COVER RATIONALE

GOOD GOVERNANCE
TOWARDS PROGRESS
Sonali Bank PLC has developed a good corporate governance structure over the years by promoting
transparency, accountability, and ethical conduct in the bank’s governance framework, board structure,
and governance policies. The healthy atmosphere between the Board and top management, proper
communication with the stakeholders have helped to ensure alignment of interest and build trust through
complying regulatory requirements and industry standards. The diversified qualities of the Board members,
their expertise and effectiveness in guiding have helped the Bank towards progress and sustainability. The
positive impact has been reflected in its business performance while the Bank has achieved the highest
operating profit (Tk. 38,461.88 million) and net profit (Tk. 6,514.80 million) in 2023 among the Bangladeshi
banks and is moving faster to achieve more in the upcoming years.
SONALI BANK PLC

CORPORATE GOVERNANCE

Corporate governance is a set of relationships between a company’s management, its

board, its shareholders and other stakeholders which provides the structure through which
the objectives of the company are set, and the means of attaining those objectives and
monitoring performance. It helps define the way authority and responsibility are allocated
and how corporate decisions are made.

At Sonali Bank PLC, our governance framework, built on accountability, transparency, fairness,
and responsibility, is driven by the Board of Directors and key committees: the Executive, Audit,
and Risk Management Committees. Senior Management, through various committees, ensures
strategic initiatives and operational efficiencies are effectively implemented.

Our leadership fosters a transparent and ethical corporate culture, supported by continuous
training. Employees at all levels adhere to our governance policies, promoting integrity
throughout the organization.

Our strong governance practices have led to robust financial performance and stakeholder
trust. Committed to evolving with technology and global standards, Sonali Bank PLC
continues to demonstrate exceptional governance, driving progress and creating lasting
value for stakeholders.

2 ANNUAL REPORT 2023

KEY ACHIEVEMENT 2023
(Figure in Tk. Million except stated otherwise)

NET PROFIT OPERATING PROFIT DEPOSIT

2023 2022 2023 2022 2023 2022

6515 3710 38462 23823 1506184 1420263

+2805 +14639 +85921

ADVANCE DEPOSIT
LOANS & ADVANCES TOTAL ASSETS
RATIO

2023 2022 2023 2022 2023 2022

1008053 846430 1981130 1789772 66.93% 59.59%

+161623 +191358 +7.34%

NET INTEREST RATE OF CLASSIFIED

EARNING PER SHARE
INCOME LOANS (%)

2023 2022 2023 2022 2023 2022

4759 2089 14.38 8.19 13.23% 14.83%

+2670 +6.19 -1.60%

RETURN ON RETURN ON EQUITY

CAPITAL ADEQUACY
INVESTMENT (ROI) (ROE)
RATIO (%)

2023 2022 2023 2022 2023 2022

10.07% 10.05% 7.36% 4.83% 7.77% 4.70%

+0.02% +2.53% +3.07%

RETURN ON ASSETS NET ASSETS VALUE NET OPERATING

(ROA) PER SHARE (NAVPS) INCOME PER SHARE

2023 2022 2023 2022 2023 2022

0.35% 0.21% 191.08 179.23 84.90 52.59

+0.14% +11.85 +32.31

ANNUAL REPORT 2023 3

SONALI BANK PLC

C NTENTS
Organizational Information

06 Letter of Transmittal
07 Notice of the 17th Annual General Meeting
08 Corporate Vision and Mission
10 Core Values
11 Ethical Principles
12 Strategic Objectives of SBPLC
13 Statement of Forward Looking Approach
14 Corporate Profile
17 Group Corporate Structure
18 Corporate Organogram
20 Milestones
22 List of Chairman
23 List of CEOs of SBPLC
24 SBPLC at a Glance

Board of Directors and

Management Profile

26 Board of Directors & its committees

32 Directors’ Profile
41 Management Team

Chairman and CEO’s Message

48 Message from the Chairman

54 CEO’s Message

Corporate Governance

61 Directors’ Report
92 Corporate Governance
105 Certificate with Compliance Report on CG
106 Compliance Report with BSEC Notification on CG
117 Report of the Shariah Supervisory Committee
118 CEO and CFO’s Declaration to the Board
119 Directors’ Responsibility for FR and IC
121 Report of the Audit Committee
124 Note from the Chairman of Risk Management Committee

4 ANNUAL REPORT 2023

 Stakeholders Information

128 Stakeholders and Shareholders Information

130 Redressing to Shareholders’ Observations
132 Comparative Financial Highlights of SBPLC
133 Graphical Presentations
138 Key Financial Data and Ratios of SBPLC
143 Profitability, Dividend, Performance and Liquidity Ratio
144 Segment wise Presentation
145 Statement of Value Addition and its Distribution
147 Market Value Added Statement
148 Credit Rating
148 Financial Calendar 2023 and 2024

Risk Management and Control Auditors’ Report and Financial

Environment Statements

150 Report on Core Risk Management 215 Auditors’ Report

157 BASEL-III Compliance Report 221 Consolidated Financial Statements-SBPLC
157 Market Disclosures under Piller-III
227 Financial Statements-SBPLC(Solo)
357 Financial Statements- Sonali Investment Ltd.
385 Financial Statements- Islamic Banking Window
Sustainability Analysis and Integrated
Reporting 397 Sonali Exchange Co. Inc (SECI)
413 Sonali Bangladesh (UK) Limited
180 Report on Sustainable Banking 423 Sonali Pay (UK) Limited
185 Report on Human Resources
189 Report on Financial Inclusion
192 Customer Care Additional Information
196 Citizen Charter
197 Report on Corporate Social Responsibility 433 Domestic Branches of SBPLC
198 Government Transactions and Works Related 446 SBPLC Branch Network
to Social Responsibility
447 SBPLC Remittance Network with World Map
199 Contribution to National Economy
449 Overseas Branches of SBPLC
449 Representative Branches of SBPLC
450 Branches of Sonali Bangladesh (UK) Ltd.
Management Review and Other
451 Branches of SECI, USA
Information
452 List of Acronyms

201 Management Discussion and Analysis

207 Products and Services of SBPLC
209 Media Highlights 2023
210 Awards and Recognition
212 Photo Gallery

ANNUAL REPORT 2023 5

SONALI BANK PLC

LETTER OF TRANSMITTAL

All Shareholders of Sonali Bank PLC/

Registrar of Joint Stock Companies and Firms/
Bangladesh Securities and Exchange Commission (BSEC)/
Bangladesh Bank, Dhaka.

Sub: Annual Report for the year ended 31 December, 2023.

Dear Sir(s),

We are pleased to enclose herewith a copy of the Annual Report 2023 along with the Audited Financial Statements
(Consolidated and Solo) of Sonali Bank PLC for the year ended 31 December, 2023 and as on that date for your kind
information and record.

Financial Statements of ‘The Bank’ comprise that of Sonali Bank PLC whereas Consolidated Financial Statements
comprise Financial Statements of ‘The Bank’ and those of its operational subsidiaries- Sonali Investment Limited,
Sonali Bank (UK) Limited and Sonali Exchange Company Inc. (SECI), USA presented separately. Analyses in this report,
unless explicitly mentioned otherwise, are based on the financials of ‘The Bank’, not the Consolidated Financials.

Yours sincerely,

(Md. Afzal Karim)

Chief Executive Officer

6 ANNUAL REPORT 2023

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ANNUAL REPORT 2023 7

SONALI BANK PLC

OUR VISION
Socially committed
leading banking institution
with global presence.

8 ANNUAL REPORT 2023

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

ANNUAL REPORT 2023 9

SONALI BANK PLC

CORE VALUES
The core value proposition of Sonali Bank PLC consists of the following key
elements which would assist the Bank in perceiving its employees to work
as a team towards accomplishment of assigned duties and responsibilities
for achievement of desired objectives. The core values include:

ETHICS OBJECTIVITY INTEGRITY EXCELLENCE COMMITMENT

Everyone must All persons will have Protection and Excellent Every employee is
ensure adherence definite objective in safeguard of performance and committed to work
to ethical practices carrying out their national and effectiveness are upto the expected
of banking. tasks. customer’s interest pre-conditions level to ensure
are vital elements to ensure quality satisfaction of
for societal trust. service to the large valued customers.
customer base of
the Bank.

ACCOUNTABILITY TRANSPARENCY TEAM WORK SELF RELIANCE INNOVATION

All employees Information to be Open Each employee will New and innovative
are responssible kept open for all so communication, have ownership products are the
for their activities athat stakeholders discussion and attitude towards needs of the time
and will remain can have proper interaction amongst the Bank and self which continuous
accountable to their ideas about the the employees confidence in aciton oriented
respective superior activities of the would ensure his work for the researches are
for accomplishment Bank. unification of betterment of the being carried out.
of tasks. acitons and efforts Bank.
towards achiving the
common goal(s).

10 ANNUAL REPORT 2023

 ETHICAL PRINCIPLES
Ethics is a combination of moral qualities and a collection of
measurements that inquire into the values, norms and rules which
form the essentials of the individual and social relations established
by people from the moral aspect of right-wrong or good-bad. Sonali
Bank PLC deals with public money where Ethics, Integrity and Trust is
the utmost important. Bank upholds these principles in every aspect
by its Management, Regulatory Compliance and Customer Services.

Sonali Bank PLC strongly realizes the functions of optimal use of sources, the prevention of the unjustified
investments and savings by playing an intermediary role competition among the banks, provide services to the
between the parties in society that supply funds and customers with uncompromising integrity, protect
demand funds respectively, also aims the principles of privacy and confidentiality of customer information,
profitability and productivity stipulates the requirement prevent money laundering and fraudulent activities,
that they have to work in accordance with the Ethical demonstrate work place respect, banks are to regulate
Principles in the professional and organizational fields. their relations not only among themselves but also with
the other stake holders and employees in concordance
Setting off from the expansion of the banking system, with the Ethical Principles.
the improvement of the quality of banking services, the

ANNUAL REPORT 2023 11

SONALI BANK PLC

STRATEGIC OBJECTIVES OF SBPLC

The core objectives of Sonali Bank

PLC are to conduct transparent and
high quality banking services to ensure
maximum customers’ satisfaction as
well as ensure financial strengthening
through expanding market share within
the country and abroad.

• Greater emphasize to serve potential and unbanked • Developing Human Resource Management System
population of the country through providing to motivate and retain the human resources and
banking services to under-served areas with the transform human resources to human capital through
scaling up of various pilot initiatives. proper training in every aspects of working area.

• Gaining competitive advantages by lowering overall • by sector, size, economic purpose and geographical
cost compared to that of competitors. location and expand need based retail and SME/
Microfinance/Women entrepreneur financing
• Retaining our top leadership position by providing
quality customer services. • Cost control optimization at all levels of operation
by ensuring budgetary control and maximizing
• Investing in the thrust and priority sectors of the revenue through quality services and product
economy. diversification.

• Providing impeccable and progressively better • Ensuring strong internal control and compliance
customer services through introducing changed culture through establishing strong control
technologies. environment and sound compliance within the
Bank.
• Being excellent in serving the cause of least
developed community and areas. • Developing sound and effective risk management
culture within the Bank to safe guard the banking
• Improving of deposit mix by maintaining share of
assets and protect the interest of the dipositors and
low cost and no cost deposit in total deposit as well
other stake holders.
funded business.
• Ensure dedicated service to the government
• Improving corporate governance through
as an exchequer and government transactions
strengthening good corporate culture, motivation,
(government receipts and payments) in order to
training and supervision in all levels of management.
achieve expected economic growth.

12 ANNUAL REPORT 2023

STATEMENT OF FORWARD LOOKING APPROACH

The Bank involved in various non-business activities for the

well-being of its millions of citizens besides its special focused
on selected business segments such as corporate lending and
finance, securities business and asset management as well as
acquired an outstanding position in the foreign countries through
export and trade finances. In order to retain the leadership position
within banking sector in the country, an extensive area of this
annual report has covered the Bank’s forward-looking statements
on the basis of its management’s current expectations and
assumptions regarding the company’s business performance and
non-business involvement. In coming days, the Bank is looking for
fair development in the following areas to sustain its position as
number one bank of the country.

• Highest degree of ICT inclusion. • Changes in CRR and SLR of the banks as well
as increase of provision requirements resulting
• Engagement of talented employees.
reduction of ROA and ROE
• Exclusive human resource development efforts.
• Fluctuation in international prices of essentials
• Exclusive business re-engineering. which influences the oscillation in foreign exchange
• Customer service improvement. market.

• Efficient internal control system. • Compliance issues raised by the International

Forums which are likely to affect the export growth
• Improvement of internal work environment.
in the industrial sectors.
• Establishment of risk based management system.
• Changes in the demand for deposit, loan, and
• Adequate internally generated capital. investment products and other financial services in
• As any projection or forecast, forward-looking the markets we serve.
statements are inherently susceptible to uncertainty • The outcome of pending or threatened litigation,
and changes in circumstances. The company’s or of other matters before regulatory agencies,
actual results may vary materially from those whether currently existing or commencing in the
expressed or implied in its forward- looking future.
statements. Important factors that could cause the
• Environmental conditions that exist or may exist on
Bank’s actual results to differ materially from those in
properties owned by, leased by, or mortgaged to
its forward-looking statements include government
the Company.
regulation, economic, strategic, political and social
conditions and the following factors: • Changes in accounting principles, policies,
practices and guidelines in line with IFRS and BB
• Changes in the monetary and fiscal policies of the
requirements.
Government, including policies of the Department
of the Treasury and Bangladesh Bank. • Changes in credit ratings or in our ability to
access the capital markets along with other
• Changes in interest rates, which may affect net
economic, competitive, governmental, regulatory,
income, prepayment penalty income, mortgage
technological, and geopolitical factors affecting our
banking income, and other future cash flows, or the
operations, pricing and services.
market value of our assets, including our investment
securities. • Priority of government and the regulator.

• Changes in capital management policies of the • Status of ICT inclusion.

Bank including use of derivatives to mitigate our • Inclusion of new generation human resources.
interest rate exposure.
• The changed banking requirements of the customer.
• Changes in corporate tax structure along with
legislation and regulation of VAT on banking • Peer Bank’s forward movements.
services.

ANNUAL REPORT 2023 13

SONALI BANK PLC

CORPORATE PROFILE
NAME OF THE COMPANY SONALI BANK PLC
Registered Office 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh
Emerged as a Nationalized Commercial Bank following the
Genesis Bangladesh Bank (Nationalization) Order No. 1972 vide President’s
Order No. 26 of 1972.
Legal Status Public Limited Company
Date of Incorporation 03 June, 2007
Date of Commencement of Business 03 June, 2007
Vendor’s Agreement 15 November, 2007
BB License No. BRPD(P-3)745(1)/2007-1602
Banking License obtained 05 June, 2007
Date of Company Registration 03 June, 2007
Company Registration No. C-67113(4605)/07
Authorized Capital BDT 60,000.00 Million
Paid up Capital BDT 45,300.00 Million
Face Value per Share BDT 100.00 per Share
100% share owned by Government of the People’s Republic of
Shareholding Pattern
Bangladesh
Tax Identification No. (TIN) 465337943663
Vat Registration No. (BIN) 000000063
Chairman of the Board of Directors Mr. Ziaul Hasan Siddiqui
Chief Executive Officer Mr. Md. Afzal Karim
Head of Risk Management Ms. Sanchia Binte Ali
Head of HR & ICC Mr. Mir Mofazzul Hossain
Head of IT Mr. Shamim Uddin Ahmed
Chief Financial Officer Mr. Md. Iqbal Hossain, ACMA, CFA, FRM
Chief Information Technology Officer Mr. Mohammad Rezwan Al Bakhtiar
Chief Audit Officer Mr. Md. Ali Ashraf Abu Taher
Company Secretary Mr. Tauhidul Islam

DOMESTIC NETWORK
No. of Branches 1230
No. of Urban Branches 503
No. of Rural Branches 727
No. of General Managers’ Office 18
No. of Principal Office 69
No. of Treasury Branches 735
No. of AD Branches 48
No. of Corporate Branches (incl. LO) 37
No. of Computerized Branches 1230
No. of Core Banking System Branches 1230
No. of Administrative Office 82
No. of ABB Operated Branches 1230
No. of Islamic Window 58
No. of Head Office Divisions 47

14 ANNUAL REPORT 2023

OVERSEAS NETWORK

No. of Branches 02

Location of Branches Kolkata (India), Siliguri (India).

No. of Correspondence 569

No. of Representative Offices 03 (02 in KSA and 01 in Kuwait)

ATM Booths 236

SUBSIDIARIES

336 East 45th Street, 8th Floor, New York, NY-10017, USA.
Sonali Exchange Co. Inc. (SECI), USA Tel: (212) 808-0790, (212) 808-4085
Email: [email protected]

Borak-Biz Center (1st Floor& 2nd Floor)

70 Dilkusha Road, Dhaka 1000
Sonali Investment Limited
Phone: 88-02-9568777, PABX: 9556940, 7170001 Ext.101
E-mail: [email protected], [email protected]

29-33 Osborn Street, London E1 6TD, U.K.

Phone: 00-44-(0)20-7877-8200 (Switch Board)
Sonali Bangladesh UK Ltd.
:00-44-(0)20-7877-8231 (Direct) Fax:00-44-(0)20-7377-9924
E-mail: [email protected]

380 Coventry Road Small Heath, Birmingham

Sonali Pay UK Limited
United Kingdom B1O 0UF Website: www.sonalipay.co.uk

ASSOCIATE

35, Kamal Ataturk Avenue, Abedin Tower, 7th Floor,

Sonali Intellect Limited
Banani Commercial Area, Dhaka-1213

NO. OF EMPLOYEES 18,257

CORPORATE RATING STATUS

Surveillance Rating with Government Support Long-term: AAA, Short-term: ST-1

Surveillance Rating Private Commercial Bank Long-term: A+, Short-term: ST-2

Phone PABX +88-02-9550426-31, 33, 34, +88-02-9552924

Fax 88-02-9561410, 88-02-9552007

SWIFT Code BSONBDDH

[email protected]; [email protected];
Email
[email protected]; [email protected]

Website www.sonalibank.com.bd

ANNUAL REPORT 2023 15

SONALI BANK PLC

LEGAL ADVISORS OF SBPLC

Sl. Sl. Name and Address

01 Sheikh Md. Jakir Hossain 02 Md. Tahirul Islam
Suit no: 1104, Room no: 146,
Baitul Khair, 48/A-B, Supreme Court Bar Bhaban,
Purana Paltan, Dhaka. Dhaka-1000. Mob: 01712953018
Mob: 01755525543
03 Mr. Khaled Bin Shahriar Ahmed 04 Begum Hosne Ara Begum
Suit no: 906 (9th floor), Haque Law Chamber (2nd floor),
H.M.Siddique Mension, Jiban Bima Bhaban,
55/A, Purana Paltan, Ramna, 121, Motijheel C/A, Dhaka.
Dhaka. Phone: 02-9574376 Mob: 01711522775
05 Md. Rokonuzzaman 06 Mrinal Kanti Biswas
Suit no: 404 (3rd floor), 44 Topkhana Road,
Ibrahim Mension, 11, Purana Paltan, Hotel Metropolitan (2nd Floor),
Dhaka. Mob: 01715330077 Dhaka. Mob:01711520365

07 Krisnapada Bhoumik 08 Choudhury Mousumi Fatema

84, Swamibag Road, 707 (Anex Ext. Building),
Gandaria, Dhaka. 7th Floor, Supreme Court,
Mob: 01711583269 Dhaka-1000. Mob: 01715199008

09 Md. Golam Mostafa 10 Muhammad Shakhawat Hossain

Room no: 146, Lake View, Flat- 4C (3rd floor)
Supreme Court Bar Bhaban, BA 73/1, Gulshan Lake Drive
Dhaka-1000. Mob: 01716933082 South Badda, Dhaka. Mob: 01711136115

AUDITORS OF SBPLC

Hoda Vasi Chowdhury & Co. Howladar Yunus & Co.

Chartered Accountants Chartered Accountants
BTMC Bhaban (Floor 7 & 8) House No. 14 (4th & 5th Floor),
01 02
7-9 Karwan Bazar Road Road 16A, Gulshan-1
Dhaka-1217, Bangladesh. Dhaka-1212, Bangladesh.
Tel: +880 2 2 481 10980 Tel: +880 2 58 815 247

TAX ADVISOR OF SBPLC

Akhter Zamil and Co.

Chartered Accountants
Ibrahim Mansion (1st Floor), Room No. 207, 11, Purana Paltan, Dhaka-1000.
Telephone: 88 02 7124898
E-Mail: [email protected]

CREDIT RATING COMPANY OF SBPLC

Credit Rating Information and Services Limited

Nakshi Homes (1st, 4th & 5th Floor),
6/1/A, Segunbagicha
Dhaka-1000.
www.crislbd.com

CHIEF LAW OFFICER

Md. Barekuzzaman

16 ANNUAL REPORT 2023

GROUP CORPORATE STRUCTURE

SONALI
BANK
PLC

SUBSIDIARIES ASSOCIATES

Overseas
Sonali Exchange Co. Inc. (SECI), USA

Overseas
Sonali Bangladesh (UK) Limited

Overseas
Sonali Pay (UK) Limited

Local Local
Sonali Investment Limited (SIL) Sonali Intellect Limited

Name of the Date of No. of

Status Paid-up Capital Prime Activities
Company Establishment Branches

Merchant banking, portfolio

Sonali Investment
22 April, 2010 BDT 2000.00 mn 05 management, issue management,
Limited
capital market transactions.

Sonali Exchange Remittance business, undertake

12 December, 1994 USD 950,000.00 10
Co. Inc. (SECI), USA and participate in all transactions.

Subsidiaries
Trade Finance related services
mainly related to Bangladeshi
Sonali Bangladesh
07 December, 2001 GBP 61.46 mn imports and exports including
(UK) Limited
02 discounting of bills, add
confirmation and negotiation etc.

Sonali Pay (UK)

28 April, 2022 GBP 1.00 mn - Remittance business.
Limited
Customize, enhance, modify
Sonali Intellect
Associate 01 February, 2012 BDT 75.00 mn and implement Intellect CBS
Limited
- 10.0 Software.

ANNUAL REPORT 2023 17

SONALI BANK PLC

CORPORATE ORGANOGRAM
Corporate organogram reflects the corporate governance culture of the organization. It shows the relation between
Board of Directors, head office divisions, controlling offices and branches as well as employees of the Bank as a
whole. Organogram of Sonali Bank PLC is structured as follows:

Board of Directors
Execu�ve Commi�ee Chairman, Directors
Chief Executive Officer
Audit Commi�ee
Risk Management Commi�ee (CEO)
Shariah Supervisory Commi�ee

DMD DMD DMD

Chief
Chief Audit GM GM GM GM Chief Information
Financial Technology Officer
Officer (CAO)
GM GM Officer (CFO) CLO GM (CITO)

AUDIT & AGRO-BASED INTERNATIONA CENTRAL INFORMATION

INSPECTION LOAN DISCIPLINE &
PROJECT L TRADE ACCOUNTS TECHNOLOGY
DIVISION-1 CLASSIFICATION APPEAL
FINANCING FINANCE DIVISION DIVISION
(CORPORATE BRANCHES & DIVISION (LCD) DIVISION (DAD)
CONTROLLING OFFICES) DIVISION (APFD) DIVISION (OPERATION) (BUSINESS IT)
( )

AUDIT & TREASURY CENTRAL EMPLOYEES

GENERAL LOAN IT DIVISION
INSPECTION MANAGEMENT ACCOUNTS WELFARE &
ADVANCES RECOVERY (INFRASTRUCTURE
DIVISION-2 DIVISION - 1 DIVISION TRANSPORT
DIVISION (GAD) DIVISION (LRD) IT)
(OTHER THAN CORPORATE
BRANCHES)
(FRONT (PAYMENT) DIVISION (EWTD)
)

EXTERNAL INDUSTRIAL TREASURY GOVT. HUMAN

LEGAL IT DIVISION
AUDIT PROJECT MANAGEMENT ACCOUNTS & RESOURCE
MATTERS (IT SERVICES
COMPLIANCE FINANCING DIVISION - 2 SERVICES DEVELOPMENT
(MID & BACK DIVISION (LMD) MANAGEMENT)
DIVISION DIVISION (IPFD) DIVISION (GASD) DIVISION (HRDD)
OFFICE)

INTERNAL SMALL AND HUMAN

RECONCILIATION RISK IT DIVISION
AUDIT MEDIUM RESOURCE
DIVISION MANAGEMENT (IT PROCUREMENT &
COMPLIANCE ENTERPRISE MANAGEMENT
(RD) DIVISION (RMD) MAINTENANCE)
DIVISION DIVISION (SME) DIVISION (HRMD)

FOREIGN INFORMATION
EXCHANGE AUDIT MICRO CREDIT SECURITY, IT RISK
AND INSPECTION DIVISION (MCD) MANAGEMENT & FRAUD
DIVISION (FEAID) CONTROL DIVISION

CONTROL &
MIS &
MONITORING RURAL CREDIT
STATISTICS
DIVISION DIVISION (RCD)
DIVISION (MSD)
(CMD)

GMO, GMO, GMO,

GMO, GMO, GMO,
Dhaka Chattogram- Chattogram- GMO, Khulna GMO, Sylhet GMO, Rajshahi
Dhaka South Dhaka-North North South Jashore
Central
71 Br 87 Br. 71 Br. 56 Br. 54 Br. 65 Br 78 Br. 81 Br. 82 Br.

PO: PO: PO: PO: PO: PO: PO: PO: PO:

Bangabandhu
Dhaka South; Mirpur, CTG-North; CTG-South; Khulna; Jashore-North; Sylhet; Rajshahi;
Avenue (Dhaka Gazipur, CTG-Central; Rangamati Satkhira; Jashore-South; Moulvibazar; Pabna;
Central); Narayanganj;
Tangail, Patiya-CTG; (Khagrachhari); Bagerhat; Jhenaidah Habiganj; Naogaon;
Dhaka West; Narsingdi;
g ; Manikganj Bandarban Cox'ss Bazar
Cox Narail (Magura); Sunamganj Natore;
Dhaka East; Munshiganj Chuadanga Chapai Nawabganj;
(Meherpur)

DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br:
Wage Earners'; BWAPDA Corp; Uttara Model Agrabad Corp Laldighi Corp; Khulna Corp; Jashore Corp; DargaGate Corp Rajshahi Corp;
Dilkusha Corp; Foreign Exch; Town Wage Earners'- Daulatpur Corp, Br, Sylhet;
PM's Office; Shilpa Bhaban;
Corporate Ctg Khulna;
DU Corp Br; Sadarghat Corp;
Hotel InterContinental; Chawk Bazar;
Branch
Dhaka Cantt.; Narayangonj Corp
Dhanmondi;
Gulshan Corp.

18 ANNUAL REPORT 2023

 SONALI BANK PLC
Credible and Smart
GM & Company Secretary CEO & MANAGING
COMPANY AFFAIRS AND BOARD DIRECTOR'S
DIVISION (CABD) SECRETARIAT Corporate Organogram

Sonali Bank Offices/Branches

DMD DMD DMD Head Office Divisions : 47
GM Office (GMO) : 18
Principal Office (PO) : 69

Principal (GM) GM,

GM
GM TRAINING DIVISION Local Office Local Office Br. : 1
GM :
(TD)
GM, GM Headed Corporate Br. 2
Recovery-LO DGM Headed Corporate Br. : 33
AGM Headed Br. : 123
BRANCHES COMMON GM, SPO Headed Br. : 538
Sonali Bank
CONTROL SERVICES BB Avenue PO Headed Br. : 533
Staff College
DIVISION (BCD) DIVISION (CSD)
Corp Br Overseas Br. : 2
6 SBTITraining Institutes) Total Branches : 1,232
BUSINESS ESTABLISHMENT &
:
CTG, Mymensingh, GM,
DEVELOPMENT ENGINEERING Khulna, Rajshahi, Ramna Corp Sonali Investment Limited : 1
DIVISION (BDD) DIVISION (EED) Bogura, Cumilla. Br SECI, USA : 1
Sonali Bangladesh (UK) Limited : 1
FOREIGN
SECURITY AND
OVERSEAS Br:
GM SBL, Representative Offices : 3
REMITTANCE Kolkata Br, India
PROTOCOL
Siliguri Br, India
Sonali
MANAGEMENT
DIVISION (SPD) Investment
DIVISION (FRMD)
Representative Ltd (Subsidiary of
Office: SBPLC)
PUBLIC
MONEY LAUNDERING &
Riyadh-KSA; 3 Branches = Sonali Bank PLC Manpower:
TERRORISM FINANCING
RELATIONS PREVENTION DIVISION Jeddah-KSA;;
Kuwait
Motijheel Main Br;
Uttara;
l Mirpur.
CEO : 1
DIVISION (PRD)
6
(MLTFPD)
(ex MLTFPVD) DMD :
GM & eq. : 39
VIGILANCE AND Sonali Exchange Sonali DGM & eq. : 178
CARDS DIVISION Company Inc.
(CD)
COMPLAINT
MANAGEMENT (SECI), USA
Bangladesh AGM & eq. : 444
(UK)Ltd
DIVISION (VCMD) (Subsidiary of SBPLC)
9 Branches: (Subsidiary of
SPO & eq. : 1,532
Manhattan; SBPLC) PO & eq. : 3,323
Jackson Heights; Astoria;
Atlanta; Michigan; Paterson; 2 Branches =
SO & eq. : 8,068
: 11,680
ISLAMIC BANKING
DIVISION (IBD)
Jamaica; Ozone Park;
London Main Br.; Officer & eq.
Bronx.
1 Booth: Brooklyn. Birmingham. SS-2 (Driver) : 150
Total Manpower : 25,421

GMO, GMO,
GMO, Rangpur GMO, Dinajpur GMO, Cumilla GMO, Noakhali GMO, Mymensingh GMO, Faridpur GMO, Barishal
Bogura Jamalpur

61 Br. 62 Br. 55 Br. 82 Br. 57 Br. 57 Br. 44 Br. 86 Br. 78 Br.

PO: PO: PO: PO: PO: PO: PO: PO: PO:

Bogura-North; Rangpur; Gaibandha; Dinajpur-North; Cumilla-North; Noakhali; Mymensingh; Jamalpur; Faridpur; Barishal-East
Bogura-South; Kurigram (Lalmonirhat) ; Dinajpur-South; Cumilla-South; Feni ; Kishoreganj; Sherpur; Madaripur(Shariatpur); (Jhalakathi);

Sirajganj; Nilphamari Thakurgaon (Panchagarh) Brahmanbaria; Laxmipur Netrokona Ghatail-Tangail. Kushtia; Barishal-West;
Joypurhat Chandpur Rajbari; Patuakhali (Barguna);
Gopalganj Pirojpur;
Bhola

DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br:
Bogura Corp Rangpur Corp; Dinajpur Corp Cumilla Corp; Noakhali Corp. Mymensingh Corp Jamalpur Corp Faridpur Corp Barishal Corp.
Brahmanbaria Corp.

ANNUAL REPORT 2023 19

 SONALI BANK PLC

MILEST NES
1972, 1973, 1974 1990, 1993, 1994, 1999 2008, 2009

1972 1990 2008

• Commencement of banking operation • Paid up Capital increased to 2427.00 million • Achieved The ICMAB Best Corporate
of Sonali Bank Award.
• Submission of first profit and loss 1993
2009
Account and the Balance sheet • Paid up capital increased to 3272.00 million
• Establishment of Sonali Investment
• First agency arrangements with 47
1994 Limited
correspondents abroad
• Establishment of Sonali Exchange Co. • Introduction of SMS Banking
• Act as the agent of Bangladesh Bank in
handling Govt. transactions Inc. (SECI), USA • Deposit crossed 400000.00 million

• First net profit of 2.00 million had earned • Deposit crossed 100000.00 million
2009
• First annual report published
1999 • Achieved The Best Brand Award
• Loans and Advance crossed 100000.00 million
1973
• Paid up Capital increased from initial
20.00 million to 30.00 million 2001, 2005, 2006, 2007 2010, 2011, 2012

1974 2001 2010

• Inauguration of overseas branch in • Establishment of joint venture • Implementation of BACH and BEFTN
London (UK) and Kolkata (India) subsidiary: Sonali Bank (UK.) Ltd. • Awarded The Best Retail Banker in
Bangladesh by The Asian Banker.
2005
• Islami Banking Window
1980, 1985, 1986, 1989 • Operating profit crossed 3000.00 million
• Implementation of RMS+ Software
• Foreign remittance crossed 10000.00 million
• Introduction of Any Branch Banking (ABB)
• Loans and Advance crossed 20000.00 million
1980
• No of 1000 branch crossed 2006 2011
• Deposit crossed 500000.00 million
• Paid up Capital increased to 5000.00 million
1985 • Deposit crossed 300000.00 million
• Loans and Advance crossed 300000.00 million
• Paid up Capital increased to 55.00 million • Paid up Capital increased to 11250.00
2007
1986 • Incorporation and commencement of
2012
• Foreign remittance crossed 10000.00 million business of Sonali Bank Limited • Introduced On-line Government
Transection System (GTS)
• Paid up Capital increased to 9.000.00 million
1989 • Introduced NRB Sonali Bank e-Payment Portal
• 1st computer launched in Sonali Bank • Awarded The Strongest Bank in
Bangladesh by The Asian Banker
• Awarded The Highest Remittance
Collecting Bank
• Establishment of Sonali Polaris FT Limited

20 ANNUAL REPORT 2023

 2013, 2014, 2015 2019, 2020, 2021
2013 2019
• Deposit crossed 600000.00 million • 1st position in Annual Performance Agreement (APA) 2018-
• Achieved The Best Financial Institute of Arthokontho 19 by the Financial Institutions Division
Business Award • Achieved Center for Non-Residance Bangladesh (NRBs)
Award
2014
• Paid up Capital increased to 31200.00 million 2020
• Deposit crossed 700000.00 million • Achieved the ICMAB Best Corporate Award.
• Online Real Time Banking (ORTB) Operation being • Achieved Highest Operating Profit (21526.93 million) in
introduced Overall Banking Sector.
• Achieved The ICMAB Best Corporate Award • Achieved Highest Net Profit (3234.35 million) Among all
State Owned Commercial Banks in Bangladesh
2015
• RTGS Operation as the 4th Bank in Bangladesh 2021
• Total Assets reached 1.00 trillion for the first time amongst • 1st Position in Annual Performance Agreement (APA) by the
all banks of Bangladesh Ministry of Finance

• Paid up Capital increased to 38300.00 milion • Achieved the ICMAB Best Corporate Award
• Awarded one of the “Highest Vat Payers” by Large Tax
2016, 2017, 2018 Payers Unit (Vat) of National Board of Revenue (NBR).
• Achieved Highest Operating Profit (20903.75 million) in
Overall Banking Sector.
2016
• Deposit crossed 1.00 trillion
2022, 2023
2017
• Covered country wide 1209 branches (100%) of Online
2022
banking through Core Banking Solution (CBS). • 1st Position in Annual Performance Agreement (APA) by the
Ministry of Finance.
• Achieved Highest Operating profit (11955 million) and Net
Profit (7092 million) amongst all state owned Banks of • Achieved South Asian Federation of Accountants (SAFA)
Bangladesh Best Presented Annual Report Award.
• Paid up Capital increased to 41300.00 million • Achieved ICAB National Award for Best Presented Annual
Report 2021.
2018 • Achieved the ICMAB Best Corporate Award 2021.
• Achieved Highest Operating Profit (20257.37 million) in
Overall Banking Sector. 2023
• Achieved Highest Net Profit (2264.21 million) Among all • 1st Position in Annual Performance Agreement (APA) by the
State Owned Commercial Banks in Bangladesh Ministry of Finance.
• Achieved the ICMAB Best Corporate Award 2022.
• Achieved ICAB National Award for Best Presented Annual
Report 2022.
• Achieved South Asian Federation of Accountants (SAFA)
Best Presented Annual Report Award 2022.

ANNUAL REPORT 2023 21

SONALI BANK PLC

LIST OF CHAIRMANS
Sl. Managing Director and Chairman, Sonali Bank Tenure

01 Mr. G. M. Chowdhury 29.03.1972 – 26.03.1973

02 Mr. A. K. N. Ahmed 27.03.1973 – 17.11.1974

03 Mr. S. A. Chowdhury (Current Charge) 18.11.1974 – 24.01.1975

04 Mr. K. A. Rashid 25.01.1975 – 12.03.1981

Sl. Chairman, Board of Directors, Sonali Bank Tenure

01 Mr. A. M. Zahiruddin Khan (MP) 15.04.1981 – 31.03.1982

02 Mr. S. A. Khair 19.05.1982 – 04.12.1985

03 Mr. Chowdhury A. K. M. Aminul Haque 14.01.1986 – 30.03.1986

04 Mr. Keramat Ali 20.04.1986 – 09.04.1989

05 Major General (Retd.) M. Shamsul Haque (MP) 23.04.1989 – 24.05.1990

06 Mr. Md. Abdur Rahim (MP) 04.06.1990 – 25.11.1990

07 Mr. Md. Akhtar Ali 26.12.1990 – 30.06.1991

08 Mr. Iqbal Mahmud 04.08.1991 – 12.02.1996

09 Mr. A. N. M. Eusuf 28.02.1996 – 06.08.1996

10 Mr. M. Asafuddowlah 03.09.1996 – 03.08.1998

11 Mr. Mohammed Farashuddin 08.09.1998 – 18.11.1998

12 Mr. A. I. Aminul Islam 14.12.1998 – 14.06.2000

13 Mr. Muhammed Ali 27.06.2000 – 31.07.2001

14 Professor Dr. Amirul Islam Chowdhury 09.08.2001 – 07.08.2002

15 Mr. B. M. M. Mozharul Huq, NDC 12.08.2002 – 20.04.2003

16 Professor Mahbub Ullah 22.08.2003 – 19.04.2006

17 Mr. A. B. Mirza Md. AzizulIslam 19.04.2006 – 12.12.2006

18 Mr. Ali Imam Majumder 14.12.2006 – 16.11.2007

Sl. Chairman, Board of Directors, Sonali Bank Limited Tenure
01 Mr. Ali Imam Majumder 17.11.2007 – 09.09.2009

02 Mr. Quazi Baharul Islam 14.09.2009 – 27.12.2012

03 Dr. A H M Habibur Rahman 27.12.2012 – 19.04.2015

04 Mr. Md. Fazle Kabir 05.05.2015 – 20.03.2016

05 Mr. Mohammad Muslim Chowdhury, Chairman (Acting) 21.03.2016 – 25.07.2016

06 Mr. Md. Ashraful Moqbul 26.07.2016 – 30.07.2019

07 Mr. Ziaul Hasan Siddiqui 22.08.2019 – 21.08.2022

08 Mr. Ziaul Hasan Siddiqui 31.08.2022 – Till Date

22 ANNUAL REPORT 2023

CHIEF EXECUTIVE OFFICERS OF SBPLC
Sl. Name Designation Tenure
Administrators / Managing Directors of Sonali Bank
01 Mr. M. Fazlur Rahman Administrator 16.12.1971 - 28.03.1972
02 Mr. G. M. Chowdhury Managing Director 29.031972 – 26.03.1973
03 Mr. A. K. N. Ahmed Managing Director 27.03.1973 – 17.11.1974
04 Mr. S. A. Chowdhury (Current Charge) Managing Director 18.11.1974 – 24.01.1975
05 Mr. K. A. Rashid Managing Director 25.01.1975 – 02.06.1979
06 Mr. S. A. Chowdhury (Current Charge) Managing Director 05.06.1979 – 31.07.1979
07 Mr. K. A. Rashid Managing Director 01.08.1979 – 12.03.1981
08 Mr. Abul Hashem (Current Charge) Managing Director 13.03.1981 – 02.05.1981
09 Mr. M. Ijadur Rahman Managing Director 03.05.1981 – 05.09.1983
10 Mr. Lutfar Rahman Sarker Managing Director 06.09.1983 – 01.01.1985
11 Mr. Ashraful Haque Managing Director 02.01.1985 - 31.07.1986
12 Mr. Shah Md. Afanur (Current Charge) Managing Director 01.08.1983 - 09.08.1986
13 Mr. A. A. Qureshi Managing Director 10.08.1986 - 01.10.1988
14 Mr. M.M.Nurul Haque (Current Charge) Managing Director 02.10.1988 - 18.04.1989
15 Mr. M. Ahsanul Haque Managing Director 19.04.1989 – 01.08.1996
16 Mr. Kh.Monjur Murshid (Current Charge) Managing Director 02.08.1996 - 02.08.1996
17 Mr. A. Q. Siddiqui Managing Director 03.08.1996 – 18.02.1997
18 Mr. Khandkar Ibrahim Khaled Managing Director 18.02.1997 – 03.11.1997
19 Mr. Mahbubur Rahman Khan Managing Director 03.11.1997 – 02.11.1999
20 Mr. Mahammad Hussain Managing Director 03.11.1999 – 02.01.2000
21 Mr. Md. Yusuf Ali Hawlader (Acting) Managing Director 03.01.2000 – 05.01.2000
22 Mr. Md. Enamul Haque Choudhury Managing Director 06.01.2000 – 15.05.2001
23 Mr. S. A. Chowdhury Managing Director 16.05.2001 - 12.11.2001
24 Mr. Rabiul Hossain Managing Director 12.11.2001 – 08.07.2004
25 Mr. M. Tahmilur Rahman Managing Director 09.07.2004 – 16.11.2006
26 Mr. Md. Amanullah (Additional) Managing Director 17.11.2006 – 16.12.2006
27 Mr. S. M. Aminur Rahman Managing Director 17.12.2006 – 14.11.2007
CEO & Managing Directors of Sonali Bank Limited
01 Mr. S. M. Aminur Rahman Managing Director & CEO 15.11.2007 – 25.01.2008
02 Mr. Mohammad Humayun Kabir(Additional) Managing Director & CEO 26.01.2008 - 27.01.2008
03 Mr. S. A. Chowdhury Managing Director & CEO 28.01.2008 – 27.01.2010
04 Mr. Kazi Fakhrul Islam (Additional) Managing Director & CEO 28.01.2010 – 19.05.2010
05 Mr. Mohammad Humayun Kabir Managing Director & CEO 20.05.2010 – 19.05.2012
06 Mr. Mohammad Atiqur Rahman (Additional) Managing Director & CEO 20.05.2012 – 16.06.2012
07 Mr. Pradip Kumar Dutta Managing Director & CEO 17.06.2012 - 16.06.2016
08 Mr. Ataur Rahman Prodhan (Additional) Managing Director & CEO 17.06.2016 – 23.08.2016

09 Mr. Md. Obayed Ullah Al Masud CEO & Managing Director 24.08.2016- 23.08.2019

10 Mr. Md. Ataur Rahman Prodhan CEO & Managing Director 28.08.2019- 27.08.2022

11 Mr. Md. Afzal Karim Chief Executive Officer 28.08.2022-Till Date

ANNUAL REPORT 2023 23

24
SONALI BANK PLC AT A GLANCE
Capital
Loans and Classified Foreign Operating Manpower Manpower No of Authorized Paid up
Year Deposit Import Export Net Profit Adequacy
Advances Loans remittance Profit (Officer) (Staff) Branches Capital Capital
Ratio
SONALI BANK PLC

2023 1506184 1008053 133410 467313 20215 86313 38462 6515 10.07 16768 1489 1232 60000 45300
2022 1420363 846430 125537 436769 25988 109210 23823 3710 10.05 15806 1736 1231 60000 45300
2021 1350816 690597 119585 314539 32114 125264 20904 3457 10.04 16288 1912 1229 60000 45300

ANNUAL REPORT 2023

2020 1258786 586233 107674 165662 25173 129056 21527 3234 10.02 16738 2180 1226 60000 45300
2019 1158788 551026 111994 255965 25666 111483 17100 2710 10.09 17245 2364 1224 60000 45300
2018 1097666 464166 121883 257020 32503 102781 20257 2264 10.10 14671 2600 1215 60000 45300
2017 1064311 423218 149302 1155300 28494 82292 11955 7092 10.35 15308 2993 1211 60000 41300
2016 1031608 384538 109115 134328 36882 105922 4251 1516 10.33 18793 1410 1209 60000 38300
2015 866012 346346 86849 200599 45432 124798 8651 587 10.08 19401 2699 1207 60000 38300
2014 778043 337554 86437 300143 63525 127652 8547 6055 12.24 19554 2892 1204 60000 31200
2013 685895 343451 103769 195892 62967 132862 2971 3580 7.59 19653 3237 1203 20000 11250
2012 599294 378147 125975 287288 87408 116866 11036 (24959) (0.94) 20088 3295 1200 20000 11250
2011 533192 345991 61588 307479 80878 101538 12391 9957 12.60 18596 3342 1196 20000 11250
2010 478134 286098 68315 164043 74143 104378 8489 (975) 10.80 17989 2851 1187 20000 9000
2009 406152 254023 69834 96864 64442 102609 2311 3490 14.60 18091 3415 1183 20000 9000
2008 364386 231167 72677 151465 79390 103445 1617 2311 12.61 11507 10332 1182 20000 9000
2007 328997 206348 92014 76497 78046 92178 4247 974 12.47 11769 10773 1183 10000 9000
2006 302303 241029 58901 67763 79695 98449 3006 (36276) (16.32) 12118 11155 1183 10000 5000
2005 277079 227001 51126 118528 64092 75482 3964 208 4.06 12380 11553 1183 10000 3272
2004 252234 168283 47654 85239 57213 76680 953 158 4.65 12732 11718 1186 10000 3272
2003 230339 155198 49664 52577 47907 65535 540 106 5.08 12260 12455 1186 10000 3272
2002 222222 156113 52863 52940 41503 66098 910 159 5.07 12380 12857 1221 10000 3272
2001 215541 141993 54399 41419 43809 50090 491 82 5.02 12728 13025 1291 10000 3272
2000 197381 133281 51507 50822 44211 47935 797 132 - 12171 13875 1293 10000 3272
 Capital
Loans and Classified Foreign Operating Manpower Manpower No of Authorized Paid up
Year Deposit Import Export Net Profit Adequacy
Advances Loans remittance Profit (Officer) (Staff) Branches Capital Capital
Ratio
1999 169373 123563 57761 35276 38958 41303 126 126 - 11990 14065 1306 10000 3272
1998 151707 94441 47112 34271 36828 29793 102 102 - 12061 14457 1311 10000 3272
1997 136062 85451 39009 32040 33158 24092 132 132 - 11629 14496 1313 10000 3272
1996 123835 76116 30867 29505 26284 19810 248 248 - 8716 17527 1313 10000 3272
1995 110833 65830 25081 41872 20998 19781 716 716 - 8667 17551 1310 10000 3272
1994 101411 53893 21245 28368 18818 18809 613 613 - 8736 16941 1307 10000 3272
1993 84685 53631 21600 13136 12140 15385 20 20 - 8149 17487 1303 10000 3272
1992 76678 48693 17567 13294 10557 14984 45 45 - 8285 16477 1300 10000 2427
1991 68766 45218 11971 12234 10668 13756 17 17 - 7661 17450 1296 10000 2427
1990 57392 44311 - 16980 12559 13180 51 51 - 7608 17650 1291 10000 2427
1989 52214 41868 - 20190 11335 11846 52 52 - 7480 18222 1285 200 55
1988 45795 35277 - 17271 9703 11305 160 160 - 7337 18507 1276 200 55
1987 39629 29808 - 16563 7531 11356 164 164 - 7148 18441 1262 200 55
1986 35572 29272 - 14465 6835 10300 459 459 - 7363 18522 1254 200 55
1985 34576 27541 - 13514 7290 8501 499 499 - 6080 19191 1245 200 55
1984 27031 22123 - 9721 6151 9081 552 552 - 6099 18321 1233 200 30
1983 20497 17011 - 9796 5841 11022 505 505 - 5253 16084 1214 50 30
1982 15961 16832 - 9432 5675 8343 481 481 - 3931 13776 1055 50 30
1981 11927 11856 - 8182 4701 5101 232 232 - 3947 13940 1031 50 30
1980 10967 9626 - 10926 4648 4206 177 177 - 18183 1011 50 30
1979 8388 6756 - 7908 4051 5773 96 96 - 13481 843 50 30
1978 5996 4833 - 3632 3363 3885 64 64 - 11744 709 50 30
1977 4662 3625 - 2951 2336 1805 98 98 - 10135 600 50 30
1976 3844 2419 - 2175 1649 777 91 91 - 8556 450 50 30
1975 3329 2151 - 2741 912 442 97 81 - 6989 400 50 30

ANNUAL REPORT 2023

1974 2278 1677 - 2163 663 189 40 31 - 6294 359 50 30
1973 2103 1290 - 703 525 216 25 21 - 5760 306 50 30
1972 1731 854 - 43 22 - 05 02 - 4708 274 50 20

25
SONALI BANK PLC

BOARD OF DIRECTORS

Mr. Molla Abdul Wadud Mr. Md. Afzal Karim

Director Chief Executive Officer

Professor Dr. Mohammad Kaykobad Dr. Abul Kalam Azad Mr. Ziaul Hasan Siddiqui
Director Director Chairman

26 ANNUAL REPORT 2023

 Mr. Gopal Chandra Ghosh
Director
Dr. Daulatunnaher Khanam
Director
Mr. A.B.M. Ruhul Azad Dr. Md. Matiur Rahman Mr. Tauhidul Islam
Director Director Company Secretary

ANNUAL REPORT 2023 27

SONALI BANK PLC

COMPOSITION OF COMMITTEES
OF THE BOARD OF DIRECTORS
Executive Committee
Sl. Name Status with the Bank Status with the Committee
1 Mr. Ziaul Hasan Siddiqui Chairman Chairman
2 Mr. A.B.M Ruhul Azad Director Member
3 Mr. Molla Abdul Wadud Director Member
4 Mr. Md. Afzal Karim Chief Executive Officer Member
5 Mr. Tauhidul Islam Company Secretary Secretary

Audit Committee
>

Sl. Name Status with the Bank Status with the Committee
1 Mr. Gopal Chandra Ghosh Director Chairman
2 Dr. Daulatunnaher Khanam Director Member
3 Professor Dr. Mohammad Kaykobad Director Member
4 Dr. Md. Matiur Rahman Director Member
5 Mr. Tauhidul Islam Company Secretary Secretary

Risk Management Committee

Sl. Name Status with the Bank Status with the Committee
1 Mr. A.B.M Ruhul Azad Director Chairman
2 Dr. Daulatunnaher Khanam Director Member
3 Mr. Molla Abdul Wadud Director Member
4 Professor Dr. Mohammad Kaykobad Director Member
5 Mr. Tauhidul Islam Company Secretary Secretary

Composition of Shariah Supervisory Committee

Sl. Name Status with the Committee
1 Professor Dr. Muhammad Abdur Rashid Chairman
2 Mr. Molla Abdul Wadud Member
3 Mr. Md. Afzal Karim Member
4 Sanchia Binte Ali Member
5 Mr. Md. Abdul Awwal Sarkar Member
6 Mufti Mohammad Muhibbullahil Bakee Member
7 Dr. Md. Ruhul Amin Rabbani Member

28 ANNUAL REPORT 2023

EXECUTIVE
COMMITTEE

Sl. Name Status with the Bank Status with the Committee
1 Mr. Ziaul Hasan Siddiqui Chairman Chairman
2 Mr. A.B.M Ruhul Azad Director Member
3 Mr. Molla Abdul Wadud Director Member
4 Mr. Md. Afzal Karim Chief Executive Officer Member
5 Mr. Tauhidul Islam Company Secretary Secretary

ANNUAL REPORT 2023 29

SONALI BANK PLC

AUDIT
COMMITTEE

Sl. Name Status with the Bank Status with the Committee

1 Mr. Gopal Chandra Ghosh Director Chairman

2 Dr. Daulatunnaher Khanam Director Member

3 Professor Dr. Mohammad Kaykobad Director Member

4 Dr. Md. Matiur Rahman Director Member

5 Mr. Tauhidul Islam Company Secretary Secretary

30 ANNUAL REPORT 2023

RISK MANAGEMENT
COMMITTEE

Sl. Name Status with the Bank Status with the Committee

1 Mr. A.B.M Ruhul Azad Director Chairman

2 Dr. Daulatunnaher Khanam Director Member

3 Mr. Molla Abdul Wadud Director Member

4 Professor Dr. Mohammad Kaykobad Director Member

5 Mr. Tauhidul Islam Company Secretary Secretary

ANNUAL REPORT 2023 31

SONALI BANK PLC

Ziaul Hasan Siddiqui

Chairman

Mr. Ziaul Hasan Siddiqui joined as Chairman of the Board of Ltd., Board member of Karma Sangsthan Bank Ltd. and AB
Directors of Sonali Bank PLC on 22 August, 2019. He is the Bank Ltd. He was an advisor to Prime Bank Limited and was
former Deputy Governor of Bangladesh Bank. an independent director of Union Capital Ltd., Summit Power
Ltd., and Summit Purbanchal Power Co. Ltd. Before joining
Mr. Ziaul Hasan Siddiqui has track-record of successfully
as Chairman of Sonali Bank Limited, Mr Siddiqui was CEO
developing customized financial and management strategies
of IOF (IGW Operators Forum). He taught Microeconomics,
to meet the needs of bank on the basis of continuous
Macroeconomics, Financial Institutions and Markets at BRAC
analysis of economic trends. He has strong ability to quickly
University, Northern University, University of Asia Pacific and
understand an organization; evaluate business and investment
Australian Catholic University in Sydney. He also lectured at
opportunities prevailing in the market and leverage those based
Bangladesh Public Administration Training Centre, Defence
on organizational strengths. He is equally savvy to ensure
Services Command and Staff College and National Defence
business growth and diversification.
College.
Mr. Siddiqui has highly successful and results-driven exposure in
Mr. Siddiqui obtained his MPA (Masters in Public Administration)
the financial sector with more than 35 years of comprehensive
degree from Harvard University (USA) and MA degree
versatile Central Bank experience. Mr. Siddiqui started his career
in Economics from Dhaka University. He enhanced his
with Bangladesh Bank in 1976. He served as Deputy Governor
professional expertise by participating in a number of foreign
of Bangladesh Bank for more than 5 years with specialization
training courses including ones from Ohio State University,
in monetary policy, foreign exchange policy and reserve
World Bank, IMF and ADB. Besides having professional diploma
management. He also served as Head of Financial Intelligence
in Banking (DAIBB), Mr. Siddiqui has completed Training and
Unit (FIU) of Bangladesh tasked with the responsibility of
Assessment Certificate Course from Australia.
upgrading Anti Money Laundering (AML) regime to international
standard and formulating strategies for Combating Financing of Late Rahim Uddin Siddiqui, father of Mr. Siddiqui was a
Terrorism (CFT). He played a key role in making Taka Convertible renowned Journalist of many prominent National Dailies of
for current account transaction, moving from fixed to floating the country, including the Daily Azad, Ittefaq, Millat etc and
exchange regime, sovereign rating of Bangladesh and drafting died a premature death while working as a class one gazetted
the Guidelines for Foreign Exchange Transaction. officer (information officer). Late Julekha Siddiqui, mother of
Mr. Siddiqui was a homemaker. Mr. Siddiqui’s wife Mrs. Bilu
He was the Managing Director of Security Printing Press
Siddiqui, is a Grade-A singer of Bangladesh Betar and BTV. She
Corporation Bangladesh Ltd. and a member of the APG
also performs in different TV channels. Mr. Siddiqui is blessed
Steering Committee representing South Asian Countries. He
with a daughter and a son. Both of them live in Australia.
also acted as the Chairman of Bangladesh Commerce Bank

32 ANNUAL REPORT 2023

 A.B.M. Ruhul Azad
Director

Md. A.B.M.Ruhul Azad was appointed as a Director of the Board was promoted as Joint Secretary in 2013 and promoted as
of Directors, Sonali Bank PLC on 15 June, 2021. He is the Additional Secretary in 2017.
Chairman of the Risk Management Committee and an active
Mr. Azad obtained his B.Sc. (Honors) degree in Agricultural
member of Executive Committee of the Board of Directors
Science from Sher-E-Bangla Agricultural University, Dhaka. He
of Sonali Bank PLC. He was the former Additional Secretary
also obtained MSS degree in Government and Politics.
of Financial Institutions Division of Ministry of Finance,
Government of the People’s Republic of Bangladesh. Mr. Azad has participated in different international conferences
and meetings as a member of Bangladesh delegation. Mr. Azad
Mr. Azad is respected for his innovative ideas, concepts and
had the opportunity to participate various training, workshop
various challenging endeavors in Management & Public
and seminar held in different countries of the world such as
Administration. Mr. Azad enjoyed various positions at the
India, South Korea, Singapore, Thailand, Vietnam, China,
national level such as Additional Secretary of Ministry of Youth
Netherlands, Austria, Belgium, Switzerland, France, Turkey,
and Sports, Director of Bangladesh Krira Shikkha Pratisthan
Italy and USA. He also completed training program on “Public
(BKSP), Deputy Director of National Housing Authority (NHA)
Administration Development Program on Public Policy,
and Deputy Secretary, Ministry of Industries.
Service Delivery and Negotiations” from Duke University, North
A. B. M Ruhul Azad is a career Civil Servant and started his Carolina, USA. He has a special training on Intellectual Property
career of as an officer of BCS 8th Batch (1986). The first date Right System.
of his joining in the service was 20 December 1989. During the
A. B. M Ruhul Azad was born on 1st January, 1963 in a
early stage of his career Mr. Azad worked in different position
respectable muslim family in the District of Narsingdi. He is
of Bangladesh Ansar. In 2006, Mr. Azad was appointed as
married to Ms. Mirza Morsheda Mahbub. They are blessed with
the Deputy Secretary of Ministry of Public Administration. He
two sons.

ANNUAL REPORT 2023 33

SONALI BANK PLC

Dr. Daulatunnaher Khanam

Director

Dr. Daulatunnaher Khanam has been Director of Sonali Bank Dr. Khanam took part in international training programs,
PLC since January 13, 2019. Prior to this, she was the Deputy workshops and seminars in USA, UK, Japan, Malaysia, Singapore,
Managing Director of Bangladesh House Building Finance Thailand, Tunisia and Turkey. She participated in many training
Corporation. programs at home as well.

Dr. Khanam started her banking career as Senior Officer in Dr. Khanam authored important text books of Economics
Bangladesh Krishi Bank in 1984. Right from the beginning she for Higher Secondary students and Bangladesh Studies for
applied herself to excel as a professional banker. As a result, she graduate students that have become very popular among the
rose steadily through ranks to become the Deputy Managing students and teachers. She has serious publications to her
Director in 2018. During her long career, she held various credit on various economic topics in prestigious journals at
important positions in the bank. home and abroad.

Dr. Khanam has a distinguished academic career. She graduated Dr. Khanam is a life member of Bangladesh Economic
from Jahangirnagar University with honours in Economics in Association and Economic Association of Jahangirnagar
1981 and completed her MSc. in 1983 from the same University. University and Associate member of Bangladesh Society for
One year after she had joined BKB, she received a scholarship Training & Development Center, Dhaka.
of the Indian Government for Ph.D in Economics in Banaras
She was born in a respectable Muslim family in 1959 in the
Hindu University, Banarasi, India. Her dissertation topic was
district of Kishoregonj. She is married to Mr. Md. Shamsul Kabir
‘Role of Institutional Finance in Agricultural Development of
Khan and is blessed with two daughters and one son.
Bangladesh.’ She was awarded Ph.D degree in 1990.

34 ANNUAL REPORT 2023

 Molla Abdul Wadud
Director

Mr. Molla Abdul Wadud joined as a Director of Sonali Bank professional experience in gas sector, he worked as Secretariat
PLC on 30 July, 2019. He is the member of the Executive officer, Deputy Manager, Manager, Deputy General Manager,
Committee and Risk Management Committee of the Board of Company Secretary and General Manager of Bakhrabad Gas
Directors of Sonali Bank PLC. He has been playing important Distribution Company Limited (BGDCL).
role in improving the activities of Islami Banking of the Bank as
Mr. Molla Abdul Wadud completed his graduation in Commerce
a member of Shariah Supervisory Committee. He is the former
from the University of Chittagong. Along with graduation, he
General Manager and Company Secretary of Bakhrabad Gas
also obtained LL.B. degree from the same University. He also
Distribution Company Limited (BGDCL).
completed Masters in commerce from Dhaka University.
Mr. Molla Abdul Wadud has highly successful and results He enhanced his professional expertise by participating in
driven exposure in the Gas sector. He is respected for his a number of in-country and foreign training courses during
innovative ideas, concepts and various challenging endeavors his career including Integrity Management in Organisations,
in the Gas sector of Bangladesh. He has more Administration. Training of trainers etc. He visited Malaysia, Thailand and Saudi
He has exceptional ability of organizing by ensuing coherent Arabia for the purpose of training and religious prayers.
and integrated management atmosphere. He has shown his
Mr. Wadud, Son of Late Shamsul Haque Molla and Meherun
prudence in drafting cases of the company. He was also served
Nessa Khanom, was born in Narsingdi on 02 June, 1958. He is
as compliance standard.
married with Mrs. Mahinoor Akter Chowdhury and blessed with
Mr. Molla Abdul Wadud started his career in Bakhrabad Gas two daughters.
Distribution Company Limited in 1985. During 32 years tenure of

ANNUAL REPORT 2023 35

SONALI BANK PLC

Professor Dr. Mohammad Kaykobad

Director

Professor Dr. Mohammad Kaykobad was appointed as a Bangladesh. He has been leading Bangladesh IOI team since
Director of the Board of Directors, Sonali Bank PLC on 25 2008 from which Bangladesh received 22 medals including
August, 2020. He received M.S.(Hons.) in Engineering from 4 silver medals. He was the Chief Judge of IIT Kanpur Asia
OMEI, now Odessa State Maritime University, in 1979. In 1982 Region Site of ICPC in 2010, 2011 and 2013. He received the
he received an M.Eng. Degree from AIT, Thailand, and a Ph.D outstanding coach award of ICPC in 2002 at Honolulu, Hawaii,
from the Flinders University of South Australia in 1988. Dr. only Senior Coach award recipient at the World Finals of ICPC
Kaykobad is a Fellow of Bangladesh Academy of Sciences(BAS). held at St. Petersburg, Russia in 2013, and ICPC Foundation
Life time coach award in 2019 at Porto, Portugal. He was also
Dr. Kaykobad was a Professor at CSE Department, BUET since
awarded a gold medal by Bangladesh Physics Olympiad for
1997 and served as its Head during 1996-1999. He served as
his contributions to Olympiad movement. Dr. Kaykobad was
Dean of the Faculty of EEE, BUET for two years. He is now a
recognized as distinguished alumnus in 2008 by his alma mater
distinguished Professor, CSE Department, BRAC University. Dr.
The Flinders University of South Australia. He was invited in the
Kaykobad also served as a professor at CSE Department, Kyung
prestigious Heidelberg Laureate Forum, 2014, and participated
Hee University, South Korea and at North South University
there. Dr. Kaykobad is a frequent visitor of schools, colleges and
(NSU), Bangladesh.
universities of the capital and outside.
Dr. Kaykobad has published over 50 research articles in
Dr. Kaykobad was a Visiting Professor at the CSE Department,
international journals of repute. He authored, co-authored or
the Chinese University of Hong Kong, at Kyung Hee University,
edited 15 books. Many of these books are for inspiring young
Korea, ANU and Monash University, Australia and Amritapuri
students develop either programming or mathematics skill
University, India. In year 2005 the President of the country
or for developing patriotism. He was a guest co-editor of the
presented him with a Gold Medal awarded by Bangladesh
proceedings of International Conference on Computer and
Computer Society for his contribution to computer
Information Technology (ICCIT 2009) published by Academy
programming culture in the country. In year 2006 he won BAS
Publisher.
Gold Medal for physical sciences in the senior group which was
He was a co-chair of the workshop WALCOM, 2016 held at awarded by the Prime Minister of the country. Dr. Kaykobad is a
Kathmandu, proceedings of which was published by the member of the Executive Council of Bangla Academy.
famous publisher Springer. He is also a coeditor of the book on
Dr. Kaykobad has been playing active role in the computerization
“Technical Challenges and Design Issues in Bengali Language
of both public and private enterprises. He worked as a Director
Processing”. Professor Md. Zafar Iqbal and he were entrusted
of Dhaka and Chittagong Stock Exchanges for many years.
with the responsibility of editing/ rewriting 6 text books of SSC
Currently he is an independent director of Dhaka Stock
level by the Ministry of Education.
Exchange. Dr. Kaykobad is a member of Academic Council
Dr. Kaykobad was the Organizing Chair of the first ever and Syndicate of several universities. Dr. Kaykobad was also
International Computer conference ICCIT held in the soil of member of Investigation Team of multimillion dollar cyber heist
Bangladesh. He was also the Chair of the Steering Committee from Bangladesh Bank, and was the convener of Administrative
for Workshop on Algorithms (WALCOM). He is a frequent team constituted by the Government to investigate into
column writer in National Dailies authoring over 400 articles, Question leaking of public examinations.
most of which are related to education of the country. He
Dr. Kaykobad was born on 1 May, 1954 at village Jabra, District
has been one of the pioneers in introducing Mathematics
Manikganj. He is married to Saleha Sultana Kaykobad and has
Olympiad, Olympiad in Informatics and Science Olympiad in
two sons.

36 ANNUAL REPORT 2023

 Dr. Md. Matiur Rahman
Director

Dr. Md. Matiur Rahman, Member, Customs Excise & VAT Dr. Matiur has a distinguished academic career. He graduated
Appellate Tribunal was appointed as a Director of Board of from the University of Dhaka in Finance and completed his
Directors of Sonali Bank PLC on 10 February 2022. He is the masters from the same university. He stood 1st class 1st in
member of the Audit Committee of the Board of Directors of merit position with academic result. He completed his MBA
Sonali Bank PLC. Degree with major in Finance from the same university. He
also did his PhD under a distant learning program from Preston
He has more than 29 (twenty nine) years of first-hand
University, USA, where the thesis topic was ‘Individual Attitude
experience in Customs and VAT. During this time, he developed
of Shareholders in Respect of Dhaka Stock Exchange’.
in-depth knowledge in Customs and VAT laws and regulations.
He has more interest in Capital market, artificial intelligence & Dr. Matiur took part in different training sessions, both at home
modernization and has developed thorough knowledge and and abroad, on VAT accounting, Customs Modernization,
skills in that sector. Customs Automation, Post Clearance Audit, VAT Audit etc. In
PKSF, he had an extensive eight months training on Poverty
Dr. Matiur started his first job with Palli Karma Shahayak
Alleviation.
Foundation (PKSF) in 1990 as Deputy Manager Operation. There
he gained vast knowledge and expertise on rural development He was born in a respectable Muslim family in 1966 in the
and poverty alleviation. He also worked with CCI&E and EPB, district of Barishal. He is married to Mrs. Layla Kaniz. They are
where he gained knowledge on IRC, ERC, GSP regulations blessed with one son and one daughter.
etc. In the department of VAT and Excise, he worked at VAT
wing, Land Customs, Sea Customs, VAT Accounting System,
Risk Profiling, Audit, Post Clearance Audit, Investigation and
Intelligence Work, Bonded Warehouse Management etc.

ANNUAL REPORT 2023 37

SONALI BANK PLC

Dr. Abul Kalam Azad

Director

Dr. Abul Kalam Azad was appointed as Director of the Board educational and academic enrichment, as well as professional
of Director, Sonali Bank PLC on 05 September 2022. Mr. Abdul advancement.
Kalam Azad has accumulated an extensive service experience
Dr. Abul Kalam Azad conducted research on various topics
spanning over 33 years, primarily within Bangladesh Bank. During
including the importance of migrant remittances for the
this tenure, he served as an Executive Director for an impressive
Bangladesh economy, linking remittances for micro-enterprise
period of 4 years and 11 months. Before joining Bangladesh Bank,
development, dynamics and development impacts of migrant
he worked as a senior officer at Janata Bank Ltd for 5 months and
workers’ remittances, stock market development, foreign
contributed his expertise to the Bangladesh Red Crescent Society
exchange market in Bangladesh and management of migrant
for 2 years and 8 months. His diverse professional background
remittances. His research highlighted the significant role of
showcases his extensive knowledge and dedication to the field.
remittances in Bangladesh’s economy, explored the potential for
Dr. Abul Kalam Azad boasts an impressive academic profile, utilizing remittances for micro-enterprise development, analyzed
highlighted by his notable achievements and qualifications. He the dynamics of migrant workers’ remittances and examined the
obtained his Ph.D. in Finance from the esteemed University development of the stock market and foreign exchange market.
of Dhaka in 2007, where his research focused on “Financial These studies provided valuable insights into the management
Market Development in Bangladesh: Current Strategies and and impact of remittances on various sectors in Bangladesh,
Options for the Future”. Prior to that, he completed his M.Phil. contributing to the understanding of financial sector development
in International Finance at the prestigious University of Glasgow and microfinance opportunities. Dr. Azad played a prominent role
in the United Kingdom in 1998, under the distinguished Bank of in the implementation of the Financial Sector Reform Project in
England Fellowship. He obtained B.Com.(Hon’s) and M.Com. in Bangladesh from 1990 to 1996. With his extensive expertise and
Finance from the Faculty of Business Studies, University of Dhaka. knowledge, he has made significant contributions in shaping the
Furthermore, he also holds the DAIBB qualification, a Diplomaed financial landscape in Bangladesh and has actively contributed
Associate of the Institute of Bankers, Bangladesh. to the advancement of the sector through his research and
professional endeavors.
Dr. Azad’s commitment to professional growth is evident through
his active participation in diverse training programs. He attended Dr. Abul Kalam Azad serves as an adjunct faculty member at
the prestigious IMF Regional Training Institute in Singapore several esteemed universities in Bangladesh. He is associated with
for enlightening “Exchange Rate Policy Issues” program and the University of Dhaka, where he teaches in the departments
engaged in specialized training on “Diaspora & Remittances” at of Finance, Banking and Insurance, as well as International
Jonkoping University in Sweden. He also successfully completed Business. Additionally, he is a faculty member at Asian University
comprehensive sessions on World Bank procedures, banking Bangladesh in the Department of Business Studies, State
supervision, appropriate technology, treasury management and University Bangladesh in the MBA program, Stamford University
Basel II implementation. His dedication to knowledge acquisition Bangladesh in the Faculty of Business Studies, and South East
was further demonstrated through his participation in programs University in the Business Studies department. Dr. Azad’s diverse
on money laundering prevention and central banking conducted academic engagements demonstrate his commitment in sharing
by reputable institutions in Dhaka, Bangkok, and under SEANZA. knowledge and expertise across multiple educational institutions
in Bangladesh.
Dr. Azad embarked on a journey encompassing diverse
destinations including the United Kingdom, Sweden, Germany, Dr. Abul Kalam Azad, born on February 5, 1963, in the Feni district
Singapore, Malaysia, Thailand, Denmark, and Delhi. His of Bangladesh, is the esteemed offspring of the late Mr. Tajul
purposeful expedition was driven by the pursuit of official training, Islam and Mrs. Bibi Moriom.

