The specific objective of this report is to review the general banking activities and operating system of Sonali Bank Limited. Here General banking is the side where banking offer different alternatives to the clients to deposit and remit their money and to encourage the clients, bank offers different options in front of their clients. Every branch of every bank has to maintain the General Banking department. Finally draw SWOT analysis and suggest recommendation based on problems of General Banking activities.

Introduction

Sonali Bank is the largest bank as well as the largest employer in both the public and private sectors in Bangladesh. The bank is playing an important role in the socio-economic development through the development of industrial sectors by providing all the conventional banking services as well as some specialized financing activities to the economy.

The Objective of my study is to review the general banking activities and operating system of Sonali Bank Limited with the use of both primary and secondary data. General banking is the side where banking offer different alternatives to the clients to deposit and remit their money. To encourage the clients, bank offers different options in front of their clients. Every branch of every bank has to maintain the General Banking department.

Objective of the study:

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

• To review the general banking activities and operating system of Sonali Bank Limited.

Methodology:

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

The Primary sources are:

•   Direct communication with the officials of Sonali BankLimited.
• Direct communication with the client

The Secondary sources are:

• Annual Report and prospectus of Sonali Bank Limited
• Different books regarding the general banking activities.
• Periodical publications by Bangladesh bank.
• Different publications regarding general banking activities.
• Information provided in internet about general banking of Sonali Bank Limited.

Overview of Sonali bank limited

Establishment:

Sonali Bank, the largest commercial bank in the country, was established under Bangladesh Bank (Nationalization) Order 1972 (presidency Order No.26 of 1972). By taking over branches of former National Bank of Pakistan, Bank of Bahawalpur limited and Premier Bank Ltd. Were two private banks performing class banking over the century in that period and National bank of Pakistan was government supported bank which was established to finance the jute sector in East Pakistan in the early period of Pakistan. After the birth of Bangladesh on 16^th December 1971, newly formed Sonali Bank for mass banking got special facilities from the government to work on behalf of Bangladesh bank in those areas where Bangladesh bank is not available. With the increase of commercial and by virtue of performance within a few years, it becomes the largest commercial bank of the country with 1181 branches up to now.

Government Intervention:

Financial services have traditionally been the subject of close government scrutiny and it is to be expected that exchange rates, interest rates and terms of credit should be closely monitored in the public interest. In the recent years, however, governments have tried to use interest rates, credit regulations and informal controls on banks as a means of managing the supply of money in the economy in an effort to increase or reduce consumer spending and to hold back or promote investment by business.  During the 1976 to now, the effect of these policies has been to add a new dimension of risk and uncertainty to financial markets which were already fluctuation wildly because of the oil crisis, the commodity boom, increasing inflation and controlled exchange rates.

Besides government is a big problem for the nationalized bank in Bangladesh. Government forces to the nationalized bank to insider lending, lend to government’s priority sector, state-owned enterprises, sick industries, borrowers with political influence as well as provide exemption schemes to fulfill its pre-election commitment. The loan exemption program of 1986-87 and 1991-92 exempted 11.37 percent and 25.56 percent respectively of total bank loan outstanding. As a result, nationalized commercial banks are burdened with very large classified loans (32 percent of total loans) against which very large provisions had to be made which affected profit position adversely. Classified loans in the country’s banking sectors on June 30, 1996 amount to 33.0 percent of total loans. It was 34.9 percent as on December 31, 1993. However, net income of local banks is drastically reduced, as the required to maintain very large provisions for bed debts and interest suspense accounts.

Sonali Bank at a glance:

Table: Highlights on overall activities of the bank

[Source: annual report of Sonali Bank on 2010]

General Banking Activities of Sonali bank Limited

General banking is the side where banking offer different alternatives to the clients to deposit and remit their money. To encourage the clients, bank offers different options in front of their clients. Most of these options are very much similar between the banks, but the customer services and facilities may not be the same. Every branch of every bank has to maintain the General Banking department. It takes care of lot of important banking activities mainly collecting the deposit from customers. General Banking department is mostly expected to maximize the number of customers. It is the introductory department of the Bank to its customers. Sonali bank, principal branch has all the required sections of General Banking.

