Reports-Download: Performance Evaluation of Sonali Bank

CHAPTER ONE

INTRODUCTION

1.1. Introduction:

Economy is a complicated dynamic system of relationship between different agents of society where banks play a vital role to mobilize the economy. In a dynamic economy, the banking institutions make the monetary system more dynamic. Modern economic functions are meaningless and seedless without bank. To make the social system developed and dynamic no one can deny the role of bank by any means. Banks at as a financial intermediary to mobilize fund from the surplus to deficit economic units. Now a day’s banks play a vital role as leading financial intermediary to meet the growing needs of every economy.

After the emergence of Bangladesh, the banking system has expanded to a lot in the last three decades. Though many private commercial banks have been established, the major portion of banking business is covered by the four nationalized commercial banks such as: Sonali, Janata, Agrani, and Rupali Bank Ltd. In our country, Sonali Bank is treated as the leading banking institution after the Bangladesh Bank.

The National Bank of Pakistan, the bank of Bahawalpur Ltd and the Premier Bank Ltd. were jointly declared as Sonali Bank by the Presidential order in 1972. Now, Sonali Bank continues its operations with 1186(after closing) branches. Its head office is situated at Motijhel, Dhaka. Sonali Bank, Rajshahi Greater Road Branch started its operation in1973. It is situated in Laxmipur; this branch is headed by a senior principal officer and 32 employees. This is one of the busiest commercial Bank in Rajshahi town. This branch serves all types of loan facilities authorized by the head office except C. C (Pledged). The special feature of this branch is that it is declared as a special Collection branch by the head office, this branch provides credit to fisheries project, Poultry firm etc. It also provides small loans.

All the financial transactions of Sonali Bank, Rajshahi Greater Road Branch is performed by this branch. Moreover, it provides banking facilities to the local businessmen of Laxmipur area. As a special deposit collection branch it provides credit to more than 100 projects which involved: Fisheries, Poultry etc.. Besides all these facilities, this branch also provides the O. D facility to its customers. Moreover, it provides the locker facility to ensure the security of the valuables of its customers.

Sonali Bank, Rajshahi Greater Road Branch is headed by a senior principal officer who acts as a manager. There are two principal officers, five senior officers, eleven officers, six sub-accountants, others clerical and non-clerical employees work under branch manager. During my training at Sonali Bank, Rajshahi Greater Road Branch, I learnt about general banking procedure such as: Cash receipt and payment, Remittance, Demand Draft (DD), Mail transfer (MT), Telegraphic transfer (TT), statement of affairs, Loans and advances, Token issue etc. Though I have got an over all idea about banking. I have to focus on Branch performance up to year 2000 to 2004.

1.2. Objectives of Sonali Bank:

Sonali Bank has a various types of Objectives. Important objectives of Sonali Bank are as follows:

To collect of deposits
To secure deposit
To inspire savings
To control loan
To expand trade and commerce
To helps in industrialization
To increase the capital formation
To provide the customers service
To earn profit

1.3. Function of Sonali Bank:

Main functions of Sonali Bank are:-

Receiving of money on deposits
Conducting cash transaction of customers who have current accounts
Attending bills of exchange and drafts of customers.
Sanction of loan
Providing other services to the customers, e.g.
Transfer of money
Collection of receipts
Collecting interest, dividends, rents, pensions, etc.
Act as an advisor.

1.4. An Organizational Setup of Sonali Bank, Rajshahi Greater Road, Branch:

CHAPTER TWO

GENERAL BANKING

2.1. Location of this bank:

Sonali Bank, Greater Road Branch, Rajshahi is situated by the south side of Rajshahi Board and in front of Ex-Indian High Commissioner office. It is two storied building and it is in first floor.

2.2. Introduction:

General banking includes deposit service, local currency remittance, locker facility etc. It should be mentioned that cash management is also an important part of general banking. General banking in practice that I saw in the branch is discussed below:-

2.3. Types of Account:

Accounts department is the most important functional area of this branch. The following types of accounts are maintained in this bank:

Fixed deposits A/C
Short term deposits A/C
Deposit pension scheme (DPS) A/C
Sonali Bank special deposit & pension scheme A/C
Savings deposits A/C
Current deposits A/C Call deposits A/C and
Sundry deposit Accounts.