38 ANNUAL REPORT 2023

 Mr. Gopal Chandra Ghosh
Director

Mr. Gopal Chandra Ghosh was nominated as the Director of Sonali Bank a deep understanding of accounting principles and practices. His
Limited on March 7, 2023. He is a seasoned professional with 26 years of dedication to continuous professional development and commitment
diverse work experience in various key roles, including Chief Executive to excellence make him a valuable asset in the field of accounting and
officer (CEO), Deputy Managing Director (DMD), Group CFO, Financial finance.
Controller, Head of Internal Audit, SOX Project Manager, Corporate
Mr. Gopal Chandra Ghosh, a dedicated professional, has accumulated a
Accounting Manager, and ERP Project Manager. Notably, he has spent
diverse range of training experiences, solidifying his expertise in various
10 years working for the France-based Lafarge Group Company.
aspects of management and industry regulations. In October 2004, he
Mr. Ghosh is a highly accomplished professional with a diverse skill set attended a Business Continuation Planning program by BCP Consultants
and extensive expertise in various areas of business management. With a in Singapore, showcasing his commitment in ensuring uninterrupted
strong background in finance and a keen understanding of organizational business operations.
dynamics, Mr. Ghosh has proven himself as a valuable asset in driving
In January 2005, Mr. Ghosh underwent ERP Standard Training (JDE)
change and achieving strategic objectives. His exceptional abilities
conducted by PeopleSoft in KL, Malaysia, equipping him with essential
encompass a range of disciplines, including change management,
skills in enterprise resource planning. Building on this foundation,
strategy development, financial management, IFRS reporting,
he further expanded his knowledge by attending the Sarbanes Oxley
budgetary control, internal audit, business process reengineering, ERP
Act 2002 program at the SOX Institute in Chicago, USA, in May 2007,
implementation (Oracle & SAP), internal control implementation (SOX),
enhancing his understanding of financial regulations.
and business continuity planning (BCP). With an impressive track record
of success, Mr. Ghosh consistently delivers innovative solutions and To sharpen his leadership abilities, he participated in the DRIVE
guides organizations towards growth and excellence. (Leadership) program at Lafarge University in Paris, France, in September
2008. This was followed by a Strategy for Managers program by MCE in
Mr. Gopal Chandra Ghosh holds an impressive academic background
Brussels, Belgium, in November 2008, enabling him to develop strategic
with a focus on accounting. In 1993, he earned a Master of Commerce
thinking and decision- making skills.
degree with major in Accounting from the prestigious University of
Dhaka with a First Class distinction. Prior to his master’s degree, Mr. In November 2007, Mr. Gopal Chandra Ghosh further enriched his skill
Ghosh completed his Bachelor of Commerce degree with Honors in set by attending a Project Management course at XLRI in Jamshedpur,
Accounting from the same University in 1991, also achieving First Class India, enhancing his ability to oversee and execute complex projects
honors. These educational accomplishments highlight his dedication to with efficiency. Additionally, he pursued training on Quality Management
his studies and his exceptional academic abilities. Systems (ISO 9001: 2000 & 19011:2002) through CMC International
and Environmental Management Systems (ISO 14001:2004) by Bureau
Mr. Ghosh has pursued professional education and attained
Veritas, showcasing his commitment to ensuring high standards and
memberships in renowned accounting organizations, further enhancing
compliance.
his expertise and professional standing. He is honored as a Fellow
Chartered Accountant (FCA) by the Institute of Chartered Accountants of Mr. Gopal Chandra Ghosh, a distinguished individual, born on the 21st of
Bangladesh (ICAB). Additionally, Mr. Ghosh has achieved the esteemed July in the year 1969. Mr. Ghosh is the beloved son of Mr. Chitta Ranjan
designation of Fellow Cost & Management Accountant (FCMA) and is Ghosh and Mrs. Mira Ghosh. The wisdom and guidance imparted by his
a member of the Institute of Cost and Management Accountants of parents have shaped him into the remarkable individual he is today. Mr.
Bangladesh (ICMAB). He is a Certified Public Accountant (CPA) and Gopal Chandra Ghosh, with his illustrious name, family heritage, and
holds membership with CPA Australia. With his Master of Commerce linguistic prowess, embodies a life shaped by a tapestry of experiences,
degree, Bachelor of Commerce degree, and distinguished certifications rich in cultural heritage, and guided by love and commitment. He is a
as a Certified Public Accountant (CPA), Fellow Chartered Accountant testament to the beauty of individuality and the power of connection.
(FCA) and Fellow Cost & Management Accountant (FCMA), he possesses

ANNUAL REPORT 2023 39

SONALI BANK PLC

Mr. Md. Afzal Karim

Chief Executive Officer

Mr. Md. Afzal Karim has been Chief Executive Officer of on banking that were held at home and abroad and visited
Sonali Bank PLC since August 28, 2022. Prior to this, he was several countries including USA, Singapore, Thailand, Malaysia,
Managing Director of Bangladesh House Building Finance Indonesia, Italy, Turkey and India.
Corporation (BHBFC), Formerly he held the position of Deputy
A profound philanthropist, Mr. Karim is engaged in many
Managing Director of Sonali Bank PLC and Bangladesh Krishi
humanitarian activities. He was born in the district of Barishal
Bank respectively. He was appointed to these positions by the
in 1964. His hobby is travelling, swimming and reading books.
consent of Government of Bangladesh.
Mr. Karim also holds the following Ex-Officio positions at home
Mr. Karim was only rewarded the Integrity Award among all MD's
and abroad:
and CEO's of Banks and Financial Institutions of Bangladesh
for FY 2021-2022 in recognition of his efficiency, honesty Chairman:
and integrity by the Financial Institutions Division, Ministry of • Padma Bank PLC.
Finance. • Bangladesh Foreign Exchange Dealers Association
(BAFEDA)
Md. Afzal Karim is a man with distinctive vision, dynamism,
• Primary Dealers Bangladesh Limited (PDBL)
commitment & innovative ideas. He also has an illustrious career
• Sonali Investment Limited.
with 35 years of diversified experience in banking and other
• Sonali Intellect Limited.
organizations. He joined at Bangladesh House Building Finance
Corporation (BHBFC) as Senior Principal Officer in 1995. Prior to
Vice-President:
his joining at BHBFC he had a variety of responsible positions for
eight years in four other domestic and international businesses • Institute of Bankers, Bangladesh (IBB)
including one government institutions. He is ISSB (Inter Service
Director:
Selection Board) qualified (EME-06, Board-621, EME-8A/2) in
• Sonali Exchange Co Inc., New York
1987 for Commissioned Officer (Captain) at Bangladesh Army,
• Investment Corporation of Bangladesh (ICB)
but finally he developed his carrier in Banking Sector.
• Central Depository Bangladesh Limited (CDBL)
Mr. Karim graduated from Khulna University of Engineering • Industrial and Infrastructure Development Finance
and Technology (KUET) with BSc. in Mechanical Engineering. Company Limited (IIDFC).
He also obtained Post Graduate Diploma Degree in
Member:
Industrial Management (PGDIM) from Bangladesh Institute
of Management (BIM) and MBA (Major in Finance & Banking) • Governing Board, Bangladesh Institute of Bank
from Northern University, Bangladesh with distinction. He took Management (BIBM).
part in numerous training courses, seminars and workshops

40 ANNUAL REPORT 2023

 CHIEF EXECUTIVE OFFICER

MR. MD. AFZAL KARIM

Chief Executive Officer

DEPUTY MANAGING DIRECTORS

SANCHIA BINTE ALI MIR MOFAZZUL HOSSAIN SUBHASH CHANDRA DAS FCA, FCMA

KAZI MD. WAHIDUL ISLAM PARSOMA ALAM SHAMIM UDDIN AHMED MD. ABU SAYED
Transferred to Rupali Bank Joined on 28.04.2024 Promoted and Joined
PLC on 25.04.2024 on 15.04.2024

ANNUAL REPORT 2023 41

SONALI BANK PLC

GENERAL MANAGERS

MD. REZAUL KARIM TAUHIDUL ISLAM MD. ABDUL QUDDUS

MIR HASAN MAHAMMAD ZAHID A.K.M. SALIM AHMED MD. MONIRUZZAMAN

MD. ALI ASHRAF ABU TAHER MD. NURUN NABI MD. ZAMAN MOLLA

42 ANNUAL REPORT 2023

GENERAL MANAGERS

KHOKON CHANDRA BISWAS GOPAL CHANDRA GOLDER GIAS UDDIN MAHMOOD

MD. RASHIDUL ISLAM MD. SAFAYAT HOSSAIN PATWARY MD. RAFIQUL ISLAM

MD. NAZRUL ISLAM ASHRAFUL HAIDER CHOWDHURY KAZI MD. MOFIZUL ISLAM

ANNUAL REPORT 2023 43

SONALI BANK PLC

GENERAL MANAGERS

MD. MIZANUR RAHMAN MAZUMDER MD. SHAHJAHAN MD. AMINUL ISLAM

MOHAMMAD MOHIUDDIN BHUIYAN SHAHIDA KHANAM MD. SHAFIQUL ISLAM

ZAHIDUL ISLAM MOLLAH MD. ARSHAD HOSSAIN MD. SHAJAHAN

44 ANNUAL REPORT 2023

GENERAL MANAGERS

MD. SORIAT ULLAH MD. MUSA KHAN MOHAMMAD IQBAL KABIR

NAIMA AKHTER MD.SAIFUL AZIZ MD. DELOWER HOSSAIN

Chief Engineer

IMRAN AHMED MOHAMMAD REZWAN AL MD. BAREKUZZAMAN MD IQBAL HOSSAIN

Chief Audit Officer BAKHTIAR (CITO) Chief Law Officer ACMA, CFA, FRM
(Tenure ended on 07.02.2024) Chief Information Technology Officer Chief Financial Officer (CFO)

ANNUAL REPORT 2023 45

SONALI BANK PLC

DEPUTY GENERAL MANAGERS

Sl. Name Sl. Name
1 MR. MD. GOLAM SIDDIQUE 42 MR. MOHD. MOKBUL HOSSAIN
2 MR. MUNSHI ZAHIDUR RASHID 43 MR. MD. JASHIM UDDIN KHAN
3 MS. SHAHNAZ BEGUM 44 MR. KHONDOKAR ABDUS SALAM
4 MR. MOHAMMAD MONOARUL ISLAM 45 MR. MD. ASHADUZZAMAN
5 MR. MOHD. RABIUL ALAM 46 MR. MD. KHAIRUL ALAM
6 MR. MD. MANIR HOSSAIN 47 MR. MD. MASUDUR RAHMAN
7 MS. UMME KULSUM 48 MR. MD. SERAJUL ISLAM CHOWDHURY
8 MS. BITHI AKTER 49 MR. ALAMGIR KABIR CHOWDHURY
9 MR. MD. TANGIMUL ISLAM 50 MR. MD. MANIRUL HASAN
10 MR. MOHAMMED ISMAIL 51 MR. MD. SHAFIZ UDDIN
11 MS. RAWSHAN JAHAN 52 MR. DEVASREE MITRA
12 MS. AKLIMA ISLAM 53 MR. MD. GOLAM HASAN
13 MR. JAHANGIR ALAM 54 MR. MD. ALTAF HOSSAIN
14 MR. MD. YAKUB MAZUMDER 55 MR. MD. BABUL HOWLADER
15 MR. MOHAMMAD FAZLUL KABIR 56 MR. MD. AMINUR RAHMAN KHAN
16 MR. MD. ABDUL BAREK CHOWDHURY 57 MR. MD. MAHFUZUR RAHMAN
17 MR. MD. ZAHID IQBAL 58 MR. MD. KHAIRUL ANAM BHUIYAN
18 MR. MD. SARWAR ABEDIN 59 MR. MD. OHIDUZZAMAN
19 MR. MD. ABDUR RAZZAQUE 60 MR. MD. SALIM ULLAH
20 MR. MD. SHAHADAT HOSSAIN 61 MR. MD. HARUN-OR-RASHID
21 MR. MOHAMMAD FOORKAN 62 MS. SHAMEEMA NOOR
22 MR. MD. ATIQUR RAHMAN 63 MS. NILUFA SULTANA RUMA
23 MR. MD. REZWANUL ISLAM 64 MR. ABU BAKAR SIDDIQUE
24 MR. MUHAMMAD MONIRUZZAMAN 65 MR. MD. MAZIBUR RAHMAN
25 MR. MD. MAHTAB HOSSAIN 66 MR. MD. HAFIZUR RAHMAN
26 MR. MOHAMMAD YASIN 67 MR. MD. MUSTAFIZUR RAHMAN
27 MR. MD. SHAH ALAM 68 MR. GOLAM MOHIUDDIN
28 MR. MD. EMRAN ULLAH 69 MR. MD. JAHANGIR ALAM SIDDIQUEE
29 MR. GOURNITAI BHADRA 70 MR. PRADIP KUMER PAUL
30 MS. PRANATI RANI DAS 71 MR. INDRAJIT DAS
31 MR. SYED MD. TOWHIDUL HAQUE 72 MS. NASIMATUL ZANNAT
32 MR. MD. NAZRUL ISLAM 73 MR. MD. ABDUL MATIN
33 MR. NIZAM UDDIN BHUIYAN 74 MR. MD. MIZANUR RAHMAN
34 MR. SAMIR KUMAR BISWAS 75 MR. SANJIB KUMAR GHOSH
35 MR. MD. RAFIQUL ISLAM 76 MR. FARID AHMAD
36 MR. MOHAMMAD SHAHBIR 77 MR. MD. ABDUL HADI
37 MR. SK. SHAHIDUL ISLAM 78 MR. MOHAMMAD KAMRUL ALAM SIDDIQUI
38 MR. MD. SHAWKAT ZAMAN 79 MS. SHAMIM ARA BEGUM
39 MR. MD. FAKRUL ISLAM 80 MR. MD. AMINUR RAHMAN
40 MR. MD. MAHMUDUL HAQUE 81 MR. MD. ABDUL MALEQUE
41 MR. MD. ZAKIR HOSSAIN MAZUMDER 82 MR. MOHD. NAZMUL HAQUE

46 ANNUAL REPORT 2023

Sl. Name Sl. Name
83 MR. MD. JAHANGIR ALAM SARDAR 126 MR. MD. MAMUNUR RASHID BHUIYAN
84 MR. BIVASH CHANDRA HOWLADER 127 MR. ABDULLAH FOYSAL
85 MR. BIKASH CHANDRA DAS 128 MR. HASAN HAFIZUR RAHMAN
86 MS. NURUN NEHER 129 MR. MD. HASMOT ALI
87 MS. SHAHANAZ BEGUM 130 MS. BEGUM ASHRAFUN NESA
88 MR. MD. FAZLUL HAQUE 131 MR. PRITI KUSUM CHAKMA
89 MR. RASHED BIN ROUF 132 MR. SHAMIR BIKASH PAUL
90 MR. MAHBUBUL ALAM 133 MS. SHAWKAT ARA KHANOM
91 MR. MD. SHAHEEN MIAH 134 MR. MD. KHONDAKER MAZHARUL KABIR
92 MR. MD. MUSTAFA ALI SIDDIQUEE 135 MR. MD. NASIRUDDIN KHAN
93 MR. MD. ZAHURUL ISLAM 136 MR. SHEIK MOHAMMAD SUJADUL HUQ
94 MR. HIRALAL DAS 137 MR. MD. OLIUZZAMAN
95 MR. MD. FERDOUS SERNIABAT 138 MR. MD. FARUKH HASAN
96 MR. SATYAJIT PAUL 139 MR. MD. MOTALEB HOSSAIN
97 MR. MOHAMMAD BELAL HOSSAIN 140 MR. IFTEKHAR MAHMUD
98 MR. KAZI MOHAMMAD SANA ULLAH 141 MR. MOHAMMAD ROKNUZZAMAN
99 MR. ISPAHANI ISLAM 142 MR. MUHAMMAD ABDULLAH AL MOMEN
100 MR. ALAK KUMAR BAL 143 MS. MUNMUN MONDAL
101 MR. Z.A.M. IMAMUL HUDA 144 MR. I.A.M. KHALIL ULLAH
102 MR. MD. SAIFUR RAHMAN 145 MR. SANJIT KUMAR BANIK
103 MR. MD. ISMAIL MAZUMDER 146 MR. SONTOSH CHANDRA DEBNATH
104 MR. MD. ANISUZZAMAN 147 MR. ABUL KALAM AZAD
105 MS. LIPIKA DAS 148 MR. MOHAMMAD SAIFUR RAHMAN
106 MR. MD. SHARIF MIZANUR RAHMAN 149 MR. PRASHANTA KUMAR PAUL
107 MR. BISHWAJIT ACHARYA 150 MR. MOHAMMAD ASLAM HOSSAIN
108 MR. MD. SHAH ALAM 151 MR. MD. SHAMIM AZAD
109 MR. MD. AHSANUL KABIR 152 MR. SUKUMAR ROY
110 MR. MD. KAMRUZZAMAN 153 MR. SK. AL MAMUN
111 MR. GHAZI AL-BERUNI 154 MR. MOHAMMAD ABU BAKER SIDDIQUE
112 MR. SYED NAZIRUL ISLAM 155 MR. MOHAMMAD ASAD
113 MR. MD. MUBARAK HOSSAIN 156 MR. DILIP KUMAR PAUL
114 MR. PANKAJ KUMAR GOLDER 157 MR. MOHAMMAD ANAMUL HOQUE
115 MR. SHAYAMAL KUMAR MONDAL 158 MR. K.M.NAJMUL AHSAN
116 MR. MD. FARUQUE 159 MR. MOHAMMED ABDUL MATIN
117 MR. DEBASISH SAMADDER 160 MR. A.T.M. MAHABUBUL ALAM
118 MR. SAMIRAN CHANDRA KARMAKER 161 MR. MONOTOSH SARKAR
119 MR. MD. SHAHDAT HOSSAIN LINTU 162 MR. MD. WAHEDUN NABI
120 MR. SATYA RANJAN SAHA 163 MR. MD. MAMUNUR RASHID HELALY
121 MR. MD. SHAH ALAM 164 MR. MOHAMMAD KAMRUL HASSAN
122 MS. JESMIN SULTANA 165 MR. SANJOY KUMAR ROY
123 MR. MD. ZAHIRUL ISLAM 166 MR. MD. ARIFUL KABIR
124 MR. HIMANGSHU ACHARYA 167 MS. JANNATUL FERDAUS
125 MR. SHAH MD. SHAMEEM KADIR

ANNUAL REPORT 2023 47

SONALI BANK PLC

MESSAGE FROM
THE CHAIRMAN

I would like to express my sincere gratitude to

the Government of Bangladesh specially the
Financial Institutions Division of Ministry of Finance,
Bangladesh Bank, Bangladesh Securities and
Exchange Commission, Office of the Registrar
of Joint Stock Companies and Firms, the Stock
Exchange for their continued support and guidance.

Ziaul Hasan Siddiqui

Chairman
48 ANNUAL REPORT 2023
wemwgjøvwni ivn&gvwbi ivwng Bismillahir Rahmanir Rahim
m¤§vwbZ †kqvi‡nvìvie„›` Distinguished Shareholders

Avm&mvjvgy AvjvBKzg| Assalamu Alaikum.

†mvbvjx e¨vsK wcGjwm (mv‡eK †mvbvjx e¨vsK wjwg‡UW) It is indeed a great pleasure and privilege for me to
Gi mß`k evwl©K mvaviY mfvq Avcbv‡`i ¯^vMZ Rvbv‡bvi welcome you all to the 17th Annual General Meeting
of Sonali Bank PLC (former Sonali Bank Limited).
my‡hvM †c‡q cwiPvjbv cl©‡`i †Pqvig¨vb wn‡m‡e Avwg AZ¨šÍ On behalf of the Board of Directors and on my own
Avbw›`Z| †mvbvjx e¨vsK Gi cwiPvjbv cl©` Ges Avgvi behalf, I would like to express my cordial greetings and
wb‡Ri c¶ †_‡K Avcbv‡`i mKj‡K RvbvB mv`i m¤¢vlb I extend warm felicitations to you all. It is your continued
ï‡f”Qv| Avcbv‡`i Ae¨vnZ mg_©b I mn‡hvwMZvi Kvi‡Y support and active co-operation that enabled us to
attain sustained success by overcoming all challenges.
e¨vsK mKj P¨v‡jÄ †gvKv‡ejv K‡i mdjZvi aviv eRvq I feel proud to present before you the Annual Report
ivL‡Z mÿg n‡q‡Q| †mvbvjx e¨vsK Gi 2023 mv‡ji of the Bank for the year 2023 along with the Audited
Avw_©K weeiYxmn evwl©K cÖwZ‡e`b Avcbv‡`i ch©v‡jvPbv, Financial Statements for your review, comments and
gZvgZ I Aby‡gv`‡bi Rb¨ Dc¯’vcb Ki‡Z †c‡i Avwg approval.

‡MŠie Abyfe KiwQ|

GB ïfÿ‡Y Mfxi kÖ×vi mv‡_ ¯§iY KiwQ RvwZi wcZv At this gracious moment, I remember with great respect
the Father of the Nation Bangabandhu Sheikh Mujibur
e½eÜz †kL gywReyi ingvb, ¯^vaxbZv hy‡× wbnZ 30 j‡ÿi
Rahman, more than three million martyrs, heroine, heroic
AwaK exi knx`, exiv½bv, exi †mbvbx- hv‡`i i³, Z¨vM I freedom fighters whose blood, supreme sacrifice and
mvnwmKZvi wewbg‡q wek¦ `iev‡i ¯^vaxb evsjv‡`‡ki Af~¨`q valor helped us to achieve the glorious independence
N‡U‡Q| of Bangladesh.

wek¦ A_©bxwZ †KvwfW-19 AwZgvix Ges ivwkqv-BD‡µb The global economy remains surprisingly resilient
hy‡×i d‡j wek^e¨vcx m„ó R¦vjvbx I Lv`¨ msKU, g~j¨ùxwZi through the global disinflation of 2022–23 that was started
with supply-chain disruptions due to the COVID -19 pandemic,
Pig DaŸ©MwZi d‡j mvivwe‡k^ avivevwnKfv‡e K‡Vvi a Russian-initiated war on Ukraine that triggered a global
ms‡KvPbg~jK Avw_©K bxwZ MÖnY Kiv nq| GiB cÖfv‡e energy and food crisis, and a considerable surge in
gy`ªvùxwZRwbZ g~j¨ùxwZ 2022-23 Gi †klv‡a© wb‡P †b‡g inflation, followed by a globally synchronized monetary
policy tightening. Central bank policies in many countries
G‡jI G mg‡q wek^ A_©bxwZ Avðh©RbKfv‡e w¯’ive¯’vq
around the world, including the US Federal Reserve (Fed),
wQ‡jv| g~j¨ùxwZ wbqš¿‡Y hy³iv‡óªi †dWv‡ij wiRvf©mn have increased interest rates several times to control
we‡k^i wewfbœ †`‡ki †K›`ªxq e¨vsKmg~n wewfbœ mg‡q my`nvi inflation. As a result, the negative impact on the current
e„w× K‡i‡Q| d‡j Avg`vwbwbf©i †`kmg~‡ni PjwZ wnmv‡ei account balance of various import-dependent countries
continues to increase. Global inflation is estimated at 8.8
fvimv‡g¨ FYvZ¡K cÖfve cwijwÿZ n‡jI g~j¨ùxwZi nvi
percent in 2022 (annual average), 6.6 percent in 2023
2022 mv‡ji 8.8% n‡Z 2023 mv‡j 6.6% Ges 2024 and will be 4.5 percent in 2024.
mv‡j 4.5% G †b‡g Avm‡e e‡j aviYv Kiv n‡”Q|

wek¦e¨vcx A_©‰bwZK †`v`yj¨gvbZvi g‡a¨I mviv †`ke¨vcx In the midst of worldwide economic turmoil, Sonali
Bank, the largest state-owned commercial bank with a
Qwo‡q _vKv mywekvj †bUIqv‡K©i AwaKvix †`‡ki me©e„nr
large branch network throughout the country, is serving
ivóª gvwjKvbvaxb evwYwR¨K e¨vsK, †mvbvjx e¨vsK RvwZ‡K the nation by participating into government entrusted
†mev cÖ`v‡bi A½xKvi c~i‡Y miKvi KZ©„K b¨¯Í wewfbœ activities for the better protection of the society. The
ai‡bi mvgvwRK myi¶vg~jK Kg©Kv‡Û AskMÖnY K‡i bank remains committed to provide banking services
to the people from all walks of life by ensuring best
Avm‡Q| Gi cÖavb j¶¨ MÖvnK I †kqvi †nvìvi‡`i m‡e©v”P
satisfaction of its customers as well as shareholders.
mš‘wói wbðqZv weav‡bi cvkvcvwk mgv‡Ri me©¯Í‡ii It provides 37 services for free and 14 services at
gvby‡li Kv‡Q e¨vswKs †mev †cŠu‡Q †`qv| G j‡ÿ¨ e„nËi nominal charge for the greater interest of the people
Rb¯^v‡_© miKv‡ii AwfcÖvq Abyhvqx MÖvnK‡`i‡K 37wU †mev in line with government aspiration. Besides, various
socio-economically profitable programs have been
webvg~‡j¨, 14wU ‡mev bvggvÎ g~‡j¨ w`‡q _v‡K| GQvov
undertaken although some of them may not be viable
evwYwR¨Kfv‡e AbyK~j bv n‡jI Av_©-mvgvwRK Dbœq‡b commercially.
cvi½g- GiKg †ekwKQy †cÖvMÖvg nv‡Z †bqv n‡q‡Q|

ANNUAL REPORT 2023 49

SONALI BANK PLC

gvbbxq cÖavbgš¿x KZ©K „ †NvwlZ ¯§vU© evsjv‡`k wewbg©vYmn Hon’ble Prime Minister launched the Universal Pension
Scheme on 17th August 2023 in order to bring all the
‡`‡ki mKj bvMwiK‡K mvgvwRK myiÿvi AvIZvq wb‡q citizens of the country under social security, along with
Avmvi j‡ÿ¨ MZ 17 AvM÷ 2023 Zvwi‡L gvbbxq cÖavbgš¿x the construction of ‘Smart Bangladesh’ announced
mve©Rbxb †cbkb ¯‹xg Pvjy K‡ib| †mvbvjx e¨vs‡Ki wbR¯^ by the Hon’ble Prime Minister. Through Sonali Bank’s
mdUIq¨vi Õ†mvbvjx †c‡g›U †MUI‡qÕ Gi gva¨‡g †`‡ki own software ‘Sonali Payment Gateway’, citizens from
home and abroad can pay the monthly subscription/
bvMwiKMY †`k I we‡`k n‡Z mve©Rbxb †cbkb ¯‹x‡gi gvwmK fee of Universal Pension Scheme online. To make a
Puv`v/wd cwi‡kva Ki‡Z cvi‡Qb| AvaywbK cÖhwy ³wbf©i I technology based and cashless “Smart Bangladesh”
K¨vk‡jm †mvmvBwU MVbmn 2041 mv‡j Smart Bangladesh within 2041, Sonali Bank has implemented numbers
wewbgv©‡Y †mvbvjx e¨vsK ÔwKD Avi †KvW †eBRW K¨vk AvDUÕ of technology based services like ’’QR Code Based
Cash Out’’, ’’Sonali e-Sheba’’ and ’’Sonali e-Wallet’’
myweav Ô†mvbvjx B-†mevÕ I Ô†mvbvjx B-Iqv‡jUÕ Gi g‡Zv etc. Clients can make any kind of payment through
†ekwKQz †mev ev¯Íevqb K‡i‡Q| Ô†mvbvjx B-†mevÕ Gi gva¨‡g ’’QR Code Based Cash Out” facility and they are able
MÖvnKiv Lye mn‡RB N‡i e‡mB GKvD›U Lyj‡Z cv‡i| GiB to open accounts even from their home through
avivevwnKZvq cieZ©x‡Z Ô†mvbvjx B-Iqv‡jUÕ Pvjy Kiv nq hvi ’’Sonali e-Sheba’’. Subsequently, the bank introduced
’’Sonali e-Wallet’’. This wallet helps the clients to
gva¨‡g MÖvnKiv †h †Kv‡bv mgq †h †Kv‡bv wnmv‡e †jb‡`bmn make transactions to any accounts, pay the bills and
wewfbœ wej, cixÿvi wd, U¨v·mn mKj †jb‡`b m¤úbœ Ki‡Z taxes etc. Moreover, the bank is operating “Blaze”
cv‡i| GQvov cÖevmx‡`i myweav‡_© gvÎ 5 †m‡K‡Û †iwgU¨vÝ for the expatriates to receive their remittance in just
Avni‡Yi Rb¨ ÔBlazeÕ, wd«j¨vÝvi‡`i ‡c‡g›U Avni‡Yi Rb¨ 5 seconds, “Skrill” for the freelancers to receive their
payments, “Sonali Payment Gateway” for schools,
ÔSkrillÕ, ¯‹jz K‡jRmn wewfbœ cÖwZôv‡bi MÖvnKM‡Yi †eZb, wd, colleges and for the clients of different organizations,
PvR© cwi‡kv‡ai Rb¨ †mvbvjx †c‡g›U †MUI‡q, m¦qswµq Pvjvb “Automated Challan System” to deposit payments in
c×wZ (A‡Uv‡g‡UW Pvjvb wm‡÷g)-mn wewfbœ cÖhwy ³ cwiPvjbv government accounts etc.
Ki‡Q|

b‡fj K‡ivbv fvBivm Gi cÖv`yfv© ‡ei Kvi‡Y evsjv‡`‡k To face the adverse effect in the economy of Bangladesh
due to novel Corona Virus, the Prime Minister of the
m¤¢ve¨ A_©‰bwZK cÖfve †gvKv‡ejvq KzwUi, gvB‡µv I gvSvwi government of the Peoples’ Republic of Bangladesh
wkí D‡`¨v³v‡`i mÿgZv Aÿzbœ ivLvi j‡ÿ¨ MYcÖRvZš¿x declared a 200 (Two Hundred) million incentive package
evsjv‡`k miKvi Gi gvbbxq cÖavbgš¿x KZ©K „ 5 GwcÖj 2020 for retaining the capability of cottage, micro, small and
Zvwi‡L wmGgGmGgB Gi AvIZvq 20(wek) nvRvi †KvwU medium enterprises entrepreneurs (CMSME). Of that,
Sonali Bank successfully disbursed Tk. 4,200.00 million
UvKvi Avw_©K mnvqZv c¨v‡KR †NvlYv Kiv nq| D³ cÖ‡Yv`bv and 5,400.00 million against stipulated Tk. 4,121.70
c¨v‡K‡Ri AvIZvq †mvbvjx e¨vsK 1g ch©v‡q wbav©wiZ ev‡RU million and 5,000.00 million in the 1st phase (2020-21)
412.17 †KvwU UvKvi wecix‡Z 420.00 †KvwU UvKv, 2q and 2nd phase (2021-22) respectively. Loan disbursement
ch©v‡q wbav©wiZ ev‡RU 500.00 †KvwU UvKvi wecix‡Z of 3rd phase (2022-23) of Tk. 5200.00 million has been
successfully completed. To attract young and innovative
540.00 †KvwU UvKv FY cÖ`vb K‡i| 1 RyjvB 2022 n‡Z entrepreneurs in order to produce new products as
30 Ryb 2023 †gqv‡` 3q ch©v‡q 520.00 †KvwU UvKv well as its processing, services and increase innovative
FY weZiY Kiv nq| evsjv‡`k e¨vs‡Ki bxwZgvjv Abyhvqx institutions, Sonali Bank PLC has already enacted its
†`‡ki wkwÿZ Ziæb I D™¢vebx D‡`¨v³v‡`i gva¨‡g bZzb own start-up fund at an interest rate of 4% as per the
instructions and guidelines of Bangladesh Bank. The
cY¨, †mev I cY¨ cÖwµqvKiY cÖwZôvb m„wói j‡ÿ¨ ÔÔ÷vU© Bank has already reserved Tk. 104.40 million for start-up
Avc dvÛÓ bxwZgvjv cÖbqY K‡i wbU gybvdv n‡Z 10.44 fund from the net profit of the bank and Tk. 18.30 million
†KvwU UvKv msiÿY Kiv n‡q‡Q Ges 1.83 †KvwU UvKvi FY has already been disbursed in this scheme. Besides, our
weZiY Pjgvb i‡q‡Q| cvkvcvwk MÖvgxY Rbc‡` Drcv`bgyLx main thrust, therefore, is rural development through
employment generation and productive activities in
Kg©KvÛ Ges Kg©ms¯’vb m„wó Avgv‡`i cÖavb j¶¨| G j‡ÿ¨ rural Bangladesh. In Agricultural/Rural credit, sufficient
K…wl/cjøx FY Lv‡Z e¨vsK KZ©K
„ ch©vß FY weZiY Kiv n‡q‡Q amount has been disbursed and total outstanding stood
Ges G Lv‡Z eZ©gv‡b w¯’wZi cwigvY 6,751.49 †KvwU UvKv| at Tk. 67,514.89 million. Moreover, Sonali Bank has
GQvov e¨vsK thrust †m±i e‡j we‡ewPZ ¯§j GÛ wgwWqvg redesigned the operational strategy by prioritizing credit
allocation to micro, small and medium size productive
G›UvicÖvBR Ges me©vwaK g~j¨ ms‡hvRbKvix Drcv`bkxj enterprises (CMSME) which have been considered as the
wmGgGmGgB Lv‡Z FY e›Ub c×wZ cyYwe©b¨vm K‡i A_©vqb thrust and most valued sector in the economy. Till 2023,
Ki‡Q| D³ Lv‡Z e¨vs‡Ki FYw¯’wZi cwigvY 14,937.86 total outstanding in CMSME stood at Tk. 149,378.60
†KvwU UvKv| GB me AMÖvwaKvicÖvß LvZmg~n RvZxq Av‡q million. These priority sectors are playing special role in
contributing to our national income as well as upgrading
Ae`vb ivLvi cvkvcvwk `vwi`ªmxgvi bx‡Pi RbM‡Yi Rxebgvb the quality of life of our people living under poverty level.
Dbœq‡Y we‡kl f~wgKv ivL‡Q|

50 ANNUAL REPORT 2023

†mvbvjx e¨vsK me mgq e¨vswKs Kvh©µg cwiPvjbvq bZzb cÖhwy ³ Sonali Bank keeps itself abreast with the real time
MÖn‡Yi j‡¶¨ AvaywbK a¨vb aviYv I me©‡kl Z‡_¨i mv‡_ Zvj information, updating ideas and approaches in the areas
of innovation and adopting new technology. In the face of
wgwj‡q Pj‡Z m‡Pó| µgea©gvb cÖwZ‡hvwMZvg~jK evRv‡i Z_¨ increasing competition, IT efficiency promotes operational
cÖhwy ³i e¨envi I we¯Íw… Z Ges IT cø¨vUdg©‡K kw³kvjxKiY ease and sets a standard for quality, internal productivity
e¨vs‡Ki Kg©m¤úv`b cÖwµqv‡K mnRZi Ki‡e Ges mgv‡Ri and improved enhanced customer service. To provide
wewfbœ †kªwYi MÖvn‡Ki Pvwn`v I cÖZ¨vkv c~iY Ki‡e| DwjøwLZ uninterrupted, reliable, faster and better one stop service
at the doorsteps of customer at an affordable cost, all
welq¸‡jv we‡ePbv K‡i Ges wbiwew”Qbœ, wbf©i‡hvM¨, `ªæZ I of its 1230 domestic branches have been run by newly
¯^í e¨‡q RbM‡Yi †`vi‡Mvovq e¨vswKs Kvh©µg †cŠu‡Q †`qvi implemented Core Banking Solution (CBS) system.
j‡¶¨ e¨vs‡Ki ¯’vbxq 1230wU kvLvi meKwUB Core Banking
Solution (CBS) Øviv cwiPvwjZ n‡”Q|

G eQi †mvbvjx e¨vsK 3,846.19 †KvwU UvKv cwiPvjb During the year, Sonali Bank earned operating profit
gybvdv Ges MZ eQ‡ii 371.04 †KvwU UvKv AwZµg K‡i amounting to Tk. 38,461.88 million and also achieved
a higher net profit amounting to Tk. 6,514.80 million
651.48 †KvwU UvKv wbU gybvdv AR©b K‡i‡Q hv †`‡ki than Tk. 3,710.24 million of the previous year, both
e¨vswKs †m±‡ii g‡a¨ m‡e©v”P| 2023 mv‡j AvgvbZ are the highest in the banking sector of Bangladesh.
msMÖn, FY/AwMÖg, †kÖwYK…Z FY Av`vq, cwiPvjb e¨q Operational efficiency, optimum utilization of fund, and
wbqš¿Y BZ¨vw`‡Z cwiPvjb `¶Zv e„w×, Znwe‡ji m‡e©vËg high productivity regarding deposit collection, loans and
advances, recovery from classified loan, controlling of
e¨envi I Drcv`bkxjZvi D”Pgvb GB gybvdv AR©b‡K m¤¢e operating expense contributed to this surge of profit
K‡i‡Q| ZvQvov ‡gvU Av‡qi g‡a¨ wewfbœ service oriented during 2023. Moreover, share on income from various
AvqI h‡_ó cwigv‡Y e„w× †c‡q‡Q hv Avgv‡`i e¨emvwqK service oriented activities under total income is rising
cÖe„w×i Rb¨ Avkxe©v`¯^iƒc| undoubtedly which is an omen to our business growth.

Avw_©K AšÍfz©w³ eZ©gvb miKv‡ii Ab¨Zg Dbœqbg~jK Financial inclusion is high on the development agenda
G‡RÛv; `vwi`ª¨ `~ixKi‡Y Ges †`‡ki mvaviY RbM‡Yi of the government. Sonali Bank has been working
relentlessly to expand financial activities in line with this
RxebhvÎvi gvb Dbœq‡b miKv‡ii M„nxZ c`‡¶cmg~n h_vh_ agenda to support the government’s initiatives designed
fv‡e ev¯Íevq‡b †mvbvjx e¨vsK eive‡ii g‡ZvB mn‡hvwMZv to alleviate poverty and improve the living standard of
K‡i hv‡”Q| MÖvg Dbœqb `vwi`ª¨ `~ixKi‡Y we‡kl f~wgKv the common people. Rural development plays a vital
cvjb Ki‡Z cv‡i| G ev¯ÍeZv‡K mvg‡b †i‡L †mvbvjx e¨vsK role in eradicating poverty. The Bank has already opened
10/50/100 Taka accounts for the poor people and
MÖv‡gi `wi`ª gvby‡li Rb¨ 10/50/100 UvKvi wnmve Pvjy total number of such accounts reached approximately
K‡i‡Q Ges Avw_©K AšÍfy©w³i AvIZvq K…lK wnmve, mvgvwRK 6.82 million namely farmer’s account, Social Safety
wbivcËv †eóbx, gyw³‡hv×v, ¶z`ª Rxeb exgv, †cvlvK wkí Net Program, Freedom fighters, Small Life Insurance
kªwgK Ges Ab¨vb¨ †kÖwY/‡ckv wfwËK wnmv‡e cÖvq 68.20 program, RMG Sector and other A/Cs under financial
inclusion program.
j¶ wnmve †Lvjv n‡q‡Q|

†h †Kv‡bv cÖwZôv‡bi e¨emv cwiPvjbv Ges `xN© I ¯’vqx Good Corporate Governance system is vital for efficient
and effective business operation, long term stability
†UKmB cÖe„w×i Rb¨ Good Corporate Governance and sustainable growth for any organization. The
Acwinvh©| †mvbvjx e¨vs‡Ki we`¨gvb Corporate Governance system of Sonali Bank is characterized by
Governance system-G e¨e¯’vcbvi mKj ch©v‡q `vwqZ¡ I its design to ensure transparency and accountability at
KZ©‡e¨i ¯^”QZv I Revew`wnZv wbwðZ Kiv n‡q‡Q| G j‡ÿ¨ all level of management. Three committees- Executive
Committee, Audit Committee and Risk Management
cwiPvjbv cl©‡`i wZbwU KwgwU- wbe©vnx KwgwU, AwWU KwgwU Committee of the Board of Directors have been working
Ges SuywK e¨e¯’vcbv KwgwU Kvh©Ki I `ÿZvi mv‡_ `vwqZ¡ to assist the Board in discharging its responsibilities
cvj‡b cwiPvjbv cl©`‡K mn‡hvwMZv K‡i Avm‡Q| gš¿Yvjq efficiently and effectively. In accordance with “Annual
Gi mv‡_ ¯^vÿwiZ ÔAnnual Performance AgreementÕ Performance Agreement” signed with the Ministry,
the Bank has recently undertaken a similar agreement
Gi avivevwnKZvq m¤cÖwZ e¨vsK Zvi wbe©vnx‡`i Kvh©µ‡gi through which accountability of the executives may be
Revew`wnZv Avbq‡bi j‡¶¨ Abyiƒc Pzw³cÎ cÖYqb K‡i‡Q| measured. Performance of the executives is judged by
bZzb G Z_¨ cwigvc‡Ki gva¨‡g wbe©vnx‡`i Kvh©µg g~j¨vqb these newly designed information scale.
Kiv n‡”Q|

ANNUAL REPORT 2023 51

SONALI BANK PLC

m¤úªwZ †mvbvjx e¨vsK evsjv‡`‡ki e¨vswKs †m±‡i me©c_Ö g Recently Sonali Bank has introduced “Whistle Blower
Policy” for the first time in the banking history of
ÔûB‡mj †eøvqvi cwjwmÕ cÖeZ©b K‡i| e¨vs‡Ki mKj Kg©KvÛ Bangladesh. Certainly it is very important and bold
`ybx© wZgy³ ivLv Ges ï×vPvi cÖwZôvq G cwjwm AZ¨šÍ ¸iæZ¡cY~ ,© decision in implementing the National Integrity and
mg‡qvc‡hvMx Ges mvnmx GKwU c`‡ÿc| Avgiv Rvwb, †h the banking activities uncorrupted. We are aware
†Kv‡bv ai‡bi Awbqg cÖwZ‡iv‡a m‡e©v”P mZK©Zv, `vwqZ¡kxjZv that strong vigilance is a must to guard against
leakage and to achieve highest excellence through
I Revew`wnZvg~jK e¨e¯’vcbv Ges m‡e©v”P gvÎvi DrKl©Zv responsibility and accountability. In order to ensure
AR©‡bi j‡¶¨ Af¨šÍixY wbqš¿Y I cwicvjb e¨e¯’v kw³kvjx responsible and accountable management system
Kivi †Kv‡bv weKí †bB| `vwqZ¡kxjZv, h_vh_ Revew`wnZv and highest degree of excellence, steps have been
I m‡e©v”P mš‘wó wbwðZ Kivi j‡¶¨ Internal Control and taken to restructure and modernize the Internal
Control and Compliance Mechanism to safeguard
Compliance Mechanism-†K cybM©Vb I AvaywbKvq‡bi
the safety and soundness of the bank, its employees,
c`‡¶c †bqv n‡q‡Q hv e¨vsK, Zvi Kgx©, AvgvbZKvix I depositors and Shareholders.
†kqvi‡nvìvi‡`i ¯^”QZv I wbivcËv wbwðZ Ki‡e|

†UKmB Dbœq‡bi Rb¨ `¶ I †hvM¨ gvbem¤ú` AZ¨šÍ Qualified and competent human resource is decisive
for sustainable growth. Success of the Bank may be
¸iæZ¡c~Y©| KviY e¨vs‡Ki mdjZv Zvi Kg©xevwnbxi `¶Zv, achieved by improving skills, knowledge and productivity
Ávb I Drcv`bkxjZvi Dci wbf©i K‡i| gvbe m¤ú` of the employees. Keeping this in view, the Bank invests
Dbœq‡b Z_v Kgx©‡`i m¶gZv e„wׇZ e¨vs‡Ki wewb‡qvM remarkably in human resources development for
D‡jøL‡hvM¨ cwigv‡Y e„w× Kiv n‡q‡Q| g‡bvej, m„RbkxjZv capacity building. The goal is to empower staff and create
a culture that encourages and rewards commitment,
I `jMZ cÖ‡Póvi gva¨‡g wbqZ cwieZ©bkxj MÖvn‡Ki cÖZ¨vkv creativity and team work in order to respond rapidly to
c~i‡Y e¨vsK Kg©KZ©v I Kg©Pvix‡`i m¶gZv evov‡bvB Gi the ever changing customer needs and market. SBPLC
cÖavb j¶¨| ZvQvov †mvbvjx e¨vsK Zvi Kgx© evwnbxi Rb¨ is offering its employees’ safe, healthy and congenial
wbivc` I my¯’ Kg©cwi‡ek wbwðZ K‡i‡Q| working environment. Moreover, it endeavors its best to
ensure that the employees engagement is maximized.

e¨emvq `xN©‡gqv`x I ‡UKmB cÖe„w× AR©‡bi Rb¨ mgv‡Ri Sonali Bank always recognizes its wider obligation
to the society and therefore embraces the concept
cÖwZ e„nËi `vqe×Zv we‡ePbvq e¨vsK wbR¯^ CSR Kg©m~wP
of Corporate Social Responsibility (CSR) which is
MÖnY K‡i Avm‡Q| ‡h‡nZz †UKmB I AšÍfy©w³g~jK cÖe„w×i believed to be fundamental to attaining the long term
Rb¨ ivóª, evRvi I mgv‡Ri g‡a¨ fvimvg¨ ivLv cÖ‡qvRb sustainability and business growth. Since a perfect
†m‡nZz e¨vs‡Ki vision and mission Gi mv‡_ m½wZ †i‡L balance among the state, market and society is required
for suitable and inclusive growth, it operates banking
cÖwZôvbwU ‡`‡ki A_©bxwZ, cwi‡ek I mvgvwRK ev¯ÍeZvi activities in economically, environmentally and socially
wbwi‡L Zvi e¨emv cwiPvjbv K‡i Avm‡Q| cÖwZôvi ci †_‡K sustainable manner in line with its vision and mission.
‰`bw›`b e¨emv cwiPvjbvi gva¨‡g e¨vsK Zvi AskxR‡bi Since inception, to add value, the Bank has been caring
¯^v_©I msi¶Y K‡i Avm‡Q| for its stakeholders and the community at large through
our day to day business operation.

Rjevqy cwieZ©b †_‡K D™¢~Z ûgwKi d‡j AskxR‡bi ¯^v_© The Bank is responding strategically to create
sustainable value for the stakeholders since grave
myi¶vq e¨vsK m‡PZbfv‡e evsjv‡`k e¨vs‡Ki wb‡`©kbvi menace posed by climate change. Various steps
Av‡jv‡K MÖxb e¨vswKs Kvh©µg cwiPvjbv Ki‡Q| MÖxb e¨vswKs have been taken to ensure green banking. These
Kg©KvÛ myôyfv‡e cwiPvjbvi wbwgË †ek wKQy c`‡¶c MÖnY include green financing, creating awareness among
Kiv n‡q‡Q| hvi g‡a¨ i‡q‡Q meyR A_©vqb, Kgx©evwnbxi employees for efficient use of water, electricity and
paper, giving preference to preservation of eco-system
g‡a¨ cvwb, we`y¨r I KvMR e¨env‡ii wel‡q m‡PZbZv ˆZwi while financing commercial projects and re-use of
Ges B‡Kv-wm‡÷g msi¶‡Y mn‡hvMx evwYwR¨K LvZmg~n‡K equipments. In order to harness the potentiality of
A_©vq‡bi †¶‡Î AMÖvwaKvi †`qv| MÖxb e¨vswKs Gi m¤¢ve¨Zv the green banking, a separate unit named “Sustainable
I Gi Dc‡hvwMZv cÖvwßi Rb¨ evsjv‡`k e¨vs‡Ki cwjwm Finance Unit” under the Risk Management Division
has been formed in line with the policy directives of
Abyhvqx e¨vs‡Ki wi¯‹ g¨v‡bR‡g›U wWwfk‡bi Aax‡b Bangladesh Bank.
ÔSustainable Finance UnitÕ MVb Kiv n‡q‡Q|

Avwg Avkv Kwi, fwel¨‡Z †`ke¨vcx we¯Í…Z †bUIqvK©, `ÿ Looking toward the future & playing on our own strength,
we have all the key success factors, necessary to scale
Kg©xevwnbx I Avgv‡`i e¨emvwqK mybv‡gi gva¨‡g Avgiv up, aiming at attaining brand of quality among our wider
Avgv‡`i mdjZvi †¶Î¸‡jv Av‡iv cÖmvwiZ Ki‡Z mÿg

52 ANNUAL REPORT 2023

n‡ev| e¨vswKs †m±‡i Avgv‡`i e¨emvwqK mybvg, †`ke¨vcx network to negotiate the course of change. We can do
kvLv Ges D™¢vebx ‡cÖvWv±mg~‡ni Dcw¯’wZi Kvi‡Y Avgv‡`i it well by our well recognized market presence with a
strong product portfolio, well established brand image
c‡¶ mdj nIqv Am¤¢e wKQy bq| and countrywide network.

e¨vsK cwiPvjbvi †¶‡Î Avgvi mnKgx© cwiPvjK‡`i mvwe©K Let me take the opportunity to thank my fellow Directors,
mn‡hvwMZv I mg_©b `v‡bi Rb¨ Avwg Zuv‡`i‡K AvšÍwiKfv‡e who have given me their generous co-operation and
support with great personal commitments. My words
ab¨ev` RvbvB| GQvovI e¨vs‡Ki wPd Gw·wKDwUf Awdmvi of thanks go to the Chief Executive Officer, all of our
I wb‡ew`ZcÖvY Kg©xevwnbxi A½xKvi, AvbyMZ¨ I AvšÍwiK officials, staff members for their commitment, loyalty and
Ae¨vnZ mn‡hvwMZvi Rb¨ RvbvB Awfev`b| sincerity along with continued support and co-operation.

Avwg evsjv‡`k miKv‡ii we‡klZ A_© gš¿Yvj‡qi Avw_©K I would like to express my sincere gratitude to the
Government of Bangladesh specially the Financial
cÖwZôvb wefvM, evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR
Institutions Division of Ministry of Finance, Bangladesh
GÛ G·‡PÄ Kwgkb, Awdm Ae `¨v ‡iwR÷ªvi Ae R‡q›U Bank, Bangladesh Securities and Exchange Commission,
÷K †Kv¤úvbxR GÛ dvg©m Ges ÷K G·‡PÄ Gi cÖwZ Office of the Registrar of Joint Stock Companies and
Zv‡`i Ae¨vnZ mg_©b I civgk© `v‡bi Rb¨ AvšÍwiK Firms, the Stock Exchange for their continued support
and guidance. I would also like to express my thanks
K…ZÁZv Ávcb KiwQ| DrK‡l©i wkL‡i †cŠuQvi j‡¶¨
to all of our valued clients, patrons, well-wishers and
Avgv‡`i cÖ‡Póvi cÖwZ hviv mn‡hvwMZv Ae¨vnZ †i‡L‡Qb, shareholders on behalf of the Board. They are our
cwiPvjbv cl©‡`i c¶ †_‡K †m mKj MÖvnK I c„ô‡cvlK source of inspiration and strength.
Ges ïfvbya¨vqx‡`i cÖwZ Avwg AvšÍwiK K…ZÁZv Rvbvw”Q|
ZvivB Avgv‡`i Aby‡cÖiYv I kw³i Drm|

gnvb Avjøvn& Avgv‡`i mnvq †nvb Ges Zuvi ingZ Avgv‡`i May almighty Allah help us all and shower eternal
blessings upon all of us.
mK‡ji Dci ewl©Z †nvK|

(wRqvDj nvmvb wmwÏKx) (Ziaul Hasan Siddiqui)

†Pqvig¨vb Chairman
cwiPvjbv cl©` Board of Directors
†mvbvjx e¨vsK wcGjwm Sonali Bank PLC

ANNUAL REPORT 2023 53

SONALI BANK PLC

FROM THE DESK OF

CHIEF EXECUTIVE OFFICER

Under the prudent

leadership of the
Honorable Prime
Minister Sheikh
Hasina, Bangladesh
successfully
managed COVID-19
pandemic and
returned to high
growth trajectory.

Md. Afzal Karim

Chief Executive Officer

54 ANNUAL REPORT 2023

wemwgjøvwni ivn&gvwbi ivwng Bismillahir Rahmanir Rahim

m¤§vwbZ †kqvi‡nvìvie„›` Distinguished Shareholders

Avm&mvjvgy AvjvBKzg| Assalamu Alaikum.

Avwg AZ¨šÍ Avbw›`Z, †MŠievwš^Z I m¤§vwbZ †eva KiwQ It’s a great pleasure, privilege and honor for me to
†h, †`‡ki me©e„nr ivóªvqZ¡ evwYwR¨K e¨vsK †mvbvjx e¨vsK have the opportunity to present my observation on
wcGjwm Gi 2023 mv‡ji e¨emvwqK AR©‡bi Dci Avgvi the performance of Sonali Bank PLC, the largest state-
ch©‡e¶Y Avcbv‡`i wbKU Zz‡j aivi my‡hvM †c‡qwQ| GRb¨ owned commercial bank of Bangladesh, for the year
2023. I would like to express my heartfelt thanks and
Avwg m¤§vwbZ MÖvnK, mn‡hvMx I ïfvbya¨vqxMY‡K Zuv‡`i
gratitude to the valued customers, partners and well-
Ae¨vnZ mg_©b I mn‡hvwMZv cÖ`v‡bi gva¨‡g Avgv‡`i wishers for their continuous support, co-operation and
cv‡k _vKvi Rb¨ AvšÍwiK ab¨ev` RvbvB| strong association with us.

2023 mv‡j e¨vs‡Ki AR©b Zz‡j aivi Av‡M Avwg eZ©gvb Before reflecting on the Bank’s Business performance
‰ewk^K I evsjv‡`‡ki A_©bxwZi wewfbœ w`K Av‡jvKcvZ for the year 2023, it would be relevant to present an
Ki‡Z PvB| overview of global as well as Bangladesh economy.

2022 mv‡j BD‡µb-ivwkqv hy‡×i cÖfv‡e wek¦ A_©bxwZ‡Z World economy remains remarkably resilient in 2023
AwbðqZv †`Lv w`‡jI 2023 mv‡j wek^ A_©bxwZ †gvUvgywU though it faced a major shock due to the Ukraine-
w¯’wZkxj Ae¯’vq wQ‡jv| hy‡×i cÖfv‡e wek^e¨vcx mieivn Russia war in 2022. As a result of this war, the world has
†PB‡b wech©q NUvq R¡vjvbx †Zj I `ªe¨g~j¨ e¨vcK fv‡e experienced severe supply chain disruption and price of
oil and global commodities has started to rise fiercely. In
e„w× cvq| d‡j g~j¨ùxwZ e„w× cvq hw`I wewfbœ †`‡ki
this situation, monetary policy tightening by Central banks’
†K›`ªxq e¨vs‡Ki K‡Vvi Avw_©K bxwZi d‡j g~`ªvùxwZi of different countries has become effective in dragging
jvMvg wKQzUv †U‡b aiv m¤¢e nq| AvšÍR©vwZK g~`ªv Znwej, down the inflation. According to the International
Iqvì© B‡Kv‡bvwgK AvDUjyK GwcÖj 2024 Gi c~e©vfvm Monetary Fund (IMF) World Economic Outlook (WEO)
Abyhvqx 2023 mv‡j wek¦ A_©bxwZ‡Z 3.20 kZvsk cÖe„w× April 2024, global growth, estimated at 3.20 percent in
AwR©Z nq, hv 2024 I 2025 mv‡jI GKB iKg _vK‡Z 2023, is projected to continue at the same pace in 2024
cv‡i| DbœZ †`k¸‡jv‡Z 2023 mv‡j 1.60 kZvsk cÖe„w× and 2025. For advanced economies, growth is projected
AwR©Z n‡jI cieZ©x `yB eQi †mwU wKQzUv e„w× †c‡Z cv‡i| to rise from 1.60 percent in 2023 to 1.70 percent in 2024
D`xqgvb I Dbœqbkxj A_©bxwZi †`k¸‡jvi cÖe„w× 4.5% and 1.80 percent in 2025. The growth in emerging market
cÖ‡ÿcb Kiv n‡q‡Q| Aciw`‡K AvšÍR©vwZK evRv‡i †Z‡ji and developing economies was 4.50 percent in 2023.
Growth in the Middle East and Central Asia is projected
g~j¨ e„w×i Kvi‡Y ga¨cÖvP¨ Ges ga¨ Gwkqvi †`kMy‡jvi
to rise from an estimated 2.00 percent in 2023 to 2.80
cÖe„w× 2023 mv‡ji 2.0% n‡Z 2024 mv‡j 2.8% G percent in 2024 owing to high oil prices.
DbœxZ n‡Z cv‡i|
evsjv‡`‡ki A_©bxwZ MZ GK `k‡KiI †ekx mgq a‡i The Bangladesh economy enable to maintain stable
w¯’wZkxj cÖe„w×i nvi a‡i ivL‡jI 2020 mv‡j ˆewk¦K economic growth over the last decade though the growth
gnvgvwii Kvi‡Y wKQzUv n«vm cvq| G mg‡q 2020-21 was a bit down due to the COVID-19 in 2020. The growth
was 6.94% in 2020-21. Under the prudent leadership and
A_©eQ‡i wRwWwc cÖe„w× `uvovq 6.94 kZvsk| G‡ÿ‡Î
guidance of the Honorable Prime Minister Sheikh Hasina,
gvbbxq cÖavbgš¿x †kL nvwmbvi wePÿY †bZ…Z¡ I wb‡`©kbvq Bangladesh successfully managed COVID-19 pandemic
†KvwfW 19 Gi cÖfve mdjfv‡e †gvKv‡ejv K‡i evsjv‡`‡ki and returned to high growth trajectory. According to the
A_©bxwZ D”P cÖe„w×i avivq wd‡i Av‡m| evsjv‡`k data of BBS, the GDP growth has upright 6.03 percent
cwimsL¨vb ey¨‡iv (weweGm) Gi Z_¨ Abyhvqx, 2022- in FY 2022-23. In the meantime, Bangladesh has been
23 A_©eQ‡i evsjv‡`‡ki cÖe„w× 6.03% AwR©Z n‡q‡Q| successfully transitioned to the status of a lower middle-
B‡Zvg‡a¨ evsjv‡`k wb¤œ Av‡qi †`k n‡Z wb¤œ ga¨g Av‡qi income country (LMIC) from low-income country (LIC).
†`‡k DbœxZ n‡q‡Q| Z‡e Wjv‡ii g~j¨e„w×i Kvi‡Y 2022- But due to price appreciation of USD, Per capita GDP
23 A_©eQ‡i gv_vwcQz wRwWwc c~e©eZ©x A_©eQ‡ii 2,687 stands at USD 2,657 in FY 2022-23 decreasing from USD
gvtWjvi n‡Z wKQzUv n«vm †c‡q 2,657 gvtWjv‡i Ges 2,687 of fiscal year 2021-22, while the per capita national
income reached at USD 2,765 which was USD 2,793 in
gv_vwcQz RvZxq Avq 2021-22 Gi 2,793 gvtWjvi n‡Z
the previous fiscal year.
2022-23 G 2,765 gvtWjv‡i †b‡g G‡m‡Q|

G mg‡q ivwkqv-BD‡µb hy‡×i Kvi‡Y g~`ªvevRv‡i m„ó Due to instability in the money market and disruption of
Aw¯’wZkxjZv I mieivn †PB‡b wech©q NUvq wek¦evRv‡i supply chain resulting from the Russia-Ukraine war, there

ANNUAL REPORT 2023 55

SONALI BANK PLC

`ªe¨g~‡j¨i DaŸ©MwZ cwijwÿZ nq| g~j¨ùxwZi Pvc cÖkg‡bi is a sharp jump in commodity prices. The government
j‡ÿ¨ miKvi¯^íg~‡j¨ Lv`¨cY¨ mieivnmn wewfbœ D‡`¨vM has taken various necessary steps and also supplied foods
at a cheaper rate to alleviate the pressure of inflation. As
MÖnY K‡i‡Q| miKvi KZ©„K Avw_©K cÖ‡Yv`bv cÖ`vb Kivi
a result of financial incentives alongside policy support
cvkvcvwk bxwZ mnvqZvmn wewfbœ Kvh©µg M„nxZ nIqvq provided by the government, the economy has turned
A_©bxwZ Ny‡i `uvwo‡q‡Q| around sharply.

MYcÖRvZš¿x evsjv‡`k miKv‡ii gvbbxq cÖavbgš¿x †kL Hon’ble Prime Minister Sheikh Hasina has recently
nvwmbv KZ©„K †NvwlZ 2041 mv‡ji g‡a¨ Smart announced four pillars of smart Bangladesh namely a)
Bangladesh wewbgv©‡Y ¯Í¤¢ n‡e PviwU- 1.¯§vU© wmwU‡Rb, Smart Citizen b) Smart Government c) Smart Economy
and d) Smart Society to make a technology based and
2.¯§vU© Mfb©‡g›U, 3.¯§vU© B‡Kvbwg Ges 4.¯§vU© †mvmvBwU|
cashless “Smart Bangladesh” within 2041. Accordingly,
Smart Bangladesh Gi fwel¨Z A_©bxwZ n‡e Sonali Bank has implemented numbers of technology
cÖhyw³wbf©i I K¨vk‡jm| K¨vk‡jm †mvmvBwU MVbmn based digital services to make a cashless society
2041 mv‡j Smart Bangladesh wewbgv©‡Y †mvbvjx associated with “Smart Bangladesh”.
e¨vsK †ekwKQz †mev Pvjy K‡i‡Q| Zb¥‡a¨ D‡jøL‡hvM¨-
K) †mvbvjx B-†mev a) Sonali eSheba
L) †mvbvjx B-Iqv‡jU b) Sonali e-Wallet
c) QR Code Based Cash Out
M) wKD Avi †KvW †eBRW K¨vk AvDU myweav
d) Call Center Implementation
N) Kj †m›Uvi Pvjy e) Universal Pension Scheme
O) mve©Rbxb †cbkb ¯‹xg ev¯Íevqb f) Bangla QR Code Based Merchant Payment
P) evsjv wKD Avi †KvW †eBRW gv‡P©›U †c‡g›U myweav g) Corporate Internet Banking
Q) K‡cv©‡iU B›Uvi‡bU e¨vswKs h) Central Trade Processing Software
R) †m›Uªvj †UªW cÖ‡mwms mdUIq¨vi i) Taka Pay Debit Card
S) UvKv †c †WweU KvW© j) Sonali Exchange Mobile App. etc.
T) †mvbvjx G·‡PÄ †gvevBj G¨vc BZ¨vw`|
evsjv‡`‡ki me©e„nr evwYwR¨K e¨vsK wn‡m‡e †mvbvjx e¨vsK As the largest Commercial Bank in Bangladesh, Sonali
†`‡k Ges we‡`‡k e¨emvwqK Kg©KvÛ cwiPvjbvi gva¨‡g Bank conducts its business by providing banking services
†`‡ki me©¯Í‡ii RbMY‡K mKj ai‡Yi e¨vswKs †mev cÖ`vb to the customers and society at Large and thus maximizes
values for its stakeholders in a fair, transparent and
K‡i P‡j‡Q Ges ¯^”QZv I ˆbwZKZvi mv‡_ b¨vqm½Zfv‡e
ethical way. Profit maximization is not the sole objective
†÷K‡nvìvi‡`i Rb¨ m‡e©v”P Dc‡hvwMZv wbwðZ K‡i of the Bank. Along with profit earning we are committed
Avm‡Q| †Kej gybvdv AR©bB †mvbvjx e¨vs‡Ki GKgvÎ to make positive contribution to the economy and the
j¶¨ bq; gybvdv AR©‡bi cvkvcvwk †UKmB Dbœq‡bi gva¨‡g society as a whole in a sustainable manner. That is why,
†`‡ki Av_©-mvgvwRK Dbœqb wbwðZ K‡i mgv‡R BwZevPK besides earning profit, Sonali Bank is proud to bear the
Ae`vb ivLvI †mvbvjx e¨vs‡Ki Ab¨Zg j¶¨| G Kvi‡YB responsibility of implementing various welfare programs
†mvbvjx e¨vsK memgqB gybvdv Avni‡Yi cvkvcvwk mvwe©K and initiatives of the government, thereby becoming the
†mevi gvb e„w×mn miKvi KZ©„K Awc©Z Ges miKv‡ii inseparable partner of the noble work of the government
AvbyK‚‡j¨ m~wPZ wewea Av_©-mvgvwRK Kg©Kv‡Û f‚wgKv ivL‡Z intended to uplift the socio-economic condition of the
A½xKvive×| G mKj Kg©KvÛ †_‡K AwR©Z `„k¨gvb Avq poor. The visible return from these services may not be
encouraging from business standpoint, but the return is
evwYwR¨K `„wóf½x‡Z Drmvne¨ÄK bv n‡jI mvgvwRK jvf-
high from the social-cost benefit perspective.
¶wZi we‡ePbvq D”PZi Avq m„wóKvix e‡j we‡ewPZ nq|

MÖvnK‡`i `ªæZ I gvbm¤§Z †mev cÖ`v‡bi j‡¶¨ †mvbvjx In order to provide better and faster services to the
e¨vsK Gi mKj Kg©xi Rb¨ wbivc`, my¯’¨ I AvšÍwiK customers, SBPLC is offering safe, healthy and congenial
Kg©cwi‡e‡ki e¨e¯’v Kiv n‡q‡Q| mKj kvLv I wbqš¿YKvix working environment to each employee. In all branch
and offices, a separate and clean sanitation system for
Kvh©vj‡q bvix Kg©KZ©v-Kg©Pvix I MÖvnK‡`i Rb¨ Avjv`v I
its female employees and clients along with supply of
cwi”Qbœ †mwb‡Ukb Ges mKj Kvh©vjq I kvLvi Kg©KZ©v- pure hygienic drinking water during office hours for all
Kg©Pvix‡`i Rb¨ Rxevbygy³ I ¯^v¯’¨m¤§Z Lvevi cvwb the employees has been established.
mieiv‡ni e¨e¯’v wbwðZ Kiv n‡q‡Q|

†mvbvjx e¨vsK wcGjwm GeQi D‡jøL‡hvM¨ e¨emvwqK mvdj¨ Sonali Bank PLC made substantial progress during this
AR©b Ki‡Z m¶g n‡q‡Q| 2023 mv‡j e¨vs‡Ki cwiPvjb year. In 2023, the operating and net profit of the Bank
gybvdv Ges wbU gybvdvi cwigvY h_vµ‡g 3,846.19 †KvwU stood at Tk. 38,461.88 million and Tk. 6,514.80million

56 ANNUAL REPORT 2023

UvKv I 651.48 †KvwU UvKv| K÷ Ae dvÛ 5.52% Gi respectively. The cost of Fund stood at a reasonable rate
gZ m‡šÍvlRbK ch©v‡q ivLv, cwiPvjb `¶Zv e„w×, mylg of 5.52% in 2023. This profit has been achieved due to
enhanced operational efficiency, balanced deposit mix,
AvgvbZ wgkªY, e¨q ms‡KvPb Ges bb-dv‡ÛW Avq e„w×i
expenditure control and increase in non-funded income.
d‡j GB gybvdv AR©b m¤¢e n‡q‡Q| ZvQvov †gvU Av‡qi Besides, a substantial amount of income has been
g‡a¨ wewfbœ †mev mswkøó AvqI G AR©‡b ¸iæZ¡c~Y© f~wgKv generated from various banking services introduced.
cvjb K‡i‡Q|
†KvwfW-19 AwZgvwi Ges ivwkqv-BD‡µb hy× cieZ©x Amid recovery of the economy after breakout of COVID-19
2023 mv‡j A_©bxwZi cybiæ×v‡ii g‡a¨ AvgvbZ e„w×i nvi and Russia-Ukraine war in 2022, the Bank’s deposit grew up
kZKiv 6.04 fvM| G mg‡q e¨vs‡Ki Avgvb‡Zi cwigvY by more than 6.04% amidst fierce competition in banking
sector during 2023. During this time, deposit of Sonali
1.51 wUªwjqb UvKv| c~e©eZ©x eQ‡ii b¨vq e¨vsK Avgvb‡Zi
Bank increased at BDT 1.51 trillion. The Bank has held the
DˇivËi cÖe„w×i G Ae¯’v a‡i ivL‡Z mÿg n‡q‡Q| position of gradual increase of deposits successfully. The
Avgv‡`i Dci m¤§vwbZ MÖvnK‡`i AwePj Av¯’vi d‡jB success of deposit mobilization has been effectuated
AvgvbZ msMÖ‡ni G mvdj¨ AR©b m¤¢e n‡q‡Q| caused by our customers’ unflinching trust in us.

FY I AwMÖ‡gi cwigvY 2022 mv‡ji 84,643.02 †KvwU In loans and advances, the bank registered 19.09%
UvKv n‡Z 19.09% e„w× †c‡q 2023 mv‡j 100,805.27 positive growth in 2023, raising the total outstanding to
†KvwU UvKvq DbœxZ n‡q‡Q| d‡j 2022 Gi Zzjbvq 2023 Tk. 1,008,052.68 million from Tk. 846,430.23 million of
mv‡j e¨vs‡Ki GwW †iwkI D‡jøL‡hvM¨ cwigv‡Y e„w× †c‡q the last year. As a result, the AD ratio stood at 66.93% in
2023 which was 59.59% in 2022. The bank continued to
59.59% n‡Z 66.93% G DbœxZ n‡q‡Q| G‡¶‡Î e¨vsK
grow and diversify its portfolios as planned to avoid loan
†Kvb wbw`©ó Lv‡Z FY cÖ`vb bv K‡i eûgyLx Lv‡Z A_©vqb‡K concentrations, and other principles of sound lending
¸iæZ¡ w`‡q‡Q| G j‡¶¨ Avw_©K I mvgvwRKfv‡e jvfRbK were followed to keep the credit risk at a minimum level.
wewb‡qvM †¶Î¸‡jv‡K cÖvavb¨ †`qv n‡”Q| we‡klZt The plans for financing in thrust sectors like CMSME and
A_©bxwZ‡Z thrust sector e‡j ¯^xK„Z Drcv`bkxj Micro credit that are considered to be the growth engine
LvZ, gvB‡µv †µwWU I wmGgGmGgB Lv‡Z A_©vq‡b e¨vsK of the economy were executed.
cÖvavb¨ w`‡”Q|

2023 mv‡j ‡kÖwYK…Z FY †_‡K Avgiv me©‡gvU 1,164.44 In 2023, we recovered Tk. 11,644.40 million from classified
†KvwU UvKv Av`vq Ki‡Z mÿg n‡qwQ| d‡j †kªwYK…Z loan. Consequently the rate of classified loan dropped
down to 13.23% in 2023 which was 14.83% in 2022. We
F‡Yi nvi 2022 mv‡ji 14.83% †_‡K n«vm †c‡q
have planned to bring down the rate of Non Performing
2023 mv‡j 13.23% n‡q‡Q| GB nvi Avgiv wm‡½j Loans (NPL) to single digit. This has posed a significant
wWwR‡U bvwg‡q Avbvi cwiKíbv K‡iwQ| wbtm‡›`‡n GUv challenge to us indeed and to overcome the hurdles
Avgv‡`i Rb¨ bZzb P¨v‡jÄ| G P¨v‡jÄ ‡gvKv‡ejv Kivi appropriate strategies have already been worked out and
j‡¶¨ h‡_vchy³ †KŠkj B‡Zvg‡a¨ MÖnY Kiv n‡q‡Q Ges necessary instructions and guidance have been provided
Avgv‡`i `¶ Kg©xevwnbx‡K cÖ‡qvRbxq w`K-wb‡`©kbv to all levels of the officials. All our branches have been
†`qv n‡q‡Q| cvidiwg©s m¤ú` e„w×i j‡¶¨ e¨vs‡Ki instructed to extend strong monitoring towards creating
mKj kvLv‡K †Rvi ZrciZv Pvjv‡bvi wb‡`©kbv †`qv and enhancing performing assets. A robust monitoring
n‡q‡Q Ges AMÖMwZ gwbUwis Gi Rb¨ B‡Zvg‡a¨ my`„p mechanism has also been put in place to monitor the
gwbUwis e¨e¯’v cÖeZ©b Kiv n‡q‡Q| progress.