Such as-

1. Accounts Opening Section
2. Cash Section
3. Deposit Section
4. Bills and Clearing Section
5. Remittance Section
6. Accounts Section
7. Loan and Advance Section
8. Foreign Exchange Section

Accounts Opening Section:

Account Opening is the gateway for clients to enter into transaction with the bank. It is the foundation of banker-customer relationship. A customer can open different types of accounts through this department. Such as-

• Current account.
• Savings account.
• Short Term Deposit Account (STD).
• Fixed Deposit Receipts (FDR).
• Special Deposit Pension Scheme (SDPS).
• Sonali Deposit Scheme (SDS).
• Education Deposit Scheme (EDS).
• Medical Deposit Scheme (MDS).

Current Account:

Current account is an account where the account holders can make numerous transactions within a working day. There is no transaction on the number of deposit and withdrawals from the current account within availability of funds. As the bank is under the obligation to repay this deposit on demand, on interest is paid in this account. Generally, current account is opened for businessmen and trades for easy transaction.

Requirements of Opening an Account:

There are some requirements that have to be completed for opening an account.

Proprietorship Firm:

There is account opening form for proprietorship firm provided by Sonali Bank. For this account, a customer must need to submit the following papers with the form:

• Introduction of the account.
• Two photographs of the signatories duty attested by the introducer.
• Copy of trade license.
• Seal of concern.

Partnership Firm:

There is account opening form for partnership firm provided by Sonali Bank. Introduction for running an account is given in this form.

Enclose Documents for partnership account:

• Introduction of the account.
• Two photographs of the signatories duty attested by the introducer.
• Partnership letter duty signed by all partners.
• Partnership Deed duty certified by Notary Public.
• Copy of Registration (if any).
• Seal of the concern.
• Update Trade License.

Limited Company:

There is an account opening form used for limited company. There are two kinds of limited company. The bank always takes precautions for opening this type of accounts. Several documents submitted by the clients should be checked carefully by bank to be legally in safe position.

Enclosed Document for Limited Co. Account:

• Introduction of the account.
• Two photographs of the signatories duty attested by the introducer.
• Signature and seal of the client.
• Trade license.
• Certified copy of memorandum and articles of association.
• Certificate of incorporation.
• Broad resolution for opening account duty certified by the chairman/ managing director.
• List of directors along with designation and specimen signature.
• Certificate from the registrar of join stock company is entitled to commence business (in case of public Ltd. Company.)
• Certificate from broad of investment (incase of joint venture or foreign )
• Work permit order from ministry of industry. (Incase of foreign nation.)
• Join venture agreement (incase of join venture.)

Savings Account (Individual/Join):

Savings account (SB) is means for the people of the people lower and middle classes, who wish to save part of their incomes to meet their future needs and intended to earn an income from their savings. From savings account the account holder can deposit money so many times the holder wishes. But the holder can not withdraw money more that two times in a week. Also the holder can not withdraw money more than 20,000 tk at a time without any permission of the bank. The holder is given an interest on their deposited amount after a certain period at a certain rate. The holders of this type of account are mainly students,   teachers, employees, householders. For opening of this type of accounts, the following requirements are necessary:

• Photograph attested by the introducer.
• An introducer of Sonali Bank.
• For joint accounts, signatures of all the account holders are necessary.

Short Term Deposit (STD):

STD account is same as current account. Here money is kept for a very short time. A notice is needed prior for withdrawal of money. Sonali Bank offers short time deposit to its valued customers. Short-term deposit is the deposit where the interest is paid on monthly basis.

Fixed Deposit Account:

There are deposits which are made with the bank for a fixed period of specified in advance. The bank does not maintain cash reserves against this cash deposit. And therefore, the bank offers higher interest rate on such deposits. These deposits generally constitute 50% or more of the total deposits. Usually, customers are allowed to open this account for a certain period of time and the rate of interest varies in accordance with the terms of the specified time. If any holder wishes to draw money before expire of time, he/she is not given the entitled interest rate.

Issuing Cheque Book:

The following procedures are maintained to provide a cheque book.

