Student’s Declaration

I, Md. Fardus All-Amin, hereby declare that this research report is entitled “General Banking
& Loan Sanction System” which is an original work conducted under the supervision of
honorable Suchana Akther, Lecturer, Department of Management, Rangamati Science &
Technology University, Rangamati. In the process of preparing this report, I have made my
sincere efforts for the collection of relevant data, study-related materials, documents and annual
reports of the Bank, and examine relevant research and journals for the preparation of this
report. I have tried my level best to make this report as comprehensive and informative as
possible.

I also affirm that the content of the report has not been submitted or published in any form to
any other university or institution for any degree or other purposes.

…………………………

Md. Fardus All-Amin

Roll No: 12

Reg. No: 2014210118

Session: 2014-2015

Department of Management

Rangamati Science & Technology University, Rangamati

Suchana Akhter

Lecturer of Management Department

Faculty of Business Studies

Rangamati Science & Technology University

Subject: Submission Internship Report on “General Banking & Loan Sanctioning” of Sonali Bank
Ltd”.

Sir,

I am hereby submitting my Internship Report, which is a part of the BBA Program curriculum. It is a
great achievement to work under your active supervision.

This report is based on, “General Banking & Loan Sanctioning at Sonali Bank Limited”. I have got
the opportunity to work in Sonali Bank Limited at “New Court Building Branch” for 6-7 weeks, under
the supervision of Mr. Amir Azim (SPO) Branch Manager of Sonali Bank Limited, New Court Building
Branch. I have tried my level best to include all the relevant information to make the internship report
informative and comprehensive.

This internship gave me both academic and practical exposures. First of all, I learned about banking
operations and understood the banking culture of a prominent financial institution of the country.
Secondly, this experience gave me the opportunity to develop a network with the corporate
environment.

Lastly, I would like to express my sincere appreciation and thanks for your help while preparing the
report. I shall be glad to answer any queries that you may have in this regard.

Sincerely Yours

…………………………

Md. Fardus All-Amin

Roll No: 12

Reg. No: 2014210118

Session: 2014-2015

Department of Management

Rangamati Science & Technology University

This is to certify that the internship report entitled “Internship report on Loans and Advances
of Sonali Bank Limited” is prepared by me after successfully completion of 45 days work in
Sonali Bank Limited.

I also confirm that the report is only prepared to meet my academic requirement, not for any
other purpose. It will not act anything that will hamper Bank’s confidentiality and interests. It
might not be used with the interest of opposite bodies of Sonali Bank Limited.

Supervisor

…………………………
Suchana Akther
Lecturer
Department of Management
Faculty of Business Studies
Rangamati Science & Technology University, Rangamati
 Acknowledgment