GKbR‡i 2023 mv‡j †mvbvjx e¨vs‡Ki AR©b wb¤œiƒct At a glance, Sonali Bank’s achievements in 2023 are as follows:
cwigvY (†KvwU) Amount in Million
weeiY n«vm/e„w× Particulars Change
2022 2023
2022 2023
†gvU FY I AwMÖg (†KvwU) 84643.02 100805.27 19.09% Total Loans & Advances 846430.23 1008052.68 19.09%

†gvU AvgvbZ (†KvwU) 142036.29 150618.39 6.04% Total Deposits 1420362.93 1506183.93 6.04%

FY AvgvbZ AbycvZ 59.59% 66.93% 7.34% Advance Deposit Ratio 59.59% 66.93% 7.34%

†kÖYxK…Z F‡Yi nvi 14.83% 13.23% (1.60%) % of Classified Loans 14.83% 13.11% (1.60%)

†bU B›Uv‡i÷ gvwR©b 208.94 475.87 127.75% Net Interest Margin 2089.43 4758.67 127.75%

†gvU Avq 9130.17 11972.16 31.13% Total Income 91301.70 119721.55 31.13%

†gvU Acv‡iwUs gybvdv (†KvwU) 2382.30 3846.19 61.45% Total Operating Profit 23823.07 38461.88 61.45%
wbU gybvdv (†KvwU) 371.04 651.48 75.58% Net Profit 3710.42 6514.80 75.58%

ANNUAL REPORT 2023 57

SONALI BANK PLC

Kg©x wb‡qv‡Mi †ÿ‡Î e¨vsK ¯^”Q wb‡qvM cÖwµqv AbymiY Sonali Bank follows transparent recruitment process
Ges †gav wfwËK I wj½ mgZvi Dci AwaKZi ¸iæZ¡ w`‡q and stresses more on merit as well as gender equality.
Highly qualified, intelligent, competent and trained
_v‡K| †UKmB Dbœq‡bi Rb¨ `¶ I cÖwkwÿZ gvbem¤ú`
human resources are necessary for continued growth
AZ¨šÍ ¸iæZ¡c~Y©| KviY e¨vs‡Ki mdjZv cÖwkwÿZ and success of bank. Success of the bank could be
Kg©xevwnbxi `¶Zv, ‡ckvMZ Ávb I Drcv`bkxjZvi Dci achieved by improving skills, knowledge and productivity
A‡bKvs‡k wbf©i K‡i| G we‡ePbvq eûgyLx cÖwk¶Y Kg©m~wP of the employees. Keeping this in view, we emphasize
I Kg©kvjvi Av‡qvRb Kiv n‡q _v‡K hv‡Z Zviv RvZxq I on the human resource development through diversified
AvšÍR©vwZK e¨vswKs Gi †¶‡Î me©‡kl D™¢veb I weKv‡ki training, seminars and symposiums to create a talent pool
mv‡_ cwiwPZ nevi cvkvcvwk Ávb I `¶Zvq mg„× n‡q especially in the managerial cadre. The Bank is trying to
DV‡Z cv‡i| e¨vs‡Ki Kg©xevwnbx hv‡Z ch©vß AwfÁZvi ensure the dividend that employees involve themselves
gva¨‡g †kqvi‡nvìvi‡`i Dc‡hvwMZv I MÖvnK‡`i mš‘wó in the running of business with adequate professional
AR©‡b f~wgKv ivL‡Z cv‡i ‡m Rb¨ e¨vsK AweiZ †Póv experience which in turn benefit to the shareholders and
help to create customer satisfaction.
Pvwj‡q hv‡”Q|

Rjevqy cwieZ©b †_‡K DrmvwiZ weiƒc cÖwZwµqvi e¨vcv‡i SBPLC is aware of the adverse effect of climate change
†mvbvjx e¨vsK me©`v mRvM Ges G †cÖw¶‡Z MÖxY e¨vswKs and various steps have been taken to ensure green
Kvh©vejx m¤ú‡K© eûgyLx Kiv n‡q‡Q, hv Af¨šÍixY Kg©cwi‡ek banking. Our green banking activities cover multiple areas
which include both in-house environment management
e¨e¯’vcbv †_‡K ïiæ K‡i MÖxY A_©vqb ch©šÍ we¯ÍZ
… | cwi‡ek
and green financing. There is a green banking unit to
evÜe e¨vswKs e¨e¯’vi weKvk, g~j¨vqb I e¨e¯’vcbvi Rb¨ develop, evaluate and administer eco-friendly banking
e¨vs‡Ki GKRb EaŸ©Zb wbe©vnx‡K `vwqZ¡ cÖ`vb Kiv n‡q‡Q| systems. Green banking activities are being notified to
MÖxY e¨vswKs Kvh©vejx cl©‡`i wi¯‹ g¨v‡bR‡g›U KwgwU‡K the Risk Management Committee of the Board on a
wbqwgZ AewnZ Kiv n‡”Q| e¨vsK cÖZ¨¶ I c‡iv¶fv‡e regular basis. The Bank is financing directly and indirectly
cwi‡ekevÜe cÖK‡í A_©vqb K‡i Avm‡Q| eco-friendly projects.

Zxeª cÖwZ‡hvwMZv I cwiewZ©Z cwiw¯’wZi mv‡_ Zvj wgwj‡q Sonali Bank has made substantial investment for the
development of the ICT infrastructure, vast automation
Pjvi wbwgË †mvbvjx e¨vsK A‡Uv‡gkb Kg©m~wP Ae¨vnZ
of unheard of magnitude, cyber security, manpower
†i‡L‡Q Ges GRb¨ cÖ‡qvRbxq wewb‡qvM m¤úbœ K‡i‡Q| development and research to keep itself abreast with
Kv‡Ri ¸YMZ gv‡bi Dbœqb, Af¨šÍixY Drcv`bkxjZv e„w×, fierce competition and the changing needs of the time.
MÖvnK †mevi gv‡bvbœqb Ges Kv‡Ri ¯^”QZv wbwðZ Kivi The bank has been continuously striving towards bringing
j‡¶¨ e¨vsK me©vaywbK cÖhyw³ cÖ‡qv‡Mi wbišÍi cÖ‡Póv Pvwj‡q technology driven banking services, accessibility and
hv‡”Q| wbiew”Qbœ, wbf©i‡hvM¨, `ªæZ I ¯^íe¨‡q one stop satisfaction to its customers. It helps standardize the quality
customer service RbM‡Yi †`vi‡Mvovq †cŠu‡Q of work, internal productivity and improved customer
†`qvi j‡¶¨ B‡Zvg‡a¨ e¨vs‡Ki mKj kvLv‡K AvšÍR©vwZK service. The Bank has already implemented international
gvbm¤úbœ Core Banking Solution (CBS) standard robust Core Banking Solution (CBS) system in all
†bUIqv‡K©i AvIZvq wb‡q Avmv n‡q‡Q| cvkvcvwk e¨vs‡K branches in order to provide uninterrupted, reliable, faster
and instant one stop customer service at an affordable
GBPAviGgGm mdUIq¨vi, AviGgGm+, GbwcGmwe,
cost. The Bank also introduced HRMS software, RMS Plus,
AviwUwRGm, e¨vP, weBGdwUGb, Ab-jvBb miKvwi †jb‡`b NPSB, RTGS, BACH, BEFTN, Online Govt. Transaction etc.
BZ¨vw` mvwf©m Pvjy Kiv n‡q‡Q|

`vwqZ¡kxj K‡c©v‡iU cÖwZôvb wn‡m‡e †`‡ki A_©bxwZ, Sonali Bank as a responsible corporate institution is fully
mgvR, †kqvi‡nvìvi, Kg©xevwnbx I cwi‡e‡ki Dci aware of its responsibility about how its operational
e¨vs‡Ki mvgwMÖK Kg©Kv‡Ûi AwfNv‡Zi wel‡q e¨vsK activities affect its shareholders, the economy,
its employees, the society and the environment.
c~Y©gvÎvq m‡PZb i‡q‡Q| ˆbwZKZvi mv‡_ e¨emvwqK
Conducting business in an ethical way, creating
Kvh©µg cwiPvjbv, e¨emv I A_©‰bwZK cÖe„w×i my‡hvM opportunities for business and economic growth,
m„wó, RbM‡Yi cÖZ¨vkv c~iY, cwi‡ek I cÖwZ‡ek myiÿvi empowering people to fulfill their aspirations, ensuring
cÖwZ j¶¨ †i‡L A_©vqb Ges mgv‡Ri Amnvq I `yt¯’ protection of environment while financing business and
gvby‡li cÖwZ mnvqZvi nvZ cÖmvwiZKiYB †mvbvjx e¨vs‡Ki supporting the distressed people of the society are at
mvgvwRK `vqe×Zvi g~j j¶¨| Avgiv wek¦vm Kwi, the heart of the corporate social responsibility of Sonali
`vwqZ¡kxj AvPiY †`‡ki A_©‰bwZK I mvgvwRK Dbœq‡bi Bank. We believe that responsible conducts are directly
mv‡_ IZ‡cÖvZfv‡e RwoZ Ges GRb¨ m~PbvjMœ †_‡K e¨vsK correlated with economic and social development of
wewea mvgvwRK I Rbwn‰Zlxg~jK Kg©m~wP ev¯Íevq‡b c_ the country. Sonali Bank has been playing a pioneering
cÖ`k©bKvixi fzwgKv cvjb K‡i Avm‡Q| G jÿ¨ ev¯Íevq‡b role in implementing various social and philanthropic

58 ANNUAL REPORT 2023

e¨vs‡K GKwU kw³kvjx wmGmAvi dvÛ MVb Kiv n‡q‡Q| programs. A well designed CSR fund has been developed
e¨vsK wk¶v, µxov, ¯^v¯’¨, gvbe m¤ú` Dbœqb, cÖK…wZ to fulfill these agenda. Education, sports, healthcare,
human resources development, conservation of nature,
msi¶Y, mvgvwRK m‡PZbZv e„w×, `yt¯’ gvby‡li cybe©vmb,
creation of social awareness, rehabilitation of distressed
kxZvZ©‡`i gv‡S DòZv m„wói cÖqv‡m K¤^j weZiY Ges humanities, distributing blankets amongst the cold
gvbweK wech©‡q wewfbœ Kg©m~wP nv‡Z †bqvi gva¨‡g mvgvwRK affected people are some of the important areas where
I Rbwn‰Zlxg~jK Kg©m~wP cwiPvjbv K‡i Avm‡Q| the bank carries out its social and humanitarian activities.

2023 mv‡j Avgvi mnKg©xe„›` Kg©`¶Zv I ‡ckv`vwi‡Z¡i The year 2023 was a demanding year in many business
cÖwZdjb NwU‡q wewfbœ e¨emvwqK m~P‡K DrK‡l©i aspects and a testament to the talent and professionalism of
all my colleagues who successfully met its challenges along
bwRi ¯’vcb K‡i‡Qb| Avwg Avgvi mnKg©x‡`i K‡Vvi
the way. I would like to take this opportunity to thank my
cwikªg, wbijm cÖ‡Póv I `vwqZ¡kxjZvi Rb¨ ab¨ev` colleagues for their efforts. I render my humble thanks and
RvbvB| e¨vsK-‡K Afxó j‡¶¨ †cuŠ‡Q †`qvi AwfhvÎvq gratitude to the Board of Directors of the Bank by whose
w`K wb‡`©kbvi f~wgKv cvj‡bi Rb¨ e¨vs‡Ki cwiPvjbv able direction and prudent guidance, our efforts met with
cl©`‡K RvbvB K…ZÁZv I AvšÍwiK ab¨ev`| m‡e©vcwi, success. In addition, I am grateful for their earnest co-
A_© gš¿Yvj‡qi A_© wefvM I Avw_©K cÖwZôvb wefvM, operation. I also express my sincere thanks and deep gratitude
evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ to Finance Division and Financial Institution Division of the
Kwgkb Ges Ab¨vb¨ wbqš¿K ms¯’v‡K Avgv‡`i e¨emv Ministry of Finance, Government of the Peoples Republic
cwiPvjbvq mn‡hvwMZv, civgk© I mg_©b cÖ`v‡bi Rb¨ of Bangladesh, Bangladesh Bank, Bangladesh Securities &
ab¨ev` I K…ZÁZv RvbvB| Avwg Avkv Kwi, G mKj Exchange Commission and other regulatory bodies for their
continued support and guidance. I also expect that their all
†÷K‡nvìv‡ii mg_©b I mn‡hvwMZv eZ©gv‡bi b¨vq
out support will continue in the years to come.
AvMvgx w`b¸‡jv‡ZI Ae¨vnZ _vK‡e|
Avgvi `„p wek¦vm, Avgv‡`i AmvaviY `jMZ cÖ‡Póv, I do believe, the momentum that Sonali Bank have
AMÖvwaKvi wfwËK Kvh©µg cwiPvjbv Ges AZxZ mdjZvi achieved in 2023 and also the previous proven track
†iK‡W©i gva¨‡g 2023 mv‡j AwR©Z AMÖMwZi avivevwnKZvq record of good performance through an excellent team
work and a shared set of priorities, the Bank will lead to
†mvbvjx e¨vsK cieZ©x eQi¸‡jv‡Z GKwU cÖhyw³ wfwËK
make a technology based cashless smart society in the
K¨vk‡jm ¯§vU© †mvmvBwU MV‡b †bZ„Z¡ ‡`‡e| upcoming years.

gnvb Avjøvn& Avgv‡`i mnvq †nvb| May Almighty Allah help us.

(†gvt AvdRvj Kwig) (Md. Afzal Karim)

wPd Gw·wKDwUf Awdmvi Chief Executive Officer

ANNUAL REPORT 2023 59

SONALI BANK PLC

CORPORATE
GOVERNANCE

60 ANNUAL REPORT 2023

DIRECTORS’ REPORT TO THE
SHAREHOLDERS

†mvbvjx e¨vsK wcGjwm Gi mß`k evwl©K mvaviY mfvq With immense pleasure, we take the privilege of
Avcbv‡`i‡K ¯^vMZ Rvbv‡Z †c‡i Avgiv AZ¨šÍ Avbw›`Z| 2023 welcoming you to the 17th Annual General Meeting (AGM)
of Sonali Bank PLC. We convey our heartfelt thanks and
mv‡j e¨vs‡Ki e¨emv cwiPvjbvi †ÿ‡Î Avcbv‡`i mevi Ae¨vnZ
gratitude to all of you for the continued support and
mg_©b I Drmvn †`qvi Rb¨ Avgiv AvšÍwiKfv‡e ab¨ev` I K…ZÁZv patronization in carrying out the business of our Bank
Ávcb KiwQ| e¨vs‡Ki 31 wW‡m¤^i 2023 ZvwiL wfwËK wbixwÿZ in 2023. We present herewith the audited Financial
Avw_©K weeiYxmn wbixÿv cÖwZ‡e`b Avcbv‡`i ch©v‡jvPbv I Statements and the Auditors’ Report for the year ended
we‡køl‡Yi Rb¨ Dc¯’vcb KiwQ| 31 December 2023 for your perusal and consideration.

‡`‡ki ivóª-gvwjKvbvaxb me©e„nr evwYwR¨K e¨vsK wn‡m‡e Sonali Bank PLC, the state-owned largest commercial
†mvbvjx e¨vsK wcGjwm mKj ¯Í‡ii MÖvnK‡K e¨vswKs myweav bank of the country, has been operating and
entertaining every level of people with banking facilities
cÖ`v‡bi cvkvcvwk D™¢vebx e¨vswKs †mev †`qvi gva¨‡g †`‡ki and delivering innovative banking services for overall
†UKmB Dbœq‡b f~wgKv ivL‡Q| gvbm¤§Z MÖvnK †mev cÖ`v‡bi and sustainable development of the country. It was
j‡ÿ¨ bZzb wfkb I wgkb wb‡q G e¨vsK 3 Ryb, 2007 Zvwi‡L registered as the Public Limited Company on 3 June
cvewjK wjwg‡UW †Kv¤úvbx wn‡m‡e wbewÜZ nq| cieZ©x‡Z 14 2007 with a new Vision and Mission to serve the nation
by providing quality customer services. Later on, the
†g 2023 n‡Z †mvbvjx e¨vsK wjwg‡UW Gi bvg cwieZ©bc~e©K name of Sonali Bank Limited has been changed into
ÕÕ†mvbvjx e¨vsK wcGjwmÕÕ bvgKiY Kiv nq| “Sonali Bank PLC” on 14 May 2023.

G cÖwZ‡e`‡b †mvbvjx e¨vsK wcGjwm Gi 2023 mv‡ji e¨emvwqK The activities of the Bank and its operational
Kvh©µg I djvd‡ji mv‡_ 2022 mv‡ji Zzjbvg~jK Ae¯’v Zz‡j performance in 2023 as compared to those in
2022 have been presented in this report. The
aiv n‡q‡Q| Avw_©K cÖwZ‡e`bmg~n cÖ¯‘‡Zi mgq B›Uvib¨vkbvj financial statements prepared in accordance with
wdb¨vwÝqvj wi‡cvwU©s ÷¨vÛvW© (AvBGdAviGm) mn wbqš¿YKvix the International Financial Reporting Standards
ms¯’vi wb‡`©kvejx cwicvjb Kiv n‡q‡Q| e¨vs‡Ki 31 wW‡m¤^i, (IFRS) and other compliances for the year ended 31
2023 wfwËK cÖ¯‘ZK…Z Avw_©K weeiYxmg~n GB cÖwZ‡e`‡bi mv‡_ December 2023, have been annexed to this report.
Before presenting the detailed performance of
mshy³ Av‡Q| e¨vs‡Ki Avw_©K Ae¯’vi wek` wPÎ Dc¯’vc‡bi c~‡e© the Bank in the year under review, we would like
2023 mv‡ji wek¦ A_©bxwZi cvkvcvwk evsjv‡`‡ki A_©bxwZi to present you a snapshot of the performance of
wKQz ¸iæZ¡c~Y© ‡cÖÿvc‡Ui mvims‡ÿc Dc¯’vcb Kiv n‡jv| the world economy in 2023 followed by that of the
Bangladesh economy in some key areas.

wek¦ A_©bxwZ 2023 World Economy 2023

wek¦ A_©bxwZ †KvwfW 19 AwZgvixi Ae¨ewnZ ciB ivwkqv-BD‡µb The global economy remains remarkably resilient
through the global disinflation of 2022–23 descended
hy‡×i d‡j wek^e¨vcx m„ó R¦vjvbx I Lv`¨ msKU, g~j¨ùxwZi Pig
from its peak in mid-2022, after a long eventful journey
DaŸ©MwZmn bvbv NUbvcÖev‡ni d‡j mvivwe‡k^ avivevwnKfv‡e that was started with supply-chain disruptions in the
K‡Vvi ms‡KvPbg~jK Avw_©K bxwZ MÖnY Kiv nq| GiB cÖfv‡e aftermath of the pandemic, a Russian-initiated war on
gy`vª ùxwZRwbZ g~j¨ùxwZ 2022 mv‡ji gvSvgvwS mg‡q m‡e©v”P Ukraine that triggered a global energy and food crisis, and
Ae¯’vb n‡Z 2022-23 Gi †klv‡a© wb‡P †b‡g Av‡m hw`I G a considerable surge in inflation, followed by a globally
synchronized monetary policy tightening. According to
mg‡q wek^ A_©bxwZ Avðh©RbKfv‡e w¯’Zve¯’vq wQj| AvšÍRv© wZK
the International Monetary Fund (IMF) World Economic
gy`vª Znwej, Iqvì© B‡Kv‡bvwgK AvDUjyK GwcÖj 2024 †gvZv‡eK Outlook (WEO) April 2024, global growth, estimated at
wek¦ A_©bxwZi cÖew„ × 2023 mv‡ji 3.2 kZvs‡ki g‡Zv 2024 I 3.2 percent in 2023, is projected to continue at the same
2025 mv‡jI GKB ai‡Yi n‡Z cv‡i| pace in 2024 and 2025.

DbœZ †`k¸‡jv‡ZI 2024 mv‡j K‡Vvi ms‡KvPbg~jK Avw_©K Governments in advanced economies are expected to
bxwZ MÖnY Kiv n‡jI 2025-26 mv‡j wKQzUv wkw_j Kiv n‡Z tighten fiscal policy in 2024 and, to a lesser extent, in
2025–26. For advanced economies, growth is projected
cv‡i| DbœZ A_©bxwZi †`kMy‡jv‡Z cÖe„w× 2023 mv‡ji 1.6

ANNUAL REPORT 2023 61

SONALI BANK PLC

kZvsk n‡Z 2024 I 2025 mv‡j h_vµ‡g 1.7 I 1.8 to rise from 1.6 percent in 2023 to 1.7 percent in 2024
and 1.8 percent in 2025. In the United States, growth is
kZvsk cÖe„w× AwR©Z n‡e e‡j Avkv Kiv n‡”Q| †`k¸‡jvi
projected to increase to 2.7 percent in 2024 from 2.5
g‡a¨ hy³iv‡óªi cÖe„w× 2023 mv‡ji 2.5% n‡Z 2024 mv‡j percent in 2023, before slowing to 1.9 percent in 2025.
2.7% G DbœxZ n‡Z cv‡i| BD‡iv A‡ji cÖe„w× 2023 Growth in the euro area is projected to recover from 0.4
mv‡ji 0.4% n‡Z cyYiæ×vi n‡q 2024 mv‡j 0.8% Ges percent in 2023 to 0.8 percent in 2024 and 1.5 percent
in 2025. The United Kingdom is estimated to grow by
2025 mv‡j 1.5% n‡Z cv‡i| GQvov hy³iv‡R¨ 2023
0.1 percent, Germany -0.2 percent, France 0.7 percent,
mv‡ji 0.1% n‡Z 2024 mv‡j 0.5%, Rvg©vwb‡Z GKBfv‡e Japan 1.3 percent and Canada 0.9 percent in 2023. In
-0.2% n‡Z 0.7%, d«v‡Ý 0.7% n‡Z 1.1%, Rvcv‡b 2024, the projected growth for the UK is 0.5 percent,
1.3% n‡Z 1.7% Ges KvbvWvq 2023 mv‡ji 0.9% n‡Z Germany from 0.7 percent, France 1.1 percent, Japan 1.7
2024 mv‡j 1.8% cÖe„w× AwR©Z n‡Z cv‡i| percent and Canada 1.8 percent.

2023 mv‡j D`xqgvb I Dbœqbkxj A_©bxwZi †`k¸‡jvi cÖe„w× The growth in emerging market and developing
4.5% cÖ‡ÿcb Kiv n‡q‡Q †hwU 2024 I 2025 mv‡j 4.2% economies was 4.5 percent in 2023 and expected
to be stable at 4.2 percent in 2024 and 2025. India is
G w¯’i _vK‡Z cv‡i| †`k¸‡jvi g‡a¨ fvi‡Zi cÖe„w× n‡Z expected to grow by 6.8 percent, highest in the group,
cv‡i me‡P‡q †ekx, cÖvq 6.8%; hw`I Af¨šÍixY µgea©gvb and projected to remain strong at 6.8 percent in 2024
Pvwn`v I Kg©Rxex †kÖYxi DÌv‡bi Kvi‡Y 2024 mv‡j GKB and 6.5 percent in 2025, with the robustness reflecting
continuing strength in domestic demand and a rising
cÖe„w× a‡i ivL‡jI 2025 mv‡j 6.5% G w¯’i _vK‡Z cv‡i|
working-age population. Growth in China is projected
m¤ú` e¨e¯’vcbvi `~e©jZvi Kvi‡Y Pxb Gi cÖe„w× 2023 mv‡ji to slow from 5.2 percent in 2023 to 4.6 percent in 2024
5.2% n‡Z n«vm †c‡q 2024 I 2025 mv‡j h_vµ‡g 4.6% I and 4.1 percent in 2025 as the effect of weakness in
4.1% G †b‡g Avm‡Z cv‡i| ivwkqvi wb¤œMvgx cÖe„w×i Kvi‡Y the property sector. Due to decreasing growth in Russia,
Emerging and developing Europe is projected at 3.2
BD‡iv‡ci D`xqgvb I Dbœqbkxj †`k¸‡jvi cÖe„w× 2023
percent in 2023 and 3.1 percent in 2024, with an easing
mv‡ji 3.2% n‡Z 2024 I 2025 mv‡j h_vµ‡g 3.1% I to 2.8 percent in 2025. Growth in the Middle East and
2.8% G †b‡g Avm‡Z cv‡i| ga¨cÖvP¨ I ga¨ Gwkqvi cÖe„w× Central Asia is projected to rise from an estimated 2.0
2023 mv‡ji 2.0% n‡Z 2024 mv‡j 2.8% Ges 2025 mv‡j percent in 2023 to 2.8 percent in 2024 and 4.2 percent
in 2025.
4.2% G DbœxZ n‡Z cv‡i|

Aciw`‡K ivwkqv-BD‡µb hy‡×i Kvi‡Y wek^e¨¨vcx g~j¨ùxwZ The Russia-Ukraine war has fueled global inflation.
e„w× ‡c‡q‡Q| g~j¨ùxwZ wbqš¿‡Y hy³iv‡óªi †dWv‡ij wiRvf©mn Central bank policies in many countries around the world,
including the US Federal Reserve (Fed), have increased
we‡k^i wewfbœ †`‡ki †K›`ªxq e¨vsKmg~n wewfbœ mg‡q my`nvi e„w× interest rates several times to control inflation. As a result,
K‡i‡Q| d‡j Avg`vbxwbf©i †`kmg~‡ni PjwZ wnmv‡ei fvimv‡g¨ the negative impact on the current account balance
FYvZ¡K cÖfve cwijwÿZ n‡jI †mwU 2022 mv‡ji 8.8% n‡Z of various countries continues to increase in import-
dependent economies. Global inflation is estimated
2023 mv‡j 6.6% Ges 2024 mv‡j 4.5% G †b‡g Avm‡e e‡j
at 8.8 percent in 2022 (annual average), 6.6 percent in
aviYv Kiv n‡”Q| hw`I µgn«vmgvb G g~j¨ùxwZ nvi †KvwfW 19 2023 and will be 4.5 percent in 2024. However, this rate
AwZgvixi c~‡e©i Zzjbvq †ekxB _vK‡e| of inflation is higher than the pre-pandemic inflation rate.

(m~Ît AvBGgGd Iqvì© B‡Kv‡bvwgK AvDUjyK GwcÖj 2024) (Source: IMF World Economic Outlook April 2024)

evsjv‡`‡ki A_©bxwZ 2023 Bangladesh Economy 2023

†KvwfW 19 AwZgvix I ivwkqv BD‡µb Pjgvb msK‡Ui Kvi‡Y Bangladesh’s economy has recovered from the economic
damage caused by the impact of COVID-19 and the
evsjv‡`‡ki ÿwZMÖ¯’ A_©bxwZ‡Z cÖvYmÂvi ïiæ n‡jI wek¦ ongoing Russia-Ukraine crisis, although the recent
A_©bxwZ axiMwZ G‡`‡ki A_©bxwZ‡Z cyYivq w¯’i K‡i w`‡”Q| slowdown in the global economy has adversely affected
2020-21 I 2021-22 mv‡j evsjv‡`‡ki A_©bxwZi h_vµ‡g the country’s economic growth. Bangladesh’s economic
6.94% I 7.10% cÖe„w× AwR©Z nq| evsjv‡`k cwimsL¨vb growth stood at 6.94 percent in FY 2020-21 and 7.10
percent in FY 2021-22. According to the provisional
ey¨‡iv (weweGm) Gi wnmve Abyhvqx, 2022-23 A_©eQ‡i estimates of Bangladesh Bureau of Statistics (BBS), the
evsjv‡`k Gi 6.03% cÖe„w× AwR©Z n‡q‡Q| GDP growth stood at 6.03 percent in FY 2022-23.

weweGm Gi mvgwqK wnmve Abyhvqx K…wl Lv‡Zi cÖew„ × 2022-23 According to the provisional estimate of BBS, the growth of
agriculture sector has slowed down to 2.61 percent in the FY
Gi cÖew„ × 2021-22 n‡Z 0.44% kZvsk n«vm †c‡q G 2.61
2022-23, 0.44 percentage point lower than FY 2021-2022.
kZvs‡k †b‡g G‡m‡Q| 2022-23 G wkí Lv‡Zi cÖe„w×

62 ANNUAL REPORT 2023

8.18% G DbœxZ n‡q‡Q| miKv‡ii avivevwnK D‡`¨v‡Mi During the same period, industrial sector grew by 8.18%
in 2022-23. In the past years, with the aim of encouraging
d‡j c~e©eZ©x eQimg~‡ni b¨vq fvix wk‡íi cvkvcvwk ga¨g I the expansion of medium and small industries in addition
ÿz`ª wk‡íi m¤úªmvi‡Y G LvZ‡K DrmvwnZ Kivi j‡ÿ¨ e¨vsK to large industries, the amount of industrial loans distributed
I Avw_©K cÖwZôvbmg~‡ni gva¨‡g e¨vcKfv‡e wkí FY cÖ`vb in the country is continuously increasing as a result of the
I Ab¨vb¨ mnvqZv cÖ`vb Kiv n‡”Q| d‡j wkí Lv‡Zi cÖe„w× continuous efforts of the government to distribute industrial
loans and other cooperation through banks and financial
†gvU wRwWwcÕi 37.56% G DbœxZ n‡q‡Q, hv c~e©eZ©x eQ‡ii institutions. The contribution of industry to GDP became
Zzjbvq 0.64% †ekx| †mevLv‡Zi cÖe„w× Av‡Mi eQ‡ii 37.56 percent, 0.64 percentage point higher than the
Zzjbvq 0.42% n«vm †c‡q 2022-23 A_©eQ‡i 5.84% G previous fiscal year. The services sector is estimated to have
`uvwo‡q‡Q| My`vgRvZ I Avbylw½K Lv‡Z m‡e©v”P 9.08% 5.84 percent growth in FY 2022-23, 0.42 percentage point
lower than the FY 2021-22. Warehouse and support activities
Ges gvbe ¯^v¯’¨ I mvgvwRK †mev Kvh©µ‡g 8.36% cÖe„w× are estimated to experience the highest growth rate of 9.08
AwR©Z n‡q‡Q| percent followed by Human health and social work (8.36%).

me©‡kl wnmve Abyhvqx, 2022-23 A_©eQ‡i gv_vwcQz wRwWwc As per the final estimate, per capita GDP stood at US$
c~e©eZ©x A_©eQ‡ii 2,687 gvtWjvi n‡Z n«vm †c‡q 2,657 2,657 in FY 2022-23 decreasing from US$ 2,687 of fiscal
year 2021-22, while the per capita national income stood
gvtWjv‡i Ges gv_vwcQz RvZxq Avq 2021-22 Gi 2,793 at US$ 2,765 which was US$ 2,793 in the previous fiscal
gvtWjvi n‡Z 2022-23 G 2,765 gvtWjv‡i †b‡g G‡m‡Q| year. The per capita national income in dollar terms has
g~jZt 2022-23 A_©eQ‡i gvwK©b Wjv‡ii wewbgq g~j¨ e„w× declined slightly in FY 2022-23 due to the appreciation
cvIqvq gv_vwcQz RvZxq Avq n«vm †c‡q‡Q| of US dollar.

ivwkqv-BD‡µb hy‡×i Kvi‡b mieivn †PBb wewNœZ nIqvq The world has seen a sharp jump in commodity prices
due to supply chain issues as a result of ongoing
wek¦evRv‡i `ªe¨g~‡j¨i EaŸ©MwZ cwijwÿZ nq| we‡k¦i mKj
Russia-Ukraine war. Like other countries of the world,
†`‡ki g‡Zv evsjv‡`‡kI g~j¨ùxwZ e„w× †c‡q‡Q| c‡q›U Uz the upward trend of the price level is being observed
c‡q›U †ewm‡m GwcÖj 2023 G g~j¨ùxwZ `vovq 9.24% hv in Bangladesh. On a point-to-point basis, inflation stood
GwcÖj 2022 G wQ‡jv 6.29%| evsjv‡`k miKvi g~j¨ùxwZi at 9.24 percent in April 2023, as against 6.29 percent in
April 2022. The government has taken various necessary
G Pvc cÖkg‡bi j‡ÿ¨ wewfbœ D‡`¨vM MÖnY K‡i‡Q| G
steps to alleviate the pressure of inflation. The coverage
j‡ÿ¨ IGgGm Gi cwiwa evov‡bvi cvkvcvwk b¨vh¨g~‡j¨ of the OMS has increased and ‘Family Cards’ have been
wbZ¨cÖ‡qvRbxq cY¨ µq Ki‡Z †`‡ki GK †KvwU gvbyl‡K issued to nearly 1 crore poor people so that they can buy
we‡kl KvW© cÖ`v‡bi e¨e¯’v MÖnY K‡i‡Q| essential commodities at low cost.

†KvwfW-19 AwZgvix Ges ivwkqv-BD‡µb hy‡×i ÿwZKi Foreign trade of Bangladesh has started to return to a
positive trend after confronting the adverse effect of
cÖfve †gvKv‡ejv K‡i evsjv‡`‡ki ‰e‡`wkK evwYR¨ DbœwZi
COVID-19 pandemic and Russia-Ukraine war. Bangladesh’s
avivq wd‡i Avm‡Z ïiæ K‡i‡Q| 2022-23 A_©eQ‡i ißvwb export growth is on a positive trend as exports receipts are
evwYR¨ c~e©eZ©x eQ‡ii Zzjbvq wKQzUv e„w× †c‡q 54.20 estimated to be 54.2 billion in FY 2022-23, which is a bit
wewjqb gvtWjv‡i DbœxZ n‡q‡Q| Aciw`‡K †`‡ki Avg`vwb higher than the previous fiscal year. On the other hand,
Country’s total Import payments is estimated to be around
e¨qI c~e©eZ©x eQ‡ii Zzjbvq n«vm †c‡q 2022-23 A_©eQ‡i
US$ 75.1 billion in FY 2022-23, lower than the import
75.10 wewjqb gvt Wjv‡i `uvwo‡q‡Q| miKv‡ii cvkvcvwk payments of the preceding fiscal year. The negative growth
†K›`ªxq e¨vsK KZ©„K wewfbœ c`‡ÿc MÖn‡Yi d‡j Avg`vwb of import might be the outcome of a number of initiatives
wKQzUv n«vm ‡c‡q‡Q| taken by the government as well as the central bank.

†KvwfW 19 AwZgvixi Kvi‡b ewnwe©‡k¦ kÖgevRvi gvivZ¥Kfv‡e Due to COVID-19 pandemic, the global labour market
has drastically affected. But number of emigrant workers
ÿwZMÖ¯’ nq| K‡ivbv cwiw¯’wZi DbœwZ nIqvq ågb wb‡lavÁvq
from Bangladesh has significantly increased due to ease
wkw_jZvi Kvi‡Y 2021-22 A_©eQ‡i evsjv‡`k †_‡K the travel restriction for better COVID-19 situation. During
kÖwg‡Ki Awfevmb msL¨v D‡jøL‡hvM¨ nv‡i e„w× †c‡q‡Q| 2022-23, financial year, remittance earned reached
Gmg‡q evsjv‡`‡ki cÖevmxiv †gvU 21,031.68 wgwjqb gvt at US$ 21.03 billion though 15.11 percent lower than
previous fiscal year. The major portion of remittance has
Wjvi †iwgU¨vÝ †cÖiY K‡i| wewfbœ †`‡ki g‡a¨ ga¨cÖv‡P¨i
been received from Middle East countries. During 2023,
†`k¸wj †_‡K mePvB‡Z †ekx †iwgU¨vÝ AvnwiZ nq| 2023 mv‡j the highest amount of remittance earned from Kingdom
me©vwaK †iwgU¨vÝ AvnwiZ †`k¸wji g‡a¨ †mŠw`Avie, hy³ivóª, mshy³ of Saudi Arabia followed by the USA, UAE, the UK, Qatar,
Avie AvwgivZ, hy³ivR¨, KvZvi, Kz‡qZ, gvj‡qwkqv, BZvwj Ab¨Zg| Kuwait, Malaysia, Italy and so on.

ANNUAL REPORT 2023 63

SONALI BANK PLC

hy‡×i Kvi‡Y FYvZ¡K evwYwR¨K fvimvg¨ Ges †iwgU¨v‡Ýi wb¤œgLy x Shortfall in the overall balance due to the war
avivi d‡j mvgwMÖK evwY‡R¨i fvimv‡g¨i NvUwZ‡Z ˆe‡`wkK and deficit balance of payment owing to negative
remittance flow is largely responsible for the downfall
evwY‡R¨i wiRvf© n«vm †c‡q‡Q| ‰e‡`wkK gy`vª i wewbgq g~‡j¨i e¨vcK of foreign exchange reserve. Due to the high import bill
DÌvbRwbZ m„ó D”P Avg`vbx wej cwi‡kv‡ai Kvi‡Y ˆe‡`wkK resulted from global excessive price hike the volume of
wiRvf© Gi cwigvY wW‡m¤^i 2023 G 27.13 wewjqb gvt Wjv‡i foreign exchange reserves stood at US$ 27.13 billion on
†b‡g Av‡m| December 2023.

(m~Ît evsjv‡`k A_©‰bwZK mgxÿv 2023) (Source: Bangladesh Economic Review 2023)

†mvbvjx e¨vsK wcGjwm Gi AvZ¥cÖKvk The emergence of Sonali Bank PLC

evsjv‡`k e¨vsK (b¨vkbvjvB‡Rkb) AW©vi-1972, ivóªcwZi Sonali Bank was established under the Bangladesh
Banks (Nationalization) Order-1972, President’s
Aa¨v‡`k bs-26, 1972 †gvZv‡eK b¨vkbvj e¨vsK Ae cvwK¯Ívb,
Order No-26 of 1972, through the merger and
w` e¨vsK Ae evn&Iqvjcyi Ges w` wcÖwgqvi e¨vsK wjwg‡UW
nationalization of 1) The National Bank of Pakistan 2)
A½xf~ZKiY Ges RvZxqKi‡Yi gva¨‡g †mvbvjx e¨vsK AvZ¥cK Ö vk The Bank of Bhawalpur Ltd. and 3) The Premier Bank
K‡i| cieZ©x‡Z †Kv¤úvbx AvBb, 1994 Abyhvqx 3 Ryb, 2007 Ltd. Later on, it was registered as a Public Limited
Zvwi‡L R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m G wbe܇bi gva¨‡g GwU Company under the Company Act, 1994 on 3 June,
cvewjK wjwg‡UW †Kv¤úvbx wn‡m‡e ¯^vaxbfv‡e Kvh©µg ïiæ K‡i| 2007, with joint stock companies and firms to make
evsjv‡`k e¨vsK KZ…K © e¨vsK †Kv¤úvbx AvBb, 1991 Abyhvqx 5 it operationally independent. Bangladesh Bank
issued Banking License on 5 June, 2007 under the
Ryb, 2007 Zvwi‡L †mvbvjx e¨vsK wjwg‡UW-‡K e¨vswKs jvB‡mÝ
Bank Company Act, 1991. Sonali Bank PLC took over
cÖ`vb Kiv nq| MYcÖRvZš¿x evsjv‡`k miKvi Ges †mvbvjx e¨vsK
the business of Sonali Bank on 15 November, 2007
wjwg‡UW Gi g‡a¨ m¤úvw`Z Pzw³ †gvZv‡eK 15 b‡f¤^i, 2007 with all assets, liabilities, benefits, rights, powers,
mv‡j GKwU Vendor’s Agreement ¯^vÿ‡ii gva¨‡g †mvbvjx authorities, privileges, borrowing and responsibility as
e¨vs‡Ki mKj m¤ú`, `vq, myweav, AwaKvi, ÿgZv, KZ©Z „ ,¡ going concern under a Vendor`s Agreement signed
we‡klvwaKvi, avi Ges `vwqZ¡ AwaMÖn‡Yi gva¨‡g †mvbvjx e¨vsK between the Government of the People’s Republic
wjwg‡UW GKwU Pjgvb mZ¡v (Going Concern) wn‡m‡e cÖwZôv of Bangladesh and Sonali Bank Limited. The name
of Sonali Bank Limited again has been changed into
cvq| cieZ©x‡Z 14 †g 2023 n‡Z †mvbvjx e¨vsK wjwg‡UW
“Sonali Bank PLC” on 14 May 2023. It is the state-
Gi bvg cwieZ©bc~eK © ÔÔ†mvbvjx e¨vsK wcGjwmÕÕ bvgKiY Kiv
owned largest commercial bank having 1,230 local
nq| †`‡ki Af¨šÍ‡i i‡q‡Q 1,230wU Ges †`‡ki evB‡i 2wU branches, 2 foreign branches, 69 Principle Offices,
kvLvmn †gvU 1,232wU kvLv wb‡q eZ©gv‡b GwU †`‡ki me©en„ r ivóª 18 GM Offices, 37 Corporate Branches (including
gvwjKvbvaxb evwYwR¨K e¨vsK| GQvov 69wU wcÖwÝcvj Awdm, 18wU Local Office), 48 AD branches and four subsidiaries-
wRGg Awdm, kvLv mg~‡ni g‡a¨ 37wU K‡c©v‡iU kvLv, 48wU GwW named Sonali Exchange Co. Inc. (SECI) USA, Sonali
kvLv i‡q‡Q| †mvbvjx e¨vsK wcGjwm Gi 4wU mvewmwWqvix cÖwZôvb Bangladesh (UK) Ltd., Sonali Pay (UK) Ltd. and Sonali
Investment Limited (SIL) in Bangladesh; and an
i‡q‡Q-(1) †mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI),
associate named Sonali Intellect Ltd. The address
BDGmG, (2) †mvbvjx evsjv‡`k (BD‡K) wjwg‡UW, (3) ‡mvbvjx
of the registered office of the Bank is 35-42, 44
†c (BD‡K)wjwg‡UW Ges (4) †mvbvjx Bb‡fó‡g›U wjwg‡UW (SIL), Motijheel Commercial Area, Dhaka, Bangladesh. The
evsjv‡`k| GQvov, GKwU G‡mvwm‡qUI i‡q‡Q- †mvbvjx Bb‡U‡j± Board of Directors of the Bank consists of 09 (nine)
wjwg‡UW| G e¨vs‡Ki wbewÜZ Awdm wVKvbv n‡jv 35-42, 44 members headed by a Chairman. The Directors are
gwZwSj, evwYwR¨K GjvKv, XvKv, evsjv‡`k| e¨vs‡Ki cwiPvjbv representatives from both public and private sectors
cl©` 09(bq) m`m¨ wewkó hvi cÖavb n‡jb GKRb †Pqvig¨vb| with high proficiency and scholastic background in
their respective areas.
cwiPvjbv cl©‡`i m`m¨MY Kg©`ÿZv I Áv‡bi Av‡jv‡K weKwkZ
miKvwi Ges †emiKvwi Lv‡Zi cÖwZwbwa|
evsjv‡`‡ki e¨vswKs †m±‡i †mvbvjx e¨vsK wcGjwm Sonali Bank PLC- In the Banking Sector of Bangladesh

After the emergence of Bangladesh, the role of Sonali

evsjv‡`‡ki Afz¨`‡qi ci n‡Z †`‡ki A_©bxwZ Ges e¨vswKs †m±‡ii Bank PLC in advancement of economy and in flourishing
weKvk Gi †ÿ‡Î †mvbvjx e¨vs‡Ki f~wgKv Ab¯^xKvh©| ZrKvjxb banking business is indispensable. Since the liberation
evsjv‡`k cybM©V‡b Ges cieZ©x‡Z †`‡ki e¨emv evwYR¨ cÖmvi, war, Sonali Bank has been working as the co-partner of
wkíKviLvbv ¯’vcb, Avg`vwb-ißvwb mn mvwe©K Dbœqbg~jK Kg©Kv‡Û complying government policy in rebuilding Bangladesh
†mvbvjx e¨vsK miKv‡ii mn‡hvMx wn‡m‡e KvR K‡i Avm‡Q| 2023 along with expansion of business, establishment of

64 ANNUAL REPORT 2023

mvj †k‡l †`‡ki e¨vswKs †m±‡ii †gvU 17,787,040.00 wgwjqb industries, import-export financing etc. At the end of 2023,
amount of deposits and loans & advances of Sonali Bank
UvKv AvgvbZ Ges 15,616,966.00 wgwjqb UvKv FY I AwMÖg Gi
PLC are Tk. 1,506,183.93 million and Tk. 1,008,052.68 million
wecix‡Z †mvbvjx e¨vs‡Ki AvgvbZ Ges FY I AwMÖ‡gi cwigvY h_ respectively, 8.47% of total deposits of Tk. 17,787,040.00
vµ‡g 1,506,183.93 wgwjqb Ges 1,008,052.68 wgwjqb UvKv, million and 6.45% of total loans & advances of Tk.
kZKiv wn‡m‡e h_vµ‡g 8.47% I 6.45%| 2023 mv‡j †mvbvjx 15,616,966.00 million of the banking sector of Bangladesh.
e¨vsK ‡kÖwYK…Z FY n‡Z ‡gvU 11,644.40 wgwjqb UvKv Av`vq K‡i| During 2023, Sonali Bank has recovered Tk. 11,644.40
million from classified loan. In inward foreign remittance,
†`‡ki †gvU ˆe‡`wkK †iwgU¨vÝ 21,917.15 wgwjqb BDGm Wjv‡ii Sonali Bank’s contribution is US$ 1,160.20 million which is
wecix‡Z †mvbvjx e¨vsK wcGjwm Gi Ae`vb 1,160.20 wgwjqb BDGm 3.64% of total foreign remittance of US$ 21,917.15 million
Wjvi ev 3.64%| D‡jøwLZ eQ‡i †mvbvjx e¨vsK AwMÖg Ki, Dr‡m Ki of Bangladesh. Moreover, the Bank deposited a total of Tk.
Ges f¨vU eve` †gvU 14,170.96 wgwjqb UvKv miKvwi †KvlvMv‡i Rgv 14,170.96 million in 2023 as advance tax, tax at source and
VAT to the national exchequer.
K‡i‡Q|
†mvbvjx e¨vsK wcGjwm Gi mvewmwWqvwi cÖwZôvb Subsidiaries of Sonali Bank PLC

†mvbvjx e¨vsK wcGjwmi 4wU mvewmwWqvwi cÖwZôvb i‡q‡Q-(1) Sonali Bank PLC has four subsidiaries named (1)
†mvbvjx Bb‡f÷‡g›U wjwg‡UW (SIL) (2) †mvbvjx G·‡PÄ Sonali Investment Limited (SIL) (2) Sonali Exchange
Co. Inc. (SECI) (3) Sonali Bangladesh (UK) Limited
†Kv¤úvwb BbK‡c©v‡i‡UW (SECI) (3) †mvbvjx evsjv‡`k (BD‡K)
and (4) Sonali Pay (UK) Ltd.
wjwg‡UW Ges (4) †mvbvjx †c (BD‡K) wjwg‡UW |

†mvbvjx Bb‡f÷‡g›U wjwg‡UW (SIL) Sonali Investment Limited (SIL)

cuwy RevRv‡ii ÿz`ª I mvaviY wewb‡qvMKvix‡`i ¯^v_© myiÿvi Rb¨ To protect the interest of small and common investors
in the capital market, SBPLC has established a wholly
†mvbvjx evsK wcGjwm m¤ú~Y© wbR¯^ A_©vq‡b 2010 mv‡j Ò†mvbvjx
owned subsidiary named ‘Sonali Investment Limited’ in
Bb‡f÷‡g›U wjwg‡UWÕÕ (SIL) bv‡g GKwU mvewmwWqvix †Kv¤úvbx 2010. Sonali Investment Limited was registered under
cÖwZôv K‡i| 20 GwcÖj 2010 mv‡j †Kv¤úvbx AvBb, 1994 the Companies Act 1994 as a public limited company by
Abymv‡i †mvbvjx Bb‡f÷‡g›U wjwg‡UW wbewÜZ nq Ges R‡q›U shares on 20 April, 2010 and commenced its operations
from 22 April, 2010 as the company got registered with
÷K †Kv¤úvbxR GÛ dvg©m Gi wbKU wbewÜZ nIqvi ci 22 GwcÖj
Registrar of Joint Stock Companies and Firms. SIL received
2010 ZvwiL †_‡K Gi Kvh©µg ïiæ K‡i| weGmBwm †_‡K 05 AvMó merchant banking license from BSEC on 5 August, 2010.
2010 Zvwi‡L SIL gv‡P©›U e¨vswKs Gi jvB‡mÝ AR©b K‡i| evsjv‡`k In terms of the guidelines of Bangladesh Bank, SBPLC
e¨vs‡Ki bxwZgvjvi Av‡jv‡K †mvbvjx e¨vsK wcGjwm Zvi gv‡P©›U has converted its merchant banking unit into a separate
e¨vswKs BDwbU‡K GKwU c„_K mvewmwWqvix †Kv¤úvbx wn‡m‡e †mvbvjx subsidiary company titled Sonali Investment Limited (SIL)
with the objectives of undertaking full-fledged merchant
Bb‡f÷‡g›U wjwg‡UW G iƒcvšÍi K‡i| Gi jÿ¨ wQj gv‡P©›U e¨vsK banking operations namely, issue management, and
wn‡m‡e c~Y© Kvh©µg cwiPvjbv Kiv hvi g‡a¨ Bmy¨ g¨v‡bR‡g›U, AvÛvi underwriting and portfolio management. The authorized
ivBwUs Ges ‡cvU©‡dvwjI g¨v‡bR‡g›U Ab¨Zg| SIL Gi Aby‡gvw`Z capital of this subsidiary is Tk. 5,000 million and paid up
I cwi‡kvwaZ g~ja‡bi cwigvY h_vµ‡g 5,000 wgwjqb UvKv Ges capital is Tk. 2,000 million. At present, SIL is operating
through 02 (two) branches in Dhaka.
2,000 wgwjqb UvKv| eZ©gv‡b SIL Gi XvKvq 2wU kvLv i‡q‡Q|

†mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI), BDGmG Sonali Exchange Co. Inc. (SECI), USA

A subsidiary company incorporated on 4 April,

wbDBq‡K©i †÷U wWcvU©‡g‡›Ui AvBb ‡gvZv‡eK 4 GwcÖj, 1994 Zvwi‡L 1994 under the laws of the state of New York, USA,
†mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) GKwU †Kv¤úvbxiƒ‡c commenced its operations as an International
cÖwZwôZ nq| GwU 12 wW‡m¤^i 1994 ZvwiL †_‡K AvšÍRv© wZKfv‡e A_© Money Remitter from 12 December, 1994. At
†cÖiYKvix cÖwZôvb wn‡m‡e Kvh©µg ïiæ K‡i| eZ©gv‡b hy³iv‡óªi 5wU present, Sonali Exchange Co. Inc. has 03 branches
and 07 booths in 5 states in the USA. The paid up
A½iv‡R¨ Gi 03wU kvLv Ges 07wU ey_ i‡q‡Q| Gi cwi‡kvwaZ g~jab capital of this subsidiary is US$ 950,000.
9,50,000 gvwK©b Wjvi|
†mvbvjx evsjv‡`k (BD‡K) wjwg‡UW Sonali Bangladesh (UK) Limited
A_© †cÖiY I Ab¨vb¨ Avw_©K †mev cÖ`v‡bi jÿ¨ wb‡q †mvbvjx †UªW With a view to remitting money and providing other
GÛ wdb¨vÝ (BD‡K) wjwg‡UW bv‡g GKwU †Kv¤úvbx 30 Ryb financial services to its customers, a company under
the name and style Sonali Trade and Finance (UK)
1999 mv‡j cÖwZwôZ nq| GwU cÖwZwôZ nq BD‡K †Kv¤úvbxR

ANNUAL REPORT 2023 65

SONALI BANK PLC

AvBb 1985 Abyhvqx| cieZ©x‡Z 7 wW‡m¤^i 2001 ZvwiL †_‡K Limited was incorporated on 30 June 1999 as an associate
under the UK Companies Act 1985. Subsequently the
wdbvwÝqvj mvwf©‡mm A‡_vwiwU, BD‡K KZ©K„ †Kv¤úvbxwU‡K e¨vswKs
company was allowed to commence its function as a bank
Kvh©µg Kivi Aby‡gv`b †`q| Gi bvg cwieZ©b K‡i cieZ©x‡Z from 7 December 2001 by the Financial Services Authority
†mvbvjx e¨vsK (BD‡K) wjwg‡UW Kiv nq| cybM©V‡bi gva¨‡g of UK. The name was changed later on as Sonali Bank
MYcÖRvZš¿x evsjv‡`k miKvi Gi gvwjKvbvq 51% †kqvi Ges (UK) Ltd. and restructured the ownership of the company
having 51% share capital in favor of the Government of
†mvbvjx e¨vsK wcGjwm gvwjKvbvq 49% †kqvi i‡q‡Q| cybivq
People’s Republic of Bangladesh and remaining 49% by
16 AvMó 2022 ZvwiL n‡Z ‡mvbvjx e¨vsK (BD‡K) wjwg‡UW Gi Sonali Bank PLC. Since 16 August 2022 followed by the
†evW© mfvi wm×všÍ Ges †kqvi ‡nvìviM‡Yi m¤§wZ‡Z †mvbvjx e¨vsK decision of Sonali Bank (UK) Limited and the consent of
(BD‡K) wjwg‡UW‡K cybM©wVZ K‡i †mvbvjx evsjv‡`k (BD‡K) the shareholders, by passing Special Written Resolution
wjwg‡UW bv‡g GKwU c„_K mËv MVb Kiv nq| †mvbvjx evsjv‡`k Sonali Bank (UK) Limited has been restructured into a
separate entity Namely Sonali Bangladesh (UK) Limited
(BD‡K) wjwg‡UW hy³iv‡R¨i ‡iwR‡óªkb Ae †Kv¤úvwbR di Bsj¨vÛ (SBUK). Sonali Bangladesh (UK) Limited (SBUK) is registered
GÛ I‡qjm Z_v BD‡K †Kv¤úvwbR nvD‡R wdbvwÝqvj Bbw÷wUDkb in the UK Companies House (Registrar of Companies for
(GdAvB) GÛ †UªW GbwUwU wn‡m‡e wbewÜZ nq| G‡ÿ‡Î c~‡e©i England and Wales) as a Financial Institution (FI) & Trade
†iwR‡÷ªkb b¤^i Ges †kqvi Gi gvwjKvbv AcwiewZ©Z ivLv nq| Entity. The registration number and shareholding structure
of SBUK remained unchanged. The paid up capital of
†mvbvjx evsjv‡`k (BD‡K) wjwg‡UW Gi cwi‡kvwaZ g~ja‡bi
Sonali Bangladesh (UK) is GBP 61.46 million. The main
cwigvY 61.46 wgwjqb weªwUk cvDÛ| GB †Kv¤úvbxi g~j KvR functions of the associate are to advise, negotiate, confirm
n‡jv †mvbvjx e¨vsK wcGjwm Ges evsjv‡`kx Ab¨vb¨ e¨vs‡Ki Gjwm and provide discount facilities against L/Cs originating
we‡ji GWfvBwRs, †b‡Mvwk‡qU, Kbdvg© Ges wWmKvD›U myweav cÖ`vb from SBPLC and other Bangladeshi banks. The company
also handles remittance business for Sonali Bank and other
Kiv| GwU †mvbvjx e¨vsKmn Ab¨vb¨ evsjv‡`kx e¨vs‡Ki ˆe‡`wkK
banks of Bangladesh.
†iwg‡UÝ e¨emv cwiPvjbvq mnvqZv K‡i _v‡K|
†mvbvjx †c (BD‡K) wjwg‡UW Sonali Pay (UK) Limited
Sonali Pay (UK) Limited (SPUK), a 100% Subsidiary
†iwgU¨vÝ e¨emv‡qi Rb¨ A‡_vivBRW †c‡g›U Bb÷ªvKkvb
of Sonali Bank PLC, has been established as an
(GwcAvB) wn‡m‡e †mvbvjx e¨vs‡Ki kZfvM gvwjKvbvaxb Authorized Payment Instruction (API) for remittance
1.00 wgwjqb cwi‡kvwaZ g~ja‡bi †mvbvjx †c (BD‡K) bvgxq business in the UK and duly registered in the UK
†Kv¤úvbx BD‡K †Kv¤úvbxR nvD‡R 28 GwcÖj 2022 Zvwi‡L Companies House dated 28 April 2022 comprising
wbeÜb Kiv nq| paid up capital of GBP 1.00 (One) million.

G‡mvwm‡qUm& Ae †mvbvjx e¨vsK wcGjwm Associates of Sonali Bank PLC

†mvbvjx Bb‡U‡j± wjwg‡UW Sonali Intellect Limited

†mvbvjx Bb‡U‡j± wjwg‡UW †Kv¤úvbx AvBb, 1994 Abymv‡i 25 Sonali Intellect Limited was incorporated in Bangladesh
as a private limited company on 25 January 2012
Rvbyqvix 2012 ZvwiL †_‡K evsjv‡`‡k cÖvB‡fU wjwg‡UW †Kv¤úvbx under the Companies Act, 1994. The company
wn‡m‡e ZvwjKvfy³ nq| †Kv¤úvbxwU 1 †deªæqvix 2012 †_‡K commenced its business operations on 1 February,
e¨emvwqK Kvh©µg kyiæ K‡i| Gi 51% †kqv‡ii gvwjKvbv aviY 2012. The 51% share capital of the company is owned
K‡i †cvjvwik wdbvwÝqvj †UK‡bvjwRm wjwg‡UW, fviZ I 35% by the Polaris Financial Technologies Ltd. India, 35%
by Sonali Bank PLC and the remaining 10% & 4% by
†kqv‡ii gvwjKvbv †mvbvjx e¨vsK wcGjwm Ges Aewkó 10% I
Bangladesh Commerce Bank Ltd. And Pantho Soft Ltd.
4% †kqv‡ii gvwjKvbv h_vµ‡g evsjv‡`k Kgvm© e¨vsK wjwg‡UW respectively. The principal activities of the company
Ges cvš’ mdU wjwg‡UW Gi| GB †Kv¤úvbxi cÖavb KvR n‡jv are to customize, enhance, modify and implement
evsjv‡`‡ki e¨vsKmg~‡n Bb‡U‡j± †Kvi e¨vswKs mwjDkb (CBS) intellect Core Banking Solution (CBS) 10.0 software in
banks in Bangladesh.
e¨envi Dc‡hvMx, DbœZ, m¤úv`b Kiv Ges ev¯Íevqb Kiv|
b¨vkbvj †bUIqvK© National Network

miKvwi bxwZ ev¯Íevqb Ges †`‡ki A_©‰bwZK Dbœq‡bi Rb¨ SBPLC has established branch network throughout
complying with the government policy and for the economic
†mvbvjx e¨vsK wcGjwm mviv †`‡k Zvi kvLv †bUIqvK© cÖwZôv development of the country. Geographically all important
K‡i‡Q| †fŠMwjKfv‡e †`‡ki mKj ¸iæZ¡c~Y© ¯’vbmn ‡`‡ki locations including all Upazillas, important places as well as
mKj Dc‡Rjv, `~ieZ©x MÖvgxY Rbc‡` †mvbvjx e¨vs‡Ki remote rural areas of the country have been brought under
kvLv †bUIqvK© we¯Í„Z| `yÕwU ˆe‡`wkK kvLvmn 2023 mv‡j the network coverage of the Bank. With the addition of two

66 ANNUAL REPORT 2023

†mvbvjx e¨vs‡Ki †gvU kvLvi msL¨v 1,232wU| 2wU ˆe‡`wkK overseas branches, total number of branches increased to
1,232 in 2023. Along with 2 foreign branches 727 branches
kvLvmn †`‡ki Af¨šÍ‡i MÖvgxY Rbc‡` 727wU Ges are located in rural areas and 503 branches in urban areas.
503wU kvLv kni A‡j Aew¯’Z| cÖavb Kvh©vjqmn 88wU The overall functions of the branches are supervised and
cªkvmwbK Kvh©vj‡qi gva¨‡g kvLvmg~‡ni mvwe©K Kvh©µg monitored by 88 administrative offices. The administrative
Z`viwK Ges cwiPvjbv Kiv nq| cÖavb Kvh©vj‡qi Aax‡b structure comprises 47 divisions under Head Office in Dhaka;
18 General Managers Offices Dhaka-Central, Dhaka-North,
47wU wWwfkbmn, XvKv-†m›Uªvj, XvKv-DËi, XvKv-`wÿY, Dhaka-South, Chittagong, Khulna, Rajshahi, Barisal, Sylhet,
PÆMÖvg, Lyjbv, ivRkvnx, ewikvj, wm‡jU, iscyi, dwi`cyi, Rangpur, Faridpur, Mymensingh, Cumilla, Dinajpur, Bogura
gqgbwmsn, Kzwgjøv, w`bvRcyi, e¸ov I †bvqvLvjx‡Z 18wU and Noakhali; 69 Principal Offices located at different parts
wRGg Awdm, 69wU wcÖwÝcvj Awdm Gi mgš^‡q cÖkvmwbK of the country.
KvVv‡gv MwVZ|
AvšÍR©vwZK †bUIqvK© International Network
cÖevmx evsjv‡`kx‡`i ‡iwgU¨vÝ mviv †`‡k Zv‡`i SBPLC takes various initiatives to provide direct banking
DcKvi‡fvMx‡`i wbKU †cÖi‡Yi †ÿ‡Î †mvbvjx e¨vsK wcGjwm services and channel foreign remittance from the
expatriate Bangladeshis. The Bank’s subsidiary Sonali
wewfbœ ai‡Yi D‡`¨vM MÖnY K‡i‡Q| e¨vs‡Ki mn‡hvMx cÖwZôvb Bangladesh (UK) Limited and its 02 branches facilitate
†mvbvjx e¨vsjv‡`k (BD‡K) wjwg‡UW Zvi `yBwU kvLv wb‡q foreign trade and remittance channeling business.
hy³iv‡R¨ ˆe‡`wkK evwYR¨mn ˆe‡`wkK gy`ªv †cÖi‡Y mnvqZv Its subsidiary in USA, Sonali Exchange Company
K‡i Avm‡Q| GQvov hy³iv‡óª †mvbvjx G·‡PÄ †Kv¤úvbx Incorporated (SECI) with its 03(three) branches and 07
(seven) booths assists in channeling remittance to the
BbK‡c©v‡i‡UW (SECI) 03wU kvLv I 07wU ey_ wb‡q ˆe‡`wkK home country safely and swiftly. The Bank has also
gy`ªv wbivc‡` Ges `ªæZZg mg‡qi g‡a¨ †cÖi‡Y ¸iæZ¡cyY© f~wgKv Taka Drawing Arrangement (TDA) with other banks
cvjb K‡i Avm‡Q| Ab¨vb¨ e¨vsK Ges G·‡PÄ nvD‡Ri mv‡_ and exchanges so that people living abroad can send
†mvbvjx e¨vs‡Ki Taka Drawing Arrangement (TDA) their money through proper banking channel to the
beneficiaries in the country. Currently, there are 85
Av‡Q hv‡Z K‡i cÖevmx evsjv‡`kxiv Zv‡`i †cÖwiZ A_© e¨vswKs Taka Drawing Agency (TDA) with Banks and exchange
P¨v‡b‡ji gva¨‡g †`‡k Zv‡`i DcKvi‡fvMx‡`i wbKU †cÖiY companies of 14 countries scattered across the world.
Ki‡Z cv‡ib| eZ©gv‡b we‡k¦i 14wU †`‡ki e¨vsK/G·‡PÄ Besides, the Bank has extended customer services by
†Kv¤úvwbi mv‡_ 85wU Taka Drawing Arrangement establishing correspondent relationship with a total of
569 branches/ subsidiaries located in 93 countries in the
(TDA) Av‡Q| GQvov, K‡imc‡Û›U m¤ú‡K©i gva¨‡g we‡k¦i world. The correspondent relationship has significantly
93wU †`‡ki 569wU kvLv/mn‡hvMx ms¯’vi Øviv ˆe‡`wkK gy`ªv increased the Bank’s foreign exchange and trade
†`‡k †cÖi‡Yi e¨e¯’v Av‡Q| GB m¤ú‡K©i gva¨‡g e¨vs‡Ki business simultaneously.
ˆe‡`wkK gy`ªv Ges ˆe‡`wkK evwYR¨ e„w× cv‡”Q|
Avw_©K AšÍf©yw³KiY Financial Inclusion

miKv‡ii Avw_©K AšÍf©yw³KiY cÖKí Z¡ivwš^Z Kivi With a view to assisting the government in accelerating financial
inclusion program, SBPLC is working relentlessly to bring
Kv‡R mnvqZvi j‡ÿ¨ †mvbvjx e¨vsK wcGjwm Zvi wekvj
simple, poor and unbanked people under the coverage of
†bUIqv‡K©i gva¨‡g †`‡ki kni I MÖvgxY Rbc‡`i mvaviY, banking system with its enormous branch network in rural and
Mwie Ges e¨vswKs e¨e¯’vi evB‡ii RbMY‡K e¨vswKs †mevi urban areas. In SBPLC, total number of accounts under financial
AvIZvq Avbq‡bi Rb¨ wbijmfv‡e KvR K‡i hv‡”Q| 2023 inclusion program stands at 6,819,579 in 2023. Among them,
mv‡j e¨vs‡K Avw_©K AšÍf©yw³KiY cÖK‡íi AvIZvq †gvU the number of farmer’s accounts has reached to 1,541,939
wnmve msL¨v `uvwo‡q‡Q 68,19,579 wU| Gi g‡a¨ gvÎ 10 at the end of 31 December, 2023 by encouraging opening
UvKv Rgv`v‡bi gva¨‡g †Lvjv K…lK‡`i wnmve msL¨v n‡jv accounts of the farmers at an initial deposit of Tk. 10.00. As of
31 December 2023, the number of freedom fighters accounts,
15,41,939wU| 31 wW‡m¤^i 2023 ZvwiL wfwËK gyw³‡hv×v
school going student’s accounts and accounts under social
wnmve, ¯‹zj QvÎ/QvÎx‡`i wnmve Ges mvgvwRK wbivcËv safety net programs are 324,168; 247,514 and 3,154,877
†e÷bxi AvIZvq wnmve msL¨v h_vµ‡g 3,24,168wU; respectively. A large segment of the population particularly the
2,47,514wU Ges 31,54,877wU| †`‡ki RbM‡Yi GKwU rural poor people, poor farmers, women entrepreneurs and
e„nr Ask we‡kl K‡i MÖvgxY Mwie RbMY, Mwie K…lK, bvix garments workers have got the access to banking services
D‡`¨v³v, †cvkvK kÖwgK G e¨vs‡Ki gva¨‡g e¨vswKs †mevi through SBPLC. Moreover, various innovative deposit products
my‡hvM cv‡”Q| AwaKš‘, myweav ewÂZ RbM‡Yi GKwU eo with lucrative interest rate and credit facilities with a relaxing rate
have been successfully launched to attract deprived segment
As‡ki Rb¨ AvKl©Yxq my‡`i AvgvbZ ‡cÖvWv±m& Ges FY ¯‹xg of population. Details have been presented in the “Report on
Pvjy Kiv n‡q‡Q hv Financial Inclusion cÖwZ‡e`‡b wek`fv‡e Financial Inclusion”.
Zz‡j aiv n‡q‡Q|

ANNUAL REPORT 2023 67

SONALI BANK PLC

Z_¨ cÖhyw³ Ges AbjvBb e¨vswKs †mevmg~n Information Technology and Online Banking Services

†mvbvjx e¨vsK wcGjwm mvd‡j¨i mv‡_ eZ©gv‡b evsjv‡`‡ki mePvB‡Z eo Sonali Bank PLC has successfully turned itself into the
largest online Bank in Bangladesh. Since inauguration
AbjvBb e¨vs‡K iƒcvšÍwiZ n‡q‡Q| 1989 mv‡j A‡Uv‡gk‡bi hvÎv ïiæi ci of the journey towards automation in 1989, Sonali Bank
†_‡K G ch©šÍe¨vs‡Ki ¯’vbxq 1230 wUi mKj kvLvq Bb‡U‡j± CBS AšÍfwz ©³i has become the largest online Bank in Bangladesh by
gva¨‡g Ab-jvBb Kvh©µg Pvjy K‡i evsjv‡`‡ki mePvB‡Z eo AbjvBb rendering online services through installing intellect CBS
software in all of its 1230 domestic branches. Moreover,
e¨vs‡K iƒcvšÍwiZ n‡q‡Q| GQvov m¤úªwZ MªvnK‡`i myweavi K_v we‡ePbv considering customer satisfaction, mobile apps ’’Sonali
K‡i ÔÔ†mvbvjx B-Iqv‡jUÕÕ, ÔÔ†mvbvjx B-†mevÕÕ, ÔÔweKvkÕÕ Gi gva¨‡g †jb‡`b e-wallet’’, ’’Sonali e-Sheba’’, and transaction with ’’bKash’’
Pvjy Kiv n‡q‡Q| Av‡iv Av‡Q GBPAviGgGm mdUIq¨vi, AviGgGm cøvm, has been introduced. The Bank also introduced HRMS
software, RMS Plus, NPSB, RTGS, BACH, BEFTN, Online
GbwcGmwe, AviwUwRGm, e¨vP, weBGdwUGb, Ab-jvBb miKvwi †jb‡`b, Govt. Transaction, Tax Software, Sonali Sheba, Pension
U¨v· mdUIq¨vi, †mvbvjx †mev, †cbkb cÖ`vb mdUIq¨vi, wmwmwUwf cÖwZ¯’vcb paying Software, CCTV installation etc. At present, 1230
CBS branches have been operating SMS banking service.
BZ¨vw`| eZ©gv‡b mKj kvLvq CBS Gi gva¨‡g MÖvnK‡`i e¨vswKs myweav cÖ`vb
Registered customers can get their account transaction
Kiv n‡”Q| wbewÜZ MÖvnKMY Zv‡`i wnmv‡ei †jb‡`b Ges e¨vjvÝ msµvšÍ Z_¨ and balance through SMS. These technology based
†gvevB‡j SMS Gi gva¨‡g Rvb‡Z cv‡ib| G mKj cÖhwy ³ wbf©iZv e¨vsKwU‡K solutions have placed our Bank in a reputable position
in terms of technological progression in the banking
e¨vswKs Lv‡Z cÖhwy ³MZ DbœwZi myL¨vwZi Avm‡b AwawôZ K‡i‡Q| industry.

