E \.

E 2001
,/ /

l
I

I
I

i
1

---.,-
Annua'l'Report 2001 }

Annual Rep ort 2001

<fffis effu-{q{ \oo)

SONALI BANK
prlrrfr <r.t<+
The Secretary
Finance Division
Ministry of Finance
Government of the People's Republic of Bangladesh
Bangladesh Secretariat
Dhaka.

Annual Report-2001

Sir,
In terms of Sub-section (5) of section 24 of Bangladesh Banl<s (Nationalization) order, 1972
(P.O. no.26 of 1912), we have the pleasure to submit our Bank's Annual Report alongwith the
Audited Profit and Loss Account for the year ended 31 December 2001 and Balance Sheet as on
the date.

Yours faithfully,

TAHMILUR RAHMAN)
Managing Director

J
A rt ttu,il I ,R e p or,l 2O 0 7

BOARD OF DIRECTORS
AS ON DECEMBER 3I, 2OO1

Chairman

DR. Amirul Islam Chowdhury

Managing Director

Mr. Rabiul Hussain

Directors

Mr. BMM Mozharul Huq, ndc

Mr. Khondker Fazlur Rahman

Brigadier General Syed Talibur Rahman, psc

Mr. Sheikh Abdul Hafiz, FCA

Mr. Ershadullah

4
Aunaal Rep0rt 2001

SENIOR EXECUTIVES
AS ON 3I DECEMBER,2OOI

Deputy Managing Director

Mrs. Anisa Hamed

General Managers

Mr. H.M. Khalequzzaman

Mr. Muhammad Tahmilur Rahman
Mr. A. A. Fazle Rabbi
Mr. S. M. AminurRahman
Mr. Md. Shamsul Haque
Mr. Mukter Hussain
Mr. Md. Amanullah
Mr. Syed Jafrul Islam
Mr. Jaglul Karim
Mr. Md. Nazmus Salehin
Mr. Md. Mizanur Rahman

5
 I

DEPUTY GENERAL MANAGERS I

ASON3l DECEMBER 2OO1

Mr. Abu Ahmed Zafor Iqbal Mr. Mofizul Haque Bhuiyan

Mr. A.S.M. Nurul Hoque Mr. Md. Sekander Ali
Mr. Mufti A.H. Badruddin Ahmed Mr. Md. Siddique Ali Munshi
Mr. Md. Abu Taher Mr. Arifur Rahman Khan
Mr. Syed Mostafizur Rahman Mr. Md. Abul Bashar Akond
Mr. Dewan Shamsul Islam Mr. Md. Abdul Jabbar
Mr- Mohammad Shahid Ullah Mr. Md. Mahabubur Rahman
Mr. Md. Moshiur Rahman Bhuiyan Mr. Md. Monir Uddin
Mr. Satya Narayan Chowdhury Mr. K.M. Sirajul Hoque
Mr. Shah Mohammad Foteh Ali Mr. Afzal Ahmed Khan
Mr. Abdus Sattar Khandkar Mrs. Shaheda Bagum
Mr. Md. Mukl esur Rahman Mr. K.M. Firozuz Zaman
Mr. A.F.M. Badrul Alam Mr. Sudhabindu Roy
Mr. Md. Abu Musa. Mr. Mohammad Matiur Rahman
Mr. M.A. Yousuf Khan Mr. Abdul Khaleque
Mr. Mesbah Uddin Ahmed Mr. A.K. Iftekhar Uddin Mahmood
Mr. Md. Arifur Rahman Khan Mr. Md. Tofazzal Hossain
Mr. Md. Shams Uddin Ahmed Mr. Md. Rezaul Karim
Mr. Md. Joynal Abedin Chowdhury Mr. Nikhil Krishna Saha
Mr. Mainul Islam Mr. Md. Abdul Haque Zinnah
Mr. Md. Safiqur Rahman Mr. Md. Altd Hussain Howlader
Mr. Md. Ruhul Amin Majumder Mrs. Fatema Sogra
Mr. Naresh Chandra Mondal Mr.Mohammad. Enamul Islam Khan
Mr. Md. Azir Uddin Mr. Shihabuddin Md. Shahjahan
Mr. Quari Omar Faruque Mr. Md. Abdul Qayyum Bhuyan
Mr. Abdul Latif Barabhuiya Mr. Md. Harun-or-Rashid Khandaker
Mr. Tapon Kumar Ghosh Mr. Mahe Alam
Mr. Md. Mahmudur Rahman Talukder Mr. Md. Tariqul Azam
Mr. Md. Faizuddin Mr. Dhana Ranjan Karmaker
Mr. Shariful Moslemin Khan Mr. Nawsher Ali Khandoker
Mr. Md. Golam Sarwar Mr. M.A Baten Khan
Mr. A.Z.M. Shahjahan Mr. Md. Khurshid Anwar
Mr. Md. Mofazzal Hossain Mr. Mohammad Harun al Rashid
Mr. Md. Shahjahan Chowdhury Mr. Md. Safkat Hossain
Mr. Md. Kamrul Islam Mr. Khondkar Musharraf Ali
Mr. G.M. Baqui Biilah Mr. Khandakar Abdus Salim
Mr- Kazi Faqurul Islam Mr. Md. Atiqur Rahman
Mr. Mushtaque Ahmed Mr. S.M. Khoda Boksha
Mr. Md. Abdul Mannan Mr. Md. Ali Hossain Khan
Mr. Pradip Kumar Dutta Mr. Munshi Khal equzzarnat
Mr. Md. Habibuliah Bahar Mr. Md. Abu Bakar
Mr. Kamal Uddin Ahmed Mr. Md. Keramat Ali Shikder
Mr. Md. Shafiullah Khan Mr. A.K.M. Ashraf Uddin Khan

6 I
 .=-

The Chairman of the Board of Directors, the Managing Director and two
Directors are seen signing the Balance Sheet in presence of other Members of
the Board and Senior Executives of the Bank.

7
Aunaill 'Report ,,'2,0

CONTENTS

Progress at a glance 9

Graphic Scene of Progress ............... 10

Global Economy ................ 13

Bangladesh Economy t1
Background and Main Objectives 15

The Bank's activities during 2001

Deposits and Advances l6

Rural Credit tl
Industrial Credit 18

Investment 19

Foreign Exchange Business & Budget 20

Operational Network 21

Personnel and Automation 22

Training and Board & Other Committee Meetings 24

Library 24

Acknowledgement 25

Auditor's Report 26

Balance Sheet 29

Profit and Loss Account 31

Cash FIow Statement 32

Statement of Changes in Equity -1-'

Notes to the Accounts 34

8
Annual Report 2001 I

PROGRESS AT A GLANCE
31 DECEMBER 2OO1

(Taka in Crore)

Year 200t 2000 t999 1998 t991

Total Income 1588.32 1487.17 1242.96 1109.44 983.65

Total Expenditure 1580.09 t473.95 1230.34 1099.25 970.44

Net Profit 8.23 13.22 12.62 10.19 t3.zt

Capital 327.22 321.22 327.22 327.22 327.22

Reserve Fund 243.40 213.60 203.60 193.88 r 86.63

Deposits 215 5.1.05 19738.06 16937.27 15170.65 13606.17

Advances t4199.32 13328.06 12356.29 9444.13 85,+5.l4

Total Foreign Ex.business 1353 l. 10 14345.tt2 11553.60 10089.18 8928.92

No. of Employees 25753 260/.6 26055 26518 26125

No. of Branches 1291 1293 1306 1311 13 13

Note: 1) I Crore = 10 Million

l0 Lac = I Million

2) Exchange Rate on 31-12-2001 31-12-2000 31-12-1999

US$ 1.00= Tk. s6.88 53.88 51.00

9
 :Ti
Ann ual'R.ep,or"t 2 0 0 :1 ')

GRAPHIC SCENE OF PROGRESS

25Ux)- Taka in crore

20000-

15000
I Total Deposits
10000 EI Total Advances

1997 1998 1999 2W 2001

Total Deposit and Total Advance

1600- Taka in crore

1400-

1200-

t000- Total lncome

800-
. Total Expenditure

$
I Net Profit
.100-

tlfi
1997 1998 1999 2000 2001

Total Income, Expenditure and Net Profit

Taka in crore
250

200

150

t00
I Reserve Fund

50

0
199'1 1998 1999 2000 2001

Reserve Fund

l0
.flrrual 'Rep'ort 2001

GRAPHIC SCENE OF PROGRESS

Taka In Crore Taka In Crore

21554.05 11t99.32

87093
68541

Sonali Bank's Deposit Sonali Bank's Advance

: Other Schedule Bank's Deposit Other Schedule Bank's Advance

Taka ln Crore Total Foreign Exchange Business

18000
't6000
14000
t-=- -----a
12000
't0000
a-"-
8000
6000
4000
2000
0
1997 1998 1999 2000 2001

11
Att tttt a.l..R e P o rt 2 0 0 I

GRAPHIC SCENE OF PROGRESS

Total No. ol Employees
E Statf
f oflicer 30000
20000

25000 I

16000
20000

12000
r 5000

8000 10000

5000
4000

0
0 1997 1998 1999 2000 2001
1997 1998 1999 2000 2001

I Rural Branch Tolal No. of Branches

I Urban Branch
1500
1000

1200
800

900
600

,+00 600

300
200

0
0
1997 1998 999 2000
't 2001
1997 1998 1999 2000 2001

1,2
 n fl a.al :,,R e.fi 'o rt 2001

Global Economy 2001 frt qqfft& qoo>

The pace of global economy marked a
moderate growth in the beginning of 2001
and worsened in late 2001 due to attack
on Sept I 1, 2001 at World Trade Center in
USA & other reasons. However,
Rt qeffiGrg toot qrq< ftfrs q:tet&
qffiE EC{\3 cfifT< )), ioo) E-Ikc{
f{d rl}qi 6rr{ qrq;:rq q<( qryr{i
the
st-ircq <drffi q .fi${ft E{ I

growth marked a slow down in the

qqtrfr+srr< rlh-tffi cilerql< frrl{
advanced economy, especially the United s1-< {-s-fia, {Br{t"l \B q-{'fi-{i E-{s
States, European & other deveioped cq-lc{rq< qdftfuro :ntfsR 'rffiE
countries in 2001 . The World Economy sr r <Iffi$ e-{fr< ct< ioo5 {H qffi R{
grew by 2.50Vo in 2001 as against 4.707o
{
l.C% {ooo Jrr{ EE S.1o% I
in 2000.

The economic down turn was mailly due qetrB$ Ir{'E T,F.I{{q s$nss
to:

. The rise in the price of crude oil.

a frq <lwlr< qqfrmfts cscq< Tsl
a Tightening of financial condition in 1frr
& Europe in the year 2000.
USA a tBoc.{ q{( tBrfi'r< looo {rl
a Delay in the economic recovery of qtff+q<qt<vqsr< r

Japan due to their intemal problem. qI,|Ir{{ qsjsftq qrqTl

a {r qlltr{
T{|vt-{ ntFm tk'c- firqRs str r

Even though the year was full of fie <{E trE qfuDr-e-rT{ q<( qfi[s
uncertainties and prospects for recovery qq]]sl< ef{f6ln Aq {<Q ftfrE, E-{ ftftn
looked bleak, determined action from
ffirfi c€fr{ T,l"\s q<( :r<FFrcr< I9 fr'ss.l
Central Banks and Governments of qfifu qt+i cetr+ Q.oo) n5a1 qffift<
different countries prevented from
fixlrfr''2-t qfuTK o<rs ;r5Frr q{ I
deepening of recession during 2001.