2.3.1. Fixed deposit A/C:

This account is opened for a fixed period of time this type of account is very popular to the fixed income earners. Sonali Bank, Greater Road Branch, Rajshahi maintains different terms of this deposit and interest rate varies with the variation of term. The minimum term is 3 months. The branch maintains fixed deposit account for maximum term of 5 years. A fixed deposit account holder has to deposit his money with the bank at a time and the amount of deposit is drawn at the maturity of the account. But in case of emergency a fixed deposit A/C holder can withdraw his money before maturity. Interest rate on this account varies according to term of deposit. Sonali Bank, Rajshahi medical college hospital Branch, pays the following interest rates on Fixed deposit A/C:

Duration	Rate of interest
1 months or more but less than 3 months	5.25%
3 months or more but less than 6 months	5.50 %
6 months or more but less than 1 year	6.00 %
1 Year or more but less than 2 year	6.25 %
2 Years or more but Maximum 5 year	6.25 %

Source: Central Accounting & Fund management department. Date: 20-04-03.

2.3.2. Short term deposit A/C:

This item includes the deposit which are deposited for a of period ranging 7 days to 89 days. These types of liabilities are payable by a special notice or after specified period. Some of these types of deposited are of nature of time deposited. Its interest rate is 3%.

2.3.3. Deposit pension scheme (DPS):

Deposit pension scheme is a nature of time deposit and it was introduced in 1983. According to this scheme the investor was required to deposit a fixed amount of money per month Tk 100/-, TK 200/-, TK 500/- for a period of 10 years and 20 years. Interest on the invested amount is compounded at the rate of 15% and calculated on yearly basis. At present bank has stopped to take such types of deposits by the Bangladesh Bank on the 28th February, 1999.

2.3.4. Sonali Bank Special Deposit & Pension Scheme (SDPS) A/C:

It was started from 1996. The term of Sonali Bank special deposit & pension scheme is 5 year and 10 years. The Bank pays interest at the rate of 10% per annum on SDPS of 5 years, 12% per annum on SDPS of 10 years.

2.3.5. Savings Deposits Account:

Normally Savings Account is used by individual or service oriented organization. In this account, a depositor can deposit money as many times he/she wants. But the account holder can not withdraw his deposited money frequently. In this case he has to follow some stipulated rules and regulations. The Bank pays 3.5% interest on savings deposit.

2.3.6. Current Deposits Account:

This account is used by the persons or institutions that need frequent deposit or withdraw money. The depositors of this A/C can deposit or withdraw money more than one time as they need in a working day. Normally current A/C is used by the businessmen. No interest is paid on this Account. Two types of current A/C are maintained by the branch i.e. personal and institutional.

2.3.7. Call Deposits A/C:

Tender money is deposited in this account. In order to participate in tender invited by any private or public institution, the participants have to deposit a particular amount of money as security. It is called tender money. The tender inviting institution receives tender money under this account through bank. The deposited amount in this account remains up to opening of tender. After opening of tender, the tender inviting institution can withdraw fund from this account, at any time. The bank pays no interest on this account.

2.3.8 Sundry Deposit Account:

This account is also called special purpose deposit account. The following items are deposited in this account:

Employees contributory provident fund
Employee’s general provident fund
Sonali Bank employee’s pension fund
Sonali Bank employee’s pension and death cum-retirement benefit fund.

2.4. Account Opening:

We have gathered practical knowledge about opening of bank accounts. Various types of bank accounts are opened with the Sonali Bank greater road branch, Rajshahi. We were taught how a current deposit (CD) A/C, savings deposit (SD) A/C are opened.