Kj †m›Uvi Call Center

MÖvnK‡`i mve©ÿwYK e¨vswKs †mev cÖ`v‡bi wbwgË ivóªvqË¡ Sonali Bank has become the first bank among the
e¨vsKmg~‡ni g‡a¨ me©cÖ_g e¨vsK wn‡m‡e †mvbvjx e¨vsK state-owned banks to launch Call Center on 15th March
2023 and is providing round the clock banking services
weMZ 15 gvP© 2023 Zvwi‡L Kj †m›Uvi Pvjy K‡i| to the customers. Sonali Bank Call Center number is
e¨vs‡Ki Kj †m›Uv‡ii b¤^i 16639 (we‡`k n‡Z +88 16639 (from abroad +88 09610016639). At present,
09610016639)| eZ©gv‡b 40 Rb G‡R‡›Ui gva¨‡g 24/7 call center operations are running through the clock
wZb wkd‡U Kj ‡m›Uv‡ii Kvh©µg Pjgvb i‡q‡Q| by 40 agents.

†mvbvjx B †mev I †mvbvjx B-Iqv‡jU Sonali eSheba and Sonali e-Wallet

2020 mv‡j †KvwfW 19 AwZgvwi PjvKvjxb mg‡q †mvbvjx During the COVID 19 pandemic in 2020, for the
e¨vsK wcGjwm †`k I RbM‡Yi †jb‡`‡bi myweav‡_© ÔÔ†mvbvjx welfare of the country and the mass people, Sonali
Bank introduced ’’Sonali eSheba’’ through which the
B-†mevÕÕ Pvjy K‡i hvi gva¨‡g MÖvnKiv Lye mn‡R N‡i e‡mB clients can open accounts even from their home.
GKvD›U Lyj‡Z I cwiPvjbv Ki‡Z cv‡i| GiB avivevwnKZvq As a continuous process, the bank also introduced
cieZ©x‡Z ÔÔ†mvbvjx B-Iqv‡jUÕÕ Pvjy Kiv nq| Gi gva¨‡g ’’Sonali e-Wallet’’ which helps the clients to make
MÖvnKiv †h‡Kvb mgq †h‡Kvb wnmv‡e †jb‡`bmn wewfbœ wej, transactions to any accounts, pay the bills and taxes
etc.
cixÿvi wd, U¨v·mn wewfbœ †jb‡`b m¤úbœ Ki‡Z cv‡i|
Blaze Blaze

`wÿY Gwkqvi g‡a¨ cÖ_g †`k wn‡m‡e evsjv‡`k cÖevmx‡`i Aiming to attract remittances, Sonali Bank launched
Rb¨ Blaze bvgK GKwU µm eW©vi †c‡g›U †bUIqvK© Pvjy Kiv a cross border payment network called “Blaze”.
Through Blaze, expatriates can send money from
n‡q‡Q hvi gva¨‡g cÖevmxiv we‡k¦i †h‡Kv‡bv †`k n‡Z gvÎ 5 abroad to accounts of Sonali Bank and other 36
†m‡K‡Û †mvbvjx e¨vsKmn †gvU 36wU e¨vs‡Ki wnmv‡e A_© banks in just 5 seconds.
†cÖiY Ki‡Z cvi‡Qb|

Skrill Skrill
wd«j¨vÝvi‡`i AvnwiZ A_© mn‡R I wbivc‡` ‡`‡k Avbq‡bi To receive the earnings of the Freelancers easily and
j‡ÿ¨ mv¤úªwZK mg‡q hy³ivR¨wfwËK †Møvevj Iqv‡jU Skrill safely, Sonali Bank PLC has made an agreement with
an UK based global wallet “Skrill”. This Channel has
Gi mv‡_ Pzw³ m¤úv`b Kiv n‡q‡Q| wd«j¨vÝvi‡`i wbKU GB widely been appreciated by the Freelancers and they
Skrill †ek mgv`„Z n‡q‡Q Ges Zviv G P¨v‡b‡ji gva¨‡g are using it quite easily.
wbqwgZ A_© †cÖiY Ki‡Qb|

68 ANNUAL REPORT 2023

†mvbvjx ‡c‡g›U †MUI‡q Sonali Payment Gateway (SPG)

e¨vs‡Ki wbR¯^ mdUIq¨vi †mvbvjx †c‡g›U †MUI‡q e¨envi Students/parents of more than 400 schools and
colleges and clients of different government/
K‡i Pvi kZvwaK ¯‹yj K‡j‡Ri wkÿv_©x/ AwffveKMY Ges private organizations have been paying tuition
miKvwi/†emiKvwi wewfbœ cÖwZôv‡bi MÖvnKMY N‡i e‡m fee/ fees/ charges through online from home
AbjvB‡b dvÛ U&ªvÝdvi (†mvbvjx e¨vs‡Ki wnmveavix), using the Bank’s own software “Sonali Payment
†mvbvjx e¨vs‡Ki †WweU/†µwWU/wcÖ‡cBW KvW©, †h‡Kv‡bv Gateway” by transferring funds (Sonali Bank
account holders), Sonali Bank Debit/Credit/
e¨vs‡Ki †WweU/†µwWU KvW©, †b·vm KvW©, weKvk, i‡KU, Prepaid Card, Debit/Credit Card of Any Bank,
BDK¨vk BZ¨vw` †c‡g›U c×wZi gva¨‡g †eZb, wd, PvR© Nexus Card, bKash, Rocket, Ucash etc. payment
cwi‡kva Ki‡Z mÿg n‡”Qb| methods.

AbjvBb wWwWwc †c‡g›U wm‡÷g Online DDP Payment System

†mvbvjx e¨vsK wcGjwm KZ©K

„ evsjv‡`k miKvix Kj¨vY †ev‡W©i Sonali Bank PLC has introduced an automated system
called Online DDP Payment System since November
Aax‡b jÿvwaK miKvix Kg©Pvix‡`i Kj¨vb fvZv (wWwWwc)
2022 to pay the Welfare Allowance (DDP) of Government
cwi‡kva Gi j‡ÿ¨ b‡f¤^i 2022 n‡Z AbjvBb wWwWwc †c‡g›U employees under the Bangladesh Employees Welfare
wm‡÷g bv‡g GKwU ¯^qswµq †m‡÷g Pvjy Kiv n‡q‡Q| Board.

miKvwi Pvjvb c×wZ Government Transaction System (GTS)

miKvwi †jb‡`b wm‡÷g (GTS) bvgxq B›Uvi‡bU wfwËK “Government Transaction System” GTS software/
bZzb PvjyK…Z GKwU mdUIq¨vi Gi gva¨‡g e¨vs‡Ki 735wU program has been introduced in 735 Treasury branches
of the Bank to capture all government transactions. To
kvLvq miKvwi mKj †jb‡`b m¤úbœ Kiv n‡”Q| ¯^”QZv I
ensure transparency and accountability, the Bank has
Revew`wnZv wbwðZ Kivi Rb¨ m¤úªwZ e¨vs‡K ÔAbjvBb also introduced “Online Chalan Verification”.
Pvjvb †fwiwd‡KkbÕ Pvjy Kiv n‡q‡Q|
¯^qswµq Pvjvb c×wZ Automated Challan System (ACS)

†mvbvjx e¨vs‡Ki mKj kvLvq ¯^qswµq Pvjvb c×wZ (Automated Automated Challan System (ACS) has been introduced
Challan System-ACS) G-Pvjvb Gi gva¨‡g Pvjvb MÖnY Kvh©µg Pvjy in all branches of the Bank. Through this system,
deposited amount of clients are settled realtime and
Kiv n‡q‡Q| Gi gva¨‡g MÖvn‡Ki A_© Real-time Gross Settlement reflected in Government’s Treasury Single Account
(RTGS) cÖhwy ³ e¨envi K‡i wi‡qjUvBg wfwˇZ miKv‡ii Treasury (TSA) using the Real-time Gross Settlement (RTGS)
technology. As a result, no mismatch of accounts
Single Account (TSA) †Z Rgv nq Ges miKvwi wnmv‡e cÖwZdwjZ
is occurred between the National Board of Revenue
nq| d‡j RvZxq ivR¯^ †evW© Ges A_© wefv‡Mi g‡a¨ wnmv‡ei Awgj and Finance Division.
_v‡K bv|
evsjv‡`k B‡jKUªwbK dvÛ UªvÝdvi †bUIqvK© (weBGdwUGb) Bangladesh Electronic Fund Transfer Network (BEFTN)

e¨vs‡Ki mKj kvLvq mdjfv‡e evsjv‡`k B‡jKUªwbK dvÛ The Bank has successfully implemented Bangladesh Electronic
Fund Transfer Network (BEFTN) system in all the branches.
UªvÝdvi †bUIqvK© (BEFTN) wm‡÷g Pvjy i‡q‡Q|

†iwgU¨vÝ g¨v‡bR‡g›U wm‡÷g Remittance Management SystemPlus(RMSPlus)

†iwgU¨vÝ g¨v‡bR‡g›U wm‡÷g (RMSplus) e¨vs‡Ki wbR¯^ A web based software, developed in-house named
“Remittance Management SystemPlus (RMSPlus)”, has
D™¢vweZ GKwU I‡qe mvBU wfwËK mdUIq¨vi| GwU eZ©gv‡b been introduced in 1230 branches for receiving foreign
†`kxq 1230wU kvLvq ‰e‡`wkK I †`kxq †iwgU¨vÝ MÖnY/ remittance and receiving and making payment of Inland/
cÖ`v‡bi †iwgU¨vÝ Avbq‡bi gva¨g wn‡m‡e e¨eüZ n‡”Q| Local remittance.

ûB‡mj †eøvqvi Whistle Blower

m¤úªwZ †mvbvjx e¨vsK wcGjwm evsjv‡`‡ki e¨vswKs †m±‡i me©c_Ö g Recently Sonali Bank PLC has introduced “Whistle
ÒûB‡mj †eøvqvi cwjwmÓ cÖeZ©b K‡i| e¨vs‡Ki mKj Kg©KvÛ Blower Policy’’ for the first time in the banking history of
Bangladesh. Certainly it is very important and bold decision
`ybx© wZgy³ ivLv Ges ï×vPvi cÖwZôvq G cwjwm AZ¨šÍ ¸iæZ¡cY~ ,©

ANNUAL REPORT 2023 69

SONALI BANK PLC

mg‡qvc‡hvMx Ges mvnmx GKwU c`‡ÿc| ûB‡mj †eøvqvi cwjwm in implementing national integrity and for corruptionless
banking activities. An Ombudsman has important role in
ev¯Íevq‡b b¨vqcvj ¸iæZ¡cY~ © f~wgKv cvjb K‡i _v‡Kb|
implementing Whistle Blower Policy properly.

MÖxb wdb¨vÝ Green Finance

Rjevqy cwieZ©b me©‡kl `k‡K Sywu Kc~Y© Riæwi wel‡q cwiYZ n‡q‡Q As climate change has become the burning question
over the last decade, management is fully aware of
weavq †mvbvjx e¨vsK e¨e¯’vcbv G wel‡q mg¨Kfv‡e mRvM i‡q‡Q
the risk and also taking necessary steps to have an
Ges cÖZ¨vwkZ djvd‡ji Rb¨ cÖ‡qvRbxq e¨e¯’v MÖnY K‡i‡Q| optimistic outcome on this issue. Complying with
evsjv‡`k e¨vs‡Ki MÖxb e¨vswKs bxwZgvjv cwicvjb K‡i †mvbvjx Bangladesh Banks’ green banking policy, SBPLC is
e¨vsK cwi‡ek evÜe cÖK‡í A_©vqb Ki‡Q hv‡Z cwi‡ekMZ fvimvg¨ financing environment friendly projects (such as
renewable energy projects, clean water supply projects,
weivR K‡i| c‡ivÿfv‡e MÖxb dvBb¨v‡Ýi †ÿ‡Î e¨vsK Ggb me
waste treatment plant, solid waste disposal plant etc.) to
cÖK‡í A_©vqb Ki‡Q †hLv‡b BwUwc Ges †mŠi we`¨yr i‡q‡Q| GQvov ensure ecological balance. For indirect Green Finance,
e¨vs‡Ki wbR¯^ D‡`¨vM Ò†mvbvjx Av‡jvÓ Gi gva¨‡g cvewjK I Bank is funding such projects which have ETP and
cÖvB‡fU †m±‡ii cÖKímgy‡n mn‡hvwMZv K‡i Avm‡Q| B‡Zvg‡a¨ Solar Panel. “Sonali Alo” is the Bank’s initiative intended
to align its efforts with the initiatives being undertaken
e¨vs‡Ki ¯’vbxq 1230wU kvLvi me¸‡jv‡ZB Bb‡U‡j± Ò†Kvi
by both public and private sectors. Moreover, CBS has
e¨vswKs mwjDkb (CBS)Ó ev¯Íevqb K‡i‡Q| †mvbvjx e¨vsK wcGjwm been installed in all 1230 domestic branches of the
cwi‡ekMZfv‡e ÿwZKi cÖKímgy‡n A_©vqb‡K wbiærmvwnZ K‡i| bank. Sonali Bank is ethically not bound to finance to
any environmentally harmful project.

Bmjvgx e¨vswKs Islamic Banking

mv¤úªwZK mg‡q AwR©Z RbwcÖqZvi Kvi‡Y †mvbvjx e¨vsK SBPLC is giving priority on Islamic Banking because
of its recent popularity in the banking sector. Primarily
wcGjwm Bmjvgx e¨vswKs‡K †ek ¸iæZ¡ w`‡”Q| 29 Ryb 2010 Zvwi‡L
Islamic Banking was launched successfully with separate
cÖv_wgKfv‡e 5wU kvLvq DB‡Ûvi gva¨‡g Bmjvgx e¨vswKs Kvh©µg windows in 5 branches on 29 June 2010. Subsequently,
Pvjy Kiv nq| cieZ©x‡Z e¨vs‡Ki kixqvn mycvifvBRix KwgwU as per decision of Shariah Supervisory Committee of the
KZ©K„ 64wU †Rjvq Bmjvgx e¨vswKs †mev Qwo‡q †`qvi wm×všÍ Bank, Islamic banking window has been launched in
†gvZv‡eK evsjv‡`k e¨vs‡Ki Aby‡gv`b mv‡c‡ÿ 2019 mv‡j 6wU another 6 branches in 2019 and 47 branches in 2020
kvLvq Ges 2020 Av‡iv 47wU kvLvq G Kvh©µg Pvjy Kiv nq| with the approval of Bangladesh Bank. At present, 58
eZ©gv‡b e¨vs‡Ki 58wU kvLvq ÓAvevwej BmjvwgK †Kvi e¨vswKs Islamic windows of the Bank are running through “Ababil
Islamic Core Banking Solution”.
mwjDkbÓ Gi gva¨‡g Bmjvgx e¨vswKs Kvh©µg cwiPvwjZ n‡”Q|
Credit Rating
†µwWU †iwUs
evsjv‡`k e¨vs‡Ki wb‡`©kbv Abyhvqx †mvbvjx e¨vsK wcGjwm As per Bangladesh Bank’s mandatory requirement,
Gi †µwWU †iwUs Kvh©vw` †µwWU †iwUs Bbdi‡gkb mvwf©‡mm the credit rating of SBPLC was done by the Credit
Rating Information and Services Limited (CRISL) on
wjwg‡UW KZ…©K m¤úbœ Kiv n‡q‡Q| me©‡kl 31 wW‡m¤^i the audited Balance Sheet of 31 December, 2022
2022 ZvwiL wfwËK e¨vs‡Ki wbixwÿZ Avw_©K weeiYxmg~n I and other relevant information. The rating agency
Ab¨vb¨ Z‡_¨i wfwˇZ GB †iwUs m¤úbœ Kiv n‡q‡Q| DwjøwLZ awarded the following ratings:
†iwUs G‡RwÝ KZ…©K wb‡¤œv³ †iwUs cÖ`vb Kiv n‡q‡Q t
Ryb 2024 ch©šÍ Ryb 2023 ch©šÍ Upto June 2024 Upto June 2023
ch©‡eÿb †iwUs `xN© ¯^í `xN© Surveillance Rating Long Short Long Short
†gqv` †gqv` †gqv` ¯^í †gqv` Term Term Term Term
miKvwi c„ô‡cvlK e¨vsK wn‡m‡e AAA ST-1 AAA ST-1 As Government AAA ST-1 AAA ST-1
Supported Bank
cÖvB‡fU Kgvwk©qvj e¨vsK wn‡m‡e A+ ST-2 A+ ST-2 As Private Commercial Bank A+ ST-2 A+ ST-2
Ae¯’v w¯’wZkxj w¯’wZkxj Outlook Stable Stable

cl©` Ges Ab¨vb¨ KwgwUi mfvmg~n Board and Other Committee Meetings

2023 mv‡j e¨vs‡Ki cwiPvjbv cl©‡`i †gvU 49wU cl©` mfv A total of 49 Board meetings of the Bank were held during
the year 2023. Besides, 06 meetings of Board Executive
AbywôZ n‡q‡Q| GQvov, 2023 mv‡j cwiPvjbv cl©‡`i wbe©vnx
Committee, 10 meetings of Board Audit Committee, 08
KwgwUi 06wU mfv, cl©` wbixÿv KwgwUi 10wU mfv, cl©` meetings of Board Risk Management Committee and 01
SuzwK e¨e¯’vcbv KwgwUi 8wU mfv Ges kixqvn mycvifvBRix meeting of Shariah Supervisory Committee were held
KwgwUi 01wU mfv AbywôZ n‡q‡Q| during the year under review.

70 ANNUAL REPORT 2023

2023 mv‡j e¨vs‡Ki cÖavb cÖavb Kvh©µgmg~n BANK’S MAIN ACTIVITIES DURING 2023
ev‡RU-2023 Budget 2023

e¨vs‡Ki cwiPvjbv cl©` KZ…K© 2023 mv‡ji evwl©K ev‡RU The Bank’s ‘Annual Budget’ comprising capital budget
(g~jabx ev‡RU I ivR¯^ ev‡RU) Aby‡gvw`Z nq| ivR¯^ I and revenue budget for the year 2023 was approved by
the Board of Directors. The budget provision vis-a-vis
g~jabx ev‡R‡Ui Aax‡b †gvU ev‡RU eivÏ I cÖKZ
… AR©b wb‡¤œ the actual out turn under Capital and Revenue heads are
Dc¯’vcb Kiv n‡jv t shown below:

g~jab I ivR¯^ ev‡R‡Ui cÖK…Z ZzjbvgyjK wPÎ Capital and Revenue Budget along with actual performance
(wgwjqb UvKvq) (Tk. in million)
µtbs 2022 ev‡RU 2022 cÖK…Z Sl. No Budget Head 2023 Budget 2023 Actual
ivR¯^ Revenue
109852.40 119721.60 109852.40 119721.60
01 (K) Avq 01. (a) Income
79852.40 81259.70 (b) Expenditure 79852.40 81259.70
(L) e¨q
g~jab Capital
0.00 0.00 0.00 0.00
02 (K) Avq 02. (a) Income
2770.00 627.80 2770.00 627.80
(L) e¨q (b) Expenditure

wkí A_©vqb INDUSTRIAL FINANCE

A_©‰bwZK jÿ¨gvÎv AR©b Ges miKvwi bxwZ ev¯Íevq‡bi gva¨‡g With a view to achieving economic goals and accelerating
wkí Dbœq‡b MwZ mÂv‡ii j‡ÿ¨ †mvbvjx e¨vsK wcGjwm KZ©K „ the pace of industrial development through implementation
of government policies, SBPLC has disbursed a total of Tk.
2023 mv‡j wkí Lv‡Z †gvU 7,265.40 wgwjqb UvKv †gqv`x
7,265.40 million for term and working capital loans and
I PjwZ g~jab FY weZiY Ges †Ljvcx FY n‡Z 6,249.90 recovered Tk. 6,249.90 million against classified loans in
wgwjqb UvKv Av`vq Kiv nq| bZzb wkí ¯’vcb Ges we`¨gvb 2023. The loans were provided for establishment of new
wkí‡K m¤úªmvi‡Yi j‡ÿ¨ Gme A_©vqb Kiv nq| wkí cÖKí industrial units and also for expansion (BMRE) of existing
potential units to expand the industrial base in the country.
A_©vqb wefv‡Mi gva¨‡g mve©ÿwYKfv‡e wjR dvBbvwÝsmn Ab¨vb¨ Credit facilities/disbursement activities under Industrial Project
FY weZiY cÖwµqv cwiPvjbv Kiv nq| MYcÖRvZš¿x evsjv‡`k Financing Division is being continuously carried out through
miKvi cwiPvwjZ GKgvÎ dvg©vwmDwUK¨vjm †Kv¤úvwb G‡mbwmqvj various Industrial Credit Products/programs including Lease
WªvMm †Kv¤úvwb wjwg‡UW Gi AbyK‡~ j 1,000.00 wgwjqb UvKv Financing. The Bank sanctioned working capital of Tk.
1,000.00 million to Essential Drugs Company Limited, the
PjwZ g~jab FY wn‡m‡e gÄyix †`qv nq| GQvov D‡jøwLZ mg‡q only pharmaceuticals company run by the government
11,749.00 wgwjqb UvKv PjwZ g~jab FY bevqb Kiv nq| Gfv‡e of Bangladesh. Moreover, Tk. 11,749.00 million has been
e¨vsK DwjøwLZ FY gÄy‡ii gva¨‡g 2023 mv‡j D‡jøL‡hvM¨ msL¨K renewed by the Bank during this period. Thus, the bank
†jv‡Ki Kg©ms¯’v‡bi my‡hvM m„wó K‡i‡Q| wkí A_©vq‡bi G mKj has created employment opportunities by sanctioning the
above loans to various industrial units in the year 2023. These
Kvh©µg †`‡ki wRwWwc cÖew„ ׇZ D‡jøL‡hvM¨ f‚wgKv ivL‡e| financing activities will contribute towards GDP growth

.
BBS Cables Financed by SBPLC Tamijuddin Textile Mills Limited Financed by SBPLC

2023 mv‡j wmGgGmGgB A_©vqb Kg©m¤úv`b Performance in CMSME Finance 2023

Sonali Bank PLC emphasizes on CMSME loans to alleviate
evsjv‡`‡ki `vwi`ª `~ixKiY, 2030 mv‡ji g‡a¨ †UKmB A_©‰bwZK poverty, for achieving the Sustainable Development
Dbœq‡bi Afxó jÿ¨ AR©b, †gvU RvZxq Drcv`‡b Ae`vb, Goals (SDGs) within 2030, contributing in the GDP,
Kg©ms¯’v‡bi my‡hvM m„wó Ges bvix cyiæ‡li mgZv I bvixi ÿgZvq‡bi creating employment facility and also for women

ANNUAL REPORT 2023 71

SONALI BANK PLC

j‡ÿ¨ wmGgGmGgB Kg©mP~ xi AvIZvq AMÖvwaKvi wfwˇZ K‡UR, empowerment in Bangladesh. Under this sector, the
Bank extended the loan facility to the Cottage, Micro,
gvB‡µv, ÿz`ª I gvSvwi (wmGgGmGgB) D‡`¨v³v‡`i‡K †mvbvjx Small and Medium (CMSME) entrepreneurs.
e¨vsK wcGjwm mnR k‡Z© FY w`‡q _v‡K|
1) The Government of Bangladesh declared a
1) b‡fj K‡ivbv fvBivm Gi cÖv`yfv© ‡ei Kvi‡b cÖwZKzj
financial assistance package of Tk. 200.00
A_©‰bwZK cÖfve †gvKv‡ejvq evsjv‡`k miKvi Gi thousand million on 05 April 2020 to encounter
gvbbxq cÖavbgš¿x KZ©K
„ 05 GwcÖj 2020 Zvwi‡L 200.00 the negative impact on the economy due to
(`yBkZ) nvRvi wgwjqb UvKvi Avw_©K mnvqZv/cÖ‡bv`bv COVID 19 Corona Virus. Under this package,
Sonali Bank PLC disbursed Tk. 4,200.00 million
c¨v‡KR †NvlYv Kiv nq| D³ c¨v‡K‡Ri AvIZvq cÖ_g
against the stipulated target of Tk. 4,121.70 million
ch©v‡q (2020-21) G e¨vs‡Ki Rb¨ wba©vwiZ jÿ¨gvÎv at the first stage (2020-21) and at the second stage
4,121.70 wgwjqb UvKvi wecix‡Z 4,200.00 wgwjqb (2021-2022) disbursed Tk. 5,400.00 million while
UvKv, wØZxq ch©vq (2021-22) Gi wba©vwiZ jÿ¨gvÎv the target was Tk. 5,000.00 million. The third
stage of this package is still running and the Bank
5,000.00 wgwjqb UvKvi wecix‡Z 5,400.00 wgwjqb
has also disbursed Tk. 5,200.00 million till June
UvKv Ges Z„Zxq ch©vq (2022-23) G Ryb 2023 ch©šÍ 2023.
5,200.00 wgwjqb UvKv FY weZiY Kiv nq|
2) †`‡ki Sustainable Development Goals (SDGs) 2) To ensure Sustainable Development Goals (SDGs),
a project on “One Branch One Month One new
Z_v †UKmB A_©‰bwZK Dbœqb wbwð‡Z bZzb D‡`¨v³v
Entrepreneur’’ had been launched since 2014
m„wói K‡i FY cÖevn e„w×i j‡ÿ¨ 2014 mvj †_‡K ÒGKwU to increase loan flow through creating new
kvLv GKwU gvm GKwU bZzb D‡`¨v³v Kg©mw~ PÓ Pvjy Kiv entrepreneurs. Under this project, Tk. 57,291.30
n‡q‡Q| GB Kg©mw~ Pi AvIZvq 2023 mvj ch©šÍ †gvU million has been disbursed to a total of 149,985
149,985 Rb wmGgGmGgB D‡`¨v³vi wecix‡Z me©‡gvU CMSME entrepreneurs till 2023.
57,291.30 wgwjqb UvKv FY weZiY Kiv n‡q‡Q|
3) Ò†mvbvjx Av‡jvÓ cÖK‡íi AvIZvq cwi‡ek evÜe MÖxb 3) A total of Tk. 76.30 million has been disbursed
e¨vswKs (†mvjvi GbvwR© Ges ev‡qv M¨vm cø¨v›U) Lv‡Z to the environment friendly green sectors (solar
energy and bio-gas plant) under “Sonali Alo” project
G ch©šÍ 1280 Rb MÖvn‡Ki AbyK~‡j e¨vsK me©‡gvU cÖvq and total number of clients has stood at 1,280.
76.30 wgwjqb UvKv weZiY K‡i‡Q|
4) e¨vs‡K Òbvix D‡`¨v³v Dbœqb BDwbUÕÕ ¯’vcb Kiv n‡q‡Q Ges 4) ’’Women Entrepreneurs Development Desk’’ has
been established in the bank and Brochure ’’Nipuna’’
bvix D‡`¨v³v‡`i Rb¨ wmGgGmGgB F‡Yi ‰ewkó¨ I my‡hvM
is being distributed to the women entrepreneurs
myweav e¨vcKfv‡e cÖPv‡ii j‡ÿ¨ eªæwkDi ÒwbcybvÕÕ gy`Yª K‡i to inform the facilities of the scheme ”CMSME”. In
gvV ch©v‡q weZiY Kiv n‡”Q| 2023 mvj ch©šÍ G Lv‡Z this project, the Bank has disbursed Tk. 10,596.90
weZiYK…Z F‡Yi cwigvY 10,596.90 wgwjqb UvKv| million till 2023.

5) GQvov K¬v÷vi m„wói gva¨‡g 2023 mvj ch©šÍ 5645 Rb 5) Moreover, Tk. 265.00 million has been disbursed
to 5645 clients in ‘’Cluster’’ financing of the Bank
FYMÖnxZvi AbyK~‡j cÖvq 265.00 wgwjqb UvKv weZiY
till 2023.
Kiv n‡q‡Q|
6) wW‡m¤^i 2023 ch©šÍ GmGgB F‡Yi cwigvY `uvwo‡q‡Q 6) Total outstanding volume of SME credit has stood
at Tk. 149,378.60 million till 2023 which is 14.82%
149,378.60 wgwjqb hv e¨vs‡Ki †gvU F‡Yi 14.82%|
of total loan of the bank. Overall CMSME activities
mvgwMªKfv‡e evsjv‡`k e¨vs‡Ki wb‡`©kvejx Abyhvqx fwel¨‡Z will be geared up according to Bangladesh Bank’s
e¨vs‡Ki wmGmGmGgB Kvh©µg Av‡iv †eMevb n‡e| guideline.

K…wl/cjøx FY Agricultural / Rural Credit

At present, 11 credit programs namely Special Agricultural
eZ©gv‡b G e¨vs‡K 11 wU K…wl/cjøx FY cÖKí Pvjy Av‡Q †hgb
Credit (SACP), Sugarcane Cultivation Credit, Pond Fisheries
-we‡kl K„wl FY, Cÿz Pvl FY, cyK‡z i grm¨ Pvl FY, we‡kl Credit, Special Investment, Farming Credit, Non-crop
wewb‡qvM, K…wl FY, kl¨wenxb Addvwg©s FY, mvgvwRK ebvqb Off-farming Credit, Social Forestry Credit and Refinance
FY, `y» Drcv`b, K…wÎg cªRbb Ges K„wl cybtA_©vqb FY| scheme for Agricultural, Milk Production and Artificial
Insemination, are being run by the Bank with a view to
G¸‡jvi g~j jÿ¨ n‡jv K…wl Drcv`b e„w× Kiv, Kg©ms¯’v‡bi
augmenting agricultural output, creating employment
my‡hvM m„wó Kiv Ges MÖvgxY Rb‡Mvwôi DcvR©b e„w× Kiv| G opportunities and generating income of the rural people.
SBL intensified its efforts to extend credit facilities to all

72 ANNUAL REPORT 2023

e¨vsK K…wlR Ges AK…wlR Lv‡Z FY cÖ`vb Kvh©µg Av‡iv sections of rural population under those various rural
credit programs pertaining to agricultural and off-farming
†Rvi`vi K‡i‡Q| evsjv‡`k e¨vs‡Ki wb‡`©kbv Abyhvqx †mvbvjx activities. As per Bangladesh Bank’s instruction, Sonali Bank
e¨vsK wcGjwm K…wl/cjøx F‡Y 4% †_‡K 10% mij my‡` PLC has been providing Agricultural/Rural Credit ranging
FY weZiY K‡i _v‡K| ZvQvov Wvj, ˆZjexR, gmjv, fzÆv from 4% to 10% with simple interest rate. Loans are being
Pv‡li Rb¨ K…lK‡`i‡K Ges `y» Drcv`b I K…wÎg cªRbb disbursed among the rural farmers for cultivation of pulses,
oil seed, spices and maize at 4% and at 5% interest rate
cybtA_©vq‡bi †ÿ‡Î 4% †_‡K 5% my‡` FY weZiY Kiv nq| for Refinance scheme for Milk Production and Artificial
31 wW‡m¤^i 2023 wfwËK K…wl/cjøx FY Lv‡Z F‡Yi w¯’wZ Insemination. Total outstanding of agricultural loan stood
`uvwo‡q‡Q 70,520.70 wgwjqb UvKv| at Tk. 70,520.70 million as on 31 December, 2023.

ÿy`ª FY Micro Credit

`vwi`ª we‡gvPb, AvZ¥Kg©ms¯’vb m„wó I MÖvgxY Av_©-mvgvwRK The role of micro-credit is widely acclaimed as an
effective tool for poverty alleviation, self-employment
Dbœq‡b ÿy`ª F‡Yi f‚wgKv wek^e¨vcx ¯^xK…Z I cÖkswmZ| generation and rural economic development. The
Kv‡RB e¨vsK ÿz`ª FY Kvh©µg‡K Av‡iv MwZkxj I Kvh©Ki Bank has, therefore, been trying its best to provide
fv‡e cwiPvjbvi j‡ÿ¨ me©vZ¡K cÖ‡Póv Pvwj‡q hv‡”Q| eZ©gv‡b funding support to this sector. At present, 22 projects/
`vwi`ª `~ixKi‡Y e¨vs‡Ki 22wU ÿz`ª FY Kg©m~wP i‡q‡Q| programs aimed at alleviating poverty are being run
by the Bank. Bank-NGO Linkage Wholesale Credit
D³ Kg©m~wPi g‡a¨ e¨vsK-GbwRI wjs‡KR †nvj‡mj FY Program (Bank’s own fund)-launched all over the
Kg©m~wP (e¨vs‡Ki wbR¯^ Znwej) Ges AvšÍR©vwZK K…wl DbœqY country and International Fund for Agricultural
Znwej (IFAD) Gi A_©vq‡b †`‡ki `wÿY cwðgv‡j grm¨ Development (IFAD) funded Agricultural Development
Dbœqb cÖKí Ges gqgbwmsn, Rvgvjcyi I †kicyi A‡j Project in the South West region of the country and
Small holder Agricultural Improvement Project in
¯§j †nvìvi GwMÖKvjPvivj BgcÖæf‡g›U cÖ‡R± (MJS-SAIP) Mymensingh, Jamalpur & Sherpur are the main
Ab¨Zg| GQvovI i‡q‡Q weAviwWwe-BDwmwmG Gi gva¨‡g programs among them. Besides these, there are
cwiPvwjZ wewfbœ FY, 152wU Dc‡Rjvq GwWwei A_©vq‡b different types of credit through BRDB-UCCA, ADB
cjøx RxweKvqb cÖKí, `vwi`ª we‡gvPb mnvqZv FY Kg©m~wP, financed Rural Livelihood Project (RLP) in 152 Upazilas,
Daridra Bimochan Shahayata Rin Karmasuchi, Rural
MÖvgxY ÿz`ª e¨emv Ges ÿz`ª Lvgvi FY Kg©m~Px cÖf…wZ| Small Business and Small Farming Loan Scheme etc.

kniv‡ji gwnjv‡`i Rb¨ Credit for Urban Women Under the coverage of the project titled “Credit
Micro Enterprize development (CUMED) wk‡ivbv‡g for Urban Women Micro Enterprise Development
(CUMED)” project, loans up to Tk. 0.50 million
eZ©gv‡b wmwU K‡cv©‡ikb/‡cŠimfv/‡cŠimfvwenxb Dc‡Rjv without any collateral are being disbursed in all City
kn‡ii kvLvmg~‡ni gva¨‡g webv Rvgvb‡Z 0.50 wgwjqb Corporations/ Metropolitan/ Upazilla branches.
UvKv ch©šÍ FY ‡`qv n‡”Q|

Micro Credit in Bangladesh

ANNUAL REPORT 2023 73

SONALI BANK PLC

GQvovI mviv‡`‡k ÿy`ª D‡`¨v³v Dbœqb FY Kg©mw~ P ÔD‡b¥lÕ Pvjy Besides, the Micro Entrepreneur Development Credit
Kiv n‡q‡Q| Z`ycwi MÖvgxY bvix‡`i‡K ¯^vej¤^x K‡i Zzj‡Z Program “Unmesh” has been rolled out all over the
country. Moreover, in order to make the rural women
ÔRv‡Mv bvix MÖvgxY FYÓ bv‡g e¨vs‡K bZzb GKwU FY Kg©mP~ x self-reliant, the Bank has introduced a new loan
Pvjy Kiv n‡q‡Q| e¨vsKwU mviv‡`‡k 250wU MÖvgxY kvLvq program named “Jago Nari Grameen Rin” through 250
25,000/- UvKv ch©šÍ RvgvbZwenxb FY cÖ`vb Ki‡Q| rural branches all over the country with an amount of
collateral-free loan up to Tk. 25,000.00.
AveZ©bkxj cybtA_©vqb Znwej (Revolving Refinance Sonali Bank PLC has signed an agreement with
Scheme) Gi cybtA_©vqb myweav MÖnY Kivi Rb¨ evsjv‡`k Bangladesh Bank for Tk. 600.00 million under Revolving
Refinance Scheme. In this program, credit facilities with
e¨vsK I †mvbvjx e¨vsK wcGjwm Gi g‡a¨ 600.00 wgwjqb subsidized interest rate extended to small, marginal and
UvKvi GKwU AskMÖnYg~jK Pzw³bvgv ¯^vÿwiZ n‡q‡Q| D³ landless farmers and traders of Tk. 10/50/100 account
Kg©mw~ Pi AvIZvq 10/50/100 UvKvi wnmveavix ÿz`/ª cÖvwšÍK/ f~wgnxb holders under inclusive banking.
K…lK Ges ÿz`ª e¨emvqx‡`i mvkÖqx my‡` e¨vsK FY cÖ`vb K‡i _v‡K|
m¤úªwZ †mvbvjx e¨vsK wcGjwm ¯‹zjMvgx QvÎ/ QvÎx‡`i Rb¨ SBPLC has recently launched low interest bearing loan
program named “Bicycle Loan Scheme for School Going
ÔevBmvB‡Kj FY Kg©m~wPÕ bv‡g ¯^í my‡`i GKwU FY Kg©m~Px Students”. This program has already been circulated
Pvjy K‡i‡Q| ¯’vbxq Kvh©vjq Ges K‡c©v‡iU kvLv e¨ZxZ in all branches of Sonali Bank except Local Office
and all corporate branches. This collateral free newly
e¨vs‡Ki mKj kvLvq GB FY Kg©m~wP Pvjy Kiv n‡q‡Q| mnR introduced loan upto Tk. 15,000.00 is being provided
k‡Z© RvgvbZ wenxbfv‡e 15,000/-UvKv ch©šÍ ¯‹zjMvgx `wi`ª to the poor school going students with easy terms and
conditions.
QvÎ/QvÎx‡`i g‡a¨ GB FY weZiY Kiv n‡”Q|
31 wW‡m¤^i 2023 ZvwiL wfwËK gvB‡µv †µwWU Lv‡Z †gvU As on 31 December 2023, micro credit of SBPLC stood
Tk. 17,730.00 million which was Tk. 13,670.00 million in
w¯’wZi cwigvY 17,730.00 wgwjqb UvKv hv 2022 mv‡j wQj
2022.
13,670.00 wgwjqb UvKv|

wewb‡qvM Investment Financing

G e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi g¨v‡bR‡g›U wWwfkb The Treasury Management Division (TMD) of the
wewb‡qvM msµvšÍ Kvh©µg †`Lfvj K‡i _v‡K| Bnv †UªRvwi Bank oversees the investment financing activities. It
operates Treasury bill, bond, debenture, share and
wej, eÛ, wW‡eÂvi, †kqvi Ges wewb‡qvM m¤úwK©Z Kvh©vejx related transactions. The Bank has engaged itself as
cwiPvjbv K‡i _v‡K| †UªRvwi wej I eÛ µq/weµ‡qi †ÿ‡Î primary dealer in buying and selling of treasury bills
e¨vsK cÖvBgvwi wWjv‡ii f~wgKv cvjb K‡i _v‡K| 31 wW‡m¤^i and bonds. The sector-wise (Government, Public and
2023 wfwËK LvZIqvix (cvewjK Ges cÖvB‡fU) wewb‡qv‡Mi Private) summary of investment of the Bank as on 31
December, 2023 is shown in the table below:
mvi-ms‡ÿc wb‡¤œ Dc¯’vcb Kiv n‡jv t

31 wW‡m¤^i, 2023 wfwËK LvZIqvix wewb‡qvM Sector-wise Investment as on 31 December, 2023

(wgwjqb UvKvq) (Tk. in million)

wk‡ivbvg miKvwi cvewjK cÖvB‡fU me©‡gvU Description Government Public Private Total
evsjv‡`k e¨vsK wej - - - - Bangladesh Bank Bill - - - -

†UªRvwi wej 91032.80 - - 91032.80 Treasury Bills 91032.80 - - 91032.80

wifvm© †i‡cv - - - - Reverse Repo - - - -

†UªRvwi eÛ 468627.95 - - 468627.95 Treasury Bonds 468627.95 - - 468627.95

†¯úkvj eÛ/myKzK 11228.87 - - 11228.87 Special Bond/Sukuk 11228.87 - - 11228.87

K‡c©v‡iU/cÖvB‡fU eÛ - - 29918.71 29918.71 Corporate/Private Bond - - 29918.71 29918.71

cÖvBReÛ 84.13 - - 84.13 Prize Bond 84.13 - - 84.13

wW‡eÂvi - 5.15 0.70 5.85 Debentures - 5.15 0.70 5.85

†kqvi - - 20953.05 20953.05 Shares - - 20953.05 20953.05

Bmjvgx e¨vswKs DB‡Ûv 324.56 - - 324.56 Islami Banking Window 324.56 - - 324.56

‰e‡`wkK gy`ªvq wewb‡qvM - - - Investment in - - - -

Foreign Currency
‰e‡`wkK kvLv 435.22 - 929.99 1365.21 Overseas Branches 435.22 - 929.99 1365.21
me©‡gvU 571733.53 5.15 51802.45 623541.13 Total 571733.53 5.15 51802.45 623541.13

74 ANNUAL REPORT 2023

e¨vsK G LvZ n‡Z 2023 mv‡j 45,794.88 wgwjqb In 2023, the Bank earned Tk. 45,794.88 million which
UvKv Avq K‡i‡Q hv c~e©eZ©x eQ‡i wQj 31,638.74 was Tk. 31,638.74 million in the previous year. The total
investment of the Bank in 2023 was Tk. 623,541.13
wgwjqb UvKv| 2023 mvj †k‡l e¨vs‡Ki †gvU wewb‡qv‡Mi million which was Tk. 621,272.57 million at the end of
cwigvY 623,541.13 wgwjqb UvKv hv 2022 mv‡j wQ‡jv 2022. Major investments were made in Treasury Bills,
621,272.57 wgwjqb UvKv| cÖavb cÖavb wewb‡qvM LvZ n‡jv Treasury Bonds, Special Bonds, Corporate/Private
†UªRvwi wej, eÛ, wW‡eÂvi, †kqvi BZ¨vw`| Bond, Shares and Debentures etc.

gvbe m¤ú` Human Capital

¯^vaxbZvi ci MZ 53 eQ‡i G e¨vs‡Ki K‡cv©‡iU ms¯‹…wZ Ggb Over the last 53 years, the corporate culture at
SBPLC grew as such that the employees have ample
ch©v‡q ‡cŠu‡Q‡Q †hLv‡b Kg©KZ©v/ Kg©Pvixiv ¯^vaxbfv‡e KvR
opportunities to take initiative and responsibilities
K‡i wb‡Ri, cÖwZôv‡bi Ges mgv‡Ri Dbœq‡b f~wgKv ivL‡Q| to unleash their hidden potential to maximize
e¨vs‡Ki gvbe m¤ú` Dbœqb wefvM Kg©KZ©v‡`i e¨vswKs wel‡q benefits for themselves and for the society. The
me©‡kl AMÖMwZ Ges wbqgbxwZ m¤ú‡K© mg¨K Ávb/cÖwkÿY HR Division of SBPLC. takes necessary initiatives
to impart latest developments and banking rules
†`qvi cÖ‡qvRbxq c`‡ÿc wb‡”Q| Gi d‡j e¨vs‡Ki Kg©KZ©v-
and regulations to the employees so that they
Kg©Pvixiv mn‡RB MÖvnK‡`i Pvwn`v eyS‡Z mÿg nb Ges †m can understand the customer’s demands and
†gvZv‡eK `ªæZ Ges `ÿZvi mv‡_ ‡mev cÖ`vb Ki‡Z mg_© nq| deliver prompt and efficient services. SBPLC has
e¨vs‡Ki gvbe m¤ú`‡K Av‡iv Kvh©Kix Kivi Rb¨ †mvbvjx taken initiatives of converting human resources
into productive ones and with this end in view,
e¨vsK wewfbœ cÖwkÿ‡Yi D‡`¨vM MÖnY K‡i‡Q| GiB Ask
it has trained up as many as 71871 employees in
wn‡m‡e 2023 mv‡j 71871 Rb Kg©KZ©v-Kg©Pvix‡K wewfbœ 2023. As of December 2023, 18257 employees of
cÖKv‡ii cÖwkÿY †`qv n‡q‡Q| 31 wW‡m¤^i, 2023 wfwËK different layers are working in the Bank among
e¨vs‡Ki †jvKe‡ji msL¨v 18257 Rb hvi g‡a¨ 16768 Rb which officers and staffs are 16,768 and 1489
respectively.
Kg©KZ©v Ges 1489 Rb Kg©Pvix|
MÖvnK †mev Customer Care

†mvbvjx e¨vsK wcGjwm Zvi MÖvnK‡`i KvQ †_‡K me©wb¤œ †mev SBPLC takes minimum service charges from its
customers. Sonali E-Wallet, Sonali E-Sheba, Sonali Bank
g~j¨ wb‡q _v‡K| DbœZ MÖvnK †mevi Rb¨ †mvbvjx B-Iqv‡jU, bKash link account have been introduced and Front
†mvbvjx B-†mev, †mvbvjx e¨vsK-weKvk wjsK GKvD›U Pvjy desk, women entrepreneurs’ desk, customer complaint
Ges d«›U †W¯‹, bvix D‡`¨v³v †W¯‹, MÖvnK Awf‡hvM e·, box and customer care cell have been established
MÖvnK †mev †mj †Lvjv n‡q‡Q| avwg©K gymwjg‡`i µgea©gvb to ensure better customer services. To attract the
increasing demand of the religious Muslims, SBPLC
Pvwn`v c~i‡Yi j‡ÿ¨ e¨vsK Zvi 58wU kvLvq ÓAvevwej has introduced “Ababil Islamic Core Banking Software”
BmjvwgK †Kvi e¨vswKs mdUIq¨viÓ Gi gva¨‡g Bmjvgx for Islamic banking in 58(Fifty Eight) branches. It is
e¨vswKs cwiPvjbv Ki‡Q| DbœZ MÖvnK †mev †`qvi Rb¨ Ges digitizing its business to provide improved services to
e¨vswKs Kvh©µg MwZkxj Ges `ÿZvi mv‡_ m¤úv`‡bi Rb¨ its customers and to make its operations more prompt
and efficient.
mKj Kvh©µg wWwRUvj c×wZ‡Z iƒcvšÍi Kiv n‡q‡Q|
mvgvwRK wbivcËv †e÷bx Kg©mw~ P‡Z AskMÖnY Participation in Social Safety Net Programs

mvaviY e¨vswKs †mev †hgb wkí A_©vqb, Avg`vwb-ißvwb In addition to providing conventional banking services
such as industry finance, import and export finance,
A_©vqb, mvaviY FY,cjøx FY, ‰e‡`wkK gy`vª Avbqb, `xN© general credit, rural credit, remittance, long term
†gqv`x FY BZ¨vw`i cvkvcvwk †mvbvjx e¨vsK wcGjwm 51wU loans, the Bank is assisting in implementing 51 safety
mvgvwRK wbivcËv †e÷bx Kg©mw~ P‡Z mnvqZv Ki‡Q †h¸‡jvi net programs which in turn are affiliated with some
mv‡_ miKv‡ii wKQz we‡klvwqZ cÖK‡íi mswkøóZv Av‡Q| we¯ÍZ … specialized projects of the Government. Through its
widest range of rural branches, SBPLC is disbursing
MÖvgxY kvLvi gva¨‡g G e¨vsK cÖv_wgK Ges D”P gva¨wgK ¯Í‡i stipends to the students studying at primary and
Aa¨vqbiZ QvÎ/QvÎx‡`i g‡a¨ wkÿv e„wË, mvgwiK †cbkb, eq¯‹ secondary level, army pension, old age allowance,
fvZv, weaev fvZv, `y¯’ gwnjv fvZv, ‡emiKvix ¯‹jz , K‡jR, widow allowance, destitute woman allowance,
gv`ªvmvmn †emiKvix †iwR÷ªvW© cÖv_wgK ¯‹‡z ji wkÿK‡`i †eZb- salaries and allowances for non-government schools,
colleges, madrashas and non-government registered
fvZv cÖ`vb K‡i _v‡K| Gi cvkvcvwk wewfbœ cÖKvi BDwUwjwU primary schools as well as collecting various utility
wej †hgb †Uwj‡dvb wej, M¨vm wej, ‡Wmv/‡Wm‡Kv/AviBwe bills like telephone bill, gas bill, electricity bills of DESA,

ANNUAL REPORT 2023 75

SONALI BANK PLC

Gi we`¨yr wej, Iqvmv wej msMÖn K‡i _v‡K| e¨vsK eZ©gv‡b DESCO, REB and WASA. There are 3,154,877 accounts
under Social Safety Net program, 324,168 accounts
31,54,877wU mvgvwRK wbivcËv †e÷bx wnmve, 3,24,168wU for distributing freedom fighters’ allowance and
gyw³‡hv×v wnmve Ges 33,40,534wU Ab¨vb¨ wnmve Gi gva¨‡g 3,340,534 accounts for others. The main objective of
wewfbœ cÖKvi fvZv cÖ`vb K‡i| e¨vs‡Ki g~j D‡Ïk¨ n‡jv e¨vswKs SBPLC is to take all types of banking services to the
†mev‡K MÖvn‡Ki †`vi †Mvovq †cŠu‡Q †`qv| GQvov e¨vsKwU wewfbœ door-steps of the people. The Bank participates in
various socio-economic activities and development
cÖKvi Av_©-mvgvwRK Ges Dbœqbg~jK Kg©Kv‡Û AskMÖn‡Yi programs as well as helps in implementing various
cvkvcvwk miKvi KZ…K © M„nxZ wewfbœ cÖKí ev¯Íevq‡b mnvqZv plans and programs taken up by the Government. As
Ki‡Q| iv‡óªi me©en„ r evwYwR¨K e¨vsK wn‡m‡e ‡mvbvjx e¨vsK the largest state owned commercial bank, Sonali Bank
Gi `vwqZ¡ n‡jv †mev w`‡q Ges †ckv`vix g‡bvfve wb‡q KvR has the responsibility to run its operations as a service-
oriented and professionally managed leading profitable
K‡i †`‡ki g‡a¨ GKwU †bZ…Z¯ ¡ v’ bxq jvfRbK cÖwZôvb wn‡m‡e organization in the country.
KvR Kiv|
Capital Market Operation
cuwy RevRvi Kvh©µg
Through Sonali Investment Limited (SIL), the subsidiary
†mvbvjx e¨vs‡Ki GKwU mvewmwWqvwi †Kv¤úvwb wn‡m‡e †mvbvjx
company, SBPLC has a significant presence in the
Bb‡f÷‡g›U wjwg‡UW (SIL) evsjv‡`‡ki cuywRevRv‡i capital market of Bangladesh. SIL ensures high quality
¸iæZ¡c~Y© f~wgKv cvjb Ki‡Q| SIL AvB‡bi cÖwZ AbyMZ †_‡K services to our valuable clients by its professionalism
†ckv`vwi AvPiY Øviv g~j¨evb MÖvnK‡`i DbœZgv‡bi †mev while being fully compliant with the laws of the land.
It attaches priority to investors’ interest, their benefit
cÖ`vb Ki‡Q| ‡Kv¤úvwbwU MÖvnK ¯^v_© Ges myweav‡K AMÖvwaKvi
and always intends to protect investors against market
†`qvi cvkvcvwk evRvi m¤úwK©Z SuzwK †_‡K MÖvnK‡`i myiÿv related risks and has thus become a trusted partner
†`q| Gi d‡j MÖvnK‡`i wek¦¯Í Askx`vi n‡Z mÿg n‡q‡Q| of investors. The current activities of the company
Gi eZ©gvb Kvh©µ‡gi g‡a¨ Bmy¨ g¨v‡bR‡g›U, †cvU©dwjI include Issue Management, Portfolio Management,
Underwriting, Equity Participation and ancillary services
g¨v‡bR‡g›U, AvÛviivBwUs, g~jab mnvqZv, cyuwRevRvi mswkøó
related to the capital market. At present, SIL runs its day
Ab¨vb¨ †mev D‡jøL‡hvM¨| eZ©gv‡b GwU cÖavb Kvh©vjqmn 2wU to day operations by its Head Office and another branch
kvLv Øviv ˆ`bw›`b Kvh©µg cwiPvjbv Ki‡Q| cÖwZôvbwU located at Dhaka. As a part of its active role in the capital
2023 mvj ch©šÍ gvwR©b FY wn‡m‡e 2,668.17 wgwjqb market, till 2023 SIL has disbursed Tk. 2,668.17 million
as margin loan and invested Tk. 2,803.04 million to its
UvKv weZi‡Yi cvkvcvwk cuywRevRv‡i wbR¯^ †cvU©dwjI‡Z
own portfolio.
2,803.04 wgwjqb UvKv wewb‡qvM K‡i‡Q|

Suwz K e¨e¯’vcbv Risk Management

The Risk Management Division of the Bank identifies
e¨vs‡Ki SuzwK e¨e¯’vcbv wefvM mKj cÖKvi SuzwK m¤úwK©Z KvR
analyses, evaluates and supervises all risk related work
wPwýZ, wePvi-we‡kølY, g~j¨vqb Ges Z`viwK K‡i _v‡K| GKB including control/mitigation measure of risks as per
mv‡_ evsjv‡`k e¨vs‡Ki wb‡`©kbv Abyhvqx cwiPvjbv cl©‡`i guidelines and direction of Bangladesh Bank with
Aby‡gv`bµ‡g GMy‡jv wbqš¿Y Ges mgvav‡bi Dcvq †ei K‡i _v‡K| the approval of the Board of Directors. Recently, a
high powered ‘Board Risk Management Committee’
m¤úªwZ evsjv‡`k e¨vs‡Ki wb‡`©kbv ‡gvZv‡eK mvwe©K SuzwK e¨e¯’vcbv
comprising five members of the Board of Directors has
Kvh©µg kw³kvjxKi‡Yi D‡Ï‡k¨ cwiPvjbv cl©‡`i 5 Rb m`m¨ been formed as per the directives of Bangladesh Bank to
wb‡q cwiPvjbv cl©‡`i SuzwK e¨e¯’vcbv KwgwU MVb Kiv n‡q‡Q| strengthen overall risk management activities.

¸iæZ¡cY~ © Suwz Ki wewfbœ ‡ÿ‡Î m‡šÍvlRbK †iwUs AR©‡bi j‡ÿ¨ cÖavb Risk Management Division has introduced Risk
Management Checklist (RMC) for attaining ‘satisfactory’
Kvh©vj‡qi Suwz K e¨e¯’vcbv wefvM KZ…K
© GKwU Suwz K e¨e¯’vcbv †PKwj÷ rating on various segments of core risks through proper
(RMC) Pvjy Kiv n‡q‡Q| ¸iæZ¡cY~ © Suwz K e¨e¯’vcbv bxwZgvjv e¨vs‡Ki implementation of Core Risk Management Guidelines,
mKj kvLv/ Kvh©vj‡q msiÿY Kiv nq| Suwz K e¨e¯’vcbv wefvM KZ…K © which is being maintained at all offices/branches of
Aa©-evwl©K wfwˇZ Òmgwš^Z Suwz K e¨e¯’vcbv cÖwZ‡e`bÓ Ges gvwmK the Bank. Risk Management Division also prepares
half yearly “Comprehensive Risk Management Report
wfwˇZ ÒSuwz K e¨e¯’vcbv cÖwZ‡e`bÓ cÖ¯Z ‘ Kiv nq| Gi gva¨‡g (CRMR)” and monthly “Risk Management Report (RMR)”
e¨vs‡Ki m¤ú`, `vq, Zvij¨ Ae¯’v I Av‡qi mv‡_ m¤úwK©Z Suwz KMy‡jv to identify, analyzes and mitigates the risks relating to
wPwýZ Kiv, we‡kølY Kiv Ges mgvavb Kiv nq| DwjøwLZ cÖwZ‡e`bmg~n bank’s assets, liabilities, liquidity, earnings and submit it
e¨vs‡Ki Suwz K e¨e¯’vcbv KwgwU‡Z Dc¯’vcb Kiv nq Ges evsjv‡`k to the Risk Management Committee of the Bank as well
as to Bangladesh Bank for its regulatory compliance.
e¨vs‡KI †cÖiY Kiv nq| D³ wefvM KZ…K © wbqwgZfv‡e †÷ªm †Uw÷s The division conducts periodic ‘Stress Testing’ to assess

76 ANNUAL REPORT 2023

Kiv nq hvi gva¨‡g we‡kl Suwz K Dcv`vb Ges ch©vqmg~n we‡ePbvq wb‡q Capital to Risk-weighted Asset Ratio (CRAR) of the Bank
considering specific shock factors and shock levels. “Core
wi¯‹ I‡q‡UW m¤ú‡`i wecix‡Z g~ja‡bi ch©vßZv cwigvc Kiv nq| Risk Management Guidelines Implementation Policy” has
evsjv‡`k e¨vs‡Ki mv‡_ G e¨vs‡Ki ¯^vÿwiZ MOU Gi Av‡jv‡K been introduced in line with MOU signed with Bangladesh
Ò¸iæZ¡cY~ © Suwz K e¨e¯’vcbv wb‡`©kvejx ev¯Íevqb bxwZÓ Pvjy Kiv n‡q‡Q| Bank. The Risk Management Division also reviews position
Suwz K e¨e¯’vcbv wefvM KZ…K © †µwWU †iwUs, FY I AMÖx‡gi Abycv‡Zi of credit rating, abnormal change in AD ratio, recovery
position, self-assessment of internal control and other risk
A¯^vfvweK cwieZ©b, †kÖwYK…Z FY Av`vq Ae¯’v, e¨vs‡Ki mv‡_ m¤úwK©Z factors associated with banking activities.
Suwz K Ges Af¨šÍixY wbixÿvi wbR¯^ g~j¨vqb I ch©v‡jvPbv Kiv nq|
B‡Zvg‡a¨, mycvifvBwRs wiwfD cÖ‡mm (SRP) Gi AvIZvq 2020, Meanwhile, Internal Capital Adequacy Assessment
Process (ICAAP) and related Supplementary Document
2021 I 2022 mvjwfwËK B›Uvibvj K¨vwcUvj GwW‡Kv‡qwm under Supervisory Review Process (SRP) for the year
A¨v‡mm‡g›U cÖ‡mm (ICAAP) Ges Avbymw½K `wjjvw` cÖYqbc~eK
© 2020, 2021 and 2022 have been prepared and submitted
cÖwZ‡e`bmg~n evsjv‡`k e¨vs‡K †cÖiY Kiv n‡q‡Q Ges 2023 to Bangladesh Bank. Besides, ICAAP for the year 2023 is
mv‡ji ICAAP Gi KvR cªwµqvaxb i‡q‡Q| also in underway.

SuywK wfwËK g~jab ch©vßZv e¨e¯’vcbv Risk based Capital Adequacy Management

evsjv‡`k e¨vs‡Ki wb‡`©kbv †gvZv‡eK 01 Rvbyqvix 2015 ZvwiL In line with Bangladesh Bank guidelines for
determining Minimum Capital Requirement (MCR)
n‡Z G e¨vsK Basel-III Gi Kvh©µg ïiæ K‡i A`¨vewa Gi wbqg and the Capital to Risk-weighted Asset Ratio (CRAR)
cwicvjb K‡i e¨vs‡Ki Minimum Capital Requirement for banks, Basel III guidelines have been enforced
(MCR) Ges Capital to Risk Weighted Asset Ratio (CRAR) effective from 01 January 2015. Under Basel-III
Gi cwigvY wbY©q Ki‡Q| Basel-III bxwZgvjv †gvZv‡eK 2023 guidelines, the Capital to Risk-weighted Asset Ratio
(CRAR) at the end of 2023 stood at 10.07 percent
mv‡j Capital to Risk Weighted Asset Ratio (CRAR) Gi compared to 10.05 percent of the previous year
cwigvY `uvwo‡q‡Q 10.07%, hv Zyjbvg~jKfv‡e c~ee© Z©x erm‡i against regulatory requirement of minimum 10.0
wQj 10.05% †hLv‡b Dfq‡ÿ‡ÎB wbqš¿Yg~jK b~¨bZg cÖ‡qvRb percent. Core capital (Tier 1 capital) held at Tk.
wQj 10%| g~L¨ g~jab (Tier 1 Capital) `uvwo‡q‡Q 62,010.40 62,010.40 million being 7.93 percent of total of Risk
Weighted Assets (RWA). Supplementary capital (Tier
wgwjqb UvKv, hv †gvU Suwy K wfwËK m¤ú` (RWA) Gi 7.93%| 2 capital) stood at Tk. 16,726.87 million being 2.14
m¤úyiK g~jab (Tier 2 Capital) `uvwo‡q‡Q 16,726.87 wgwjqb percent of RWA.
UvKv, hv †gvU RWA Gi 2.14%|
The details of risk weighted assets, minimum capital
we¯ÍvwiZfv‡e SuywK wfwËK m¤ú` (RWA), b~¨bZg g~jab requirement (MCR) and the capital adequacy ratio
ch©vßZv (MCR) Ges g~jab ch©vßZvi AbycvZ (CRAR) wb‡gœ (CRAR) are depicted below:
Dc¯’vcb Kiv n‡jv t
(Tk. in million)
Capital Adequacy Ratio
Position as of
Particulars Change (%)
2023 2022

Total risk weighted assets 781565.00 701286.80 11.45%

Tier-1 Capital 62010.40 55524.35 11.68%

Tier-2 Capital 16726.87 14985.76 11.62%

10.09%

10.07%

Total Capital 78737.27 70510.11 11.67%

10.05%
10.04%

Minimum Capital requirement 78156.50 70128.68 11.45%

10.02%

Tier-1 capital adequacy ratio 7.93% 7.91% 0.02%

Tier-2 capital adequacy ratio 2.14% 2.14% -

2019 2020 2021 2022 2023 Total capital adequacy ratio 10.07% 10.05% 0.02%

†mvbvjx e¨vsK wcGjwm G e¨v‡mj-3 ev¯Íevqb Implementation of BASEL- III in Sonali Bank PLC.
A_©‰bwZK g›`v †_‡K D‡Ëvi‡Yi j‡ÿ¨ e¨vswKs †m±‡i Gi To improve the banking sectors ability to absorb shocks
arising from financial and economic stress, whatever
SzuwK mnb mÿgZv evov‡bvi Rb¨ evsjv‡`k e¨vsK †`‡ki mKj
the sources, thus reducing the risk of spillover from
Zdwkwj e¨vsK‡K 1jv Rvbyqvix 2015 †_‡K 2019 mvj ch©šÍ

ANNUAL REPORT 2023 77

SONALI BANK PLC

av‡c av‡c e¨v‡mj-3 ev¯Íevq‡bi Rb¨ weAviwcwW mvK©yjvi bs- the financial sector to the real economy, Bangladesh
Bank instructed all the scheduled banks in Bangladesh
18/2014 Gi gva¨‡g wb‡`©kbv cÖ`vb K‡i‡Q| ˆewk^K wbqwš¿Z through BRPD circular no- 18/2014 to implement
I ch©‡eÿYg~jK bZzb GB gvbmgyn we‡klfv‡e wb‡¤œ D‡jøwLZ BASEL-III from 1st January, 2015 to 2019 phase by phase.
welq ¸‡jvi Dci ¸iæZ¡ Av‡ivc K‡i‡Q t These new global regulatory and supervisory standards
mainly addressed the following areas:
• mKj Pjgvb I Aemvqb cÖwZôv‡bi g~ja‡bi ¸bMZ gvb
• Raise the quality level of capital to ensure banks
evwo‡q SzuwK Gov‡bv| are better able to absorb losses on both a going
• g~jab KvVv‡gvq SzuwK †gvKv‡ejvi mÿgZv evov‡bv| concern and a gone concern basis;
• FY I BKz¨BwU Abycv‡Z SzuwKhy³ g~jab cwigvc Kiv| • Increase the risk coverage of the capital framework;
• Introduce leverage ratio to serve as a backstop to
• ch©‡eÿY cÖwµqv ch©v‡jvPbvi Rb¨ bZzb bZzb gvb ˆZix the risk-based capital measure;
Kiv ( wcjvi-2) Ges • Raise the standards for the supervisory review
• cÖwZ‡e`b cÖKv‡ki gva¨‡g mKj‡K AeMZ Kiv process (Piller-II); and
(wcjvi-3) BZ¨vw` | • Public disclosures (Piller- III) etc.
†mvbvjx e¨vsK wcGjwm 1jv Rvbyqvix 2015 mvj †_‡K Accordingly Sonali Bank has started BASEL-III
implementation from January, 2015 and Capital
e¨v‡mj-3 ev¯Íevqb ïiæ K‡i‡Q Ges e¨v‡mj-3 Gi wb‡`©kbvi
to Risk-weighted Asset Ratio (CRAR) of the Bank is
Av‡jv‡K SzuwKhy³ m¤ú` I g~ja‡bi AbycvZ (wm Avi G Avi) being submitted to Bangladesh Bank as per BASEL- III
evsjv‡`k e¨vs‡K cÖwZ‡e`bvKv‡i †cÖiY Ki‡Q| requirement.

mv¤úªwZK AvgvbZ †cÖvWv±mg~n t Recent Deposit Products

AvgvbZ msMÖ‡ni j‡ÿ¨ †mvbvjx e¨vsK wcGjwm KZ©„K PvjyK…Z To mobilize more deposit, Bank has introduced several new
bZzb AvgvbZ w¯‹g ¸‡jv wb¤œiƒc: (K) bb-‡iwm‡W›U wW‡cvwRU schemes: (a) Non-resident Deposit Scheme (NRDS) (b) Sonali
Bank Daily Profit Scheme (SBDPS) (c) School Banking Scheme
w¯‹g (L) †mvbvjx e¨vsK †WBwj cÖwdU w¯‹g (M) ¯‹zj e¨vswKs (SBS) (d) Retirement Savings Scheme (RSS) (e) Sonali Bank
w¯‹g (N) wiUvqvi‡g›U †mwfsm w¯‹g (O) †mvbvjx e¨vsK Retirement Savings Scheme (SBRSS) (f) Sonali Bank Millionaire
wiUvqvi‡g›U †mwfsm w¯‹g (P) †mvbvjx e¨vsK wgwjIwbqvi w¯‹g Scheme (SBMS) (g) Triple Benefit Scheme (TBS) (h) Sonali Bank
(Q) wUªcj †ewbwdU w¯‹g (R) †mvbvjx e¨vsK K…lK †mwfsm Krisok Savings Scheme (SBKSS) (i) Shadheen Savings Scheme
w¯‹g (S) ¯^vaxb mÂq w¯‹g (T) ÷z‡W›U †mwfsm ¯‹xg (U) (j) Student Savings Account (k) Mudaraba Monthly Profit Scheme
gy`vivev gvš’wj cÖwdU w¯‹g (V) Avj-Iqvw`qvn Kv‡i›U GKvD›U (MMPS) (l) Al-Wadeeah Current A/c (AWCA) (m) Mudaraba Savings
(W) gy`vivev †mwfsm GKvD›U (X) gy`vivev †¯úkvj †bvwUk A/c (MSA) (n) Mudaraba Special Notice Deposit A/c (MSND) (o)
Mudaraba Term Deposit A/c (MTDA) (p) Mudaraba Hajj Saving
wW‡cvwRU GKvD›U (Y) gy`vivev Uvg© wW‡cvwRU GKvD›U (Z) A/c (MHSA) (q) Mudaraba Monthly Profit Scheme (MMPS) (r)
gy`vivev nÀ †mwfsm GKvD›U Ges (_) gy`vivev †mvbvjx gvš’wj Mudaraba Sonali Monthly Deposit Scheme(SMDS) and (s) Sonali
wW‡cvwRU w¯‹g| wW‡cvwRU ¯‹xg¸‡jv Pvjy Kivi d‡j e¨vs‡Ki Monthly Denmohor Deposit Scheme(SMDDS). As a result, the
AvgvbZ D‡jøL‡hvM¨ cwigv‡Y e„w× †c‡q‡Q| deposit has increased significantly for the last few years.

e¨emvwqK Kvh©µg Ges Avw_©K Ae¯’v ch©v‡jvPbv: Analysis of Business Performance and Financial Position

e¨emv I gybvdvi cÖe„w× Positive Business and Profit Growth

wW‡m¤^i, 2023 ch©šÍ †mvbvjx e¨vs‡Ki 1232wU kvLvi †gvU SBPLC with its 1232 branches became successful in
mobilizing deposits of Tk. 1,506,183.93 million and
AvgvbZ Ges FY I AwMÖ‡gi cwigvY `uvwo‡q‡Q h_vµ‡g
given Tk. 1,008,052.68 million as loans and advances
1,506,183.93 wgwjqb UvKv Ges 1,008,052.68 wgwjqb up to 31 December, 2023. During the year 2023, total
UvKv| e¨vs‡Ki Avq 2022 mv‡ji 91,301.73 wgwjqb UvKv income of the Bank increased by 31.13 percent to Tk.
†_‡K 31.13% e„w× †c‡q 119,721.55 wgwjqb UvKvq 119,721.55 million which was Tk. 91,301.73 million in
2022. The total expenditure stood at Tk. 81,259.67
`uvwo‡q‡Q| e¨vs‡Ki e¨q e„w× †c‡q 81,259.67 wgwjqb
million in 2022 showing an increase of 20.42
UvKvq `uvwo‡q‡Q hv c~e©eZ©x eQ‡ii 67,478.66 wgwjqb percent as against total expenditure of Tk. 67,478.66
UvKvi Zzjbvq 20.42% †ekx| wbU gybvdv n‡q‡Q 6,514.80 million of previous year. Net profit after tax stood at
wgwjqb UvKv hv 2022 mv‡j wQj 3,710.42 wgwjqb UvKv| Tk. 6,514.80 million in 2023 which was Tk. 3,710.42
million in 2022.

78 ANNUAL REPORT 2023

Avq ch©v‡jvPbv weeiYx Review of Income Statement
(Tk. in million)

2022 2023 Position as of

Sl. (Tk. in million) Changes
Types of Income
No %

119,721.55
2023 2022

91,301.73
56,841.92

45,794.88
1. Interest Income 56841.92 42920.89 32.43
42,920.89

31,638.74

16,480.49 2. Investment Income 45794.88 31638.74 44.74

16,782.87 3. Commission/ 16782.87 16480.49 1.83

301.88
261.61
Exchange/ Brokerage
4. Other operating Income 301.88 261.61 15.39
Interest Investment Commission/ Other Total
Income Income Exhange/ operating Income 5.
Brokerage Income Total Income 119721.55 91301.73 31.13

my` Avq Interest Income

†mvbvjx e¨vsK Gi my` Avq 2022 mv‡ji 42,920.89 wgwjqb Sonali Bank’s interest income stood at Tk. 56,841.92
million in 2023 from Tk. 42,920.89 million in 2022
UvKv †_‡K 32.43% e„w× †c‡q 2023 mv‡j `vwo‡q‡Q
which is 32.43 percent higher than the previous year.
56,841.92 wgwjqb UvKvq| 2023 mv‡j F‡Yi cwigvY e„w× Interest income increased mainly due to loans increase
cvIqvq my` Avq e„w× †c‡q‡Q| in 2023.

my` e¨q Interest Expenses

2023 mv‡j e¨vs‡Ki Avgvb‡Zi Ici my` eve` e¨q 2022 Interest expenses of the Bank increased by 27.56 percent
to Tk. 52,083.25 million in 2023 from Tk. 40,831.45
mv‡ji 40,831.45 wgwjqb UvKvi Zzjbvq 27.56% e„w×
million in 2022. Interest expenses increased mainly due
†c‡q `uvwo‡q‡Q 52,083.25 wgwjqb UvKvq| g~jZt D”P to increase of high cost deposits and Repo Borrowing
my`evnx AvgvbZ I †ivcv e‡ivwqsmn Ab¨vb¨ F‡Yi Rb¨ my` with others.
e¨q e„w× †c‡q‡Q|
wbU my` Avq Net Interest Income

2023 mvj †k‡l e¨vs‡Ki wbU my` Avq 2022 mv‡ji 2,089.43 In 2023, net interest income of SBPLC increased by
127.75 percent to Tk. 4,758.67 million from Tk. 2,089.43
wgwjqb Gi Zzjbvq 127.75% e„w× †c‡q 4,758.67 wgwjqb million in 2022. Net interest income increased mainly
UvKvq `uvwo‡q‡Q| g~jZt F‡Yi cwigvY e„w× cvIqvq wbU due to increase of loans and advances of the Bank.
my` Avq e„w× †c‡q‡Q|
my` ewnf‚©Z Avq Non-interest Income

Kwgkb, G·‡PÄ I Ab¨vb¨ cwiPvjb Avq Gi mgš^‡q MwVZ my` Total non-interest income comprising of commission,
ewnf‚©Z Avq MZ eQ‡ii 16,742.10 wgwjqb UvKv †_‡K 2.05% exchange and other operating income of the Bank
increased by 2.05 percent to Tk. 17,084.75 million in
e„w× †c‡q‡Q| 2023 mv‡j Gi cwigvY 17,084.75 wgwjqb UvKv| 2023 compared to Tk. 16,742.10 million in 2022.