The economies of developing Countries E-dr-{SE fiH< qfts toor

er!fr-< EF
grew by 49o in 2001 as against 5.707o in {c{ il-s]{ 8.oo% {I looo qr+ &q
2000.
A .\o7o t

l3
 ,porr 2001

Bangladesh Economy 2001 <l(El6q.f edft& {oo)

Through Implementation of economrc
reform during fiscal year 2000-2001,
country's economy remained relatively
stable despite a lot of adverse external
situations like South East Asian crisis,
recenl global recession and various
domestic adversities including devastating
floods. GDP growth recorded 5.209o in
\flifwes qaM<, qfuqti eftrr<
qcfu{&F {($t, qglsftq qr{rlTq
K(crcFF TrTl qrqe satnG-+ tq'ffr
s1f66< {l{16:r cqfl_?r qcfC{&F q{t
qoo) {r{ fi,lFl{E Af\rfts aIIr{ r&Gf'l
efffr< {< \ooo-too) qd<W< qffi q{
c.\o% r

2000-2001.

The rate of inflation on point-to-point furc{d loo) .q "rc-TE E "iLTE Gfrro

basis was 1.56Vo in December 2001. Total {qmG qqr ).as% I cflB <etft )bbb-
Export increased to US$ 6467.00 million
{ooo EE QBqc Effd cqto.oo frfrit{
,4
in 2000-2001 from US$ 5720.00 in 1999-
{T iooo-ioo) q 1fr c,fcT hi&r{ce
2000. Total import payments during the
i$.fi Eqt{ u891.oo frfr{-cq r qr{fifu
fiscal year was US$ 9363 million, an
qfrqii fr5lE <qrd< tB.sc ufl3t t8oe
increase over US$ 8403 (ll.40Vo)
compared to 4.807o in the previous year. frfrs-{ c{rs Ifr ,qru QBerr E{k r.rgr)
frfisl scilq, ffr< q< )).8o% lt t'<S
<R1< E{ 8.vo%o t

The foreign exchange reserve stood at ?<mFrs {EI< Rsrl6r( Q& qoo: rr+<
US$ 1305.00 million in December 2001. frrc?r-< n$rarq tGec Effn )eoc.oo
frfr*rq r

t4
 Ann u a l,.tk-e,p,o r t 2001 ..\
:')

Background :
@e
Sonali Bank, the largest Nationalized mmfi il(s ffir'l< TqEn <ENE
Commercial Bank in Bangladesh, was <tfi&ro <rlr+ I t{t )b1\ {c{ (E{Br
established in 1972 under Presidential qE[,] f{, \e n(-q\9, )b1\ <CE qG6\o
Order no.26 of 1972. The Bank is fully R{ r <nieB itl(firq,t {{srrf<
't"teM]EA
owned by the government of the People's qT(flfr$mft{ |

Republic of Bangladesh.

Main Objectives :
{{Erqt c{ss

The main objective of the Bank is to q-{rfccl3t ER$rg rFFat er+Et <Irft( cfil
provide all types of Banking services at the (fire cqflR {o Ern.R r {*fira{ fifrX
door steps of the people of the nation. The erom ftql&-s € E-{'s{T{s a{-sls q{q
Bank also participates in various Social
frfu er+mffi s qGd'&< <16{1rq @
and Development programs and
(fi..Fq$aRqsril{trs I

implements policies and commitments of

the Govemment.

l5
 4ttttu'al ..R eparl 200 I

Bank's activities during-2OO1 sttf4{

<itSrs-< \oo ) {6{il

1.0 Deposit : ).o qNFIE :

Total Deposit of the Bank as on Gmq-<rrf, qoo) s1frc{ <Tt(r$< C{lE

31.12.2001 stood at Tk.2l554.05crore qrfl{cs-< qfr$q ]il&r'srq \)0.c.8.oc
which shows an increase of TK.1304.56 C$IEir-sl Tt frrc <s{ffi< (6c( )eo8.cs
crore over that of the preceding year. The ffiF EI-sl mft r qNtqs ffr< El< &E
rate of increase in deposit was 6.44Va.
s.88% I C{li qnFI.EiI qIg vqft qmns
Total deposit comprises demand deposit
TK. 487 4.80 and time deposit s ffisfft qFrf{cs-< "rR'qrq &-{ qalf6rq
Tk.16679.25. In terms of Govt, Public &
8E18.bo q<( )sslb.tc mE Dro r

Private Sector, the deposit are Tk. 1814.97 ,

q-<-{ft, ,rr{Bo € {ls Gfus ff
4343.35 & 15395.73 crore respectively. ft-sMq q-{fift cqE qmrqrE< {Rrt.t
{qtl6-r:l )h)8.b C, 8\e8e.ec q<(
)csbc.qs c$.ffi br:FI r

2.0 Advances : a..o qftq :

The Bank has continued its lending
operation in the productive and priority
sectors covering Agriculture Industry,
Trade and Commerce. Total Loans and
Advances of the Bank as on 31.12.2001
stood at Tk.l4l99.32 which is 6.00%
higher than that of the previous year. In
terms of Go\t, Public & Private Sector, the
total Loans & Advances are Tk.343.43,
1673.83 & 12182.06 respectively.
q <Q<€ Trl(F Tfr, trE, sEKl{ qzr(
<fqqirE Bq{!-d{rT € wlfi-sl-< "llgr{6{
1IqEl{ s.d@r EIq c{c"rIq r furqr<
'r:,
loo) EIfrnl <n(rs-{ 6fl8 <tq s qftcr<
qRrtq ftGrme )8,)hb.st mtB itot {t
frqs <s{cr< c6c4 9.oo% mft r r<-otft,
qrqfrs e qirEB qio &fr-{ ft-qsr{
c-{fifr mti (Iq € qfrcffi {RTtq qelr@({
989.8\r, )g1e.b,e, q<( )q)tsl.og rlft
ito r

Loans and advances in the preceding

frqs <qqr<-< cfli it"| e qftrq-{
year was Tk.13311.03.
{fr'ql{ :.e,.r):.o,e cqF EfO r

t6

I
 I

Break up of Bank's outstanding loans and advances as on 3l December, 2001 is shown below :
(Taka in Crore)
No Nature of Advances Outstanding
1 Agricultural /Rural Credit 2948.92
2 Industrial Credit 2824.95
3. General Advance 3898.42
4 Others 4527.03
Total 14199.32

&rft{ u:, qoo) \rlfrc{ rrt$€d $q s qfrH{ 8& {fE frfr-s fi|Efw fin cfilr{f Erqt:
1cofi Dr+m vrro)
ofr+q( {18 {A{.t
) tfr I'rft {q lb8v.bl
Q. l Frs $q iu{8.bc
cIfd"t !{.1 ebbu.8i
8l qfl{I 8Ct t.o9
ffiB )8 )bb.el

2.1 Agricultural /Rural Credit : r.)Tfr/1ft{tl:

Under this scheme, the Bank is playiag el8fil qsol{ "ifu q<rqfro rT{cr<
its pioneer role in developing the condition
q<'{ri E-$r{ <]l(F q{ft yfr-fi qIfi s'Cn
of the neglected rural people. With an aim
to augment agricultural output, create Tfrq "l[qi< EqlTq{ Ifr .lr{(
:fcE{ I ffir{-<
employment opportunities and generate fr1l ,srS{ s-{cnT&< sfi.qn-+< 1rfi'I
income of the rural people, Sonali Bank
1E< v<lcr Etcq<
qR fi< qmi camft
continued to extend credit facilities to all
sections of rural population under various <il(s f<Gd eFT< TR/ "rfr +q orfuq
Rural Credit Schemes, Programmes and q-{,T€ GBIrq r q ltcs \oo) {FI edts
Projects pertaining to agricultural and off-
farming activities. Total disbursement <11(s mE 8\e8b.)q c{,lE h tlq frs<q
position of Agri,/Rural Credit at the end of Sr<-Q I q r[F qooo CIE "lrfg ft-s<"f1s
2001 stood atTK.4649.17 crore. In 2000
total disbursement was Tk.4341.66 Crore.
c.?"13r
'ifi{Ft E{ 8e8).\b\b cffi BfO r el
Main areas covered under the scheme are 8Eq< eQrq E{Fr q{Fr "IEc{q <e'.Ej
Crop loan, Irrigation, Pond fishery, Shrimp lfct, frE mt (lct, el:[cr Is{t ffi, GG ur<,
culture, Rural housing, Farming, Off-
q{FrF,
frming, Agro-based industry, other Micro "rfrr TqIr, "rF{Er, Tfr Bfr-s fiE,
credits and special investment. q{rr{, T5 nlq q{(frrrls frfrr$t+{ I

t7
 Attttunl *.eport 2001
I

I
I
2.2 Industrial Credit : q.'1fiffi l{.1 :

While implementing Govt. Policies and 6EmFE FEtsr{< fiFrc c<TlAftG e

goals to accelerate industrial development
ffi <f€:il1-{ / wf6< qr51 cfia1ft
programme, Sonali Bank has sanctioned a
<]l.'+ EE c["rfift FiF fr(fiE
ffc"l< q-{.]'
total term loan of Tk.252.37 crore to
b\bfr -n{fn {{rCI ftF rllls loo) {.6{
establish new industries in the year of
2001 through its 96 designated branches.
mF lc.t.,gq cflfr tl-rt cq'fift stq qe<
Sanction and disbursement of loan to e<t <r r frfuX fia "ms F6 +"t o(1ff s
industrial sector under industrial credit frr.m +q s:f{fr< fl$r{ <fct E it-{ sr<Il$
scheme and special credit scheme are also {GrP I ltct {qft $e Frg g&$rr{ loot
continuing. Bank has thus created {(q qllt ))ctc. qn mr+< +faqqtrq<
opportunities for employment of 11525
Wlf{ !E qmp, {l CCitl s 'lc6 Eq"ftTCr-{
persons by sanctioning credits in 2001 and
{I(Ir:r 6qn-< eeft $Ig BCe?I[Tl'fi
this will substantially contribute to G.D.P
pE=rlrl?ttr{ I

also.

Overall Industrial Credit Position of the Bank as on 31 December 2001 :

(Taka in Crore)
Amount Amount
Outstanding
SI Nature of Loan No. of units sanctioned recoverd
as on
No up to up to
31.12.01
31.12.01 31.12.01
I Large & Medium 251 | r8s6.l8 229.85 137't.43

Z Small & Cottage 21206 512.12 2'19.17 894.99

3 W/Ctoindustries 1272 441.32 275.12 558,53

4 Total 22729 2870.22 781.71 28U.95

Grc{d.r:, \oo) "ds {.fi(rs-{ cq-{t ftfl 1|c.ln Fq :

lmBbromvrr+)
rqta-{s r,tfd
qfr'fl"t !fiqEl qI'R8B
@fr'+ ftg qrc.f< r<.I elsB c(<Tl
e5.5q.qoo) (rFrr)
e5.5q.,1oo)
i( ,lfs e).)q.loo)
16
)r Iqs €rRrrft a.c ) )ECs. )E ttb.Ea )sq).8e
ll qs s 1B-< Fta \)lo\9 0'1t.1t tlb.)1 Eb8 .bb
9t Frra ergrE& 1ur<-l )lqt 88).el a.lc.)i ccts.ce I

8t c{lt a.t1a.b ttlo.q\ qb8.)8 \b18.bc

 'i

3.0 Invcstment: .r. o frfrmluf

Besides sanctioning loans and advances. nlq \s qftn nqA-$<q sM€ <irT frBd
the Bank makes Investment in various q{mfiE frftEREm qdRfrcqt{ TTar
approved securities. Total amount of
Investment in Government, Public and
{f,slft, 'lI<F-s Lq<( Eltd cc?-r< \e:
Private-sector as on 3l December 2001 fuc{m too) \flfrr=l Tffi Rfom'r<
stood Tk. 3443.09 crore at the end of 2001 1'frfll &q e88e.ob cotB Etor !r t{tB
as against Tk.2909.33crore in the previous <R-r< tr{
\bob.es csIE BT,l r frFrc-qtut
year showing an increase 18.35Vo. The
fi< <t< )E.ec% r s{l{ ftfrcfic'f<
notable investment represents deployment
in Treasury Bills, Bonds, Shares and
{Eefr E[q Mfr-{, 6"1-sK, &c<q6R e
q;IiF I
others.

