Introduction:
Sonali Bank is governed by a Board of Directors consisting of 7(seven) members headed by a Chairman, who is a renowned economist and a former Vice Chancellor of a reputed University. The other members are distinguished representatives from both private and public sectors. The Bank is headed by the Managing Director (Chief Executive), who is a well-known Banker and a reputed professional. The head office of the bank along with its corporate structure is located at Motijheel, Dhaka, and the main commercial center of the capital.
(A) History Of The Organization
Sonali Bank, the largest & leading commercial bank of the country, came into being in 1972 immediately after the emergence of Bangladesh as an independent state. A fully state-owned enterprise, the bank has been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy. Sonali Bank singularly enjoys the prestige of being the agent of the Central Bank of Bangladesh in such places where the guardian of the money market has chosen not to act by itself.
Some notable features of the Bank are as follows:
| Rank |
| Country Rank : 1 (One) Asian Rank : 282 (Asia week, September 14, 2001) World Rank : 925 (The Banker’s Almanac, volume-3, July 1999 ) |
| Capital Structure: |
| Authorized capital : US$ 184.30 million Paid up capital : US$ 60.30 million Reserve capital : US$ 40.18 million |
| Branches and Subsidiaries: |
| Total branches …………………………………………………………1185 Branches in Urban areas ………………………………………………. 490 Branches in Rural areas ……………………………………………….. 695 Overseas branches ……………………………………………………… 2 Subsidiary branches/booths in UK& USA …………………………….. 11 Representative Office in K.S.A. ………………………………………… 1 Correspondents/agents ………………………………………………… 2000 Employees ………………………. 26,046 (Officer-12,171 and staff- 13,875)
|
| Contact Address of the Bank: |
| SONALI BANK 35-44, Motijheel C/A, Dhaka -1000 Tel: 88-02-9550655, 9565364 Fax: 88-02-9561410 |
| E-mail Address: |
| sbhoitd@bttb.net sbhoid@bdmail.net sbhorcd@bttb.net.bd sbhoicd@bttb.net |
| SWIFT Code: “BSONBDDH” |
| Corresponding Banking: |
Phone | Fax No. | ||
| Deputy General Manager | 880-2-9565364 | 880-2-9561410 | sbhoid@bdmail.net |
| Import Finance: |
Phone | Fax No. | ||
| Deputy General Manager | 880-2-9551526 | 880-2-9561410 | sbhoid@bdmail.net |
| Export Finance: | ||||
Phone | Fax No. | |||
| Deputy General Manager | 880-2-9552007 | 880-2-9561410 | sbhoid@bdmail.net | |
| Trade Financing: | |||
Department | Phone | Fax No. | |
| Deputy General Manager | General Advance Division-3 | 880-2-9550201 | 880-2-9561410 |
| Rural Banking: |
Department | Phone | Fax No. | |
| Deputy General Manager | Rural Credit Division – 2 | 880-2-9550483 | 880-2-9561410 |
| Home-bound Remittance: | ||
| Address | Phone | |
| Deputy General Manager | International Division-2 Sonali Bank,Head Office Dhaka, Bangladesh | 880-2-9552007 |
| Deputy General Manager | Wage Earners Corporate Branch, Dilkusha C/A, Dhaka – 1000, Bangladesh | 880-2-9552080 |
| Industrial Financing: | ||||
| Industrial Credit Division – 1 | ||||
Phone | Fax No. | |||
| Deputy General Manager | 880-2-9551011 | 880-2-9561410 | sbhoicd@bdmail.net | |
| Industrial Credit Division – 2 | |||
Phone | Fax No. | ||
| Deputy General Manager | 880-2-9568562 | 880-2-9561410 | sbhoicd@bdmail.net |
(B) Objectives Of The Organization
The main objective of the organization is to provide all types of banking services at the door of the people of the nation. The bank also participates in various social and development programs and implements policies and commitments to the Government.
ROLE & FUNCTIONS Of SONALI BANK
In our country’s economic acts Sonali bank is considered as a most important bank. Sonali bank is doing so many things for our country. Commercial as well as all types of work is done by the Sonali bank for the general people as own. So based on proceeding nature, it is not possible to divide this bank perfectly. Even so for the convenient of the analysis this bank is divided into four parts.
General Banking
Personal Banking , Taking Deposit & Giving Interest
The main function of the Sonali bank is to collect money from the general people, various
institutes or organizations as deposit and give them interest on that money by various accounts. This bank collects current, saving and permanent accounts deposit. But they give more interest on saving account than the current account. This bank generally doesn’t pay any interest on the current account.
Sonali Bank extends all the major personal banking facilities and services to its customers with its skilled manpower and largest network of around 1300 branches covering all the urban and remote rural areas of Bangladesh.
Deposit Schemes:
Name of Scheme | Interest Rates( Floating ) |
Current Deposit | Nil |
Savings Deposit | 3.50% |
Short Term Deposit | 2.00% |
Fixed Deposit : 3 Months maturity 6 Months maturity 12 Months maturity 24 Months maturity 36 Months maturity ( Maximum 5 years ) | 5.25% 5.50% 6.00% 6.25% 6.25% |
Sonali Bank has been providing prompt and best customer services through its 114 computerized branches all over the country.
