Internship Report on

“GENERAL BANKING ACTIVITIES ON HUMAN

RESOURCE PRACTICE IN SONALI BANK LIMITED,
MOHAKHALI BRANCH”

Submitted To
Jubairul Islam Shaown
Lecturer
BRAC BUSINESS SCHOOL
BRAC University

Submitted By
Name: Abid Mansur Haque
Department: BBS
ID: 16104073

Submission Date: 14th January, 2021

 Declaration

This is certified that this internship report on the topic of “General Banking Activities on
Human Resource Practice in Sonali Bank Limited, Mohakhali Branch” has been
prepared by Abid Mansur Haque, Id: 16104073, who is student of BRAC Business School,
BRAC University.

It is hereby declared that

1. The internship report submitted is Abid Mansur Haque (Id: 16104073) original work
while completing degree at BRAC University.
2. The report does not contain material previously published, except where this is
appropriately cited through full and accurate referencing.
3. The report does not contain material which has been accepted or submitted for any other
degree or diploma at a university.
4. I have acknowledged all main sources of help.

Student’s Full Name & Signature:

___________________________________________
Abid Mansur Haque
ID: 16104073

Supervisor’s Full Name & Signature:

___________________________________________
Jubairul Islam Shaown
Lecturer, BRAC Business School
BRAC University

ii
 Letter of Transmittal
14th January, 2021

To,
Jubairul Islam Shaown
Lecturer
BRAC Business School

Subject: Submission of internship report on “General Banking Activities on Human

Resource Practice in Sonali Bank Limited (Mohakhali Branch)”.

Dear Sir,

With due respect, I’m submitting my internship report on the subject titles as “General
Banking Activities on Human Resource practice in Sonali Bank Limited, Mohakhali
Branch”. This is my honor to submit this report of my 3 months long internship program in
Sonali Bank Limited within the Human Resource Department at Mohakhali Branch. This
report has been ready to satisfy the requirement of my internship program at my allotted
organization in Sonali Bank Limited. This has been a good learning experience for me within
the organization and preparing this report by outermost effort.

I have successfully achieved my research objective and have meet the goal that have been
outlined before doing the research. I am grateful for your guidance and suggestion that helped
me to prepare this report. If you wish to enquire about any side of this report, I would eagerly
try to meet your quires.

Sincerely Yours,

Abid Mansur Haque

ID: 16104073
BRAC Business of School, BRAC University

iii
Non-Disclosure Agreement

iv
 Acknowledgement

First and foremost I would like to state my sincere gratitude to Almighty Allah who enables
me to prepare this report successfully. Then I would like to thank all the staff and customer of
Sonali bank limited, Mohakhali Branch for cooperating with me by providing information
which helped me a lot in preparing this report.

I am also thankful to my respected supervisor Jubairul Islam Shaown, Lecturer, BRAC

Business School because without his guidelines and assistance I could not be able to
successfully complete this report.

At last I would specially express my gratefulness to the respected MD. Mazibur Rahman,
Assistant General Manager & Head of Branch of Sonali Bank Limited, Mohakhali Branch
who have been such a wonderful supervisor as well as MD. Shahin Iqbal, Senior Officer of
Sonali Bank Limited, Mohakhali Branch. Under their guidance I have learnt so many things
that will surely help in my future career.

v
 Executive Summary

The report tries to explore the general banking activities on human resource practice in Sonali
Bank Ltd. as a public organization. Sonali Bank Limited has established itself as leading and
quickest growing bank in Bangladesh. I even have given a brief description of Sonali Bank
Ltd general banking activities on human resource practices in details. This bank works
primarily for presidency. As the bank tries to maximize the worth which can be only possible
paying attention concerning general banking areas which includes deposit, loan and advance,
commission and thus earns additional profit.

I have also shown the overall human resource practice in details that has been observed
through working in HR departments were they believe choosing right individuals for right
position to run business with efficiency and effectively. Currently Sonali Bank Limited
recruits qualified candidates from all over Bangladesh. After that, I even have shown findings
which have been found through research work were it has been found that how the human
resource practices in the Sonali Bank Limited affects the job satisfaction of the employees. I
have recommended new product, acceptable training and also change that can increase the
satisfaction of the employees in conclusions. Finally my overall read if the bank controls and
takes correct steps to beat its limitations; it will become a heart -trusted bank of individuals.

Keywords: Limitation, Profitability, Efficiency, Public, General, Deposits, Employees,

Human Resource Management.

vi
 Table of Contents

Preparatory Part
Title page
Student Declaration II
Letter of Transmittal III
Non-Disclosure Agreement IV
Acknowledgement V
Executive Summary VI
Keywords VI
Table of Contents VII-IX
List of Tables X
List of Figure XI
Chapter 1: Overview of Internship
1.1 Student Information 02
1.2 Internship Information 02-03
1.2.1 Company Information 02
1.2.2 Internship Company Supervisor Information 02
1.2.3 Job Scope 03
1.3 Internship Outcome 03-04
1.3.1 Individual Contribution to Bank 03
1.3.2 Individual Benefits 04
1.3.3 Problem 04
1.3.4 Recommendations 04
Chapter 2:Organizational Overview
2.1 Introduction 06
2.1.1 Objective 07
2.1.2 Significance of the study 07
2.1.3 Research Question 08
2.1.4 Methodology 08
2.1.5 Limitation of Report 09
2.1.6 Ethical Consideration 09
2.2 Overview of Sonali Bank Limited 10-14

vii
 2.2.1 Mission and Vision 12
2.2.2 Organizational Structure of Sonali Bank Limited 13
2.2.3 Core Business of Sonali Bank Limited 14
2.3 Management Practice of Sonali Bank Limited 08-09
2.3.1Corporate Governance of Sonali Bank Limited 14
2.3.2 Size of Board of Director 15
2.3.3 Appointment of Board of Director 16
2.3.4 Responsibility of Board of Director 16
2.3.5 Board Committee 16
2.3.6 Audit Committee 17
2.3.7 Risk Management Committee 17
2.4 Marketing Practice of Sonali Bank Limited 18-19
2.5 Financial Performance of Sonali Bank Limited 19-27
2.6 Operation Management and Information System Practice in Sonali 28-29
Bank Limited
2.6.1 Operation Management 28
2.6.2 Information System Practice 29
2.7 Industry and Competitive Analysis of Sonali Bank Limited 29-36
2.7.1 Porters Five Forces of Sonali Bank Limited 29-30
2.7.2 External and Internal Factor Analysis of SBL 31-34
2.7.3 SWOT Analysis of Sonali Bank Limited 34-36
Chapter 3: General Banking Areas
3.1 Introduction of General Banking Area 38-53
3.1.1 Account Opening Section 39-41
3.1.2 Cash Section 41-42
3.1.3 Deposit Section 43
3.1.4 Bill and Clearing Section 43-44
3.1.5 Remittance Section 44
3.1.6 Loan and Advance Section 45-47
3.1.7 Foreign Exchange Section 48-53
Chapter 4: Human Resource Practice in Sonali Bank Limited
4.1 Function of HR Practice in Sonali Bank Limited 55-56
4.2 Achievement and Choice Procedure of Sonali Bank Limited 56-57

viii
 4.2.1 Factor touching achievement 56
4.2.2 Achievement Source and Method 57
4.3 Human Resource Planning 58-59
4.4 Performance Appraisal Method 59-62
4.4.1 Method of Performance Appraisal 61-62
4.4.2 Factor Distort Performance Appraisal 62
4.5 Training and Development 62-65
4.5.1 Training Method of Sonali Bank Limited 62-63
4.5.2 Training Analysis 63-64
4.5.3 Advantage of Sonali Bank Limited training institute 64-65
Chapter 5:Project Part
5.1 Introduction 67
5.1.1 Background of the problem 67
5.1.2 Problem Statement 67
5.1.3 Objective 67
5.2 Methodology 68-69
5.2.1 Research Approach 68
5.2.2 Research Philosophies 68
5.2.3 Types of Research 68
5.2.4 Research Instrument 68
5.2.5 Method of data collection 68
5.2.6 Sample Design 68-69
5.2.7 Research Limitation 69
5.3 Findings and Analysis 69
5.3.1 Hypothesis Test 69
5.3.2 Hypothesis Weight Measure 69
5.3.3 Hypothesis Development and Test 69
5.3.4 Hypothesis Testing 70
5.3.4 Interpretation and Graphical Representation 70-73
5.3.5 Findings 73
5.4 Summary and Conclusion 74
5.5 Recommendation 75
Reference 76

ix
 List of table

No Particular Page
1.1 Student Information 02
1.2 Company Details 02
1.3 Supervisor Details 02
2.1 Corporate information of Sonali Bank Limited 10
2.2 Other corporate information of Sonali Bank Limited 11
2.3 Core Business of Sonali Bank Limited 14
2.4 Board of directors 15
2.5 Member of Board Committee 16
2.6 Ratio Analysis 19
2.7 Return on Equity 20
2.8 Return on Asset 21
2.9 Expenditure to income ratio 22
2.10 Net Profit Margin 23
2.11 Asset Utilization 24
2.12 Net Operating Margin 25
2.13 Operating Efficiency 26
2.14 Equity Multiplier 27
2.15 Internal Factor Analysis 31-32
2.16 External Factor Analysis 33-34
2.17 SWOT Analysis 34
5.1 Hypothesis Weight Measure 69
5.2 Hypothesis Testing 70

x
 List of Figure

No Particular Page No
2.1 Organizational Structure 13
2.2 Corporate Governance Structure of Sonali Bank Limited 14
2.3 Return on Equity 20
2.4 Return on Asset 21
2.5 Expenditure to Income Ratio 22
2.6 Net Profit Margin 23
2.7 Asset Utilization 24
2.8 Net Operating Margin 25
2.9 Operating Efficiency 26
2.10 Equity Multiplier 27
4.1 Function in Human Resource Management 55
5.1 Feedback in H1 71
5.2 Feedback in H2 72
5.3 Feedback in H3 73

xi
 Chapter 1
Overview of the Internship

1
1.1 Student Information

I have done my internship program in Sonali Bank Limited, Mohakhali Branch. It had been a
great pleasure for me to work in this bank as I could learn new things that could help me in
future. All of the employee’s behavior were very helpful and kind toward me. Most of the
time I worked in the general banking and human resource department .After working here the
work experience that I have gained is totally different from the academic knowledge that I
have attained from my university.
Table 1.1: Student Information
Serial. No Criteria Details
01 Name Abid Mansur Haque
02 ID 16104073
03 Department BBS

1.2 Internship Information

1.2.1 Company Details

Table 1.2: Company Details

Company Name Sonali Bank Limited

Address 73 Mohakhali, Dhaka
Period 3 months
Division General Banking ,loan & Advance and HR Department
Branch Code 319
SWIFT Code BSONBDDH
No of Employee 40
Product SME finance, Micro credit, Deposit & Credit Scheme,

1.2.2 Internship Company Supervisor’s Information

Table 1.3: Bank Supervisor Details

Name : MD. Mazibur Rahman

Position : Assistant General Manager & Head of Branch.

2
1.2.3 Job Scope - Job Description/Duties/Responsibilities

During my internship period in Sonali Bank Limited, I had worked in general banking as well
as human resource division which is arranged in their Mohakhali Branch. Since I have been
there for 3 month, I have assisted in different ways which are the followings:

 Checked records of representative to guarantee they were up-to-date in HR

Department.
 Helped in record opening division.
 Wrote pin code in different saving & current as well as general checkbook.
 Checked balance of the A/C holder.
 Wrote Pay order.
 Assisted the customer to fulfill a form related to opening a A/C in Sonali Bank.
 Took order for cheque.
 Looked for the checkbook through their pin code.
 Kept record of the account holder who take check book in the registry book.
 Issued general cheque book.
 Issued Saving and current cheque book.
 Provided bank statement to some customer.
 Made entry of the cheque through its requisition page in the computer for this it
charge around 25 tk.