Comparison of Revenue Operating Performance

2022 2023
38%
Interest Income
Interest Income
Investment Income Investment Income
48% Commission/Exchange
/ Brokerage
Commission/
Other operating Exchange/ Brokerage
Income
Other operating
Income
0% 14%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANNUAL REPORT 2023 79

SONALI BANK PLC

wewb‡qvM Avq Investment Income

e¨vs‡Ki wewb‡qvM n‡Z cÖvß Avq 2022 mv‡ji Zzjbvq 44.74% Investment income of the Bank increased by 44.74
percent to Tk. 45,794.88 million in 2023 compared to
e„w× †c‡q 2023 mv‡j `uvwo‡q‡Q 45,794.88 wgwjqb UvKv|
Tk. 31,638.74 million in 2022.
2022 mv‡j Gi cwigvY wQj 31,638.74 wgwjqb UvKv|

cwiPvjb e¨q Operating expenses

2023 mv‡j e¨vs‡Ki cwiPvjb e¨q Gi cwigvY `uvwo‡q‡Q Total operating expenses of the Bank during 2023 has
29,176.42 wgwjqb UvKv; c~e©eZ©x eQ‡i Gi cwigvY wQj reached Tk. 29,176.42 million which was Tk. 26,647.21
26,647.21 wgwjqb UvKv| Kg©KZ©v-Kg©Pvix‡`i †eZb- million in 2022. Due to the salary and allowances of
Officers and staffs, the expense has increased compared to
fvZvRwbZ Kvi‡Y G Lv‡Z e¨q e„w×i nvi c~e©eZ©x eQ‡ii
the previous year. Other than that, the operating expense
Zzjbvq †ekx n‡q‡Q| Z‡e cwiPvjbv cl©‡`i mg‡qvwPZ
was in control due to proper and timely direction of the
w`Kwb‡`©kbv Ges e¨vsK e¨e¯’vcbvi wbweo Z`viwKi d‡j Board of Directors and the management of the Bank.
cwiPvjb e¨q wbqš¿‡Y ivLv m¤¢e n‡q‡Q|

wb‡¤œ cwiPvjb e¨‡qi Zzjbvg~jK Ae¯’v D‡jøL Kiv n‡jv t The summary and comparison of operating expenses is given below:
(wgwjqb UvKvq) (Tk. in million)

cwigvY Position as of Change

weeiY cwieZ©b % Particulars
2023 2022 2023 2022 in %

†eZb I fvZvw` 21841.96 19793.37 10.35 Salary and allowances 21841.96 19793.37 10.35

fvov, Ki, exgv, Rent,taxes,Insurance and

1449.14 1342.49 7.94 1449.14 1342.49 7.94
we`¨yr BZ¨vw` Electricity etc.
Legal Expense 56.25 24.44 130.16
AvBbx LiP 56.25 24.44 130.16
Postage, Stamp,
46.55 45.42 2.49
WvK, ÷¨v¤ú, †Uwj‡dvb BZ¨vw` 46.55 45.42 2.49 Telecommunications
Stationary, Printing and
Qvcv I gwbnvix Ges weÁvcb e¨q 226.73 196.49 15.39 Advertisements etc.
226.73 196.49 15.39

cÖavb wbe©vnx‡`i †eZb I wd 9.18 9.87 (6.99) Chief Executive’s Salary

9.18 9.87 (6.99)
and fees
cwiPvjK‡`i wd 4.88 4.95 (1.41)
Director’s Fees 4.88 4.95 (1.41)
wbixÿKM‡bi wd 5.49 6.11 (10.15) Auditor’s Fees 5.49 6.11 (10.15)
AePq, †givgZ I iÿYv‡eÿY e¨q 1013.03 1070.66 (5.38) Depreciation, repairs and
1013.03 1070.66 (5.38)
maintenance
Ab¨vb¨ cwiPvjb e¨q 4523.21 4153.41 8.90 Other Operating Expense 4523.21 4153.41 8.90
†gvU 29176.42 26647.21 9.49 Total 29176.42 26647.21 9.49

Comparison of Operating Expenses Comparison of Operating Expenses

2022 2023

Salary and allowances

16% Rent.taxes,Insurance
and Electricity etc
Legal Expense
3% Salary, allowances and fees
1% Postage,Stamp,
Rent.,taxes,Insurance,Legal etc Telecommunications
5% Stationary, Postage,Stamp etc Stationary, Printing and…

Depreciation, repairs Chief Executive’s Salary and fees

and maintenance Director’s Fees

Other Operating Expense
Auditor’s Fees
Depreciation, repairs and
75% maintenance
Other Operating Expense

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

cwiPvjbMZ djvdj Summary of operating results

2023 I 2022 mv‡ji cwiPvjbMZ djvd‡ji mvims‡ÿc The summary of operating results with the variation
between the year 2023 and 2022 is given below:
wb‡¤œ Zz‡j aiv n‡jv t

80 ANNUAL REPORT 2023

Operatng Result (Tk. in million)
2022 2023 Amount Change
Particulars
2023 2022 in %
Interest income 56841.92 42920.89 32.43
67638.30

29176.42
Interest Expense (52083.25) (40831.45) 27.56
26647.21

18557.32
50470.28

Net Intt. Income 4758.67 2089.43 127.75

Non-Intt. Income 17084.75 16742.10 2.05
9234.17

9550.72

6514.80
Investment Income 45794.88 31638.74 44.74

7211.97

3710.42
Total Operating Income 67638.30 50470.28 34.02

3839.04
3666.50
Total Operating Expense 29176.42 26647.21 9.49
Profit before Provision 38461.88 23823.07 61.45
Provision for Loans and Advance 18557.32 9234.17 100.96
Provision for diminution in
542.12 1275.46 (57.50)
value of investment
Other Provision 9008.60 5936.51 51.75

Total Total Profit Before Taxes 10353.83 7376.93 40.35

Provision for Other Provision Net Profit
Operating Operating Loans Provision for after Provision For Taxation 3839.04 3666.50 4.71
Income Expense and Advance Taxation taxation
Net Profit after taxation 6514.80 3710.42 75.58

AvqK‡ii wecix‡Z cÖwfkb Provision for Income Tax

2023 mv‡ji Av‡qi wecix‡Z 3,839.04 wgwjqb UvKv Ki Provision of Tk. 3,839.04 million was made to meet
wnmv‡e cÖwfkb ivLv n‡q‡Q hv c~e©eZ©x eQ‡i wQj 3,666.50 current year’s income tax compared to Tk. 3,666.50
million in the preceding year.
wgwjqb UvKv|
Ki cieZ©x gybvdv Profit after Tax
2023 mv‡j e¨vs‡Ki Ki cieZ©x gybvdv `uvwo‡q‡Q The net profit after taxation stood at Tk. 6,514.80 million
6,514.80 wgwjqb UvKv| 2022 mv‡j Gi cwigvY wQj in 2023 as against Tk. 3,710.42 million in 2022. The
3,710.42 wgwjqb UvKv| my` Avq e„w× Ges wewb‡qvM Avq increase in profit after tax is attributed to increase in
interest income and a big jump in Investment income.
e¨vcK Djøç‡b e¨vs‡Ki Ki cieZ©x gybvdv e„w× ‡c‡q‡Q|

mswewae× wiRvf© Statutory Reserve

e¨vsK †Kv¤úvbx AvBb, 1991 (ms‡kvwaZ-2023) †gvZv‡eK As per Bank Company Act, 1991 (amended in 2023), 20
cwi‡kvwaZ g~ja‡bi mgvb bv nIqv ch©šÍ Ki c~e© gybvdvi percent of profit before tax is required to be transferred
to Statutory Reserve until the balance of the same
20% Statutory Reserve G msi¶Y Ki‡Z nq| G eQi reaches to the level of paid up capital. For this purpose,
ch©šÍ e¨vs‡Ki Kic~e© gybvdv n‡Z 18,093.25 wgwjqb UvKv an amount of Tk. 18,093.25 million has been transferred
D³ wnmv‡e msi¶Y Kiv n‡q‡Q| to statutory reserve till this year.

mvgvwRK `vqe×Zv Lv‡Z wiRvf© Reserve for Corporate Social Responsibility

evsjv‡`k e¨vs‡Ki MvBWjvBÝ †gvZv‡eK 2024 mv‡ji In line with Bangladesh Bank Guidelines, a total of Tk.
mvgvwRK `vqe×Zv (CSR) Lv‡Zi LiP †gUv‡bvi Rb¨ 2023 150.00 million has been kept for CSR which has been
provided from net profit after tax of the year 2023 to
mv‡ji wbU gybvdv n‡Z 150.00 wgwjqb UvKv G Lv‡Z
meet Corporate Social Responsibility (CSR) expenses in
msiÿY Kiv n‡q‡Q| 2023 mv‡j G Lv‡Z †gvU Li‡Pi 2024. In 2023, CSR expenses of the Bank were Tk. 61.50
cwigvY wQj 61.50 wgwjqb UvKv| million.

CSR activities in the cold prone areas by SBPLC

ANNUAL REPORT 2023 81

SONALI BANK PLC

gybvdvi D‡jøL‡hvM¨ wb‡`©kKmg~n Significant Profitability Ratio

The key profitability indicators of the SBPLC for the years
2023 Ges 2022 mv‡ji gybvdvi wb‡`©kKmg~n wb¤œiƒc: 2023 and 2022 are highlighted below:
Summary of Operating Result (In Percentage)
2022 2023 Amount (%) Change
Particulars
2023 2022 in %
Return on Investment (ROI) 7.36 4.83 2.53

73.90%

67.87%
Non-interest income to 14.27 18.34 (4.07)

18.34%
total income

14.27%
7.77%

7.36%
Cost income ratio 67.87 73.90 (6.03)
5.44%

4.83%
4.70%

4.06%
0.35%

Profit after tax to total income 5.44 4.06 1.38

0.21%

Return on assets(ROA) 0.35 0.21 0.14

Return on Return on Profit after Cost income Non-interest Return on
equity (ROE) assets(ROA) tax to total ratio income to Investment
income total income (ROI)
Return on equity (ROE) 7.77 4.70 3.07

e¨v‡jÝkxU ch©v‡jvPbv Review of Balance Sheet

†gvU m¤ú` Total assets

e¨vs‡Ki m¤ú‡`i cwigvY 2022 mv‡ji 1,789,772.29 Total assets of the Bank stood at Tk. 1,981,129.67 million as on 31
wgwjqb UvKv n‡Z 10.69% e„w× †c‡q 2023 mv‡j December 2023 compared to that of Tk. 1,789,772.29 million
as on 31 December 2022 registering a positive growth of 10.72
1,981,129.67 wgwjqb UvKvq DbœxZ n‡q‡Q| g~jZt
percent. The increase in assets of the SBPLC is largely driven by
evsjv‡`k e¨vsK I Gi G‡R›U e¨vs‡K ewa©Z w¯’wZ Ges FY the growth of balance with Bangladesh Bank and its agent Banks
I AwMÖ‡gi cwigvY e„w×i Kvi‡YB m¤ú‡`i G cÖe„w× n‡q‡Q| and a remarkable increase of the Bank’s Loans and Advances.

e¨vs‡Ki †gvU m¤ú‡`i mvi-ms‡ÿc wb¤œiƒct A summary of assets is given below:

(Tk. in million)
2022 2023
Particulars 2023 2022 Growth in %
Cash in Hand
Balance with Bangladesh bank
and its agent Bank Cash in Hand 9939.50 9842.63 0.98
Balance with other Banks and
financial Institution
Money at call and short notice
Balance with Bangladesh
bank and its agent Bank 102942.24 80274.43 28.24
Investments

Loans and advances

Balance with other Banks
Fixed assets
and financial Institution 47936.88 38151.37 25.65
Other assets

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Money at call and
short notice 15217.10 2808.20 441.88
Comparison of Operating Expenses
31% 51% Investments 623541.13 621272.57 0.37
Cash in Hand
Balance with Bangladesh bank
and its agent Bank Loans and advances 1008052.68 846430.23 19.09
Balance with other Banks
and financial Institution Fixed assets 34401.99 33931.89 1.39
Money at call and short notice
1% Investments Others + non banking assets 139098.15 157060.96 (11.44)
1% Loans and advances
5%
1% Fixed assets
7% Total assets 1981129.67 1789772.29 10.69
2% Other assets

nv‡Z bM` I evsjv‡`k e¨vsK I Gi G‡R›U e¨vs‡K e¨v‡jÝ Cash in Hand and Balances with BB and its Agents

31 wW‡m¤^i 2023 Zvwi‡L nv‡Z bM` Ges evsjv‡`k As on 31 December 2023, cash in hand and balances
with Bangladesh Bank and its agent banks stood at Tk.
e¨vsK I Gi G‡R›U e¨vs‡K e¨v‡jÝ Gi cwigvY `uvwo‡q‡Q 112,881.74 million as against Tk. 90,117.06 million as
112,881.74 wgwjqb UvKv, hv c~e©eZ©x eQ‡ii 90,117.06 on 31 December 2022 registering an increase of 25.26
wgwjqb UvKvi Zzjbvq 25.26% †ekx| Gi d‡j e¨vs‡Ki percent. The Cash Reserve Requirement (CRR) should
bM` mwÂwZi (CRR) cwigvY G eQi 5.10% G `uvwo‡q‡Q, be currently maintained at 4.00 percent and SBPLC has
maintained 5.10 percent in the year under review.
hv Kgc‡ÿ 4.00% ivLv eva¨Zvg~jK| ZvQvov wewfbœ

82 ANNUAL REPORT 2023

†Wwjfvix P¨v‡b‡j MÖvnK‡`i Pvwn`v †gUv‡bvi Rb¨ Besides, adequate cash was required to provide
uninterrupted cash services to the growing number of
wbiwew”Qbœ K¨vk mieiv‡niI e¨e¯’v Kiv nq| we¯ÍvwiZ customers through multiple delivery channels. Details
weeiY wbixwÿZ Avw_©K weeiYxi 3 bs †bv‡U wea„Z i‡q‡Q| have been given at notes#3 to the accounts.

Ab¨vb¨ e¨vsK I Avw_©K cÖwZôv‡bi wbKU Mw”QZ A_© Balance with Other Banks and Financial Institutions

e¨vs‡Ki ‡jvb I Bb‡f÷‡g‡›Ui Pvwn`v †gUv‡bv Ges A portion of the excess fund, after meeting the
requirement to finance loan portfolio and investments
SLR G msiÿ‡Yi ci AwZwi³ dv‡Ûi mwVK e¨envi Ges
including SLR, has been placed with other banks and
e¨vs‡Ki gybvdv e„w×i j‡ÿ¨ Ab¨vb¨ e¨vsK I Avw_©K financial institutions as term deposits for optimizing the
cÖwZôv‡b dv‡Ûi GKwU Ask Rgv ivLv nq| †UªRvwi I utilization of fund and profit of the Bank. In addition,
evwY‡R¨ A_©vq‡bi Kvh©µg myôzfv‡e cwiPvjbvi Rb¨ Treasury Management Division of the Bank has to
maintain some special notice deposit (SND) accounts
e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi g¨v‡bR‡g›U wWwfkb and current deposit (CD) accounts with other banks
KZ…©K †`‡k I †`‡ki evB‡i Aew¯’Z Ab¨vb¨ e¨vsK I and financial institutions in and outside the country for
Avw_©K cªwZôv‡b SND Ges PjwZ wnmve cwiPvjbv Kiv smooth functioning of treasury operations and trade
nq| wewb‡qvM Ges FY I AwMÖ‡gi e„w×RwbZ Kvi‡Y Ab¨vb¨ finance. Because of simultaneous increase in investment
and loans and advances, balances outstanding with other
e¨vsK I Avw_©K c&ªwZôv‡b e¨v‡j‡Ýi cwigvY 2022 mv‡ji banks and financial institutions increased to Tk. 47,936.88
38,151.37 wgwjqb UvKv ‡_‡K 25.65% e„w× †c‡q G million in 2023 from Tk. 38,151.37 million in 2022 registering
eQi 47,936.88 wgwjqb UvKvq `uvwo‡q‡Q| Gi g‡a¨ a growth of 25.65 percent. Out of this amount, Tk.
33,772.24 wgwjqb UvKv evsjv‡`‡ki Ab¨vb¨ e¨vsK I 33,772.24 million has been kept in banks and financial
institutions in Bangladesh and the rest amount Tk.
Avw_©K cÖwZôv‡b Ges 14,164.64 wgwjqb UvKv we‡`kx 14,164.64 million has been kept in foreign banks. Details
e¨vs‡K iwÿZ Av‡Q| we¯ÍvwiZ weeiY AwW‡UW wnmv‡ei 4 of balance with other banks and financial institutions are
bs †bv‡U wea„Z i‡q‡Q| given at notes# 4 to the accounts.

¯^í mg‡qi †bvwU‡k cwi‡kv‡ai AvnŸvb‡hvM¨ A_© Money at Call on Short Notice

¯^í mg‡qi †bvwU‡k cwi‡kv‡ai AvnŸvb‡hvM¨ A‡_©i cwigvY Money at call and short notice increased by 441.88
percent to Tk. 15,217.10 million at the end of 2023
2023 mv‡j `uvwo‡q‡Q 15,217.10 wgwjqb UvKv hv c~e©eZ©x compared to Tk. 2,808.20 million at the end of 2022.
eQ‡ii 2,808.20 wgwjqb UvKvi Zzjbvq 441.88% ‡ekx|
Investments
wewb‡qvM
e¨vs‡Ki †gvU wewb‡qvM Gi cwigvY 2022 mv‡ji The Bank’s total investments stood at Tk. 623,541.13 million
in 2023 which was Tk. 621,272.57 million in 2022 meaning
621,272.57 wgwjqb UvKv †_‡K 0.37% e„w× †c‡q 2023
an increase by 0.37 percent. The investments mainly include
mv‡j 623,541.13 wgwjqb UvKvq `uvwo‡q‡Q| Gi g‡a¨ Government securities of Tk. 571,733.54 million or 91.69
D‡jøL‡hvM¨ n‡”Q miKvwi wmwKDwiwU Lv‡Z 571,733.54 percent of total investments maintained as a primary dealer
wgwjqb UvKv wewb‡qvM, hv †gvU wewb‡qv‡Mi 91.69%| in addition to cover SLR requirement. In place of 13 percent
SLR, the Bank has maintained 40.27 percent with Bangladesh
e¨vsK 13% mswewae× Zvij¨ mwÂwZi ¯’‡j 40.27% mwÂwZ
Bank which is an indication of the strength of the Bank.
msiÿY K‡i‡Q, hv e¨vs‡Ki kw³gËvi cwiPvqK|
FY I AwMÖg Loans and Advances
Loans and advances constitute the largest portion in
†mvbvjx e¨vsK K…wl, wkí, GmGgB I evwY‡R¨i Drcv`bkxj asset side of SBPLC’s Balance Sheet which was Tk.
I AMÖvwaKvi Lv‡Z A_©vqb Ae¨vnZ †i‡L‡Q| e¨vs‡Ki †gvU 1,008,052.68 million or 50.88 percent of total assets
m¤ú‡`i eo Ask `Lj K‡i Av‡Q FY I AwMÖg, hvi w¯’wZ in 2023. The Bank’s loans and advances increased by
1,008,052.68 wgwjqb UvKv ev †gvU m¤ú‡`i 50.88% 19.09 percent from Tk. 846,430.23 million in 2022 to
Tk. 1,008,052.68 million in 2023. SBPLC has continued
Ges e„w×i nvi 19.09%| e¨vs‡Ki cÖ`vbK…Z F‡Yi cwigvb its lending operations in productive and priority sectors
2022 mv‡j wQj 846,430.23 wgwjqb UvKv| RvZxq covering agriculture, Industry, SME, trade and commerce.
AMÖvwaKvi gyjK miKvwi, cvewjK I cÖvB‡fU LvZmgy‡n The Bank has extended credit to Government, public
e¨vsK FY myweav cÖ`vb Ki‡Q| e¨vs‡Ki eZ©gvb GwW †iwkI and private sectors in line with national priority. The
percentage of total loans and advances against total
66.93%| 2023 mvj †k‡l ‡kÖwYK…Z FY I AwMÖ‡gi cwigvY deposit (AD ratio) is 66.93%. Details of loans and advances
`uvwo‡q‡Q 133,409.77 wgwjqb UvKv| bb cvidwg©s F‡Yi are given at notes# 7 to the accounts. The amount of
cwigvY 2022 mv‡ji 14.83% †_‡K n«vm †c‡q 13.23% classified loans and advances stood at Tk. 133,409.77

ANNUAL REPORT 2023 83

SONALI BANK PLC

G `uvwo‡q‡Q| we¯ÍvwiZ weeiY wbixwÿZ wnmv‡ei 7 bs †bv‡U million in 2023. Percentage of non-performing loans was
13.23 percent in 2023 which was 14.83 percent in 2022.
wea„Z i‡q‡Q|
LvZ wfwËK †gvU FY I AwMÖg Composition of Total Loans and Advances
(wgwjqb UvKvq) (Tk. in million)
Types of Loans and Change
µ: bs FY I AwMÖ‡gi 2023 2022 cwieZ©b (%) Sl. 2023 2022
LvZmgy‡ni bvg Advances In %
1 K…wl 67514.89 63610.92 6.14 1 Agricultural/Rural Credit 67514.89 63610.92 6.14
2 gvB‡µv †µwWU 10854.53 13241.90 (18.03) 2 Micro Credit 10854.53 13241.90 (18.03)
3 wkí FY 64873.30 76921.93 (15.66) 3 Industrial Credit 64873.30 76921.93 (15.66)
4 K…wlwfwËK wkí cÖKí 13480.12 17688.08 (23.78) 4 Agro-based Industrial 13480.12 17688.08 (23.78)
5 AvšÍR©vwZK evwYR¨ 251339.31 199089.85 26.24 5 International Trade 251339.31 199089.85 26.24
6 Gm Gg B A_©vqb 149378.60 83581.47 78.72 6 SME Finance 149378.60 83581.47 78.72
7 mvaviY FY I Ab¨vb¨ 450611.93 392296.08 14.87 7 General Advance & Others 450611.93 392296.08 14.87

me©‡gvU 1008052.68 846430.23 19.09 Total 1008052.68 846430.23 19.09

bZzb †cÖvWv±: FY I AwMÖg New Products: Loans and Advances

FY I AwMÖg e„w×i j‡ÿ¨ mv¤úªwZK mg‡q e¨vs‡Ki D™¢vweZ To accelerate the rate of credit growth, some new loan/
investment products were introduced by the Bank,
bZzb FY †cÖvWv±¸‡jv n‡jv: (K) evB mvB‡Kj †jvb ¯‹xg
namely (a) Bicycle Loan Scheme for School Going
di ¯‹zj †Mvwqs ÷z‡W›Um (L) ¯§j GÛ wgwWqvg G›UvicÖvBR Students (b) Small and Medium Enterprise (SME) Loan (c)
(GmGgB) †jvb (M) †¯úkvj ¯§j †jvb (N) iæivj ¯§j Special Small Loan (d) Rural Small Farming Loan (e) Rural
dvwg©s †jvb (O) †cvfvwU© Gwjwf‡qkb Gwm÷¨v›U †cÖvMÖvg Small Business Loan (f) Poverty Alleviation Assistance
Programme (g) Probashi Karmasangsthan Rin Prokalpo
(P) cÖevmx Kg©ms¯’vb FY cÖKí (Q) wkÿv FY (R) Rv‡Mv
(h) Education Loan (i) Jago Nari Grameen Rin (j) Term
bvix MÖvgxY FY (S) gyw³‡hv×v FY (T) d‡ib GWz‡Kkb loan to Freedom Fighters (k) Foreign Education Loan
†jvb †cÖvMÖvg (U) nvDR‡nvì wWD‡iej ¯‹xg AvÛvi evB Program (FELP) (l) Household Durable Scheme under
gyqv¾vj †gvW BZ¨vw`| Bai-Muazzal Mode etc.

mvaviY FY General Credits

wewfbœ cvewjK I cÖvB‡fU †m±‡ii cÖwZôvb¸‡jv‡Z FY SBPLC is playing a vital role in the national economy
by extending various credit facilities to both public
myweav cÖ`v‡bi gva¨‡g †mvbvjx e¨vsK RvZxq A_©bxwZ‡Z and private sector organizations and entities. In the
we‡kl Ae`vb †i‡L P‡j‡Q| mvaviY FY Lv‡Z e¨vsK 2023 year 2023, the Bank disbursed loans amounting Tk.
mv‡j †gvU 86,280.80 wgwjqb UvKv FY weZiY K‡i‡Q| 86,280.80 million to the private sector which was Tk.
2022 mv‡j FY weZi‡Yi cwigvY wQj 150,014.70 150,014.70 million in 2022 under general credit head.
On the other hand, classified loans under general
wgwjqb UvKv| G Lv‡Z †kÖwYK…Z FY n‡Z Av`vq n‡q‡Q credit amounting to Tk. 4,827.10 million have been
4,827.10 wgwjqb UvKv hvi cwigvY 2022 mv‡j wQj recovered during the year which was Tk. 4,763.00
4,763.00 wgwjqb UvKv| e¨vs‡Ki mvaviY FY Lv‡Zi million in 2022. A tabular presentation shows the overall
mvwe©K Ae¯’v wb¤œiƒct position of General Credit of the Bank.
(wgwjqb UvKvq) (Tk. in million)

µ: bs wk‡ivbvg 2023 2022 cwieZ©b (%) Sl. Particulars 2023 2022 Change In %

1 †gvU w¯’wZ 304239.30 270990.80 12.27 1 Total Outstanding 304239.30 270990.80 12.27

2 †gvU weZiY 86280.80 150014.70 42.49 2 Total Disbursement 86280.80 150014.70 42.49

3 †gvU Av`vq 4827.10 4763.00 1.35 3 Total Recovery 4827.10 4763.00 1.35

K…wlwfwËK cÖKí FY Agro-based Project Finance Program

mvwe©Kfv‡e †`‡ki †UKmB Av_©-mvgvwRK Dbœq‡bi j‡ÿ¨ As overall socio-economic sustainability, Sonali Bank
PLC has extended credit facilities to the agro-based
†`‡ki K…wl Lv‡Zi Dbœq‡b †mvbvjx e¨vsK wcGjwm K…wlwfwËK industries under agro-based industrial sector financing
cÖKí F‡Yi Aax‡b K…wlwfwËK wk‡í FY myweav cÖ`vb Ki‡Q| scheme. In the year 2023, SBPLC disbursed Tk. 244.10
2023 mv‡j G Lv‡Z e¨vsK me©‡gvU 244.10 wgwjqb UvKv FY million and recovered Tk. 596.90 million including
weZiY K‡i‡Q Ges Ae‡jvcbmn wewfbœ K…wlwfwËK cÖKímgyn write-off loans from different agro-based projects.
The Bank is extending project loan on simple terms
n‡Z 596.90 wgwjqb UvKv Av`vq K‡i‡Q| Av_©-mvgvwRK and conditions through 120 designated branches
Dbœq‡b e¨vsK Zvi mywbw`©ó 120wU kvLvi gva¨‡g mnR k‡Z©

84 ANNUAL REPORT 2023

cÖKí FY cÖ`vb Ki‡Q| ZvQvov e¨vs‡Ki cÖvq mKj kvLv n‡Z for improvement of socio-economic condition.
G cÖK‡íi wkí Lv‡Z 1,175.00 wgwjqb PjwZ gyjab FY Besides, Tk. 1,175.00 million of working capital loans
to industries has been disbursed by almost all the
bevqb Kiv n‡”Q| Zvi g‡a¨ we‡RGgwmÕi Aax‡b 5wU RyU wgj branches throughout the country. It may be mentioned
I 21wU †emiKvix RyU wgj I RyU w¯úwbs wg‡j D‡jøL‡hvM¨ that a large amount of loan has been disbursed to 5
cwigvY FY weZiY Kiv n‡q‡Q| 2023 mvj ch©šÍ G Lv‡Z FY jute mills under BJMC and 21 private jute mills and
w¯’wZi cwigvY 34,334.20 wgwjqb UvKv hv 2022 mv‡j wQj jute spinning mills. The amount of outstanding loan
stood Tk. 34,334.20 million till 2023 which was Tk.
34,665.80 wgwjqb UvKv| 34,665.80 million as on 31 December 2022.

†kÖwYK…Z FY Av`vq Kvh©µg Classified Loan Recovery Program

2023 mv‡j e¨vs‡Ki †kÖwYK…Z F‡Yi cwigvY `uvwo‡q‡Q The amount of classified loan stood at Tk. 133,409.77
133,409.77 wgwjqb UvKv A_©vr e¨vs‡Ki †gvU FY I AwMÖg million which is 13.23 percent of the Bank’s total loan
of Tk. 1,008,052.68 million as on 31 December, 2023.
1,008,052.68 wgwjqb UvKvi 13.23%| 2022 mv‡j The amount of classified loan was Tk. 125,536.74
†gvU 846,430.23 wgwjqb UvKvi FY I AwMÖ‡gi g‡a¨ million (14.83 percent of bank’s total loan) against
125,536.74 wgwjqb UvKv ev 14.83% †kÖwYK…Z wQj| total outstanding loans and advance of Tk. 846,430.23
†kÖYxK…Z I Ae‡jvcbK…Z FY n‡Z 2023 mv‡j Av`v‡qi million in 2022. The amount of recovery against
classified and written off loan in 2023 are Tk. 11,644.40
cwigvY h_vµ‡g 11,644.40 wgwjqb UvKv Ges 666.71 million and Tk. 666.71 million respectively. The Bank
wgwjqb UvKv| eQ‡ii ïiæ‡ZB Av`vjZ ewnfy©Z mgvavb, made all out efforts to recover non-performing loans
ewa©Z my` gIKzd myweav Ges evsjv‡`k e¨vs‡Ki cwjwm I A_© by strengthening recovery measures like outside court
gš¿Yvjq Gi MvBWjvBÝ †gvZv‡eK wiwmwWDjKi‡Yi gva¨‡g settlement, extending interest exemption facilities and
rescheduling as per Bangladesh Bank policies and
bb-cvidwg©s †jvb n‡Z Av`v‡qi Kvh©µg †Rvi`vi Kiv nq| Ministry of Finance’s guidelines.

`vq‡`bvi mvi ms‡ÿc Summary of Liabilities

(wgwjqb UvKvq) (Tk. in million)
µ: bs wk‡ivbvg 2023 2022 cwieZ©b (%) Sl. Particulars 2023 2022 Growth%
Ab¨vb¨ e¨vsK I Avw_©K Borrowings other Banks and
1 17009.48 439.40 3771.07 1 17009.48 439.40 3771.07
financial institutions and agents
cÖwZôvb n‡Z avi
2 Total deposits 1506183.93 1420362.93 6.04
2 †gvU AvgvbZ 1506183.93 1420362.93 6.04
3 Other Liabilities 371377.22 287778.70 29.05
3 Ab¨vb¨ †`bv 371377.22 287778.70 29.05
4 Total Liabilities 1894570.63 1708581.03 10.89
4 †gvU †`bv 1894570.63 1708581.03 10.89

Ab¨vb¨ e¨vsK, Avw_©K cÖwZôvb Ges G‡R›U n‡Z avi Borrowings from other banks, Financial
Institutions and Agents

2023 mv‡j evsjv‡`k e¨vsK Gi cyb:A_©vqb Gi AvIZvq Sonali Bank PLC has been given an amount of
Tk. 17,009.48 million only by Bangladesh Bank of
†mvbvjx e¨vsK wcGjwm‡K 17,009.48 wgwjqb UvKv avi †`qv which Tk. 16,625.00 million as Assured Liquidity
n‡q‡Q| Gi g‡a¨ 16,625.00 wgwjqb UvKv wmwKDwiwUi Support (ALS) against Securities and Tk. 384.48
wecix‡Z Zvij¨ mnvqZv Ges Aewkó 384.48 wgwjqb UvKv cvU million for refinance against jute sector in 2023.
Except these, it has no borrowing inside or
Lv‡Z cyb:A_©vqb Gi Rb¨ avi †`qv n‡q‡Q| GQvov †`‡ki †fZ‡i outside Bangladesh. The borrowed amount was
I evB‡i Ab¨ †Kvb cÖwZôv‡bi wbKU e¨vs‡Ki †Kv‡bv avi †bB| Tk. 439.40 million in 2022.
2022 mv‡j e¨vs‡Ki av‡ii cwigvY wQj 439.40 wgwjqb UvKv|

†mvbvjx e¨vsK wcGjwm Gi †kqvi †nvìvm© BK¨zBwU Shareholders’ Equity of Sonali Bank PLC.
31 wW‡m¤^i 2023 ZvwiL wfwËK e¨vs‡Ki †kqvi †nvìvm© The shareholders’ equity of the Bank stood at Tk.
BKz¨BwU `uvwo‡q‡Q 86,559.04 wgwjqb UvKv hv 31 wW‡m¤^i 86,559.04 million as on 31 December 2023 which was
2022 †Z wQj 81,191.26 wgwjqb UvKv| Tk. 81,191.26 million in 2022.

ANNUAL REPORT 2023 85

SONALI BANK PLC

µt †kqvi †nvìvm© wb¤œewY©Z ZvwiL ch©šÍ Ae¯’v cwieZ©b Position as of

Shareholder's (Tk. in million)
bs BK¨zBwU (wgwjqb UvKvq) (%) Sl. No. Changes
Equity
2023 2022 %
2023 2022
1 cwi‡kvwaZ g~jab 45300.00 45300.00 - 1. Paid-Up Capital 45300.00 45300.00 -
2 mswewae× mwÂwZ 18093.25 16022.48 12.92 2. Statutory reserve 18093.25 16022.48 12.92
Ab¨vb¨ mwÂwZ Ges Other reserve and
3 24133.79 25074.41 (3.75) 3.
Revaluation reserve
24133.79 25074.41 (3.75)
cybtg~jv¨vqb mwÂwZ
4 wi‡UBbW Avwb©sm (968.00) (5205.63) 81.40 4. Retained earnings (968.00) (5205.63) 81.40
Total Shareholder's Equity
†gvU †kqvi‡nvìvi BKz¨BwU 86559.04 81191.26 6.61 86559.04 81191.26 6.61

AvgvbZ Deposits
2022 mv‡ji 1,420,362.93 wgwjqb UvKv n‡Z 6.04% The total deposit of the Bank as on 31 December, 2023
ev 85,821.00 wgwjqb UvKv e„w× †c‡q 2023 mv‡j e¨vs‡Ki was Tk. 1,506,183.93 million showing an i n crea s e
of T k . 8 5,8 2 1.00 mi l l i o n o r 6.04 pe rce nt over
†gvU Avgvb‡Zi cwigvY `uvwo‡q‡Q 1,506,183.93 wgwjqb UvKv|
1,4 2 0,36 2 .9 3 mi l l i o n of the pre ce di ng y ea r.
†gvU Avgvb‡Zi g‡a¨ mePvB‡Z ¸iæZ¡cY~ © PjwZ Avgvb‡Zi cwigvY M o s t i mpo r tantl y, cu r re nt de po s i t and other
2022 mv‡ji 249,564.58 wgwjqb UvKv n‡Z e„w× †c‡q a cco u nt s s t o od at Tk. 249,564.58 million which
244,282.39 wgwjqb UvKvq DbœxZ n‡q‡Q| was Tk. 244,282.39 million in 2022.

LvZIqvix Avgvb‡Zi cwigvY, cÖe„w× I wgkÖY wb‡¤œ cÖ`wk©Z The position of deposit, growth of deposit and deposit mix
n‡jv| are given below:
(wgwjqb UvKvq) (Tk. in million)
µ: bs LvZ 2023 2022 cwieZ©b (%) Sl. Type 2023 2022 Change (%)
PjwZ AvgvbZ I Current Deposit &
1 249564.58 244282.39 2.16 1 249564.58 244282.39 2.16
Ab¨vb¨ Other Accounts

2 wejm †c‡qej 13549.02 14817.25 (8.56) 2 Bills payables 13549.02 14817.25 (8.56)
Savings
3 mÂqx AvgvbZ 636606.89 587362.19 8.38 3 636606.89 587362.19 8.38
Deposits
†¯úkvj †bvwUk
4 198389.01 167071.22 18.75 4
Special Notice
198389.01 167071.22 18.75
wW‡cvwRU (SND) Deposit (SND)
wd·W wW‡cvwRU Fixed Deposits (Including
5 408074.43 406830.08 0.31 5 408074.43 406830.08 0.31
(wW‡cvwRU ¯‹xg mn) Deposit Schemes)
†gvU 1506183.93 1420362.93 6.04 Total 1506183.93 1420362.93 6.04

g~jZ †`ke¨vcx we¯Í…Z kvLv, AbjvBb †mev Pvjyi gva¨‡g The growth in deposits was attributed to largest
MÖvnK †mevi gv‡bvbœqb, GwUGg mvwf©m PvjyKiY Ges branch network, improvement of service standard
by introducing online banking, expanding ATM
†iwgU¨v‡Ýi UvKv‡K wePÿYZvi mv‡_ ¯^í‡gqvw` I `xN©‡gqvw` networks and efficient channeling of remittance
Avgvb‡Z iƒcvšÍi Ges bZzb AvgvbZ †cÖvWv± cÖeZ©‡bi which was partially converted into short and long
Kvi‡YB Avgvb‡Zi G cÖe„w× N‡U‡Q| c~‡e©i eQi¸‡jvi term deposits, launching new deposit products.
As in previous year, savings deposit constitut-
b¨vq 2023 mv‡jI Avgvb‡Zi g~j LvZ mÂqx Avgvb‡Zi ed of the main component of the deposit item
cwigvY 636,606.89 wgwjqb UvKv hv 2022 mv‡ji stood at Tk. 636,606.89 million which was Tk.
587,362.19 wgwjqb n‡Z 8.38% e„w× †c‡q‡Q Ges GwU 587,362.19 million in 2022 meaning 8.38 percent
growth and accounted for 42.27 percent of the
g~j Avgvb‡Zi 42.27%| wd·W wW‡cvwR‡Ui cwigvY †gvU total deposits. After savings deposit, fixed deposit
Avgvb‡Zi 27.09% ev 408,074.43 wgwjqb UvKv| GQvov stood at Tk. 408,074.43 which was 27.09 percent
wejm †c‡qej Ges †¯úkvj †bvwUk wW‡cvwR‡Ui cwigvb of total deposits. Bills payable and Special Notice
deposits stood at Tk. 13,549.02 million and Tk.
2022 mv‡j wQj h_vµ‡g 14,817.25 wgwjqb UvKv I 198,389.01 million respectively in 2023 which was
167,071.22 wgwjqb UvKv, hv 2023 mv‡j `uvwo‡q‡Q h_ Tk. 14,817.25 million and Tk. 167,071.22 million in
vµ‡g 13,549.02 wgwjqb I 198,389.01 wgwjqb UvKv| 2022 meaning 8.56 percent decrease and 18.75
percent increase respectively.
n«vm I e„w×i nvi h_vµ‡g 8.56% I 18.75%|

86 ANNUAL REPORT 2023

Avg`vwb-ißvwb Import and Export
2023 mv‡j e¨vs‡Ki Avg`vwb I ißvwb e¨emvq A_©vq‡bi The total import and export businesses handled by
cwigvY h_vµ‡g 467,313.10 wgwjqb UvKv Ges 20,214.70 the Bank in 2023 stood at Tk. 467,313.10 million and
Tk. 20,214.70 million respectively compared to Tk.
wgwjqb UvKv| c~e©eZ©x eQ‡i Gi cwigvY wQj h_vµ‡g
436,769.20 million and Tk. 25,988.40 million respectively
436,769.20 wgwjqb UvKv Ges 25,988.40 wgwjqb UvKv| in 2022. The total amount of foreign exchange
ˆe‡`wkK †iwgU¨vÝmn †gvU ˆe‡`wkK †jb‡`‡bi cwigvY transactions handling including foreign remittance
2023 mv‡j `uvwo‡q‡Q 724,014.90 wgwjqb UvKv| 2022 of the Bank for the year 2023 stood at Tk. 724,014.90
million which was Tk. 647,887.30 million in 2022.
mv‡j Gi cwigvb wQj 647,887.30 wgwjqb UvKv|
2023 I 2022 mv‡ji AvšÍRv© wZK e¨emv‡qi Zzjbvg~jK wPÎ Comparative Foreign Trade Position during 2023 and 2022:
(Tk. in million)
2022 2023
Sl. Particulars 2023 2022 Change (%)
467313.10

1 Total Import 467313.10 436769.20 6.99

436769.20

150174.40
109209.70

86312.70

75920.00

2 Total Export 20214.70 25988.40 (22.22)

20214.70
25988.40

3 Inward Remittance (including WES) 86312.70 109209.70 (20.97)

4 Outward Remittance (including WES) 150174.40 75920.00 97.81

Total Import Total Export Inward Outward
Remittance Remittance Total 724014.90 647887.30 11.75
(including WES) (including WES)

jf¨vsk †NvlYv Dividends and Stock Dividend

Retained Earnings FYvZ¥K I g~jab NvUwZ _vKvq c~e©eZ©x Like previous year, no dividend is declared by the Bank
for the year 2023 because of prevailing negative retained
eQ‡ii b¨vq G e¨vsK KZ©„K 2023 mv‡ji Rb¨ †Kv‡bv jf¨vsk earning balance and capital shortfall.
†NvlYv Kiv nqwb|
Ad-e¨v‡jÝ kxU G·‡cvRvim Off- Balance Sheet Exposures

2023 mvj †k‡l e¨vs‡Ki Off-Balance Sheet Exposures At the end of 2023, total outstanding amount of
Gi cwigvY 2022 mv‡ji 766,878.37 wgwjqb UvKv n‡Z off-balance sheet exposures of the Bank stood at
Tk. 756,896.89 million compared to Tk. 766,878.37
n«vm †c‡q 756,896.89 wgwjqb UvKvq `uvwo‡q‡Q| million for the year 2022.
Ad-e¨v‡jÝ kxU G·‡cvRvim Gi mvims‡ÿc wb¤œiƒct The summary of off-balance sheet exposures is
shown below:
(wgwjqb UvKvq) (Tk. in million)
cwigvY Position as of
weeiY Particulars
2023 2022 2023 2022
e¨vsK M¨vivw›U 4323.83 5510.48 Letter of guarantee 4323.83 5510.48
AcwieZ©bxq FYcÎ 745583.56 752557.17 Irrevocable letter of credit 745583.56 752557.17
wej di Kv‡jKkb 5271.25 8810.72 Bills for collection 5271.25 8810.72
Ab¨vb¨ KbwUb‡RwÝ `vq 1718.25 - Other contingencies liabilities 1718.25 -
†gvU 756896.89 766878.37 Total 756896.89 766878.37

`xN©‡gqv`x ‡ckvMZ `ÿZv Dbœq‡b gvbe m¤ú` cwiKíbv HR policies are designed to long-term career growth
`xN©‡gqv`x wek¦vm I m¤úK©- G `ywU KvVv‡gv‡K wfwË K‡i e¨vswKs SBPLC’s HR policies, based on trust and relationship, are
‡ckvq †ckvMZ `ÿZv AR©‡bi j‡ÿ¨ †mvbvjx e¨vs‡K gvbe m¤ú` to look after people who want to make a long-term career
with the Bank because trust and relationship are built over
Dbœqb cwiKíbv MÖnY Kiv n‡q‡Q| e¨vs‡Ki 53 eQ‡ii †ckvMZ time. The corporate culture at SBPLC over last 53 years is
cwi‡ek Kg©xevwnbxi AšÍwb©wnZ ˆewkó¨ cÖKv‡ki h‡_ó my‡hvM m„wó such that the members and the staff have ample opportu-
K‡i‡Q hvi gva¨‡g Zviv D‡`¨vMx n‡q Ges `vwqZ¡ wb‡q wb‡R‡`i nities to take initiatives and responsibilities to unleash their
hidden potential to maximize benefits for themselves and

ANNUAL REPORT 2023 87

SONALI BANK PLC

I mgv‡Ri DbœwZi Rb¨ KvR Ki‡Z cv‡i| e¨vsK g¨v‡bR‡g›U for the society. The challenge is to maintain a business like,
committed corporate culture that matches SBPLC’s mis-
Ges Kg©xevwnbx h_vh_fv‡e `vwqZ¡ cvj‡bi ga¨ w`‡q djvdj sion. Achieving results and taking responsibility are import-
AR©‡bi j‡ÿ¨ GKm‡½ cvi¯úwiK `vwqZ¡ mnKv‡i Kg©m¤úv`b ant components of the culture we pursue, one in which
K‡i _v‡K| e¨vs‡Ki cl©` bvix-cyiæl wbwe©‡k‡l Kg©`ÿZv I gvbe management and staff work together and are mutually
accountable. Ensuring equal opportunities irrespective of
m¤ú` Dbœq‡bi j‡ÿ¨ †ek wKQz cÖkvmwbK bxwZ MÖnY K‡i‡Qb| gender, the Board of Directors of the Bank has already ad-
Zvi g‡a¨ D‡jøL‡hvM¨ n‡jv: ms‡kvwaZ AM©v‡bvMÖvg, bZzb mvwf©m opted a number of administrative policies focusing on im-
iæj, ‡hvM¨Zvi wfwˇZ c‡`vbœwZ, ¯^”Q wb‡qvM I e`jx cÖwµqv, provement of skills and performance of human resources.
Notable among them includes: revised organogram, new
Kg©KZv©-Kg©Pvix‡`i Kj¨vY I `ÿZv AR©‡b ch©vß cÖwkÿY service rules, performance based promotion, transparent
myweav BZ¨vw`| eZ©gv‡b †mvbvjx e¨vs‡Ki †gvU Rbe‡ji cwigvY posting and transfer, employee’s welfare, training activities
18,257 Rb| Gi g‡a¨ Kg©KZ©v I Kg©Pvixi msL¨v h_vµ‡g and skill development. Currently, SBPLC is having manpow-
er strength of 18,257 of which 16,768 are officers and 1,489
16,768 Rb I 1,489 Rb| 2023 mv‡j e¨vsK Zvi gvbe are staff. In 2023, the Bank has invested Tk. 63.72 million to
m¤ú`‡K Drcv`bgyLx wn‡m‡e M‡o †Zvjvi Rb¨ 63.72 wgwjqb turn its human resources into a productive workforce.
UvKv wewb‡qvM K‡i‡Q|
evsjv‡`k e¨vs‡Ki mv‡_ ¯^vÿwiZ MOU Gi Status of Memorandum of Understanding
wb‡`©kbv I djvd‡ji me©‡kl cwiw¯’wZ (MOU) with Bangladesh Bank

weMZ 2013 mv‡ji 3 b‡f¤^i evsjv‡`k e¨vs‡Ki mv‡_ With Bangladesh Bank, SBPLC signed a Memorandum
of Understanding (MOU) on 3 November, 2013 containing
†mvbvjx e¨vsK wcGjwm Gi AwW‡UW e¨v‡jÝkxU h_vmg‡q some conditions for compliance such as submission
Dc¯’vcb, FY I AwMÖ‡gi cÖe„w× wbw`©ó gvÎvq mxgve×KiY, of audited balance sheet, limiting growth of loans and
cwiPvjb e¨q n«vmKiY, †kÖwYweb¨vwmZ F‡Yi wecix‡Z jÿ¨ advances, minimizing operating expenses, achievement
of recovery target against classified loans, ensuring proper
†gvZv‡eK Av`vq, FY I AwMÖ‡gi ch©vß gwbUwis wbwðZKiY, monitoring of loans and advances, improvement of risk
wi¯‹ g¨v‡bR‡g‡›Ui Dbœqb, kxl© 20 FY †Ljvwc †_‡K Av`vq management, recovery of loans from top 20 loan defaulters
Ges Ab¨vb¨ cÖfve m¤^wjZ GKwU Memorandum of Under- and others leverages.
standing (MOU) ¯^vÿwiZ nq|

e¨vs‡Ki wbixwÿZ Avw_©K weeiYx 2023 wba©vwiZ mg‡qi The audited Balance Sheet of 2023 was submitted
to Bangladesh Bank within the deadline. The annual
g‡a¨B evsjv‡`k e¨vs‡K Dc¯’vcb Kiv n‡q‡Q| FY I AwMÖ‡gi growth of loans and advances and increase in operating
cÖew„ × Ges cwiPvjb e¨‡qi e„w× MOU G D‡jøwLZ mxgvi g‡a¨B mxgve× expenses were within the limit of the memorandum.
wQj| ‡kÖYxK…Z FY n‡Z Av`v‡qi cwigvY wba©vwiZ 63,561.60 The recovery target from classified loans in 2023 was set
at Tk. 63,561.60 million but total cash recovery was Tk.
wgwjqb UvKvi ¯’‡j bM` Av`vq n‡q‡Q 5,674.90 wgwjqb UvKv 5,674.90 million and other than cash was Tk. 5,969.50
Ges bM` e¨ZxZ Av`vq n‡q‡Q 5,969.50 wgwjqb UvKv| million.

GQvov MOU G D‡jøwLZ kZ©vbyhvqx †µwWU wi¯‹ g¨v‡bR‡g›U According to the terms and conditions of MOU, Credit
Policy, Credit Risk Management Policy and Loan
kw³kvjxKi‡Yi j‡ÿ¨ †µwWU cwjwm, †µwWU wi¯‹ g¨v‡bR‡g›U Review Policy have been revised to improve credit risk
cwjwm Ges †jvb wiwfD cwjwm ch©v‡jvPbvc~eK© ms‡kvab K‡i management and the revised policy has been submitted
Ges ms‡kvwaZ cwjwm evsjv‡`k e¨vs‡K `vwLj Kiv n‡q‡Q to Bangladesh Bank. Actions set out in the policy are
being implemented accordingly. Besides, effective steps
Ges Z`vbyhvqx Kvh©µg cwiPvjbv Kiv n‡”Q| ZvQvov, Ab¨vb¨ have also been taken to update management of other
†Kvi wi¯‹ Gi DbœwZK‡í Kvh©Ki e¨e¯’v MÖnY Kiv n‡”Q| core risks.

evwl©K Kg©m¤úv`b Pzw³ Annual Performance Agreement-APA

`ÿ, AšÍf©yw³g~jK, AvaywbK cÖhyw³ wbf©i, m„wókxj Sonali Bank PLC, dedicated to the socio-economic
development of the country, is relentlessly
Ges Revew`wnZvg~jK e¨vswKs †mevi gva¨‡g †`‡ki working as the leading bank through efficient,
Av_©mvgvwRK Dbœq‡b wb‡ew`Z †bZ„Z¡ cÖ`vbKvix e¨vsK inclusive, modern technology based, creative and
wn‡m‡e †mvbvjx e¨vsK wbijmfv‡e KvR K‡i hv‡”Q| accountable banking services. A performance
ivóª gvwjKvbvaxb evwYwR¨K e¨vsK¸‡jvi Performance contract was introduced in 2015 by the Financial
m‡šÍvlRbK ch©v‡q DbœxZKi‡Yi gva¨‡g iƒcKí 2021 Gi Institutions Division of the Ministry of Finance of the
People’s Republic of Bangladesh to achieve “Vision
h_vh_ ev¯Íevqb Gi j‡¶¨ MYcÖRvZš¿x evsjv‡`k miKvi 2021” through Improving the performance of the
Gi A_© gš¿Yvj‡qi Avw_©K cÖwZôvb wefvM 2015 mvj n‡Z state owned commercial banks of Bangladesh at

88 ANNUAL REPORT 2023

ivóª gvwjKvbvaxb e¨vsK¸‡jvi mv‡_ Performance Contract a satisfactory level. The performance contract
was named as Key Performance Indicators (KPIs)”
cÖeZ©b K‡i| Ryb, 2016 ch©šÍ Performance Contract
till June 2016. Afterwards, as part of successful
wU ÒKey Performance Indicators (KPIs)Ó bv‡g AwfwnZ implementation of the Government’s National Plans
wQj| cieZ©x‡Z miKv‡ii RvZxq cwiKíbvmg~n (†cÖwÿZ (Perspective Plan 2021-2041, 8th Five Year Plan
cwiKíbv 2021-2041, Aóg cÂevwl©K cwiKíbv 2021- 2021-2025, Sustainable Development Goals 2030
2025, †UKmB DbœqY jÿ¨gvÎv 2030 BZ¨vw`) Gi mdj etc.), a financial year based agreement named
“Annual Performance Agreement (APA)” replacing
ev¯Íevq‡bi Askx`vi wn‡m‡e weMZ 2016 mvj n‡Z A_©
the “Key Performance Indicators (KPIs)” has been
gš¿Yvj‡qi Avw_©K cÖwZôvb wefv‡Mi mv‡_ G e¨vs‡Ki ÒKey signed between the Financial Institutions Division of
Performance Indicators (KPIs)Ó Pzw³wUi cwie‡Z© A_©eQi the Ministry of Finance and Sonali Bank PLC since
wfwËK evwl©K Kg©m¤úv`b Pzw³ (Annual Performance 2016.
Agreement-APA) ¯^vÿwiZ n‡q Avm‡Q|

The tenure of Annual Performance Agreement for the

2022-23 A_©eQ‡ii evwl©K Kg©m¤úv`b Pyw³i †gqv`Kvj MZ fiscal year 2022-23 expires on June 30, 2023. In the
30 Ryb, 2023 Zvwi‡L mgvß nq| 2022-23 A_©eQ‡ii evwl©K final evaluation of the Annual Performance Agreement
Kg©m¤úv`b Pyw³i (APA) P~ovšÍ g~j¨vq‡b Avw_©K cÖwZôvb wefv‡Mi (APA), Sonali Bank ranked first among all state-owned
commercial banks under the Financial Institutions
AvIZvaxb mKjivóª gvwjKvbvaxb evwYwR¨K e¨vsKmg~‡ni g‡a¨
Division with a score of 98.45%. Mentionable that in
†mvbvjx e¨vsK wcGjwm 98.45% b¤^i ‡c‡q 1g ¯’vb AR©b K‡i| the fiscal year 2021-22, the Bank secured first place
D‡jøL¨, 2021-22 A_©eQ‡iI Avw_©K cÖwZôvb wefv‡Mi AvIZvaxb among all state-owned commercial banks, insurance
mKj ivóª gvwjKvbvaxb evwYwR¨K e¨vsK, exgv I Ab¨vb¨ Avw_©K and other financial institutions under the Financial Institutions
cÖwZôv‡bi g‡a¨ †mvbvjx e¨vsK wcGjwm 1g ¯’vb AR©b K‡i| Division.

e¨vs‡Ki cl©` mfvq g~j¨evb w`K-wb‡`©kbv Ges e¨e¯’vcbv Valuable directions of Board of Directors and close
monitoring of management authority are boosting
KZ©„c‡ÿi wbweo Z`viwK‡Z APA 2023-24 Gi mKj up the urge of all level officers to achieve predefined
Kg©m¤úv`b m~P‡Ki wecix‡Z j¶¨gvÎvmg~n AR©‡bi wbwgË target against all Key Performance Indicators of APA
e¨vs‡Ki mKj ch©v‡qi Kg©KZ©ve„›` m‡Pó i‡q‡Q| 2023-24.

A_© gš¿Yvj‡qi wb‡`©kbv Abyhvqx Kg©m¤úv`b m~PK Achievement evaluation reports against the targets
mg~‡ni j¶¨gvÎvi wecix‡Z AR©b g~j¨vqY cÖwZ‡e`b in various criteria are being submitted quarterly, half
yearly and annual basis in the APAMS of the Ministry
cÖwZ ‰ÎgvwmK, Aa©-evwl©K Ges evwl©K wfwˇZ APAMS of Finance as per direction.
software G AšÍfy©³ K‡i A_© gš¿Yvj‡q ‡cÖwiZ n‡”Q|

RvZxq ‡KvlvMv‡i Ae`vb Contribution to National Exchequer

†mvbvjx e¨vsK wcGjwm miKv‡ii ivR¯^ Avni‡Y ¸iæZ¡c~Y© Sonali Bank plays an important role in assisting the
f~wgKv cvjb K‡i _v‡K| e¨vsK Zvi wbR¯^ Av‡qi Dci Government in revenue collection. The Bank pays
AvqKi I f¨vU cwi‡kva K‡i _v‡K| ZvQvov e¨vsK Zvi tax and value added tax (VAT) on its own income.
MÖvnK, mieivnKvix‡`i wbKU n‡Z AvnwiZ AvqKi, f¨vU I Besides, SBPLC collects income tax, VAT, tax at
source from clients and suppliers and deposits the
Dr‡m Ki miKvwi †KvlvMv‡i Rgv K‡i _v‡K| 2023 mv‡j same to the national exchequer. During 2023, the
e¨vsK AwMÖg Ki, Dr‡m Ki Ges f¨vU eve` †gvU 14,170.96 Bank deposited a total of Tk. 14,170.96 million as
wgwjqb UvKv miKvwi †KvlvMv‡i Rgv K‡i‡Q| c~e©eZ©x eQ‡i advance tax, tax at source and VAT to the national
exchequer which was Tk. 13,025.27 million in 2022.
Gi cwigvY wQj 13,025.27 wgwjqb UvKv| D‡jøL¨, RvZxq In 2021, Sonali Bank has been awarded one of the
ivR¯^ †evW© Gi e„nr Ki cÖ`vb BDwbU KZ©„K 2020-21 Ki “Highest Vat Payers” by Large Tax Payers Unit (Vat) of
eQ‡i 2021 mv‡j †mvbvjx e¨vsK wcGjwm Òm‡e©v”P f¨vU National Board of Revenue (NBR) for the assessment
year 2020-21.
cÖ`vbKvixÓ cÖwZôvb cyi¯‹vi AR©b K‡i|

ANNUAL REPORT 2023 89

SONALI BANK PLC

Contribution on National Exchequer (Tk. in million)

Sl. Particulars 2023 2022
2022 2023
01. VAT on Commission 860.00 789.40

VAT on Commission
02. VAT on Rent on bank building 96.76 94.64

VAT on Rent on bank building 03. VAT on Various Expenses 147.27 200.56
VAT on Various Expenses 04. Source tax on L/C commission 137.65 95.51
Source tax on L/C commission
05. Source tax on buying house commission 34.95 23.70
Source tax on buying
house commission
06. Source Tax on Interest paid by bank 6594.32 5220.91
Source Tax on Interest paid
by bank
07. Source Tax on Cash subsidy on export 80.12 133.71
Source Tax on Cash subsidy
on export

Source Tax on Export Proceed

08. Source Tax on Export Proceed 255.36 258.86

Excise duty 09. Excise duty 2980.00 2986.45

Employees tax 10. Employees tax 88.46 71.36
Tax deducted at source
11. Tax deducted at source 2562.68 2281.66
Advance tax paid
12. Advance tax paid 200.00 750.00
Tax paid on car
13. Tax paid on car 6.00 5.60
Tax on Various Expenses
and others
14. Tax on Various Expenses and others 127.39 112.91
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total 14170.96 13025.27

cÖe„w×i c~e©vfvm Growth Prospects

evsjv‡`‡ki e¨vswKs Lv‡Z eZ©gv‡b ‡`kx-we‡`kx e¨vsK¸‡jvi The banking industry in Bangladesh has been experiencing
tough competition amongst the local and foreign banks.
g‡a¨ Zxeª cÖwZ‡hvwMZv cwijwÿZ n‡”Q| †cÖvWv‡±i eûgyLxKiY I
The banking and financing needs of the corporate, retail,
e¨vswKs Lv‡Z A‡Uv‡gk‡bi we¯Íw… Zi gva¨‡g K‡c©v‡iU, wi‡UBj, SME trade and other customers are met through
GmGgB evwYR¨ I Ab¨vb¨ MÖvnK‡`i A_©vqb I e¨vswKs myweav diversification of products and extending automated
banking services. The business trend up to 2023 shows
cÖ`vb Kiv n‡”Q| 2023 mv‡j †mvbvjx e¨vsK wW‡cvwRU AvniY,
marked improvement in the areas of deposit mobilization,
FY I AwMÖg, ewnt †iwgU¨vÝ cÖevn, wewb‡qvM BZ¨vw` †ÿ‡Î loans and advances, outward remittance and investment as
D‡jøL‡hvM¨ AMÖMwZ mvab K‡i‡Q| mvgwMÖK P¨v‡jÄ †gvKv‡ejvi well. To face the overall challenge, SBPLC is strengthening its
delivery channel, adoption of technology, business
j‡ÿ¨ e¨vsK Zvi †Wwjfvix P¨v‡bj, †UK‡bvjwR, e¨emv Dbœqb,
promotion, product diversification, human resource
†cÖvWv‡±i eûgyLxKiY, gvbe m¤ú` Dbœqb, kvLv †bUIqv‡K©i development, optimum use of branch network and
m‡e©v”P e¨envi Ges cÖvwZôvwbK mvgvwRK `vqe×Zvi g‡Zv Corporate Social Responsibility (CSR). To meet the
demand of our clients, SBPLC has taken membership of
welqMy‡jv‡K kw³kvjx Ki‡Q| MÖvnK‡`i wbivc` I DbœZ GwUGg
VISA and introduced VISA card to ensure safe and modern
mvwf©m cÖ`v‡bi j‡ÿ¨ †mvbvjx e¨vsK wcGjwm VISA Gi m`m¨c` ATM related services. Help Desk at Card Division, Head Office
MÖnY K‡i wfmv KvW© mvwf©m Pvjy K‡i‡Q| G †ÿ‡Î cÖavb Kvh©vj‡qi is dedicated to ensure customer service.
KvW© wWwfkb wbiwew”Qbœ MÖvnK †mev cÖ`v‡b wb‡ew`Z|
bZzb P¨v‡jÄmg~n Ges Zv †gvKv‡ejvq Kg©‡KŠkj New Challenges and Coping Strategies
wek^ A_©bxwZ‡Z `ªæZ cwieZ©‡bi Kvi‡Y e¨vsK I Avw_©K In the backdrop of fast changing global economic
scenario, the banking sector as a whole is facing emerging
cÖwZôvb wbZ¨ bZzb P¨v‡j‡Äi m¤§yLxb n‡”Q| Gi g‡a¨ new challenges. These include among others, meeting the
i‡q‡Q MÖvnK I †÷K‡nvìvi‡`i Pvwn`v †gUv‡bv, bZzb demands of clients and stakeholders at large, innovation
e¨vswKs †cÖvWv± D™¢veb, Avw_©K m¤ú`‡K Drcv`bkxj Lv‡Z of new banking products, channeling financial resources
to productive sectors, working out new mechanisms for
¯’vbvšÍiKiY, gvwbjÛvwis Kvh©µg cÖwZ‡iv‡a Kg©cš’v D™¢veb, carrying out anti-money laundering activities, penetration
`yb©xwZ cÖwZ‡iva Ges †mevi gv‡bvbœq‡b Z_¨ cÖhyw³i cÖPjb, of information technology to combat corruption and
cÖwZwbqZ AvMZ SzuwK jvN‡e †KŠkj cÖYqb Ges MÖvnK‡`i improve service delivery, designing appropriate strategies to
mitigate emerging risks and ensuring control environment
Pvwn`v iÿvq myôz cwi‡ek wbwðZKiY D‡jøL‡hvM¨| to protect the interest of clients.
bZzb P¨v‡jÄ †gvKv‡ejvq †mvbvjx e¨vsK wcGjwm K…wl, To cope with these new and emerging challenges, Sonali
K…wlfwËK wkí cÖKí, Avg`vwb cwic~iK cÖKí, GmGgB Bank PLC has laid emphasis on agriculture, agro-industries,
import substitution projects, SME-based energy projects and
wfwËK Ges Kg©ms¯’vb m„wóKvix cÖKímgy‡n we‡klfv‡e bRi

90 ANNUAL REPORT 2023

w`‡”Q| e¨vsK mgv‡Ri wewfbœ †kÖYxi MÖvnK‡`i Rb¨ bZzb bZzb other employment generating activities. It has launched new
†cÖvWv± D™¢veb K‡i‡Q| cÖwZ‡hvwMZvgyjK evRv‡i wb‡R‡`i products for different sections of the community. To sustain
its position in the competitive market, all of 1,230 local
Ae¯’vb a‡i ivLvi j‡ÿ¨ MÖvnK‡mevi gv‡bvbœq‡b B‡Zvg‡a¨ branches of the Bank has been taken to automation with
e¨vs‡Ki ‡`kxq 1,230wU kvLvi me¸‡jv‡KB wmweGm Gi CBS installation successfully to provide improved customer
AvIZvq Avbv n‡q‡Q| GQvov ˆe‡`wkK †iwgU¨vÝ Avni‡Yi services. Besides, a web-based software developed in-house
j‡ÿ¨ e¨vs‡Ki wbR¯^ D™¢vweZ ÔÔ†iwgU¨vÝ g¨v‡bR‡g›U wm‡÷g called “Remittance Management System Plus” (RMSPlus)
has been installed at 1,230 branches for receiving foreign
cøvm (AviGgGm cøvm)ÕÕ 1,230wU kvLv‡ZB Bb÷j Kiv remittances. Inland and foreign remittance transactions are
n‡q‡Q| Af¨šÍixY I ‰e‡`wkK †iwgU¨vÝ GB wm‡÷‡gi gva¨‡g now carried out using this system. The capacity building of
cwiPvwjZ n‡”Q| Kg©KZ©v-Kg©Pvix‡`i Kg©`ÿZv e„w× e¨vs‡Ki employees has been identified as the major reform agenda.
wPwýZ gyL¨ D‡`¨vM| G j‡ÿ¨ Kg©xevwnbxi `ÿZv I Kg©ÿgZv The Bank has been continuing its efforts to improve the
efficiency of employees and effectiveness of service delivery
e„w×i Rb¨ e¨vsK wbqZ cÖ‡Póv Pvwj‡q hv‡”Q| mechanism.

e¨vswKs e¨emvq g~ jab ch© vßZv AZ¨šÍ My i æZ¡ c ~ Y © | eZ© g v‡b Maintaining adequate capital is very important in banking
business. Currently there is a considerable surplus of
e¨vs‡Ki g~j ab wKQz U v m‡šÍ vlRbK ch© v‡q i‡q‡Q| g~ j ab capital in the Bank. To maintain the surplus capital, bank
m‡šÍvlRbK ch© v‡q ivLvi j‡ÿ¨ e¨vsK †kÖ wYK… Z F‡Yi has undertaken a number of steps like bringing down
nvi GK As‡K bvwg‡q Avbv, Avq evov‡bv, Ae‡jvcbK… Z the percentage of classified loans to a single digit, raising
FY †_‡K Av`vq, bb-dv‡ÛW e¨emv n‡Z Avq e„ w ×mn income to a satisfactory level, recovery of written-off
wewfbœ Kvh©µg nv‡Z wb‡q‡Q| D™¢ ‚ Z Sz u wK †gvKv‡ejvq loans, increasing income from non funded business
e¨vsK MvBWjvBb cÖ `vb K‡i‡Q Ges EaŸ© Zb I ga¨g and so on. To mitigate the emerging risks, the Bank has
introduced guidelines for this purpose and has been
ch©v‡qi wbe©vnx‡`i cÖ wkÿY cÖ `vb Ki‡Q| providing training to senior and mid-level executives.

AwWUi wb‡qvM Appointment of Auditors

û`v fvwm †PŠayix GÛ †Kvs Ges nvIjv`vi BDbym GÛ Hoda Vasi Chowdhury & Co. and Hawladar Yunus &
†Kvs, PvUvW© GKvD›U¨v›Um dvg©Øq e¨vs‡Ki 2023 mv‡ji Co., Chartered Accountants, carried out the audit of the
Bank in 2023. Audit firms will be appointed for 2024 in
wbixÿv Kvh©µg m¤úbœ K‡i‡Q| e¨vs‡Ki Avmbœ 17Zg the upcoming 17th Annual General Meeting.
evwl©K mvaviY mfvq 2024 mv‡ji wbixÿv Kvh©µg m¤ú‡bœi
Rb¨ AwWU dvg© wb‡qvM Kiv n‡e|
K…ZÁZv ¯^xKvi Acknowledgements
e¨vs‡Ki cwiPvjbv cl© ` Gi m`m¨MY e¨vs‡Ki The members of the Board of Directors of the Bank
AvgvbZKvix, FYMÖ nxZv, c„ ô ‡cvlK, ïfvby a¨vqx, wbixÿK would like to place on record their gratitude to the
depositors, customers, patrons, well-wishers, auditors
I Ab¨vb¨ ¯^v_© mswkø ó‡`i wbKU Zu v‡`i Ae¨vnZ mg_© b I
and other stakeholders for their continued support
mn‡hvwMZvi Rb¨ K… ZÁZv Ávcb Ki‡Q| Zu v‡`i µgvMZ and cooperation, without which the Bank would
mg_©b, mn‡hvwMZv I w`K wb‡`© kbvq e¨vsK G Ae¯’ v ‡b not have been able to make progress. We are also
†cuŠQv‡Z ‡c‡i‡Q| Avgiv evsjv‡`k miKv‡ii we‡klZt indebted to the Financial Institutions Division of the
A_© gš¿Yvj‡qi Avw_© K cÖ wZôvb wefvM, evsjv‡`k e¨vsK, Ministry of Finance, Bangladesh Bank, Bangladesh
evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ Kwgkb, Awdm Ae Securities and Exchange Commission, Office of
`¨v †iwR÷ªvi Ae R‡q›U ÷K †Kv¤úvbxR GÛ dvg© m Ges the Registrar of Joint Stock Companies and Firms
mswkøó miKvwi ms¯’ vi wbKU Zv‡`i Ae¨vnZ mg_© b I and other relevant government agencies for their
cooperation and guidance.
civgk© `v‡bi Rb¨ K… ZÁZv Rvbvw”Q|
e¨vs‡Ki mvwe©K DbœwZK‡í wPd Gw·wKDwUf Awdmv‡ii The unrelenting efforts put in by senior management
†bZ…‡Z¡ wmwbqi g¨v‡bR‡g›Umn e¨vs‡Ki mKj ¯Í‡ii team and the members of staff under the leadership
of the Chief Executive Officer to bring about overall
Kg©KZ©v-Kg©PvixM‡Yi AvšÍwiK wbijm cÖ‡Póv we‡klfv‡e
improvement in the Bank’s business performance
cÖksmvi `vex iv‡L| deserve special appreciation.

cwiPvjbv cl©` Gi c‡ÿ On behalf of the Board of Directors

(wRqvDj nvmvb wmwÏKx) (Ziaul Hasan Siddiqui)

†Pqvig¨vb Chairman

ANNUAL REPORT 2023 91

SONALI BANK PLC

CORPORATE GOVERNANCE REPORT

Sonali Bank PLC (SBPLC) was registered as a Public Limited Company under the Companies Act, 1994 on 03 June, 2007
with the Registrar of Joint Stock Companies and Firms. Bangladesh Bank issued Banking License on 05 June, 2007
under the Bank Company Act, 1991 (amended in 2023). SBL took over the business of Sonali Bank on 15 November,
2007 with all its assets, liabilities, benefits, rights, powers, authorities, privileges, borrowing and obligations as a going
concern under a Vendor’s agreement signed between the Government of the People’s Republic of Bangladesh and
SBL with retrospective effect from 01 July, 2007. Since then, it enjoys the status of a corporate entity focusing on
ensuring proper delegation, transparency and accountability in the organization through its corporate governance
policies and practices. The Bank is structured and developed in accordance with the accepted corporate governance
practices and guidelines set by Bangladesh Bank and the Bangladesh Securities and Exchange Commission’s (BSEC)
notifications in this regard. As a 100% state owned commercial bank, it attaches utmost priority in ensuring a well
defined corporate governance standard.