An extensive computerization program is in action to cater to the competitive growing demand of the time.
165 more branches is planned to be computerized by 2005.
Personal Services :
Sonali Bank provides Local & Foreign Remittance in quickest possible time. Foreign remittance is available in both T.C. & Taka draft.
Transfer of fund from one branch to another by
| Demand Draft |
| Mail Transfer |
| Telegraphic Transfer |
Grant Loan & Collecting Interest
Sonali bank gives the deposited money of the general people to various people, institute and traders based on their need by a fixed interest rate and they also take interest from them. They take a fixed security amount against the loan. This bank takes more interest on loan than the interest which is given to the general people on their deposited money.
Creation Medium Of Exchange
As a big commercial bank in the Bangladesh, they make a convenient and feeless transition by offering cheque and bank-draft etc. That is why customers can finish their exchange very easily.
Honor Of Cheque
Whenever the depositors want the money according to their cheque, the bank is bound to pay the money to the customer. It is also their important work.
Creation Of Loan Deposit
This bank not only gives the loan but also do so many transitions. They make various loans by the deposit and increase the utility.
Taking & Giving Money
Sonali bank collects bill, money laundering, cheque, and bond paper etc money and various types of dues from the customers.
Money Transfer
Sonali bank helps the customers to transfer their money from one place to another place by the money laundering, mail transfer and telegraphic transfer.
Acceptance Of Bill Of Exchange
This bank is given power from the customer to give the exchange bill.
Buying & Selling Securities
Sonali bank buy-sell share, security, bond, loan paper under the interest.
Role As A Trustee
Some times this bank does as a trustee of the customer wealth.
Representative Of Bangladesh Bank
The area where there is not any branch of Bangladesh Bank there Sonali bank does their work as a representative of Bangladesh Bank.
International Banking
Sonali Bank’s expertise in International Banking has a record of in-house growth over more than half a century. Its pioneer role in handling foreign trade and foreign exchange transactions ever before independence of the country still remains unchallenged. With wide network of branches at home and also a large number of correspondent banks world-wide it is singularly handling the largest volume of export-import business including home-bound remittances.
Sonali Bank’s pioneer and extensive role in international banking has enabled it to broaden and deepen its base of qualified professionals for extending expert service to the valued clients.
Products & Services :
| Export Credit (Pre-shipment & Post shipment). Facilitating Supplier’s Credit. LCs (Letters of Credit) Guarantees in Foreign Currency Bill Purchasing/Discounting Remittance, collection, purchases & sales of Foreign Currency & Traveler’s Cheques. NRAT (Non-Resident Account in Taka) NFCD A/c (Non-Resident Foreign Currency Deposit) RFCD A/c (Resident Foreign Currency Deposit) Convertible and Non-convertible Taka Account Forward contracts. Correspondent Banking Relations. |
The products and services are provided through a well-established large network of authorized branches all over the country.
Corresponding Banking :
Correspondent banking encompasses the following:
| Strengthening existing and establishing new correspondent relationship with foreign banks and Financial Institutions world over Attending to problems of the correspondent banks Helping correspondents in marketing and distributing their products
|
Import Finance :
Sonali Bank supports its customers by providing facilities throughout the import process to ensure smooth running of their business. The facilities are:-
| Import Letter of Credit. Post Import Financing (LIM, LTR etc). Import collection services & Shipping Guarantees. |
Export Finance :
Sonali Bank offers extra cover to its customers for whole export process to speed up receipt of proceeds.The facilities are:-
| Export Letters of Credit advising . Pre-shipment Export Financing Export documents negotiation Letter of Credit confirmation |
Guarantee in Foreign Curency :
Sonali bank issues guarantee (Bid Bond/Performance Bond/Advance Payment Guarantee) at the request of Bangladeshi exporter through our foreign Correspondent Banks.
Guarantees (Bid Bond/Performance Bond/Advance Payment Guarantee) against Counter Guarantee of foreign correspondent banks in favour of Bangladeshi beneficiaries are also issued.
The Government has declared a number of facilities in the Export-Import Policy which, in brief, are as follows:-
| Financial incentives General incentives Infrastructure facilities, specially in Export Processing Zone Concessional rate of cargo fair Special facilities to sub-contracting export Higher annual ceiling for sending specimen of exportable goods. Facilities for import of specimen for product development Multiple entry visas for foreign importers and investors. Facilities for attending to market development and international fair Awarding national trophy and nominating CIP Deemed export facilities Allowing export/import without LC in special cases Liberal terms for import of industrial raw materials of export oriented industries and Incentive for using local raw materials |
Home Bound Remittance
More than 40% of home bound remittances are routed through Sonali Bank for its excellent personalized services and wide network of foreign inlets and domestic outlets. Remittance can be sent to all the 1294 local branches of the Bank spreading over the urban and remote rural areas of Bangladesh. To facilitate home bound remittance the Bank has two subsidiary companies, one in the USA and another in the UK. Besides, it has one representative office in Saudi Arabia and 23 agency offices in other Middle Eastern Countries.