The sector-wise summary of the Bank's Investment as on 31.12,2001 in Govt., Public & Private
sector are shorvn belorv :

(Talia in Crore)

Sl No. Sectors 3t-12-200t 3t-t2-2000

a) Govemment 3182.84 4194.66

b) Public Sector 120.04 201.48

c) Private Sector 140.21 26.35

Total 3443.09 4442.49

&mq-d \r:, \oo) Elfrc{ lII(RFir o'rB frfimnqa ?tls frftT q'{'{f frrr cq{m qr{l :

(6slBBFil<q(rs)
ofr-+qr "llE
e)-)\-loo) 9)-)l-iooo
$) T{+TA e)bi.b8 8 )b8.gg
{) 'fFB-$ 5lo.08 Q.o).88

't) srts )8 o.l) t\b.94

cli \)88\).ob 888i.8b

19
 4nnual i'il.e,port 2O01
4.0 Foreign Exchange Business: s.offi{frfrm<lr{t:
The Bank with its 42 authorized {-<Irqfi tfr crre qnPi.FSaq s1fr
branches including 2 Wage Earner's q-{rflfi\5 {?lI q<r frrfE frfre cqr"l
Branches and 1968 foreign correspondents q<Rs :ruuf Mr+ emq"ne?c q<
and agents located in different countries of {I$[q <i(T C?FE €T$'R ?<IqFrs frfiIT
the world is dealing in all types of foreign
<I{qlq"E T{rq I
exchange business.

The total foreign exchange business of {il(rs3J too) rr{ cli krqfrT frFm
the Bank for the year 2001 was Tk. itsl
<i<qrR 'rRnri E{' )e,ce).qo co16 r

13531 .70 crore.

Comparative position of foreign exchange business for the year 2000 & 2001 are stated below :
(TaI<a in Crore.)

Sl No. Particulars 2001 2000

I Import Uc Opened 4,141.88 5,082.24

2 Export bills purchased & Negotiated 4,380.86 4,421.06

3 Inward Remittance (Including WES) 1,291.02 4.258.59

4. Outward Remittance (Including WES) 7 11.94 583.93

Total 13,531.70 14,345.82

tqffiFls frF{{ <l{{1r looo € loo ) rrq{ YT{l{Ts qTql fta ELE-.I Ffi qi{t :

(C{lfr DloK q(ro)

ofr+q( fi-a<q qoo) looo

o) I ceDt<q< co&t rgrno 8, ) 8 ).bb- (,obl.18
oLl qs("ntr frq{ eilircEqs q-s fr[{tfr'Csltrs 8,\)Eo.Ug 8,81).o\9
ogI ftemimfrrlt1srrel 8,qbq.oq 8,lct.cb
08 I
qtEtesMafrFq (emq) c) ).b8 Cb\9.b9

L.t tu )e,ce).10 )8,s8c-.bi

5.0 Budget 2001 c.o TtCQt loo) :

a) Capital Budget : Capital Income and s) {{fi <Irqt : too) c'ILq< lF{{
Capital Expenditure Budget for 2001 is qr{ s {rfi <Jlr <[qt {{rsr{ ))r.51
Tk. 118.17 Crore and Tk. 118.00 Crore
cfiEEI-sl s )5y.oo cffiEtot r

respectively.
rl) <lq=f <lrqt ; \oo) {IFtir d[w{ 9H
b) Revenue Budget: Revenue Income
and Revenue Expenses Budget for € <Iq"? <J-{ <lrq-E {afl@r{ )sc8.8g
2001 is Tk. 1674.46 Crore and Tk. coIE E]_+l € )ccc.ec mtB fiet r

1 555.36 Crore respectively.

a
I

6.0 0perational Nctn'ork : s.o <lfe'nil qRfi :

The Bank through its l29l branches - cqc-l w<RE ),tr/bE s<( fff-R t6 :{E
1289 domestic and 2overseas ( Kolkata r:rti :,lr r1i {q]3l El{Ir':r <lTi+ ,!<
and Siliguri in India) has been providing ,$q+rr< glrft( ffi<l Eql{ {<cq L <fl(ro{
banking services to its cuslomers. Out of
lhe totrl l29l branches. 868 are operating
).th)fr Tql3r {r{l bebfr "i.l?lT "rfi qsrq
in rural areas and 423 are in the urban €<( q<fi? 8\rE .i1q -|<rcr{ TFfcq
.iT"tI< qftc{
areas. Besides, 26booths under different "ign-dnl F{6a I .{EM€ frGF
branches are performing specialized f\efr Tal F&n Ar{ Rrfq tr<rq-< fl{l qqf{
functions at different locations. O6< {ITDE I

The overall functions of the branches
are supervised and monitored by
administrative offices. This administrative
structure comprises Head Office in
Dhaka, 7 General Manager's Offices-2 in
Dhaka and I each in Chittagong, Khulna,
Rajshahi, Barisal, Sylhet, 27 Principal
Offices and 35 Regional Offices all over
.lFfi c{6{< qlft-{ +Ffia;l sxfr E.lIcF-$
69 ot{recl< xltrrcq Eql<r{R s {Fi< o<t
ECE I qBlftqr.f q<Qo Cqfr qftc
ffi{q
€ scft fr&eTle qft-{ q<( cfr
na<rrqterrsrr alftqx (5terc rE, 5B{rq,
1Ii], <lcT.fta, <ktn rg ficq6 16 {c<)
q<( 5FFrq s{E FFilErcr< T{irc{ qI
q{Tqfr's rTiTcfl {68 r

the country.
A fully owned subsidiary company fiFIft ds qs fu{I{ @ co; frFntv
under the name of Sonali Trade and {Iq <I(m< cFm cl{Effi c$ffi
finance (UK) Ltd. operated in London up irsrn ({s-{fq1) c G-flT{, 1oo5 "ds
to 7 December, 2001.From 10 December FI'{@q qfrDlq-{T sGrcq I 6{l;rrft <iI(T
Sonali Bank (UK) Ltd. (a joint venture tBr+ frs (fitil-ft <fi(F € <I(EIm-t
company of Sonali Bank & Govt. of {{ot6f{ dq $fr$T{ft{) )o &r{m,
Bangladesh).is operating to channelise
loo) ccrs 8Bm1"F clcal qTlrq3[ sfi
banking activities covering the whole affrql.T< {,11ft1 6pfuq qkurr{l +c<
Europe. qFnq I

Besides, the Bank established a wholly sqMs qs6ft+ qd cer<q-orft Rcrc<

owned subsidiary company in New York, sM fir< Eqr <iT(T cqrqlft qsrEq
USA in the name of Sonali Exchange csP"trft t-{$r4rnlt-s (cqft) qns {fr{
Company Inc (SECI), to act as an {s<ld< CEt*r6 qffi
q-"|'f qcs
international money remitter through qlFIFFTfu cl<frfu$A mmft qtuh o-<t
which Bangladeshi citizens living in the Err(q {R ql$r{ Ts-fl@ <q?rpRE
USA are conveniently remitting money to <l(Ercqq {t'fRr€<l {q {qcqt <l(4l(E'r.f
Bangladesh. Three representative offices qd 6er{q TlKq I q{rEr(5] q<@ ccr{ffi
in the Middle East named "Sonali Bank <n(s q< mq-}, k$q q<( c(Ts qr{<
Representative office" Jeddah, and Riyadh qtft-flE q< Tr{rc q-<F cE
in KSA and another in Kuwait is engaged kceffi{dEE qFF{
Rmr.f <c-{Tc-<{ft
in motivating Bangladeshi expatriates <l(qlrhftcr-{r{ \5Rq--ir qd <n<ft( EIrr{r<
living there to remit money through {lqrcc cE-?rcGF s-l] EsqR € {{[{IFrg'r
Banking Channel. EhFT 4iTCE I
7.0 Personnel : 1.o q4qq '
The total number of manpower of the loo) \51frr{ <I(r€< cqlt
fu-rry< .r>,
Bank as on 31 December 2001 is 25753 of wfi[E-?t I({TI ftq icqcs q;{ I s$$
which 12728 are Ofllcers and 13025 are T'fs6 € ${fift{ {sfiT frq sersrq
members of staff.
)\lqu \e )uo16 q-q 1

8.0 Automation in Sonali Bank : y.oFP1ffifi:

Sonali Bank entered into the world of
office automation system in order to keep
pace with the rapid changing global market
economy and topave the way for
materializing different policies adopted in
interial banking activities. With a view to
actualizing these objectives, Sonali Bank
installed an IBM Mini (ES 9373 Model-
030) computer at its Head Office in
December 1989. Subsequently an IBM
RISC System (RS/6000) and an OS/2 LAN
System were added. Presently Inter Branch
reconciliation, Loan classification, Payroll
of Head Office employees, Treasury
function, maintenance of Provident fund
accounts of bank's staff and officers,
maintenance of Personal Profile of all
officials of the bank, preparation and
submission of CIB information to
Bangladesh Bank through diskette,
maintenance of data of Special recovery
cell, preparation of Foreign exchange rate
on daily basis, maintenance of Credit
information of big borrowers, Clearing
qarffis ft.{rrq e<( {ft<-6ftn
sfttlt< E{fu< w4 r(,t& c+c{ ral<
Erst )btsb qftq<fErq?< ficr riv+-<
qffi TFft{({ qFE rBM Mini (ES-9373
Model - 030) sftEik ql'lc{:I ${tfl
c4qIA {r}srs-< FftEbkHr efft;q rlF
cn I 'Er{frco q]r<I Fcr+ft TF1EA<
"fAG cwE RISC System (RS/ 6000),
os/2 LANt'r6ffi {l{tfl E{Fr srfqr
"1TAT q-gS.firfi fq;Ifqffi {:1q{,
$qclft-a-dq Fldqq, qofr NRAT Rfir{<
hnt ert&a{ qtF's ka<ft qqm, ofut /
$ffi( $Frc c{sq / sffi, {f,$tft
EfuflT<q, qTe sffit /
fuI<-|l?rl< Ee|.]s
offir Effi +lg RryF ci{sq,
orlrfir+{ {JtriqrrB tl}Tc{{q ft?q,
cIB qa sal]}ITqffi< {Ifiq <1(sl[q'f
<Il(rs c,s<.t, f"FllElR-wft 6{E q<B"tE
qfuqr<q, ?<mFfs 15t<ms frfim Ek
frr"i"t, <g {lct EFeTcq< 1tq {(.!.-ts
EqTffi CGT"1 q<( fr-fi1 q63.< 3;16.I{
q-yG FPiEBrfimq< qsq6 qfl qc{re I

house operation etc, have been brought

$fttfiaqc{< EF cetrc 6qffi <rirq<
under the purview of computerization. qfgs.lt?fi Gr{-[qq {:WG-?t qFE L{qs
Inter branch reconciliation, the largest
computerized job that had run and being
oFfur effi Tr'frqrq Tffibt< fur't
processed in Mini Computer at Head c-fi qtr sFrRE r {6k{ q{r rFfrql[n
Office has been shifted to Reconciliation cIiR fr.glcE qFF IBM RISC &fus LAN
Division in an IBM RISC based LAN ql"t{ sr< q fr{r+ a1ffi 1fiq-aa q-a
there. q[q. r
 I
I