• At first the customer will fill up a requisition form.
• The pages of the cheque book under issue shall be counted to ensure that all the pages and bank requisition slip are intact. The name and account number shall be written on the cover page of the cheque book and its requisition slip.
• The name and account number of the customer shall be entered in the cheque book register against the particular cheque book series.
• Then the officer in charge signs the register, cheque book and the requisition slip.
• The cheque book is handed over to the customer after taking acknowledgement on the requisition slip and the register book.

A cover file containing the requisition slip shall be effectively preserver as vouchers.  If the ledger keeper notices any defect, he/she will make a remarked to that on the requisition slip and forwarding it to the cancellation officer to decide whether a new cheque book should be issued or not.

Procedure of Closing an Account:

A customer may close his/her account ant time by submitting an application to the branch. The customer should be asked to draw the final check for the amounts standing to the credit of his/her account less the amount of closing and other incidental charge and surrender the unused cheque leaves. The account should be debited for the amount of closing charge etc. And the authorized officer of the bank should destroy unused cheque leaves. In case of join account the application for the account should be signed by the joint account holder.

Interest Rate:

Sonali bank diversified its rate of interest on loan and advances in compliance with the interest rate policy declared by the government in 2005. To encourage the agricultural sector the rate of interest fixed to 2.0-16.0 percent and to increase the rate of industrial production and services industry, the rate of interest rate is fixed to 9.0-11.0 percent and 13.0 percent. Rate of interest of sonali bank is given below-

Table: Interest rate of Sonali Bank

[Source: activities of bank and financial institution, 2009-2010] 

Cash Section:

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

Cash Receiving Procedures:

The work of cash receiving counter is to examine the deposit slip. Depositor uses the prescribed deposit slip supplying by the bank for depositing cash, cheque, draft; pay order etc. in all types of deposit the teller must cheque the following things:

• The slip has been properly filled up.
• The title of the account and its number.
• The amount in figure and in words is same.
• Instrument signed by the depositor.
• Data of the instrument.

After checking all these things the teller will accept cash, cheque, draft, pay order etc. against deposit slip. The teller will place the cash in cash drawer according to denominations. The teller will place signature and affix “cash received” and record in the cash received register book against the account number. At the end of this procedure, the cash officer passes the deposit slip to the computer section for posting purpose and returns the customer’s copy.

Cash Payment Procedures:

In order to safeguard the position the banker has to observe the following precaution before honoring a cheque:

• A cheque must be locked whether it is an incomplete cheque.
• The playing officer should see whether the cheque is drawn on his/her branch.
• He must see whether the cheque is post dated or pre dated. A letter must not pay any post-dated cheque.
• The officer must carefully see the apparent tenor of the cheque. If it is mutilated or martially altered then the officer must not honor it.
• The officer must compare the signature of the cheque with the signature on the specimen card.
• The officer must verify the regularity of the endorsement.
• The officer may allow overdue against a cheque if prior arrangement is done with the bank.

Passing the Cheque:

After verifying the above-mentioned things the officer passes it to computer section for more verification. After that it is passed to the cash to make payment. By putting “pay cash” seal the cash officer make it clean to pay. The cash officer gives the cash amount to the holder and record in the paid register.

Dishonor of Cheque:

A banker can dishonor a cheque in the following situation:

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

Deposit Section:

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

• Post kind of transactions.
• Provide on demand report.
• Cheque maintenance.
• Preparation of day transaction position.
• Preparation of closing monthly transaction position.

Bills and Clearing Section:

For safety and security in financial transaction people use financial instrument like DD, PO, and cheque etc. commercial banks collect these financial instruments on behalf of their customers. This process that the bank use to collect and clear on behalf their of their customer’s account, is known as clearing and collection. At Dhaka Bangladesh Bank plays the role of Clearing House for all banks. The area where Bangladesh bank is not available sonali bank plays the role of clearing house on behalf of Bangladesh bank. The main function of this section is to collection instrument on behalf of the customers through Bangladesh bank clearing house, outside bank clearing (OBC), Inter branch clearing (IBC). Upon receipt of the instruments this section examines the following things:

• Whether the paying bank within the Dhaka
• Whether the paying bank out side of Dhaka
• Whether the paying bank is its own branch.