Sonali Bank has made arrangements to deposit/pay remitted money to the beneficiaries within 48 hours on receipt of the remittance from abroad.
Facilities For Wage Earners
| Bangladeshi national/Bangladesh origin dual citizen working abroad may open Foreign Currency account (F.C. A/C) in US Dollar and Pound Sterling without initial deposit Nominee can operate the account Balance in F.C. A/C can be utilized for import of goods Balance available in the F.C. account may wholly or partially be sent abroad Foreign currency brought in by Wage Earners can be deposited in the F.C. A/C. Wage Earners Development Bond in Taka can be purchased from the balance of F.C. A/C Non-Resident Foreign Currency A/C ( NFCD A/C) can also be opened by Wage Earners F.C. A/C & NFCD A/C may be maintained as long as the account holder desires
These accounts can be opened from abroad on submission of required papers duly attested by our Embassy / Branch / Representative office abroad.
|
Opening of NFCDA Account :
An NFCD account can be opened without any initial deposit. The account opening form along with copy of passport, two photographs of the applicant duly attested and verifying his signature in the account opening form by designated official of any of the following offices be sent to the concerned designated (Wage Earners) branch:
| Bangladesh Embassy/Consulate Office Sonali Bank branch/ SECI in the USA / Sonali Bank (UK) Ltd. in the UK / Representative office in Saudi Arabia. |
For details please contact with your nearest Bangladesh Embassy/Consulate Office/SECI in the USA/Sonali Bank (UK) Ltd. in the UK.
Application Form Of Opening NFCDA Account :
The Dy. General Manager
Sonali Bank
Wage Earners’ Corporate Branch
Dhaka.
Dear Sir,
SUB: REQUEST FOR OPENING OF NFCD ACCOUNT IN THE NAME OF JOINT
NAME OF _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ FOR £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ FOR A PERIOD OF_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
I would request you to please arrange to open a Non-Resident Foreign Currency Deposit
Account with you in the above noted name for £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ for a period of _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ by debit to my FCAD / FCAP _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _____maintained with your Branch.
Thanking you,
Yours faithfully
SIGNATURE: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
NAME _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
ADDRESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Received a complete set of NFCD A/C opening forms for £/$. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ from Mr./Mrs. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _
P. DEPUTY GENERAL MANAGER
Procedures for sending remittance from USA through Sonali Exchange Co. Inc.(SECI)
The remitter will simply fill in prescribed form for the remittance and will deposit the remittable amount of money along with requisite charges at his nearest SECI office in the USA. The deposit of fund can also be made by cheques through post.
The remitter may purchase TAKA/ U.S.Dollar Drafts from SECI office at Manhattan, Astoria, Brooklyn and JacksonHeights in New York and at Atlanta and Los Angeles drawn on designated branches of Sonali Bank in Bangladesh. Alternatively at the remitter’s option, SECI will transmit payment instruction on the same day to its Dhaka office who will dispose of the remittance in Bangladesh quickly through the nationwide network of Sonali Bank and other Commercial Banks of Bangladesh.
SECI has the privilege of providing quick services to Bangladeshi Expatriates with its computerized system in the USA with direct link with Dhaka.
SECI assures safe and quick payment of remittances to the beneficiaries in Bangladesh.
Remittance from UK through Sonali Bank (UK) Ltd
The remitter will simply fill in prescribed form for the remittance and will deposit the remitable amount together with charges at his nearest Sonali Bank (UK) Ltd. office in the UK. The deposit of fund can also be made by cheques through post.
Sonali Bank (UK) Ltd. offices in London, Birmingham, Luton, Manchester and Bradford route remittances through Wage Earners’ Corporate Branch, Dhaka, Wage Earners’ Corporate Branch, Chittagonge, Dargagate Branch, Sylhet and Foreign Exchange Branch, Moulvi Bazar. With nationwide network of Sonali Bank branches remittance are quickly disposed of.
To help increase foreign remittances, Sonali Bank has established Taka drawing arrangements with 23 (Twenty Three) Banks / Exchange Companies. Taka drawing arrangements with 6(Six) more Exchange Companies are under process.
Efforts are being made to establish Taka drawing arrangements with many more Exchange Companies all over the world.