In order to provide pronrpt disposal ol er<Ift <Iram-?-m< s?]frfu tffiFis {!]

home bound remittance facilities through a
legal way and to arrest money laundering,
Bangladeshi community working and
earning abroad were facilitated by an
electronic money transfer system
established through Sonali Exchange
Company Incorporated (SECI) with 6(Six)
booths in Brooklyn, Manhattan, Jackson
Heights, Astoria, Los Angeles and Atlanta
in the USA and 5 (Five) offices of Sonali
Bank (UK) Limited at London,
Manchester, Luton, Bradford and
Birmingham are remitting foreign currency
at some designated home branches such as
Wage Eamers' Corporate Branch, Dhaka,
Dargagate Corporate Branch, Sylhet,
Foreign Exchange Branch, Moulvibazar
and Wage Eamer's Branch, Chittagong for
direct credit to beneficiaries' account.
fifi qFE ?<< q"Gi Dllr{rq 6s cer<q
q<( Eflfi qglR( q&-6rl({< fi<tcd mntfr
Til...rfi< cf<frfrrfft Sfu6I{ Sonati
Exchange Company Incorporated (SECI)
EI$cq lrffi{ {-6ild< \bfr lal {cn'-
,.c3r
<"sfiq, ql{{ET{,,$Tctrfi$, qxTT{EtiE,
{c cfts?qr q<( qBqla S(s sFlEilrs<
fl$rq c{fttlFl:rflcfr (srct) DliFl{ c€Fq
F-fl Erq I ccmlfr {,1(T (?E c+l frfrrt-s
q< Is<MIq afi lel {an- qsB, {Jfd(D?K,
qil, <tucst6 q<( <tffiela celr$ {6$s;
+<tft <trqEq-ftffi 'fltIFI C{frlxr
Tf'{EALT< q[qror :r{l{fr EFFI{ €rrq
sm{ +rffi {"[, T<'ftfi! srftci
.ll?tl, Frct, Fr<;t LcqrEq ,t}{1,
dlq<Iq< ql( 6t{I{'q wrm qffi 4q
EyG fr'6ttr\3- s-crsB -fl"If< ET"i:F
ftlt<qlftq<fuft<q:fl6flqrq' I

Besides, under an agreement with Sonali t"r+e q-q6PPIn

Bank, May Bank, the largest bank in
1{w <tlrc May Bank
Malaysia, is sending remittance {-< nl{Ic:r <fns <lrffiq-+fl
information to our Wage Earner's <ir'ffi{ q+t "faftrs cqm qd (eFq
Corporate Branch, Dhaka through 6<-Cq I
Computer system.

Of late, to facilitate monitoring and to <il(T TYt Erq'{ (cirt Rqw+<.t, mcF
improve the quality of service of the bank fi EEin s FKfrE qfiiRs ,{< $$rc
as well as make proper decision at the fix-sq EBfi s c6r rq[r c6s E6rs
proper time a countrywide information eRrcFI 4ffiI cq,rfiff qTfr Eer q{R
network system (Wide Area Network) has Otertd (Wide Area Network) ql"l{ F{I
been established. So far 34 (thirty four) EC{rq I III{I sftti]-d]{{ <rs(]]rr*r
branches at home have been brought under q qtrs Tfiflfi e8fr *tHf< <I(ft(
qt\BEEr
automation and 37 (thiny seven) more +nfuq sftEA<ITT E{t <scq q<( qIr{l
branches are under automation process. e1fi "ll{].?r TftEtT<T-T{ r-q(q qI ffEl
Joining the SWIFT system the bank has {'{A <r< r ffiqrft <rtss frrgirs frf<lTft
been perlorming financial transaction in swIFT <r{{l< wsy'fu< {I$r{ qffiGs
the intemational arena and thus taken a
"r{Es qfsg{tlco
qtftr+ g-+ch-{ q-ithl
contemporary step. Besides preparation of ar< {c'fl"rc{tft <r{t erqq T6nq I qEIg
launching of Bank's own Web Site is 6qffi a1"gqE ltqt \ers< {l! hosting
finalized and under the process of hosting. q< Frq
wlg "r,irm <rrcq r

23
 Arrtrual .R^ePorl 200I

9.0 Training: b.o QFfm"I'

Sonali Bank Stafl College, Dhalia along ccr{ft <irr<t< clft+ <r(ft< ilfurq
with four Training Institutes /Center(s) at qiFq gr{< pffi s +ffiCr< C"fx|lis
Chittagong, Rajshahi, Khulna and Bogra qF-e-l <vlm< q6q s{l s$x e on<rR-+
have been conducting training programmes
6lf,4< T{iK fr{C{ C$q|ft T'I(T
CI{rnK
covering total Banking activities in order
Be <rqe, EFfl q<( ,{< qlsqft{ 8fr
to impart training to all categories of
qfi6q fitrtrED 6+E (DEsrE, ilqra.
officers and staff of Sonali Bank.
{E{ € TagT) efiT"l <Ifun {R6I4-{t
Fr{ qFrcq I

In the year 2001 as many as 2466 frfre <-<rq< eFisq a{.pfl .q<1
csT{,
officers and staff received training in ll0 c{fr{< frFm too) :rr{ +ffi ::ofr
batches of different courses, workshops <lto Eftsq 6Qff rfrurr+< nun
and seminars conducted by the aforesaid
t8w q-{ T'{-se1 s r'ft1ftr{ EFtsq Eqr{
training institutions.
T-flEBTTq I

10.0 Board and Other Committee Meetings : lo.o cEI6 q<< qqiFr eftF* c-sl :

To guide and assist the management 47
Board meetings were held during this year.
Besides, 19 meetings of the Executive
Cornmittee of the Board, 6 meetings of rhe
Appeal / Review committee of the Board,
I meeting of the Adminisfators of Sonali
Bank Employees Pension Fund and 2
meetings of the Administrators of Sonali
Bank Employees Provident Fund were
<jl(s <rrt'r{|{ fro Frcffql q<(
{smftq qqtq< s-ffi] e<qn aqE c{M
{sI q{68 q< r eEM, qfrflsqr {frTcq<
ftfrA sftE< )hfr cgt, qftd / frffi
ofifi-< vfr ;rv1, fimft ilio +:ffi
c'i-{.lq Flrs< eFms {-64-n )E {q .{<s.
ccFtft <ii+ sffi sfrIl s{fusR
q.fl:Ts{sa-d qfr{\,-t qsc<\tr{6sR{ I

held during this year.

11.0 Library : )).o Efql'tlr{Ro1 '

Sonali Bank Central Library situated on

cflTlft <rre s-<r{< q:fur q-{F
rhe top floor of its Head Office Building is mrqrft Tfl$ asisT.rr{ffi< TGrq EIF-{
replete with a huge collection of books on aqRq {FlF r+clft.dq< qs frsli {(€lq I

diverse and multifarious disciplines. The rr(ft\ ?<ffiFr$ +fiq],, <r<{"FI, fr{Tq
Library has also been enriched with the fturl, TR frET-{, Fxil{rl Ed<t<q,
most recently published books on Banking, qdftG, eftEtmqq Etcm{ qr<I <q,tFtt<
Foreign Exchange. Management, Accounting, qB l:$B erdFts q{$J Tir<FoE
Eq<
 :'ll
lr{tua l .,,il.e port 2001 I

Agriculture, Industrial Finance, ef{fl-{Ers IIq srfis r +T:r tfi.f

Economics, Computer and on many other
disciplines- Besides, reputed intemational
ffio frBE, rnvc, qtu Ets, fiBq
Et+, M g.]trq? q< qs fr{?B'tE
periodicals like Far Eastern Economic
Review, Times, Asia Week, News Week,
ql{frA Elgls {IgsFIt \3 irr+ftcs
Readers Digest, most widely circulated eroFro or.i< {-6fir$ qrrRs ?qfr-sT{q
Domestic vemacular and English Dailies .et s-{{rm FRfiE <tqt ccuq, { Eq1o
are available in the library to acquaint the tSore s <Rkr{< uqG e $qR{
m'.t
inquisitive readers with the current and
day-to-day affairs of home and outside
!ffi / EeR q*lr6 s{tftT{tE <t"t(ql
world. The Library was established with a
+ffi / Tf6lfffi-3 qs-e-t € Et-{{fr<
view to increasing knowledge and qrs, qt ar{ffi aefi <-<r <sEE ,4<(
efficiency of the officers and member of ${'a<E Er{-ft"rl1 "iltsrqB DIfut T<rq
the staff and has been rendering services to fi.{s'n cc-<l EEr{Tr<Emrq I

cater to the academic needs of those

having thirst for it.

12.0 Acknowledgement : !\.oTssqftO<:

Expresses deep gratitude first to the $l(cfil \oo) cr{ BcF"k$tB TIT-ql
Almighty for enabling the Bank to achieve qqta-{H{r r{qqcq*{rq g?T< fr'+i €r
remarkable progress in 2001. Also
Tsu-q effi{ Ffl EcEs. I qB1s
T-sE-sl
expresses gratitude to the Government of q'Frlm qcq
the People's Republic of Bangladesh, 'fcleiq1Ea <l(Elffirl c3mR,
qd lE"flq{ ,-c<( <t(4IrF{ <nf+-< q&
Ministry of Finance and Bangladesh Bank
qrr{ fi-+t cetm r-?FF]-c-< 1frfr <Ig{rrcn
for extending their help, support and
proper guidance to implement the policies c:rcrt{mft q'qrqfisr, T{afq L{<(

of the government. Extending {(af i{s frT firfiTl EqrFE q-{i r

compliments to all valued customers, qGrc-{ sffi qlq. r?[dr {+frs qR{,
correspondents at home and abroad and all CTft -ftmft a,6sqeirs+q.,fi( EsFFt(ftrq-?t
well-wishers for their cooperation, suppon q& T,lrr{-{ E"l< Eftq< qrql, vr<$ft\9l e
and confidence reposed in the Bank.
Finally, the Bank records its great
qTaf{ efrdrffi w{I r r{r"m q<p-q +ffi .g

ofitftm< fr"{sc uq € qrfr$Etcr Em<

appreciation and thanks to all its officials
qIRg "ilEr{< Ttqrc{ <]l(rs,{ qrfr-r q{'fG
for their untiring efforts and dedication in
achieving the overall progress of the Bank.
qe;rtl q<nrq d"n< q;Ii ql{IIE{ wsR-{
c${lr<F-{tE r

25
A n tt u s'l ;ft sp;o r t 20 0,1"

AUDITORS'REPORT
AND
FINANCIAL STATEMENTS
OF
SONALI BANK

For the year ended December 3 L,2OOI

Ahmad & Ahmad Basu Banerjee Nath & Co.

Chartered Accountants Chartered Accountants
BCIC Bhaban (3rd Floor) Ispahani Building (3rd Floor)
30-31 Dilkusha Com. Area 14-15 Motijheel Com. Area
Dhaka-1000 Dhaka-1000
Phone : 9564366, 9561289 Phone : 9560232, 9550333

26
 nnilal&eporl 2001 iln
E:)

AUDITORS'REPORT
TO
THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF
BANGLADESH

We have audited the accompanying Balance Sheet of Sonali Bank as of 3l December 2001 and
the related Profit and Loss Account and the Statement of Changes in Equity and Statement of
Cash Flows for the year then ended. The preparation of these Financial Statements is the
responsibility of the Bank's management. Our responsibility is to express an opinion on these
Financial Statements based on our audit.