1.3 Internship Outcome

As an assistant I had some particular undertakings to do under various divisions of the bank
thus the following are the outcome that is obtained through the entire internship program:

1.3.1 Individual Contribution to Bank: As an intern I have tried my level best to contribute
even a bit to Sonali bank Limited by the following ways:

 Assisted employees in their work.

 Kept records of existing representative information effectively.
 Assisted the customer in performing general banking activities.

3
1.3.2 Individual Benefits: The overall experience was quiet beneficial to me because
through this I could have insight about the corporate world and learn so many new things that
has helped to develop new skills.

 Learned about the association, its experience, mission and vision.

 Learned about the items and administrations of Sonali Bank Limited.
 Learned about the human resource practices of Sonali Bank Limited.
 Observed the work culture in the bank.
 Established references.
 Get presented to genuine work insight.

1.3.3 Problems/Difficulties: Fortunately I didn’t face much difficulties in working as intern

in Sonali Bank Limited, Mohakhali Branch as they were very much helpful and kind towards
me. But somewhat it was quiet difficult to gather information due to confidential issue.

1.3.4 Recommendations

 The HR Department comprised of just 11 representatives which is lower contrasted

with generally association size so they can enlist more.
 There can be more degree for utilizing internees to complete transient activities
without going into lasting agreement.
 The branch is extremely congested. Thus more spacious place is required to operate
the banking activities.
 Their client support is acceptable yet can be more proficient.

4
Chapter 2: Organizational Overview

5
2.1 Introduction
After independence of the country Sonali Bank Limited emerged as the largest and leading
Nationalized Commercial Bank by proclamation of the Banks' Nationalization Order 1972.
As fully state owned institution, the bank had been discharging its nation-building
responsibilities by undertaking government entrusted different socio-economic schemes as
well as money market activities and 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. Sonali Bank Limited (SBL) is governed by a Board of Directors
consisted of 11 members. The Bank is headed by the CEO & Managing Director, who is a
well-known Banker as well as a reputed professional. The corporate head quarter of the
Sonali Bank Limited is located at Motijheel, Dhaka, Bangladesh. In Sonali Bank Limited
they have various department but among all the department I have focused on the general
banking activities on HR practices in Sonali Bank Limited that gave more light to the field of
human resource practice that has traveled an extended approach.

Human resource practices concerned in ending the human resource aspects of a management
position as well as human resource. That includes analysis, enlisting, selection, orientation,
compensation, performance appraisal, coaching and. Thus innovative product and human
resource practices area needed to be enforced in today’s banking activity. To create a happy,
productive and economical hands, for any bank proper policies and practices area is required
and effective banking activities can ensure happy and economical human resources and
customer which will help the bank to face the challenges of today’s changing setting.

6
2.1.1 Objectives of the Study: This analysis aims the achieving of the subsequent objectives:

Broad Objective:

The broad objective of this report is to evaluate the general banking activities on overall
human resource practices of Sonali Bank Limited (Mohakhali Branch).

Specific Objective

 To determine impact of human resource practices on employee’s satisfaction

in the Sonali Bank Limited, Mohakhali Branch.
 To spot the management perspective of Sonali Bank Limited in the adoption of the
variables that impact employees’ satisfaction.
 To investigate the limitation of Sonali Bank Limited, Mohakhali Branch in satisfying
the employee.
 To produce or generate some sound recommendations so that they can give better
performance to generate more profit.

2.1.2 Significance of the study

This study is taken into account how affectively the general banking activities on the human
resource practices get along with each other. It’ll facilitate them to spot the human resource
practices that ends up in higher worker satisfaction and better profit. Additionally it will be
helpful to match the HR practice impact on different structure performance aspects.The
following scientific and sensible considerations:

 Give a comprehensive survey of the study variables ideas.

 Highlight the character and importance of the human resource management practices
for the good thing about the long run operation of bank.
 Contribute to literature review related to the same topic.

7
2.1.3 Research Questions:

1. What are the measure Sonali Bank Limited, Mohakhali Branch should take to keep the
employees happy?

2. How human resource practice are ensured to satisfy the employees working in Sonali Bank
Limited, Mohakhali Branch?

3. What are limitation of Sonali Bank Limited, Mohakhali Branch in achieving employee
satisfaction?

4. What initiative the Sonali Bank Limited need to take to overcome this limitation?

2.1.4 Methodology:
There are two sources of data are used widely which are the followings:

Primary Source:

Data mainly collected from the statement of affairs of Sonali Bank Limited, Mohakhali
Branch from 2014 to 2018 as well as by having conversation with the employee of Sonali
Bank Limited (Mohakhali Branch).

Secondary Sources:

 Annual Report of Sonali Bank Limited.

 Numerous books, articles, compilations act. Relating to general banking functions.
 Different ‘Procedure Manual’, revealed by Sonali Bank Limited.

8
2.1.5 Limitation of the Report:
As I have been working as an intern in Sonali Bank Limited (Mohakhali Branch) at that time
I have gathered information and knowledge about the different human resource practice
related to general banking activities that is followed by Sonali Bank Limited but there are
some limitation of this report:
 Insufficient data is the main constraint of preparing the report
 Some data could not be collected for internal security of the bank
 Lack of experience
 This report does not show the overall position and financial condition of Sonali Bank
Limited

2.1.6 Ethical Considerations:

Ethical consideration considers all the social and environmental/ecological issues in normal
banking actions with an aim to keep the environment, resources and data related bank safe.
Like:
 All the data used to make this report has been reserved confidential.
 The data that has been used in this report has not been changed under any
circumstances.
 This report is prepared for the study purpose only.

9
2.2 Overview of Sonali Bank Limited
Table 2.1: Corporate information of Sonali Bank Limited

Name of the Company Sonali Bank Limited

Chairman Mr. Md. Ashraful Moqbul

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

Company Secretary Mr. Md. Ataur Rahman

Legal Status Public Limited Company

Genesis Emerged as Nationalized Commercial Bank in 1972,

following the Bangladesh Bank (Nationalization) Order
No. 1972 (PO No.26 of 1972)
Date of Incorporation 03 June, 2007

Date of Vendor's Agreement 15 November, 2007

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

Bangladesh
Authorized Capital Taka 6000.00 Crore

Paid –up Capital Taka 4130.00 Crore

Number of Employee 19609

Number of Branches 1226

Phone-PABX 9550426-31, 33, 34, 9552924

FAX 88-02-9561410, 9552007

SWIFT BSONBDDH

Website www.sonalibank.com.bd

E-mail [email protected]

10
 Table 2.2: Other Corporate information of Sonali Bank Limited

SL Particular Position as on Dec 17

1 Total number of Branches 1226

2 No of treasury Branches 603

3 No of Authorized dealers 45

4 No of Exchange Houses 65

5 No of Regional Offices 16

6 No of Principal Offices 46

7 No of GM offices 11

8 Total No of Employees 18301

a)No of officers 16925

b)No of Staff 1376

11
2.2.1 Mission & Vision of Sonali Bank Limited

 Our Vision :
Socially committed leading banking institution with global presence.

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

 Our Slogan :
Your trusted partner in innovative banking

12
2.2.2 Organization Structure of Sonali Bank Limited

Figure (Hierarchy) 2.1: Organization Structure of SBL

Boards of Director

CEO & Managing Director

Deputy Managing Director-1 Deputy Managing Director-2 Deputy Managing Director-3

General Managers at Head Office-6 General Manager Field GM office

Division-7

Deputy General Managers at Deputy General Manager at Field

Divisional Head of Head office Office

Assistant General Managers at Head Assistant General Managers at

office field office

Other executives SEO,SO,EO Other executives SEO,SO,EO

officers at head office officers at head office

Other Staff at Head Office

Other Staff at Head Office

13
2.2.3 Core Business of Sonali Bank Limited

Table 2.3: Core Business of Sonali Bank Limited

 Corporate  Trade Finance  Investment

Banking  Loan Syndication  Government Treasury
 Project Finance Function
 Foreign Exchange
 Money Market Operation
 SME Finance Dealing
 Rural and Micro credit
 Remittance  International Trade  Capital Market Operation
 Lease Finance  NGO-Linkage Loan  Special Small Loan
 Consumer Credit  Consumer Credit

Other Business/Services

 Treasury Bonds  A.T.M card  Ancillary Service

 Locker Service  Utility Bills Collection  Marchant Bank

2.3. Management Practice of Sonali Bank Limited

2.3.1 Corporate Governance of Sonali Bank Limited

Figure (Cycle) 2.2: Corporate Governance Structure

Effective
study on
BOD

Financial
Reporting Enterprise
Risk
Framework

Corporate
Governance

Review of
Controls &
Financial
Processes
Management

Performance
Review
Shareholder

14
Sonali Bank Limited enjoy the status of a corporate entity focus on ensuring proper
delegation, transparency and accountability in the organization through its corporate
governance policies and practices. The bank is structured and developed in according with
the accepted corporate governance practices and guideline of Bangladesh bank and the
Bangladesh Securities and Exchange Commission’s notifications in this regard, as a 100
percent state owned commercial bank it attaches utmost priority in ensuring as well defined
corporate governance standard.

2.3.2 Size of Board of Director of Sonali Bank Limited

The number of boards of member is within the range set by the bank Company Act-
1991(amended in 2013) includes provisions for prior approval of Bangladesh bank before the
appointment of new bank directors as well as dismissal, termination or removal of any
director from the post, director fit & proper criteria, Maximum number of director,
appointment of independent director etc.

Table 2.3: Board of director

Position Name

Chairman Mr. Md. Ashraful Moqbul

Mr. Md. Fazlul Haque
Mr. Md. Mahboob Hossain
Mrs. Sabera Aktari Jamal
Mr. Afzal Hossain
Mr. Muhammed Asadullah
Mr. A.K.M Kamrul Islam, FCA, FCS
Dr. Md. Nurul Alam Talukder
Mr. Kazi Tariqul Islam

Mr. Md. Obayed Ullah Al Masud

CEO &MD

15
2.3.3 Appointment of the Director

 Nominated person declaration

 Personal info of the nominated person
 Declaration for the confidentiality by the nominated person
 In case for independent director(those who can take actively part board meeting in
various issues as they can independent express their views and opinion but they have
no relation with bank management) a declaration from the directors and approval
letter from the Security & Exchange commission is required
 Update list of the director
 CIB report of the nominated person

2.3.4 Responsibilities of the Board of Director

 Work-planning & strategic management

 Credit and risk management
 Internal control management
 Human resource management & development
 Financial management
 Appointment of CEO and managing director
 Regulation responsibilities
 Formulate of board supporting committees

2.3.5 Board committee or Executive Committee

As per the BRPD circular No 11 of 27th October 2013 an executive committee has been
formed with the director for quick decision on urgent matter and execution of routine work in
between the board meeting. This executive committees perform in terms of references
determined by the board of director with BB guideline.

Table 2.4: Member of Board Committee

SL No Name Status with the Committee

01 Mr. Md Asraful Moqbul Chairman
02 mar Md Fazlul Haque Member
03 Mr. Md Mahboob Hossain Member
04 Mr. Kazi Tariqul Islam Member
05 Mr. Afzal Hossain Member
06 Mr. Md Obayed Ullah Al Masud Member

16
2.3.6 Audit Committee

As per Bangladesh Securities and exchange commission notification no

SEC/CMRRCD/2006-158/134/Admin/44 of 07 August 2012.SBL has an audit committee as
a sub-committee of the boards of director in which their job is to strictly observe the terms of
references issued by Bangladesh bank BRPD circular no 11 of 27 October 2013.The audit
committee assist the board of director in ensuring the internal control system and also to
certifies that financial statement reflect true view of the state of affairs of the company. It
issue guideline for ensuing a good monitoring system within the business.