COUNTRY WISE LIST OF THE EXCHANGE COMPANIES
| Bahrain |
| BAHRAIN FINANCING COMPANY P.O. BOX NO.243, MANAMA, BAHRAIN TELEX NO-8416 BFC BN, FAX NO- (973) 223495 ZENJ EXCHANGE CO. P.O. BOX NO.236, MANAMABAHRAIN TELEX NO.8478 ABUL BN, FAX NO.(0973) 214405 |
| KSA |
| AL-RAJHI COMMERCIAL FOREIGN EXCHANGE P.O. BOX NO.4514, JEDDHA, K.S.A. TELEX NO-606250/2 ARAJ SJ, FAX NO-6716419/6723220 AL-RAJHI BANKING & INVESTMENT CORPORATION P.O. BOX NO-28, RIYADH-11411, K.S.A. TELEX NO-(04795)403539 RAJHI SJ /406317 RAJHI SJ/401464 RAJHI SJ, FAX NO-_9661) 4601519/4600922 BANK AL-JAZIRA KHALED BIN AL-WALEED STREET, P.O.BOX NO.6277, JEDDAH-21442, K.S.A. TELEX NO.601574 HJAZ SJ /601574/1 HJAZ SJ, FAX NO.6532478 |
| Kuwait |
| KUWAIT BAHRAIN INTERNATIONAL EXCHANGE CO. P.O. BOX NO.26926, SAFAT-13130, KUWAIT. TELEX NO.23661 KT, FAX NO.2431000 AL-MUZAINI EXCHANGE CO. P.O. BOX NO-2156, SAFAT-13022, KUWAIT TELEX NO-22129 AL MUZAIZI / 22432 AL MUZEX, FAX NO-(00965) 241817 OR 2451800
BAHRAIN EXCHANGE COMPANY P.O. BOX NO.29149, SAFAT-13152, KUWAIT TELEX NO.31136 BAEXCO KT, FAX NO.(965) 2401859 DOLLARCO EXCHANGE CO. LTD. P.O. BOX NO.26270, SAFAT13123, KUWAIT TELEX NO.44741/30226 DOLFEX KT, FAX NO.00965 2412788 NATIONAL MONEY EXCHANGE CO. P.O. BOX NO.22424, SAFAT-13085, KUWAIT TELEX NO.30449 KT, FAX NO.2462682 OMAN EXCHANGE COMPANY LTD. P.O. BOX NO.26057 SAFAT, KUWAIT TELEX NO.OMEXCO 44344/ OMEXCO 44848 KT, FAX NO.2426703 THE CITY INTERNATIONAL EXCHANGE CO. P.O. BOX NO.21804, SAFAT-13079, KUWAIT TELEX NO.44167 CITEX KT, FAX NO.(964)240731 |
| Malaysia |
| MAY BANK 100, JALAN TUN PERAK, 50050, KUALA LUMPUR, MALAYSIA TELEX NO. MA 32837, FAX NO.03-2302611 |
| Oman |
| OMAN BANGLADESH EXCHANGE COMPANY P.O. BOX NO.994, POSTAL CODE NO.114, MUSCAT SULTANATE OF OMAN TELEX NO.3291 OBEC ON, FAX NO.7735141 GULF OVERSEAS EXCHANGE CO. P.O. BOX NO.3931, RUWI-112 SULTANATE OF OMAN TELEX NO.3643 GOECOMAN ON, FAX NO.454232 / 7730202 BANK MUSCAT SULTANATE OF OMAN, FAX NO.(968) 705506 NATIONAL BANK OF OMAN P.O. BOX NO.751, RUWI-112 SULTANATE OF OMAN, TELEX NO.3281 NBO ON FAX NO.707781 |
| Qatar |
| EASTERN EXCHANGE ESTABLISHMENT P.O. BOX NO.454, DOHA, QATAR. TELEX NO.4774 EBFO DH, FAX NO.(0974) 4431314 |
| UAE |
| THOMAS COOK AL ROSTAMANI EXCHANGE COMPANY P.O. BOX NO.10072, DUBAI, U.A.E. TELEX NO.47482 T COOK EM, FAX NO.(04) 2286822 MASHREQ BANK PO. BOX LNO.10955, ABU DHABI U.A.E. TELEX NO.45674/45429 MSHQCM EM, FAX NO.02-5122115 U.A.E. EXCHANGE CHNTRE P.O. BOX NO.170, ABU DHABI U.A.E. TELEX NO.24130 EXCENT EM, FAX NO.211447 / 312030 HABIB & AL-MANSOOR EXCHANGE CO. P.O. BOX NO.2370, ABU DHABI, U.A.E. TELEX NO.24358 HALMEX EM, FAX NO.00971-2-6225810 00971-2-6221547 WALL STREET EXCHANGE CENTRE P.O. BOX NO.3014, NAIF ROAD DEIRA, DUBAI U.A.E. TELEX NO.48313 PIJET EM, FAX NO.267420 / 252673, 2286533/2252673 |
The Corporate and District Head Quarters branches are authorized to make payment of Taka draft directly. Taka draft may also be paid by collection through other branches of Sonali Bank.
Government of the People’s Republic of Bangladesh has decided to issue the US Dollar Investment Bond with effect from 1st November 2002.
Eligibilityofthe Purchaser:
The Bond may be issued in the name of a holder of a non-resident account against remittances from abroad to the account.
Issuing Branches :
Sonali Bank Wage Earner’s Corpt. Branch,Dhaka
Sonali Bank Dhaka Cantt.Corpt. Branch, Dhaka
Sonali Bank Wage Earner’s Branch,Ctg.