We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). These
standards require that we plan and perform the audit to obtail reasonable assurance about
whether the Financial Statements are free of material misstatement. An audit includes,
examining on a test basis, evidence supporting the amounts and disclosures in the Financial
Statements. An audit also includes assessing the accounting principles and significant estimates
made by management, as well as evaluating the overall Financial Statement presentation. We
believe that our audit provides a reasonable basis for our opinion.

Subject to the contents and consequential effects not given in the financial statements of
annexed notes 7f, 10.1,14.3 and our separate Detailed Audit L,etter under the Companies Act
1994, the Bank Companies Act 1991 and the terms of our appointment letter issued by the
Ministry ofFinance, Banking Division, Monitoring Cel[-12 on 26 February 2002 in our opinion,
the Financial Statements prepared in accordance with Bangladesh Accounting Standards (BAS),
give a true and fair view of the state of the Bank's affairs as on 31 December 2001 and of the
result of its operations and its Cash Flows for the year then ended and comply with the Bank
Company Act 1991, the rules and regulation issued by the Bangladesh Bank, the Companies
Act,1994, and other applicable laws and regulations.

We also report that

t. we have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit and made due
verification thereof;

27
 I
Wt
\

ll. in our opinion, proper books of accounts as required by law have been kept by the Bank
so far as it appeared from our examination of those books and proper retums adequate for
the purpose of our audit have been received by the branches not visited by us;

the Bank's Balance Sheet and Profit and Loss Account dealt with by the report are in
agreement with the books of accounts and retumsl

the expenditure incurred were for the purpose of the Bank's business;

the financial position of the Bank at 3l December 2001 and the profit for the year then
ended subject to the notes annexed have been properly reflected in the Financial
Statements and the Financial Statements have been prepared in accordance with the
generally accepted accounting principles;

the Financial Statements have been drawn up in conformity with the Bank Company Act
1991 and in accordance with the rules and regulations issued by the Bangladesh Bank.

vu adequate provisions have not been made for advances and other assets which are, in our
opinion, doubtful of recovery, (Note:7f)

vl ll the Financial Statements conform to the prescribed standards set in the accounting
regulations issued by the Bangladesh Bant after consultation with the professional
accounting bodies of Bangladesh;

IX. the records and statements submitted by the branches have been properly maintained and
consolidated in the Financial Statements;

x the information and explanations required by us have been received and found
satisfactory;

requirements of section 35 ofBank Company Act 1991 were not complied with;

xii. no benami and doubtful bank accounts came to our notice in course of our audit

xiii. adequate capital of the bank, as required by law, has not been maintained (note 14.3)
during the year.

sdt- sdl-
Ahmad & Ahmad Basu Banerjee Nath & Co.
Chartered Accountanls Charlered Accountants

C
 M I :TI
:,
I
I

SONALI BANK
Balance Sheet as at 31 December 2001

Propeny and Assets Note 2001 2000

Taka Taka
Cash )
Cash in hand (including foreign cunency in hand) 2,458,883,969 t ,909,147 ,712.
Balance with Bangladesh Bank (including foreign cunencies) 20,613,236,481 11,003,674,026
23,072,120,450 12,912,821,738
Balance with other banks and hnancial institutions 4
In Bangladesh 1,150,000,000
Outside Bangladesh 6,779.518,095 8.667,426,t25
7,929,518,095 8,667,426,125
Money at call and short notice 5 3,670,000,000 4)72,886,000
Investment (At cost) 6 33,404,700,490 442U,934,709
Loans and Advances: 7
Loan,Cash credits,Overdraft etc 131,106,442,873 123.244.847.478
Bills discounted and purchased 8 10,886,805,736 10,035,806,277
141,993,248,609 133,280,653,755
Fixed assets including land, building, fumiture & fixtures 9 803,413,387 835,203,534
0ther assets l0 43.210.650.718 33,386.320,883
Total Assets 254,083,651,7 49 237,$80,246,7 44

Capital and Liabilities

Liabilities
Bonowing from other banks and agents ll 3,993,118,891 3,137,951,481
Deposit and other accounts t2
Cunent and contingency accounts etc. 12.2 97,775,973,796 93,306,912,573
Bills Payable 12.3 3.658.316.852 3,290,962,156
Savings bank deposits 66,386,353,530 58,8t9,478,347
Fixed deposits 47,719,886,650 47 ,07'1 ,632,87 |
215,540,530,828 202,494,985,947
Other liabilities l3 28,843,802,030 26,405,109,3t6
Total Liabilities 248,377,451,7 49 232,,038,046 J 44
CapitaVShareholders Equity
Paid-up Capital 14.2 3,272,200,000 3,272,200,000
Statutory reserve 15 2.200.000,000 2,136,000,000
Other reserves l6 234,000,000 234,000,000
Surylus profit and loss account Nil Nil
Total equity 5,706,200,000 5,642,200,O00
Total liabilities and equity 254,,083,651,7 49 237,680,246,7 M

29
 nnu"a{l{t.eporI 200I
I

Off Ilalance Sheet Items Note Note 2001 2000

Taka Taka
Contingent Liabilities t7
Acceptance and endorsement as per contm
Letters of guarantees 12,005,093,51 1 l 1.931.408.698
Letters of Credit 29.409,705,543 26.439.844,328
Bills for collection 6,696,802,208 5,953,027,706
Other contingent liabilities
Claims against the Bank not acknowledged as debt
48,171,60t,262 44,324,280,732

Other commitments
Liability on account of outstanding forward exchange contract
Total off Balance Sheet items 48,111,601262 44,3U,280,732

The accounting policies and other notes form an integral part of the Financial Statements.

sd/- sd- sd/- sd/-

Chairman Managing Director Director Director

sd/- sd/- sd/- sd/-

Deputy Managing Director General Manager Deputy General Manager Assistant General Manager

This is the Balance Sheet referred to in our report of even date

sdl- sd/-
Ahmad & Ahn ad Basu Banerjee Nath & Co.
I Chartered Accountants Chartered Accountants
Annual Rep ort 2001';

SONALI BANK
PROFIT AND LOSS ACCOTINT
FOR THE YEAR ENDED 3I DECEMBER 2OOI

Nofe 2001 2000

Taka Taka
lnteresl income 18 t0,558,512,372 9,794,693,9't I
Interest paid on deposits and borowings etc. 19 rt,958,973,342 10,724.433,050
Net int€Est income/(loss) (1,400,460,970) (929,739,079)
Investment Income 20 2,486,450,816 2,415,414,281
brokerage
Commission,exchange and 21 2,815,986,044 2,614,556,760
Otler operating income 22 22,467,856 47,100,835
Total Operating income 3 7 4 I ,332 7
Salaries and allowances 23 2,601,ttt,276 2,552,565,041
Rent,taxes,insurance lighting etc. 24 2t2,191,347 211,397 ,424
Law chuges 37,429,421 28,833,984
Postage,slamps,telegrams and telephone 25 7'7,068,832 72,887,190
Auditors' fees 800,000 500,000
Stationeryprinting,advertisement etc. 26 90,018,229 84,807,i56
Managing director/Chref Execudve's salaries and allowances 148,355 89.819
Dirertors' fers and allowances 369, 451,763
Repairs to Ba*'s propeny and depreciation Z7 '79,952,060 83,193,452
Other expenses 28 333,955,167 315,388,986
Total operating expenses 3,433,044,031 3,350,rr4,8r5
Prolit before pmvision against bad and doubtful debts and other
necesary provision. 491,399,715 797,217,982
Provision for aginst loals 300,000,000 630,000,000
Provision for investrnent 25,000,000
Otherprovision 109,065,940 10,000,000
Total provision 409,065,940 665,000,000
Pmlit beforr income taxes 82,333,775 132,217,982
Provision for taxation
Net pmlit after tax E2,333,775 132217,982
Appropriations
Smtutory reserve 64,000,000 100,000,000
General reserve
National Exeche4uer 10,000,000 25,000,000
Benovolent fund 8,333,775 7 ,217 ,982
82,3!3,775 132,217,982
Retained profit for the year _____ N!_ n-il
The accounting policies and other notes form an integalpart ofthe Financial Statements.

sd/- sd/- sd/- sd/-

Chairman Managing DiEctor Director Director

sd/- sdi- sd/- sd/-

Deputy Managing Director General Manager Deputy General Manager Assistant General Manager

This is the Proht and Loss Account refened to in our report of even date
sd/- sdt-
Ahnan A Ahnan Bo$ Ban.rjee Noth & Co.
Chan r.d Acco,.nu,lls Chtnercd Accounhntt

1
 ,tltugl;Rg,.fr ':.t

SONALI BANK
Cash Flow Statement
For the year ended 3l December 2001
Pnniculars 2001 2000
Taka Trka
Cash flows from op€rating activiries
In@rest and commission received ,422,2'70,U8 I r,081.845,000
lnterest paymenls 01.958.973.342) ( 10.724.433,050)
Receipts from other operating acrivides | ,5',7 4,696,224 t,174,506,566
Carh paid to employecs (2.60r,259.63r ) (2.552,654.860)
Cash paid to supplicrs (123,608.96s) (l14,256.718)
Paid for other activities (644,435.66r ) 16r4,0s3,004)
Op€ratinS profil before changes in operating assets and liabilities Nole-A (1,e3rJll327) (r,549,046,066)
lncrerse/(decrease) in opemting asseB (9.824.329.835) 846,6t3,569
Treasury bills
Lrans and advances (8,?12,594,855) (9;1t7.t0/;755J
Olher short term assets 73?,908,030 7 t3.7 r6,359
lncrease.(dearcase) in operadng Iiabi:ities 2,011,293,00t (8,328,228.949)
Dcposits 13.045,544,880 29,641,50s,617
Nct crsh from opcrating activities beforc income tar l{.673.,190- 106 I

lncome ux paid
Ncl cash from operatiog activilies (4,673,490,r06) 1r,6r2,t55,775
Cash flows from investing activiliesl
Dividend rcleived 5,969.243 3,t75,555
Interest received 2,480,481 ,514 2,412.238,126
Purchasc of securities (600,983,?50) (t 49 ,O22,t98)
fus€ts, cshblishment and machinary purchased (3r.949.626) (20.956.596)
Net cash from investing activities 1,853517,44r 1,645,435,487
Cash flol,s from financing activities:
lncrcasd(decrcasc) in long term borowings 855,167.411 1.733,241,082
Net increase in cash aguivale (1.964,805.2s?) t4.99).532,344
Opening ca$ and cash equivalent 41. 143,393,991 29 75r 861
Closing cash and cash equivalent Note-B 42,778.588,740 ____-llill!2tf2q
Note-A: Opera ng pmfit bcfore chsnges of operating assets and liabilitle6:
Prolit before tar 82,333,775 t)2,211,982
Lcss:
lnv€stmcnt income 2,486,450,8l6 2,415 .4 | 4,281
lncome from salcs of assets, establishhant aod machinary
Bad loan recovery
2,486.450,8r6 2,415,41;1,281
Add: (2,40.{, 7.041) (2,283,t96?99)
Depreciation 63.739,113 69.150.233
Prolisio for bad and doublful debb ard wrinen off 300,000,000 630,000,000
Provision for diminishing laluc ofinveslment 25,000,000
Provision for other rssets 109,065.94r 10.000.m0
472,805,114 73,1,150,233
(1.931J11.317) (1,549,0.16,066)
Not€-B: Clositrg cash and cash equivale
Cash and shon rarm fund: 2.458.883.969 | 9W,t 47 ,'7 12
C6sh in hand 20,613.236,481 l r.003,674,026
Balance with Bangladesh BanI 3,670,000,000 4,372,886,000
Money at call ad shon notice ! 5,95 I ,o4o,ooo 27.365,505,500
Covr. Eeasury bills 85,428,290 92.180.760
Prize Bonds in hand 42,174,584,7 40 44,743,391,998

sd/- sd/- sd,i- sd/-

Chairman Managin8 Dtector Director Director

sd/- sd/- sd/- sd/-

Dcpory Managing Director General Manager Deputy General Manager Assistant General Manager

sdt- sdt'
Bas,, Bane.je. Noth & Co,
Chartered Accountunts Cha ercd Accolnl4nts
 {tntt.fll &eport 2001 t