2.3.7 Risk Management Committee

The committee is comprise of 5 member which are nominated by boards of director and for
3year.Company secretary of the bank I the secretary pf Bank Risk Management Committee
.As per the Bank Company act 1991(amended in 2013) and BRPD circular no 11 of 2013
SBL has formed the risk management committee approved by the board of directors
comprising 4 member. The role of risk management committee is given below

 Risk Identification and control Policy

 Analysis and approval of risk management policy
 Storage of data and reporting System
 Monitoring risk management policy

2.4 Marketing Practice of Sonali Bank Limited

The promoting strategy of Sonali Bank are the followings:

 Product: Sonali Bank continues to be giving standard and basic product. Its few
numbers of product that are simply not spare. Although Sonali Bank has only a few
product, they're having massive numbers of shoppers. To satisfy them Sonali Bank
should try and diversify its product.
 Pricing: The pricing structure of Sonali Bank-
 Chief Executive: For gap Associate in Nursing FDR with Sonali bank a client needs
to bear only a few price compared to different banks.
 Current Account: A client is needed TK.1000 to open an account in Sonali bank.
 Savings Account: The initial quantity needed to open a bank account in Sonali bank is
barely TK.500. That is extremely minute compared to different banks.

17
 Service Charge: service fee of personal banks could be a burden for a client. However
during this case, Sonali bank looks to be terribly client friendly. It doesn't impose any
service fee to the client.
 Interest Rate: For bank account charge per unit of Sonali bank is V-E Day. It offers
100 percent interest in Chief Executive. No interest is paid in current rate.
 Promotion: Promotion has become an important a part of trendy business. Sonali
bank isn't victimization advertising as a good tool. It provides leaflet, pamphlet to
customers to form the purchasers return to grasp concerning their product. It doesn't
emphasize on communication strategy as its competitors do.
 Place: Place is a very important issue as a result of an ideal place and position might
increase gain. Sonali bank has a competitive advantage during this case. Number of
branches of Sonali bank. Thus it will attract sizable amount of shoppers. Private
Banks are focusing solely in urban areas. However Sonali bank has its branch in
urban likewise as rural areas.
 Internal Marketing: The term internal promoting could be a bit unnoticed by Sonali
Bank. However to satisfy the external customers a bank should satisfy its internal
customers (employees). Sonali bank is simply not involved concerning internal
promoting .Interaction with staff is simply not satisfactory. Operating setting isn't
satisfactory. Another vital factor is that staff don't seem to be well trained. However
to sustain within the competitive market Sonali Bank should concentrate on internal
promoting. Though Sonali Bank is one in all those banks that was initial established
in East Pakistan. However a stunning factor is that the bank launched it promoting
DEPARTMENT in 1995. However in today’s competitive market promoting
activities became terribly crucial. So, Sonali bank should emphasize in its promoting
activities to sustain within the market.

18
2.5 Financial Performance of Sonali Bank Limited

Ratio Analysis of Sonali Bank Limited from 2013 to 2018

Table 2.6:Ratio Analysis

Ratio 2018 2017 2016 2015 2014 2013

Return on Asset 0.17% 0.58% 0.12% 0.05% 0.64% 0.40%
Return on Equity 3.20% 10.84% 2.22% 0.77% 10.07% 6.91%
Expenditure to Income 48.59% 62.03% 82.15% 62.16% 60.36% 80.08%
Net Operating Margin 1.60% 0.97% 0.35% 0.83% 0.92% 0.35%
Net Profit Margin 5.86% 22.54% 6.27% 2.39% 27.52% 22.71%
Asset Utilization 3.02% 2.56% 1.99% 2.20% 2.32% 1.78%
Equity Multiplier 18.68 18.78 17.82 14.55 15.75 17.09
Operating Efficiency 48.60% 62.03% 82.15% 62.16% 60.36% 80.08%

19
 Graphical Presentation

Table 2.7: Return on Equity

Return on Equity
2018 2017 2016 2015 2014 2013
Return on Equity 3.20% 10.84% 2.22% 0.77% 10.07% 6.91%

Figure 2.3: Return on Equity

Return on Equity

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2013 2014 2015 2016 2017 2018

[Footnote:Authors Work]

Interpretation: In 2017 and 2014 return on equity of Sonali Bank Limited was higher and it
was lowest in 2015 and even in 2018 it is not that high. So bank need to give more emphasis
on maximizing their shareholder wealth.

20
 Table 2.8: Return on Asset

Return on Asset
2018 2017 2016 2015 2014 2013
Return on Asset 0.17% 0.58% 0.12% 0.05% 0.64% 0.40%

Figure 2.4: Return on asset

Return on Asset

0.70%

0.60%

0.50%

0.40%

0.30%

0.20%

0.10%

0.00%
2013 2014 2015 2016 2017 2018

[Footnote:Authors Work]

Interpretation: The condition of their return on asset is quite similar to their return on
equity. ROA over 5% are mainly considered good but you can see that ROA of Sonali Bank
Limited of 2013 to 2018 was below than even 1 percent so they need focus more on their
return on asset.

21
 Table 2.9: Expenditure to income ratio

Expenditure to Income Ratio

2018 2017 2016 2015 2014 2013
Expenditure to Income 48.59% 62.03% 82.15% 62.16% 60.36% 80.08%

Figure 2.5: Expenditure to income ratio

Expenditure to Income Ratio

90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2013 2014 2015 2016 2017 2018

[Footnote: Authors work]

Interpretation: A lower expenditure to income ratio typically means the asset and liability is
being managed efficiently that less income is covering operational and maintenance costs or
expenses but if the ratio is high it indicate the bank is using more of its income to cover its
expense. In 2018 it’s lower than the previous year thus it indicate good condition.

22
 Table 2.10: Net Profit Margin

Net Profit Margin

2018 2017 2016 2015 2014 2013
Net Profit Margin 5.86% 22.54% 6.27% 2.39% 27.52% 22.71%

Figure 2.6: Net Profit Margin

Net Profit Margin

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2013 2014 2015 2016 2017 2018

[Footnote: Authors work]

Interpretation: It mainly measure that how much profit or income is generated from each
operating revenues. After 2013 the net profit margin raised a lot but after 2014 it declined so
much that in 2015 the net profit margin of Sonali Bank Limited is the lowest compare to
other year but the good thing is Sonali Bank Limited had started to improve their condition
again in 2017 but unfortunately it drop down again.

23
 Table 2.11: Asset Utilization

Asset Utilization
2018 2017 2016 2015 2014 2013
Asset Utilization 3.02% 2.56% 1.99% 2.20% 2.32% 1.78%

Figure 2.7: Asset Utilization

Asset Utilization

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
2013 2014 2015 2016 2017 2018

[Footnote: Authors work]

Interpretation: Asset utilization is that ratio which measure the efficiency with which the
bank uses its assets to generate income or revenue to reach a sufficient profitability level. In
2018 Sonali Bank Limited was highest in utilizing their asset but if you see percentage value
which is only around 3.02 % which was not satisfactory at all so I think Sonali Bank Limited
should utilize their asset more efficiently.

24
 Table 2.12: Net Operating Margin

Net Operating Margin

2018 2017 2016 2015 2014 2013
Net Operating Margin 1.60% 0.97% 0.35% 0.83% 0.92% 0.35%

Figure 2.8: Net Operating Margin

Net Operating Margin

1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2013 2014 2015 2016 2017 2018

[Footnote: Authors work]

Interpretation: Net operating margin is a good indicator of how well a bank is being
managed and how risky it is. Although from 2013 to 2018 the net operation margin has
increased which indicate that the bank is making some excess money from its ongoing
operations to pay for its variable costs as well as its fixed costs. But is it enough? I don’t
think so it’s because the Sonali Bank Limited in every year from 2013 to 2108 was having a
net operating margin ratio around 0.25 to 1.60 % which means very low amount of money
remains as left over after the operating expenses have been paid to cover the non-operating
expenses.

25
 Table 2.13: Operating Efficiency Ratio

Operating Efficiency Ratio

2018 2017 2016 2015 2014 2013
Operating Efficiency 48.60% 62.03% 82.15% 62.16% 60.36% 80.08%

Figure 2.9: Operating Efficiency Ratio

Operating Efficiency Ratio

90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2013 2014 2015 2016 2017 2018

[Footnote: Authors work]

Interpretation: As after 2013 there has been a decline but in 2016 it was the highest which
indicate in this year the operating efficiency was in good position in 2016 but Sonali Bank
Limited was unable maintain its operating efficiency level thus it again declined in 2017 and
more declined in 2018.

26
 Table 2.14: Equity Multiplier

Equity Multiplier
2018 2017 2016 2015 2014 2013
Equity Multiplier 18.68 18.78 17.82 14.55 15.75 17.10

Figure 2.10: Equity Multiplier

Equity Multiplier

20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2013 2014 2015 2016 2017 2018

[Footnote: Authors work]

Interpretation: Equity multiplier is a ratio used to measure a company's financial leverage.

From 2013 to the equity multiplier of Sonali Bank Limited started to rise and its highest in
2017 which indicate that bank has been using more debt than equity to finance its asset
purchases.

27
2.6. Operation Management and Information System Practices in Sonali
Bank Limited

2.6.1 Operation Management

The Bank through its 1196 branches, 1194 domestic and a couple of overseas (Kolkata and
Siliguri in India) are providing banking services to its customers. Out of total 1196 branches
702 square measure operative in rural areas and 491 within the urban areas. Besides, 25
booths underneath totally {different completely different} branches square measure playing
specialized functions at different locations. The general functions of the branches square
measure supervised and monitored by seventy administrative offices. This body structure
contains of Head workplace in Dhaka, seven General Managers' Offices - two in national
capital and that i every in urban center, Khulna, Rajshahi, Barisal and Sylhet, thirty Principal
Offices, and thirty two Regional Offices everywhere the country. From ten December 2002,
Sonali Bank (UK) Ltd. (a venture company of Sonali Bank of Govt. of Bangladesh) has been
operative to channelize banking activities covering the entire Europe. Besides, the Bank has
established a completely owned subsidiary company in the big apple, USA within the name
of Sonali Exchange Company Inc. to act as a global cash remitter through that Bangladeshi
voters living in USA square measure handily remitting cash to Bangladesh. There are 3
representative offices of Sonali Bank Limited which engaged in motivating Bangladeshi to
remit cash through banking channel.

2.6.2 Information System Practice of Sonali Bank Limited

The Bank has started computerizing its branches since 1989 victimization Stand Alone
Banking Application package. The Bank features a total of 1210 branches reception and
abroad together with 02(two) overseas branches at city and Siliguri in Asian nation. Besides
the Bank has joint ventures and subsidiaries/sister considerations within the name of (a)
Sonali Bank (IK) Ltd. in kingdom (b) Sonali Exchange Company INC. to act as a world
Money Transmitter in USA. And (c) Sonali polestar linear unit restricted, associate company
of the Bank entrusted in implementing CBS within the bank. In order to expedite the method
of cybernation within the Bank, to explore new business opportunities by using state of art
technology, to realize property business growth, survival during a competitive surroundings
and for implementation of CBS within the bank. Authority wishes to interact a CITO having
sound IT, Banking and business knowledge. The CITO’s role is to produce vision and
leadership for developing and implementing information technology initiative. The CITO
directs the design and implementation of enterprise IT system in support of business
operations so as to boost value effectiveness, service quality and business development. This
individual is accountable for all aspects of the organization’s new and existing info
technology and systems.