Sonali Bank Khulna Corpt. Branch, Khulna
Sonali Bank Dargagate Corpt. Branch, Sylhet
Sonali Bank Foreign Exchange Branch, Moulovibazar
Salient Features of the Bond :
Maturity Period: 03 Years.
Interest Rate: 6.5 % (Fixed) Per Annum.
Interest may be drawn on half yearly basis.
Principal & Interest will be payable in US Dollar.
Principal & Interest may also be paid in Bangladesh Currency on option.
The Principal & Interest shall be free from income-tax.
On maturity principal amount may be re-invested or repatriated abroad in Foreign Currency.
Denomination of Bonds :
US $ 500 · US $ 1000 · US $ 5000 · US $ 10,000 · US $ 50,000
Limit :
A purchaser can purchase Bond for minimum of US $ 500 and any amount in multiples of US $ 500 without any maximum limit.
Premature Encashment :
The Bond may be encashed before maturity at following rate of interest:
Encashment | Interest payable |
Within one year from the date of issue. | No interest |
After completion of one year but within two years | 5.5% |
After completion of two years but within three years. | 6.0% |
After completion of 3 years. | 6.5% |
Nominee :
The Purchaser shall appoint a nominee to receive the value of the Bond & Interest payable thereon in the event of death of the holder.
Additional Benefit :
A purchaser having purchased Bond/Bonds totaling US $ 1,000,000 (One million) or above will be treated as C.I.P
Replacement :
In case a Bond is lost, stolen, destroyed, damaged or defaced there is provision
for issuance of duplicate Bond.
Government of the People’s Republic of Bangladesh has decided to issue the US Dollar Premium Bond with effect from 1st November 2002.
Eligibility of the Purchaser:
The Bond may be issued in the name of a holder of a non-resident account against remittances from abroad to the account.
Issuing Branches :
Sonali Bank Wage Earner’s Corpt. Branch,Dhaka
Sonali Bank Dhaka Cantt.Corpt. Branch, Dhaka
Sonali Bank Wage Earner’s Branch,Ctg.
Sonali Bank Khulna Corpt. Branch, Khulna
Sonali Bank Dargagate Corpt. Branch, Sylhet
Sonali Bank Foreign Exchange Branch, Moulovibazar
Salient Features of the Bond :
Maturity Period: 03 Years.
Interest Rate: 7.5 % (Fixed) Per Annum.
Interest may be drawn on half yearly basis.
Principal will be payable in US Dollar.
Interest will be paid in Bangladesh Taka.
Principal may also be paid in Bangladesh Taka on option.
Principal & Interest shall be free from income-tax.
On maturity principal amount may be re-invested or repatriated abroad in Foreign Currency.
Denomination of Bonds :
US $ 500 · US $ 1000 · US $ 5000 · US $ 10,000 · US $ 50,000
Limit :
A purchaser can purchase Bond for minimum of US $ 500 and any amount in multiples of US $ 500 without any maximum limit.
Premature Encashment :
The Bond may be encashed before maturity at following rate of interest :
Encashment | Interest payable |
Within one year from the date of issue | No interest. |
After completion of one year but within two years | 7.5% |
After completion of two years but within three years | 7.0% |
After completion of 3 years | 7.5% |
Nominee :
The Purchaser shall appoint a nominee to receive the value of the Bond, interest payable thereon and also the death risk benefit, if any, in the event of death of the holder.
Additional Benefit :
A purchaser purchasing Bond(s) for at least US $ 10,000 at the first instance and increases the investment by subsequent addition will qualify for a free death-risk-benefit of maximum Tk 20, 00,000 in the event of his death on fulfillment of some terms & conditions.
The purchaser having purchased Bond(s) totalling US $ 1,000,000 (One million) or above will be treated as C.I.P.
Replacement :
In case a Bond is lost, stolen, destroyed, damaged or defaced there is provision for issuance of duplicate Bond.
Non – Resident Investor’s Taka Account (NITA)
Non-resident Investor’s Taka Account-(NITA) can be opened with any Authorized Dealer branch by foreign currencies earned abroad for investment in the shares and securities in the capital market of Bangladesh.
Shares and securities can be bought by funds in the NITA. Dividends earned on and sale proceeds of shares and securities can be credited to NITA.
Total balance held in NITA can be repatriated abroad in foreign currency at the ruling rate at any time.
Dividends earned or capital gains on investment are tax-free.
NITA can be operated by nominee in Bangladesh and the Bank itself with which the account is maintained may act as the nominee.