SONALI BANK
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2001

Profit
Paid up Statutory General
Particulars and Total
capital reserYe reserve
loss a/c

Balance at 0l Jaruary 2001 3,272,200,000 2,r36,000,000 234,000,000 5,642,200,000

Changes in accounting policy

Restated balance

SurpluJdeficit on rcvaluation of properties

Surplus/deficit on rcvaluatioo of investmelts

Cunency translation difference

Net gains and losses not recognized in the

income statement

Net profit for the period 64,000,000 64,000.000

Dividenrls
Balance at 3l December 2001 3"272,200,000 2100,000,000 2v,000,000 5,706,200,000

sd/- sd/- sd/- sdi

Chairman Managing Dhector Dtector Director

sd/- sd/- sil- sd/-

Deputy Managing Director General Manager Deputy General Manager Assistant General Manager

sd/- sd/-
Ahmad & Ahmad Basu Banerjee Nalh & Co.
Charlered Accountants Chartercd Accountants

33
 ,t rr niil I iRe p o rt .2.0 0 1

SONALI BANK

Notes to the Accounts

For the year ended 31 December 2001

l. Background of the bank

a) Status

Sonali Bank is a Nationalized Commercial Bank established by The Bangladesh Bank

(Nationalization) Order 1972 @.O. no.26 of 1972) and is tully owned by the Govemment of the
Peoples' Republic of Bangladesh. The Bank had l29l branches including two overseas branch
as on 31 December 2001. A subsidiary company named Sonali Exchange Co. Inc. was
incorporated on 4 April 1994 under the laws of the State of New York, Department of State,
licensed on 17 October 1994 by the State of New York Banking Department and commenced
operation as an International Money Transmitter from 12 December 1994. On 4 November
1998, Sonali Bank notified the Financial Services Authority of the UK of its intention to
voluntarily surrender the banking license for Sonali Bank UK Branch with effect from 30 June
1999. Sonali UK Branch had extinguished all their retail deposits by 30 June 1999 and is not
permined to accept any further deposits from that date. But a representative ofEce was there till
7 December 2001. A subsidiary money remitting company under the name and style of Sonali
Trade and Finance (U.K) Limited has been incorporated under the U.K. Companies Act 1958
from 15 June 1999. The company has been allowed to start its function as a Bank from 7
December 2001 (the operational activities was started on 10 December 2001) by the Financial
Services Authority of U.K. changing its name as Sonali Bank (U.K) Ltd. 57Vo shxe capital of
the newly renamed company is held by the Government of Peoples' Republic of Bangladesh and
Sonali Bank holds the remainfirg 49Vo.

b) Nature of business

The Principal activities of the bank are to provide all kinds of commercial banking services to
its customers. It also performs Govemment Treasury functions as an agent of the Bangladesh
Bank where there is no Bangladesh Bank. The export and import trade of Bangladesh with
Socialisr Countries under various barter agreements are mainly handled by the Bank.

34

I
!
 L{
nflilal;Report 2001 J
I

2' Significant accounting poticies

a) Basis of accounting

These accounts are prepared according to the Bank Company Act 1991 on going concem basis
under historical cost convention on the generally accepted accounting principles. Wherever
appropriate, the policies are explained in the succeeding notes.

b) Investment and income thereon

i) Investments are stated at cost.

ii) Income on investments other than shares in Joint Stock Companies have been accounted
for on accrual basis.

iii) Dividend income on shares in Joint Stock Companies have been accounted for in the year
of receipt of such dividend.

c) Advances

D Interest is calculated on classified loans and advances as per Bangladesh Bank circulars
and such interest is not taken into Profit and Loss Account. This is kept in interest
suspense account.

ii) Interest is calculated on a daily product basis but charged quarterly. No interest is charged
on doubtful loans and advances from the date of filing money suits against the borrowers.

d) Provision for bad and doubtful debts

General and specific provisions against bad and doubtful debts arc made in the books of the
Bank's Head Office on the basis of information fumished by the branches. Full provision has not
been made in the accounts -See noteT f &g

e) Interest suspense and penal interest account

Interest suspense and penal interest, if any, calculated on classified advances is taken as income
in the year of receipt of such interest from the defaulting borrowers.
A.nnua I Repott 2001
{

f) Fixed assets and depreciation

i) Fixed asses are stated at historical cost less accumulated depreciation.

ii) Depreciation is charged at the following rates per annum on a reducing balance method on
dl fixed assets other than motor vehicles and computer, which are depreciated on straight-
line method at the rate of 20Eo per annum.

Building 2.57a
Furniture and fixture 10.0%
Electrical installations 20.lVo
Typewriters and calculating machines 20.09o
Library books O7 .09o

iiD Depreciation at the applicable rates is charged proportionately on additions made during
the year from the month of their acquisition excepting that no depreciation is charged
thereon for the month if such assets are acquired in the second half of the month and on
assets retired during the year depreciation is charged for the period up to the end of the
month of their retirement excepting that no depreciation is charged on assets retired in the
frst half of the month.

iv) Upon retirement of items of fixed assets the net book values are eliminated from the
accounts and the resulting gains or losses, if any, arc transferred to profit and loss account.

v) Repairs and maintenance costs are charged to Profit and Loss Account when incurred.

vi) Profit/Loss of Overseas Branches of the Bank

a) Profit/loss of the bank's overseas branches has not been reflected in this profit and
loss account. As a matter of policy such operational results are shown in the profit
and loss account only after receipt of remittance of profit pending which, the losses or
profits are shown in the Balance Sheet under the head "Otler Assets or Other
Liabilities".

b) In consistent with the past practices the net balance of accumulated profit of Tk
24,341,062 (IRs 20,643,764) relating to Kolkata branch at 31 December 2001 are
included under other liabilities in these accounts.
 il t I

c) Provident fund, pension and death-cum-retirement ben€Iit scheme

Up to l2 September l98l the bank operated a provident fund and a pension fund into each
of which the bank contributed l07o of the basic salary of its eligible employees while the
employees contributed an equal amount to the provident fund only. As from 13 September
198I the Bank introduced a new scheme under which the employees' were given option to
withfuaw from old scheme and participate in this scheme in terms of which each
participating employee is required to contribute at the rate applicable to him between l7o
to 15Va of his basic salary depending on the level of his salary with no matching
contribution by the bank while l57o of the employees basic salary is contributed by the
bank Io the non-contributory pension fund. Payments out of these funds are made to the
members on their separation from bank's employment. The provident fund and Pension
Fund are being administered by two administrative committees each of which is consists
of 5 (five) members rcpresenting 3 (three) from Board of Directors, I (one) from offrcers
and another from members of the staff. The balance of pension fund is pardy invested in
approved securities and remaining balance being utilized by the bank without payment of
any interest thereon.

h) Benevolent fund

In each yeal the amount of the benevolent fund is apportioned from profit after
appropriation for Siatutory Reserve and National Exchequer as per decision of the Board
of Directors in its Board meetings.

i) Investment in shares to subsidiary company, Sonali Exchange Co. Inc. USA

a) Investment in shares is stated in these financial statements at book value.

b) Income on investment in shares to subsidiary company, Sonali Exchange Co. Inc
USA is being accounted for on income receipt basis.

j) Exchange rates

i) Assets and liabilities denominated in foreign currencies are translated into taka currency at
the approximate rates of exchange ruling at the year end other than those in pre-liberation
Pakistani currency which have been translated at Tk1=Pak Rupee 1.

ii) Transactions in foreign currencies are translated into taka currency at the rate of exchange
prevailing on the date of such transactions and resulting gains or losses are credited or
charged to profit and loss account.

k) Commission charged to customers on letters of credit and letters of guarantee are

credited to income at the time of effecting the transactions.

31
 '!
,, fi u a l'*.eport,tt? O'fl

3. Cash; Tk.23,008,821,968 200 r 2000

Taka Taka

a) Cash in hand

Local cunency 2,078,241,582 t,734,625,118

Foreign currencies 380,642,387 174,522,594
2,458,883,969 1,909,147,772
b) Balance with Bangladesh Bank

Local currency 16,893,265,125 9,879,161,790

Foreign currencies 3,719,971,356 I,124,5t2,236
20,613,236,481 11,,003,674,026
23,072,120,450 12,912,821,738

4. Balance with other banls and financial inistituta: Tk.7,929,518,095

In Bangladesh 1,150,000,000
Outside Bangladesh 6,779,s18,09s 8,66'7,426,125
7,929,518,095 8,667,426,125

a) Maturity grouping

Payable on demand 6,779,5t8,09s 8,667,426,t25

Payable within 3 months 1,150,000,000
Payable within 3 months to I year
Payable within 1 year to 5 years
Payable after 5 years
7,929,518,095 8,667,426,125
b) This is made up as follows:

Domestic Branches 6,649,434,169 8,193,803,873

Overseas Branches 130,083,926 473,622,252
6,779,s18,095 8,667,426,125

38
5. NIoney at call and short notice: Tk.3,670,000,000 2001 2000
Taka Taka

Details are shown below:

Domestic Branches:
South East Bank Ltd. 500,000,000 250,000,000
The Premier Bank Ltd. 70,000,000
Uttara Bank Ltd. 520,000,000
Muslim Commercial Bank Ltd. 50,000,000
Dhaka Bank Ltd. 450,000,000 200,000,000
Eastem Bank Ltd. 100,000,000 320,000,000
Mercantile Bank Ltd. 250,000,000
IFIC Bank Ltd. 140,000,000
Citi Bank N.A 180,000,000
Standard Chartered Grindlays Bank 1,150,000,000 2,000,000,000
Prime Bank Ltd. 290,000,000
CreditAgricol Indusuez 70,000,000
American Express Bank Ltd. 10,000,000
Albaraka Bank Ltd. 500,000,000
Vanic Bank Ltd. 20,000.000
NCC Bank Ltd. 200,000,000
IPDC of Bangladesh Ltd. 250,000,000
ICB 100,000,000
Dutch Bangla Bank Ltd. 50;000,000
Delta Brac Housing Ltd. 50,000,000
Bangladesh Krishi Bank 300,000,000
3,670,000,000 4,350,000,000
Overseas Branch
Kolkata Branch 22,886,000
3,670,000,000 4,372,886,000

6. Investment (at cost): Tk. 33,404,700,490

The above amount consists of the followings:

Government Securities (Note 6.1) 32,621,914,390 43,926,183,560

Others (Note 6.2) 782,786,100 298,r51,149
33,404,700,490 44,2U,934,709
 Annual Report 2001

6.1 Governnrent Securities: Tk. 32,621,914.390 2001 2000

Taka Taka

Treasury Bills 15,951,040,000 27.365.505.500

Special Treasury Bond 15,2t2,3t4,000 15,030,731,000
Loan to the Govt. of Bangladesh 200,000,000 200,000,000
Debentures 1,173,132,t00 1,238,366,300
Prize Bond 85.428,290 92,180,760
32,62t,914,390 43,926,783,560