Sonali Bank Limited has been using Information technology extensive for its day to day
business operation. Like among there In-house Application package (A few are: -

 RMS+ (Remittance Management System)

 CRMS+ (Customer payment Management System)
 Sonali Sheba (e-service-tax and others)
 Govt. Transaction System
 Sanchay patra
 Pension paying System
 Chest Branch Currency Management System (CCMS)
 Sonali Banking Solutions (Branch Banking Application software)
 SBEFTN etc.

2.7. Industry and Competitive Analysis in Sonali Bank Limited

2.7.1 Porters Five Forces of Sonali Bank Limited

Threat of new entrants (Low): Sonali Bank Limited is the first bank to enter in the banking
industry in 1972 since then only 57 bank were established. So it can be assumed that in
average every year one bank might have been established. Thus threat of new entrants for
Sonali Bank Limited is low because entering in this industry for a new bank is quiet difficult
due to its capital requirement and regulatory framework.

Bargaining power of general customer (High): Bargaining power of customers is relatively

high in spite of being controlled by the government. It’s because switching costs are low for
customers to leave Sonali Bank Ltd and if the customer don’t get proper service they can
easily get banking services from other banks. And there are other Government banks such as:
Janata Bank, Agrani bank etc., as well as many private bank that compete for attracting
customer.

29
Threat of substitutes (High): In terms of threat of substitutes, the whole banking industry
faces an increasing number of substitutes like internal or financial market, mobile banking,
microcredit and NGO. Thus the activities that are done by Sonali Bank Limited can also be
performed more or less by this substitutes. That’s why the customer have more option to
perform their financial activities through informal financial system rather than only
depending on bank (financial formal system)which has increase the threat of substitutes for
Sonali Bank Limited

Bargaining power of depositors (High): Depositors can quickly use the internet to
determine which bank is offering the highest interest rate on their deposit, while consumers
do the opposite (lowest interest rate) in searching for loans. Therefore, price sensitivity in the
industry has increased with the number of substitutes avail for depositors. That’s why
bargaining of depositor of Sonali Bank Limited (SBL) is high.

Rivalry among Competitor (low): Although other bank are the direct competitors of Sonali
Bank Ltd that are striving for the same market share and depositors. In addition, the number
of local banks and private bank are also increasing .But being a government bank and bank of
the country the service that is provided Sonali Bank Limited cannot be provided by others.
Ex: For opening a student account in Sonali Bank Limited it will cost only 150 taka but in
other private commercial bank it will cost more .Then all the payment of other government
bank employee are done through Sonali Bank Limited for which they charge specific
commission. Even if Sonali bank limited has liquidity crisis then they can borrow fund from
Bangladesh bank. As the Sonali Bank limited is having competitive advantage that’s why
rivalry among the other bank is quiet low.

30
2.7.2 EFA and IFA of Sonali Bank Limited

Table 2.15: Internal Factor Analysis

Internal Factors Weighted

Weight Rating Comment
Score
Strength
Vast network
Expanded its
capability .080 3 .24
networking ability

Customer royalty has

Customer loyalty increased due to
.060 2 .12
providing better service
that before

Increase Positive public

Strong Brand Name .10 2 .2
Image

The bank charge is less

Cost advantage .070 4 .28
Compare to other bank

Government Support It has full support of

.080 4 .32
government
Before joining the
Skilled Employee & .050 3 .15 employee are trained for
Personnel several month
Weakness

High Debt Burden The bank need to

.120 4 .2
decrease their liability.
Work efficiency need to
.090 2 .18
Work Inefficiency be increased.
New and updated tech
Outdated technology .070 3 .21 should be introduced
and used.
.10 2 .48 Maximum of work is
31
 Manual Based done manually which
Should be avoided.

Strong management
.080 3 .24
Weak management’ need to be introduced.

High employee Employees should be

.10 4 .4
turnover appreciated.
Total Score 1.00 3.02

Footnote: author own calculation

Interpretation: I have list down the strength and weakness from the SWOTT analysis and
allocate weight in each item which is less than 1 because at the end it would add up to 1.From
all of its strength I have put highest weight in strong brand name which is 0.100 and for
government support and vast network capability its 0.080 because I think Sonali Bank
Limited has a very strong brand name as its been working for long period and there vast
networking capability as well as the full support they got from government also their strong
point. And from all of its weakness I have allocated the highest weight in high debt burden as
they are only focusing on collecting in deposits and borrowing fund rather than utilizing it
which increasing their cost thus its weight is .120. Rating has been assigned from 1 to 4
where 1 and 2 indicates weak strength or weakness, 3 indicates average strength or
weakness and 4 indicates strong strength and weakness. Thus I assume that Sonali Bank
Limited major strength is government support and cost advantage and their strong weakness
is high debt burden as well as manual based. The weighed score is 3.02 which is indicates an
average internal environment condition of the bank.

32
 Table 2.16: External Factor Analysis
External Factors Weighted Comments
Weight Rating
Score
Opportunities
Advance E-banking SBL should introduce
.10 3 .3
advance E-banking.
International Expansion Sonali Bank Limited
should increase their
.090 2 0.18
banking activities over
international boundaries.
Investment Sector SBL should invest their
.20 3 .6 deposit into profitable
investment sector.
New technology SBL should introduce new
.10 3 .3 technology in their
business.
Innovative new services If the bank can provide
more innovative service
.070 4 .028
then their number of
customer may increase.
Threats
Poor Governance The governance should be
.20 2 .4 made so strong that it will
reduce corruption.
Fierce Competition In Bangladesh more bank
are being established which
.090 3 .27
leads to intense
competition.
Change in preference They should ensure that
.150 2 .3 customer is happy with
their service so that the

33
 customer cannot switch to
other bank.
Total Score 1.00 2.63

Footnote: Author own calculation

Interpretation: I have list down the threats and opportunities from the SWOTT analysis and
allocate weight in each item which is less than 1 because at the end it would add up to 1.From
all of its opportunities I have put highest weight in investment sector because I think Sonali
Bank Limited has huge scope to earn more profit in this sector. And from all of its threat I
have allocated the highest weight in poor governance which his .200 because this factor can
highly affect the profitability and it can be the root of their inefficiency. Rating has been
assigned from 1 to 4 where 1 and 2 indicates low opportunities and threats, 3 indicates
medium opportunities & threat and 4 indicates high opportunities and threat .So as the
weighed score is 2.63 which indicates better than weak external environment condition of
Sonali Bank Limited.

2.7.3 SWOT Analysis of Sonali Bank Limited:

I have done SWOT Analysis on Sonali Bank Limited so that I can find out its internal
strength and weakness as well as its external opportunity and threat also so that I can get to
about the present condition of Sonali Bank Limited

Table 2.17: SWOTT Analysis

Strength Weakness
 Vast network capability  High debt burden
 Customer loyalty  Work inefficiency
 Strong Brand Name  Outdated technology
 Cost advantage  Manual Based
 Government Support  High Staff Turnover
 Skilled Employees & personnel
Opportunities Threat
 Advance E-Banking  Fierce Competition
 Innovative new services  Poor Governance
 Investment Sector  Change in preference
 New Technology
 International expansion

34
Strength

Vast Network Ability: Sonali Bank Limited offers multiple special services with its network
of 1211 branches throughout the country in addition to its online banking operations.

Customer Loyalty: As Sonali Bank Limited is controlled by the government so it has full
support of government for which the customer has strong belief upon them.

Strong Brand Name: Sonali Bank Limited was established in 1972 and still it has
maintained a positive image among the banking industry thus Sonali Bank Limited is itself a
brand name.

Cost Advantage: Comparing to other bank it charge less from the customer for performing
any kind of banking activities.

Government Support: As it is a government bank thus it get full support of government.

Skilled Personnel and employee: Sonali Bank Limited has maintained and believed in
trained personnel. Thus Sonali Bank Staff College is established were the employees and
staff are provided training and mentoring of each officials is done before joining in the bank.

Weakness:

High debt Burden: Sonali Bank Limited is having huge debt as it has maintaining huge
deposit as well it have borrowed fund from other bank.

Work Inefficiency The work that can be done in few day they take around several month to
complete it. Ex: If customer order for cheque maximum time they don’t get it at time.

Outdated Technology: Sonali bank limited lacks of using modern banking tools and
technology.

Manual based: Still now most of the document are done through manually as it doesn’t have
IT application even for keeping database of internee attendance there is no software that’s
why proper record is not available.

High Staff Turnover: As weak management is prevailing for which the staff don’t get
proper appreciation and financial reword for their work due to this they are demotivated and
thus leave the job as they don’t see any growth in their career. Thus in 2017 there was 18301
employees but in September -2018 the total number of employee is 17829.

35
Opportunities:

Advance E-Banking: They should introduce advance E- banking service for performing
their banking activities thus it will reduce their burden as well as save time.

Innovative New Service :If they can provide new innovative service like when customer
cheque that they have ordered is available they will get a message .Thus the customer don’t
have to come every day as well as this will attract more customer.

Investment Sector: Rather than keeping huge amount of deposits within themselves if they
invest it more in small profitable small enterprise and exporting sector it could easily earn
huge profit.

New Technology: In this modern age different updated and high quality tech should be
introduced in their banking activities instead of using same old machinery. If they can utilize
this technological industry properly work load will be reduced a lot.

International Expansion: Yes I do agree that they have a vast network in Bangladesh but I
don’t think it’s enough. They should also focus on international expansion through which
they can get international recognition.

Threat

Fierce Competition: Already the other government bank like Janata, Agrani bank etc. was
giving a tough competition and again there is several number of private bank that is doing
their utmost to grab their customer. For this reason they might lose customer

Poor Governance: There is prevailing corruption in the system for which bank has faces
huge loss in earlier years. At the time of providing loan there is a lack of proper inspection
for which they have suffer huge loan losses.

Change in preference: If there is change in preference of customer of Sonali Bank Limited

then they may suffer loss. Right now the customer may be happy of Sonali Bank Limited
services but after some time they may go to another bank for better service.

36
 Chapter 3
General Banking Activities

37
3.1 Introduction of General Banking Activities

General banking is that the aspect wherever banking supply completely different alternatives
to the purchasers to deposit and remit their cash. To encourage the purchasers, bank
offers completely different choices ahead of their purchasers. Most of those choices are pretty
much similar between the banks, however the client services and facilities might not be a
similar. Each branch of each bank should maintain the final Banking department. It takes care
of heap of vital banking activities principally assembling the deposit from customers. General
Banking department is generally expected to maximize the amount of shoppers. It’s the
introductory department of the Bank to its customers. Sonali bank, principal branch has
all the specified sections of General Banking Activities.

 Accounts gap Section

 Cash Section
 Deposit Section
 Bills and Clearing Section
 Remittance Section
 Accounts Section
 Loan and Advance Section
 Foreign Exchange Section

38
3.1.1Accounts Opening Section
Account Opening is that the entrance for purchasers to enter into group action with the
bank. It’s the muse of banker-customer relationship. Some of most popular accounts that is
opened by the client through this department are the followings:

Table 3.1: Account Opening Section

 Current account is associate degree account wherever the account

holders will build various transactions in an operating day.
Current Account  There's no group action on the amount of deposit.
 Withdrawals from this account at intervals convenience.
 Generally, accounting is opened for businessmen and trades for
straightforward group action.
 From bank account the account holder will deposit cash such a
large amount of times the holder needs.
Savings account  However the holder can’t withdraw cash additional than twice
 Additionally the holder can't withdraw cash over twenty.
 STD account is were cash is unbroken for a really short time.
Short Term  A notice is required previous for withdrawal of cash.
Time Deposit  Sonali Bank offers short CD to its valued customers.
account  Short deposit is that the deposit wherever the interest is paid on
monthly basis.
 There are deposits that are created with the bank for a hard and
fast amount of laid out in advance.
 Bank doesn't maintain money reserves against this money deposit
Fixed Deposit thus the bank offers higher rate of interest on such deposits.
Receipts  The rate of interest varies in accordance with the terms of the
required time.
 If any holder needs to draw cash before expire of your time,
he/she isn't given the entitled rate of interest.