Outward Clearing:

Outward clearing held if the instruments are to collect by specified branch within the Dhaka city and not for their own branch. Here the following procedures are followed:

• Receive of the client duty signed instruments.
• Checking for any apparent discrepancy.
• Clearing stamps are affixed on the instrument and on the deposit slip.
• Branch code number also affixed on the instruments
• The authorized signature endorses instruments.
• Particulars of the instruments and vouchers are recorded in the “outward cleaning” register.

Remittance through a Foreign Bank:

The remitter can send money through any financial institution which branches in both countries. In this case, the bank in Bangladesh receives the amount from its foreign branches and then transfers it to the bank where the client wishes to draw the money. Here the bank needs to fill up a C’ from if the amount of money is $2,000 or more. It is done for the declaration for remittance received from foreign country in the amount of $2,000 or more.

Local Remittance:

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

• Pay-Order (PO).
• Demand Draft (DD).
• Telegraphic Transfer (TT).
• Mail Transfer (MT).

Pay- Order (PO):

Payment order is an instrument that is used to remit fund within a local area i.e. within the same clearing house area.  For example, if we want to remit fund from one place of Dhaka to another place, we generally use payment order.

Accounting treatment: PO by Cash:

Accounting treatment: PO by Cheque:

Demand Draft (DD):

It is an instrument that is drawn on one banker office to another or other banker’s branch to pay certain sum of money to the named person. It is generally used to remit fund from one corner of the country to another. For example, if we want to remit fund from Dhaka to khulna we use DD. DD is very popular instrument for remitting money from one corner of the country to another.

Difference between Pay- Order and Demand Draft: 

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

• In case of demand draft both the payer and payee need to have accounts. But there is no certain rule for pay order.
• PO is used in the same clearing areas; DD is used for all kinds. DD can not be done in the same clearing area.
• DD is drawn on a certain bank office. But there is no certain rule for pay order (PO).

Telegraphic Transfer (TT):

Some times the remitter of the fund wants the money to be available to the receiver’s account immediately. In that case bankers arrange to remit fund telegraphically. Here the remitter bears the additional charge for telex/telephone.

Accounting treatment for (TT):

Mail Transfer (MT):

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

Account Section:

This is a very much crucial section for each business concern. As such this is a crucial department for a commercial bank. Records of all the transactions of every department are maintained here. Accounts section verifies all financial amounts and contents of transactions. Every working day all the account is balanced and reconciled to remove any discrepancy.    

The overall activities of account section are as follows:

• Record all transaction in the cash book.
• Record all transaction in general and subsidiary ledger.
• Prepare daily fund function, weekly position, periodic statement of affairs etc.
• Prepare necessary statement for reporting purpose.
• Make salary statement and pay salary.
• Pay all expenditures on behalf of the branch.
• Branch to branch fund remittance and support for account treatment
• Budgeting for branch.
• Make charge for different type of duties.

Customer Service:

To ensure qualified customer service sonali bank has started in addition to computerization corporate client service and one stop service. To facilitate the foreign exchange activities Sonali bank has launched SWIFT (Society for Worldwide inter bank Finance and Telecommunication) system in its 12 branches. The bank has launched website, Reuter service, Internet service, and Ready cash service. The bank has taken a plan to launch shared ATM system in various important places. Already, it has given work order for this.

Computerization:

Sonali Bank starts its computerization process at December, 1989. After that it expands its computerization process by establishing RISE system (RS 16000) OS/2, LAN etc. up to this time 113 branches are under computerization system. Beside this “one stop” is begin given in its 56 branches. Moreover,

• Foreign exchange business and standard of customer services is begin increased and speed up of information flow by using the computerization system LAN (Local Area Network) and WAN (Wide Area Network).
• It has established 7 subsidiary companies in United States named Sonali Exchange Company Incorporated (SECI) and 5 officers of Sonali Bank, UK Ltd. Establish with 49% share with govt. in UK so that Non-Resident Bangladesh can send their money to Bangladesh through a vital channel as fast as possible.
• Recently SECI established a web based Remittance Software in United States.
• Sonali Bank Wage Earners Corporate Branch established electronic link with its branch in Middle East Branch through which remittance is to be sent. Besides this 5 electronic link is in implementation process in Oman, Qatar and Bahrain.