Interest Rates for Wage Earners :::
| Non-Resident Foreign Currency Deposit (NFCD) A/C |
Nature of Customer | Currency | Period(Month) | ||
1 | Private Individual | USD | 1 Month | 1.17% |
3 Months | 1.35% | |||
6 Months | 1.64% | |||
12 Months | 2.05% | |||
2 | Private Individual | GBP | 1 Month | 4.37% |
3 Months | 4.58% | |||
6 Months | 4.76% | |||
12 Months | 5% | |||
3 | All Foreign Banks/ Exchange Houses & Financial Institutions | USD | 1 Month | 1.22% |
3 Months | 1.43% | |||
6 Months | 1.69% | |||
12 Months | 2.13% | |||
4 | All Foreign Banks/ Exchange Houses & Financial Institutions | GBP | 1 Month | 4.42% |
3 Months | 4.63% | |||
6 Months | 4.81% | |||
12 Months | 5.05% |
Resident Foreign Currency Deposit (RFCD) A/C (USD) | .70% |
Resident Foreign Currency Deposit (RFCD) A/C (GBP) | 3.69% |
Foreign Currency Account Dollar (FCAD) | 1.12% |
Foreign Currency Account Pound (FCAP) | 4.32% |
Trade Financing
Credit Packages
Sonali Bank extends multiple credit facilities to boost up trade, commerce and industry. The credit packages and interest rates are as under:
Credit Packages | Interest Rates | |
| 1 | Credit to Trade and Commerce | 12% |
| 2 | Working capital to Industries. | 11% |
| 3 | Credit for Power Driven Vechicle/Water Transport. | 12% |
| 4 | Overdraft against: | |
| Fixed deposits | 10% |
| DPS/SDPS Accounts | 10% |
| National Savings Certificates | 10% |
| ICB Certificates | 12% |
| Life Insurance Policy | 12% |
| Wage Earners’ Development Bonds | 10% |
| Shares and Debentures of Public Limited Cos. | 12% |
| Work Order of Govt./Semi-Govt./Corporations | 12% |
5 | Housing Loans | 12% |
6 | Small Loans | 10% — 10.50% |
7 | Packing Cash Credit. | 7% –8.50 |
8 | Consumers credit | 12% |
9 | Working Capital to Diagnostic Centers | 11% |
10 | Loans to Public Sector Enterprises. | 12% |
11 | Cash credit facilities for Small Business enterprises | 12% |
12 | Agricultural loan under various program/project | 9% |
Industrial Banking
Credit Schemes
Long term loan for setting up new industrial units and BMRE of existing units including working capital finance are extended by Sonali Bank to cottage industries, small-medium-large scale industries and also to self-employed persons with a view to creating employment opportunities, deployment of resources, increasing GDP and over-all industrial development of the country. Currently the following credit schemes are on offer by the bank:
Some of the main Credit Schemes :
| Industrial Financing for Thrust Sectors Sonali Bank Industrial Credit Scheme Special Investment Scheme for Cottage and Small Industries Financing Large Scale Industries through Banks’ Consortium. Financing Software Development and Data Processing |
About 100 branches including all the corporate and district headquarters branches are designated to handle industrial credit.
Thrust Sector
Besides the traditional and oft-trodden sectors, Sonali Bank has also come up with very low rate of interest to finance the following thrust sectors of the economy as identified by the Government:
Software development and data processing.
Agro-based industries (excepting cold storage for preservation of potatoes).
Manufacture of artificial flowers.
Frozen foods.
Gift items (preferably export oriented).
100% export oriented finished leather goods.
100% export oriented jute goods
Jewelry and Diamond cutting and polishing.
Oil and Gas.
Sericulture and silk industries.
Stuffed Toys (preferably export oriented).
100% export oriented textile industry (excepting garments manufacturing industries).
Other Viable Industrial Sectors
Composite textile (woven & knit fabrics)
Textile / Acrylic Spinning
Sweater Industry
Garments Accessories & Washing Plant
Denim Fabrics (export oriented)
Tourism / Hotel and Resort facilities
Hospital & Clinics
Other Export linkage industries.
Power Generating Plant.
LPG, CNG Filling & Conversion plant.
Pharmaceutical Ind.
Plastic Ind.
Tannery/Rubber Foot wear.
Other highly rewarding appropriate technology based projects
Nature of Loan | Interest rates (Floating) | |
| 1 | Term loan/Project loan | 9%–11% |
| 2 | Term loan/project loan (Thrust Sector) | 9% |
| 3 | working capital | 11% |
Rural Banking
Rural & Microcredit
Rural lending continues to be one of the core lending programs of Sonali Bank. Sonali Bank stepped into rural lending in 1973. Any comparative study would clearly depict Sonali Bank’s supremacy in the Rural Finance Market over other private or public sector commercial banks in Bangladesh. All the on-going rural and micro finance outlets of Sonali Bank aim at increasing agricultural output, promote agro-based Small and Micro Enterprises (SMEs), facilitate agro-based support services, create and sustain employment opportunities through linking the rural and urban poor to the various Income Generating Activitis (IGAs) and reduce poverty. Sonali Bank’s Rural / Microcredit has been channeled through a wide network of 1073 rural branches.
Broadly, Sonali Bank’s rural and mircocredits are of following categories:
Program Credit: These outfits aim at addressing the credit need of the mainstream agriculture ( viz. cereal crops, tubers, pulses, oilseeds, etc.) and agro-sub-sectors (viz. dairy, poultry, fisheries, hatchery, etc.) as well as agro-offshoots ranging from medium term as in small and medium agro-enterprises to long term as in agro-based industries. The programs include:
Special Agricultural Credit Program (credit to subsistence and marginal farmers as well as share-croppers for raising seasonal crops )
Financing the poor and subsistence farmers grouped under formal cooperative societies.