39
Requirements of opening an account: There are some measure that is required to open an
account. These are the followings:

1. Proprietorship Firm: There is account gap kind for ownership firm provided by Sonali
Bank. For this account, a client should have to be compelled to submit the subsequent papers
with the form:

 Introduction of the account.

 Two images of the signatories’ duty authenticated by the introducer.
 Copy of trade license.
 Seal of concern.

2. Partnership Firm: There is account gap kind for partnership firm provided by Sonali
Bank. Introduction for running an account is given during this kind.

 Enclose Documents for partnership account:

 Introduction of the account.
 Two images of the signatories’ duty authenticated by the introducer.
 Partnership letter duty signed by all partners.
 Partnership Deed duty certified by notary.
 Copy of Registration (if any).
 Seal of the priority.
 Update Trade License.

3. Limited Company: The bank invariably takes precautions for opening this kind of
accounts. Many documents submitted by the shoppers ought to be checked fastidiously by
bank to be wrongfully in safe position. Enclosed Document for restricted Co. Account:

 Introduction of the account.

 Two images of the signatories’ duty authenticated by the introducer.
 Signature and seal of the shopper.
 Trade license.
 Certified copy of note and articles of association.
 Certificate of incorporation.
 Broad resolution for gap account duty certified by the chairman/ director.
 List of administrators together with designation and specimen signature.

40
  Certificate from the registrar of be part of stock company is entitled to start business
(in case of public Ltd. Company.)
 Certificate from broad of investment (in case of venture or foreign )
 Work permit order from ministry of trade. (In case of foreign nation.)
 Join venture agreement (in case of be part of venture.)

3.1.2 Cash Section:

Bank as a financial organization, settle for surplus cash from the folks as deposit and provides
them chance to withdrawn identical by cheque or by the other instrument. Among the
banking activities, money department plays a significant role. It will the most perform of an
advert bank e.g. receiving the deposit and paying the money on demand.

Cash Receiving Procedures: The work of money receiving counter is to look at the deposit
slip. investor uses the prescribed deposit slip provision by the bank for depositing money,
cheque, draft; pay order etc. altogether sorts of deposit the teller should cheque the
subsequent things:

 The slip has been properly stuffed up.

 The title of the account and its variety.
 The amount in figure and in words is same.
 Instrument signed by the investor.
 Data of the instrument.

Cash Payment Procedures: In order to safeguard the position the banker must observe the
subsequent precaution before observance a cheque:

 A cheque should be secured whether or not it's an incomplete cheque.

 The taking part in officer ought to see whether or not the cheque is drawn on his/her
branch.
 He should see whether or not the cheque is postdated or pre dated. A letter should not
pay any post-dated cheque.
 The officer should rigorously see the apparent tenor of the cheque. If it's mutilated or
martially altered then the officer should not honor it.
 The officer should compare the signature of the cheque with the signature on the
specimen card.

41
  The officer should verify the regularity of the endorsement.
 The officer might permit delinquent against a cheque if previous arrangement is
finished with the bank.

Passing the Cheque: After confirming the above-named things the officer passes it to pc
section for a lot of verification. At that time it's passed to the money to create payment. By
swing “pay money” seal the cash officer create it clean to pay. The money officer provides
the money quantity to the holder and record within the paid register.

Dishonor of Cheque: A banker will dishonor a cheque within the following situation:

 Insufficient fund.
 Payment stopped by drawer.
 Alternation need in drawer signature.
 Effect not clear within the cheque.
 Exceed arrangement in cheque.
 Fill cowl note received.
 Payee’s endorsement irregular/illegible/required.
 Drawer signature totally different and needed.
 Cheque is postdate/mutilated/out of date.
 Clearing stamp needed cancellation.
 Cheque crossed “accounts recipient only”.
 Collecting bank’s discharge irregular/ needed.

42
3.1.3 Deposit Section:

Deposit is that the lifeblood of the bank. From the history and origin of the banking industry,
we all know that deposit assortment is that the main perform of a bank. The officer of the
deposit section maintains account range of all the shoppers of the bank. They use completely
different code range for various account. The officer makes position 3 varieties of
transactions like money, clearing and transfer section. This section performs the subsequent
takes:

 Post reasonably transactions.

 Provide on demand report.
 Cheque maintenance.
 Preparation of day group action position.
 Preparation of closing monthly group action position.

3.1.4 Bills and Clearing Section:

For safety and security in monetary group action individuals use monetary instrument like
Doctor of Divinity, PO, and cheque etc. industrial banks collect these monetary instruments
on behalf of their customers. This method that the bank use to gather and clear on behalf their
of their customer’s account, is understood as clearing and assortment. The most perform of
this section is to assortment instrument on behalf of the shoppers through Bangladesh bank
financial organization, outside bank clearing (OBC), repose branch clearing (IBC). Upon
receipt of the instruments this section examines the subsequent things:

 Whether the paying bank among the Dhaka.

 Whether the paying bank out aspect of Dhaka.
 Whether the paying bank is its own branch.

Outward Clearing: Outward clearing control if the instruments are to gather by such branch
among the Dhaka town and not for his or her own branch. Here the subsequent procedures
are followed:

 Receive of the consumer duty signed instruments.

 Checking for any apparent discrepancy.
 Branch code range additionally affixed on the instruments
 The licensed signature endorses instruments.

43
3.1.5 Remittance Section:

The remitter will send cash through any establishment that branches in each countries.
During this case, the bank in Bangladesh receives the quantity from its foreign branches then
transfers it to the bank wherever the consumer needs to draw the cash. Here the bank has to
replenish a C’ from if the quantity of cash is $2,000 or a lot of. It’s finished the declaration
for remission received from foreign country within the quantity of $2,000 or a lot of.

Local Remittance: When cash is transferred through one place to a different place among
the country, it's referred to as native remission. Sonali Bank Limited has highest range of
branches everywhere the country and offers varied forms of remission facilities to the general
public. The most instruments issued by Sonali Bank Limited for remitting funds are:

 Pay-Order (PO): Payment order is associate degree instrument that's accustomed

remit fund among identical financial organization space. As an example, if we wish to
remit fund from one place of Dhaka to a different place, we have a tendency to
usually use payment order.
 Demand Draft (DD): It is associate instrument that's drawn on one banker workplace
to a different or different banker’s branch to pay sure add of cash to the named
person. It’s usually accustomed remit fund from one corner of the country to a
different. For instance, if we would like to remit fund from Dacca to Khulna we tend
to use Doctor of Divinity. Doctor of Divinity is extremely common instrument for
remitting cash from one corner of the country to a different.
 Telegraphic Transfer (TT): Sometimes the remitter of the fund desires the cash to
be offered to the receiver’s account directly. Therein case bankers decide to remit
fund tersely. Here the remitter bears the extra charge for telex/telephone.
 Mail Transfer (MT): It is associate instrument that's drawn by one banker workplace
on another or different banker’s branch to pay bound add of cash to the named person.
This instrument isn't given to the holder however the bank carries it and a message is
distributed to the actual branch. It’s usually accustomed remit fund from one corner of
the country to a different.

44
3.1.6 Loan & Advance Section:

Sonali Bank Limited offers following forms of loans and advances:

a) Secured Order of Payment (SOD):

It is never-ending advance facility. By this agreement, the banker permits his client to order
of payment his accounting up to his credit limits sanctioned by the bank. The interest is
charged on the number, that he withdraws, not on the sanctioned quantity. Sonali Bank
Limited sanctions SOD against totally different security. Some forms of SOD are the
followings:

 SOD (General):Advances allowed to the individuals/firms against monetary

obligations i.e. lien of F.D.R
 SOD (Others): Advances allowed against assignment of labor order for execution of
written agreement works falls underneath this head. The advance is usually allowed
for a particular purpose. It’s not never-ending loan.
 SOD (Export): Advances allowed to buying foreign currency for payment against
L/Cs (Back to Back) wherever the bourgeois cannot pass off before the date key
payment.

b) Money Credit (CC):

It is a briefing by that a banker permits his client to borrow money up to a definite limit. CC
could be a favorite mode of borrowing by traders, industrialists etc. for meeting their assets
necessities. It’s operated like overdraft account. Betting on the wants of the business, the
receiver will draw on his revolving credit at totally different time and once he gets cash will
modify the liability. Sonali Bank Limited charges interest on the daily balance within the
account. Cash Credit (Pledge): Pledge is that the livery of products as security for payment
of a debt or performance of a promise. Bailer during this case of known as the “Pawnor” and
also the agent is termed the “Pawnee”. During a contract of pledge, pawnor should deliver the
products pledged to the Pawnee either really or constructively. Transfer of possession within
the judicial sense, is essential within the valid pledge. Just in case of pledge merchandise the
bank acquire the possession of {the merchandise the products} or a right to carry goods till
the reimbursement for credit with a special right to sell when due notice to the receiver within
the event of non-repayment. After obtaining the money credit arrangement, the banker can
issue a cheque book for withdrawing money from the account. Whenever the CC account

45
holder needs to withdraw money from the account, the money officer can scrutinize the
number of cheque in order to create certain that the overall drawings don't exceed the
sanctioned limit. The charge documents needed for gap a CC account square measure as
follows:

 Letter of Agreement
 Revival Letter
 Letter of Continuity
 Letter of Hypothecation/Pledge
 Letter of Guarantee
 Memorandum of Deposit of deed of conveyance (in case of CC hypothecation
arrangement)
 Stock Report
 Letter of Disclaimer

c) Employees Loan:

Sonali Bank Limited provides advances to the staffs for purchasing motorcycles. Bank
provides this advance facility underneath installment system. At the tip of every month, when
the staffs wont to withdraw their salaries, bank takes Tk.2,100/- from the regular payment of
each of the involved employees that takes this loan.

d) House Building Loan:

Loan for construction of homes against realty as primary securities are allowed by the banks
up to tk sixty lacs per party. The rate of interest for all such loans is five-hitter each year.

e) SME Loan:

Sonali Bank Limited emphasizes highest priority on SME funding for eliminating
impoverishment by increasing SME loan flow at economically underdeveloped space and
peoples. Putting in priority base SME credit Policy for girls and deprived entrepreneurs,
Sonali bank operating for the advance of their socio-economic condition.

46
f) Industrial Credit:

Long term loan for fitting new industrial units are extended by Sonali Bank Limited to house
industries, small-medium-large scale industries and additionally to persons with a read to
making employment opportunities, readying of resources and over-all industrial development
of the country. Presently the subsequent credit schemes are on provide by the bank: Industrial
finance for Thrust Sectors, Sonali Bank Industrial Credit theme, special Investment theme for
house and little Industries, financing giant Scale Industries through Banks' syndicate and
financing computer code Development and processing.

g) Mid-term Loan:

Sonali Bank Limited or alternative business banks, due to their capital structure, constitution
and liquidity thought, square measure advancing for brief term on principle. But modern
banks have explicit disposal a secure proportion of their demand and time liabilities for fairly
long periods to deal with Building, Industrial, Agricultural, Transport and many alternative
sectors. Such loans square measure owed by installments over variety of years starting from
two to twelve (Agricultural Loans starting from half-dozen to fifteen months), as far as,
nature and conduct square measure involved.

h) Bills Purchased and Discounted:

Purchase and Discount of Bills is additionally a special style of advances. Sonali Bank
Limited commonly purchase demand bills of exchange that square measure known as
“Drafts” accompanied by documents of title to merchandise like Bill of shipment, Railway of
Truck receipt. The acquisition of bills of exchange drawn at associate supply, i.e., for a
definite period maturing on a future date and not owed on demand or sight is termed as
discounting a bill and also the charge recovered by the bank for this can be known as
“Discount”.