IFRMS (Instant Financial Reconciliation and Messaging System) has enabled the bank to remit fund by DD, TT, Inter branch Debit/ Credit advice. This has been started as an experimental but this system will be started among 300 branches soon.   

General advance of Sonali Bank

Loan and Advance Section:

For any commercial bank deposit and loan are two important sections. To service in the market banks have deal with the deposited money. They have to use the deposit efficiently in profitable sector. So dealing with the loan is very crucial for the bank. Up to 30^th June, 2006, sonali bank had 645643 million taka distributed loan and by that time it recovered 91205 million taka. If we analyze sector wise loan, we can see that up to 30^th June 2006 sonali bank distributed loan on agricultural sector Tk.2850 million and recovered 2870 million. In industrial sector, it distributed Tk.2057 million and recovered Tk. 2031. And in other sectors it had distributed loan of Tk. 640736 and recovered Tk. 86304.

For economic development of the country, reduction of unemployment, reduction of import dependency and to be self sufficient sonali bank continued to distribute loan in this sector. From 1^st January to June 30^th the bank had 36 projects in this sector the monetary value of which is Tk. 1425 million.

From 1973-74 sonali bank has been providing agricultural loan in rural areas. The bank is distribution this loan through its 707 branches in 1639 unions allover the country. From 1977 beside krishi bank, sonali bank is also distributing special agriculture loan. Up to this sonali bank has distributed Tk. 24868 million of which Tk. 15782 is still due.

Table-A: sector wise loan fo Sonali Bank.

[Source: activities of bank and financial institution, 2009-2010]

General Advance is as follows:

Cash credit (CC):

1. Hypothecation: here, the goods are available in the shop.
2. Pledge: here the goods are available in the godown.

If the party is disabling to pay the loan then the bank can take those goods which are available in the shop or in the godown.

Security: these are two types of security. These are given below:-

1. Collateral security or sohayok jamanath. In this case, land building; showroom etc is the registered mortgage.
2. Primary security: here, the goods of the show room or products of the mills, factory etc are the security in this bank.

If the parties are disable to pay the loan then the bank at first take the primary security. If the primary security cannot fulfill the banks need then bank take the collateral security. Any one who wants to take any loan must open an account in that branch.

Two system of cash credit (CC):

1. Trading concern and
2. Manufacturing.

Over draft (OD):

The person who has an account like FDR, DPS, and SDPS etc he can take loan against this account in this bank. The person has to pay his money with in one year. His can take 80 percent loan of the total amount of FDR and DPS and 90 percent of SDPS. In this case FDR, DPS, SDPS treated as a bank security.

Consumer credit:

In consumer credit bank provide at least one lack taka. As a loan bank provide this consumer credit loan to buy home furniture to the party. In this case, the parties who take this loan make a grantor.  The grantor work as a security of the bank the grantor must be a government employee and a known person of the party.

Teacher’s loan:

Sonali bank also provide teachers loan. In which branch the teacher get his salary he can take this type of loan from that branch. One lack taka he can take as a loan and he has to pay this money within one year.

Small loan: 

This type of loan treated as a latest loan of the bank. A grantor works as a security in this type of loan. For some purpose any one can take these types of loan. Such as-

1. Pharmacy.
2. Garments products.

Glossary shop.

1. Tailoring.
2. Phone, fax, Photostat.
3. Restaurant, hotel.

• Jew alary.
• Hardware.

1. Cosmetics.
2. Any kind of department store.
3. Various types of trading business.

• Beauty parlor.
• Market of agricultural product.
• Internet service.

In this above cases, bank provides 0.50 lac to 50 lac taka as a loan. Again, the bank provide 5 lac to 10 lac taka for the following purpose-

1. Shall industry of bread, biscuit etc.
2. Juice, jam, jelly, souse, etc products produced industry.

Printing press.

1. Garments accessories industry.
2. Embroidery industry.
3. Packaging industry.

• Kutir silpo (home based).
• Various handicrafts.

1. Light engineering industry.
2. Dairy firm.
3. Furniture industry.

• Diagnostic center.
• Shoe industry.
• Internet service.