I. Corporate Culture: Board of Directors, Chairman and Chief Executive Officer

I.a. Formation of Board of Directors:
The newly amended Section 15 of the Bank Company Act, 1991 (amended in 2023) includes provisions for prior
approval of Bangladesh Bank before the appointment of new bank directors, as well as dismissal, termination or
removal of any director from the post; director’s fit & proper criteria; maximum number of directors; appointment of
independent directors; etc.
l.a.1. Size of the Board of the Bank:
The number of the Board members is within the range set by the Bank Company Act-1991 (amended in 2023),
Bangladesh Bank and the Articles of Association of the Bank and Bangladesh Securities and Exchange Commission
notification No. BSEC/ CMRRCD/2006- 158/207/Admin/80 of 03 June 2018. All Directors of SBPLC are Non-Executive
Directors except the Managing Director. At present, the Board comprises of the following members including the
Managing Director.

SI. Name Status with the Bank

1. Mr. Ziaul Hasan Siddiqui Chairman
2. Mr. A.B.M Ruhul Azad Director
3. Mr. A. K. M. Kamrul Islam FCA, FCS Director (Retired on 09.02.2023)
4. Mr. Ishtiaque Ahmed Chowdhury Director (Retired on 25.10.2023)
5. Dr. Daulatunnaher Khanam Director
6. Mr. Molla Abdul Wadud Director
7. Professor Dr. Mohammad Kaykobad Director
8. Dr. Md. Matiur Rahman Director
9. Dr. Abul Kalam Azad Director
10. Mr. Gopal Chandra Ghosh Director (Joined on 07.03.2023)
11. Mr. Md. Afzal Karim Chief Executive Officer

I. a.2. Appointment of Directors:

Under section 15(4) of the Bank Company Act, 1991 (amended in 2023), every banking company, other than
specialized banks, at the time of taking prior approval from Bangladesh Bank for appointing/ re-appointing directors
should furnish the following documents along with the application:
a. Personal information of the nominated person;
b. Nominated person’s declaration;
c. ‘Declaration for confidentiality’ by the nominated person;
d. In case of Independent director, the approval letter from Bangladesh Securities and Exchange commission;
e. In case of Independent director, a declaration of the directors concern;
f. CIB report of the nominated person;
g. Updated list of the Directors.

92 ANNUAL REPORT 2023

The members of the Board of Directors of SBPLC are appointed as per the provision of the Companies Act-1994, the
Bank Company Act-1991 (Amended in 2023) and Memorandum and Articles of Association of the Bank. SBPLC always
complies with the guidelines of Bangladesh Bank regarding appointment of Directors.

I.a.3. Independent Director:

All the members of the Board, as nominated by the Government, are professionally and financially literate and
experienced. In line with the requirement of the notification of Bangladesh Securities and Exchange Commission
guidelines, all of the Directors of SBPLC are justifiably considered as independent Director. It is because:
a) Each of the Directors holds less than one percent (1%) shares of the total paid up capital of the Bank;
b) On the basis of family relationship, the Directors are not connected with the Bank’s shareholder who holds one
percent (1%) or more shares.
c) The Directors are not sponsors of the company.
d) The members of the family of the Directors also do not hold any share of the company.

I.a.4. Board members’ independence:

Members of the Board actively take part in deliberations in Board meetings on various issues as they are independent
in expressing their views and opinions freely. They don’t have any sorts of business relationship or involvement with
the Bank management.

I.a.5.lnformation regarding Directors:

Banks take the following steps regarding Director information:

a) Keep an updated list of bank Directors.

b) Banks send a Directors’ list to other banks or financial institutions immediately after the appointment or release
of Director.
c) Banks display a list of Directors in the website and update it on a regular basis.

I.a.6. Chairman of the Board and Chief Executive Officer:

Two separate individuals occupy the positions of the Chairman of the Board and the Chief Executive Officer. The
Chairman of the Bank is nominated by the Government and duly approved by the Board. The Board also approves
the roles and authorities of the Chairman and CEO which have been clearly defined in BRPD Circular No. 11 and 18
of 27 October 2013 and articles of association of the Bank.

I.a.7. Responsibilities of the Board of Directors

To ensure good governance in the Bank management it is essential to have specific demarcation of responsibilities
and authorities among controlling bodies over bank affairs. In the Bank Company Act, 1991 (amended in 2023)
the newly included Section 15(kha) & (ga) give responsibility to the Board of Directors for establishing policies for
the Bank company, for risk management, internal controls, internal audit and compliance and for ensuring their
implementation. In line with the directions of BRPD circular 11 /2013 the BOD takes the following responsibilities:

a) Work-planning and strategic management e) Financial management

b) Credit and risk management f) Appointment of Managing Director and CEO
c) Internal control management g) Regulatory responsibilities
d) Human resources management and development h) Formation of Board supporting committees

I.b. Responsibilities of the Chairman of the Board of Directors:

As the Chairman of the Board of Directors (or Chairman of any committee formed by the Board or any Director) does
not personally possess the jurisdiction to apply executive authority, he does not participate in, or interfere with the
administrative or operational and routine affairs of the Bank, rather he conducts on-site inspection of any bank-branch
or financing activities under the purview of the oversight responsibilities of the Board. He calls for information relating
to bank’s operation or asks for inquiry into such affairs; he submits such information or investigation report to the
meeting of the Board or the Executive Committee and with the approval of the Board, he effects necessary action
thereon in accordance with the set rules through the CEO.

ANNUAL REPORT 2023 93

SONALI BANK PLC

I.b.1. Responsibilities and authorities of the Chief Executive Officer

The Chief Executive Officer of the Bank discharges the responsibilities and affects the authorities as follows:

a) In terms of the financial, business and administrative authorities vested upon him by the board, the CEO & MD
discharges his own responsibilities. He remains accountable for achievement of financial and other business targets
by means of business plan, efficient implementation thereof and prudent administrative and financial management.
b) The CEO & MD ensures compliance of the Bank Company Act, 1991 and other relevant laws and regulations in
discharging routine functions of the Bank.
c) At the time of presenting any memorandum in the Board Meeting or Board Committee Meeting, the CEO & MD points
out if there is any deviation from the Bank Company Act, 1991 (amended in 2023) and other relevant laws and regulations.
d) The CEO & MD reports to Bangladesh Bank of any violation of the Bank Company Act, 1991 (amended in 2023)
or of other laws/regulations.
e) The recruitment and promotion of all staffs of the bank except those in the two tiers below him rests on the CEO
& MD. He acts in such cases in accordance with the approved service rules on the basis of the human resources
policy and sanctioned strength of employees as approved by the Board.
f) The authority relating to transfer and disciplinary measures against the staff, except those at two tiers below the
CEO & MD, rests on him, which he applies in accordance with the approved service rules. Besides, under the
purview of the human resources policy as approved by the Board, he nominates Officers for training etc.

I.c. Appointment of Chief Financial Officer (CFO) and Chief Information Technology Officer (CITO)

Mr. Md Iqbal Hossain, ACMA, CFA, FRM is a proud finance professional with 18 years of enhancing central banking,
commercial banking and brand management experience. He joined in the Sonali Bank PLC as Chief Financial Officer
and General Manager in April 2023 and is leading the esteemed team of the Central Accounts, Treasury Management
and MIS of the bank. He is also the Head of Treasury of the Bank. He is a Director of the Sonali Investment Limited, a
merchant bank wholly-owned by the Sonali Bank PLC.
Prior to joining in the current role, he served the Bangladesh Bank (central bank) as an Additional Director, in charge
of the Central Accounts of the country’s largest and most diverse financial statements. He served in the Foreign
Exchange Policy Department, Banking Regulation and Policy Department and Department of Financial Institutions
and Markets of Bangladesh Bank in various capacities.
Throughout the career, he has made numerous contributions for the sectoral development. He has contributed for
new avenues of inclusive banking through regulatory permission of 5 new banks, new guidelines for Agent Banking
(2017), Subbranch Banking (2018) and Offshore banking (2019). He took the initiative and developed first-of-its-kind
a Cost of Funds Index (CoFI) and Base Rate System. Mr. Iqbal worked for implementing CAMELS rating and Stress
Testing in the financial sector. He also worked with other Prudential guidelines, Core Risk Management, Risk based
Capital adequacy: Basel-I, II & III, Internal Credit Risk Rating, Inspection (both comprehensive and special) etc. As
formal acknowledgment he received the ‘Bangladesh Bank Employee Recognition Award 2012’ and Governor’s
formal ‘Letter of Appreciation’ several times.
Besides being a Professional Accountant, a CFA Charter holder and a Certified FRM, Mr. Iqbal Hossain is also a
Diplomate Associate of the Institute of Bankers’ Bangladesh (DAIBB). He holds Master of Economics and Econometrics
(University of Sydney, Australia), BBA & MBA (University of Chittagong, Bangladesh). He received as well as conducted
many physical and online training in Bangladesh and abroad. He participated in a good number of finance related
foreign trainings and visited USA, Australia, South Korea, Malaysia, Singapore, China, Thailand, India, Kenya and
Tanzania.
Mr. Hossain is an elected Councilor of Dhaka Branch Council of the ICMAB and Secretary of the CFA Society Bangladesh.
Mr. Hossain’s career objective is to contribute in the economic development of the country through working for a
sustainable financial infrastructure. He is eager to contribute in the betterment of human life through working for a
responsible, equitable, fair, inclusive and sustainable financial infrastructure.
Mr. Mohammad Rezwan Al Bakhtiar, Chief Information Technology Officer of the Sonali Bank, has been appointed
based on the competency following the circular of the Bank and guidelines of the Bangladesh Bank.

I.d. Appointment of Company Secretary and Head of Internal Audit

To ensure the world’s best corporate governance practices, a high executive (General Manager) has been deployed
to carry on the secretarial functioning and another General Manager has been deployed as the Head of Internal Audit
to strengthen the overall internal control and compliance.

94 ANNUAL REPORT 2023

I.e. Evaluation of the functioning of CEO and Managing Director by the Board
The Board of SBPLC has a policy to evaluate the CEO and Managing Director annually through various reports
like performance report of the Bank, taking status of various assignments given by the Board to the CEO and the
management, taking implementation status of budget, operational results etc.

I.f. Annual evaluation of the functioning of CFO by the Management

In line with the terms of reference of appointment, the performance of the CFO is evaluated by the management at
a regular interval.

I.g. Number of Board meetings in 2023

49 (Forty Nine) Board meetings of the SBPLC were held in 2023. A detailed statement showing number of Board
meetings held and status of participation of the Directors is given below:

Status with Honourium

SI. Name Meeting Held Attended Remarks
the Bank Received*
1 Mr. Ziaul Hasan Siddiqui Chairman 49 48 384,000 -
2 Mr. A.B.M Ruhul Azad Director 49 49 392,000 -
3 Mr. A K M Kamrul Islam, FCA,FCS Director 49 5 40,000 (Retired on09.02.2023)
4 Mr. Ishtiaque Ahmed Chowdhury Director 49 38 304,000 (Retired on25.10.2023)
5 Dr. Daulatunnahar Khanam Director 49 46 368,000 -
6 Mr. Molla Abdul Wadud Director 49 49 392,000 -
7 Professor Dr. Mohammad Kaykobad Director 49 47 376,000 -
8 Dr. Md. Matiur Rahman Director 49 45 360,000 -
9 Dr. Abul Kalam Azad Director 49 48 384,000 -
10 Mr. Gopal Chandra Ghosh Director 49 33 264,000 (Joined on 07.03.2023)
11 Mr. Md. Afzal Karim CEO & MD 49 48 - -

*Tk 8000.00 per meeting

II. BOARD COMMITTEES

ll.a. Executive Committee
As per the BRPD circular No. 11 of 27 October 2013, an Executive Committee has been formed with Directors for quick
decision on urgent matters and execution of routine work in between the Board meeting. Executive Committee performs
according to their terms of reference determined by the Board of Directors in line with Bangladesh Bank guidelines.

Executive Committee

Sl. Name Status with the Bank Status with the Committee
1 Mr. Ziaul Hasan Siddiqui Chairman Chairman
2 Mr. A.B.M Ruhul Azad Director Member
3 Mr. Molla Abdul Wadud Director Member
4 Mr. Md. Afzal Karim CEO & MD Member

II.a.1. Organizational structure:

i. Members of the committee are nominated by the Board of Directors from themselves;
ii. The Executive Committee comprises of maximum 06 (six) members;
iii. Members are appointed for a 03 (three)-year term of office;
iv. Chairman of the Board of Directors is the Chairman of Executive Committee;
v. Company Secretary of the Bank is the Secretary of the Executive Committee.

ANNUAL REPORT 2023 95

SONALI BANK PLC

II.a.2. Qualifications of the Members:

i. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating
a Director to the committee;
ii. Each member is capable of making valuable and effective contributions in the functioning of the committee;
iii. To perform his or her role effectively each committee member has adequate understanding of the detailed
responsibilities of the committee membership as well as the bank’s business, operations and its risks.

II.a.3. Roles and Responsibilities of the Executive Committee:

i. The Executive Committee can decide or can act in those cases as instructed by the Board of Directors that are
not specifically assigned on full Board through the Bank Company Act, 1991 and other laws and regulations.
ii. The Executive Committee can take all necessary decisions or can approve cases within power delegated by the
Board of Directors.
iii. All decisions taken in the Executive Committee should be ratified in the next Board meeting.

ll.a.4. EC Meetings in 2023

i. The Executive Committee sits anytime as it may deem fit. 06 (Six) meetings of the Executive Committee were
held in 2023. A statement on Executive Committee is given below:

Status with the Honourium

SI. Name Meeting Held Attended Remarks
Bank Received*
1 Mr. Ziaul Hasan Siddiqui Chairman 6 6 48,000 -
2 Mr. A.B.M Ruhul Azad Director 6 6 48,000 -
3 Mr. Molla Abdul Wadud Director 6 6 48,000 -
4 Mr. Md. Afzal Karim CEO & MD 6 6 - -

*Tk 8000.00 per meeting

ii. The committee invites Chief Executive Officer, Head of Internal Audit or any other Officer to its meetings, if it
deems necessary;
iii. To ensure active participation and contribution by the members, a detailed memorandum is distributed to
committee members well in advance before each meeting;
iv. All decisions/observations of the committee are noted in minutes.
ll.b. Audit Committee

As per Bangladesh Securities and Exchange Commission notification No. SEC/ CMRRCD/ 2006-158/134/Admin/44
of 07 August 2012, SBPLC has an Audit Committee as a sub-committee of the Board of Directors in order to strictly
observe the terms of references issued by Bangladesh Bank BRPD Circular No. 11 of 27 October 2013. The Audit
Committee assists the Board of Directors in ensuring internal control system. It also certifies that the financial
statements reflect true and fair view of the state of affairs of the company. It issues guidelines for ensuring a good
monitoring system within the business.

II.b.1. Organizational structure:

i. Members of the committee are nominated by the Board of Directors from the Directors;
ii. The Audit Committee comprises of maximum 05 (five) members,
iii. Audit Committee comprises with Directors who are not Executive Committee members;
iv. Members are appointed for a 03 (three) year term of office;
v. Company Secretary of the Bank is the Secretary of the Audit Committee.

96 ANNUAL REPORT 2023

 Audit Committee
Sl. Name Status with the Bank Status with the Committee
01 Mr. Gopal Chandra Ghosh Director Chairman
02 Dr. Daulatunnahar Khanam Director Member
03 Professor Dr. Mohammad Kaykobad Director Member
04 Dr. Md. Matiur Rahman Director Member

II.b.2. Qualifications of the Members:

i. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating
a Director to the committee;
ii. Each member is capable of making valuable and effective contributions in the functioning of the committee;
iii. To perform his or her role effectively each committee member has adequate understanding of the detailed
responsibilities of the committee membership as well as the bank’s business, operations and its risks.
iv. Professionally experienced persons in banking/ financial institutions specially having educational qualification in
Finance, Banking, Management, Economics, Accounting gets preference in forming the committee.

II.b.3. Roles and Responsibilities of the Audit Committee

(i) Internal Control:

1. Evaluate whether management is setting the appropriate compliance culture by communicating the
importance of internal control and the management of risk and ensuring that all employees have clear
understanding of their roles and responsibilities;
2. Review management’s actions in building computerization of the bank and its applications and bank’s
Management Information System (MIS);
3. Consider whether internal control strategies recommended by internal and external auditors have been
implemented by the management;
4. Consider reports relating to fraud, forgery, deficiencies in internal control or other similar issues detected by
internal and external auditors and inspectors of the regulatory authority and place it before the Board after
reviewing whether necessary corrective measures have been taken by the management.
(ii) Financial Reporting:
1. Audit Committee checks whether the financial statements reflect the complete and concrete information
and determine whether the statements are prepared according to the existing rules & regulations and
standards enforced in the country and as per relevant prescribed accounting standards set by Bangladesh
Bank;
2. Discuss with management and the external auditors to review the financial statements before its finalization.
II.b.4. Meetings of the Committee

10 (Ten) meetings of the Committee were held in 2023. A statement on Audit Committee is given below:

Status with the Meeting Honourium

SI. Name Attended Remarks
Bank Held Received*
1 Mr. Gopal Chandra Ghosh Director 10 9 72,000 (Joined on 07.03.2023)
(Retired on
2 Mr. A.K.M. Kamrul Islam FCA, FCS Director 10 1 8,000
09.02.2023)
3 Mr. Ishtiaque Ahmed Chowdhury Director 10 7 56,000 (Retired on 25.10.2023)

4 Dr. Daulatunnahar Khanam Director 10 9 72,000 -

5 Professor Dr. Mohammad Kaykobad Director 10 10 80,000 -

6 Dr. Md. Matiur Rahman Director 10 - - -

*Tk 8000.00 per meeting

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SONALI BANK PLC

(iii) Internal Audit:

1. Audit Committee monitors whether internal audit working independently from the management.
2. Reviews the activities of the internal audit and the organizational structure and ensure that no unjustified
restriction or limitation hinders the internal audit process;
3. Examines the efficiency and effectiveness of internal audit function;
4. Examines whether the findings and recommendations made by the internal auditors are duly considered by
the management or not.

(iv) External Audit :

1. Reviews the performance of the external auditors and their audit reports;
2. Examines whether the findings and recommendations made by the external auditors are duly considered by
the management or not.
3. Makes recommendations to the Board regarding the appointment of the external auditors.

(v) Compliance with Existing laws and Regulations:

Reviews whether the laws and regulations framed by the regulatory authorities (Central Bank and other bodies)
and internal regulations approved by the Board are being complied with.

(vi ) Other Responsibilities:

1. Submits compliance report to the Board on quarterly basis on regularization of the omission, fraud and forgeries
and other irregularities detected by the internal and external auditors and inspectors of regulatory authorities;
2. External and internal auditors submits their related assessment report, if the committee solicit;
3. Performs other oversight functions as desired by the Board of Directors and evaluates the committee’s own
performance on a regular basis.

II.b.4. Head of Internal Audit’s access to Audit Committee

Head of internal control and compliance has direct access to the Audit Committee and he attends the Audit
Committee meetings regularly.

II.c. Risk Management Committee

ll.c.1. Organizational Structure:
1. Members of the committee are nominated by the Board of Directors from themselves;
2. The Risk Management Committee comprises of maximum 05 (five) members;
3. Members are appointed for a 03 (three) year term of office;
4. Company Secretary of the Bank is the Secretary of the Risk Management Committee.
As per the Bank Company Act, 1991 (amended in 2023) and BRPD circular No. 11/2013, SBPLC has formed the Risk
Management Committee approved by the Board of Directors comprising 04 (four) members which are disclosed below:

Risk Management Committee

Sl. Name Status with the Bank Status with the Committee
1 Mr. A.B.M Ruhul Azad Director Chairman
2 Dr. Daulatunnahar Khanam Director Member
3 Mr. Molla Abdul Wadud Director Member
4 Professor Dr. Mohammad Kaykobad Director Member

II.c.2. Qualifications of the Members:

1. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating
a Director to the committee;
2. Each member is capable of making valuable and effective contributions in the functioning of the committee;
3. To perform his or her role effectively each committee member has adequate understanding of the detailed
responsibilities of the committee membership as well as the bank’s business, operations and its risks.

98 ANNUAL REPORT 2023

II.c.3. Roles and responsibilities of the Committee
(i) Risk identification & control policy:
Formulation and implementation of appropriate strategies for risk assessment and its control is the responsibility of
the Board Risk Management Committee. Board Risk Management Committee monitors risk management policies
& methods and amend it if necessary. The committee reviews the risk management process to ensure effective
prevention and control measures.
(ii) Construction of organizational structure:
The responsibility of Risk Management Committee is to ensure an adequate organizational structure for managing risk
within the bank. The Risk Management Committee supervises formation of separate management level committees and
monitors their activities for the compliance of instructions of lending risk, foreign exchange transaction risk, internal control
&compliance risk, money laundering risk, information & communication risk including other risk related guidelines.
(iii) Analysis and approval of Risk Management policy:
Risk management policies & guidelines of the Bank is reviewed annually by the committee. The committee proposes
amendments if necessary and send it to the Board of Directors for their approval. Besides, other limits including
lending limit are reviewed at least once annually and is amended, if necessary.
(iv) Storage of data & Reporting system:
Adequate record keeping & reporting system developed by the Bank management is approved by the Risk Management
Committee. The committee ensures proper use of the system. The committee minutes its proposal, suggestions and
summary in a specific format and informs the Board of Directors.
(v) Monitoring the implementation of overall Risk Management Policy:
Board Risk Management Committee monitors proper implementation of overall risk management policies. They monitor
whether proper steps have been taken to mitigate all risks including lending risk, market risk, and management risk.
(vi) Other responsibilities:
1. Committee’s decision and suggestions are submitted to the Board of Directors quarterly in short form;
2. Comply instructions issued time to time by the controlling body;
3. Internal & external auditors submit respective evaluation report whenever required by the committee.

II.b.4. Meetings of the Committee

Status with Meeting Honourium

SI. Name Attended Remarks
the Bank Held Received*
1 Mr. A.B.M Ruhul Azad Director 8 8 64,000 -
2 Mr. Ishtiaque Ahmed Chowdhury Director 8 7 56,000 (Retired on 25.10.2023)
3 Dr. Daulatunnahar Khanam Director 8 8 64,000 -
4 Mr. Molla Abdul Wadud Director 8 7 56,000 -
5 Professor Dr. Mohammad Kaykobad Director 8 6 48,000 -

*Tk 8000.00 per meeting

III. INTRNAL CONTROL AND COMPLIANCE RISK MANAGEMENT

Internal control and compliance policy is the policies and procedures established and implemented alone, or in concert
with other policies or procedures, to manage and control a particular risk or business activity, or combination of risks
or business activities, to which the Bank is exposed or in which it is engaged. It refers to the mechanism in place on
a permanent basis to control the activities in an organization, both at a central and at a departmental/ divisional level.

III.a. Internal control Objectives

The primary objective of internal control system in SBPLC is to help the Bank perform better through the use of
its resources. Through internal control system Bank identifies its weaknesses and takes appropriate measures to
overcome the same. The main objectives of internal control are as follows:
• Performance objectives: To maintain the efficiency and effectiveness of overall operating activities.
• Information objectives: To ensure the reliability, completeness and timelines of financial and management information.
• Compliance objectives: To ensure the robust compliance with applicable laws and regulations.

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SONALI BANK PLC

III.b. Establishment of internal control and compliance

The Board of SBPLC is entrusted to establish suitable system of internal control and compliance. SBPLC has formed
MANCOM (Management Committee) to identify measure, monitor and control the risks through framing required policies
and procedures with the approval of the Board of Directors. The policy of managing operational risk through internal
control and compliance is approved by the Board taking into account the relevant guidelines of Bangladesh Bank.
In setting out a strong internal control framework within the organization, the MANCOM of Sonali Bank is responsible
for overall management of the Bank. The committee puts in place policies and procedures to identify measure,
monitor and control these risks and monitors the adequacy and effectiveness of the internal control system based on
the Bank’s established policy and procedure.

III.c. Key features of ICC of the Bank

Bank has a sound, efficient and effective internal control and compliance system. The Bank’s Board, Audit Committee, Head
of ICC, CEO & MD and senior management (MANCOM) ensure that appropriate internal controls are in place. All employees
are ultimately responsible for operating and maintaining an efficient internal control system at their respective levels.
Typically, management’s internal control system has components which direct attention to various areas and functions
within the Bank. Among these components are:
1. Control Environment
2. Communication
3. Assessing and Managing Risk
4. Control Activities and
5. Monitoring
Bank has sound policy guidelines in order to ensure an effective control over its process in various fields i.e. credit,
human resources, finance and accounts, treasury, audit, customer service etc. It has been suggested that there
should be policy guidelines/manuals for each Division’s function which may be as follows:
a. Credit Policy Manual/Guidelines.
b. Operations Manual
c. Finance & Accounting Manual
d. Treasury Manual
e. Human Resource Policy/ Manual
f. Internal Control & Compliance Policy/Manual
g. Loan Review Policy
h. Assets Liabilities Management Policy,
i. Liquidity Management Policy
j. Various Risk Management Policy/Guidelines.
Bank has a separate and independent Audit & Inspection Mechanism. Under ICC, currently there are three separate
divisions i.e. Audit & Insp. Division, Control and Monitoring Divisions and Compliance Division. Each head of the
divisions works independently and separately reports to audit committee and board if required. Internal Control
and Compliance Division of SBL is responsible for checking compliance of internal control system. Any deviation is
reported to the top management, Audit Committee and to the Board and necessary steps is taken to rectify the same
as soon as possible. As per Bangladesh Bank guidelines and to strengthen the control and compliance mechanism,
at present, ICCD acts as an ICC secretariat. Inspection and Audit Division, MISD, Vigilance and Control Division are
now working as ICC’s functions.
In line with section 15 (c) of Bank Company Act 1991 (amended in 2013), SBPLC has formulated the following new
detailed structure of ICC which will be in operation within the shortest possible time:

III.d. Annual review of ICC policy by the Board

The Board of Directors at a regular interval reviews the internal control system and necessary modification is done to
improve the system and to incorporate latest changes in the technology.

III.e. Regulatory inspection

A comprehensive inspection has been conducted by Bangladesh Bank on Head Office and selected branches in 2023 covering the
position of 31 December 2023. Major core risks areas likely credit risk, foreign exchange risk, ICC risk etc. have been addressed.

100 ANNUAL REPORT 2023

III.f. Statutory audit
The Board appointed Hoda Vasi Chowdhury & Co. and Hawladar Yunus & Co., Chartered Accountants, to carry on
statutory audit of the Bank for the financial year 2023. Both the audit firms selected 60 (sixty) branches and Head
Office as a part of their annual audit program in combine which covers more than 80% of the risk weighted assets of
the Bank. After completion of audit functioning, the statutory auditors issued a clean report to the shareholders on
the Financial Statements of the Bank for the period ended 31 December 2023.
To avoid the conflict of interest, SBPLC does not engage its statutory auditors to perform the following services:
A. Internal audit services
B. Valuation services
C. Actuarial services
D. Corporate governance certification
E. Financial system designs
F. Broker dealer services or
G. Any other services as deemed appropriate by the Audit Committee and the Board.

Board of Directors

Executive Audit Risk Management

Committee Committee Committee

CEO & MD

MANCOM Departmental
Risk Management

Head of ICC

Head of Control Head of Audit Head of Complince

Control & Monitoring Audit & Inspection Audit & Inspection Foreign Exchange Compliance Compliance
Division (CMD) Division (AID-1) Division (AID-2) Audit & Inspection Division Internal Division External
Audit & Inspection up to Compliance up tp Bangladesh Bank
Branch Corporate Level Branch All Ad coporate Branch Audit Compliance
Department All branches & Compliance of foreign Commercial Audit Com.
Division & Div. Office, Dept. Controlling
Branches Foreign exchange Audit & Foreign
Controlling Offices (GMo, Po, Ro) Branches & Subsidiaries Statutory Audit Com.
(Below branches/
Offives Audit Cell- Local Corporate sub. Compliance of the rest of Others External Audit Com.
(GMO, Po, Ro) Office/Corporate level) the branch and others.

III.g. Review of Corporate Governance of the Bank by third party

Whether best practices corporate governance culture is prevailing in the Bank or not, independent evaluator, Anil
Salam Idris & Co, Chartered Accountants, has been appointed for the year 2023 to evaluate the practice of corporate
governance and issue a certificate. Accordingly in line with the BSEC circular, they carry on the assignment and issued
a satisfactory certificate regarding the same.

IV. RISK MANAGEMENT

IV. a.1. Risk management methodology

SBPLC’s risk management strategy is based on a clear understanding of various risk, discipline risk assessments,
measurement procedures and continuous monitoring. SBPLC continues to focus on improving its Risk Management
System not only to ensure compliance with regulatory requirements but also to ensure better risk- adjusted return
and optimal capital utilization keeping in mind of the business objectives. For sound risk management, SBL manages
risk in Strategic layer, Managerial layer and Operational layer.

Risk Management activities of Bank can be divided into following ways:

1 Risk Identification
2 Risk Analysis
3 Risk Measurement
4 Risk Price
5 Risk Monitoring and Controlling
6 Risk Mitigation

ANNUAL REPORT 2023 101

SONALI BANK PLC

IV.a.2. Method of Risk Mitigation:

SBPLC has separate mitigation methodology for each risk. The vital and first step of risk mitigation is the identification
and analysis of risks. To do that a Risk Management Paper is prepared covering all potential risks in banking. The Risk
Management Committee discusses on the paper in its monthly meeting, find out the risks, gives direction to mitigate
them. Risk Management Division has introduced Risk Management Check List (RCL) for attaining ‘Satisfactory rating
on various segments of core risks through proper implementation of Core Risk Management Guideline, which is
being maintained at all offices/ branches of the Bank.

V. MORAL ISSUES, ETHICAL STANDARDS AND COMPLIANCE

SBPLC takes care of both the dimensions (the way they operate and the types of companies they finance) in its operation,
many ethical issues such as the environmental conduct of business customers are now a part of standard risk assessment
and prudent banking. It is becoming increasingly common practice for banks to have established guidelines for their
staff on the major ethical issues covered. SBPLC has been trying to follow the Equator Principles, a set of guidelines
developed by the banks for managing social and environmental issues related to the financing of development projects.

VI. PROCESS OF REMUNERATION

Separate committee of the Board on remuneration has not been formed in SBPLC as it is not permitted by the
Bangladesh Bank. Being a state owned commercial bank, fixation and payment of remunerations to every level of
employees is done by Human Resources Division as per the national pay scale.

VI. a. Remuneration of Directors, Chairman and Managing Director

As per Bangladesh Bank BRPD Circular No 11/2015, the Directors receive remuneration of Tk. 8,000.00 (Eight thousand)
for attending a Board meeting or any committee meeting. The lists of total meetings held and remuneration paid to
the Directors, Chairman and Managing Director are shown in this report.

VII. HUMAN RESOURCES

Over the years, SBPLC has made significant progress towards building resilient organization by focusing on strategic
workforce planning, talent attraction and management and leadership development by sustainable recruiting of
valuable resources. The aim of Human Resources Division of SBPLC is to take initiatives to explore the unexplored
latent qualities in our manpower and provide them with proper training which includes on-job and off-job training,
attending different seminars and conferences related to skill development, job rotation and time to time counseling
in order to strengthen the relationship with the stakeholders. Also as a part of welfare to the employees, SBPLC
provides provident fund facility, gratuity fund, death cum retirement benefits, leave encashment, two festival bonuses,
employee house building loan scheme, motor cycle loan scheme, car loan scheme for the executives, computer loan
scheme, recognition and monetary award for brilliant results by the children of the employees, children education
allowance, honorarium for passing Banking Diploma Examination and extend urgent support to the staffs in case of
death claim, retirement, accidents and other emergency cases.

VII.a. Human Resources Accounting

The strategy and methodology to determine the value of human resources is called Human Resources Accounting.
SBPLC calculated the value of human resources applying the best practice of Human Resource Accounting from the
year 2014 till date and also disclosed in the annual report.

VIII. COMMUNICATION WITH SHAREHOLDERS AND STAKEHOLDERS

SBPLC follows specific policy to facilitate effective communication with the shareholders. Shareholders and others
may contact at any time to Public Relations Division of Head Office for any sort of information and query. SBPLC
provides updated information in its website for all the shareholders as well as the stakeholders. In order to make the
AGM more participatory, it is arranged in a well-known place and convenient time to allow shareholders to speak in
the AGM freely for their valuable suggestions.

In order to retain the sustainability, SBPLC also continuously maintains a large means to communicate and engage
with its stakeholders. With the diverse nature of stakeholders, SBPLC always strategically defines its key stakeholder

102 ANNUAL REPORT 2023

audience with a view to ensuring pragmatism in engagement and reporting. SBPLC classifies its key stakeholders as
employees, customers, shareholders and investors, suppliers and service providers, government and other regulators,
communities and environment. Through stakeholders’ inclusiveness and strategic engagement, SBPLC achieves
conclusive and positive outcomes for each of the identified stakeholders.

IX. ENVIRONMENTAL AND SOCIAL OBLIGATIONS

Presently the issue of climatic change is being addressed seriously all over the world. Bangladesh, being in southern
delta, is under serious threat of natural disaster. A detailed discussion regarding environment and social obligation of
SBPLC is included in the report on “Corporate Social Responsibility” and “Sustainable Banking” chapter.

X. MANAGEMENT REVIEW AND RESPONSIBILITY

Managing Director is the Chief Executive Officer (CEO) of the Bank. Bank has approved organizational structure with
clear functional separation and segregation of processing/ functioning authorities. This ensures core risk management
practice and compliance across the Bank.

X.a. Management Committees

In Sonali Bank, many committees have been formed with senior executives to carry on the banking operation
more precisely and efficiently. These are SMT, ALCO, MANCOM, Credit Committee, Business Advisory Committee,
Disciplinary Action Committee, Interest Waiver Committee, Research and Planning Committee etc. Generally, each
committee has been formed headed by a Deputy Managing Director. Besides, investment committee, share sell-
purchase committee, service rule review committee, online activities implementation committee etc. have been set
up for smooth functioning.

SI. Name of Committees

1 Senior Management Team (SMT)
2 Asset Liability Management Committee (ALCO)
3 Credit Committee
4 Business Advisory Committee
5 Disciplinary Action Committee
6 Interest Waiver Committee
7 Research and Planning Committee
8 Risk Management Committee (RMC)
9 Supervisory Review Process (SRP)

X.b. Regulatory Compliance

SBPLC always submits quarterly, half-yearly and yearly financial reports and other statutory reports as per guidelines
of regulatory authorities. Followed by the directions, the Bank discloses any significant development in the business
and ensures submission of returns to the regulatory bodies in full compliance with transparency and accountability.
Board of Directors ensures standard disclosures to the shareholders.

X.c. Delegation of power

As per guidelines of Bangladesh Bank, the Board of Directors and its committees are entrusted with formulation
of standard policies and procedures by which Management Committee of the Bank has been empowered with
appropriate administrative, finance and business decision making authorities. The Board has approved all procurement
policies of the Bank as well as various manuals, policies, guidelines and the delegation of power of investment up to
a determined limit

XI. OTHER INFORMATION

Xl.a. Credit Rating

As per Bangladesh Bank’s mandatory requirement vide BRPD Circular No.06 of 5 July, 2006, the Credit Rating of
SBPLC was done by the Credit Rating Information Services Limited (CRISL) on the Audited Balance Sheet of 31
December, 2022 and other relevant information.

ANNUAL REPORT 2023 103

SONALI BANK PLC

The rating agency awarded the ratings as stated here.

Surveillance Rating 2023 Long Term Short Term

As Government Supported Bank AAA ST-1

As Private Commercial Bank A+ ST-2

Outlook Stable

Validity 21 June 2024

XII. ACCOUNTABILITY OF FINANCIAL REPORTING

The Board of SBPLC as well as Management undertakes responsibilities for preparing and presenting a balanced and
comprehensive assessment of the Bank’s operations at the end of the each financial year through annual financial
statements and annual report and quarterly and half yearly announcement of results of the Bank to the shareholders.

The Audit Committee of the Board assists in this respect by scrutinizing the information to be disclosed, and to ensure
accuracy, adequacy, transparency and completeness.

XIII. VISION, MISSION AND STRATEGY

The Vision, Mission and Strategic Objectives of SBPLC are approved by the Board which is disclosed in the earlier part
of the Annual Report, Bank’s website and other publications.

XIV. DECLARATION OF CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO)
The CEO and the CFO certified on fair representation of financial statements to the Board.

XV. DIRECTORS’ REPORT TO SHAREHOLDERS

In compliance with section 1.5 of Bangladesh Securities and Exchange Commission Notification No.BSEC/CMRRCD/
2006-158/207/Admin/80 of 03 June 2018 and section 184 of the Companies Act, 1994 (Act No. Ill of 1994), the
Directors report has been prepared incorporating all the required statements.

104 ANNUAL REPORT 2023

 REPORT TO THE SHAREHOLDERS OF
SONALI BANK PLC

ON COMPLIANCE ON THE
CORPORATE GOVERNANCE CODE

We have examined the compliance status to the Corporate Governance Code by Sonali Bank PLC for the year ended
31 December 2023. This code relates to the Notification No. BSEC/CMRRCD/2006-158/207/Admin/80 dated 03
June 2018 of the Bangladesh securities & Exchange Commission.

Such compliance with the Corporate Governance Code is the responsibility of the Company. Our examination was
limited to the procedures and implementation, thereof as adopted by the Management in ensuring compliance to the
conditions of the Corporate Government Code.

This is a scrutiny and verification and an independent audit on compliance of the Corporate Governance Code as
well as the provisions of relevant Bangladesh Secretarial Standards (BSS) as adopted by the Institute of Chartered
Secretaries of Bangladesh (ICSB) in so far as those standards are not inconsistent with any condition of this Corporate
Governance Code.

We state that we have obtained all the information and explanations, which we have required, and after due scrutiny
and verification thereof, we report that, in our opinion:

a) The Bank has complied with the conditions of the Corporate Governance Code as stipulated in the
above-mentioned Corporate Governance Code issued by the Commission except the condition 1(7),
4(ii) and 6(1)-(5).

b) The Company has complied with the provisions of the relevant Bangladesh Secretarial Standard (BSS) as adopted
by the Institute of Chartered Secretaries of Bangladesh (ICSB) as required by this Code.

c) Proper book of records have been kept by the company as required under the Companies act. 1994, the securities
laws and other relevant laws; and

d) The Governance of the company is satisfactory.

Anil Salam Idris & Co.,

Chartered Accountants

Place: Dhaka Md. Anwar Hossain, FCA

Dated: 16 May 2024 Managing Partner

ANNUAL REPORT 2023 105

SONALI BANK PLC

BSEC CODE OF CORPORATE GOVERNANCE:

SBPLC’S COMPLIANCE STATUS
Status of Compliance with the conditions imposed through Bangladesh Securities and Exchange Commission’s
(BSEC) Notification No. BSEC/CMRRCD/2006-158/ 207/Admin/80 dated 03 June 2018 issued under Section 2CC of
the Securities and Exchange Ordinance, 1969 is as follows (as per Annexure-C):
Report under Condition No. 9.00:
Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied

1. Board of Directors

1(1) Size of the Board of Directors

The total number of members of the Company’s Board of Directors

√
shall not be less than 5 (five) and more than 20 (twenty).

1(2) Independent Directors

At least one-fifth (1/5) of the total number of Directors in the

1(2) (a) √
Company’s Board shall be Independent Directors.

1(2) (b) Independent Director means a Director-

Who does not hold any Share in the Company or holds less
1(2)(b)(i) than One Percent (1%) Shares of the total Paid-Up Shares of the √ All Board
Company; Members are
Who is not a Sponsor of the Company or is not connected with nominated
the Company’s any Sponsor or Director or Nominated Director by the
or Shareholder of the Company or any of its Associates, Sister Government,
Concerns, Subsidiaries and Parents or holding entities who holds holding 01 share
one percent (1%) or more shares of the total paid-up shares of face value TK.
1(2)(b)(ii) √ 100.
the Company on the basis of family relationship and his or her
family members also shall not hold above mentioned shares in the They are treated
Company: Provided that spouse, son, daughter, father, mother, as Independent
brother, sister, son in-law and daughter-in-law shall be considered Director.
as family members;
Who has not been an executive of the Company in immediately
1(2)(b)(iii) √
preceding 2 (two) financial years;
Who does not have any other relationship, whether pecuniary
1(2)(b)(iv) or otherwise, with the Company or its Subsidiary or Associated √
Companies.
Who is not a member or TREC (Trading Right Entitlement
1(2)(b)(v) √
Certificate) Holder, Director or Officer of any Stock Exchange;
Who is not a Shareholder, Director excepting Independent Director
1(2)(b)(vi) or officer of any member or TREC Holder of Stock Exchange or an √
Intermediary of the Capital Market;
Who is not a partner or an executive or was not a partner or an
executive during the preceding 3 (three) years of the concerned
1(2)(b)(vii) Company’s Statutory Audit firm or Audit Firm engaged in Internal √
Audit Services or audit firm conducting special Audit or Professional
certifying compliance of this Code.

1(2)(b)(viii) Who is not Independent Director in more than 5 (five) listed Companies. √

Who has not been convicted by a Court of competent jurisdiction

1(2)(b)(ix) as a defaulter in payment of any loan or any advance to a Bank or √
a Non-Bank Financial Institution (NBFI);
Who has not been convicted for a Criminal Offence involving
1(2) (b) (x) √
moral turpitude.

106 ANNUAL REPORT 2023

 Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied
The Independent Director (s) shall be appointed by the Board
1(2) (c) and approved by the Shareholders in the Annual General Meeting √
(AGM);
The post of Independent Director (s) cannot remain vacant for
1(2) (d) √
more than 90 (ninety) days; and
The tenure of office of an Independent Director shall be for a
1(2)(e) period of 3 (three) years, which may be extended for 1 (one) tenure √
only:

1(3) Qualification of Independent Director

Independent Director shall be a knowledgeable individual with

integrity who is able to ensure compliance with financial laws,
1(3)(a) √ Stated in Their CV
regulatory requirements and corporate laws and can make
meaningful contribution to the business.

1(3)(b) Independent Director shall have following qualifications:

Business Leader who is or was a Promoter or Director of an

unlisted Company having minimum paid-up capital of Tk.100.00
1(3)(b)(i) √
million or any listed Company or a member of any national or
international chamber of commerce or business association;
Corporate Leader who is or was a top level executive not lower
than Chief Executive Officer or Managing Director or Deputy
Managing Director or Chief Financial Officer or Head of Finance
1(3)(b)(ii) or Accounts or Company Secretary or Head of Internal Audit √
and Compliance or Head of Legal Service or a candidate with
equivalent position of an unlisted Company having minimum paid
up capital of Tk.100.00 million or of a listed Company;
Former official of the Government or Statutory or Autonomous or
Regulatory Body in the position not below 5th Grade of the National
1(3)(b)(iii) √
Pay Scale, who has at least educational background of Bachelor
Degree in economics or commerce or business or law;
University Teacher who has educational background in Economics
1(3)(b)(iv) √
or Commerce or Business Studies or Law;
Professional who is or was an advocate practicing at least in the
High Court Division of Bangladesh Supreme Court or a Chartered
Accountant or Cost and Management Accountant or Chartered
1(3)(b)(v) √
Financial Analyst or Chartered Certified Accountant or Certified
Public Accountant or Chartered Management Accountant or
Chartered Secretary or equivalent qualification;
The Independent Director shall have at least 10 (ten) years of
1(3)(c) √
experiences in any field mentioned in clause (b);
In special cases, the above qualifications or experiences may be
1(3)(d) √
relaxed subject to prior approval of the Commission.
In special cases, the above qualifications may be relaxed subject to
1(3)(e) √
approval of the commission.

1(4) Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer

The positions of the Chairperson of the Board and the Managing

1(4)(a) Director (MD) and/or Chief Executive Officer (CEO) of the √
Company shall be filled by different individuals;
The Managing Director (MD) and/or Chief Executive Officer
1(4)(b) (CEO) of a listed Company shall not hold the same position in √
another listed Company;
The Chairperson of the Board shall be elected from among the
1(4)(c) √
non executive Directors of the Company;

ANNUAL REPORT 2023 107

SONALI BANK PLC

Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied
The Board shall clearly define respective Roles and
1(4)(d) Responsibilities of the Chairperson and the Managing Director √
and/or Chief Executive Officer;
In the absence of the Chairperson of the Board, the remaining
Members may elect one of themselves from non-executive
1(4)(e)
Directors as Chairperson for that particular Board’s Meeting; √
the reason of absence of the regular Chairperson shall be duly
recorded in the Minutes of the Board Meeting.

1(5) The Directors’ Report to Shareholders

An industry outlook and possible future developments in the

1(5)(i) √
industry;

1(5)(ii) The segment-wise or product-wise performance; √

Risks and concerns including internal and external risk factors, threat
1(5)(iii) √
to sustainability and negative impact on environment, if any;
A discussion on Cost of Goods sold, Gross Profit Margin and Net
1(5)(iv) √
Profit Margin, where applicable;
A discussion on continuity of any extraordinary activities and
1(5)(v) √
their implications (gain or loss);
A detailed discussion on related party transactions along with
a statement showing amount, nature of related party, nature
1(5)(vi) √
of transactions and basis of transactions of all related party
transactions;
A statement of utilization of proceeds raised through public
1(5)(vii) √
issues, rights issues and/or any other instruments;
An explanation if the financial results deteriorate after the
1(5)(viii) Company goes for Initial Public Offering (IPO), Repeat Public √
Offering (RPO), Rights Share Offer, Direct Listing, etc.;
An explanation on any significant variance that occurs between
1(5)(ix) Quarterly Financial performances and Annual Financial √
Statements;
A statement of remuneration paid to the Directors including
1(5)(x) √
Independent Directors;
A statement that the financial statements prepared by the
Management of the issuer Company present fairly its state of
1(5)(xi) √
affairs, the result of its operations, cash flows and changes in
equity;
A statement that proper books of account of the issuer Company
1(5)(xii) √
have been maintained;
A statement that appropriate accounting policies have been
consistently applied in preparation of the financial statements
1(5)(xiii) √
and that the accounting estimates are based on reasonable and
prudent judgment;
A statement that International Accounting Standards (IAS) or
International Financial Reporting Standards (IFRS), as applicable
1(5)(xiv) in Bangladesh, have been followed in preparation of the financial √
statements and any departure there from has been adequately
disclosed;
A statement that the system of internal control is sound in design
1(5)(xv) √
and has been effectively implemented and monitored;
A statement that minority Shareholders have been protected from
abusive actions by, or in the interest of, controlling Shareholders
1(5)(xvi) √
acting either directly or indirectly and have effective means of
redress;

108 ANNUAL REPORT 2023

 Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied

A statement that there is no significant doubt upon the issuer

Company’s ability to continue as a going concern, if the issuer
1(5)(xvii) √
Company is not considered to be a going concern, the fact
along with reasons there of shall be disclosed;

An explanation that significant deviations from the last year’s

1(5)(xviii) operating results of the issuer Company shall be highlighted and √
the reasons thereof shall be explained;
A statement where key operating and financial data of at least
1(5)(xix) √
preceding 5 (five) years shall be summarized;
An explanation on the reasons if the issuer Company has not
1(5)(xx) √
declared dividend (cash or stock) for the year;
Board’s statement to the effect that no bonus share or stock
1(5)(xxi) √
dividend has been or shall be declared as interim dividend;
The total number of Board meetings held during the year and
1(5)(xxii) √
attendance by each Director;
A Report on the pattern of Shareholding disclosing the aggregate
1(5)(xxiii) number of Shares (along with name-wise details where stated √
below) held by:
Parent or Subsidiary or Associated Companies and other related
1(5)(xxiii)(a) √
parties (name-wise details);
Directors, Chief Executive Officer, Company Secretary, Chief
1(5)(xxiii)(b) Financial Officer, Head of Internal Audit and Compliance and √
their spouses and minor children (name-wise details);

1(5)(xxiii)(c) Executives; and √

Shareholders holding ten percent (10%) or more voting interest

1(5)(xxiii)(d) √
in the Company (name-wise details);
In case of the appointment or reappointment of a director, a
1(5)(xxiii)(e) √
disclosure on the following information to the shareholders: -

1(5)(xxiv)(a) A brief Resume of the Director; √

1(5)(xxiv)(b) Nature of his or her expertise in specific functional areas; √

Names of companies in which the person also holds the

1(5)(xxiv)(c) √
Directorship and the membership of committees of the Board;

A Management’s Discussion and Analysis signed by CEO or

MD presenting detailed analysis of the Company’s position
1(5)(xxv) √
and operations along with a brief discussion of changes in the
financial statements, among others, focusing on:

Accounting Policies and estimation for preparation of Financial

1(5)(xxv)(a) √
Statements;

Changes in accounting policies and estimation, if any, clearly

describing the effect on financial performance or results and
1(5)(xxv)(b) √
financial position as well as cash flows in absolute figure for such
changes;

Comparative analysis (including effects of inflation) of financial

performance or results and financial position as well as cash
1(5)(xxv)(c) √
flows for current financial year with immediate preceding five
years explaining reasons thereof;

Compare such financial performance or results and financial

1(5)(xxv)(d) √
position as well as cash flows with the peer industry scenario;
Briefly explain the financial and economic scenario of the
1(5)(xxv)(e) √
country and the globe;

ANNUAL REPORT 2023 109

SONALI BANK PLC

Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied

Risks and concerns issues related to the financial statements,

1(5)(xxv)
explaining such risk and concerns mitigation plan of the √
(f)
Company;

Future Plan or Projection or forecast for Company’s operation,

1(5)(xxv) performance and financial position, with justification thereof,
√
(g) i.e., actual position shall be explained to the Shareholders in
the next AGM;

Declaration or Certification by the CEO and the CFO to the

1(5)(xxvi) Board as required under condition No. 3(3) shall be disclosed √
as per Annexure-A;

The Report as well as certificate regarding compliance of

1(5)
conditions of this Code as required under condition No. 9 shall √
(xxvii)
be disclosed as per Annexure-B and Annexure-C.

1(6) Meetings of the Board of Directors

The Company shall conduct the Board Meetings and record

the Minutes of the Meetings as well as keep required Books and
records in line with the provisions of the relevant Bangladesh
1(6) √
Secretarial Standards (BSS) as adopted by the Institute of
Chartered Secretaries of Bangladesh (ICSB) in so far as those
standards are not inconsistent with any condition of this Code.

Code of Conduct for the Chairperson, other Board members

1(7) N/A
and Chief Executive Officer

The Board shall lay down a Code of Conduct, based on the

recommendation of the Nomination and Remuneration
1(7) (a) Committee (NRC) at condition No. 6, for the Chairperson of N/A
the Board, other Board Members and Chief Executive Officer
of the Company;

The Code of Conduct as determined by the NRC shall be

1(7)(b) N/A
posted on the website of the Company.

The Code of Conduct as determined by the NRC shall be

1(7)(b) N/A
posted on the website of the Company.

2. Governance of Board of Directors of Subsidiary Company

Provisions relating to the composition of the Board of the

2(a) holding Company shall be made applicable to the composition √
of the Board of the subsidiary Company;

At least 1 (one) Independent Director on the Board of the

2(b) holding Company shall be a Director on the Board of the √
subsidiary Company;

The Minutes of the Board meeting of the subsidiary Company

2(c) shall be placed for review at the following Board meeting of √
the Holding Company;

The Minutes of the respective Board meeting of the holding

2(d) Company shall state that they have reviewed the affairs of the √
subsidiary Company;

The Audit Committee of the holding Company shall also

2(e) review the Financial Statements, in particular the investments √
made by the subsidiary Company.

110 ANNUAL REPORT 2023

 Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied

Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal Audit
3.
and Compliance (HIAC) and Company Secretary (CS)

3(1) Appointment

The Board shall appoint a Managing Director (MD) or Chief

Executive Officer (CEO), a Company Secretary (CS), a Chief
3(1)(a) √
Financial Officer (CFO) and a Head of Internal Audit and
Compliance (HIAC);

The positions of the Managing Director (MD) or Chief Executive

Officer (CEO), Company Secretary (CS), Chief Financial Officer
3(1)(b) √
(CFO) and Head of Internal Audit and Compliance (HIAC) shall
be filled by different individuals;

The MD or CEO, CS, CFO and HIAC of a listed Company shall

3(1)(c) not hold any executive position in any other Company at the √
same time;

The Board shall clearly define respective Roles, Responsibilities

3(1)(d) √
and Duties of the CFO, the HIAC and the CS;

The MD or CEO, CS, CFO and HIAC shall not be removed from
3(1)(e) their position without approval of the Board as well as immediate √
dissemination to the Commission and Stock Exchange (s).

3(2) Requirement to attend Board of Directors’ Meetings

The MD or CEO, CS, CFO and HIAC of the Company shall

attend the meetings of the Board: Provided that the CS, CFO
3(2) and/or the HIAC shall not attend such part of a meeting of the √
Board which involves consideration of an agenda item relating
to their personal matters.

3(3) Duties of Managing Director (MD) or Chief Executive Officer (CEO) and Chief Financial Officer (CFO)

The MD or CEO and CFO shall certify to the Board that they
3(3)(a) have reviewed Financial Statements for the year and that to the √
best of their knowledge and belief:

Financial Statements do not contain any materially untrue

3(3)(a)(i) statement or omit any material fact or contain statements that √
might be misleading;

Financial Statements together present a true and fair view of

3(3)(a)(ii) the Company’s affairs and are in compliance with existing √
accounting standards and applicable laws;

The MD or CEO and CFO shall also certify that there are, to the
best of knowledge and belief, no transactions entered into by
3(3)(b) the Company during the year which are fraudulent, illegal or in √
violation of the code of conduct for the Company’s Board or
its members;

The certification of the MD or CEO and CFO shall be disclosed

3(3)(c) √
in the Annual Report.

4. Board of Directors’ Committee

4(i) Audit Committee; and √

4(ii) Nomination and Remuneration Committee. -

ANNUAL REPORT 2023 111

SONALI BANK PLC

Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied

5. Audit Committee

5(1) Responsibility to the Board of Directors

The Company shall have an Audit Committee as a Sub-

5(1)(a) √
Committee of the Board;
The Audit Committee shall assist the Board in ensuring that the
Financial Statements reflect true and fair view of the state of
5(1)(b) √
affairs of the Company and in ensuring a good monitoring
system within the business;
The Audit Committee shall be responsible to the Board; the
5(1)(c) √
duties of the Audit Committee shall be clearly set forth in writing.

5(2) Constitution of the Audit Committee

The Audit Committee shall be composed of at least 3 (three)

5(2)(a) √
members;
The Board shall appoint members of the Audit Committee who
shall be non- executive Directors of the Company excepting
5(2)(b) √
Chairperson of the Board and shall include at least 1 (one)
Independent Director;
All members of the Audit Committee should be ‘Financially
Literate’ and at least 1 (one) member shall have accounting or
5(2)(c) √
related financial management background and 10 (ten) years of
such experience.
When the term of service of any Committee member expires
or there is any circumstance causing any Committee member
to be unable to hold office before expiration of the term of
service, thus making the number of the Committee members to
5(2)(d) be lower than the prescribed number of 3 (three) persons, the √
Board shall appoint the new Committee member to fill up the
vacancy immediately or not later than 1 (one) month from the
date of vacancy in the Committee to ensure continuity of the
performance of work of the Audit Committee;
The Company Secretary shall act as the secretary of the
5(2)(e) √
Committee;
The Quorum of the Audit Committee meeting shall not
5(2)(f) √
constitute without at least 1 (one) Independent Director.

5(3) Chairperson of the Audit Committee

The Board shall select 1 (one) member of the Audit Committee

5(3)(a) to be Chairperson of the Audit Committee, who shall be an √
Independent Director;
In the absence of the Chairperson of the Audit Committee, the
remaining members may elect one of themselves as Chairperson
for that particular meeting, in that case there shall be no problem
5(3)(b) √
of constituting a quorum as required under condition No. 5(4)(b)
and the reason of absence of the regular Chairperson shall be
duly recorded in the Minutes.
Chairperson of the Audit Committee shall remain present in the
5(3)(c) √
Annual General Meeting (AGM):

5(4) Meeting of the Audit Committee

The Audit Committee shall conduct at least four meetings in a

5(4)(a) √
financial year:
The Quorum of the meeting of the Audit Committee shall be
constituted in presence of either two members or two third
√
5(4)(b) of the members of the Audit Committee, whichever is higher,
where presence of an Independent Director is a must.

112 ANNUAL REPORT 2023

 Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied
5(5) Role of Audit Committee
5(5)(a) Oversee the financial reporting process; √
5(5)(b) Monitor choice of accounting policies and principles; √
Monitor Internal Audit and Compliance process to ensure that
it is adequately resourced, including approval of the Internal
5(5)(c) √
Audit and Compliance Plan and review of the Internal Audit and
Compliance Report;
5(5)(d) Oversee hiring and performance of external auditors; √
Hold meeting with the external or statutory auditors for review of
5(5)(e) the annual financial statements before submission to the Board √
for approval or adoption;
Review along with the management, the annual financial
5(5)(f) √
statements before submission to the Board for approval;
Review along with the management, the quarterly and half yearly
5(5)(g) √
financial statements before submission to the Board for approval;
5(5)(h) Review the adequacy of internal audit function; √
Review the Management’s Discussion and Analysis before
5(5)(i) √
disclosing in the Annual Report;
Review statement of all related party transactions submitted by
5(5)(j) √
the management;
Review Management Letters or Letter of Internal Control
5(5)(k) √
weakness issued by statutory auditors;
Oversee the determination of audit fees based on scope and
5(5)(l) magnitude, level of expertise deployed and time required for √
effective audit and evaluate the performance of external auditors;
Oversee whether the proceeds raised through Initial Public
Offering (IPO) or Repeat Public Offering (RPO) or Rights Share
5(5)(m) √
Offer have been utilized as per the purposes stated in relevant
offer document or prospectus approved by the Commission.
5(6) Reporting of the Audit Committee
5(6)(a) Reporting to the Board of Directors
5(6)(a)(i) The Audit Committee shall Report on its activities to the Board. √
The Audit Committee shall immediately Report to the Board on
5 (6)(a) (ii) √
the following findings, if any:
5(6)(a)(ii)(a) Report on Conflicts of Interests; -
Suspected or presumed fraud or irregularity or material defect
5(6)(a)(ii)(b) identified in the Internal Audit and compliance process or in the -
Financial Statements;
Suspected infringement of Laws, Regulatory compliances
5(6)(a)(ii)(c) -
including Securities related Laws, Rules and Regulations;
Any other matter which the Audit Committee deems necessary
5(6)(a)(ii)(d) -
shall be disclosed to the Board immediately;
5(6)(b) Reporting to the Authorities
If the Audit Committee has reported to the Board about anything
which has material impact on the financial condition and
results of operation and has discussed with the Board and the
Management that any rectification is necessary and if the Audit
5(6)(b) Committee finds that such rectification has been unreasonably -
ignored, the Audit Committee shall Report such finding to the
Commission, upon reporting of such matters to the Board for
three times or completion of a period of 6 (six) months from the
date of first reporting to the Board, whichever is earlier.

ANNUAL REPORT 2023 113

SONALI BANK PLC

Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied

5(7) Reporting to the Shareholders and General Investors

Report on activities carried out by the Audit Committee,

including any report made to the Board under condition No. 5(6)
5(7) (a)(ii) above during the year, shall be signed by the Chairperson √
of the Audit Committee and disclosed in the annual report of the
issuer Company.
Not applicable for Banking
Company as per
Nomination and Remuneration Committee (NRC)
6. guidelines of
Bangladesh Bank.

The Company shall have a Nomination and Remuneration

6(1)(a) -
Committee (NRC) as a sub- committee of the Board;
The NRC shall assist the Board in formulation of the nomination
criteria or policy for determining qualifications, positive attributes,
6(1)(b) experiences and independence of Directors and top-level -
executive as well as a policy for formal process of considering
remuneration of Directors, top level executive;
The Terms of Reference (ToR) of the NRC shall be clearly set forth
6(1)(c) -
in writing covering the areas stated at the Condition No. 6(5) (b).

6(2) Constitution of the NRC

The Committee shall comprise of at least three members including

6(2)(a) -
an independent director;

6(2)(b) All members of the Committee shall be non-executive Directors; -

Members of the Committee shall be nominated and appointed by

6(2)(c) -
the Board;
The Board shall have authority to remove and appoint any member
6(2)(d) -
of the Committee;
In case of death, resignation, disqualification, or removal of any
member of the Committee or in any other cases of vacancies, the
6(2)(e) -
board shall fill the vacancy within 180 (one hundred eighty) days of
occurring such vacancy in the Committee;
The Chairperson of the Committee may appoint or co-opt any
external expert and/or member(s) of staff to the Committee as
advisor who
6(2)(f) -
shall be non-voting member, if the Chairperson feels that advice
or suggestion from such external expert and/or member(s) of staff
shall be required or valuable for the Committee;
The Company secretary shall act as the secretary of the
6(2)(g) -
Committee;
The quorum of the NRC meeting shall not constitute without
6(2)(h) -
attendance of at least an independent director;
No member of the NRC shall receive, either directly or indirectly,
6(2)(i) any remuneration for any advisory or consultancy role or otherwise, -
other than Director’s fees or honorarium from the Company.

6(3) Chairperson of the NRC

The Board shall select 1 (one) member of the NRC to be Chairperson

6(3)(a) -
of the Committee, who shall be an independent director;
In the absence of the Chairperson of the NRC, the remaining
members may elect one of themselves as Chairperson for
6(3)(b) -
that particular meeting, the reason of absence of the regular
Chairperson shall be duly recorded in the minutes;
The Chairperson of the NRC shall attend the annual general
6(3)(c) -
meeting (AGM) to answer the queries of the Shareholders:

114 ANNUAL REPORT 2023

 Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied

6(4) Meeting of the NRC

6(4)(a) The NRC shall conduct at least one meeting in a financial year; -

The Chairperson of the NRC may convene any emergency

6(4)(b) -
meeting upon request by any member of the NRC;
The quorum of the meeting of the NRC shall be constituted in
presence of either two members or two third of the members
6(4)(c) of the Committee, whichever is higher, where presence of an -
independent director is must as required under condition No. 6(2)
(h);
The proceedings of each meeting of the NRC shall duly be
6(4)(d) recorded in the minutes and such minutes shall be confirmed in -
the next meeting of the NRC.

6(5) Role of the NRC

NRC shall be independent and responsible or accountable to the

6(5)(a) -
Board and to the Shareholders
NRC shall oversee, among others, the following matters and make
6(5)(b) -
report with recommendation to the Board:
Formulating the criteria for determining qualifications, positive
attributes and independence of a Director and recommend a
6(5)(b)(i) -
policy to the Board, relating to the remuneration of the directors,
top level executive, considering following:
The level and composition of remuneration is reasonable and
6(5)(b)(i)(a) sufficient to attract, retain and motivate suitable Directors to run -
the Company successfully;
The relationship of remuneration to performance is clear and
6(5)(b)(i)(b) -
meets appropriate performance benchmarks;
Remuneration to Directors, top level executive involves a balance
between fixed and incentive pay reflecting short and long-
6(5)(b)(i)(c) -
term performance objectives appropriate to the working of the
Company and its goals;
Devising a Policy on Board’s diversity taking into consideration
6(5)(b)(ii) age, gender, experience, ethnicity, educational background and -
nationality;
Identifying persons who are qualified to become Directors
and who may be appointed in top level executive position in
6(5)(b)(iii) -
accordance with the criteria laid down, and recommend their
appointment and removal to the Board;
Formulating the criteria for evaluation of performance of
6(5)(b)(iv) -
Independent Directors and the Board;
Identifying the Company’s needs for employees at different levels and
6(5)(b)(v) -
determine their selection, transfer or replacement and promotion criteria;
Developing, recommending and reviewing annually the
6(5)(b)(vi) -
Company’s human resources and training policies;
The Company shall disclose the nomination and remuneration
6(5)(c) policy and the evaluation criteria and activities of NRC during the -
year at a glance in its annual report.

7. External or Statutory Auditors

The issuer Company shall not engage its external or statutory

7 (1) √
auditors to perform the following services of the Company.

7(1)(i) Appraisal or valuation services or fairness opinions; √

7(1)(ii) Financial Information Systems design and implementation; √

ANNUAL REPORT 2023 115

SONALI BANK PLC

Compliance Status
Condition (Put √ in the appropriate column)
Title Remarks
No.
Complied Not complied
Book-Keeping or other services related to the accounting records
7(1)(iii) √
or financial statements;

7(1)(iv) Broker-Dealer Services; √

7(1)(v) Actuarial Services; √

7(1)(vi) Internal Audit services or special audit services; √

7(1)(vii) Any service that the Audit Committee determines; √

Audit or certification services on compliance of corporate

7(1)(viii) √
governance as required under condition No. 9(1); and

7(1)(ix) Any other service that creates conflict of interest. √

No partner or employees of the external audit firms shall possess

any share of the Company they audit at least during the tenure of
7(2) √
their audit assignment of that Company; his or her family members
also shall not hold any shares in the said Company.
Representative of external or statutory auditors shall remain present in the
7(3) Shareholders’ Meeting (Annual General Meeting or Extraordinary General √
Meeting) to answer the queries of the Shareholders.

8. Maintaining website by the Company

The Company shall have an Official Website linked with the

8(1) √
website of the Stock Exchanges.
The Company shall keep the website functional from the date of
8(2) √
listing.
The Company shall make available the detailed disclosures on its
8(3) website as required under the listing regulations of the concerned √
stock exchange(s).

9. Reporting and Compliance of Corporate Governance

The Company shall obtain a Certificate from a practicing

Professional Accountant or Secretary (Chartered Accountant or
Cost and Management Accountant or Chartered Secretary) other
9(1) than its statutory auditors or audit firm on yearly basis regarding √
compliance of conditions of Corporate Governance Code of the
Commission and shall such certificate shall be disclosed in the
Annual Report.
The Professional who will provide the certificate on compliance
9 (2) of this Corporate Governance Code shall be appointed by the √
Shareholders in the Annual General Meeting.

The Directors of the Company shall state, in accordance with

9 (3) the Annexure-C attached, in the Directors’ report whether the √
Company has complied with these conditions or not.

116 ANNUAL REPORT 2023

REPORT OF THE
SHARIAH SUPERVISORY COMMITTEE

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ANNUAL REPORT 2023 117

SONALI BANK PLC

DECLARATION BY
CEO AND CFO TO THE BOARD
Date: 30 April 2024

The Board of Directors

Sonali Bank PLC
35-42, 44 Motijheel Commercial Area,
Dhaka, Bangladesh.

Subject: Declaration on Financial Statements for the year ended on 31 December 2023.

Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/ 2006-
158/207/ Admin/80 dated 03 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do
hereby declare that:

(1) The Financial Statements of Sonali Bank PLC for the year ended on 31 December 2023 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as
applicable in the Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis,
in order for the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly
presented in its financial statements;
(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established
policies and procedures of the Company were consistently followed; and
(6) The management’s use of the going concern basis of accounting in preparing the financial statements is
appropriate and there exists no material uncertainty related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern.

In this regard, we also certify that: -

(i) We have reviewed the financial statements for the year ended on 31 December 2023 and that to the best of our
knowledge and belief:
(a) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with
existing accounting standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the company during the year
which are fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or
its members.

Sincerely yours,

(Md. Afzal Karim) (Md Iqbal Hossain, ACMA, CFA, FRM)

Chief Executive Officer Chief Financial Officer (CFO)

118 ANNUAL REPORT 2023

DIRECTORS’ RESPONSIBILITY FOR
FINANCIAL STATEMENTS
Proper Financial Reporting ii. Financial statements reflects the development
and performance of the business and the position
The Board of Director of Sonali Bank PLC is responsible of the Bank and the undertakings included in the
to cause preparation and true & fair presentation of the consolidation taken as a whole, together with a
annual financial statements of 2023 and other financial description of the principal risks and uncertainties
information and reports contained in this annual report that they face.
by the management. The accompanying financial
statements have been prepared in accordance with iii. Appropriate accounting policies have been adopted
International Financial Reporting Standards (IFRS) and and applied that consistently.
Bangladesh Accounting Standards as espoused by the
iv. Prudent and reasonable estimates along with
Institute of Chartered Accountants of Bangladesh and
judgment have been applied.
Companies Act 1994, Banking Companies Act 1991
(Amended-2023), rules and regulations of Bangladesh Adequate Internal Control
Bank and Bangladesh Securities and Exchange Rules
1987 as considered relevant and appropriate under the In line with requirement of section 15 (C) of Bank
circumstances. In cases where amounts are stated based Companies Act-1991 (Amended- 2018), the Board of
on estimate those are based on informed judgment and Directors of SBPLC is entrusted to establish suitable
estimate made by the management and agreed by the system of Internal Control and Compliance (ICC).
Board of Directors. The financial information and data Accordingly the Board is very much concerned
provided in this annual report is fully consistent with the about this. In setting out a strong internal control and
financial statements. compliance framework within the organization, the
Board established Board Audit Committee and Board
While preparing the report, the Directors didn’t approve Risk Management Committee to ensure effective ICC in
the financial statements unless they are satisfied that the Bank as a part of oversight functioning. In addition
they give a true and fair view of the state of affairs of to that, SBPLC has formed Senior Management Team
the Company as at the end of the financial year and of (SMT) to identify, measure, monitor and control the risks
their profit or loss for the year. The Directors have also through framing required policies and procedures with
been obliged to ensure that the Company keeps proper the approval of the Board of Directors.
accounting records that disclose, with reasonable
accuracy, the financial position of the Company. They Gripping of Banking Operational Risks
have driven the wheel of responsibility for safeguarding
the assets of the Bank. The policy of managing operational risk through internal
control and compliance is approved by the Board taking into
INCOME RETAINED BALANCE account the relevant guidelines of Bangladesh Bank. The
STATEMENT EARNINGS SHEET committee puts in place policies and procedures to identify,
measure, monitor and control these risks and monitors the
Revenues Asset
adequacy and effectiveness of the internal control system
Net Income
based on the Bank’s established policy and procedure.
-Expenses Dividends -Liabilities
Retained Owners` Independency to the Audit Committee
Net Income Earnings Equity
The Internal control, accounting policies and financial
reporting of SBPLC are under direct supervision of
Nothing has come to the attention of the Directors to
the audit committee of the Board that in turn report
indicate that the Bank will not remain a going concern for
to the Board of Directors for general oversight and
at least twelve months from the date of this statement.
supervision. Audit committee of the board is fully
We confirm that to the best of our knowledge: independent of executive management. The committee
regularly reviews reports prepared by internal control
i. The financial statements, prepared in accordance and compliance department covering all the business
with the applicable set of accounting standards, operations of the Bank with particular focus on core
give a true and fair view of the assets, liabilities, risks. ICC division of the Bank also carries on its activities
financial position and profit or loss of the Bank independently without any intervention and produced
and the undertakings included in the consolidation the audit and ICC reports to the Board audit Committee
taken as a whole. and the Board independently.