Finance to agro-based Small and Micro Enterprises (SMEs) under a scheme named Special Investment Scheme.
Finance to Agro based Industries.
Finance to various farm and off-farm micro enterprises.
Credit to agro-support sectors (viz. various irrigation equipments, agricultural implements, tractors, power tillers etc).
Supervised Credit: These programs predominantly aim at reducing the level of poverty and generate self-employment opportunities with the core objective of improving the quality of life.
Linkage Credit: These credit outlets have been the collaborative efforts and eventually aim at reaching the targeted hardcore rural and urban poor, socially as well as technically mobilized and prepared by Partner Organizations (NGOs and various public bodies).
In all the cases, Sonali Bank’s micro credits aim at socio-economic development and empowerment of the poor with special focus on disadvantaged/destitute women. Sonali Bank has, interalia, three micro credit products that exclusively target the disadvantaged rural and urban women, namely :
Integrated Rural Women Development Programmer (IRWDP).
Credit for Urban Women Micro Enterprise Development Programmer (CUMED)
NGO linkage programmer for assisting the women in city slums.
Linkage with Microfinance – NGOs:Bangladesh has been the world’s capital of Microfinance with more than 1,000 Micro Finance Institutions (MFls) concentrating to this sector. Sonali Bank with a mission of building a sustainable business relationship with the MFls has marketed this new product in 1997 and leveraged so far a total sum of Tk. 500 Million (=US$ 10 million approximately) to a number of MFIs. Sonali Bank’s
NGO-linkage program has been regarded as the single largest linkage outfit in the world.
Incentives
Rural/Micro credit clients are usually given incentives for on-time repayments by offering rebate on interest payable.
Interest Rates
| Nature of Loan | Interest Rates (Floating) |
Mainstream Agriculture
Micro credit/Micro enterprises
|
Investment Banking
Central Accounts & Fund Management Division at Head Office maintains Investment Portfolio of the Bank. With a view to implementing Government policies & decisions and accelerating the growth of the Capital Market of the country, surplus funds of Sonali Bank are utilized in the following areas:
| Short Term: |
| Call Loans: An overnight investment to other Banks & Financial Institutions. |
| Treasury Bills: Investment made to the Government through Treasury Bills. |
| Long Term: |
| Government / Public Bonds: Sonali Bank purchases bonds issued by the Govt. of Bangladesh and other Public Bodies. |
| Shares / Equity Participation: Sonali Bank participates in the IPO and extends bridge finance to the equity of Public Ltd. Companies, Institutions and Public Bodies. |
| Debentures: Sonali Bank purchases debentures issued by the Public Bodies and Financial Institutions under Government Guarantee. Besides, Sonali Bank purchases the debentures of the Public Limited Companies. |
Government Business
Receipt & Payment
Bangladesh Bank, the central bank of the country has authorized Sonali bank to carry out Government transactions on its behalf in places where it has no branch. At present 572 branches of Sonali Bank carry out Government transactions. These branches receive deposits towards Government exchequer and pay against different Government bills/Payrolls. Besides, 104 more branches of Sonali Bank receive only deposits towards Government exchequer where branches of Bangladesh Bank exist.
Chest Branches Of Sonali Bank
Sonali Bank holds chest on behalf of Bangladesh Bank at its 65 branches throughout the country.
Utility Services
Sonali Bank offers multiple special services with its network of branches throughout the country in addition to its normal banking operations.
Collection :
- Gas bills
- Electricity bills
- Telephone bills
- Water/Sewerage bills
- Municipal holding Tax
- Passport fees and Travel tax
- Customs & excise duties
Payment :
Pension of employees of Government and other Corporate Bodies
Army pension
British pension
Students’ stipend/scholarship
Old age allowances
Widows, divorcees and destitute women allowances
Freedom Fighters’ allowances
Govt. & Non-Govt. Teachers’ salary
Food procurement bill on behalf of the Govt.
Sale & Encashment/Purchase :
- Savings Certificates
- ICB Unit Certificates
- Prize Bonds
- Wage Earner’s Development Bonds
- Lottery tickets of different Semi-Govt. and Autonomous Bodies.
New Products
IT Project Financing
For growing international markets for software and data processing this scheme provides long term and short term credit facilities on easier terms to set up and run IT based projects.
| Eligibility: Entrepreneurs, of them at least two with recognized degree/diploma in Computer Science or Electrical Engineering / Telecommunication / Applied Physics & Electronics, forming a private limited company may apply. Experience in the related field will be preferred. Loan Limit: Maximum Tk. 1.50 million. In deserving cases, upto Tk.10.00 million may be considered. Debt-Equity Ratio: 80:20. Period: Maximum 6 years including 1 year grace period. Security: In case of Rented premises collateral of immovable at least covering prayed loan is needed. in case of project with own land & building no collateral security other than the personal guarantee of the loanees is required. Entrepreneurs offering collateral security will be preferred.Or Loan may be consider with personal guaranty of worthy person(s) (Third party) and in such case original certificates on academic achievements of the sponsor are required. Interest Rate: 9% p.a. |
IT Export Financing
For export of software and processed data short term finance is extended to existing IT projects.