1. Produced based any types of industry.
2. Service based any types work.

Sonali bank staff loan:

Staff of sonali bank can take this type of loan. Sonali bank provide staff loan in various purpose among the sonali bank staff.

These are given below:

1. SH& BL or sonali bank house building loan. Sonali bank also provide loan for flat.
2. MCL loan or motor cycle loan.

Computer loan.

Here, interest rate of loan is very small. Interest rate is 5 percent. Bangladesh bank set up the interest rest. Security of house building or flat is land the amount of computer loan is 75 thousand taka.

In any staff is disable to pay his loan then the bank taking it from his provident fund.

Bank grantee:

If any party wants to take gas line in his industry from titas gas then titas gas want a bank grantee from the party. sonali bank also provide service as a bank grantor. In the party is disabling to pay money to the titas gas then titas gas collect money from that grantor bank and the bank has to pay that money to titas gas. After that the bank collects that amount of money from that party. sonili bank also service as a bank grantor in custom duty.

General House Building (GBL):

GBL means general house building loan. It is open for the general people. Any one can get this type of loan. In this case, the party has to mortgage his land as a security of the loan. Now a day’s sonali bank doesn’t provide this type of loan.

General Banking Activities Of Sonali Bank Limited At Ramna Corporate Branch.

As I have worked  Sonali bank Ltd. At Ramna Corporate Branch for three months in general Banking Department, I have worked the following sections. I have taken help in making report from the following sections’ officers with whom I work and from my knowledge I gathered during Internship period. The sections are given bellow:

1. Account Opening Section
2. Cash Section
3. Clearing Section
4. Pay Order Section
5. Deposit Section

 The activities of each section are bellow:

Activities of Account Opening Section:

Account opening is the gateway for client to enter into transaction with the bank.It is the foundation of banker-customer relationship. A customer can open different type of account through the department. The following types of account are opened here

• Current Account
• Savings Account
• Short Term Deposit Account(STD)
• Fixed Deposit Receipt(FDR)
• Special Deposit Pension Scheme(SDPS)
• Sonali Deposit Scheme(SDS)
• Education Deposit Scheme(EDS)
• Medical Deposit Scheme(MDS)
• Double Deposit Scheme(DBS)

Requirements for opening Savings Account:

• Fill up Savings Account form and Specimen signature
• Photocopy voter ID card attested by account opening officer after verifying original voter ID of Account holder.
• If s/he is an employee, Photocopy of Employee’s ID card.
• If s/he is a business man, Visiting Card, Address ,copy of trade License.
• Two copies of Passport size photography of account holder dully attested by the introducer
• Two copies of Passport size photography of nominee dully attested by account holder.
• Minimum Tk.500 to be deposited.

The account holder will be provided  a cheque book of 10 pages. Bank charge is Tk.300 maintenance charge+ Tk45 VAT is deducted half yearly i.e. January1 up to Jun30

Requirements for opening current Account: Firstly Fill up current account form. For private limited company, Update trade license is a must. In case of joint holders certificate from joint stock company,. For Public Limited Company Certificate from joint stock company is a must and other papers mentioned above.

The client will be provided a cheque book of 25 upto 50 pages. Bank charge is Tk. 500 half yearly.

Activities of Cash Section:

It is an important part of General Banking Department. Here cash of Current and Savings accounts receives and also payments are made either in Cash or transfer to respective Account but Govt Chalan only receive or transfer to Govt. account. No commission is given to the bank in case of Govt. Chalan as per govt. rules but in case of Electricity and Wasa bills, Cash is received and paid to respective accounts such as DESCO account for Electricity bills and 2% commissions are deducted. Govt. prize bonds  are also purchased and sold. In all types of vouchers, signature of a cashier and an officer is required.