ANNUAL REPORT 2023 119

SONALI BANK PLC

Gratis Accessibility to the External Audits statements made available by the management together
with all the financial records, related data, minutes of
External audit of SBPLC has the full access to the Audit shareholders and board meetings, relevant policies and
Committee of the Board for ensuring effectiveness of expressed their clean opinion.
internal control procedure and reliability of financial
reporting. The Control and Monitoring Division of the
Bank conducts periodic audits to provide reasonable
With best regards
assurance that the established policies and procedures
of the company were consistently followed. The On behalf of the Board of the Directors
auditors of the company, Hoda Vasi Chowdhury & Co.
and Howladar Yunus & Co., Chartered Accountants,
have carried out annual audit to review on the system
of internal controls, as they consider appropriate and
necessary, for expressing their opinion on the financial (Ziaul Hasan Siddiqui)
statements. They have also examined the financial Chairman

120 ANNUAL REPORT 2023

REPORT OF THE AUDIT COMMITTEE
The primary purposes
of the Audit Committee
are to provide
independent and
objective oversight of
the accounting and
financial reporting
functions along with the
internal controls of the
Bank and its affiliates
and to ensure the
objectivity of the Bank’s
financial statements.

Gopal Chandra Ghosh

Chairman
Audit Committee
Board of Directors

The Audit Committee of the Board of Sonali Bank PLC has been functioning as a sub-committee appointed by the
Bank’s Board of Directors in compliance with the Bank Company Act 1991 (amended 2023), Bangladesh Bank’s BRPD
Circular No. 11 of 27 October 2013 and the relevant Notifications of Bangladesh Securities and Exchange Commission
(BSEC) as well as international best practices on Corporate Governance. The primary purposes of the Audit Committee
are to provide independent and objective oversight of the accounting and financial reporting functions along with
the internal controls of the Bank and its affiliates and to ensure the objectivity of the Bank’s financial statements. The
Audit Committee’s function is one of oversight and review, and it is not required to prepare or audit the financial
statements, to define the scope of the audit, to control the Company’s accounting policies and practices, or to define
the standards used in preparing the financial statements

Key Objectives of Audit Committee

To review the financial reporting process, the system of internal control and compliance, the approach to
management of financial risks, the audit process, the processes used by the Bank to identify, quantify and
mitigate significant risks to the achievement of objectives, the findings of Bangladesh Bank’s processes for
monitoring compliance under relevant laws and regulations and its own code of business conducts.

To assist the Board in discharging its oversight responsibilities by implementing relevant strategies and
policies.

ANNUAL REPORT 2023 121

SONALI BANK PLC

Composition of the Audit Committee bank and ensured that the policies are properly
applied in the preparation of the Financial
In compliance with Section 3.2(i) of Corporate Statements of the Bank.
Governance Notification issued by BSEC on 07 August
2012 and Bangladesh Bank’s BRPD Circular No. 11 of • Review of Interim Financial Statement: The Audit
27 October 2013, the Audit Committee of Board of Committee reviewed the quarterly and the half
Directors of SBPLC was last re-constituted with the yearly Financial Statements and ensured that
following Board members: authentic and reliable financial information are
incorporated in those statements and in other
Status with Status with the interim reports.
Name
the Bank Committee
Mr. Gopal Chandra Ghosh Director Chairman • Review of Financial Statements: The Audit
Dr. Daulatunnaher Khanam Director Member Committee reviewed and examined the Financial
Professor Dr. Mohammad Statements of 2023 of the Bank to confirm whether
Director Member
Kaykobad all the required disclosures and information have
Dr. Md. Matiur Rahman Director Member been incorporated in the Financial Statements and
whether the Bank followed International Accounting
Company
Mr. Tauhidul Islam Secretary Standards (IAS) and International Financial Reporting
Secretary
Standards (IFRS) adopted as Bangladesh Accounting
Roles and Responsibilities of Audit Committee Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS) by the Institute of Chartered
The roles and responsibilities of Audit Committee of Accountants of Bangladesh, Bank Company Act
Sonali Bank PLC have been specified by considering the 1991(amended 2023), Bangladesh Bank Guidelines,
provisions of BRPD Circular No 11 of 27 October 2013 the Companies Act 1994, the Bangladesh Securities
Corporate Governance Notification issued by BSEC and Exchange Commission Rules and other laws and
on 07 August 2012 and other best practice corporate rules applicable in Bangladesh and also Standards
governance guidelines and standards. issued by the Accounting and Auditing Organization
for Islamic Financial Institutions (AAOIFI), Bahrain,
Meetings of Audit Committee etc. The Committee recommended the Financial
Statements for the year 2023 for consideration of
The Audit Committee of the bank held as many as 10
the Board.
(ten) meetings in 2023. In those meetings, the committee
reviewed the findings and recommendations in the
reports of the bank’s internal and external auditors and
Other activities:
assessed the remedial actions taken by the management.
• Oversee the financial reporting process & liquidity
Proceedings of the Audit Committee meetings were
position of the bank at regular basis.
reported timely and regularly to the Board of Directors
as well as Bangladesh Bank in compliance with the DOS
circular letter no. 07 of 24 April 2011.
• Reviewed internal & external auditors findings
on the irregularities both major & significance at
Major Highlights of the Audit Committee different branches of the bank and reference those
to the Board with appropriate recommendation
activities in 2023
for decision, reviewed draft & audited financial
During the year under review, the committee performed statements for the year 2022.
amongst others the following key functions:
• Reviewed performance of internal audit 2023.
• Appointment of Statutory Auditors: The Audit
Committee made recommendations to the Board
• Reviewed the reconciliation performance of inter
for appointing Statutory Auditors in the Annual
branch transaction accounts and advised the
General Meeting.
management to keep it regular.

• Meeting with Statutory Auditors: The committee

• Reviewed the comprehensive inspection report on
met with the statutory auditors for finalization of
SBPLC by Bangladesh bank as on 31.12.2023.
financial statements for the year 2023. It also looks
into account the issues raised in the Management
Letter and advised the management to take
• Reviewed the cash holding position of different
branches & advise the management to ensure
appropriate remedial actions.
maintenance of optimum level of cash to reduce
idle cash in hand as per as practicable.
• Review of Accounting Policy: The Audit Committee
reviewed the accounting policies adopted by the

122 ANNUAL REPORT 2023

• Reviewed existing policy of ICC, Risk Grading, Credit • Reviewed the audit report of the subsidiaries and
Policy, Quarterly Risk Management Paper etc. and directing the authority to take necessary action as
made recommendation to Board for approval. appropriate.

• Reviewed unaudited quarterly & half yearly financial Acknowledgments

statements of the bank for the year 2023.
The Committee would like to place on record its sincere
• Monitor internal control risk management process. thanks and gratitude to the regulatory authorities,
in particular, Bangladesh Bank and the Bangladesh
Securities and Exchange Commission, external auditors,
• Discussed and reviewed annual budget 2023 &
the Board of Directors and management for their earnest
revised budget 2022 and recommended to the
support while performing its duties and responsibilities.
board with some amendments.
In conclusion, I would like to convey my sincere thanks
• Reviewed the compliance status of audit objections to the members of the Committee for their invaluable
and advised the management to ensure full support and cooperation in carrying out the tasks
compliance of regulatory, legal and significant entrusted with the Committee.
issues meticulously.

• Reviewed the audit rating by internal audit on Anti

Money Laundering of all branches for the year 2022.
For and on behalf of Audit Committee

• Discuss and reviewed the effectiveness of annual

audit plan 2023 and made recommendation to the
board for approval with suggested amendments.

• Reviewed existing risk management procedures (Gopal Chandra Ghosh)

along with implementation of core risk management Chairman
guidelines and advised the managements to Audit Committee
implement the same more effectively. Board of Directors

ANNUAL REPORT 2023 123

SONALI BANK PLC

NOTE FROM THE CHAIRMAN OF RISK

MANAGEMENT COMMITTEE
Achieving Bangladesh’s
vision of attaining upper
middle-income status
by 2031 necessitates a
multifaceted approach.
Creating jobs, enhancing
human capital, and
improving infrastructure
are paramount to
fostering a competitive
business environment
and attracting private
investment.

A.B.M. Ruhul Azad

Chairman
Risk Management Committee
Board of Directors

Bangladesh’s journey indeed stands out as a remarkable Achieving Bangladesh’s vision of attaining upper middle-
success story in terms of economic growth and poverty income status by 2031 necessitates a multifaceted
reduction. The country’s consistent progress in various approach. Creating jobs, enhancing human capital, and
sectors, such as Agriculture, Ready-made garment improving infrastructure are paramount to fostering
exports, remittances, and macroeconomic stability, a competitive business environment and attracting
have played a pivotal role in fostering its development. private investment. Diversifying exports beyond the
The statistics reflecting poverty reduction are particularly ready-made garment sector is crucial for sustaining
striking, showcasing substantial improvements in living growth and mitigating risks associated with sectoral
standards for millions of Bangladeshis. Achieving lower- dependence. Addressing financial sector vulnerabilities,
middle-income status in 2015 and being on track to promoting sustainable urbanization, and strengthening
graduate from the UN’s Least Developed Countries list public institutions are vital development priorities. Fiscal
in 2026 are significant milestones that underscore the reforms aimed at generating more domestic revenue
effectiveness of Bangladesh’s development strategies. can facilitate investment in infrastructure and social
Moreover, the improvements in human development programs, thereby accelerating growth and improving
indicators, including reductions in infant mortality living standards. Furthermore, addressing climate
and stunting, and advancements in literacy rates and change and natural disaster vulnerabilities is imperative
access to electricity, demonstrate a comprehensive for building resilience and ensuring sustainable
approach towards enhancing the well-being of its development outcomes. Embracing green growth
citizens. However, the noted increase in inequality in principles can not only mitigate environmental risks but
urban areas is a reminder of the challenges that persist also contribute to long-term economic sustainability
alongside these achievements. Addressing disparities in and enhance the well-being of future generations.
access to opportunities and resources, particularly in
rapidly urbanizing areas, will be crucial for ensuring that Bangladesh’s economy has demonstrated resilience in
the benefits of growth are equitably distributed across recovering from the economic shocks brought about
society. by the COVID-19 pandemic and the global uncertainties

124 ANNUAL REPORT 2023

stemming from events like the Russia-Ukraine crisis. practices throughout the organization. This involves
However, the recent slowdown in the global economy instilling a sense of responsibility for risk management
has posed challenges to sustaining the country’s among all employees and integrating risk considerations
growth momentum. Before the onset of the pandemic, into decision-making processes at every level.
Bangladesh’s economy was on a robust growth
trajectory, with a GDP growth rate of 7.88 percent in In addition to financial risks, the bank recognizes the
FY 2018-19. The pandemic-induced disruptions led to a importance of addressing emerging threats such as
significant slowdown, with growth plummeting to 3.45 financial crime and cyber risks. Significant progress has
percent in FY 2019-20. Subsequent years witnessed a been made in combating financial crime, while efforts
gradual recovery, with growth rates of 6.94 percent in to enhance cyber risk management capabilities have
FY 2020-21 and 7.10 percent in FY 2021-22. Despite the been intensified to safeguard the bank’s operations
recovery efforts, the global economic slowdown has and protect the interests of employees, clients, and
weighed on Bangladesh’s growth prospects, reflected stakeholders.
in the provisional GDP growth estimate of 6.03 percent
for FY 2022-23, indicating moderation compared to Overall, risk management is acknowledged as a shared
previous years. responsibility across Sonali Bank PLC, underscoring its
integral role in shaping strategic decisions and ensuring
Navigating through these challenges will require the long-term sustainability and success of the institution.
continued resilience and adaptability from Bangladesh’s
policymakers and businesses. Prioritizing measures to Composition of the Risk Management Committee
bolster domestic economic activities, enhance export of the Board of Directors
competitiveness, and attract investment will be essential In line with the circular no.11 dated 27 October, 2013
for sustaining growth momentum and fostering long- of Bangladesh Bank, the Risk Management Committee
term economic stability. Additionally, ensuring social of Sonali Bank PLC was last re-constituted with the
safety nets and support mechanisms for vulnerable following members of the Board of Directors:
segments of the population will remain critical in
mitigating the impacts of economic disruptions and
Status
promoting inclusive growth. Status with
Name with the
the Bank
committee
In summary, Bangladesh’s path towards achieving its
A.B.M. Ruhul Azad Director Chairman
development goals requires a comprehensive strategy
that addresses immediate challenges while laying the Dr. Daulatunnaher Khanam Director Member
foundation for sustainable and inclusive growth. By
prioritizing key areas such as job creation, infrastructure Mr. Molla Abdul Wadud Director Member
development, and climate resilience, Bangladesh can Professor Dr. Mohammad
Director Member
navigate the current headwinds and realize its aspirations Kaykobad
for prosperity and progress. Company
Mr. Tauhidul Islam Secretary
Secretary
Overall, Bangladesh’s success story serves as a
testament to the effectiveness of strategic policymaking, The Board of Directors’ Risk Management Committee
investment in key sectors, and the resilience and plays a crucial role in overseeing and reviewing various
determination of its people to overcome challenges and prudential risks within Sonali Bank PLC. These risks
build a prosperous future. encompass a wide range of areas, including credit risk,
country cross-border risk, market risk, pension risk,
Sonali Bank PLC has adopted a proactive approach capital risk, liquidity and funding risk, and operational
towards managing risks within its operations, particularly risk. In addition to these traditional risks, the committee
focusing on macro-prudential measures to ensure also focuses on key cyber risks, threats, and events,
financial stability and resilience. This includes close recognizing the evolving landscape of risks in the
monitoring of adherence to Asset-Liability Management digital age. The committee is responsible for staying
(ALM) and Foreign Exchange Risk Management abreast of project updates and monitoring the Board’s
Guidelines, aiming to optimize the Advance/Deposit top risk profile updates as identified. Regular reporting
Ratios and prevent over-exuberance in lending mechanisms ensure that the committee is kept
activities. Through these measures, the bank has informed about risk management practices, including
witnessed improvements in asset quality, underpinned portfolio trends, policies and standards, stress testing,
by enhanced origination discipline and targeted growth liquidity, and capital adequacy. This information equips
strategies. Diversification of loans across industry the committee with the necessary insights to make
sectors and geographical regions has been prioritized, informed decisions and take appropriate actions to
reflecting a prudent approach to risk management and a mitigate risks effectively.
commitment to sustainable growth. Furthermore, Sonali
Bank is dedicated to fostering a robust risk culture and Furthermore, the committee is vested with the authority
implementing effective enterprise risk management to investigate or seek any information related to activities

ANNUAL REPORT 2023 125

SONALI BANK PLC

within its terms of reference. This authority underscores It’s commendable to see Sonali Bank PLC’s commitment
the committee’s mandate to ensure transparency, to enhancing its infrastructure for compliance with risk
accountability, and adherence to risk management management standards and improving various aspects
protocols throughout the organization. such as exposure management, data quality, stress
testing, and operational risk management. Streamlining
Overall, the dynamic nature of risk management processes not only benefits clients by providing better
necessitates a proactive and vigilant approach, and service but also drives internal efficiencies, ultimately
the Board of Directors Risk Management Committee contributing to the bank’s overall effectiveness and
plays a pivotal role in fulfilling this responsibility, thereby success.
contributing to the resilience and sustainability of Sonali
Bank PLC. Acknowledging the invaluable contribution of colleagues
within the Risk Management Committee underscores
We have a number of ongoing initiatives that will further the collaborative effort and teamwork required to
enhance the risk management framework and capability effectively manage risks within the organization. Their
of the bank. Major issues and areas of interest dealt with guidance, support, and expertise are instrumental in
by RMC during 2023 are noted below: ensuring the smooth functioning of the committee and
the fulfillment of its objectives. Additionally, recognizing
• Reviewed monthly Risk Management Reports,
the efforts of all members of the Risk Management
half yearly Comprehensive Risk Management
Committee, as well as executives and officers within
Reports (CRMR), Quarterly Stress Test Reports
the Risk Management Division, reflects a culture of
and recommendations of ERMC (Executive
appreciation and gratitude for their dedication and hard
Risk Management Committee)
work in safeguarding the bank’s interests and ensuring
• Reviewed Recovery Plan of Sonali Bank PLC. prudent risk management practices.
• Reviewed ICAAP (Internal Capital Adequacy
Assessment Process) and SRP (Supervisory Finally, expressing gratitude to the Chairman and other
Review Process) return of Sonali Bank PLC. members of the Board for their confidence in overseeing
the risk management agenda demonstrates a strong
• Reviewed Comprehensive Risk Management
commitment to governance and leadership, fostering
Ratings of Sonali Bank PLC.
trust and accountability within the organization.
• Reviewed risk register of Sonali Bank PLC. Overall, Sonali Bank PLC’s proactive approach to risk
• Reviewed and endorsed Bank’s risk appetite/ management and its culture of appreciation for the
internal limits for 2023 on major risk areas to contributions of its team members bode well for its
place towards Board of Directors for approval. continued success and resilience in the face of evolving
challenges.
• Reviewed periodically Top 20 credit exposure
(Group) of Sonali Bank in terms of limit offered
to counterparties and advised management to
closely monitor the account performance and to
(A.B.M. Ruhul Azad)
pay special attention to the vulnerable accounts.
Chairman
• Reviewed Corporate Social Responsibility Risk Management Committee
Guidelines of Sonali Bank PLC. Board of Directors

126 ANNUAL REPORT 2023

STAKEHOLDERS
INFORMATION

ANNUAL REPORT 2023 127

SONALI BANK PLC

STAKEHOLDERS AND SHAREHOLDERS

INFORMATION
Keeping in mind the diverse nature of stakeholders mainly customers- depositors and borrowers, Ministry of Finance,
Bangladesh Bank, BSEC, NBR and employees etc., the Bank is required to strategically define its key stakeholder
audience with a view to ensuring pragmatism in engagement and reporting. This helps to determine the Bank to
define its key stakeholders as employees, customers, shareholders and investors, suppliers and service providers,
government and other regulators, communities and environment. At a glance, it is highlighted below:

Stakeholders- at a glance
• Ministry of Finance
• Bangladesh Bank
• National Board of Revenue
• BSEC
Government and other regulators
• ICAB, ICMAB, ICSB
• Comptroller of Auditor General of Bangladesh
• External Auditors
• All business chambers
• Retail customers
• Rural credit customers
• SME and corporate client
Customers
• Q-cash cardholders
• Remittance customers
• Importer and exporter
Shareholders • Government of the People's Republic of Bangladesh
• Permanent staff
• Contract staff
Employees
• Management trainees and interns
• Outsourced staff
• Correspondent banks
• Foreign remittance agents
• Landlord of leased premises
Suppliers and Service Providers
• Suppliers of fixed assets
• Maintenance and security service providers
• Suppliers of fixed assets
• Professionals and self-employers
• Civil society
Communities and Environment
• Graduate students
• Different communities

128 ANNUAL REPORT 2023

Shareholding Structure of SBPLC

Number of Shares
Particulars
As at 31 December, 2023 As at 31 December, 2022
General Public - -
Government 453,000,000 453,000,000
Total 453,000,000 453,000,000

Present Shareholding Pattern

SI. Sponsor Shareholders No. of Shares Amount in Tk. (%) of Shareholding
The Government of the People's Republic of Bangladesh:
1 On Behalf of Secretary Finance Division Ministry of Finance, 452,999,992 45,299,999,200 99.999998234
The Government of the People's Republic of Bangladesh
Individual Directors nominated by the Government
2 Mr. Ziaul Hasan Siddiqui 1 100 0.00000022075
3 Mr. A.B.M Ruhul Azad 1 100 0.00000022075
4 Dr. Daulatunnaher Khanam 1 100 0.00000022075
5 Mr. Molla Abdul Wadud 1 100 0.00000022075
6 Professor Dr. Mohammad Kaykobad 1 100 0.00000022075
7 Dr. Md. Matiur Rahman 1 100 0.00000022075
8 Dr. Abul Kalam Azad 1 100 0.00000022075
9 Mr. Gopal Chandra Ghosh FCA, FCMA, CPA 1 100 0.00000022075
10 Mr. Md. Afzal Karim - - -
Total 453,000,000 45,300,000,000 100.00

Shareholding Pattern of CEO and Managing Director, CFO, Company Secretary and Head of
Internal Audit:

SI. Particulars % of Shareholding as at 31 December, 2023

01 CEO and Managing Director and his spouse and minor children --
02 CFO and his spouse and minor children --
03 Company Secretary and his spouse and minor children --
04 Head of Internal Audit and his spouse and minor children --

Accessibility of Annual Report: Queries Relating to Corporate Information:

Annual Report 2023 and other information about SBPLC Queries relating to any corporate information and
may be accessed on Bank’s Website: www.sonalibank. published financial information may be addressed to the
com.bd. SBPLC provides copies of Annual Report to the Company Secretary of Sonali Bank PLC.
Ministry of Finance, Bangladesh Securities and Exchange
Commission, Bangladesh Bank, Registrar of Joint Stock Related Parties:
Companies and Firms for their reference.
The Bank provides banking service to different ministries
Shareholders Inquiries and Communication: and corporations in the form of advances, letter of credit,
bank guarantee etc. but the Bank had no transactions
Shareholders and others may contact at any time to with the Directors of the Bank as a related party.
Public Relations Division of Head Office for any sort
of information and query. In order to make the AGM
more participatory, it is arranged in Bank premises and
in convenient time to allow shareholders to speak in the
AGM freely for their valuable suggestions.

ANNUAL REPORT 2023 129

SONALI BANK PLC

Redressing to Shareholders' Observations/ Suggestions:

In the 16th Annual General Meeting of the Bank, Directors and shareholders addressed some behavioral and financial
facts and services of the Bank and hence put suggestions for progressive development. Management of the Bank
addressed the observations seriously and worked hard to diminish the complaints as suggested thereof. Some
justifications are tabulated below:

SI. Complaints/Suggestions Redress to Shareholders' Complaints

To include division wise deposit amount into Financial Division wise deposits have been included in Financial
1.
Statements. Statements since 2014.
To include division wise loans and advances into Financial Division wise loans and advances have been included in
2.
Statements. Financial Statements since 2014.
Till date, SBPLC has established 236 ATM Booths for the
To increase sufficient number of ATM Booths with card holders. Furthermore, SBPLC card holders can also get
3. sophisticated machines in both urban and rural branches and access of their cards from other booths countrywide.
urged to make the Bank's website user friendly. SBPLC's website has been developed in such a way that
anyone can use the website easily.
Requested to arrange the AGM on Friday or Saturday in
4. AGM will be arranged subject to availability of suitable venue.
future, if possible
Suggested for publishing and printing of Annual Report Annual Report is published through the website of SBPLC
in abridged form with important data/information and (www.sonalibank.com.bd). Mentionable here is that Annual
5.
uploading the detailed Annual Report in the website of the Report of the previous year has been preserved in the
Bank ensuring green banking practice. mentioned web address.
Necessary guidelines, instructions in this regard have
been provided to the branches by the Management of the
Suggested for rendering better customer service by the
6. Bank from time to time following constant supervision
branch officials other than that of conventional banks.
and monitoring from Head Office regarding meticulous
compliance of the same.
Suggested to provide adequate logistic support, modern The Management of the Bank is heartily trying to provide
technology and well decoration to all branches for adequate logistic support, modern technology and well
7.
compliance of the Bank and improvement of customer decoration to all branches for compliance of the Bank and
services. improvement of customer services.

130 ANNUAL REPORT 2023

(i) Present Directors of Sonali Bank PLC and their interest in the Bank :

Date of Appointment/
SI. Name Present Address No. of Shares
Reappointment
Mr. Ziaul Hasan Siddiqui
01. - 28-08-2019 01
Chairman of the Board of Directors
02. Mr. A.B.M Ruhul Azad - 15-06-2021 01

03. Dr. Daulatunnaher Khanam - 22-12-2016 01

04. Mr. Molla Abdul Wadud - 13-01-2019 01
05. Professor Dr. Mohammad Kaykobad - 25-08-2020 01

06. Dr. Md. Matiur Rahman - 10-02-2022 01

07. Dr. Abul Kalam Azad - 05-09-2022 01

08. Mr. Gopal Chandra Ghosh FCA, FCMA, CPA 07-03-2023 01

09. Mr. Md. Afzal Karim - 28-08-2022 -

(ii) Particulars of Directors of Sonali Bank PLC and their interest in other entities:

Name of the firms/companies in which

interested as proprietor, partner. Managing
SI. Name Status with SBPLC Status
Director, managing agent, guarantor,
employee etc.
Mr. Ziaul Hasan Siddiqui
1. Chairman of the Board of Chairman -- --
Directors
2. Mr. A.B.M Ruhul Azad Director -- --
3. Dr. Daulatunnaher Khanam Director Dhaka Imperial Group Limited Director
4. Mr. Molla Abdul Wadud Director -- --
Professor Dr. Mohammad
5. Director -- --
Kaykobad
6. Dr. Md. Matiur Rahman Director -- --
7. Dr. Abul Kalam Azad Director -- --
Mr. Gopal Chandra Ghosh Basu Banerjee Nath & Co.
8. Director Managing Director
FCA, FCMA, CPA Chartered Accountants
Padma Bank PLC. Chairman
Bangladesh Foreign Exchange Dealers
Association (BAFEDA) Chairman
Primary Dealers Bangladesh Limited (PDBL) Chairman
Sonali Investment Limited. Chairman
Sonali Intellect Limited. Chairman

Institute of Bankers, Bangladesh (IBB) Vice-President

Chief Executive
9. Mr. Md. Afzal Karim Sonali Exchange Co Inc., New York Director
Officer
Investment Corporation of Bangladesh (ICB) Director
Sonali Investment Limited Director
Central Depository Bangladesh Limited (CDBL) Director
Industrial and Infrastructure Development
Finance Company Limited (IIDFC). Director

Governing Board, Bangladesh Institute of Bank Member

Management (BIBM).

ANNUAL REPORT 2023 131

SONALI BANK PLC

COMPARATIVE FINANCIAL HIGHLIGHTS OF SBPLC

(Figure in million except stated otherwise)
Increase/
Particulars 2023 2022 Change %
(Decrease)
Income Statement

Total revenue 119722 91302 28420 31.13

Total expenses 81260 67478 13782 20.42

Operating profit 38462 23823 14639 61.45

Profit before tax 10354 7376 2978 40.37

Profit after tax 6515 3710 2805 75.60

Earnings per share 14.38 8.19 6.19 75.58

Asset and Liabilities

Total Assets 1981130 1789772 191358 10.69

Earning Assets 1587626 1407049 180577 12.83

Total loans and advances 1008053 846430 161623 19.09

Fixed Assets including Premises, Furniture and Fixture 34402 33931 471 1.39

Total deposit 1506184 1420362 85822 6.04

Shareholders' equity 86559 81191 5368 6.61

Capital
Paid up capital 45300 45300 0 0.00

Capital maintained 78737 70510 8227 11.67

Risk Weighted Assets (RWA) 781565 701286 80279 11.45

Capital required 78157 70128 8029 11.45

Capital Adequacy Ratio (CAR)/Capital to
10.07% 10.05% 0.02% 0.20
Risk weighted Assets Ratio (CRAR)
Share Information
Earnings per Share 14.38 8.19 6.19 75.58

Net Assets Value per Share (NAVPS) 191.08 179.23 11.85 6.61

Number of share (in million) 453 453 0.00 0.00

Regulatory Ratio
Cash Reserve Requirement (CRR) 5.10% 5.20% -0.10% -1.92

Statutory Liquidity Ratio (SLR) 40.27% 42.23% -1.96% -4.64

Capital Adequacy Ratio (CAR) 10.07% 10.05% 0.02% 0.20

Credit Deposit Ratio 108.33% 103.33% 4.99% 4.83

Asset Quality
Amount of classified loans and advances 133410 125537 7873 6.27

% of classified loans and advances 13.23% 14.83% -1.60% -10.79

Required provision for loans and advances 103544 84378 19166 22.71

132 ANNUAL REPORT 2023

GRAPHICAL PRESENTATIONS
Cash in Hand & Balance with BB Balance with other Banks & Financial Institutions
(Tk. in million) (Tk. in million)
108764

112882
90117
91102

87161
77527

52309

47937
38055

38151
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Money at Call on Short Notice Investments

(Tk. in million) (Tk. in million)

688065
16274

623541
621273
629681
15217

500387
8663

2808
9031

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Loans & Advances Fixed Asset including Premises, Furniture and Fixture
(Tk. in million) (Tk. in million)
1008053

34402
846430
690596

33932
33891

33876
586232
551026

33466

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Other Assets Non Banking Assets

(Tk. in million) (Tk. in million)
188985

170020
175523

157020

43
41
139055

0
0

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

ANNUAL REPORT 2023 133

SONALI BANK PLC

GRAPHICAL PRESENTATIONS
Total Asset Borrowing from other Banks, Financial Institutions & Agents
(Tk. in million) (Tk. in million)

1981130

17009
1789772
1706803
1591233
1472501

604

549

494

439
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Deposit and Other Accounts Other Liabilities

(Tk. in million) (Tk. in million)

371377
1506184
1420362
1350815
1258786

287779
278750
1158788

246283
245017

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Total Liabilities Paid up Capital

(Tk. in million) (Tk. in million)
1894571

45300

45300

45300

45300

45300
1708581
1630061
1505618
1404409

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Statutory Reserve Other reserve and Revaluation reserve

(Tk. in million) (Tk. in million)
36494
18093
16022
14547

25074
13469

24249

24134
12401

22241

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

134 ANNUAL REPORT 2023

GRAPHICAL PRESENTATIONS
Retained Earnings Total Shareholders' Equity
(Tk. in million) (Tk. in million)

(5206)

(968)
(7354)
(9648)

86559
85616

81191
(11748)

76742
68193
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Contingent Liabilities Net Interest Income

(Tk. in million) (Tk. in million)

2089

4759
1022368

949413

886193

756897
766878

(9946)

(9793)
(4128)

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Investment income Commission, exchange and brokerage

(Tk. in million) (Tk. in million)

16783
45795

16480
39996

38693

13052
12273
11623
31639
28144

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Other operating income Total Operating Income

(Tk. in million) (Tk. in million)
1088

67638
50470
42873

42388
36727
550

437

302
262

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

ANNUAL REPORT 2023 135

SONALI BANK PLC

GRAPHICAL PRESENTATIONS
Total Operating Expenses Operating Profit
(Tk. in million) (Tk. in million)

29176

38462
26647
21346

21485
19627

23823
20903
21526
17100
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Total Provision Net Profit After Tax

(Tk. in million) (Tk. in million)
28108

6515
16446
16185

3710
15513

3456
3234
12347

2710

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Earning Per Share (EPS) Capital Adequacy Ratio

(Tk. in million)
10.09%

10.07%
14.38

10.05%
10.04%
8.19
7.63
7.14
5.98

10.02%

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Earning Asset & Non Earning Asset Return on Asset (ROA)

(Tk. in million)
1587626

0.35%
1407049
1332237
1195517

0.20%

0.21%

0.21%
0.21%
404269

395716

393504
1068333

382723
374566

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

136 ANNUAL REPORT 2023

GRAPHICAL PRESENTATIONS
Net Worth
Return on Investment (ROI) (Tk. in million)

7.36%
7.13%

81191
85616

86559
76742
5.98%

5.87%

68193
4.83%
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Import Export Foreign Remittance Loans & Advances and Classified Loans
(Tk. in million) (Tk. in million)

1008053
314539

846430
690596
255965

436769

467313
86313
165550

133410
586232

125536
129056

119585
125263

109210

111994

551026

107673
111483

20215
25988
32213
25670

25160

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Classified Loan Recovery Rate of Classified Loan

(Tk. in million)
31974

20.32%

18.37%

17.32%

14.83%

13.23%
13050
12590

11644
10501

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Investment And Income from Investment No. of Branches

(Tk. in million)
1232
688064

1231
621272

623541

1229
629691

1226
1224
500387

40057
28144

38693

45795
31638

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

ANNUAL REPORT 2023 137

SONALI BANK PLC

KEY FINANCIAL DATA AND RATIOS OF SBPLC

Particulars 2023 2022 2021 2020 2019

Balance Sheet
Authorized Capital 60000 60000 60000 60000 60000
Paid up Capital 45300 45300 45300 45300 45300
Reserve Fund and Surplus 41259 35891 31442 48998 22893
Total Shareholders’ Equity 86559 81191 76742 85616 68193
Deposits 1506184 1420362 1350815 1258786 1158788
Loans And Advances 1008053 846430 690596 586232 551026
Investments 623541 621272 688064 629691 500387
Fixed Assets including Premises, Furniture and Fixture 34402 33931 33876 33891 33466
Total Assets 1981130 1789772 1706803 1591233 1472601
Total Off Balance Sheet Exposure 756897 766878 886193 949413 1022368
Earning Assets 1587626 1407049 1332237 1195517 1068333
Non-earning Assets 393504 382723 374566 395716 404269
Net Worth 86559 81191 76742 85616 68193

Income Statement
Interest Income 56842 42920 33744 31666 35955
Income on Investment 45795 31638 38693 40057 28144
Non-interest Income 17085 16742 13489 12824 12711
Total Income 119722 91302 85925 84780 76810
Interest Expenses 52083 40831 43537 41906 40083
Non-interest Expenses 29177 26647 21485 21346 19627
Total Expenses 81260 67478 65022 63253 59710
Net Interest Margin (NIM) 4759 2089 -9792 -9946 -4128
Net Non-interest Expenses 12092 9725 7415 8703 6916
Operating Profit 38462 23823 20903 21526 17100
Earnings Before Provision, Depreciation and Tax 39475 27717 27237 22321 17680
Profit Before Provision and Tax 38462 23823 20903 21526 17100
Net Profit After Tax 6515 3710 3456 3234 2710

Capital Matrix
Risk Weighted Assets (RWA) 781565 701286 666270 633601 526242
Total Required Capital 78157 70128 66627 63360 52624
Total Regulatory Capital Maintained 78737 70510 66872 63500 53096
Capital Surplus/(Shortfall) 581 381 246 141 472
Capital Adequacy Ratio (CAR) 10.07% 10.05% 10.04% 10.02% 10.09%
Core Capital Ratio 7.93% 7.92% 7.81% 7.68% 8.65%
Supplementary Capital Ratio 2.14% 2.14% 2.23% 2.34% 1.44%
Amount of Supplementary Capital 16727 14985 14863 14826 7574

138 ANNUAL REPORT 2023

KEY FINANCIAL DATA AND RATIOS OF SBPLC

Particulars 2023 2022 2021 2020 2019

Financial Ratios (%)

Operating Profit Ratio 32.13% 26.09% 24.32% 25.39% 22.26%

Gross Profit Ratio 56.50% 55.28% 49.33% 50.57% 47.82%

Operating Profit as a % of Average Working Fund 2.62% 1.35% 1.24% 13.70% 1.17%

Return of Assets (ROA) 0.35% 0.21% 0.21% 0.21% 0.20%

Return of Equity (ROE) 7.77% 4.70% 4.26% 4.21% 3.92%

Return on Investment (ROI) 7.36% 4.83% 5.87% 7.13% 5.98%

Return on Loan and Advance 5.92% 5.33% 4.89% 5.57% 5.51%

Return on Capital Employed 2.34% 1.60% 1.46% 1.64% 1.42%

Return on Earning Assets 0.41% 0.26% 0.26% 0.27% 0.25%

Operating Profit per Employee 2.11 1.36 1.15 1.14 0.87

Net Profit per Employee 0.36 0.21 0.19 0.17 0.14
Operating Profit per Branch 31.22 19.35 17.00 17.56 13.99

Net Interest Margin on Earning Assets(NIM) 0.61% 0.67% -0.77% -0.86% -0.41%

Efficiency Ratio 24.37% 29.18% 25.18% 25.18% 25.55%

Burden Ratio 0.64% 0.57% 0.42% 0.56% 0.50%

Cost of Deposit 3.54% 2.95% 3.34% 3.32% 3.55%

Yields on Loans and Advances 5.92% 5.33% 4.89% 5.57% 5.51%

Interest Spread 2.38% 2.38 1.55% 2.25% 1.96%

Cost of Fund 5.52% 4.87% 4.98% 5.23% 5.29%

Cost to Income Ratio 67.87% 73.90% 75.67% 74.61% 77.74%

Debt Equity Ratio (Times) 22.89 21.04% 21.24% 17.58% 20.59

Current Ratio (Times) 1.99 1.83% 1.93% 1.89% 1.87

Net Asset Value per Share (NAVPS-in TK.) 191.08 179.23 169.41 189.00 150.54

Earnings per Share (EPS- In TK.) 14.38 8.19 7.63 7.14 5.98

Capital Adequacy Ratio (CAR) 10.07% 10.05% 10.04% 10.02% 10.09

Advance Deposit Ratio 63.93% 59.59% 51.12% 46.57% 47.55%

Cash Reserve Ratio / Liquidity Ratio (CRR) 5.10% 5.20% 6.20% 7.70% 7.90%

Statutory Liquidity Ratio (SLR) 40.27% 48.23% 48.22% 50.02% 41.57%

Foreign Exchange Business

Import 467313 436769 314539 165550 255965
Export 20215 25988 32213 25160 25670
Foreign Remittance 86313 109210 125263 129056 111483

ANNUAL REPORT 2023 139

SONALI BANK PLC

KEY FINANCIAL DATA AND RATIOS OF SBPLC

Particulars 2023 2022 2021 2020 2019

Asset Quality
Classified Loans and Advances(Non-performing Loans) 133410 125536 119585 107673 111994
Percentage of NPLs to Total Loans and Advance 13.23% 14.83% 17.32% 18.37% 20.32%
Required Provision for Unclassified Loans 13204 11991 12149 12460 5358
Required Provision for Classified Loans 90340 72387 63528 57705 53016
Total Required Provision for Loans and Advances 103544 84378 75677 70165 58374
Total Provision Maintained for Loans and Advances 103544 84378 75677 70165 58374
Provision Excess/(Shortfall) for Loans and Advances - - - - -
General Provision Maintained 13204 11991 12149 12460 5358
Specific Provision Maintained 90340 72387 63528 57705 53016
Required Provision for Classified Investment 2973 5164 1454 178 2667
Provision Maintained for Classified Investment 2973 5164 1454 178 2667
Required Provision for Classified Other Assets 22759 14978 13637 2069 4786
Provision Maintained for Other Assets 22759 14978 13637 7250 4786
Total Classified Assets 152898 125536 119585 107673 111994
Total Un-Classified Assets 1828232 1664236 1587218 1483561 1360607
Required Provision for Contingent Liabilities 3523 2994 2715 2366 2216
Provision Maintained for Contingent Liabilities 3523 2994 2715 2366 2216
Total Provision Required 132799 107984 95182 115331 69257
Total Provision Maintained 132799 107984 95182 82827 69257
Surplus/ (Shortfall) - - - - -
Current Assets 670611 531466 523378 522001 499062
Current Liabilities 337418 300728 271265 275643 266687
Net Current Assets 333193 230739 252113 1069232 232375
Long Term Liabilities 1643712 1407853 1358796 1315590 1137722
Long Term Liabilities/Current Liabilities 4.87:1 4.68:1 5.01:1 4.77:1 4.27:1

Shares Information Matrix

No. of Shares 45300000 45300000 45300000 45300000 45300000
Earnings per Share (EPS- in Tk.) 14.38 8.19 7.63 7.14 5.98
Net Asset Value per Share (NAVPS-in Tk.) 191.08 179.23 169.41 189 150.54
Market Price per Share Not Listed in Stock Exchange
Dividend - - - - -
Right Share Issued - - - - -

Other Information
No. of Branches 1232 1231 1229 1226 1224
No. of Loss Branches 9 13 33 29 27
No. of Employees 18257 17542 18200 18918 19609
No. of Foreign Correspondents 569 576 694 684 669

140 ANNUAL REPORT 2023

HORIZONTAL AND VERTICAL ANALYSIS
OPERATING PERFORMANCE

Particulars 2023 2022 2021 2020 2019

Total Revenue 119722 91302 85925 84780 76810

Interest Expenses 52083 40831 43537 41906 40083

Administrative and Other Expenses 29177 26647 21485 21346 19627

Operating Profit 38462 23823 20903 21526 17100

Provisions including Amortization 28108 16446 15513 16184 12347

Profit Before Tax 10354 7377 5390 5342 4753

Provision for taxation 3839 3666 1933 2107 2043

Profit After Tax 6515 3710 3456 3234 2710

Reserve Fund 2286 1562 1162 1133 1001

EPS 14.38 8.19 7.63 7.14 5.98

Operating Performance
2023 2022 2021 2020 2019

Total Revenue

Interest Expenses

Administrative and other Expenses

Operating Profit

Provision including Amortization

Profit Before Tax

Provision for Taxation

Profit After Tax

Reserve Fund

EPS
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Operating Performance
Total Revenue
2019
Interest Expenses
Administrative and Other Expenses
2020
Operating Profit
Provisions including Amortization
2021
Profit Before Tax
Provision for taxation
2022
Profit After Tax
Reserve Fund
2023
EPS
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANNUAL REPORT 2023 141

SONALI BANK PLC

HORIZONTAL AND VERTICAL ANALYSIS

BALANCE SHEET

Particulars 2023 2022 2021 2020 2019

Cash in Hand 9940 9843 7725 7300 7691

Balance With Bangladesh Bank and its
102942 80274 69801 83801 101073
Agent Bank
Balance With Other Banks and FI's 47937 38151 38055 52308 87161

Money at Call and Short Notice 15217 2808 8663 9031 16274

Investments 623541 621272 688064 629691 500387

Loans and Advances 1008053 846430 690596 586232 551026

Fixed Assets 34402 33931 33876 33891 33466

Other Assets 139098 157020 170020 188976 175523

Total Assets 1981130 1789772 1706803 1591233 1472601

Balance Sheet Analysis

2023 2022 2021 2020 2019

Cash in Hand
Balance with Bangladesh Bank
and its Agent Bank

Balance with Other Banks and FI's

Money at Call and Short Notice

Investment

Loans and Advances

Fixed Assets

Other Assets

Total Assets

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Operating Performance
Cash in Hand
2019
Balance With Bangladesh Bank
and its Agent Bank
2020 Balance With Other Banks and FI's
Money at Call and Short Notice
2021 Investments
Loans and Advances
2022
Fixed Assets
Other Assets
2023
Total Assets
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

142 ANNUAL REPORT 2023

GRAPHICAL PRESENTATIONS OF
PROFITABILITY, DIVIDEND, PERFORMANCE AND LIQUIDITY RATIO

Gross Profit Ratio Earning before Provision, Depreciation and Tax

39475
56.50%
55.28%

27717
27237
50.57%

22321
49.33%

17680
47.82%

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Current Ratio (Times) Return on Equity (ROE)

1.99

7.77%
1.93

4.70%
1.89

4.26%
4.21%
1.87

3.92%
1.83

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Return on Loans & Advances Debt Equity Ratio (Times)

22.89
5.92%

21.24
5.57%

21.04
20.59
5.51%

5.33%

17.58
4.89%

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Cost to Income Ratio Efficiency Ratio

29.18%
77.74%

75.67%
74.61%

73.90%

25.55%

25.18%

25.18%

24.37%
67.87%

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

ANNUAL REPORT 2023 143

SONALI BANK PLC

SEGMENT WISE
GRAPHICAL PRESENTATIONS
Segment Of Total Revenue Comparison of Segmented Capital

2022 2023

14%

45300
45300
Interest Income

25074.41
48% Income on Investment

18093.25
24133.79

16022.48
Non Interest Income

(5205.63)

(968.00)
38%

Retained Earnings Other Reserve Statutory Reserve Paid up Capital

Division wise Deposit Division wise Loans and Advances

5% 4% 4% 2%
4% 9%
Dhaka Dhaka
6% Chattogram Chattogram
7%
Barishal Barishal
7% Khulna Khulna
50% Rajshahi 8% 59% Rajshahi
4% Rangpur Rangpur
Mymensingh 3% Mymensingh
Sylhet Sylhet
20% 8%

Division wise Income Vs Expenses Division wise Operating Profit

(Tk. in million)
Income Expenses
5% 4%
Dhaka
6% Dhaka
Chittagong
Chattogram
Barisal 8%
Barishal
Khulna Khulna
7% 44% Rajshahi
Rajshahi
Rangpur
Rangpur
4% Mymensingh
Mymensingh Sylhet
Sylhet
22%
0% 20% 40% 60% 80% 100%

Industry wise Loans and Advances Sector WIse Loan & Advances

7% 1%
1%
7% Industry wise Loans
34%
and Advances
Rural Credit
Micro Credit Goverment
35% Industriul Credit Other public
65%
Agro based Industrial Private
Credit
International Trade
34% SME Finance 1%
General Adnce
15%
and Others

144 ANNUAL REPORT 2023

STATEMENT OF VALUE ADDITION AND ITS DISTRIBUTION
This statement shows the process of generating the value and its distribution among the stakeholders of Sonali Bank
PLC through the placement and improvement of assets and operations consequently. The comparative value added
statement of the Bank for the year 2023 and 2022 is illustrated below:

Distribution of Value Distribution of Value

Particulars Addition 2023 In percent Addition 2022 In percent
Taka in Million. Taka in Million.
a) Income from Banking Services 119,721.55 91,301.73
b) Less: Cost of Services and Supplies 58,470.90 46,659.75
c) Value Added by the Banking Services (a-b) 61,250.65 44,641.97
d) Less: Non Banking Expenses 3,126.16 3,100.44
e) Less: Loan Loss Provisions 28,108.05 16,446.14
Value Added (c-d-e) 30,016.44 25,095.40

Distribution of Value addition:

i) To Employees as Salaries, allowances and
21,851.14 73% 19,803.24 79%
bonuses:
ii) To Expansion and Growth:
Statutory reserve 2,070.77 7% 1,475.39 6%
General Reserve 150.00 0% 50.00 0%
Start-Up Fund 65.15 0% 37.10 0%
Retained earnings 4,228.88 14% 2,147.93 9%
Depreciation 937.63 3% 1,015.66 4%
Taxation 712.88 2% 566.07 2%
Sub Total 8,165.31 27% 5,292.16 21%
Total (I+ii) 30,016.44 100% 25,095.40 100%

Distribution of Value Addition-2023 Distribution of Value Addition-2022

3% 2% 4% 2%
To Employees as Salaries, 9%
14% allowances and bonuses: 0% To Employees as Salaries,
Statutory reserve 0% allowances and bonuses:
0%
6%
1% General Reserve Statutory reserve
Start-Up Fund General Reserve
7%
Retain earnings Retain Earnings
Depreciation Depreciation
Taxation Taxation

73% 79%

ANNUAL REPORT 2023 145

SONALI BANK PLC

ECONOMIC VALUE ADDED STATEMENT

Economic value added, developed to assess the accurate economic profit produced by a company, frequently refers
to a measurement of a bank’s economic success (or failure) over a period of time which takes into consideration the
cost of total invested equity. Stakeholders and shareholders are always determined to know how well the bank has
produced value for its investors and how well the bank is operating.
Taka in Million

Particulars 2023 2022 2021 2020 2019

Net Operating Profit 38,462 23,823 20,904 21,527 17,100

Provision for Taxes (3,839) (3,667) (1,934) (2,108) (2,043)

Net Operating Profit after Tax (NOPAT) 34,623 20,157 18,970 19,419 15,057

Shareholders' Equity 86,559 81,191 76,743 85,616 68,098

Add: Cumulative provision for Loans,

Investment, Other Asset and Off Balance 132,969 108,089 94,952 82,833 69,273
sheet exposures

Capital Employed 219,528 189,280 171,695 168,449 137,371

Average Capital Employed 204,404 180,487 170,072 152,910 133,415

Average cost of equity (%)

(Based on weighted average rate of 10
12.82% 10.33% 10.50% 10.66% 11.00%
years treasury bond issued by Bangladesh
Government +2% risk premium)
Capital Charge 26,205 18,644 17,858 16,300 14,676

Economic Value Added (EVA) 8,418 1,512 1,112 3,119 382

EVA/Average Shareholders' Equity (%) 10.04% 1.91% 1.37% 4.06% 0.56%

Economic Value Added

8418
3119

1512
1112
382

2019 2020 2021 2022 2023

146 ANNUAL REPORT 2023

MARKET VALUE ADDED STATEMENT
Market Value Added (MVA) statement is the difference between the current total market value and the capital
contributed by investors. A high MVA indicates that the bank has created substantial wealth for the shareholders. The
calculation of MVA is given below.

Market Value Added = Market Value - Capital Invested SBPLC is a non listed banking company. Its shares are not
publicly traded. So, its market value is not available. But considering the intrinsic value method, its shares have been
valued and accordingly the market value has been prepared.

Particulars Number of Share Value Per Share (Taka) Amount in Taka

Intensive value per share 453,000,000 191.08 86,559,035,333
Book Value 453,000,000 100.00 45,300,000,000
Market Value Added 453,000,000 91.08 41,259,035,333

Maintaining Liquidity-2023

Maturity Analysis Below 1 year 1-5 years Above 5 years Total

Interest earning Assets 660,735,701,066 449,613,263,871 584,398,820,865 1,694,747,785,802

Non-interest earning Assets 104,186,356,170 11,653,968,665 170,541,551,079 286,381,875,914

Total Assets 764,922,057,236 461,267,232,536 754,940,371,944 1,981,129,661,716

Interest bearing Liabilits 1,306,540,937,428 117,771,599,448 98,880,870,038 1,523,193,406,915

Non-interest bearing Liabilits 15,317,319,460 28,022,452,808 328,037,447,200 371,377,219,468

Total Liabilities 1,321,858,256,888 145,794,052,256 426,918,317,239 1,894,570,626,383

Net Liquidity Gap (556,936,199,652) 315,473,180,280 328,022,054,705 86,559,035,333

The liquidity policy of the Bank has always been to carry a mismatch in the interest earning assets and interest bearing
liabilities in the 1-30 days category. The liquid assets ratio of SBPLC stood at 40.27% (required 19.50% of total demand
and time deposits) in December 2023. The Asset Liability Committee (ALCO) of the Bank monitors the situation and
maintains a satisfactory trade-off between liquidity and profitability.

Payment of Dividend

The dividend policy of the Bank aims at offering a decent dividend to its shareholders after strengthening funds,
maintaining positive growth and fulfilling capital requirements by retaining sufficient profit. As the retained earnings of
SBPLC is still negative, the Bank has not recommended any dividend for the year 2023.

Maintaining Capital Adequacy

Eligible Capital 2023 2022

Tier-1 (Core Capital) 62010.40 55,524.35
Tier-2 (Supplementary Capital) 16726.86 14,985.76
Tier-3 (Eligible for Market Risk Only) - -
Total Eligible Capital 78737.26 70,510.11
Total Risk Weighted Assets (RWA) 781565.00 701,286.80
Capital to Risk Weighted Asset Ratio (CRAR)/ (CAR) 10.07% 10.05%
Core Capital to RWA 7.93% 7.92%
Supplementary Capital to RWA 2.14% 2.14%
Minimum Capital Requirement (MCR) 78156.50 70,128.68
Capital Surplus/(Shortfall) 580.77 381.43

ANNUAL REPORT 2023 147

SONALI BANK PLC

CREDIT RATING
Credit Rating Information and Services Limited (CRISL) rated Sonali Bank PLC in their report; they rated the Bank AAA
as With Government Support for long term and ST-1 for short term. They also rated the Bank A+ as Commercial Bank
for long term and ST-2 for short term. The outlook of the rating is stable. The rating company performed the rating
surveillance based on Audited Financial Statements and other relevant information based on 31 December 2022.

Surveillance Rating Upto June 2024 Upto June 2023

Long Term Short Term Long Term Short Term
As Government Supported Bank AAA ST-1 AAA ST-1
As Commercial Bank A+ ST-2 A+ ST-2
Outlook Stable Stable

FINANCIAL CALENDER 2023

FINANCIAL CALENDER 2023
Events Status Date
17th Annual General Meeting Will be held on 29 May 2024
Financial Statement for the year 2023 Signed on 30 April 2024
Audited consolidated results for the 4th quarter ended 31 December 2023 Announced on 30 April 2024
Unaudited solo results for the 1st quarter ended 31 March 2023 Announced on 30 April 2023
Unaudited solo results for the 2nd quarter ended 30 June 2023 Announced on 31 July 2023
Unaudited solo results for the 3rd quarter ended 30 September 2023 Announced on 31 October 2023

FINANCIAL CALENDER 2024 (PROPOSED)

Events Status Date
18th Annual General Meeting Will be held on 31 March 2025
Financial Statement for the year 2024 Will be Signed on 27 February 2025
Audited consolidated results for the 4th quarter ended 31 December 2024 Will be Announced on 27 February 2025
Unaudited solo results for the 1 st quarter ended 31 March 2024 Announced on 30 April 2024
Unaudited solo results for the 2nd quarter ended 30 June 2024 Will be Announced on 31 July 2024
Unaudited solo results for the 3rd quarter ended 30 September 2024 Will be Announced on 31 October 2024

148 ANNUAL REPORT 2023

RISK MANAGEMENT AND
CONTROL ENVIRONMENT

ANNUAL REPORT 2023 149

SONALI BANK PLC

REPORT ON RISK MANAGEMENT

Risk Management at Sonali Bank PLC includes risk identification, risk assessment, risk measurement and risk mitigation
and its main objective is to minimise negative impact on profitability and capital. Banks are, therefore, required
to maintain and organizational unit in charge of risk management. Banks face various risks throughout its overall
business activities. The major risks are credit risk, market risk, liquidity risk and operational risk which includes IT risk.
An independent Risk Governance Structure, in line with international best practices, has been put in place, in the
context of separation of duties and ensuring independence of Risk Measurement, Monitoring and Control functions.
The core aim of all process is to provide adequate transparency and understanding of the existing and emerging risk
issues and to ensure a holistic cross-risk perspective.

Risk Management Framework

Risk management process of Sonali Bank PLC is based on The risk management framework is applied on an
the Bangladesh Bank guidelines and the clear concept of enterprise-wide basis and consists of three key
identification, assessment, parameter setting, controlling elements:
and monitoring activities. The primary goals of risk
management are to ensure that the outcomes of risk- A. Risk Governance,
taking activities are consistent with the Bank’s strategies
B. Risk Appetite, and
and risk appetite, and that there is an appropriate balance
between risk and reward in order to maximize return. C. Risk Management Tools

Risk Governance

Risk Appetite, Risk Tolerance, Risk Limit

Risk Appetite Statement

Risk Management Tools:

Policy & Limits Guidelines, Process & Standards Measuring, Monitoring, Reporting Stress Testing

Risks Issues:
Credit, Market, Liquidity, Operational, ICT, AML, Environmental, Others

Risk Management Framework

A. Risk Governance:
The various risks across Bank is monitored and reviewed through the Executive Level Committee and
the Risk Management Committee of the Board which meets regularly. Risk Management Committee at
Operational unit and Business unit level are also in place.

Board’s Risk Management Committee

Risk Management Committee at Management Level

Credit Risk Asset Foreign Anti Money Internal ICT Risk

Management Liability Risk Exchange Risk Laundering Risk Control and Management
Committee Management Management Management Compliance Risk Committee
Committee Committee Committee Management
Committee

150 ANNUAL REPORT 2023

As per BB’s instruction SBPLC has reformed its risk management division in following structure:

Chief Risk Officer (CRO) (DMD)

Head of Division (DGM)

CRM Desk Capital ALM Desk ICC Desk Stress Test AML Desk ICT Desk FX Desk
Manage- Desk
ment Desk

B. Risk Appetite

Effective risk management requires clear For major risks (credit, market, liquidity, and
articulation of the Bank’s risk appetite and how operational), the key risk appetite measures are
the Bank’s risk profile will be managed in relation supported by management level limit structures
to that appetite. Sonali Bank started preparing and controls. Management’s dedicated attention
its risk appetite statement from 2016 as per to these risks creates a focus on forward looking
Bangladesh Bank’s guideline. The Bank’s Risk activities that keeps the Bank within its risk appetite
Appetite Framework consists of a risk capacity, risk on an on-going basis.
appetite statement and key risk appetite measures.
Together application of the risk appetite statement
and monitoring of the key risk appetite measures Key Risk
help to ensure the Bank stays within appropriate
risk boundaries. The Bank’s Credit Risk Appetite
Appetite
further defines the Bank’s risk appetite with respect Measures
to lending, counter-party credit risk, and other
credit risks (such as investments).

The Bank’s Risk Appetite Framework combines Risk

qualitative and quantitative terms of reference to Appetite
guide the Bank in determining the amount and Risk
types of risk it wishes to prudently undertake Risk Appetite
in pursuing the Bank’s strategic and financial Capacity Statement
objectives. Key risk appetite measures provide
clear idea of risk tolerance and risk limits which are
critical in implementing effective risk management.

C. Risk Management Tools

Effective risk management deploys tools that are guided by the Bank’s Risk Appetite Framework and
integrated with the Bank’s strategies and business planning processes.

Guidelines, Process & Standards Policies & Limits

Risk
Management
Tools
Measurment, Monitoring and Reporting Stress Testing, RMP,CRMR

ANNUAL REPORT 2023 151

SONALI BANK PLC

Policies, Procedures and Limit Structure of Sonali Bank PLC.

• Risk Management policies, procedures and limits • A compliance monitoring procedure has been
are properly documented; deployed for all policies;
• Policies are reviewed annually or on demand basis; • An independent internal control unit has been
formed in SBPLC to check internal compliance;
• All policies and procedures are duly approved by
the Board of Directors; • Provide a comprehensive Bank wide view of risks
across at material risk types.
• Policies are assigned with full accountability and
clear lines of authority for each activity and product
area;

Guidelines, Processes and Standards

Guidelines are the directives provided to implement policies as set out above. Generally, they describe the
facility types, aggregate facility exposures and conditions under which the Bank is prepared to do business.
Guidelines ensure the Bank has the appropriate knowledge of clients, products, and markets and that it fully
understands the risks associated with the business it underwrites. Guidelines may change from time to time,
due to market or other circumstances. Risk taking outside of guidelines usually requires approval of the Bank’s
CEO.

Processes are the activities associated with identifying, evaluating, documenting, reporting and
controlling risks.

Standards Define the breadth and quality of information required to make a decision, and the expectations in
terms of quality of analysis and presentation. Processes and standards are developed on an enterprise-wide
basis, and documented in a series of policies, manuals and handbooks under the purview of Risk Management
Division. Key processes cover the review and approval of new products, model validation and stress testing.

Risk Measurement, Monitoring and Management Reporting System

An effective risk monitoring procedure exists in the SBL has a separate Management Information Systems
Bank to identify and measure all quantifiable and (MIS) Division which provides necessary information
material risk factors; to Risk Management Division and Senior Management
for understanding the bank’s position and risk
exposure in time;

Disclosure of risk reporting

Risk management activities are being reported to both internal and external controlling authorities seeking further
direction for proper and timely mitigation of risks:
Reporting to Management

Risk Reporting Reporting to Board of Directors

Reporting to Central Bank

Risk Management Paper (RMP) consisting of various data related to Credit Risk, Market Risk, Liquidity Risk and
Operational Risk from all related divisions are presented in the monthly meeting of all Risk Committee and
Sub-risk Committee conducted under the supervision of Risk Management Division (RMD). Subsequently, the
RMP is submitted to the Risk Management Committee of the Board and the decisions are communicated to
relevant divisions of the bank for implementation. The report also submitted to Bangladesh Bank on monthly
basis. Bangladesh Bank also determines the status of risk management of the bank on the basis of RMP and
provides Risk Management rating bi-annually which is ultimately considered in the CAMELS rating of the Bank.

152 ANNUAL REPORT 2023

Capital Adequacy as on 31st Dec 2023 (Tk. in Crore)

Minimum Capital Requirement 10% of Risk Weighted Asset

Risk Weighted Asset 78156.50

Minimum Capital Requirement 7815.65

Capital maintained 7873.73

Capital surplus 58.08

Present CRAR 10.07 %

Analysis of Stress Testing Result as on 31 December 2023

After Minor After Moderate After Major

Individuals Shock
Shock (%) Shock (%) Shock (%)

1 Performing loan directly downgraded to B/L: Sectoral Concentration 1 9.90 9.56 9.21

2 Performing loan directly downgraded to B/L: Sectoral Concentration 2 9.92 9.62 9.31

3 Increase in NPLs due to default of Top large borrowers 10.07 8.99 8.42

4 Negative Shift in NPLs categories 9.13 1.41 -0.77

5 Decrease in the FSV of the Collateral 9.18 8.28 6.41

6 Increase in NPLs 8.73 5.37 0.09

7 Interest Rate 7.92 5.77 3.62

8 FEX: Currency Appreciation 9.96 9.84 9.72

9 Equity Shock 9.28 8.46 6.79

Combined Shock 3.83 -11.24 -24.51

Stress testing is a simulation technique to determine the reactions of different financial institutions under a
set of exceptional, but plausible assumptions. A stress test, in financial terminology, is an analysis or simulation
designed to test the ability of a given financial institution to deal during forecasted economic crisis. Instead of
doing financial projection on a “best estimate” basis, a bank or its regulators do stress testing where it looks at
how robust institutions is in certain crashes a kind of “what if” scenario analysis. This type of analysis has become
increasingly widespread and has been taken up by various Governmental bodies as a regulatory requirement
on certain financial institutions to ensure adequate capital allocation to cover potential losses incurred during
extreme, but plausible events. Stress testing framework as provided by Bangladesh Bank assesses the impact
on CRAR due to minor, moderate and major level of shock in terms of credit risk, exchange rate risk, liquidity
risk, equity price risk and interest rate risk. Stress testing for credit risk assesses the impact of increase in the
level of Non-Performing Loans (NPLs) of the banks.

Comprehensive risk management report (CRMR) is prepared on half yearly basis to record different risks
related issues of credit, market and operational risk across the Bank and submitted to Bangladesh Bank. Bank
Risk Management Committee (BRMC) reviews this paper and recommends action plans to concern department
for mitigating identified risk areas and follow-up the implementation of previous recommendations.

Credit Risk: Credit Risk is defined as the possibility of losses associated with the diminution in the credit quality
of borrowers or counterparties from outright default or from reduction in portfolio value. Credit Risk emanates
from a bank’s dealings with an individual, non-corporate, corporate, Bank, financial institution or sovereign.

ANNUAL REPORT 2023 153

SONALI BANK PLC

Mitigation Measures: ALCO: The responsibility of Asset Liability Management

is assigned to the Treasury Management Division of this
A. Policy Guidelines Bank. Specifically, the balance sheet used to manage by
• Lending Guidelines the Asset Liability Management (ALM) desk which has
established on the Treasury Division.
• Credit Assessment and ICRRS
• Approval Authority Market Risk:
• Segregation of Duties Market risk is the potential of losses to income or the
• Internal Audit value of asset, liabilities and equity arising from changes
in market prices. Such market prices may include
reference Interest rates, Foreign Exchange rates, Traded
B. Preferred Organizational Structure Prices of Equity Shares and other commodities etc.
Sonali Bank PLC. has decentralized credit risk
management system. Based on delegation of power the Strategy & Business Risk
following authority plays role in this regard. Liquidity Risk
• Role of the Board of Directors Reputation &

Strategy & Business Risk

Strategy & Business Risk

Behavioral Risks
• Role of Senior Management
Credit & Operational
• Role of the Credit Risk Management Committee

Cov
Counterparty Risk & AML /
• Organisational Structure of Credit Officials Risk CFT

enant Risk
Interest Foreign
C. Procedural Guideline Rate Exchange
Risk Risk Rate Risk
• Credit Administration acy
u Reputation &
eq Behavioral Risks
• Credit Monitoring pital Ad
Ca
• Credit Recovery
Other Regulations of BB Relating to Credit Risk Strategy & Business Risk

• Policy on Loan Classifications

Liquidity Risk:
• Policy on Single Borrower Exposure
• Policy For Rescheduling of Loans It generates from the failure or inability to meet current
and future financial obligations by bank due to shortfall
• Policy For Loan Write Off
of cash or cash equivalent assets. Banks are exposed to
• Guidelines on Managing Core Risk in Banking liquidity risk where the more liquidity is generated, the
• Guidelines on Environmental Risk Management greater are the possibility and severity of losses associated
with having to dispose of illiquid assets to meet the
• Restrictions on Lending to Directors of Private liquidity demands of depositors. However besides
Banks depositor, revealed that banks that make commitments
• Implementation of Credit Risk Grading Manual to lend are exposed to the risk of unexpected liquidity
demands from their borrowers.
• Prudential Guidelines for Consumer Financing and
Small Enterprise Financing Statutory liquidity ratio of SBPLC
• Green Banking  (Figure in Crore)

Particulars Dec- 2022 Dec- 2023

Asset-Liability Risk Required 5460.1538 5846.0256

CRR
Maintained 7153.7262 7523.1194
ALM is a process to manage the composition and pricing
Required 17745.4997 18999.5831
of the assets, liabilities and off balance sheet items and SLR
Maintained 57641.0768 58857.6329
aims to control banks exposure to market risks, with
the objective of optimizing net income and net equity
value within the overall risk preferences of the Bank. Structural Liquidity Profile
ALM programs focus on interest rate risk, liquidity risk
and foreign exchange risk as those represent the most Particulars Dec- 2022 Dec- 2023 Ideal Scenario
prominent risks and may affect the overall balance- LDR 59.59% 66.89% 87.00%
sheet of the organization. Individual risk mitigation
MCO 8.49% 13.91% <17.00%
methodology is discussed hereinafter.

154 ANNUAL REPORT 2023

Foreign Exchange Risk: The risk of an investment’s Anti-Money Laundering Risk (AML): It arises from the
value changing due to changes in currency exchanges practice of disguising the origins of illegally- obtained
rate. The risks that an investor will have to close out a money (drug dealing, corruption, accounting fraud
long or short position in a foreign currency at a loss due and other types of fraud, and tax evasion etc.) through
to an adverse movement in exchange rates also known banking channel and the proceeds of crime are made to
as “currency risk” or “exchange-rate risk”. The Bank has appear legitimate. Sonali Bank PLC. has fully confirmed
Foreign Exchange Risk management policies approved the above issues. In order to mitigate money laundering
by the Board of Directors. Treasury management division risk, SBL has assigned CAMLCO in its head office and
is carrying out treasury operations in accordance with the BAMLCO in all branches.
policies and procedures and effective risk management
framework. The front office, mid office and back office The following major issues that bank have been
have been segregated as per the Bank policy. Mid office incorporated in the respective policy and followed them
which is independent of risk taking unit, is responsible to mitigate money laundering risk:
for risk management, monitoring, internal controls and
management reporting. • Bank has developed, administered, and maintained
an anti-money-laundering compliance policy.
The Mid office revalues all Nostro and Vostro balances
at current market rates on the last working day of • Bank updates the policy in every year incorporating
each month to monitor risk levels of the Bank. The the current issues.
management reports generally contain the following
information: • The policies have been tailored to the institution
and based upon an assessment of the money
i) Foreign exchange risk exposures; laundering risks.
ii) Information on adherence to policies and limits; • The policy address its know your customer (KYC)
iii) Findings of risk reviews on foreign exchange risk policy and identification procedures before opening
policies and procedures. new accounts, monitoring existing accounts for
unusual or suspicious transactions or activities.
The mid office conducts reviews of internal control and
risk management process to ensure its integrity, accuracy
• It also includes a description of the roles
and reasonableness and is responsible for the following
and responsibilities of the anti-money laundering
works related to both internal and external audits.
compliance officers(s)/Money Laundering and
iv) Making all out efforts to get all the audit objections Terrorism Financing Division and other appropriate
settled within specified time; personnel will play in monitoring compliance with
and effectiveness of money laundering policies
v) Preparing the compliance report and forwarding and procedures.
the same to audit teams.
The following measures have been taken to control • There is a separate division which Money
foreign exchange risks: Laundering and Terrorism Financing Division to
monitor money laundering issues which needs to
i) Set counterparty limit (Revised on 27.04.2014) be reported to Bangladesh Bank.
ii) iSet limit for open position
• Cash transaction report (CTR) is being sent to
iii) Monitor market movements Bangladesh Bank on monthly basis for cash
iv) Timely reconciliation transaction of 1.00 million or above in a day.

v) Imposed Dealer’s dealing limits- Intra-day limit, per • During inspection the branches, the auditors report
deal limit, stop loss limit per day, loss limit per deal. provided by BB about strengthening the on-site
vi) Concurrent auditor has been posted to oversee day and off-site supervision relating to prevent money
to day treasury operations; laundering and terrorist financing.
vii) Introduction of verification system for payment Internal Control and Compliance (ICC) Risk: Our
instruction (PI) through SWIFT message MT 202 and management of operational risk and compliance
MT 740 obligations has not kept pace with increasing demands.
viii)Reports prepared by the front office regarding Foreign A good risk culture is one where risk management
Exchange deal containing information of Blotter Size is everyone’s job. We will preserve the customer
Limit, Deal Amount (Currency wise), Gross Profit, Net orientation of our culture, but apply lessons from best-
Profit and Limit Breach has presented to the higher in-class organisations that have built strong operational
authority on daily basis. risk cultures.

ANNUAL REPORT 2023 155

SONALI BANK PLC

We will do what it takes to fix the root causes of issues, Information and Communication Technology (ICT)
including governance, capability, culture and investment.
Risk: Sonali Bank has formulated the ICT policy to use as a
Bank has introduced risk registrar for anticipating the
minimum requirement and as appropriate to the level of its IT
risky issues earlier.
operation. The guidelines includes IT security policy, physical
security policy, password policy, anti-virus policy, server
The main objectives of internal control are as follows:
security policy, IT assets administration and management
• Performance objectives: To maintain the efficiency policy, disaster management policy and system audit policy.
SBPLC has adopted sufficient measures to protect the safety
and effectiveness of overall operating activities.
and security of information and communication platform
• Information objectives: To ensure the reliability, from unauthorized access, modification, virus, disclosure,
completeness and timelines of financial and cyber security and destruction in order to ensure business
management information. continuity, data safety and security thereby protecting
customers' interest at large. Sonali Bank PLC has appointed
• Compliance objectives: To ensure the robust Chief Information Technology Officer (CITO) for managing
compliance with applicable laws and regulations. ICT risk in day to day service properly.

