Sonali Bank Case Study

1.1: BACKGROUND OF THE STUDY:

Banking is one of the most important sectors for country's wealth building activities. Commercial banks are certainly profit making Financial Institutions. These institutions play great role in the money market of every economy.

Due to globalization, technological innovation and deregulation the banking system all over the world has been changing rapidly. Now a day's banks have to compete in the market place not only with local institutions but also with foreign financial institutions.

Sonali bank is one of the leading nationalized commercial bank in Bangladesh. 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 worldwide it is singularly handling the largest volume of export-import business including homebound remittances.

For this reason Foreign Exchange of Sonali Bank is very much essential. But now a day the banking sector of Bangladesh is suffering from the disease of default culture which is the consequence or result of bad performance of most of the banks.

Sonali Bank is playing an important role toward the growth and economic development of Bangladesh.

This study is attempted to produce a constructive report on Foreign Exchange of Sonali Bank.

1.2: OBJECTIVES OF THE STUDY:

The Prime objectives of the study are:-

To get an overall idea about the Foreign exchange Business of Sonali Bank.

To apply theoretical knowledge in the practical field.

To describe the organizational structure, management, background, functions and objectives of the bank and its contribution to the national economy.

To achieve overall understanding of Sonali Bank.

To analyze the financing systems of the bank to find out any contributing field.

To examine the profitability and productivity of the bank.

To acquire knowledge about the every day banking operation of Sonali Bank.

To understand the real management situation and try to recommend for improving existing problems.

1.3: Schedule of Internship:

Following schedules of the internship program were fixed by Sonali Bank Staff College (SBSC) to complete the program under Sonali Bank Foreign exchange Corporate Branch.

26th October to 15th November 2005 General Banking Section

16th November to 30th November 2005 General Loans and Advances Section

1st December to 14th December 2005 Industrial credit section

15th December to 28th December 2005 Foreign exchange Section

1.4: METHODOLOGY OF THE STUDY:

The report is prepared on the basic of foreign Exchange of Sonali Bank. To conduct the overall study, at first I explored the sources of primary and Secondary information and data. Different files of the department and statement prepared by FED helped me to prepare this report. I have interviewed the SB officials for getting more information. To present numerical data, I used the Annual Report of 2003 and monthly statement of November 2005 of Sonali Bank of Foreign Exchange Corporate branch. For preparing this report I have used some graphical representation to find out different types of analytical and interpretation.

1.5: SOURCES OF DATA:

As mentioned earlier, mainly primary data has been used. Sometimes the customers gave some important information regarding the services of the Bank:

Primary Data:

7 days Training Class in Sonali Bank Staff College (SBSC).

Official records of Sonali Bank (SB).

Face to face conversation

Expert opinion.

Secondary Data:

Monthly Statement of SB.

Annual Report of SB

Working Papers

Official Files

Selected books

Other manual information

Newspaper reports in this concern.

1.6: LIMITATIONS OF THE STUDY:

To provide current information and to make the report read-worthy, support from various sources is a must. In spite of my best effort, I could not collect some information required at the time of the study. So this study is not free from the following limitation:

For the whole internship I had only 90 days, which were not sufficient. So I faced time shortage extremely.

Sometimes the officers of Sonali Bank were very busy. For this reason the personal did not co-operate me.

Lack of previous experience to prepare this type of report and it is totally new to me as an intern.

Sonali Bank did not give me any kind of monetary support for this internship program.

2.1: HISTORICAL BACKGROUND OF

SONALI BANK:

Sonali Bank, the largest commercial bank in Bangladesh, was established under the Bangladesh Banks (Nationalization) Order 1972 (President's Order No. 26 of 1972) by taking over branches of former National Bank of Pakistan, Bank of Bhawalpur Limited and Premier Bank of Pakistan. After the independence of Bangladesh in 1971, the then Government, for the preannounce commitment, nationalized all the banks (except the foreign-owned banks) operating in the country.

As a fully state-owned enterprise, Sonali Bank has discharged its responsibility by undertaking government entrusted different socio-economic scheme as well as money market activities of its own volition, covering all spheres of the economy. Sonali Bank