Activities of Clearing Section:

Clearing section is complex section of bank. Cheque of other banks or same bank is received and payments are deposited to Sonali Bank’s Customer  accounts. When cheques are deposited at clearing section and a slip of account details of the account holder is attached with the cheque, then that cheques are sent to Clearing House in Bangladesh bank for clearance where all banks’ delegators present there and  cheque of other banks  are presented to respective delegators. If the cheques are in favor of Sonali Bank’s other branches, then the cheques are given to other branche’s delegator.The delegators scan the cheque(MICR Cheque) through computerized scanning system to further verify at their own branches for settlement. After one day when they meet again if all information such as cheque number, Signature of the account holder and amount payable etc. are correct, then the respective delegators credited the amount to name of account holder of Sonali Bank. Some cheques may be dishonored under 29 criteria. Some important of them are:

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

1. Insuficient Fund.
2. Amount in figure and word differs.
3. post dated/ undated cheque.

4. Drawers signature differs/ missing.
5. Material alteration-payee name/amount/date/account no.
6. Account closed/dormant/blocked.
7. MICR (Magnetic Ink Character Recognition) data and Image miss-matched.
8. Cheque and advice data mismatch.
9. Credit limit exceeded
10. Cheque not activated/intimation not received.
11. All clearing seals required are not well completed.

Activities of Pay Order Section:

In any type of pay order, At first vouchers are filled up and amount is deposited in cash section, then  pay order is written in the Section to respective branch account of Sonali Bank  of respective person .The person who sent Pay Order must sign the back part of the Pay Order Paper. The payment is instantly made to drawer’s account.

The commission that the bank get as per Bangladesh bank rule is given below:

In Case of Demand Draft(DD) and Telegraphic Transfer(TT),Same vouchers are filled up and amounts are received at cash section. In case of DD the bank write DD  and DD paper is provided to the respective customer.DD Advice is provided against DD.In case if TT The bank write an entry in the registered book  and give a test number to the respective customer to the respective branch account. Some TTS are maintained Computerized system where online facilities are available in the respective branch and some are Telephonic System by manager.

The commissions are as follow:

 Activities of Deposit Section:

Sonali bank deposits against many accounts. They are Fixed Deposit Receipts(FDR), Sonali Deposit Account(SDS), Residential Deposit Scheme(RDS, Education Deposit Scheme(EDS),Medical Deposit Scheme (MDS),Double Benefit Scheme(DBS).The Principal and interest payable of different Deposit Schemes are outlined below:

Fixed Deposit Receipts (FDR):

The amount of interest at different time interval of the principal amount which are applied from 09 Feb 2012 onwards is as follow

 Sonali Deposit Scheme (SDS):

C.Medical Deposit Scheme (MDS):

Residential Deposit Scheme (RDS): 8% interest is paid on taka 500 up to tk10,000 deposited at 10 years maturity.

Education Deposit Scheme (EDS):8% interest is paid on taka 500 up to tk10,000 deposited at 10 years maturity.

Summary of Findings:

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

• As a commercial bank, Sonali Bank still follows the traditional banking. This organization still concentrates on production oriented approach.
• There is a training institution and a human resource division of Sonali Bank to run the activities of human resources.
• It provides compensation according to the government pay scale
• Sometimes inefficient allocations of resources have created a huge amount of Bad debt.

• Lack of adequate, update, and accurate information from the management information system
• There is lack of modern technological advances to provide better service to respective customers.
• There is a limitation of trained personnel.
• There is limitation of technological support such as available ATM booths at different places.

Conclusion:

Sonali Bank is the largest bank as well as the largest employer in both the public and private sectors in Bangladesh. The bank is playing an important role in the socio-economic development through the development of industrial sectors by providing all the conventional banking services as well as some specialized financing activities to the economy.

So in conclusion it can be said that every organization has its positive as well as negative consequences and in case of sonali bank existence of the later one is less than the earlier one and as the management is determined to reach the pick of success it seems that in near future the negative will be eliminated.

Recommendations:

The recommendations are given below:

Develop Service Quality:

Banking is a service-oriented marketing. Its business profit depends on its service quality. That’s why the authority should always be aware about their service quality.

Enhance Training Program:

• To provide superior quality service to customers it is necessary to have a trained team in the organization or an institution. For this reason, the bank should recruit more fresh, bright and energetic persons such as BBA and MBA etc. professional degree holders.
•   Now a day’s world is going on very fast. Now most of the banks provide online customer service system. Employees require more training to better understand online banking system.

Develop I.T. Sector:

• In general banking department it is necessary to implement modern banking process instead of traditional system. It should be more computerized.