Tk.30 commision+Tk.30 Telephonic Charge+Tk5 VAT)
Tk. 30001 +Above- Per thousand costs Tk.1.+15% VAT on Commission Charge amount.

5.5) Activities of Deposit Section:

Sonali bank deposits against many accounts. They are Fixed Deposit Receipts (FDR), Sonali
Deposit Account (SDS), Residential Deposit Scheme(RDS), Education Deposit Scheme

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(EDS), Medical Deposit Scheme(MDS), Double Benefit Scheme(DBS). The Principal and
interest payables of different Deposit Schemes are outlined below:
 Residential Deposit Scheme (RDS): 8% interest is paid on taka 500 up to tk10, 000
deposited at 10 years maturity.
 Education Deposit Scheme (EDS): 8% interest is paid on taka 500 up to tk10, 000
deposited at 10 years maturity.

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 CHAPTER: 6
Gained Knowledge during BBA
Program

6.1 Application of Knowledge Gained During BBA Program:

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6.1.1) Principles of Management:
We studied this course at 2nd semester of our BBA Program. It helped me learn how to
manage works in most efficient and effective manner and maintain the chain of command
within the organization. While doing internship program, I was able to complete my all tasks
efficiently and effectively at the shortest possible time and maintain the chain of command.
6.1.2) PRINCIPLES OF ACCOUNTING : During my internship program I was able to make
various debit voucher and credit voucher by applying the basic concepts learned from
Principles of Accounting course which I studied at 2nd semester. It was also possible for me to
make the Financial Statement of Passport Fees for the year of 2015-2018 of the particular
branch by applying its theoretical concept.
6.1.3) Business Communication:
Business Communication is a course which we studied at the 4 th semester. During my
internship this course helped to be a good communicator by different types of communication
skills; like: writing, speaking, listening and interpersonal. Following are the cases in where I
needed these skills during Internship program:-
 To communicate with the branch employees,
 To collect information from the customers and clients and
 To write formal letter and application
6.1.4) Banking and Insurance and Banking Law and Practice:
We have studied both courses at 7th semester and 10th semester respectively. It is a very
informative course for BBA students and its practical use is much more to do an internship
program especially in a bank organization. Firstly these courses give us a clear idea about
bank, banking, banker, customer, clients. By studying this course we have known about
different types of account; like-current account, savings account, fixed account, different
types of cheques; like- bearer cheque, crossed cheque, blank cheque, antedated cheque etc,
parties of cheque, inland remittance and foreign remittance, reason of dishonoring a cheque.
We have got a detailed idea about L.C. from these courses.
6.1.5) Organizational Behavior:
Organizational Behavior is concerned with the behavioral issues and I read it at 7 th semester
of 4 (Four) years BBA Program. It is a course which comprises of all actions, norms,
behavior which an individual needs to follow within organization. This course made me
aware about conduct in the corporate field. During internship I needed the following things
learned from this course:-
 Marinating office time properly

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  Maintaining formal dress
 How to manage the customers in a diplomatic manner
 How to work in a team as well as an individual etc.
6.1.6) Management Information and Control System (MICS):
Management Information and control enabled me to research this specific topic, analyze the
problem, think creatively, suggest a solution, and prepare a clear written presentation of the
solution and working individually to make the project. Studying this course at 8 th semester I
also got a clear idea about 3 dimensions of information system that is quite needed to know
for working excellently in the bank organization for an employee.
6.1.7) Human Resource Management (HRM):
HRM is a course which tells us about the process of managing human resource and this
course was studied at 8th semester. Though this course seems only necessary for higher level
employees like manager to maintain good performance by hiring the right people in right
place and motivating them to achieve organizational goal, it is also necessary for all
employees in case of maintaining ethics and integrity in the workplace.
6.1.8) Business Research Method:
Business Research Method is a course which is a field of practical study and we studied it at
9th semester. Studying this course I was able to obtain data and analyse them to make a
critical evaluation and to make the report a complete one. Following are the things learned
from this course by which I have benefited to prepare the report:-
 Different research methods,
 What are the relevant and legal source of data,
 How to collect data and information,
 How to filter the data and information,
 How to use facts and information for study,
 How to place right information in right place,
 To know and explain the purpose of the study and

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 CHAPTER 07
ACCOUNTING INFORMATION SYSTEMS
(AIS) OF SBL

7.1 Introduction:
Due to the characteristic of banking business, Sonali Bank is accounting information system
(AIS) have specific important features related to their liquidity management and the