6.2 Others Tk. 782,786,100

Domestic Branches:
Shares 149,4tt,3'7 5 130,91 1,375
Sonali Bank U. K. Ltd. 319,249,320
Debenture 129,955,500 132,640,500
Ansar VDP Bank 120,000,000
Securities of Foreign Govt. 2,058,211 2,058,21 l
720,674,406 265,610,086
Overseas Branch:
Kolkata Branch 62,111,694 32,541,063
782,786,100 298,1s1,149

7, Loans and advances: Tk. 131,106,442,873

a) Maturity grouping of loans and advances including bills L

discounted and purchased:

Payable on demand 16,299,487 5,663,470,303
Payable on maturity less than 3 months 1,039,869,046 2,597.658,286
Payable on maturity more than 3 months but less than I year 60,36ts72,906 34,700,066.526
Payable on maturity more than I year but less than 5 years 21,076,152,956 30,770,596,575
Payable on maturity more than 5 years 48,593,299,986 49,397,438,167
Overseas Branches 18,848,492 1t5,6t9,621
131,106,442,,87 3 123,244,849,,478

40

8..
 Att tt u il'l:{l s P o r t "2 0 0 1

I b) Loans and advances including bills discounted and 2001 2000

purchased classified into the follot'ing broad categories Taka Taka
In Bangladesh
Loans tlt ,449,46-7 ,198 100,953,760,510
Cash credit t4,874,694,615 14,613,07 t,63r
Overdrafts 8,763,432,568 7,562,395,716
131,087,594,38r 123.,129,227,857
Outside Bangladesh
Loans 4,636,607 43,590,182
Cash credit 5,084,589 379,227
Overdrafts 9,12'1,296 7 t,650,212
18,848,492 115,6t9,62t
131,106,442,873 123,U4,847,478

c) An analysis of signilicant concentration of loans and

advances including bills discounted and purchased

Advances to directors and others

Advances to Managing director
Advances to other executives and ofhcers of the bank
Advances to customers t02,049,342,679 96,948,333,8s3
Industrial advances 29,038,251,702 26,180,894,004
131,087,594,381 123.129.227,857
Overseas Branches 18,848,492 115,6t9,621
131,106442,87 3 123,U4,847,478
 ,ttt,uilI +Report 2001 ..\
I

d) Loans and advances including bills discounted and purchased 2001 2000
classilied as per Bangladesh Bank's circulars Taka Taka

Domestic Branches
Unclassified 87,518,113,266 81,627,184,688
Sub-standard 4,521,528,O00 3,017,032,000
Doubtful 4,604,054,000 4,60'7 ,634,000
Bad and loss 15,273,524,000 43,881,859,000
t4t,917,219,266 133,133.709,688
Overseas Bralches 76,029,343 146,911,067
141,993,U8,609 133,2E0,653,755

e) Particulars ofloans and advances

i) Debts considered good in rcspect ofwhich the banl is fully secured 76,583,670,103 63,605,202,635

ii) Debts considered good for which the bank holds no other security
than the debtors personal security 8.484;7'72.490 8.286.859.511

iii ) Debts considered good secured by 6e p€rsonal liabil.ities of one or

more panies in addition to the p€nonal security of the debtor 5,587,590;734 5,202,407,806

iv ) Debts considered doubtful or bad not provided for 19,313,030,22t 24.500.542,77t

109,969,063,548 101,595,012,723

v ) Debts due by directors or executives or officers of the bank or any

of them taken severally orjointly with any other persons 4,879,213,258 4,35'1,468,192

vi ) Debts due by companies or firms in which the directors of the bank

are iflterested as directoB, partners or managing agents or in the
case of private companies, as memben

vii ) Maximum total amount of advances including temporary advance

made at any time during tle year to directors or executives or
managen or oflicers of lhe bank or any of them taken severally
orjointly with any other persons 7,807,826,322 6,950,811,885

viii ) Maximum amount of advances including temporary advances made

at any time during tho year to the companies or firms in which the
directon of the bank are interested as directors, pannen,
marlaging agents or in case of private companies as memben

ix ) Due from other banking companies 597,000

x ) Classified loans on which interest is not credited to income 5,944,102,971 43,881,859,000

42
 ,rflaal tReport 2001

0 Against the total required provision ofTk.28,641.8 million as per Bangladesh Bank BRPD
Circular No. 16 an amount of Tk. 9,4'71.24 million have been provided in the accounts
leaving a shortfall ofTk. 19,170.56 million.

8. Bills discounted and purchased: Tk. 10,886,805,736 2001 2000

Taka Taka

Payable in Bangladesh
Paymenr against documents (PAD/Bill of Exchange) 4 ,334 ,565 ,307 3,61t,7 t7 ,127
Inland bills purchased 742,250,373 747,854,397
5,076,815.680 4.359.s7t,524
Payable outside Bangladesh
a) Domestic Branches
Foreign bills purchased/negotiated-clean (FDTC) 2,800,016 4,540,612
Foreign bills purchased/negotiated (Docu) 5,750,009,190 5,640,369,694
5,752,809,206 s,644,9t0,306
b) Overseas Branch
Foreign drafts/travellers cheque purchased 123,133 67 t,070
Foreign bills purchased/negotiated 57,057,717 30,653,317
57,180,850 31,324,447
10,886.805,736 10,886,805,736

43
 flnufil RePort'20O1::

9 Fixed assets including land, building, furniture & fixtures: Tk.803,413,387

2001 2000
Taka Taka
Cost as on I January 2001 t,647,M8,482 896,728,593
Addition during the year 189,037,604 49 872 136
1,836,486,086 946,600,729
Less: DisposaVadjustment during the year 2001 158,679.683 22,142,7 t4
1,677,806,403 9U,,458,015
kss: Accumulated depreciation at 3l December 2001 874,393,016 451,U6,1',78
803,413,387 472,811,837

10. Other assets: Tk. 43210,650,7f8

Investment in shares to Sonali Exchange Co. Inc. USA 23,799,t00 23,199,t00

Long term loan to subsidiary company (SECI) 20,202,500 20,202,500
Stationery and stamps in hand 136,657,030 131,514,390
Advance rent 38,515,694 42;',|06,754
Interest, commission and exchange receivable 3,33t,410,237 3,483,833j22
heliminary, formation, organisation, renovation, development and
prepaid expenses 4,463,372 2,823,904
Net balance with National Bank of Pakistan 270,848,939 270,848,939
Net balance with Bank of Bahawalpur Ltd. 433,586 433,586
Net Balance with Premier Bank Ltd. 2.285.312 2,285,312
Branch adjustment-Inter Branch Transaction Account 16,095,373,3'78 12,675,022,554
Suspense account 5,879,546,124 5,560,738.556
Others 17 ,387,073,020 11,172,t11,766
Overseas branches ( Kolkata & Siliguri branches) 20,042,426
43,210,650,718 33,386,320,883

10.1 Short provision on other assels: Tk.g,2U,879.,866

lncome receivable (adjusting account) 228,666,9',78

Suspense account 5,349,776,930
Draft payable ex-advice (private) 894,778,024
Net balance due from:
National Bank of Pakistan 210,848,939
Bank of Bahawalpur Limited 433,586
Premier Bank Limited 2,285,312
Protesred bills 1'74,279,657
Agricultural loan- I 99 I 2,219,639.932
BRDB interest exemption account 759.049.723
Branch reconstuction accou[t 50,195
Interest exemPtion 315,841
Demonetized notes adjustment account 2,066,863
Required provision 9,902,191,980
[rss: Provision made up to 31 December 2001 677,312,114
Short provision 9,2U,879,866
 t'q,i
I
Annaal:'*.e.port 2001 :')
I

11. Borrowing from other banks, agents etc. Tk. 3,993,118,891 2001 2000
Taka Taka
This is made up as follows:

a) In Bangladesh
Bangladesh Bank demand loan 113,32t,476 125,830,730
113,321,476 12s,830,730
Outside Bangladesh
Asian Clearing Union 170,484,827 130,839,129
Foreign Banks Abroad 3,709,312,588 2,881,281,622
3,879J97,415 3,,012,120,7s1
3,993,118,891 3,137,95r,481

b) Loans-secured
Loans-unsecured
Bangladesh Bank demand loan 113,321,476 125,830,730
Asian Clearing Union 170,484,827 130,839,129
Foreign Banks Abroad 3,709,312,588 2,881,28r,622
3,993,118,891 3,137,951,48r

c) Payable on demand

Bangladesh Bank demand loan t13,321,476 125,830,730

Asian Clearing Union 170,484,827 130,839,129
Foreign Banks Abroad 3.709,312,588 2,881,281,622
3,993,118,891 3,137,951,481

12. Deposits and other accounts: Tk. 215,540,530,828

12.1 Deposits and other accounts: Tk. 215,540,530,828

a) Payable on demand
Deposit from banks 7,019,527,341 6,243.937,416
Other than banks 29,044,O10,099 29,88s,277,529
36,063,537,446 36,129,214,945
b) Other deposits
Deposit from banks 704,777,7 t8 1,096,826,908
Other than banks 178,772,215,664 r65,268,944,094
179,47 6,993,382 166,365,771,002
2r5,s40,530,828 202,494,985,947

45
 Annual RepoxtuZ00il I
I

12.2 Current and contingency accounts: Tk. 97,775,973,796 2001 2000

Taka Taka

Current account ?s 575 n5? 35 ,322,940 ,7 42

'6'
Haj deposits 28,022,634 35,868,963
Margin on Letter of Credit 201,869,165 306,761,590
Margin on Bank Guarantee 37,228,679 32,260,898
Short term deposit 13,605,209,148 13,866,459,645
Deposit pension scheme 10,115,497,016 10,618,018,679
Special deposit pension scheme 24,677,038,707 19,254,438,675
Cunent account (barter) 4,950,327,238 5.001.261,339
S.B. employees provident fund (General) 3,942,484,337 3,377,926,053
S.B. employees provident fund (Contribution) 696,423,594 594,M2,640
S.B. employees provident fund (General) interest 378,496
Fixed deposit interest 1,2s9,577,396 r, i 83,890,734
Call deposit 2t3,984,009 260,857,376
Foreign currency deposit 1,090,070,882 1,871 ,452,154
Foreign bank deposit 91,717,373 82,931,526
Unsold balance of N.F.C.D. 998,353,342 950,926,388
Foreign drafts/travellers cheque issued account 6,6s0,448 11,612,831
Credit balance of loan and advance 69,844,702 103,879,588
Overseas Branch 2t6,034,577 431,382,7 52
97,775,973,796 93,306,912,573

12.3 Bills payable: Tk.3,653,196,514

Draft payable 1,144,807,627 975,768,405

Govt. draft payable 28,253,707 31,369,7'10
Payment order 2,480,135,180 2,283,823,981
Overseas Branch 5,120,338
3,658,316,E52 3,290,962,156