Loan Classification:

Like alternative banks, every kind of loan of Sonali Bank Limited fall under following four
scales which are the followings:

a) Unclassified: Reimbursement is regular.

b) Substandard: Reimbursement is stopped or irregular however has cheap prospect of
improvement.

47
 c) Uncertain Debt: Unlikely to be repaid however special assortment efforts might
result in partial recovery.
d) Bad/Loss: Little likelihood of recovery.

3.1.7 Foreign Exchange Section

Foreign Exchange of Sonali Bank department plays an important role through providing
different services for the client. Supplying L/C is one amongst the necessary services
provided by SBL. Among this exchange act, 1947 is for dealing in exchange business. Import
and Export management act, 1950 is for documentary credits is additionally a crucial law of
settlement of terms and condition between bourgeois and bourgeois in international trade.
Government export and import policy is another necessary issue for import and export
operation for banks.

Operate of foreign exchange:

The Sonali Bank Limited works as a media for the system of exchange policy. For this
reason, the employee United Nations agency is expounded of the bank to exchange,
especially that system should have information of those functions:

 Rate of Exchange
 The rate of exchange forward and spot rate
 Method of quoting charge per unit
 Premium and Discount
 Risk of charge per unit
 Exchange management
 Convertibility
 Exchange position
 Intervention cash
 Foreign exchange dealing
 Foreign exchange commercialism
 Export and import letter of credit
 Non-commercial L/C
 Financing for foreign trade
 Nature and performance of exchange market

48
  Rules and regulation employed in foreign trade
 Exchange arithmetic

The Product of Foreign Exchange Section

Letter of Credit (LC): A letter of credit is outlined as an enterprise by a supplying bank to

the beneficiary to create payment among a fixed time, against the presentation of documents
that abide by strictly with the terms of the credit. Types of letter of credit provided by the
Sonali bank are the following:

 Traveler’s letter of credit: A letter of credit self-addressed to the supplying bank's

correspondents, authorizing them to honor drafts drawn by the bearer up to the
licensed credit line, conjointly known as a circular letter of credit. Payments area unit
supported by the issuer's correspondents on the reverse side of the letter of credit after
they talk over the drafts. This kind of credit typically is used to cowl travel expenses
and frequently is paid by the client.

 Commercial letter of credit: An instrument by that a bank substitutes its credit for
that of a client to alter him to finance the acquisition of products or to incur different
commitments. The bank problems a letter (or document) on behalf of its shopper to a
provider and agrees to pay them upon presentation of documentary proof that the
suppliers has performed. An instrument by that a bank substitutes its credit for that of
a client to alter him to finance the acquisition of products or to incur other
commitments is thought as industrial letter of credit. The bank problems a letter (or
document) on behalf of its shopper to a provider and agrees to pay them upon
presentation of documentary proof that the provider has performed. There are lot of
forms of industrial letter of credit at Sonali bank these are the followings:

 Revocable L/C: If any letter of credit will be modification or modification of any

clause or canceled by consent of the bourgeois and bourgeois is thought as reversible
letter of credit. A revocable letter of credit will be amended or canceled by the
supplying bank at any time without previous notice to the beneficiary. It doesn't
represent a de jure binding undertaking by the bank to create payment.

49
 Irrevocable L/C: If any letter of credit can't be modified or modification while not
the consent of the importer and bourgeois is thought as sealed letter of credit. A sealed
credit constitution a firm enterprise by the supplying bank to create payment.

 Confirmed and unconfirmed Credits: A letter of credit that has not been warranted
or confirmed by any bank apart from the bank that opened it. The advising bank just
informs the beneficiary of the letter of credit terms and conditions. An unconfirmed
letter of credit is largely once the letter of credit has the guarantee of solely the
supplying bank. The operate of the advising bank during this case is merely to
produce bourgeois regarding the terms and conditions of the letter of credit and it
doesn't add its obligation to pay.

 Sight payment credit: The most normally used credits area unit sight payment
credits. These give for payment to be created to the beneficiary without modesty when
presentation of the stipulated documents on the condition that the terms of the credit
are complied with. The banks area unit allowed cheap time to look at the documents.

 Deferred payment credit: Under a payment credit the beneficiary doesn't receive
payment once his presents the documents however at a later date per the credit. On
presenting the required documents, he received the licensed banks written enterprise
to create payment of maturity. During this manner the bourgeois gains possession of
the documents before being debited for the number concerned.

50
 Acceptance Credit: With an acceptance credit payment is formed within the variety
of a bill of exchange drawn on the client, the supplying bank or the pendent bank.
Once he has consummated the credit necessities, the beneficiary will demand that the
bill of exchange be accepted and came to him. Therefore the accepted bill takes the
place of a money payment. The beneficiary will gift that we have a tendency to
accented bill to his own bank for payment at maturity or for discounting, betting on
whether or not or not he desires money forthwith.

 Negotiation credit: A negotiation credit could be an industrial letter of credit opened

by the supplying bank within the currency of its own country and self-addressed on to
the beneficiary. The letter is usually delivered to the recipient by a correspondent
bank. This credit is usually also as Hand on credit. The letter of credit empowers the
beneficiary to draw a bill of exchange on the victimization bank, on the other named
drawer or on the human for the credit.

 Red clause credit: In the case of a red clauses credit, the vendor will get an advance
for a united amount from the correspondent bank, merchandise that area unit planning
to be delivered beneath the documentary credit. On receiving the advances, the
beneficiary should provide a receipt and provide a written enterprise to gift the
desired documents before the credit expires.

 Revolving Credit: Revolving credit will be used once merchandise area unit to be
delivered in installment at specified intervals. The number offered at anybody time is
appreciate the worth of one partial delivery. A consumer credit will be additive or
non-cumulative means that that amount from unused or incompletely used parts will
be carried forward to subsequent amount. If a credit is non-cumulative, parts not
employed in the prescribing period case to be offered.

51
 Green Clause Letter of Credits: This is another kind of pre-shipment credit and
used chiefly in Australian wool trade. The “Green Clause” is AN improvement over
the “Red Clause” credit and permits not only pre-shipment advances however
conjointly authorizes negotiating a bank to hide storage of goods at the port within the
name of gap bank.

 Non-revolving Letter of Credit: Non-revolving credit is once credit is extended via

a hard and fast reimbursement set up. As payments area unit paid on non-revolving
credit plans, more credit isn't extended (unlike in a consumer credit plan).An example
of non-revolving credit would be an auto loan. In a very auto loan, credit is extended
and repaid through a hard and fast installment buying.

 Omnibus Credits: In this kind of credit the bank takes a lien over the products and
different movable and unmovable properties of the bourgeois as security against the
packing credit allowed in terms of a sealed confirmed credit.

 Transit or compensation credit: Where the overseas correspondent of the credit gap
banker negotiates bills drawn under a letter of credit on condition of compensation, by
a draft drawn on the credit opening banker’s account elsewhere or by credit of the
correspondent’s foreign account at another center, the letter of credit is remarked as a
Transit.

 Reimbursement credit: Credit “With” or “Without Recourse”, in case of a letter of

credit with recourse; the beneficiary of the letter of credit holds himself susceptible to
the holder of the bill within the event of dishonor. Wherever the beneficiary does not
hold liable, such a letter of credit is thought as while not recourse letter of credit

52
 Standby credit: Standby credit is encountered mainly within the North American
nation. Beneath the laws of most North American nation states, Banks area unit
prohibited from supplying regular quarantines, therefore credits area unit used instead.
In Europe, too the utilization of this kind of credit is increasing by virtue of their
documentary credit, stand-by credit area unit ruled by the UCP.

 Transferable credit and non-transferable credits: Transferable credit is especially

well tailored to the wants of international trade. A merchandiser United Nations
agency receives payment from a customer within the variety of a transferable
documentary credit will use that credit to pay his own provider. This allows him to
carry out the dealing with solely a restricted and lay of his own funds. The supplying
bank should expressly designate the credit as transferable.

 Back to Back Letter of Credits: Arrangement within which one sealed L/C is the
collateral for another; the advising bank of the primary L/C becomes the supplying
bank of the second L/C. In distinction to a 'transferable letter of credit,' permission of
the last word customer (the human or account party of the primary L/C) or that of the
supplying bank, isn't needed in a very back-to back L/C. It's used chiefly by
middlemen (intermediaries) to cover the identity of the actual provide.

 Parties to a letter of credit: A letter of credit is issued by a bank at the request of a

bourgeois in favor of an exporter from whom he has narrowed to purchases some
artifact or commodities.

53
 Chapter 4
Human Resource Practice in Sonali
Bank Limited (Mohakhali Branch)

54
4.1 Function of Human Resource Management in Sonali Bank Limited

1. Recruitment & Selection: the amount of positions time unit department fill and also
the time it takes to fill those positions live the success of recruiters and employment
specialists. They business supply candidates, screen candidates, job postings, organize
preliminary interviews and accountable for creating the ultimate stipulation of staff.
2. Administration: The management of administration has become an important
perform for every undefeated organization and that they play a crucial role to assure
that companies run swimmingly.
3. Training & Development: staff necessary tools for his or her best performance,
during which several cases, suggests that providing new candidates comprehensive
direction coaching to achieve them fits a brand new structure worth should be
provided by employers. Leadership coaching and skilled development chance square
measure provided by several time unit departments. Leadership coaching is
additionally provided for new recruited and raised administrators and executives.
Figure 4.1: Function of Human Resource Management

Recruitment &
Selection

Succession
Administration
Management

Human Resource
Practice

Talent Training and

Management development

Performance
Management

55
 4. Performance Management: Performance management may be a method by that
managers and staff work hand in glove to set up, monitor associated review an
employee's work objectives and overall contribution to the organization.
5. Talent Management: Talent Management may be a set of combined structure time
unit processes designed to inspire and retain productive and, engaged staff. The goal
of talent management is to create a superior, reasonable organization that meets its
strategic and operational goals and objectives.
6. Succession Management: Succession management is that the method of
determinative those jobs acknowledged to be at the core of the organization too
important to be left vacant or stuffed by any however the most effective skillful
persons then building a strategic conceive to fill them with seasoned and qualified
staff.

4.2 Achievement and Choice Procedure of Sonali Bank Limited:

The principal functions of Sonali Bank Limited square measure to lure and keep very skillful
fellow whoever can do their best in their specific places. The bank not solely tries to lure
well-skilled staff however additionally tries to search out and recruit staff UN agency square
measure very upward to figure within the bank for an obvious amount of your time. The
achievement policy of Sonali Bank Limited is given below:

 They typically follow onsite achievement however throughout the necessity seems
they are going for external achievement to extra service the occupancies.
 They continuously looks to rent individuals for a while, bank offer a lot of importance
on them UN agency has to get promoted to mid-level sites.

4.2.1 Factors touching achievement of SBL

 Yearly recruitment: it's done every year, in accordance with the time unit set up.
 Need-based recruitments: it's done throughout there's a sudden vacancy.

56
4.2.2 Achievement Sources and Methods

Sonali Bank Limited uses primarily 2 kinds of achievement sources. They’re internal sources
& external sources.