Internal Capital Adequacy Assessment Process (ICAAP)

The bank developed ‘Internal Capital Adequacy Assessment Process-ICAAP’ document following the ‘Revised Process
Document for SRP-SREP Dialogue on ICAAP, 31-May-2014’ of Bangladesh Bank. This document covers capital charge
process under Pillar II Supervisory Review Process (SRP) for the following risk areas:

Sl. Types of Risks Risk Area

Error in documentation
1 Residual Risk
Error in valuation of collateral

2 Evaluation of Core Risk Management Ratings of Core Risks implementation

Credit Concentration Risk

3 Credit Concentration Risk
Market Concentration Risk

Cash Reserve Ratio (CRR)

Statutory Liquidity Ratio (SLR)
4 Liquidity Risk Medium Term Funding (MTFR)
Maximum Cumulative Outflow (MCO)
Advance Deposit Ratio (ADR)

Credit Rating conducted by ECAIs

Internal Fraud
5 Reputation Risk
External Fraud
Non-Payment or Delayed payment of accepted bills

Issues of foreign trade settlement

6 Settlement Risk
All types of receivables

CAMELS rating
Operating expenses
Classified loans ratio
7 Strategic Risk Recovery of classified loan
Written-off loans
Interest waiver
Cost of fund

8 Environmental & Climate change Risk Damage of assets from adverse change of environment

9 Other Material Risk Other risks that may jeopardize bank’s assets or income.

156 ANNUAL REPORT 2023

DISCLOSURE ON RISK BASED
CAPITAL (BASEL III)
The public disclosure of prudential information is an important component of Basel Committee on Banking
Supervision’s (BCBS’s) framework of capital measurement and capital adequacy, known as Basel III. Bangladesh Bank
has specified the standard of disclosure through Guidelines on Risk Based Capital Adequacy (December 2010) which
was revised in Basel III Guideline on December 2014 with effect from January 2015. The aim of introducing Market
discipline in the revised framework is to establish more transparent and more disciplined financial market so that
stakeholders can assess the position of the bank regarding holding of assets and to identify the risks relating to the
assets and capital adequacy to meet probable loss of assets. The reports are purported to affirm the information on
Minimum Capital Requirement (MCR) under pillar-I and Supervisory Review Process (SRP) under pillar-II and ensure
transparency about the capital adequacy framework, risk assessment and mitigation methodologies, risk exposure in
various spectrum so that the stakeholders of the industry can examine the risk related compliance of the Bank.

In line with the Bangladesh Bank BRPD Circular no. 35 of December 29, 2010 as to Guidelines on ‘Risk Based Capital
Adequacy for Banks’ and subsequent BRPD Circular 18 dated December 21, 2014 on ‘Guideline on Risk Based Capital
Adequacy’, Sonali Bank PLC is complying with following detailed qualitative and quantitative disclosures in accordance
with the central bank directions covering scope of capital adequacy framework, capital of the bank, risk exposure and
assessment methodology, risk mitigation strategies and capital adequacy of the bank.

1. Scope of Application
Qualitative Disclosures
a) The name of the top
corporate entity in the SONALI BANK PLC
group to which this [A State Owned Commercial Bank]
guidelines applies:
b) An outline of differences Sonali Bank PLC ("the Bank" or "SBPLC"), a state owned largest commercial Bank,
in the basis of consolidation was incorporated in Bangladesh on 03 June 2007 in the name "Sonali Bank Limited"
for accounting and as a Public Limited company under the Companies Act, 1994 and is governed by the
regulatory purposes, with Bank-Company Act, 1991 (amended to date). The Bank’s evolution and prominence
a brief description of the in the financial sector have been shaped by its history of amalgamation of the
entities within the group National Bank of Pakistan, Bank of Bahawalpur, and Premier Bank Limited as the
that are erstwhile nationalized “Sonali Bank” pursuant to Bangladesh Bank (Nationalization)
order, 1972 (P.O. No. 26 of 1972) on a going concern basis. The Bank took over the
businesses, assets, liabilities, right, power, privilege and obligation of the Sonali Bank
through a vendor agreement signed between the Ministry of Finance, People's
(i) fully consolidated; Republic of Bangladesh on behalf of Sonali Bank and the Board of Directors on
behalf of Sonali Bank PLC on 15 November 2007 with a retrospective effect from 1
July 2007. The Bank has 1,232 branches including two overseas branches at Kolkata
and Siliguri in India.
(ii) given a deduction
treatment; and Capital to Risk-weighted Assets Ratio (CRAR) report of Sonali Bank PLC is submitted
to Bangladesh Bank on ‘Solo’ basis as well as ‘Consolidated’ basis.
‘Solo Basis’ refers to all position of the bank and its local and overseas branches/
offices; and ‘Consolidated Basis’ refers to all position of the bank and its subsidiary
(iii) neither consolidated nor
companies.
deducted (e.g., where the
investment is risk-weighted). The Bank has four subsidiaries and one associate company.

ANNUAL REPORT 2023 157

SONALI BANK PLC

Subsidiaries of the Bank

1) Sonali Exchange co. Inc. (SECI), an entirely owned (100% owned) subsidiary
in USA.
2) Sonali Investment Limited (SIL), an entirely owned (100% owned) subsidiary in
Dhaka, Bangladesh.
3) Sonali Pay (UK) Limited (SPUK), an entirely owned (100% owned) subsidiary in
United Kingdom.
4) Sonali Bangladesh (UK) Limited, 49% share capital of the company is held by
Sonali Bank PLC and the remaining 51% shares hold by the Government of the
People’s Republic of Bangladesh. It was considered as subsidiary in control
perspective as per instruction of Bangladesh Bank from 2021.
Associate of the Bank
Sonali Intellect Limited, The ownership of the Company having 51% share capital
in favor of Intellect Design Arena Limited, India, 35% by Sonali Bank PLC, 10% by
Bangladesh Commerce Bank Ltd and remaining 4% by Panthosoft Limited. It is
operating in Dhaka, Bangladesh.
c) Any restrictions, or
other major impediments, Sonali Bank PLC transfers funds or regulatory capital within the group (subsidiaries
on transfer of funds or & associate) as per Banking rules and regulations with the approval of the Board /
regulatory capital within the Competent Authority.
group.
Quantitative Disclosures
The following subsidiaries & associates has included their
d) The aggregate amount of (Tk. In Crore)
financial activities and their aggregate capital is as under:
surplus capital of insurance
subsidiaries (whether • Sonali Exchange co. Inc. (SECI) 10.45
deducted or subjected to • Sonali Investment Limited (SIL) 200.00
an alternative method) • Sonali Pay (UK) Limited (SPUK) 13.17
included in the capital of the • Sonali Bangladesh (UK) Limited 410.03
consolidated group.
• Sonali Intellect Limited 2.63

2. Capital Structure
Qualitative Disclosures
In Basel-III framework, the quality and quantity of regulatory capital have been
enhanced to increase the resilience. Assessing regulatory capital in relation to
overall risk exposures of a bank is an integrated and comprehensive process. The
regulatory capital under Basel-III is composed of (I) Tier-1 (Going- concern Capital)
and (II) Tier-2 (Gone-concern Capital).
As per Bank Company Act, 1991 (Amended up to 2018) section 13, the terms and
conditions of the main features of all capital instruments have been segregated in
terms of the eligibility criteria set forth vide BRPD Circular No. 18 dated 21 December
2014 [Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital
Framework for Banks in line with Basel III)] and other relevant instructions given by
Bangladesh Bank from time to time. The main features of the capital instruments
are as follows:
Total Regulatory Capital= Tier-1 Capital (Common Equity Tier-1 + Additional
Tier-1)+ Tier-2 Capital
1. Tier-1 Capital (Going-Concern Capital):
Tier-1 capital also called core capital is the high quality capital that can absorb
losses. The Tier 1 capital is divided into two categories which are:
i. Common Equity Tier 1 (CET1) Capital: Common Equity Tier 1 capital (CET1) is
the highest quality of regulatory capital, as it absorbs losses immediately when they
occur without triggering bankruptcy of the Bank. CET 1 of SBPLC consists of:

158 ANNUAL REPORT 2023

 Paid-up share capital: Issued, subscribed and fully paid up share capital of
the Bank.
Statutory reserve: As per Section 24 of the Bank Company Act, 1991 (Amended
up to 2013), an amount equivalent to 20% of the profit before taxes for each
a) Summary information on year of the Bank has been transferred to the Statutory Reserve Fund.
the terms and conditions of General Reserve: General reserve created out of profit.
the main features of all capital Retained earnings: Amount of profit retained with the banking company
instruments, especially in the after meeting up all expenses, provisions and appropriations.
case of capital instruments ii. Additional Tier 1 (AT1) capital: Additional Tier 1 capital (AT 1) also provides loss
eligible for inclusion in CET 1, absorption on a going concern basis. There is no Additional Tier-1 capital instrument
Additional Tier 1 or in Tier 2. at this moment.
2. Tier-2 Capital (Gone-Concern Capital):
Tier 2 is an additional component of the bank’s core capital base under the Basel
accord which will absorb losses only in a situation of liquidation of the Bank. Tier 2
of SBPLC consists of:
General provision: As per Bangladesh Bank directive, amount of provision maintained by Bank.

Quantitative Disclosures

Regulatory Capital (Tk. in Crore)

Common Equity Tier1 Capital(Going Concern Capital) : Solo Consolidated
Paid up capital 4530.00 4530.00
Statutory reserve 1809.32 1809.32
b) Amount of Regulatory General reserve 43.74 105.50
Capital with separate Retained earnings (96.80) (16.87)
Disclosure of CET-1, AT-1, Minority Interest in subsidiaries /Non-Controlling Interest - 500.29
T-1 and T-2 capital Additional Tier 1 (AT1) capital : - -
Total of Tier 1 capital [A]: 6286.26 6928.24
Tier-2 Capital (Gone Concern Capital) Solo Consolidated
General provision 1672.69 1672.69
Total of Tier 2 capital [B]: 1672.69 1672.69

c) Regulatory Adjustment / Less: Deduction Solo Consolidated

Deductions from capital Goodwill and all other Intangible Assets (Software) [C]: 85.22 88.81

Less: Deduction Solo Consolidated

d) Total eligible capital
Total eligible capital [A+B-C]: 7873.73 8512.12

Solo Tier 1 Conso Tier 1

1%-1% 0% 7%
2%
5%
Paid Up Capital Paid Up Capital
Statutory Reserve 26% Statutory Reserve
General Reserve General Reserve
Retained Earning Retained Earning
Non Controlling Interest

75% 65%

Tier 2 Capital Comparison Of Capital

(Tk. in million)

Tier-1 Tier-2
0%
6839.43

General Provision
6201.04

Revaluation Resserve
1672.69

1672.69

100%
Solo Conso

ANNUAL REPORT 2023 159

SONALI BANK PLC

3. Capital Adequacy
Qualitative Disclosures
The Bank assesses the adequacy of its capital in terms of Section 13 (1) of the
Bank Company Act, 1991 (Amended up to 2013) and instruction contained in
BRPD Circular No. 18 dated 21 December 2014 [Guidelines on ‘Risk Based Capital
Adequacy for Banks’ (Revised regulatory capital framework in line with Basel III)].
However, in terms of the regulatory guidelines, the Bank computes the capital
charge / requirement as under:
i. Credit risk: On the basis of Standardized Approach;
ii. Market risk: On the basis of Standardized Approach; and
iii. Operational risk: On the basis of Basic Indicator Approach.
a) A summary discussion Sonali Bank PLC is very much aware of maintaining Capital to support its current
of the bank’s approach to and future activities in view to this objective. With a view to meet-up provision
assessing the adequacy of shortfall and adjustment of deferred tax assets, an Action Plan has been prepared
its capital to support current and subsequently approved by the Board.
and future activities
The Bank has maintained Capital to Risk-weighted Assets Ratio (CRAR) of 31
December 2023 on the basis of ‘solo’ and ‘Consolidated’ which is 10.07% and
10.90% respectively as against the minimum regulatory requirement of 10%. This
has been calculated considering forbearances allowed by Bangladesh Bank.
Common Equity Tier-I (CET-1) and Minimum Tier-1 Ratio to RWA ratio including
Capital Conservation Buffer for ‘solo’ is 7.93% as well as ‘consolidated’ is 8.76%
against the minimum regulatory requirement of 4.50% and 6.00% respectively. Tier-
2 ratio for ‘solo’ is 2.14% as well as ‘consolidated’ is 2.14%. Maximum limit of Tier-2
Capital (Tier-2 capital can be maximum up to 4% of the total RWA or 88.89% of
CET1, whichever is higher).
Capital Conservation Buffer for the year 2023 is 0.07% as ‘solo’ and 0.90% as
‘consolidated’.
Quantitative Disclosures
(Tk. in Crore)
Capital Requirement for Solo Consolidated
Credit Risk 6317.68 6288.19
b) Capital Requirement
Market Risk 617.62 617.62
Operational Risk 880.35 903.24
Total Capital Requirement 7815.65 7809.05

(Tk. in Crore)
Solo Consolidated
c) Total Capital, CET 1 Capital
Capital to Risk Weighted Assets Ratio (CRAR) 10.07% 10.90%
, Tier-1 Capital and Tier 2 Common Equity Tier-1 to RWA Ratio 7.93% 8.76%
capital ratio: Tier-1 Capital to RWA Ratio 7.93% 8.76%
Tier-2 Capital to RWA Ratio 2.14% 2.14%

d) Capital Conservation Capital Conservation Buffer 0.07% 0.90%

Buffer
e) Available Capital under Pillar 2 Requirement Nill
Note: As per Bank request dated 29 April 2024, Bangladesh Bank approved deferral through vide no-DOS(CAMS)115
7/41(Dividend)/2024-1840 dated 30 April 2024 not to deduct deferred tax assets amounting taka 1,985.15 crore and
provision shortfall amounting taka 2,506.76 Crore against Common Equity Tier-1 (CET-1) Capital and maintained
CRAR 10.07%<10.10% as on 31 December 2023. Bank has complied that instruction accordingly.

160 ANNUAL REPORT 2023

4. Credit Risk
Qualitative Disclosures
Credit risk is the potential loss that may arise from a borrower’s failure to repay a
loan or meet its obligation in accordance with agreed term. Banks are very much
prone to credit risk due to its core activities i.e. lending to corporate, SME, individual,
another bank/ FI.
a)The general qualitative
disclosure requirement As per relevant Bangladesh Bank guidelines, the Bank defines the past due and
with respect to investment impaired loans and advances for strengthening the credit discipline and mitigating
(credit) risk, including : the credit risk of the Bank. The impaired loans and advances are defined on the basis
of (i) Objective / Quantitative Criteria and (ii) Qualitative judgment. For this purposes,
all loans and advances are grouped into four (4) categories namely- (a) Continuous
Loan (b) Demand Loan (c) Fixed Term Loan and (d) Short-term Agricultural & Micro
Credit.
According to the instructions of Bangladesh Bank, all Loans & Advances are
classified into four segments. These are:

1. Special Mention Account (SMA)

2. Substandard (SS)
3. Doubtful (DF)
4. Bad / loss (BL)
Sonali Bank follows strictly all the regulations provided by Bangladesh Bank while
calculating the above.

Period for
Classification
SL Types of Loans Classification
(i) SBPLC follows Bangladesh Status
(past due)
Bank’s BRPD Circular SMA (>2<3) Month
No.14 Dated 23 September
SS (≥3<9) Month
2012 and subsequent 1 Continuous Loan
modification in rules for DF (≥9<12) Month
changes in classification of BL ≥12 Month
loans & advances SMA (>2<3) Month
SS (≥3<9) Month
2 Demand Loan
DF (≥9<12) Month
BL ≥12 Month
SMA (>8<9) Month
SS (≥9<15) Month
3 Fixed Term Loan
DF (≥15<18) Month
BL ≥18 Month
SS (>12<36) Month
Short Term Agricultural & Micro
4 DF (≥36<60) Month
Credit
BL ≥60 Month

ANNUAL REPORT 2023 161

SONALI BANK PLC

Unclassified Classified
Types of Loans & Advances Standard SMA SS DF BL
Short Term Agricultural Credit 1% - 5% 5% 100%
Consumer Financing 2% 2% 20% 50% 100%
(ii) Provisioning depending Housing Finance 1% 1% 20% 50% 100%
on the group: (Approaches Loans to Professionals to setup
2% 2% 20% 50% 100%
followed for specific and business
general allowances) Medium Enterprise Financing 0.25% 0.25% 20% 50% 100%
CMS Financing 0.25% 0.25% 5% 20% 100%
Loans to Brokerage House/
2% 2% 20% 50% 100%
Merchant Bank/ Stock Dealers
All other Credit 1% 1% 20% 50% 100%

Mentionable that, all interest accrued is credited to interest suspense account instead of crediting the same to
income account if the loan is classified as sub-standard and doubtful. However, charging of interest is discontinued
when the loan is classified as bad/loss.
The salient features of Sonali Bank credit risk management policy and procedures
are as under:
• Credit policy approved by the Board: The Board approves the Credit Risk
Management Policy of SBPLC for ensuring the best practice in credit risk
management and maintaining quality of assets. The credit policy/manual has
been put in place in compliance with Bangladesh Bank’s guidelines on credit
risk management and other rules & regulations circulated by BB from time to
time.
• Credit approval is delegated properly: Authorities are properly delegated
ensuring check and balance in credit operation at every stage i.e. screening,
assessing risk, identification, management and mitigation of credit risk as
well as monitoring, supervision and recovery of loans with provision for early
warning system.
• Independent credit risk Management Division: There is an independent
Credit Division (Credit Risk Management Division) to assess credit risks and
suggest the mitigation procedures & techniques while processing the credit
proposals by the Corporate Banking Division for approval.
(iii) Discussion of the Bank’s • Separate credit Administration Division: A separate credit administration
credit risk management division confirms that perfected security documents are in place before
policy: disbursement. SBPLC is continuing a unique process of rechecking security
documentation by a second legal advisor other than the lawyer who vetted it
originally.
• Independent credit Monitoring & recovery Division and Management
recovery committee: An independent and fully dedicated Credit Monitoring
& Recovery Division monitors the performance and recovery of loans,
identify early signs of delinquencies in portfolio and take corrective measures
including legal actions to mitigate risks, improve loan quality and to ensure
timely recovery of loans.
• Credit operations are subject to independent internal Audit: Internal
Control & Compliance Division independently verifies and ensures, at least
once in a year, compliance with approved lending guidelines, Bangladesh
Bank guidelines, operational procedures, adequacy of internal control,
documentation and overall Credit Risk Management System.
• Reporting to Board/ executive committee/risk Management committee: Overall
quality, performance, recovery status, risks status, adequacy of provision of loan
portfolio are regularly reported to the Board of Directors/ Executive Committee/
Risk Management Committee of the Board for information and guidance.

162 ANNUAL REPORT 2023

 Above all, the Risk Management Division is regularly guiding the Credit Risk
Management Division (s) on increasing the collateral coverage, product/sector
specific diversification of credit exposures, single borrower exposures limit, large
loan portfolio ceiling as stipulated by Bangladesh Bank, improving the asset quality,
conducting credit rating of the borrowers to minimize the capital charge against
credit risk of the Bank. Adequate provision is maintained against classified loans as
per Bangladesh Bank Guidelines. Status of loans is regularly reported to the Board
of Directors/ Risk Management Committee of the Board.

Quantitative Disclosures

Sonali Bank PLC has its own Credit Risk Management guideline in terms of Core Risks Management guidelines of
Bangladesh Bank. The Bank also follows other instructions/guidelines of Bangladesh Bank in this regard. Sonali
Bank PLC constantly monitors, reviews and analyses its credit portfolio with a view to improving ability of credit
portfolio, minimizing potential losses and ensuring efficient credit process.
To manage the Non-Performing Loans (NPL), Sonali Bank PLC has a comprehensive remedial management policy,
which includes a framework of controls to identify weak credits and monitoring of these accounts constantly.

(b) Total gross credit risk exposures broken down by major types of credit exposure.
On Balance Sheet Exposures Solo Consolidated
Cash Credit General (Hypo) 408.83 408.83
Cash Credit General (Pledge) 93.87 93.87
Packing Cash Credit 383.68 383.68
Overdrafts Loan + TOD 3016.72 2813.02
Demand Loan 0.14 0.14
Small Loan 4.45 4.45
General House Building Loan 820.56 820.56
Staff House Building Loan 7324.63 7324.88
Staff Loan 347.52 347.77
House Building Loan (Govt. Employees) 436.57 436.57
House Building Loan (Public Univ, UGC & CJ) 88.14 88.14
Special Loan Programme 0.49 0.49
Special F.C Term Loan to Payra Port Authority 4999.62 4999.62
Special F.C Term Loan to Sonali Bank (UK) Limited 385.00 0.00
Special Term Loan against Fund Received from BB for Workers' Salary of Export
7.60 7.60
Oriented Industries Under Covid-19
Loan under SB Industrial Credit Scheme 2880.09 2880.09
Loan under External Credit Program 0.00 0.00
Working Capital to Industries (Hypo) 3473.83 3473.83
Working Capital to Industries (Pledge) 133.41 133.41
Working Capital Under Stimulus Pack for Indus & Serve for COVID-19 452.11 452.11
Sonali Credit 54.47 54.47
Loan Under SB Agro Based Industrial Scheme 549.09 549.09
Working Capital to Agro Based Industry (Hypo) 558.92 558.92
Working Capital to Agro Based Industry (Pledge) 240.00 240.00
Agricultural Loan & Other (Wheat, Maze etc) 6692.86 6692.86
Agri. Loan Disbursed at conce. Intt. Rate against COVID-19 110.99 110.99
Agri. Loan Against Special Stimulus Refinance Sch. For COVID-19 68.54 68.54
Micro Credit 1085.18 1085.18
Micro Credit Loan Under B.B Revolving Refi. Sch. for COVID-19 0.27 0.27
LIM (Loan Against Imported Merchandise) 143.32 143.32

ANNUAL REPORT 2023 163

SONALI BANK PLC

LTR (Loan Against Trust Receipt) 20830.40 20830.40

Forced Loan 2138.35 2138.35
Loan for L/C under WES 0.01 0.01
Loan against Inland Bills 18.50 18.50
Current Account Barter (Debit Balance) 93.26 93.26
Bridge Finance 129.45 129.45
Small Business Loan Scheme 32.35 32.35
Lease Finance 2.62 2.62
Consumer Loan 16334.75 16334.75
Term Loan to Freedom Fighter 4409.60 4409.60
Loan Against BB Refinance Scheme of Ghorefera 19.16 19.16
Special F.C Term Loan to Bangladesh Biman 4646.52 4646.52
Force Loan A/C PAD 350.87 350.87
SME Finance (Term Loan Service) 8715.48 8715.48
SME Finance (Term Loan to Industries) 233.87 233.87
SME Finance (Working Capital Wind) 5168.51 5168.51
SME Loan Under BB Revolving Re-Finance for COVID-19 768.55 768.55
CMSME Term Loan under BB + Startup Fund 117.91 117.91
SME Loan Under B.B Revolving Re-Finance for COVID-19 (Term) 51.44 51.44
Bills Discounted and Purchased 837.37 2497.76
Special Loan-Advance Rent (Interest Bearing) 10.31 10.31
NGO & MFI Linkage Revolving Loan+Other 0.12 0.12
Forced Loan A/C EDF 350.96 350.96
Rural Housing Finance-Sonali Neer A/C 26.41 26.41
Loan against Food Procurement Bill A/C 638.63 638.63
Long term loan at prevailing rate of Interest (SECI) 5.05 0.00
Bai Muazzal- House Hold Durable Scheme IW 113.92 113.92
Loan against Sonali Bank UK Limited - 260.47
Portfolio Loan to Investors - 266.57
Total 100805.27 102399.45

Quantitative Disclosures
(Tk. In Crore)
Off-Balance Sheet Exposures Solo Consolidated
Letter of Guarantee 432.38 432.38
Irrevocable Letters of Credit 74558.36 74558.36
Bills for Collection 527.12 527.12
Other Contingent Liabilities 171.73 171.73
Total 75689.69 75689.69

164 ANNUAL REPORT 2023

(c) Geographical distribution of exposures, broken down in significant areas by major types of credit exposure.
(Tk. in Crore)
Geographical distribution of exposures (Divisional Office Wise)
Inside Bangladesh
Solo Consolidated
(Divisional Office Wise) 45.07% Dhaka Central

2.17% Dhaka North

1) Dhaka Central 45415.10 47009.28 8.80% Dhaka South

2.85% Barishal
2) Dhaka North 2188.31 2188.31
1.25% Chattagram North

3) Dhaka South 8868.34 8868.34 2.99% Chattagram South

2.26% Comilla
4) Barishal 2866.92 2866.92 3.23% Faridpur

5) Chattogram North 1255.76 1255.76 4.71% Khulna

3.36% Jashore
6) Chattogram South 3008.02 3008.02 2.50% Mymensingh

7) Cumilla 2280.41 2280.41 1.95% Jamalpur

4.58% Rajshahi

8) Faridpur 3251.09 3251.09 5.21% Rangpur

9) Khulna 4741.48 4741.48 1.97% Sylhet

2.39% Bogra

10) Jashore 3389.40 3389.40 1.19% Noakhali

3.50% Dinajpur
11) Mymensingh 2521.86 2521.86
12) Jamalpur 1992.23 1992.23
13) Rajshahi 4613.94 4613.94
14) Rangpur 5246.39 5246.39
15) Sylhet 1987.92 1987.92
16) Bogura 2410.47 2410.47
17) Noakhali 1203.36 1203.36
18) Dinajpur 3522.96 3522.96
Outside Bangladesh
Kolkata &Siliguri 41.31 41.31
Total 100805.27 102399.45

(d) Industry or counterparty type distribution of exposures, broken down by major types of credit exposure.

(Tk. in Crore) Industry or counterparty type distribution of exposures

Industry Name Solo Consolidated

1) Agricultural / Rural 6.81% Agricultural / Rural Credit
6866.86 6866.86
Credit 1.10% Micro Credit

2) Micro Credit 1104.64 1104.64 6.89% Industrial Credit

3) Industrial Credit 6942.06 6942.06 1.34%

Agro based
Industrial Credit
4) Agro-based
1353.54 1353.54 34.90% International Trade
Industrial Credit
14.95% SME Finance
5) International Trade 35184.55 35184.55 General Advance
34.01%
& Others
6) SME Finance 15065.78 15065.78
7) General Advance &
34287.84 35882.02
Others
Total 100805.27 102399.45

ANNUAL REPORT 2023 165

SONALI BANK PLC

(e) Residual contractual maturity breakdown of the whole portfolio, broken down by major types of credit
exposure.

(Tk. In Crore)
Maturity Grouping of loans and advances Solo Consolidated
On demand 9333.10 9333.10
Not more than 3 months 9081.53 9081.53
More than 3 months but not more than 1 year 28719.44 28719.44
More than 1 year but not more than 5 years 18472.54 18472.54
More than 5 years 34342.79 34276.58
Total 99949.40 99883.19

(Tk. In Crore)
Bills purchased and discounted Solo Consolidated
Not more than 1 month 155.74 155.74
More than 1 month but not more than 3 months 6.08 6.08
More than 3 months but not more than 6 months 674.54 674.54
More than 6 months 19.51 1679.90
Total 855.87 2516.26

(f) Major counterparty wise amount of impaired loans

(Tk. In Crore)
Loans and advances on the basis of significant concentration including bills
Solo Consolidated
purchased and discounted
Advances to allied concerns of Directors - -
Advances to Managing Directors and other Senior Executives 15.14 15.14
Advances to customer group(amounting more than 10% of banks total
40827.98 40827.98
capital)
Other customers 51453.52 51453.52
Advance to staff 7652.76 7652.76
Total 99949.40 99949.40

Sector wise loans and advances

(Tk. In Crore)
Solo Conso

Sector wise loans and advances Solo Consolidated

Government 995.50 995.50

65.36%
65.81%

Other Public 34478.71 34478.71

33.67%
0.99%

0.97%

34.20%

Private 65331.06 66925.24

Total 100805.27 102399.45 Government Other Public Private

166 ANNUAL REPORT 2023

Government Solo Consolidated
Unclassified 758.72 758.72
Classified 236.78 236.78
Sub Total 995.50 995.50
Other public Solo Consolidated
Unclassified 34414.86 34414.86
Classified 63.85 63.85
Sub Total 34478.71 34478.71
Private Solo Consolidated
Unclassified 52418.56 54012.74
Classified 12912.50 12912.50
Sub Total 65331.06 66925.24
Classification wise loan-advs. and Provision Solo Consolidated
Standard 84503.04 86097.22
SMA 2961.25 2961.25
Sub Total 87464.29 89058.47
Classified Solo Consolidated
Substandard (SS) 333.96 333.96
Doubtful (DF) 197.37 197.37
Bad and Loss (BL) 12809.65 12809.65
Sub Total 13340.98 13340.98

g) Movement of NPA and Provisions

Note: In response to Bank’s request regarding maintenance of provisions for loans & advances for 2023, Bangladesh
Bank vide letter no-DOS(CAMS)1157/41(Dividend)/2024-1840 dated 30 April 2024 has given certain directives for
maintenance of provision against unclassified and classified loans & advances, investments and balance with
Bangladesh Bank as on 31 December 2023. As per the directives, the Bank has calculated the required provision
against unclassified and classified loans & advances and maintained provision amounting taka 10,354.40 crore by
relishing deferral of taka 1,272.26 crore accordingly. In addition Bangladesh Bank has also allowed deferral of Tk
1,234.50 crore of provision against balance with Bangladesh Bank.

(Tk. In Crore)
Solo Consolidated
Gross Non Performing Assets (NPAs) 13340.98 13340.98
Non Performing Assets (NPAs) to Outstanding Loans & advances 13.23% 13.03%
Movement of Non Performing Assets (NPAs) (Loans & advances) Solo Consolidated
Opening balance 12553.67 12553.67
Additions 1951.74 1951.74
Reductions 1164.44 1164.44
Closing balance 13340.97 13340.97
Movement of specific provisions for NPAs (Loans & advances) Solo Consolidated
Opening balance 7238.65 7238.65
Add: Provisions made during the period 1841.11 1841.11
Less: Loan write-off Which fully provided for 45.82 45.82
Add: Recovery loans which was written-off earlier 0.03 0.03
Closing balance 9033.97 9033.97

ANNUAL REPORT 2023 167

SONALI BANK PLC

5) Equities: Disclosures for Banking Book Positions

Qualitative Disclosures

The major portion of the Bank’s holding of equity exposure is mainly with the purpose of capital gain. The quoted
shares are valued both at cost price and market price basis. However, the un-quoted shares are valued at their cost
price.

(a) Both "Solo Basis" & "Consolidated Basis" the Bank has equity exposure in Banking Book consisting of listed
shares of 131 companies and unlisted shares of 13 companies.

Market value of allotted securities has been determined on the basis of the value of securities at the last trading day
of the year. The non-listed investments in securities are shown at cost.

Quantitative Disclosures
(b) Value disclosed in the balance sheet of investments, as well as the fair value of that equity at cost price and
market price has been disclosed as under:

(Tk. in Crore)
Investment in shares at cost price :
Solo Consolidated
Quoted and Un-quoted shares 2095.30 2375.60
Quoted shares 1009.67 1289.97
Un-quoted shares 1085.63 1085.63
Investment in shares as market price ;
2356.23 2636.53
Quoted and Un-quoted shares
Quoted shares 1270.60 1550.90
Un-quoted shares 1085.63 1085.63

6. Interest rate risk in the banking book (IRRBB)

Interest rate risk in the banking book reflects the shocks to the financial position of the Bank including potential loss
that the Bank may face in the event of adverse change in market interest rate. This has an impact on earning of the
Bank through net interest earning as well as on market value of equity or net worth.
Qualitative Disclosures
(a) The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including
assumptions regarding loan prepayments and behavior of non-maturity deposits and frequency of IRRBB
measurement.
Interest rate risk is the potential impact on the Bank’s earnings (Net Interest Income- NII) and net asset values due to
changes in market interest rates. Interest rate risk arises when the Bank’s principal and interest cash flows (including
final maturities), for both On and Off-balance sheet exposures, have mismatched re-pricing dates. The amount at
risk is a function of the magnitude and direction of interest rate changes and the size and maturity structure of the
mismatch position. The portfolio of assets and liabilities in the banking book sensitive to interest rate changes is the
element of interest rate risk.

To manage this risk in the banking book, bank considers the impact of interest rate changes on both assets and
liabilities, and its particular features including, among other things, terms and timing. Changes in interest rates affect
both the current earnings (earning perspective) as well as the net worth of the Bank (economic value perspective).
SBPLC periodically computes the interest rate risk on the banking book that arises due to re-pricing mismatches
in interest rate sensitive assets and liabilities. For computation of the interest rate mismatches the guidelines of
Bangladesh Bank are followed. Details relating to re-pricing mismatches and the interest rate risk thereon are placed
to the ALCO regularly.
Quantitative Disclosures
(b) The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including
assumptions regarding loan prepayments and behavior of non-maturity deposits and frequency of IRRBB
measurement.

168 ANNUAL REPORT 2023

 (Rate Sensitive Assets & Rate Sensitive Liabilities)
as on 31 December 2023 (Taka in Crore)
8 days- More
2-7 1-3 3-6 6-12 1-5
Particulars TOTAL Call 1 than 5
days Month Months Months Years
Month years
Term Deposits with
Bank & NBFI 2,994.42 20.00 0.00 102.90 674.00 329.40 307.04 1,546.56 14.52
Money at Call & Short
Notice 1,521.71 1,453.73 0.00 0.00 0.00 0.00 67.98 0.00 0.00
Investment in Govt.-
Securities 57,089.12 749.77 0.00 608.87 3,854.93 3,996.15 8,226.61 24,793.33 14,859.46
Other Investments 6,372.08 0.00 0.00 0.00 45.00 48.75 1,779.03 3,243.70 1,255.60
Loans and Advances* 99,747.77 343.76 2,841.98 9,539.46 22,827.19 12,027.19 10,535.36 25,678.01 15,954.82
Bills Purchased &
discounted 898.73 0.00 49.05 264.77 584.91 0.00 0.00 0.00 0.00
Reverse REPO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total RSA 168,623.83 2,567.26 2,891.03 10,516.00 27,986.03 16,401.49 20,916.02 55,261.60 32,084.40

Borrowings: From
Bangladesh Bank (9,891.40) 0.00 0.00 0.00 0.00 0.00 0.00 (9,853.05) (38.35)
Money at Call & Short
Notice 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Deposits** (124,550.53) (5,045.86) (1,857.62) (3,693.96) (29,131.06) (31,031.24) (21,849.54) (27,656.47) (4,284.78)
REPO 13,662.00 13,662.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total RSL (120,779.93) 8,616.14 (1,857.62) (3,693.96) (29,131.06) (31,031.24) (21,849.54) (37,509.52) (4,323.13)

NET MISMATCH 47,843.90 11183.40 1033.41 6822.04 (1145.03) (14629.75) (933.52) 17752.08 27761.27
CUMULATIVE NET
MISMATCH 11183.40 12216.81 19038.85 17893.82 3264.07 2330.55 20082.63 47,843.90

* Excluding provision for Non Performing Loans of Tk. 8,358.57 crore and Interest Suspense of Tk. 6,191.42 crore.
** Excluding non interest bearing demand deposits of Tk. 24,205.91 crore.

7. Market risk
Market risk arises due to changes in the market variables such as interest rates, foreign currency exchange
rates, equity prices and commodity prices. The financial instruments that are held with trading intent or to hedge
against various risks, are purchased to make profit from spreads between the bid and ask price are subject to market
risk. SBPLC is exposed to market risk mostly stemming from Government Treasury Bills and Bonds, Shares
of listed Public Limited Companies, foreign currency etc.
Qualitative Disclosures
The Board approves all policies related to market risk, set limits and reviews
compliance on a regular basis. The objective is to provide cost effective funding
to finance assets growth and trade related transactions. The market risk covers the
followings risks of the Bank’s balance sheet:
(a) Views of Board of
Directors (BOD) on trading / i) Interest rate risk;
investment activities
ii) Equity price risk;

iii) Foreign exchange risk; and

iv) Commodity price risk.

ANNUAL REPORT 2023 169

SONALI BANK PLC

As per relevant Bangladesh Bank guidelines, Standardized Approach has been used
to measure the Market Risk for capital requirement for trading book of the Bank.
The total capital requirement in respect of market risk is the aggregate capital
requirement calculated for each of the risk sub-categories. For each risk category
minimum capital requirement is measured in terms of two separately calculated
capital charges for “specific risk” and “general market risk” as under:
Methods used to measure
Component of Capital charged For Market risk
market risk
Market risk General Market risk Specific Market risk
Interest Rate Risk Applied -
Equity Price Risk Applied Applied
Foreign Exchange Risk Applied -
Commodities Price Risk N/A
The Treasury Division of the Bank manages market risk covering liquidity, interest
rate and foreign exchange risks with oversight from Assets- Liability Management
Committee (ALCO) comprising senior executives of the Bank. ALCO is chaired by
Market risk management
the Managing Director. ALCO meets at least once in a month.
system
The Risk Management Division also reviews the market risk parameters on monthly
basis and recommends on portfolio concentration for containing the RWA.
There are approved limits for credit deposit ratio, liquid assets to total assets ratio,
maturity mismatch, commitments for both on-balance sheet and off-balance sheet
items and borrowing from money market and foreign exchange position. The limits
Policies and processes for
are monitored and enforced on a regular basis to protect against market risks. The
mitigating market risk
exchange rate committee of the bank meets on a daily basis to review the prevailing
market condition, exchange rate, foreign exchange position, and transactions to
mitigate foreign exchange risks.
Quantitative Disclosures

The capital requirements for market Risk

(Tk. in Crore)
(b)The capital requirements for: Solo Consolidated
32.77%
202.41
26.08%

41.15%
161.09

254.12

Interest rate risk; 161.09 161.09

Equity position risk; 254.12 254.12
Foreign exchange risk; 202.41 202.41
Commodity risk
0%

Nil Nil
0

Interest Equity Foreign Commodity

Total Requirement 617.62 617.62

rate risk position risk exchange risk risk

8. Operational risk
Operational risk is the risk which may arise directly or indirectly due to failure or breakdown of system, people,
and process. This definition includes legal risk, but excludes strategic and reputation risk. The bank manages these
risks through a control based environment in which processes are documented, authorization is independent, and
transactions are reconciled and monitored.
Qualitative Disclosures
The policy for operational risks including internal control and compliance risk is approved by
the Board in line with the relevant guidelines of Bangladesh Bank. Audit Committee of the
Board directly oversees the activities of Internal Control and Compliance Division (IC&CD) to
protect against all operational risks.

170 ANNUAL REPORT 2023

 As a part of continued surveillance, the Senior Management Team (SMT) which was
(a) Views of Board
previously named as Management Committee (MANCOM), Risk Management Committee
of Directors
(at the management level), and independent Risk Management Division regularly reviews
(BOD) on system
different aspects of operational risk. The analytical assessment was reported to the Board/
to reduce
Risk Management Committee/Audit Committee of the Bank for review and formulating
Operational Risk
appropriate policies, tools & techniques for mitigation of operational risk.

(b) Performance SBPLC has a policy to provide competitive package and best working environment to attract
gap of executives and retain the most talented people available in the industry. SBPLC’s strong brand image plays
and staffs an important role in employee motivation. As a result, there is no significant performance gap.
Like other peers, SBPLC operates its business with few external risk factors relating to the
socio-economic condition, political atmosphere, regulatory policy changes, natural disaster
(c) Potential etc. based on the overall perspective of the country. Potential external events and related
external events downside risk, namely, political impasse, damage of Bank’s delivery channel including ATM,
fear of theft/ robbery in banks vaults, compliance/adjustment due to changes of regulatory
policy stance, laws & regulations etc. are managed to keep within tolerable limit.
The policy for operational risks including internal control and compliance risk is approved by
the Board taking into account relevant guidelines of Bangladesh Bank. A policy guideline on
Risk Based Internal Audit (RBIA) System is in operation. As per RBIA, branches with high risk
status and subjected to more frequent audit by Internal Control and Compliance Division
(IC&CD). IC&CD directly reports to Audit Committee of the Board.
Currently, SBPLC are using some models or tools for mitigating operational risk such as
Self Assessment of Anti-fraud Internal Control; Quarterly Operational Report (QOR) and
(d) Policies
Departmental Control Function Check List (DCFCL) in line with the Bangladesh Bank’s relevant
and processes
Instructions and recommendations. It is required to submit the statement on Self Assessment
for mitigating
of Antifraud Internal Control to Bangladesh Bank on quarterly rest.
operational risk
In addition, there is a Vigilance Cell established in 2009 to reinforce the operational risk
management of the Bank. Bank’s Anti- Money laundering activities are headed by CAMLCO
and their activities are devoted to protect against all money laundering and terrorist finance
related activities. The newly established Central Customer Service & Complaint Management
Cell was also engaged in mitigating the operation risks of the Bank. Apart from that, there is
adequate check and balance at every stage of operation, authorities are properly segregated
and there is at least dual control on every transaction to protect against operational risk.
The Bank follows the Basic Indicator Approach (BIA) in terms of BRPD Circular No. 18 dated
21 December2014 [Guidelines on ‘risk Based capital Adequacy for Banks’ (revised regulatory
capital framework in line with Basel III)]. The BIA stipulates the capital charge for operational
risk is a fixed percentage, denoted by α (alpha) of average positive annual gross income of
the Bank over the past three years. It also states that if the annual gross income for any year is
negative or zero, that should be excluded from both the numerator and denominator when
calculating the average gross income. The capital charge for operational risk is enumerated
by applying the following formula:
K = [(GI 1 + GI2 + GI3) α]/n
Where:
(e) Approach K = the capital charge under the Basic Indicator Approach
for calculating GI = only positive annual gross income over the previous three years (i.e., negative or
capital charge for zero gross income if any shall be excluded)
operational risk α= 15 percent
n = number of the previous three years for which gross income is positive.

Besides, Gross Income (GI) is calculated as “net Interest Income” plus “net non -Interest
Income”. The GI is also the net result of:
i. Gross of any provisions;
ii. Gross of operating expenses, including fees paid to outsourcing service providers;
iii. Excluding realized profits/losses from the sale of securities held to maturity in the
banking book;
iv. Excluding extraordinary or irregular items;
v. Excluding income derived from insurance.

ANNUAL REPORT 2023 171

SONALI BANK PLC

Quantitative Disclosures

The capital requirements for Operational Risk Capital Requirements for Operational Risk

Solo Consolidated

Year Gross 15% of Gross 15% of

Average Average
Income Average Income Average

903.24
GI* GI*
(GI) GI (GI) GI

880.35
2023 7406.49 7,620.08
2022 5520.73 5869.01 880.35 5,644.33 6021.58 903.24
Solo Consolidated
2021 4679.81 4,800.33

9. Liquidity Ratio
In line with the provisions of liquidity risk management under Basel III, Bangladesh Bank on the basis of the relevant
guideline of Bank for International Settlements (BIS) has identified the (i) Liquidity Coverage Ratio (LCR); (ii) Net
Stable Funding Ratio (NSFR); and (iii) Leverage under the purview of ‘Liquidity’ ratio vide BRPD Circular No. 18 dated
21 December 2014 and DOS Circular No. 1 dated 1 January 2015.
Qualitative Disclosures
The Board of Directors reviews the liquidity risk of the Bank on quarterly rest while reviewing
the Quarterly Financial Statements, Stress Testing Report etc. Besides, the Chairman of
the Board also reviews the liquidity position while reviewing the management information
system (MIS) report on monthly basis. Upon reviewing the overall liquidity position along
(a) Views of Board
with the outlook of SBPLC funding need, investment opportunity, market/industry trend,
of Directors (BOD)
the Board takes its strategic decision regarding deposits, funding, investments, loans as
on system to reduce
well as interest rates polices etc.
Liquidity Risk
The Board of SBPLC always strives to maintain adequate liquidity to meet up Bank’s overall
funding need for the huge retail depositors, borrowers’ requirements as well as maintain
regulatory requirements comfortably.
In order to measure liquidity risk various methods are being used which are as follows:

• GAP analysis is being done regularly that deals with the mismatch of assets and
liabilities in different time buckets like 0-30 days, 31-90 days, 91-180 days, 181-
270 days, 271-365 days and beyond 1 year. In monthly ALCO paper, SBPLC show
(b) Methods used to
this GAP analysis based on which different strategic decisions are taken in order
measure Liquidity
to reduce liquidity risk that may arise due to the mismatch between assets and
Risk
liabilities.

• Cash flow forecasting is another technique to measure liquidity risk that may arise
due to future cash flow mismatch. In our monthly ALCO paper we show this cash
flow forecasting
In SBPLC, at the management level, the liquidity risk is primarily managed by the Treasury
Division (Front Office) under oversight of ALCO which is headed by the Managing Director
(c) Liquidity risk along with other senior management. Apart from the above, Risk Management Division
management system also monitors & measures the liquidity risk in line with the Basel III liquidity measurement
tools, namely, LCR, NSFR, Leverage Ratio. RMD addresses the key issues and strategies to
maintain the Basel III liquidity ratios to the respective division (s) on regular interval.
The Asset-Liability (ALCO) policy leads the process & procedures for mitigation of liquidity
risk of SBPLC.
(d) Policies and
processes for ALCO works under specific Terms of References (functions) approved by the Board.
mitigating Liquidity
Risk Treasury Division (Front Office) and ALM desk under regular supervision of Top Management
reviews the overall liquidity position of SBPLC and takes appropriate strategy, process in
line with the industry position for managing liquidity risk of the Bank.

172 ANNUAL REPORT 2023

 Quantitative Disclosures

Amount in Taka
Liquidity Coverage Ratio 331.90%
Net Stable Funding Ratio (NSRF) 101.27%
Liquidity Ratio (Solo)
Stock of High quality liquid assets 6,51,86,27,13,000
Total net cash outflows over the next 30 calendar days 1,96,40,18,20,873
Available amount of stable funding 13,79,64,17,24,000
Required amount of stable funding 13,62,35,62,71,000

10. Leverage Ratio

Leverage is an inherent and essential part of modern banking business. In other words, banks are highly leveraged
organizations which facilitate leverage for others. Leverage, in simple terms, is the extent to which a bank funds its
assets with borrowings rather than capital. More debt relative to capital means a higher level of leverage.

Qualitative Disclosures
The Board of Directors of SBPLC primarily views on the growth of On and Off balance
sheet exposures commensurate with its expected capital growth so that the excessive
(a) Views of BOD on leverage is reduced. Within the On-balance components, again, the Board emphasizes
system to reduce on the growth of the rime component i.e. the loans and advances and maintaining good
excessive leverage asset quality so as to maximize the revenue as well as the capacity to generate capital
internally (in the form of retained earnings) to trade-off the excessive leverage supposed to
be caused by asset growth.
First and foremost, Bank’s policy is to maintain the Leverage Ratio (Tier 1 capital as
proportion to total adjusted On and Off balance sheet asset) well above the regulatory
requirement. To this end, the striking components of balance sheet, namely, the deposits
& borrowing, loans & advances, other liquid assets (treasury bills, bonds, fund placements)
(b) Policies and are analyzed on monthly basis.
processes for
Measures are taken to contain the growth of overall size of balance sheet (On and Off
managing excessive
balance sheet exposures aggregately) considering short term outlook of the industry
On and Off Balance
indicators as well as possible growth of equity (Tier 1 capital) of the Bank on quarterly rest.
Sheet leverage
With regard to managing the excessive leverage, the regulatory stance through the
monetary policy initiatives i.e. the scope of expected business potential (growth), estimated
money supply, inflation, resulting the estimated overall liquidity of the industry as well as the
Bank in particular is also considered.
The exposures of balance sheet representing the overall position of the Bank as of the
reporting date are calculated and presented in terms of applicable relevant accounting
standards, i.e., IASs (BASs), IFRSs (BFRSs), etc.
(c) Approach for
The accounting values of assets and liabilities are also presented and measured at gross.
calculating exposure/
Netting of assets and liabilities are also made where permitted in compliance with the
Leverage
respective accounting standards and the regulatory instruction.

For calculating “leverage”, SBPLC follows the ‘Leverage Ratio’ approach/method as

suggested by Bangladesh Bank.

ANNUAL REPORT 2023 173

SONALI BANK PLC

Qualitative Disclosures

Amount in Taka
Solo Consolidated
Tier-1 Capital 62,01,04,00,000 68,39,43,00,000
On balance sheet exposure 18,90,81,68,03,199 19,01,33,93,65,056
Leverage Ratio of
Off balance sheet exposure 1,66,31,24,00,000 1,66,31,24,00,000
SBPLC
Regulatory Adjustment made to Tier1
85,22,00,000 88,81,00,000
Capital
Total exposure 20,56,27,70,03,199 20,66,76,36,65,056
Leverage Ratio 3.02% 3.31%

11. Remuneration
Qualitative Disclosures
a) Information relating to the bodies that oversee remuneration.

(i) Name of the bodies At the management level, primarily the Human Resources Division oversees the
that overseeing ‘remuneration’ in line with its HR management strategy/policy under direct supervision
remuneration and guidance of Senior Management Team (SMT) of the Bank.

The SMT is headed and chaired by the CEO of the Bank; along with other members of
(ii) Composition of the
top executive management (Deputy Managing Directors) and the Heads of different
main body overseeing
functional divisions of Head Office. Head of Human Resources Division acts as the
remuneration
Member Secretary of the SMT of SBPLC.

The mandate of the Senior Management Team (SMT) as the main body for overseeing
(iii) Mandate of the the Bank’s remuneration is to review the position of remuneration and associated
main body overseeing matters and recommend to the Board of Directors for approval of its restructuring,
remuneration rearrangement and modification commensurate with the industry best practices as
per requirement.
(iv) External consultants
whose advice has
The Bank has no External Consultant permanently regarding ‘remuneration’ and
been sought, the body
its process. However, experts’ opinion may have been sought in case to case basis
by which they were
regarding income tax matter, lawyers’ opinion for settlement of employees’ dues in
commissioned, and
case of death, penalty etc. if required, by the management.
in what areas of the
remuneration process.
(v) A description of
the scope of the bank’s The Bank does not differentiate the ‘Pay Structure’ and ‘employee benefits’ by regions.
remuneration policy (e.g. However, variation in remuneration is in practice based on nature of job/business line/
by regions, business lines), activity primarily bifurcated for the employees who are directly recruited by the Bank
including the extent to and the headcounts/employees explored through outsourcing service providers as
which it is applicable to per rule. As of 31 December 2023, the Bank had three foreign & one local subsidiary
foreign subsidiaries and and two branches outside Bangladesh.
branches.
(vi) A description of
the types of employees
We consider the members of the senior management, branch managers and the
considered as material
employees engaged in different functional divisions at Head Office (except the
risk takers and as senior
employees involved in internal control, risk management and compliance) as the
managers, including the
material risk takers of SBPLC.
number of employees in
each group.

174 ANNUAL REPORT 2023

b) Information relating to the design and structure of remuneration processes.
Remuneration and other associated matters are guided by the Bank’s Service Rule as
(i) An overview of the key
well as instruction, guidance from the Board from time to time in line with the industry
features and objectives of
practice with the objectives of retention/hiring of experienced, talented workforce
remuneration policy.
focusing on sustainable growth of the Bank.
(ii) Whether the
remuneration committee
reviewed the bank’s
Human Resources Division under guidance of SMT, the Board and senior management
remuneration policy
reviews the issues of remuneration & its associated matters from time to time.
during the past year, and
if so, an overview of any
changes that was made.
(iii) A discussion
The risk and compliance employees are carrying out the activities independently as
of how the bank
per specific terms of references, job allocated to them. Regarding remuneration of
ensures that risk and
the risk and compliance employees, Human Resources Division does not make any
compliance employees
difference with other mainstream/ regular employees and sets the remuneration as
are remunerated
per the prevailing rule of the Bank primarily governed by the employees’ service rule
independently of the
of the Bank.
businesses they oversee.

c) Description of the ways in which current and future risks are taken into account in the remuneration processes.

(i) An overview of the

key risks that the bank The business risk including credit/default risk, compliance & reputational risk are mostly
takes into account considered when implementing the remuneration measures for each employee/
when implementing group of employee. Financial and liquidity risk are also considered.
remuneration measures.
Different set of measures are in practice based on the nature & type of business
(ii) An overview of the lines/segments etc. These measures are primarily focused on the business target/
nature and type of the key goals set for each area of operation, branch vis-à-vis the actual results achieved as
measures used to take of the reporting date. The most vital tools & indicators used for measuring the risks
account of these risks, are the asset quality (NPL ratio), Net Interest Margin (NIM), provision coverage ratio,
including risks difficult to credit-deposit ratio, cost-income ratio, growth of net profit, as well the non-financial
measure. indicators, namely, the compliance status with the regulatory norms, instructions has
been brought to all concerned of the Bank from time to time.

(iii) A discussion of While evaluating the performance of each employee annually, all the financial and
the ways in which non-financial indicators as per pre-determined set criteria are considered; and
these measures affect accordingly the result of the performance varies from one to another and thus affect
remuneration. the remuneration as well.

(iv) A discussion of how the

nature and type of these
No material change has been made during the year 2023 that could the affect the
measures has changed
remuneration.
over the past year and
reasons for the change,
as well as the impact of
changes on remuneration.

d) Description of the ways in which the bank seeks to link performance during a performance measurement
period with levels of remuneration.

The Board sets the Key Performance Indicators (KPIs) while approving the business target/
budget for each year for the Bank and business lines/segments. The management sets the
(i) An overview of main
appropriate tools, techniques and strategic planning (with due concurrence/approval of
performance metrics for
the Board) towards achieving those targets. The most common KPIs are the achievement
bank, top-level business
of loan, deposit and profit target with the threshold of NPL ratio, cost-income ratio, cost
lines and individuals.
of fund, yield on loans, provision coverage ratio, capital to risk weighted asset ratio (CRAR),
ROE, ROA, liquidity position (maintenance of CRR and SLR) etc.

ANNUAL REPORT 2023 175

SONALI BANK PLC

(ii) A discussion of how

amounts of individual The remuneration of each employee is paid based on her/his individual performance
remuneration are linked evaluated as per set criteria. And, accordingly, the aggregate amount of remuneration
to bank-wide and of the Bank as a whole is linked/ impacted to the same extent.
individual performance.
(iii) A discussion of the
measures the bank will
in general implement
to adjust remuneration
in the event that The Bank follows remuneration process as per set criteria with no in general adjustment
performance metrics in the event of weak performance metrics/scorecard.
are weak. This should
include the bank’s criteria
for determining “weak”
performance metrics.
e) Description of the ways in which the bank seek to adjust remuneration to take account of longer-term
performance.
(i) A discussion
of the bank’s policy on
deferral and vesting of
variable remuneration
and, if the fraction of The Bank pays variable remuneration i.e. annual increment based on the yearly
variable remuneration performance rating on cash basis with the monthly pay. While the value of longer
that is deferred differs term variable part of remuneration i.e. the amount of provident fund, gratuity fund
across employees or are made provision on aggregate/individual employee basis; actual payment is made
groups of employees, a upon retirement, resignation etc. as the case may be, as per rule.
description of the factors
that determine the
fraction and their relative
importance.
(ii) A discussion of the
bank’s policy and criteria
for adjusting deferred
remuneration before
Not Applicable.
vesting and (if permitted
by national law) after
vesting through claw back
arrangements.
f) Description of the different forms of variable remuneration that the bank utilizes and the rationale for using
these different forms.
(i) An overview of
the forms of variable
remuneration offered
(i.e. cash, shares and The Bank pays variable remuneration on cash basis (i.e. direct credit to the employee
share-linked instruments Bank account and/or Payment Order/Cheque), as the case may be, as per rule/
and other forms. A practice.
description of the
elements corresponding
to other forms of variable
remuneration (if any)
should be provided.

176 ANNUAL REPORT 2023

(ii) A discussion of the
use of the different
forms of variable
remuneration and, if the The following variable remuneration has been offered by SBPLC to its employees:
mix of different forms of
variable remuneration Annual Increment
differs across employees
or groups of employees), Bank provides annual increments based on performance to the employees with the
a description the factors view of medium to long term strategy and adherence to Sonali Bank values.
that determine the
mix and their relative
importance.
Qualitative Disclosures
g) Number of meetings held by the main body overseeing remuneration during the financial year and
remuneration paid to its member
11 (Eleven) meetings of the Senior Management Team (SMT) held in the year 2023. All the members of SMT are
from the core banking area/operation of the Bank. No remuneration was paid to the members of the Management
Committee for attending the meeting.
h)
i) Number of employees
Particulars Numbers
having received a variable
Number of employees having received a variable
remuneration award NIL
remuneration award during the year 2023
during the financial year.
The following Number of Employees received a variable remuneration during the year
2023:

ii) Number and total

amount of guaranteed Number of Total amount of
bonuses awarded during employees guaranteed
the financial year. Particulars
(In Unit) bonuses (In Million Taka)
Guaranteed bonuses awarded
NIL NIL
during the year 2023
iii) Number and total
amount of sign-on
There was no severance payment during the year.
awards made during the
financial year.
i)
i) Total amount of
outstanding deferred
remuneration, split into
Not Applicable.
cash, shares and share-
linked instruments and
other forms.
ii) Total amount of
deferred remuneration
No deferred remuneration paid in the year 2023.
paid out in the financial
year.

ANNUAL REPORT 2023 177

SONALI BANK PLC

j) Breakdown of amount of remuneration awards for the financial year to show:

i) Fixed and variable Fixed and variable remuneration paid in 2023 are as follows:
remuneration
Particulars Amount (Tk. in million)
Solo Consolidated
Fixed pay (Including Bonus) 2440.99 2481.54
Variable pay N/A N/A
Total fixed and variable pay 2440.99 2440.99
(ii) Deferred and non- Deferred and non-deferred (paid during the year)
deferred

iii) Different forms used

(cash, shares and share Remuneration is paid on cash basis (i.e. direct credit to the employee Bank account
linked instruments, other and/or Payment Order/ Cheque), as the case may be, as per rule/practice.
forms).
k) Quantitative information about employees’ exposure to implicit (e.g. fluctuations in the value of shares or
performance units) and explicit adjustments (e.g. claw backs or similar reversals or downward revaluations of
awards) of deferred remuneration and retained remuneration:
i) Total amount of
outstanding deferred
remuneration and
retained remuneration Not Applicable.
exposed to ex post
explicit and/or implicit
adjustments.
ii) Total amount of
reductions during the
Not Applicable.
financial year due to ex
post explicit adjustments.
iii) Total amount of
reductions during the
Not Applicable.
financial year due to ex
post implicit adjustments.

178 ANNUAL REPORT 2023

SUSTAINABILITY ANALYSIS AND
INTEGRATED REPORTING

ANNUAL REPORT 2023 179

SONALI BANK PLC

REPORT ON SUSTAINABLE BANKING

Sonali Bank PLC views sustainability as more than

just a separate initiative or department within
the bank; it’s ingrained deeply within its overall
business strategy. This means that considerations
for social and environmental impact are not treated
as secondary concerns but are given significant
importance from the top levels of decision-
making. Sonali Bank doesn’t view sustainability as
a standalone effort but integrates it into its core
business processes. This includes how the bank
interacts with its stakeholders, be it customers,
employees, investors, or the communities it serves.

By considering social and environmental responsibility Mission of Sonali Bank PLC

in these interactions, the bank aims to create value not
only for itself but also for society at large. Sustainability Mission of Sonali Bank PLC in achieving a sustainable
isn’t peripheral; it’s central to how the bank operates. This economy incorporates the strategy and policy of the
implies that every decision, whether it’s about investments, government which includes:
operations, or partnerships, is weighed against its impact
on sustainability. This ensures that sustainability is not • Poverty alleviation through contributing in socio-
sacrificed for short-term gains but is seen as essential for economic development of the country.
long-term success. By incorporating sustainability into its
business strategy, Sonali Bank can actively support projects, • Achieve food security by promoting sustainable
technologies, and enterprises that align with environmental agriculture and by enhancing facilities in transactions
and social goals. This could involve financing renewable of the farmers.
energy projects, investing in eco-friendly technologies, or • Support quality education and facilitate the school
supporting businesses with sustainable practices. going students.

Sonali Bank PLC is mindful of the environmental and

• Create awareness of its employees and the valued
clients for pollution free Bangladesh.
social impacts of its products and services. This means
that when designing financial products, the bank takes • Sustainable and gradual positive financial growth
into account how they might affect the environment through financing established and promising
or society positively. Additionally, mission policies and sectors.
strategies are formulated with sustainability in mind,
• Uphold customer care and responsible financial
ensuring that the bank’s overarching goals are aligned
services.
with broader societal and environmental objectives.
• Build balanced and green Bangladesh by protecting
SBPLC is mindful of the environmental and social forests and by combating desertification.
impacts of its products and services. This means that • Promote peaceful and inclusive societies for
when designing financial products, the bank takes sustainable development.
into account how they might affect the environment
or society positively. Additionally, mission policies and • Corporate infrastructure and culture in the
strategies are formulated with sustainability in mind, institution.
ensuring that the bank’s overarching goals are aligned
with broader societal and environmental objectives. Sustainable Finance Unit of Sonali Bank PLC
Overall, this statement underscores Sonali Bank Sonali Bank recognizes the importance of dedicated
PLC’s commitment to sustainability not as a separate resources and expertise for implementing sustainability
agenda but as a fundamental aspect of its identity and initiatives effectively. By establishing a separate
operations. By integrating sustainability into its core sustainable finance unit, the bank demonstrates
business, Sonali Bank PLC aims to create value not its commitment to integrating environmental
only for its shareholders but also for the planet and the considerations into its financial activities. The bank is not
communities it serves. relying on a single approach but is implementing a range

180 ANNUAL REPORT 2023

of measures to promote environmental sustainability. Incorporation of Environmental & Social Risk
These measures include green financing, which involves Management
providing financial support to projects and initiatives
that have positive environmental impacts. Additionally, Sonali Bank conducts a preliminary assessment of
the bank is focusing on raising awareness among its the environmental risks associated with any project
stakeholders, including customers and employees, using Environmental and Social Due Diligence (ESDD)
about the importance of environmental conservation. processes. This involves evaluating the potential
Moreover, Sonali Bank is actively promoting resource environmental and social impacts of the project at hand.
conservation by encouraging reduced consumption Based on the findings of the ESDD, the bank assigns
of water, electricity, and paper, which are significant an environmental risk rating to the project, which
contributors to environmental degradation. can be classified as low, moderate, or high risk. This
classification helps SBL determine the level of scrutiny
In line with its commitment to environmental and measures needed to manage environmental risks
responsibility, Sonali Bank is directing it’s financing associated with the project.
towards commercial projects that support ecological
balance. This could involve funding initiatives related In accordance with guidelines provided by the
to renewable energy, sustainable agriculture, waste Department of Environment, Bangladesh, SBPLC
management, or other activities that contribute to determines the environmental classification of its
environmental conservation and biodiversity. loans and advances. This classification likely involves
categorizing loans based on the environmental impact
The bank is taking practical steps to reduce its of the projects or activities they finance. Projects or
environmental footprint by designing new branches activities with potentially significant environmental
with environmental considerations in mind. Potential impacts may be subject to stricter environmental
branches of bank have established Sustainable Finance requirements and monitoring.
Dedicated Help Desk. These help desks are trying to
dessimite sustainable finance initiatives to the customers. Overall, these practices demonstrate SBPLC’s
By situating branches in locations that receive ample commitment to integrating environmental
sunlight and fresh air, the bank aims to minimize its considerations into its lending and investment decisions.
reliance on artificial lighting and air conditioning during By conducting thorough environmental risk assessments
office hours. This not only reduces energy consumption and adhering to regulatory guidelines, the bank aims to
but also creates a more pleasant and sustainable working mitigate environmental risks associated with its financing
environment for employees. activities and promote sustainable development.

Table 1: Sustainable Finance Position of Sonali Bank PLC (Green Finance)

(Amount in Million)

Amount of Amount of Amount of Outstanding as on

Green Finance Sectors
Disbursement 2021 Disbursement 2022 Disbursement 2023 December 2023
Renewable Energy 11.20 1.89 4.77 71.76
Energy & Resource Efficiency 0.1 0 0 0.08
Liquid Waste Management 0 0.13 0 7298.24
Solid Waste Management 0 1 0 1.07
Environment Friendly Brick Production 37.74 0 0 22.4
Recycling and Manufacturing of Recyclable Goods 1.36 0 0 1058.61
Green/Environment Friendly Establishments 0.13 0.13 0 0.29
Green Agriculture 5.62 3.32 0.20 4.36
Green CMSME 5.67 1.66 0 3.02
Grand Total 161.82 8.13 4.97 8459.83

ANNUAL REPORT 2023 181

SONALI BANK PLC

Table 2: Sustainable Finance Position of Sonali Bank PLC (Sustainable Linked Finance)
(Amount in Million)

Amount of Amount of Amount of Outstanding as

Sustainable Linked Finance Sectors Disbursement Disbursement Disbursement on December
2021 2022 2023 2023
Agriculture 7278.81 10028.66 13680.26 80814.42
CMSME 210.6 609.15 338.3 5808.16
Socially Responsible Financing (SRF)
(Financing in MFI/NGO Linkage Mode for capacity
building, Employment generation & self employment 379.87 5731.06 1659.32 3834.62
Working Capital & Demand loan of Green Products 34.78 0 0 0
Priority Green Products for Trading Sector 0.32 0 0 0
Grand Total 7904.38 16368.87 15677.88 90457.2

In-house Green Management customers to consider the full implications of their

choices. Sonali Bank PLC is integrating environmental
Sonali Bank PLC recognized the importance of providing risk assessment into its loan approval process. This
guidance to its employees and branches on adopting means that before granting loans, the bank evaluates
environmentally friendly practices. To facilitate this, the the potential environmental impacts of the projects
bank issued a "Green Office Guide" as part of Circular being funded or to be funded. By doing so, the bank
Letter-411 (Risk Management Department Circular aims to ensure that the projects it finances are safe and
Letter-03) dated September 23, 2012. This guide likely pose minimal risk to the environment. This proactive
contains detailed instructions and recommendations approach aligns with best practices in environmental risk
on how to minimize wastage and optimize the use of management and demonstrates the bank's commitment
resources within office premises. to sustainable development.

The circular instructed every office and branch to By combining transparency in marketing with
conduct an inventory assessment of water, paper, environmental considerations in loan approvals, Sonali
electricity, and fuel usage. This involves quantifying Bank PLC not only enhances customer satisfaction but
the current consumption levels of these resources. also contributes to environmental sustainability and
Subsequently, offices and branches were ordered to set responsible lending practices. This approach reflects a
limits on the consumption of each resource, presumably holistic understanding of corporate responsibility and
based on factors such as operational needs, efficiency long-term value creation.
targets, and environmental considerations.
Digital Banking
The directive issued through Circular Letter-411
mandates the implementation of the guidelines Sonali Bank has been progressively adopting digital
outlined in the "Green Office Guide" across all offices banking solutions to enhance its services and improve
and branches of Sonali Bank PLC. This ensures that customer experience. The bank has developed a mobile
environmental management practices are standardized banking application that allows customers to perform
and consistently applied throughout the organization. banking tasks through a smartphone. Sonali Bank likely
offers an online banking platform where customers can
Overall, Sonali Bank PLC's initiative demonstrates a access their accounts, check balances, view transaction
proactive approach to environmental stewardship and history, transfer funds between accounts, pay bills, and
sustainability. By implementing an in-house environmental perform other banking activities conveniently from
management system and providing clear guidelines for their computer or mobile device. Sonali Bank likely
resource usage, the bank aims to minimize waste, reduce maintains an extensive network of ATMs across the
environmental impact, and promote responsible resource country, enabling customers to withdraw cash, deposit
management across its operations. checks and cash, transfer funds, and perform other
basic transactions outside of traditional banking hours.
Green Marketing The bank may offer digital payment solutions such as
online bill payment, person-to-person (P2P) transfers, QR
By transparently presenting the advantages and code payments, and integration with popular payment
disadvantages of its products and services, Sonali gateways to facilitate seamless transactions for both retail
Bank PLC ensures that customers can make informed and business customers. There are more than six hundred
decisions. This not only builds trust with customers but (600) public and private organizations have signed MoU
also promotes responsible consumption by encouraging with Sonali Bank PLC for digital banking service.

182 ANNUAL REPORT 2023

Sonali Bank provide digital channels for customer To stay competitive in the rapidly evolving digital banking
support, such as live chat, email support, and a landscape, Sonali Bank may continue to invest in technological
comprehensive FAQ section on its website or mobile innovation, exploring opportunities such as artificial
app, to address customer inquiries and concerns related intelligence (AI), block chain, and biometric authentication to
to digital banking services. further enhance its digital banking offerings.

Table 3: achievement of digital bank of Sonali Bank PLC as on 31st December 2023

Number Number Number of Accounts No of Total No. of No. of ATM No. of ATMs
of Local of Online using Smartphone Accounts Branches Booths Powered by
Branches Branches App-based Banking Powered by Solar Energy
Solar Energy

1230 1230 599301 21418648 47 217 4

Staff Training, Creating Consumer Awareness, And other relevant guidelines. We develop Sector Specific
Green Banking Activities: In line with environmental Environmental Policies for different environmental
law, we are inspiring people to run their business and sensitive sectors such as agriculture, agro business
financial activities using the inventories properly and (poultry and dairy), agro farming, leather (tannery),
involving them to save the environment. Sonali Bank fishery, textile and apparels, renewable energy, pulp
Staff College is gradually organizing training sessions on and paper, sugar and distillery, construction and
green banking. housing, engineering and basic metals, chemicals
(fertilizers, pesticides and pharmaceuticals), rubber and
Publishing and Promoting Projects under taken: We plastic industry, hospital/clinic, chemical trading, brick
are reporting about our green banking activities to manufacturing, ship breaking, jute and jute goods etc.
Bangladesh Bank on quarterly basis in the prescribed We are developing tools for rating the business that
form of the Bangladesh Bank. are being well financed and properly monitored. Our
policy discourages financing red category or other
Developing Sector Specific Environmental Policy: environmentally hazard projects.
Sonali Bank PLC also follows Bangladesh Bank
Environmental Risk Management (ERM) guidelines, Social Impact of Sustainable Banking: With our material
Environmental Conservation Act- 1995 (ECA 1995), issues in mind, we have identified the SDGs that are
Environmental Conservation Rules (ECR 1997) and most relevant to our business and stakeholders.

Sustainable Developments GOAL:

Our Customers We show our customers that we are on their

side through service excellence, supporting
financial wellbeing, good customer outcomes
and advocacy, and digital innovation.

Our Community We are rebuilding trust and our reputation

by engaging proactively and openly with
government and regulators, investing in
communities and education, and rolemodelling
reconciliation.

Our People We motivate our people through leadership and

engagement, by promoting health, wellbeing,
diversity and inclusion, and by providing training
and career development.

Our Shareholder We deliver sustainable financial performance

through strong conduct, culture, governance,
accountability, remuneration and responsible
business practices.

ANNUAL REPORT 2023 183

SONALI BANK PLC

Employees and Talent Management: In order to be the best retail and commercial Bank for our customers, we have
to begin with our employees. If they feel proud of belonging to Sonali Bank and are more committed, they will be
able to earn the lasting loyalty of our customers. Sonali Bank PLC endeavors to attract and retain the best talent,
and wants its professionals to be motivated, committed and fairly paid. Sonali Bank employees share the corporate
culture focusing on fulfillment of its purpose, helping people and businesses prosper, and consistently doing things
in a simple, personal and fair way.

No. of Total Courses No. of Total Trainees

Year Sustainable Finance Sustainable Finance
Others Others
Related Related
2023 20 827 1107 70764

2022 28 571 952 52192

2021 3 332