I
I

46
 A'nnu,aI ,R.eport 2001

13, Other liabilities: Tk. 28,843.802,030 2001 2000

Taka Taka
Domestic Branch 9,068,441,8b4 9,839,423.088
Provision forclassified loans (Note l3.l) 402,800,000 352,800,000
Provision for un-classified loans (Note 13.2) 25,000,000 25,000.000
Provision against diminishing value of inveslment 601,163,531 492,097 ,590
Provision against other assets t1.994;720,638 tt,404,577,999
Interest suspense account (Note 13.3) 151,389,780 105,690,472
Exchange equalization 149,5',78 t49,57',t
Unclaimed dividend 23,0s2,217 563,091,960
Sonali Bank employees pension fund t82,3t7;791 808,369,596
Sonali Bank employees PDCR benefit fund 550,000,000
Sonali Bank employees pension fund investment 672,500,000
Sonali Bank employees PDCR benefit fund iovestment 53,289,830 46,213,490
Adjusting account cr Balance 467 ,340,615 580,426,086
Sundry deposit (H.O.) I,4'79 8,479
Special accounts surplus proceeds ofimport goods '187,657 787 ,657
Special accounts proceeds of import documents dr of F.C. (NBP) 99,021,800 99,021,800
Guamntee cover reserve 100 cmre agri. Cr.(ACP) l'78,997 t'78,99',7
Bangladesh Bank credit guarantee fee IdA crcdit-825 BD 4,881,123 4,881,123
BSCIC sewice charges IDA credit-825-BD 19j62,6t2 19,562,612
Agricultunl guamntee against IDA credit-724 BD 4,610,3',12 4,610,372
IDA service charges 765 BD 13,831,025 13,831,025
Govt. guarantee fund against IDA credit-765 BD 740.296 2,156,728
Bangladesh Bank demand loan interest 45,312 45,3t2
ASI-CIDA guarantee fund for MCDSF 307,2'70,736 244;142,850
Balance held with Sonali Bank l,ondor 1,620,646 2,853,594
Balance held with Sonali Bank Kolkata 98,&0,656 98,640,656
loan from IDA credit no, ?65 BD 28,643,6',72 28,027,549
Sirajganj Integreted Rural Development Fund 57,238,310 51,238,370
Operational account RD 9 26,931,592 26,931,592
Revolving fund against IDA credit-725 BD 256,353 256,353
Vocational Women's Credit Scheme Guarantee Fund 3;722,387,186 1,002,798,835
Foreign currency fund purchased account 1,834,493 1,834,493
Industrial credit guarantee claims received fund 3,023,409 3,023,409
Mother club womens credit guarantee fund 4,814,583 4,814,583
Interest reserve against Agriloan exemption l99l 8,787,760 8;78',7,760
Penal interest reserve against agri loan exemptiol l99l 3,585,618 3,585,618
Interest subsidy account 62,546,240 43,916,7 t5
BRDB TCCA crops loan Interest reserue r,u6,934 1,114,245
Forei gn correspondent charges 99 '795 '712 r00,606,561
Exporter foreign cuoency retention quota 28,7 ,257,477 25,992,097,146

Overseas Branch 1,602360 1,555,068

Provision for Bad and Doubtful debt of Kolkata Branch 51,478,599
Provision for Bad and Doubtful debt of UK Branches 249,605,672
Profit eamed by UK Branches 24,341,062 38,200,677
Profit eamed by kolkata Branch 2,488,631
Other Iiabilities of Siliguri Branch 18,367,063 2,633,518
Other liabilities of Kolkata Blanch t6,128,736
Other liabilities of UK Branches 25.294;154
Balance held with H.O. & Branches 29,388,539 24,851 ,324
Reserve fund of Kolkata Branch 3 356 898 ? )\1 R))
Deployment of foreign fund in Indian Business 79.544,553 413,012,170
2E,E43,E02,030 26,405,109,rrc

4'1
 nilua"l;*"ePort 2001 L

l3.l l\{ovement of provision for classified loans: Tk. 9,068,4,11,ti64 2001 2000
Taka Taka

Opening balance as on 1-l-2001 9,839,423,088 9,601,505,658

Less: Loans written off which fully provided 1,02r,673,596 262,082,570
8,817,749,492 9,339,423,088
Add: Recovery from the previous written off loans 692J72
8,818,441,864 9,339,423,088
Add: Special provision made during the year
8,818,441,864 9,339,423,088
Add: Recovery and provision no longer required
8,8r8/l41,864 9,339,423,088
Add: Net charge to profit & loss account 250,000,000 500,000,000
Closing balance as on 31-12-2001 9,068,441,864 9,839,423,088

13.2 Provision for un-classified loans: Tk. 402,800,000

Opening balance as on 1-l-2001 352,800,000 222,800,000

Add: Provision made during the year s0,000,000 130,000,000
Closing balance as on 3l-12-2001 402,800,000 352,800,000

13.3 Interest suspense account: Tk. 11,994,720,638

Opening balance as on I -l-2001 11,404,577,999 13,120,303,001

Add: Amount transferred during the year 2,206,205,',l t3 t,638,723,299
13,610,783,712 14,759,026300
Less: Amount of interest suspense recovered during the year 1,M6,002,681 1,341,334,360
12,564,781,031 13,417,69r,940
[rss: Amount of interest written off during the year 570,060,393 2,013,113,941
Closing balance as on 31-12-2001 11,994,720,638 t7,404,577,999
 Atnual;fr.,ep0t:t 200I

14. Capital

14.1 Authorized capital

The authorized capital of the bank was Tk. 10,000,000,000 at 3l December 2001

14.2 P aid up capital: Tk. 3 272,200,000

The paid up capital ofthe bank at 31 December 2001 was Tk. 3,272,200,000 Clhree hundred twenty
seven crore twenty two lacs) out of which taka 845.3 million (eighty four crore frfty three lacs) has
been received in cash during the year 1993 from the Govemment of Bangladesh to cover shortage of
Paid up Capital and Reserve Capital for that year. The entire amount of the paid up capital has been
subscribed by the Government of the Peoples' Republic ofBangladesh.

14.3 Capital adequacy ratio:

There remains an unadjusted capital shortfall as on 31 December 2001 of Tk.32,170.38 million on

the capital and reserve account of the Bank. Out of the above amount Tk. 3,718.80 million indicate
the shortfall of requhed capital as per section 13 (2) of the Bank Company Act 1991 and BRPD
circular no. 1 and 14 dated 8 January 1996 and 16 November 1996
respectively. Details are given below:

Particulars Taka
(in million)

a) Required capital @ 87o on the weighted risk assets 9,979.20

b) Available capital:
Core capital :

Paid up capital 3,2'72.20

Statutory resewes 2,200.00
General reserves 234.00
5,706.20
S upplementary capital:
General provision (l7o of unclassihed loans) 402.80
Assets revaluation reserve
Exchange equalization account 151.40
554.20
6,260.40

c) Required capital shortfall (a-b) 3,718.80

Annu alffi.e pot't .2001;;

15. Statulorl' reserve:Tk.2,200,000.000 2001 2000

Taka Taka
Balance as per last year 2,136,000,000 2,036,000,000
Addition during the year 64,000,000 100,000,000
2.200.000.000 2.136,000,000

16. Otherreserves:Tk.2,434,000,000

Balance as per last year 234,000,000 234,000,000

Addition during the year
234,000,000 234,000,000
2,434,000,000 2,370,000,000

17. Ofr Balance Sheet items:

Contingent liabilities

a) Claims against the bank which is not acknowledged as

debts

b) Acceptance and endorsement p9t contm

i) Money for which the bank has contingent liability in

respect of guarantees given by the bank favouring:
Directon
Govemment 11,185,568,500
Bank and financial institutions 81,682,77t
Othen 12.005.093,511 664.1s7,427
12,005,093J11 1183ry'08,698
ii) Irrevocable lener of credit 29,409,70s,543 26,439,,844,328
iii) Bills for collection 6,,696,E02,208 5,953,027,706
iv) Other contingent liabilities
48,11L,601,262 44,3U280,732
c) Other commitrnents:

i) Documentary credit & short term trade related

tmnsactions
ii) Forward assets purchased & forward deposits placed
iii) Undrawn notes issuance & revolving underwriting
iv) Undrawn formal cunent facilities, credit lines & other
commitments
Total OII Balance Sheet Items _48]JJ,60]262 44324,280,732
 flnual *.eport 2001 :rt
I
:a

18. Ixterest income: Tk, I0,558,512,372 2001 2000

Taka Taka
This is made up as follows:

Interest on loan and adYances t0 ,465 ,520 ,96'7 9;792,803,560

Interest on deposits to other Banks or Financial Institutions 92,991,405 I,890,411
10,558,512,372 9,794,693,971

19, Interest paid on deposit borrowings etc. Tk. 11,958,973,342

This is made up as follows:

Interest paid on deposit | |,94t ,7 55,841 10,688,219,t41

Interest paid on bonowings 17,217,501 36,213,909
11,958,973342 10,7U,433,050

20. Investment income: Tk.2,486,450,816

This is made up as follows:

lnterest on investment 7,480,481,574 2,4t2,238,726

Dividend income 5,969,242 3,175,555
2,486,450,,816 2,415,414,281

21. Commission, exchange and bmkerage: Tk.2,815,986,044

This is made up as follows

Commission 1,263,757,676 1,287,151,029

Exchange 1,552,228,368 1,321,405,731
2,815,986,0,14 2,614,556,760

22, Other operating income: Tk.22,467,856

This is made up as follows:

Profit repatriatei from overseas branches 22,466,219 41,216,470

Interest received from Subsidiary Co. SECI, NY, USA 1,730,101
Refund of penalty Irom Bangladesh Bank 4,154,265
Miscellaneous 1,637
22,467,856 47,100,836

51
 A tr tr tr a I Re p ort';2 0 0 1

23. Salary, allowances and bonus etc. Tk. 2,601,259,637 2001 2000
Taka Taka
This is made up as follows:

Salary and allowances t9ffi,255,940 1,864,664,076

Pension fund 182,2t4,208 t'78,221,535
hovident fund 16,123,9t9 t6,l'78,449
Medical attendance 82,49'1,118 65,165,593
Honorarium to staff 1,063,371 2,094,s95
Pay ofpolice guards 64,535,150 67,408,917
Staff welfare 1,144,493 738,886
Overtime t7,109,530 18,977,562
Bonus to staff 216967,547 219,115,428
Provision for exgratia 118,000,000 120,000,000
2,601,117,276 2,552,s6s,041

24. Rent, taxes, insurance, tighting etc. Tk, 212,191347

This is made up as follows

Rent 107.886.606 93,154.848

Taxes 13,593,995 16,555,082
Insurance 58,990,243 72,769,741
Lighting 31,720,s03 28,917,753
212,791,347 211,397,4U

25. Postage, stamp, telegram and telephone: 77,068,832

This is made up as follows:

Postage and telegram 32,351,589 28,637,05r

Stamp
Telephone M,'117,243 44,250,139
77,068,832 72,887,190

26. Stationary, printing, advertising etc. Tk. 90,018,229

This is made up as follows:

Stationary and printing 83,392,712 77 ,27'7,938

Advertisement 6.625,517 7,529,218
90,078,229 84,807,156

52
M

27. Repairs to Banks's property and depreciation: Tk,79,952,060 2001 2000

Thka Taka
This is made up as follows:

Repairs to Bank's property 16,212,287 14,043,2t8

Depreciation 63,739,773 69,150,234
79,952,060 83,193,452

28. Other expenses: Tk. 333,955,167

This is made up as follows:

Repairs to rented property 1,023,355 752,805

Books and news paper 8,495,752 I,061,027
Motor car running and maintenance 45.864.348 43,373,912
Entertainment 12,039,403 tt,70r,202
Sundries 97,234,264 88,476,032
Travelling expenses 32,676,127 29,865,784
Lunch subsidy 106,838,5214 103,736,874
Donation 3,222,410 3,389,878
Irveries to staff 13,211,431 t6,490,Mr
Sports 2,521,804
Petty charges 450,843
Cash transportation 10,22r,215 9,064,816
Business development 155,671 476,615
333,955,167 315,388,986
Annaal ,Report 2O01'

29. General

29.1 Wherever considered necessary figures of previous year have been rearranged for comparison
purposes.

29.2 Figures appearing in these accounts have been rounded off to the nearest taka.

sd/- sd- sd/ sd/-

Chairman Managing Director Director Direator

sd/- sil- s(U- sd/-

Deputy Managing Directo! General Manager Deputy General Manager Assistant General Manager

54