At the very beginning, I would like to express my deepest gratitude to the Almighty God
for giving me the strength and the composure to finish the task within the scheduled time.
The preparation of this report required assistance, guidance and also took the valuable
time of many important and prestigious personalities. I want to express my gratitude to
the Head of Human Resource Department of Sonali Bank Limited for providing me the
opportunity to do my internship.
I worked with all the concerned officers of Sonali Bank Ltd, New Court Building Branch,
Who kindly provide me the information and training and other employees of that branch
helped me a lot with my practical experience in the bank. I would like to express my sincere
gratitude to all officers of this branch who had responded cordially to meet my need
relating to the report and give me their support. Of them, I like to mention the name of-
1. Mr. Md. Amir Azim (Manager, Senior Principal Officer).
2. Mrs. Basaki Chakma (Senior Officer Cash).
3. Mrs. Bithika Chakma (Senior Officer).
4. Mrs. Mss. Susmita Dewan (Senior Officer Cash).
Then I would like to give special thanks to my course supervisor Suchana Akther, lecturer,
Department of management, Rangamati Science & Technology University who has given
me the opportunity and directions to prepare such a meaningful report. I am also satisfied
to work under his supervision and care.
I would like to give special thanks to my respected trainers of Sonali Bank Staff College
to give me the opportunity to do an internship in branch and co-operate us in doing my
research.
Finally, appreciation is extended to those of my friends and especially my well-wishers
who helped me to get the chance for an internship program in the Bank.
 Executive Summary
Banks are the major financial institution which plays a major role in the financial system and
process of economic growth of a country. Banks create money by accepting fund from surplus
unit to deficit unit. Sonali Bank Limited (SBL) is the largest and biggest national Commercial
Bank in Bangladesh. Its activities are vast and in cases unique to any other bank. It finances
government projects, provides unique services to people in need, even in places it works as a
central bank. Profit earning is not its main objective but also provide better services for the
mass people. This report is prepared on the basis of my three-month practical experience at
Sonali Bank Limited, at New Court Building Branch, Rangamati. As an Internee, I had the
opportunity to do the different types of tasks under Sonali Bank Limited. During the internship
period, I have used my observations and gained experiences about various banking functions
and day-to-day operations. This report focuses on a clear idea about the General Banking &
Loan Sanctioning of Sonali Bank Limited. To fulfill this study, data were collected from
Primary & Secondary sources. Primary data collected by face to face conversations with the
branch officers and customers. Secondary data collected from the websites of SBL, Bank’s
annual reports, journals, accounts department guidelines, and different related books. I
segmented my report into six chapters. First covers the introduction about the report, second
chapter covers the methodology of the study. Third chapter is the organizational overview of
Sonali Bank Limited. Fourth chapter is the general banking activities of Sonali Bank Ltd., New
Court Building Branch. Fifth chapter is analysis of loan sanction system which includes
procedures of loan sanction and also includes what documents are required for sanctioning a
loan. Sixth chapter includes problem identifications and gives some suggestions for how to
solve these problems of Sonali Bank Ltd. Loans & Advances department takes a long time to
process a loan because the process of sanctioning loan is done manually as well as automated.
The bank should train up its employee and also use modern tools & technologies to the process
of sanctioning loan is done within a short time. The remaining chapter consists of learning
aspects and conclusions. From the study, we will get a clear picture of the overall performance
of SBL and also the special scenario of Loan and Advance. Though the recent scenario of
disbursing and recovering position of Sonali Bank Ltd. is not satisfactory but it is common
picture & true for all nationalized commercial banks. The overall performance of this bank is
satisfactory.
Serial no. Contents Page No.
INTRODUCTION
1.1 Introduction 2
1.2 Background of the Study 2
1.3 Significance of the Study 3
1.4 Objectives of the Study 4
METHODOLOGY
Data Sources
Sampling Unit
Sampling Procedure
Questioner Design
Period of Data Collection
Processing and Analysis of Data
Limitations of the Study
ORGANIZATION OVERVIEW
3.1 Historical Background of SBL 6
3.2 Corporate Vision and Mission 7-8
3.3 Core Values 8
3.4 Corporate Profile
3.5 Capital Structure
3.6 Branches and Subsidiaries 9
3.7 Management 9
3.8 The Principle Activities 10
3.9 Products and Services offered by SBL 11-14
3.10 An overview of New Court Building Branch, SBL 14-15
3.11 Main functions of New Court Building Branch SBL
3.12 Branch Profile
3.13 Organizational structure of the branch 16
3.14 Branches under Supervision by New Court Building Branch 16-17
GENERAL BANKING
4.1 Accounts Opening Section 19
4.1.1 Requirements of Opening an Account in various purpose
4.1.2 Check Book Issue 19-20
4.1.3 Closing an Account 20
4.2 Cash Section 20-21
4.3 Deposit Section 21-22
3.6 Principles of credit policy 22-25
3.7 Various types of loan practices at New Court Building Branch 25-27
3.8 Securities of loan 27-28
3.9 Loan recovery procedure 29-30
ANALYSIS & DISCUSSIONS
5.1 Loan proposal sanction process 32
5.2 Requirements of loan proposal 33-34
5.3 Overdrafts sanctioning procedure and documents 34
5.4 Disbursement information of overdrafts (5 years) 34-35
5.5 Small business loan sanctioning procedure and documents 35-36
5.6 Disbursement information of Small business loan (5 years) 36-37
5.7 Micro credit sanctioning procedure and documents 37-38
5.8 Disbursement information of Micro credit (5 years) 38
5.9 Lending policy of SME loan 38-39
5.10 Disbursement information of SME loan (5 years) 40
5.11 House building loan sanctioning procedure and documents 40-41
4.12 Disbursement information of House building loan (5 years) 41
4.13 Staff loan 41-42
4.14 Disbursement information of Staff loan (5 years) 42-43
4.15 Lending policy of personal loan 43
4.16 Disbursement information of Personal loan (5 years) 44
4.17 Rates of interest against loans 44
4.18 Loan recovery scenario of New Court Building Branch (5 years) 45
S.W.O.T ANALYSES
5.1.1 Strengths 47
5.1.2 Weakness 47-48
5.1.3 Opportunities 48
5.1.4 Threats 49
PROBLEMS & RECOMMENDATIONS,
6.1 Problems 51
6.2 Recommendations 51-52
6.3 Conclusions 52-53
 LEARNING ASPECTS & CONCLUSIONS
7.1 Learning aspects 55
7.2 Conclusions
References 55-56