Internal Sources:

Sonali Bank Limited typically promotes from inside the organization. Management has to
recruit identified & seasoned worker from inside the organization. Within the following ways
in which Sonali Bank Limited achievement from the interior sources might present itself with
the approval of the high level management. This may be done by these means mentioned:

 Giving Promotion
 Giving Transfer
 Employee reference
 Up Gradation
 Temporary Assignment
 Additional Assignment

External source:

Sonali Bank Limited recruits from external places still. The external places square measure
given below:

 Various universities
 Rivals and alternative firms
 Unsolicited candidates
 Advertising in newspaper
 Advertisement in company web site
 Internship giving

57
4.3 Human Resource Planning

Integrating human resources management strategy & system to induce the full mission,
vision, ways & success of the firm throughout meeting the requirements of staff & alternative
shareholders. The following step of HR planning followed by Sonali Bank Limited:

1. Advertisement: Once the achievement is taken, an ad has to draft supported the

talents, qualification, expertise & competencies as are known & per the several verbal
description.
2. CV Submission: Potential participant’s interested square measure needed to send
their complete summary. Talent of receipt is shipped for all submitted applications to
the candidates Email.
3. Receipt of Application: Candidates either send their CVs in application for a selected
vacancy, or they send their CVs for any appropriate position. The time unit cluster
gathers job applications against every job occupancy. Just in case of newspaper
advertisements, the candidate’s square measure given a minimum of three weeks for
apply. When a selected time, each job is folded for attempting.
4. Shorting out Applications: The following step is that the short listing of CVs.
typically the time unit section is engaged within the short listing. However the time
unit cluster would possibly turn over this half to the actual divisions to avoid wasting
time. To recruit skillful bankers, CVs is also sorted out from the gathering of self-
generated CVs came hand.
5. Informing Candidates: Once short listing is finished of the CV and selecting the
satisfactory candidates, time unit cluster apprize the someone over phone concerning
log take a look at (Entry level) or interview (Mid-level). For log tests, the bank
provides admit cards through traveler facilities seven to 10 days before the take a look
at.
6. Written Test: The employment communicating is usually power communicating that
measures participant’s oral or verbal capability, numerical capability, reasoning
power. Commonly Sonali Bank Limited takes log take a look at for entry level venue
like trio assistant and for MTO level. Generally BIBM/Staff school or Asian country
bank takes the written take a look at on behalf of Sonali Bank Limited.

58
 7. Interview: Sonali Bank Limited has associate interview board that has included of
time unit professionals still as higher level management to supervise biasfree and even
interview council to pick MT’s primarily MD, doctorate and Head of time unit
manage interview amount. For achievement and choice seasoned professional’s
totally different or varied exams is also organized.
8. Final Approval by Competent Authority: After the communicating amount the
candidates square measure assessed by the interview board. The management bunch
chooses UN agency are going to be selected. Then associate “offer letter” is created
for the someone.
9. Medical Checkup: In similar with alternative bank Sonali Bank Limited additionally
organize scrutiny of the picked staff if the candidate is acceptable the work or not.
Sonali Bank Limited has contractile with fashionable Diagnostic Center and Chevron
Diagnostic Center. The complete assessment is managed by these diagnostic points
mentioned.

4.4 Performance Appraisal Methodology

1. Past adjusted method: they're the following:

 Rating Scales: this can be the simplest and most famed mastery for considering
employee’s implementation. The classic rating scale system created from totally
different numerical scales, every constituting employment connected performance
norm for instance output, appearance, attitude, cooperation and also the like.
 Checklist: This listing methodology suggests that an announcement that is developed
in 2 columns, one is affirmative and another isn't any column. All the rater have to be
compelled to do is tick the “YES” column if the solution is positive and in column
“NO” if the response is negative.
 Forced alternative method: The sequence of statements organized within the blocks
of 2 or additional square measure given and also the rater stipulates that statement is
true or false. The rater is given a series of statements concerning associate worker and
he's forced to create a alternative.
 Behaviorally Anchored Rating Scales (BARS): Statements of effective and
ineffective behaviors dictate the points. They’re same to be behaviorally anchored.

59
 The rater is ought to say, that behavior tells the employee performance. Behaviorally
anchored rating scales are identified behaviorally expectation scale. It’s designed to
assess behaviors needed to with success perform employment.
 Paired Comparison methodology: Into this method, the appraiser contrasts every
employee with each alternative employee. Wherever most are rated with another
worker within the variety of pairs. The amount of comparisons is calculated with the
assistance of a formula as N x (N-1) / 2.
 Weighted Checklist: Weighted listing methodology is thus economical methodology
for organization. The workers will get correct feedback from the judge in order that
they will be impressed and take a look at to try and do the most effective. So that they
use the weighted listing methodology. The weighted listing ways, they're very
satisfying the explanation is that they get correct feedback.

2. Future adjusted method:

 Management by Objectives (MBO): It refers management by objectives and also

the performance was being rated against the action of objectives showed by the
management. MBO method goes as beneath.
 360 Degree appraisal: Once several raters select the final Manager, Senior Manager,
Head of Branch Manager, & Head of time unit Manager square measure enclosed in
assessing implementation, the mastery is named 360-degree appraisal. The 360-
degree plan is known as systematic clustering of performance knowledge on
somebody or group.
 Assessment Center: Associate assessment center may be a central location wherever
managers might move to own their participation in job connected exercises evaluated
by trained observers.

60
4.4.1 Method of Performance Appraisal: Performance appraisal may be a method
involving such steps as:

Step 1: Setting Performance customary

 Performance standards function benchmarks against that performance is measured.

 Standards ought to link to the required results of every job.
 Job analysis removes cowl from performance standards by analyzing the performance
of recent staff.

Step 2: Performance Expectation to staff

 Employees will be enclosed in setting standards.

 Communication could be a street.
 Feedback is therefore vital from the subordinates to the manager.

Step 3: measure Actual Performance (Four common sources of information)

 Personal discovery
 Statistical reports
 Oral reports and
 Written reports

Step 4: Examination with Standards

 Comparison of real performance with standards.

 The principal issue here is to notice digression between customary performance and
actual performance.

Step 5: Discussing the Appraisal Results

It is usually accomplished through analysis interview. The authority might provide the
feedback through totally different approaches:

 Tell and sell

 Tell and listen and
 Solve drawback

61
Step 6: Initiating Corrective Action

The final step within the appraisal is taking corrective measures wherever essential.
Corrective measures will be of 2 types: one is immediate agitate indications, and also the
different is basic, that assigns with causes.

4.4.2 Factors Distort Performance Appraisal

 Halo effect: Rater permits individual attribute, outcomes or thought to have an effect
on different steps of performance.
 Stereotype: Rater makes performance acumen supported employee’s self-
characteristics, behaviors and manners somewhat than employee’s real performance.
 Central tendency error: Evaluators circumvent higher and lower ends of rating scale
in favor of putting all staff at or nearly middle of scales.
 Leniency or strictness error: Evaluator’s propensity to rate all staff higher than
(leniency) or below (strictness) real performance level.
 Personal biases and organization polities: Have vital impression on rating staff get
from supervisors.
 Recency error: Raters build performance judgment supported current events and
behaviors of staff and their gross performances.

4.5 Training and development of Sonali Bank Limited

Technique area unit the ways that staff area unit trained. Sonali Bank Limited uses such a
large amount of technique method supported the condition and training functions. Its 2
types:-

On the Task Coaching Method

a) Job rotation: This coaching methodology involves movement of coaching from one job to
realize information and knowledge from different job assignment. This methodology helps
the initiate perceive the difficulty of the staff.

b) Coaching: Beneath the strategy, the initiate is placed beneath a specific supervisor UN
agency functions as an educator in coaching and provides feedback to the candidate.

62
c) Job instructions: Conjointly called step by step coaching during which the trainer
explains the approach of doing the roles of the coaching and just in case of mistakes, correct
the participant.

Off The Task Coaching Method

Off the task coaching embrace lectures, special study, films, television, conferences or
discussions, case studies, role taking part in, simulation, programmed instruction and
laboratory coaching. Most of those techniques will be employed by tiny businesses though
some could also be expensive.

a) Conference or discussion methodology: In Sonali Bank Limited conference method is

employed for providing decent information to the operative by open discussion over a topic.
Here by discussion the known answer is set.

b) Classroom lectures: Sonali Bank Limited sometimes provides off the task coaching and
conjointly verify wherever the coaching would present itself. The room lectures coaching
materials verbally and area unit used once the goal is to gift an excellent deal of materials to
several individuals.

c) Counseling: the executives of Sonali Bank Limited area unit usually trained through the
substance. It’s terribly acquainted methodology that is accepted by the highest govt. Here the
most focus of coaching is to show them through correct substance by a well-equipped
mentor.

4.5.1 Training method of Sonali Bank Limited

Cooperative and government personal the HRD of Sonali Bank Limited uses following
training:

a) Job analysis: This can be a method that identifies and determines the task duties and
responsibilities of a specific job and needed qualities and qualifications to perform
employment. Through job analysis the utilization of many strategies like supervisor
interview, table audit and observation conducts.

b) Observation: Operative staff usually would like coaching for his or her tasks. However
that executive’s personal must be developed for future task or new work experiment will be
known by perceptive.

63
c) Questionnaire: Form will be employed by government personal. As a result of it's simple
to know the assessment of coaching wants of associate existing worker.

d) Interviews: Interviews involve talking with every individual worker what doable issues
and problems area unit chargeable for the deficiencies etc.

e) Record report: Bank maintains record report for all staff through this record report branch
manager, HRD takes call that that worker wants coaching in what facet etc.

4.5.2 Training Analysis Academy of Sonali Bank Limited

 At first the bank set the substructure by putting in an instructional at head workplace
beneath unit of time growth division to unit of time within. It’s a library, modern
coaching assist Information College then several different developing? The muse of
the bank has been a superior one in every of the banks on public section.
 The bank daily conducts foundation course, exclusive courses and discussions in
varied places of banking to require care of the chief banking necessities. In addition,
officer’s area unit daily gone to workers school and Asian nation Bank coaching
institute (BBTI) for skilled coaching. Causation officers abroad for higher coaching is
Regular Feature .A research department conjointly works in aid of HRD operational
areas.
 In the year 2008, The Academy has conducted thirty one programmers as well as
coaching, workshop and seminar wherever a complete variety of 1059 executives and
officers attended.

4.5.3 Advantages of Sonali Bank Limited training institutes

(a) Faculty: Sonali Bank Limited training institutes captivated in unit of time growth.
Continuous try is being given to make and systematize the coaching with the decision of the
age to banking and finance.

(b) Guest speakers: In coaching ways guest speaker area unit summoned to separate their
ideas of banking.

(c) Hand-out: Subjects enclosed within the course program area unit helped by stuffs like
binder, booklet, define etc.

64
(D) Coaching Procedure Associate Aid: Distributes mastery by lectures, cluster debates,
exercise, case study, transmission presentation, projector and job exposure.

(e) Training category room: Category room’s area unit equipped AC having pleasant
seating positions for candidates.

(f) PC workplace: This organization have a well-furnished pc lab with the quite thirty five
staff, with a read to acquaint all staff with this pc pursuit.

(g) Library: There's an affluent library consisting of regarding 1200 books with Newspaper
and journal potential.

(h) Hostel: Hostel lodge for sixty staff aligned with time.

(i) Food: Within the time training organization can give foods for fourfold daily.

(j) Assessment: To understand the effectivity of the coaching, entrance and terminal trials
area unit to be provided by the candidates.

(k) Performance: In total 815 participants got trained up by Sonali Bank coaching Institute.

(l) Plan: As per consent of the authority 8675 (35 courses) candidates are going to be
provided coaching in 2012.