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management of their customers’ account information. According to him, a bank has to
manage its liquidity efficiently in order to maximize profit and to fulfill regulation (minimum
reserve requirement).To perform such duties, the treasury manager need information of
consolidated balance of customers’ deposits, loan and other placements of bank funds. That
information are needed on a daily basis so that the treasury manager can determine how mush
reserve is needed and how much money should be placed in or borrowed from the money
market to conform to the regulation and to maximize the usefulness of available funds. The
use of computer network has made it possible for the treasury manager to get the information
needed almost at anytime. Therefore the bank’s liquidity management could be performed
more timely and efficiently based on accurate information 
Accounting information technology is an integral part of any business. It should provide users
with timely information to aid in preparing financial statement, taxes, reconciling bank
account and generating report, using computer hardware and software. The following are the
benefits of accounting information System in SBL.
7.2 Timely Information: 
The accounting information technologies provide business and other users with timely
information. This information helps users and business with strategic planning, budgets and
other valuable information for payroll, bank reconciliation and creation of spreadsheet.
7.3 Easy to Use: 
Raw data are entered directly into the accounting information technology; the system
processes any calculation, manipulations, reports and reconciliation. The output shows the
result as information in a meaningful manner.
7.4 AIS Practice of Sonali Bank Ltd.:

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hours a day, 7 days a week. All components have been specifically designed to cater for the
processing of very large volumes of transactions on-line in real time. It provides an effective
platform for interactions between customers, business partners and bank employees.
7.5 Internal Control: 
The accounting information technology makes it easier for banks to establish internal control
which help to detect fraud, theft and other mismanagement.
7.6 Decision Making: 
Data recorded and processed enables accounting information technology to yield reports that
aid interested parties in their decision making process. Most accounting information
technology can yield statistics that indicate performance of product or service.
7.7 External Financial Reporting: 
One of the most important characteristics of accounting information technology is its ability
to produce information that helps organizations generate financial statement. From the
accounting information technology, one should be able to create companies balance sheet,
income statement, shareholder or owners’ equity and statement of cash flows.
SBL currently uses accounting information technology (AIT) in a variety of ways and for a
variety of purposes. According to the management of SBL, cash may be dispensed and
deposited, accounts debited and credited automatically. Administration may be assisted by
accounting information technology, (AIT) based on Management Information System or AIS.
Inter-bank and international money transfers may be affected by use of secure utilities such as
society for worldwide inter-bank transfer (SWIFT). However, the central historical problem
and still the central technological issue for SBL concern the capture and organization of
account data through branches. In each, a variety of account transactions are performed
involving cash deposits and withdraws, transfers cheques and standing order. Although many
transactions must still be verified by signature, the main use of account information
technology in SBL has been to generate and control a database of account information and to
effect the transmission of money, which transactions in the account base require. In the past,
when customers want to withdraw money from their saving accounts, they have to come to
the bank’s branch where they opened their account. They filled in certain form, sign on it and
present some identification for verification.

Nowadays, the use of online computerized system of SBL for customer’s account has enabled
the customers to check balance, deposit, withdraw, and transfer money at any branch of the

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bank. The use of Automatic Teller Machines (ATMs) add more convenience to the customers
since it enables to do many usual transactions, cash withdraws, transfer between accounts and
pays bill 24- hours a day. Furthermore, the introduction of internet banking enables the
customers of SBL to do transaction without leaving their home of office. Before the use of
online computer system, when a customer transfer money from his/her account in other bank
or in other branch of the same bank, it usually take one to two days for the fund to be
effective in the receiving account. This is because transfers were processed manually through
the clearing house, which is still using paper-based system. Nowadays, every transaction
done by customers can be directly (debited/credited) into their account no matter in which
branch or ATMs that do it.
Transfer of funds are debited from paying account and credited to receiving accounts
simultaneously. This is made possible by the existence of automated clearing house that
connected online with member computer and using the real time gross settlement (RTGS)
system. Therefore, customers’ accounts are always up to date. On the SBL side, the
advancement of banking computer technology has improved the ability to perform their
liquidity management more efficiently and profitably.
Therefore, it is possible that in certain branches there is liquidity shortage while in other
branches there is excess liquidity. Thus, with online banking system, the bank in certain
branches can be compensated with excess liquidity in other branches. Therefore, the amount
of unproductive funds that should be kept in reserve can be minimized to the required level,
which in turn will reduce the bank’s cost of capital. In fact, electronic banking products, the
range of banks services, which can be delivered to customer’s office or home by electronic
technology, has expanded extensively. Banks now use technology to transmit information,
receive.

In general, a SBL’s accounting information system (AIS) has the same role as in other
companies that is to provide financial and non-financial information to banks external parties
(such as investors, creditors and tax agencies) and internal parties (principal management).

The following things are the characteristics of SBL’s accounting information Systems:
7.7.1 Effectiveness: 
This deals with accounting information being relevant and pertinent to the customers’ process
as well as being delivered in a timely, correct, consistence and usable manner. 
7.7.2 Efficiency: 

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It is concerned with the provision of accounting information through the optimal (most
productive and economic) use of resources.
7.7.3 Confidentiality: 
This is concerned with the protection of sensitive accounting information from unauthorized
disclosure.
7.7.4 Integrity: 
It relates to the accuracy and completeness of accounting information as well as its validity in
accordance with customers’ value and expectation.
7.7.5 Availability: 
It relates to accounting information being available when required by customers now and in
the future.
7.7.6 Compliance: 
It deals with complying with those laws, regulations and contractual arrangements to which
users process their subject i.e. externally imposed criteria as well as internal policies.