| Eligibility : Feasibly implemented and properly staffed IT projects with export L/C or firm contract in hand may apply. Export through settlite, BTTB confirmation required. Loan Limit : Tk. 1.00 million. For larger contract higher amount may be considered. Debt-Equity Ratio: 90:10. Period: L/C or Contract period plus 21 days but not exceeding 180 days from the date of disbursement. Security: No collateral security other than the personal guarantee of the loanees is required. But for loan amount exceeding Tk. 1.00 million collateral will be required. Interest Rate: 7% p.a. |
Sonali Bank Reday Cash Card Service
Sonali Bank started “Sonali Bank Ready Cash Card Service”. In this respect we are furnishing below the main features of the program as under:-
| Sonali Bank Ready Cash Card is a Debit Card. Cardholder can easily pay utility bills like – Water, Telephone, Gas etc. It is easy to remit funds among the participating branches of the Bank. Transaction beyond working hours It is a riskless Cash Carrying facility Cashless purchase can be made form specific merchandise points Only computerized Branches of Dhaka City will deal Ready Cash Card. Branches of other Cities and Towns will introduce Sonali Bank Ready Cash Card in due course.
|
Consumers’ Credit Scheme
With the steady development of the industrial and the service sectors in Bangladesh, the level of personal consumption has recorded progressive growth. To cater to the growing demand for consumer durables, Sonali Bank has launched the “Consumers’ Credit Scheme”, with the following features:
| Eligibility: Permanent employees with 5 years service in Govt., Semi-Govt. organization and Autonomous & recognized bodies. Loan limit: Maximum Tk. 1.00 lack. Debt-equity ratio: 75:25 Interest rate: 15% p.a. (Yearly compound) Mode of repayment: Monthly installment. Period of loan: Maximum 3 years. |
Security:
a) Hypothecation of consumer goods to be purchased
b) Letter of guarantee from the employer.
c) No objection certificate & salary certificate from employer.
d) Lien on provident fund/gratuity.
Designated Branches: All district branches and the corporate branches
Loan Facility for DiagnosticCenter
Sonali Bank has launched a new loan scheme for “DiagnosticCenter” to promote medical facilities. The salient features of the scheme are as follows:
| Nature of loan: | Cash Credit (Hypothecation) |
| Interest Rate: | 16% (Floating). |
| Margin: | 40% |
| Security: Primary Security: Stock of Chemicals, X-ray papers, Injection Syringe, Medicine etc. Collateral Security: Collateral security twice the value of the loan is required |
| Period of loan: | One Year. |
Sonali Bank become MCC’s first ever ticket selling partner
Sports Correspondent
Bangladesh’s largest banking network Sonali Bank’s UK branch joined Marylebone Cricket Club (MCC) to promote Bangladesh’s first ever Test at the Lord’s against the hosts England in the Npower Test Series beginning on May 26.
According to the news that released on March 11 at the MCC website, the bank will sell tickets of the match from today (March 14) from it’s main branch in Osborn Street, London E1, at the heart of one of Britain’s biggest Bangladeshi communities.
MCC’s Secretary & Chief Executive Roger Knight said: “MCC has a very long and strong relationship with cricket in Bangladesh.”
“We are really excited too, by the prospect of staging an England vs Bangladesh Test for the first time. We want to attract as many people as possible to this historic moment in the long history of Lord’s,” he added.
The ticket-selling partnership is the first of its kind in MCC history and reflects the Club’s commitment to attract as many people as possible to Bangladesh’s first Test match at Lord’s.
“As the Sonali Bank (UK) Ltd. works closely with so many members of the Bangladeshi community in Britain, it’s the perfect partner to help MCC promote England vs Bangladesh at ‘the home of cricket’,” Knight said.
In an associated initiative, ticket availability is being promoted through leaflets and posters printed in both English and Bengali.
These initiatives are the latest parts of a promotional campaign, which began back in September, when MCC hosted a reception for the Bangladesh team – and prominent members of the Bangladeshi community in Britain – at Lord’s.
The Osborn Street branch of the Sonali Bank (UK) Ltd. will sell a range of tickets to this Test; children’s tickets cost £5 each, while adult ticket prices range from £20 to £30. The tickets will be available between 9.30am and noon from Monday to Friday, and from 11am to 2pm on Saturdays.
At the same time, tickets remain available from MCC’s Ticket Office.
Bangladesh will play two Tests in the Npower Test series against the hosts England followed by a tri-nation NatWest ODI series also involving Australia.
The first Test of the Npower series is scheduled to take place at the Lord’s from May 26 and the second and final is set to be played at Chester-le-Street on June 3.
The tri-nation NatWest series will begin with the match between Bangladesh and England at Cardiff on June 18.
Reference
Banking & Insurance
- Commerce Publications
- Page 64 – 67
Annual Report Of Sonali Bank,2002