65
 Chapter 5
Project Part

66
5.1 Introduction

5.1.1 Background of the study

A bank profitability is highly dependent on the effective and efficient utilization of its
resource. The human resource of any bank represents the most critical resources which have
the capacity to enhance business development .The continuity of any bank and its continued
growth and prosperity are assured only through proper human resource management. In this
study, I have made an attempt to assess the problems of human resource practice at Sonali
Bank Limited (Mohakhali Branch). The effectiveness of the service being provided by the
Sonali Bank Limited is determined by the quality of human resource, which is somewhat the
main factor for the success and development of the bank. Moreover, the study gives special
attention to analyze the actual problem of human resource practice at Sonali Bank Limited
(Mohakhali Branch). Furthermore, there is a comparison with some standard principle of
human resource practice with the overall policy.

5.1.2 Problem Statement

In Asian nation, the government bank sector is facing totally different kinds of challenges day
by day. To fulfill these challenges bank have to be compelled to guarantee associate
economical hands. Otherwise, government bank shall be disadvantaged from attracting and
retentive economical hands. Here, this analysis has been conducted to apprehend whether or
not the employees are happy with the various initiatives that is taken to satisfying their
desires by Sonali Bank Limited.

5.1.3 Objective

The prime objective of this analysis is to investigate whether or not employees are glad on
their job or not based on Sonali Bank Limited. Some other objective are:

 To determine the factor that has offered employee most satisfaction or dissatisfaction.
 To determine the limitation(s) of the Sonali Bank Limited in satisfying employee
towards job.
 To offer some pointers to overcome the weaknesses in case of satisfying worker
towards job.

67
5.2 Methodology

5.2.1 Research Approach: I have done inductive approach because I took Sonali Bank
Limited (Mohakhali Branch) as my research consideration that have represented the overall
situation prevailing in Sonali Bank Limited.

5.2.2 Research Philosophy: In the category of research philosophy my research type was
realism method because the research methods fit the subject matter and it is a quantitative
survey. I have used all the data from valid sources.

5.2.3 Type of Research: As I have analyzed the financial position of the Sonali bank limited
that’s why I have already gained a firm grasp of the situation prevailing in the bank for this
reason I have done descriptive research as well as quantitative research as through different
statistical analysis.

5.2.4 Research Instrument: My research instrument was survey and questionnaire and
survey.

5.2.5 Method of data collection:

Primary data: Data mainly collected from the statement of affairs of Sonali Bank Limited
Uttara Branch from 2014 to 2018 as well as by having conversation with the employee of
Sonali Bank Limited (Mohakhali Branch)

Secondary Data: Some data related Sonali Bank Limited has been collected from its
website.

5.2.6 Sampling Design

i. Population: For the analysis, my population is all the employee who are currently working
in Sonali Bank Limited, Mohakhali Branch.

ii. Sampling Procedure: I have used convenience sampling procedure. Each employee has
associate degree equal likelihood to participate within the survey.

iii. Sample Size: To conduct this analysis, I have chosen the sample by exploitation
convenience sampling method and therefore the needed sample size for conducting this
research are going to be forty. They can be defined as both male and female.

68
iv. Sample Frame: Employees of Sonali Bank Limited, Mohakhali Branch.

5.2.7 Research Limitation:

 The data that have collected from the Sonali Bank Limited may be changed or
manipulated for their own confidentiality purpose
 Lack of knowledge

5.3 Findings and Analysis

As my sample size is 40, I have used Z-Test formula for finding the result. For analysis of
data Microsoft Word, Microsoft Excel, different tables and graphs are used in this report to
make the data meaningful.

5.3.1 Hypothesis Test: Z-Test

Hypotheses were tested to derive a meaningful conclusion from the collected data. Based on
statistical techniques of different measures of central tendency have been used for analyzing
the data. As my sample size is 40, so I have used Z-Test for the study were critical value are
5% = One tail ± 1.645

5.3.2 Hypothesis Weight Measure: In order to analysis the data a 5 point Likert scale has
been used. The scale has been shown below:

Figure 5.1: Hypothesis Weight Measure

Options to Respond Weight

Strongly Disagree 1
Disagree 2
Neither agree nor disagree 3
Agree 4
Strongly Agree 5

5.3.3 Hypothesis Development and Test

H0: Bank does not provide sufficient logistical support.
H0: The employees are not satisfied with their monetary facilities.
H0The employees are not secured about their job.

69
5.3.4 Hypothesis Testing
Figure 5.2: Hypothesis Testing

Respondent H1 H2 H3
1=Strongly Disagree 1*7=7 1*6=6 1*2=2
2=Disagree 2*4=8 2*8=16 2*3=6
3=Neither Agree nor Disagree 3*2=6 3*5=15 3*0=0
4=Agree 4*19=76 4*12=48 4*20=80
5=Strongly Agree 5*8=40 5*9=45 5*15=75
Total 137 163 163
Calculation

Average 3.43 4.08 4.08

Standard Deviation 1.37 1.06 1.06
Z-test value 1.95 6.35 6.35
Z-Table value (5% significant Value)1.645

[Foot note: Authors work]

5.3.5 Interpretation and Graphical Representation

Hypothesis: 1

H0: Bank does not provide sufficient logistical support.

HA: Bank provide sufficient logistical support.

H0: µ = 3

HA: µ > 3

Here,
n = 40
̅
X = 3.43
σ = 1.37
̅ –μ)
(X
Z Cal= (σ/√n) = 1.95

70
 Graphical Representation

Figure 5.1: Respondent’s feedback in H1

H1

20% 17%
Strongly Disagree
10%
Disagree
Neither Agree nor Disagree

48% 5% Agree
Stronly Agree

[Footnote: Authors work on survey]

Interpretation: At 5% significant level, the value of Z in Z- distribution table is Z0.05 =

1.645. As Z Cal > Z tab for which the null hypothesis is rejected. So at 5% level of significance,
so the bank provide sufficient logistical support.

Hypothesis: 2

H0: The employees are not satisfied with their monetary facilities.
HA: The employees are satisfied with their monetary facilities.

H0: µ = 3

HA: µ > 3

Here,
n = 40
̅
X = 3.25
σ = 1.39
̅ –μ)
(X
Z Cal= (σ/√n) = 1.14

71
 Graphical Representation

Figure 5.2: Respondent’s feedback in H2

H2

23% 15%
Strongly Disagree
20% Disagree
Neither Agree nor Disagree
30% Agree
12%
Stronly Agree

[Footnote: Authors work based on survey]

Interpretation: At 5% significant level, the value of Z in Z- distribution table is Z0.05 = 1.645.

As Z Cal < Z tab that’s why the null hypothesis is accepted. So at 5% level of significance, so
employees are not satisfied with their monetary facility.
Hypothesis: 3

H0: The employees are not secured about their job.

HA: The employees are secured about their job.

H0: µ = 3

HA: µ > 3

Here,
n = 40
̅ = 4.08
X
σ = 1.06
̅ –μ)
(X
Z Cal= = 6.35
(σ/√n)

72
 Graphical Representation

Figure 5.3: Respondent’s feedback in H3

H3
5%
0%
7%
38% Strongly Disagree
Disagree
Neither Agree nor Disagree
50%
Agree
Stronly Agree

[Footnote: Authors work based on survey]

Interpretation: At 5% significant level, the value of Z in Z- distribution table is Z0.05 =

1.645. Since Z Cal > Z tab the null hypothesis is rejected. So at 5% level of significance,
it can be said that the employees are secured about their job.

5.3.6 Findings

To prepare this report, I tried my best to find out the effect of human resource practice on the
job satisfaction of employees working in Sonali Bank Limited. The major findings after
analyzing all financial data and response from the employees are as follows:

H1 From Hypothesis-1 titled “Bank does not provide sufficient logistical

support”, the null hypothesis has been rejected so bank do provide
sufficient logistical support.
H2 In Hypothesis 2 titled “The employees are not satisfied with their
monetary facilities” .As the null hypothesis is accepted. Thus employees
are not happy with their monetary benefits.
H3 In Hypothesis 3 titled “The employees are not secured about their job”
The null hypothesis is rejected thus employees believes they have secured
job.

73
5.4 Summary and Conclusions

This study concludes with that the Sonali Bank Limited, Mohakhali Branch are ensuring
effective human resource practice that’s why they are happy with their jobs. The study
reveals that, completely different factors exercised by the bank to satisfy the workers’ desires
however will not offer equal satisfaction to employees. Most of the workers area unit happy
towards the initiatives on job security, operating conditions, supply support of the bank. On
the opposite hand, most of the workers aren't happy towards the initiatives of bank on
monetary facilities. It is obvious that, bank would like to offer additional emphasize on
monetary facilities to satisfy the workers. Bank conjointly desires to guarantee completely
different monetary and non-monetary initiatives therefore that the workers will regulate with
the society’s living customary. Bank conjointly desires to follow honest promotion policy and
acknowledge glorious performances. Other than this in this study I have also talked about the
general banking activities on human resource practice that bank do to generate profit. After
evaluating the overall performance of Sonali Bank Limited in different division it could be
said that Sonali Bank Limited is mainly operated by a standard policy and regulation and
strive to give quality product and service to their customer. They also takes some initiative
towards their employees so that they can give their best effort in their work. At the end I
would say that Sonali Bank Limited is one of the best bank than Bangladesh have so if they
can minimized their limitation they can easily beat their competitor and be the first priority
for the customer.

74
5.5 Recommendations

The study revealed that, the Sonali Bank Limited has still some limitations to satisfy the
employees’ towards the job. Within the lightweight of the findings from the study, the study
is inclined to place forth some pointers.

a) The participants of the study (employees) were not happy on the monetary facilities of the
Sonali Bank Limited. Bank need to add completely different monetary edges additionally to
remuneration. Best performer could be rewarded that shall encourage the employees. This
reward shall produce a positive competition among the staff. As a result, the productivity
shall rise. Most significant factor is that, the bank would like to guarantee honest promotion
policy and its correct execution. This arrangement shall offer the bank a competitive
advantage among the others bank.

b) Employees are happy towards the factors of job security, supply support and operating
conditions. Although the factors offer satisfaction to employee, the bank could have to still
upgrade these facilities. Adding’s facility can draw in and retain talent employees.

c) If the Sonali Bank Limited can guarantee equal edges with non-public bank, than this
edges shall facilitate to attract talent human resource and thus it will lead to increase their
profitability. They need to follow the market trend relating to the fulfilment of employees
desires.

75
Reference

AKHTER, A. &. (2013). Auditors Report & Financial Statement. Sonali Bank Limited.

AKHTER, A. &. (2014). Auditors Report & Financial Statement. Sonali Bank Limited.

AKHTER, A. &. (2015). Auditor Report & Financial Statement. Sonali Bank Limited.

Assignment Point. (n.d.). Organization Structure of Sonali Bank Limited. Retrieved January
01,2021, from http://www.assignmentpoint.com/business/internship-report-on-
financial-performance-analysis-of-sonali-bank-limited.html

Co., S. F. (2016). Auditors Report & Financial Statement. Sonali Bank Limited.

Co., S. F. (2017). Auditors Report & Financial Statement. Sonali Bank Limited.

S.Rose, P. (2016-2017). COmmercial Bank Management (Fifth Edition ed.). Mc Graw Hill
Irwin.

Sonali Bank Limited. (2018). Board of Directors. Retrieved October 5, 2018, from
https://www.sonalibank.com.bd/

Sonali Bank Limited. (2018). Our Core Business. Retrieved December 30 , 2020, from
https://www.sonalibank.com.bd/#

Sonali bank Limited. (2018). Overview of Sonali Bank Limited. Retrieved December 31,2020,
from https://www.sonalibank.com.bd/

Sonali Bank Limited. (2018). Vision & Mission. Retrieved January 1,2021 , from
https://www.sonalibank.com.bd/

Sonali BanlK Limited. (2018). Corporate profile. Retrieved January 2 ,2021, from
https://www.sonalibank.com.bd/

76