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 CHAPTER: 8
Findings, Recommendation and
Conclusion

8.1 Findings:
I have found out some points by screening the whole study, which is expressed as major
findings. The findings are given below:

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  As a commercial bank, Sonali Bank still follows the traditional banking. This
organization still concentrates on production oriented approach.
 There is a training institution and a human resource division of Sonali Bank to run the
activities of human resources.
 It provides compensation according to the government pay scale.
 Sometimes inefficient allocations of resources have created a huge amount of Bad
debt.
 Lack of adequate, 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 ATM booths at different
places
 The employees get a big amount of medical convenience two times in their
working period. So, they feel secured of health during their working period.
 SBL provides more incentives rather than the other private banks. In this year they
provide 7 (seven) incentives excluding the Eid bonus on their profit.
 To keep the employees motivated, incentives, performance reward, promotion
and accelerated promotion etc. are given on a regular basis by the SBL
authority.
 The SBL has introduced a good number of stuff welfare schemes. Schemes to
be a part with the banking communities and improve the conditions of its
employees such as contributory recognized provident fund, gratuity fund,
benevolent fund.

8.2 Recommendations:
The bank is actually service organization and the main objective of the world famous and
successful organization is to make profit through addressing the clients time to time with new

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pieces of services instruments. However, from my three months working experience in Sylhet
Corporate Branch of Sonali Bank Limited at different department leads to recommendation
on the following issues:-
 Firstly, SBL should increase skilled manpower to do its financial activities more
efficiently and effectively. So that many of the employees do not have to do extra
work;
 The branch should be developed by increasing technology and the staff of the bank
should be qualified about technology by proper training;
 The entire general banking system of general banking division is not computerized for
which it takes much more time to open an account and to issue cheque book. If the
whole system is computerized, then the bank can satisfy its customers by providing
fast service;
 In this branch the sections of General Banking Department are not running by
manpower with high quality banking knowledge. Due to lack of skilled employees in
this department the branch is not getting a touch of rich customers;
 The employees of different department cannot cope with the changes and maintain all
rules and regulation in accordance with new circular provided by Bangladesh bank and
Head Office of SBL. Consequently this branch is getting objections more than once
time by internal auditor;
 There is lack of co-ordination among departments which hampers to deliver faster
service to customers. So to achieve organizational goal the branch needs synthesis
among personnel of all departments;
 Senior management and other personnel throughout the bank should work in a straight
forward manner as per regulatory norms of bank;
 The bank should decrease the loan sanction time;
 The bank's rules and condition are very strong in case of providing and collecting loan,
so the customer pays their loan for facing lots of problem;

 The bank should be increased the number of ATM booth and the amount of Q cash
withdrawn from the booths and
 To get customer attraction, the branch decoration and the customer hospitality service
should be developed soon.

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8.3 Conclusion:
Sonali Bank Limited is the largest commercial bank as well as the largest employer in both
the public and private sector in Bangladesh. Though the bank is playing an important role in
the socioeconomic development through the development of industrial sector and providing

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all the conventional banking service as well as some specialized financing activities to the
economy period, it has also to do a lot of things for the country. It has to take initiative so that
it can fulfill the desire of the government and people and sustain valuable customers.
Consequently, it also needs to enhance more public services and to build up working teams. It
must be run in organized way and discipline must be ensured in all sphere of its performance.
Efficient export team, import team and remittance team must be formed and performed duties
properly. More training, computerization, data collection, market analysis and swiftness in
servicing are essentially required.
So in conclusion it can be said that to reach the pick of success by eliminating negatives the
bank can use the mentioned recommended suggestions. Because Sonali Bank limited is near
to the heart of the people acting old heritage with new generation ensuring digital
Bangladesh. It has great impact on the banking business and other sectors of the economy.
For this government help is essential that government will broaden its hand for implementing
the recommendations for the welfare of the people of Bangladesh.

Reference
 Debnath, R. M. (2004). Business of Banking. Dhaka: Lotus Publishers.
 Ali, S. A. & Howlader, R. A. (2009). Banking Law and Practice. Dhaka: New S R
Printing Press.

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 Kumar, R. (2010). Research Methodology: A Step-By-Step Guide for Beginners. (PP.
80-97). USA: Sage Publications.
 Bryman, A. (2007). Business Research Methods. USA: Oxford University Press.
 Zikmund, G. W. (2009). Business Research Methods. (PP. 236-240). Cengage
Learning.
 Financial Performance Analysis of Sonali Bank Limited. Retrieved from
//www.assignmentpoint.com/business/financial- performance-analysis-of-sonali-
bank-limited.html
 General Banking Activities of Sonali Bank Limited. Retrieved from
www.academic.edu/13063352/General-Banking -Activities-of-Sonali-Bank-Limited
 Report on General Banking Activities of Sonali Bank Limited. Retrieved from
www.assignmentpoint.com/business/banking/report/-general-banking-activities-
sonali-bank-limited.html
 Report on General Banking Activities of Sonali Bank Bangladesh. Retrieved from
www.assignment point.com/business/finance/report-on-general-banking-activities-of-
sonali-bank-bangladesh.html
 Sonali Bank is an excellent website for this report (http://www.sonalibank.com.bd).

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