2.4.1. Procedures of opening a CD A/C:

To open a current deposit A/C, an individual has to carryout the following procedures-

Obtain a prescribed application form from the bank
Submit the duly completed form with necessary papers to the concerned officer.
Face a brief interview
Put specimen signature in the signature card supplied by the bank.
Deposit of money
Get counter folio of the payment slip.
Once these formalities are carried out in appropriate manner, an account number is posted against the application. Then a check book is issued in favor of the applicant and he is considered as a valid account holder of the bank.
With the prescribed application form, the applicant should submit the following papers and information’s.
Nationality certificate from the appropriate authority.
Two copies of recent passport size photographs.
If the applicant is a service holder he should collect employee certificate from his employer and is to be submitted.
The applicant’s signature should be identified by an introducer who has a CD A/C with the respective branch.
The applicant should deposit minimum taka 100/- to open an account.

2.4.2. In case of joint account, the applicant must furnish the following information and papers:

Name of the parties who will operate the account and sign the checks.
At the event of death either or any of the account holders how the balance will be paid and to whom the securities (if any) will be delivered. The documentary requirements are almost the same as individual accounts. Account opening form and the special instructions must be signed by all the joint account holders to signify their consent.
If the client is a partnership company the company has to submit partnership deed to the bank.
If the applicant is a sole proprietorship business, the client has to submit trade license collected from the appropriate authority & seal of the institution.
If the client is a private or public limited company, the company has to submit Memorandum of Association (MOA), Article of Association (AOA) and other necessary documents. Name and specimen signature of the people who are authorized to open and operate the account and the source of their authority.

2.4.3. Procedures of Opening a Savings Deposit (SD) A/C:

The procedures of opening a SD A/C are almost same as the CD A/C. Some of the rules and regulations regarding to operate a SD A/C are mentioned below:-

Only savings account holder or a CD account holder of the respective branch can be introducer of the applicant of opening SD A/C.
Two copies of recent passport size photographs of the applicant should be attested by the introducer. In this case the introducer will mention his/her account number.
The applicant should deposit Tk. 100 is required to open this account.

If the client is private or public limited company, the people authorized to open and operate the account should put joint signature where it is necessary.

2.5. Closing an Account:

During the study work we were taught how to close a bank account before maturity. In order to close an account before maturity the holder has to place a written application to the bank. After receiving the application the bank will deduct service charge at an amount necessary for the respective account as closing fee from the balance and rest of the money is given to the account holder.

2.6. When bank closes an Account:

The relationship between bank and his customer is a contractual one and may be terminated by either of them. Bank closes an account in the following situations:-

If a customer places written application to the bank to close his account.
If the customer does not properly follow the rules and regulations necessary to operate his account.
If the bank is notified the message of death of a customer.
If the bank receives a notice regarding the insanity of his customer.
If the bank receives a garnishee order from court.
Others.

2.7. General Banking Functions of Cash Department:

Cash department is another important functional area of this branch of Sonali Bank.

2.8. Cash Payment:

In this section I gathered practical experience about how a check is honored and how cash is paid. The formalities involved in check honor and cash payment are stated below:-

Presenting the check: If any A/C holder would like to draw money from his A/C he at first has to issue a check supplied by the respective bank. Then he has to present the check to the concerned officer after duly signed.
Token Issue: After receiving the check, the officer examines the followings-

Account number of customer
Issuing date of check
Amount of money mentioned in the check.
Amount position/balance position of the customer.
Whether the customer has signed behind the check or not.
After that, the officer enters the amount of money, token number, and account number in the daily transaction register. The register is usually called day book. Then, the token is issued & given to the customer. The number indicated in the token is written behind the check.

Verifying the check: At this stage, the check is sent to the principal officer (second officer) to verify it. To examine the validity of the check, the second officer compares the customers signatures given on the check with that on the signature card kept in his custody.
Honoring the check: If all the factors are satisfactory, the check is honored by the second officer.
Check cancellation: At this stage, the officer signs across the check to pay the money.
Drawing money: After the check is signed by the second officer, the customer returns the token to the cash payment section and draws his money.

For convenience, the cash payment procedure (Check honoring) of Sonali Bank, Greater Road Branch, Rajshahi is illustrated by the following chart-

EXHIBIT: The cash payment procedure of Sonali Bank, Greater Road Branch, Rajshahi.

2.9. Cash Receipt:

Customer’s deposits are received in this section of bank. Then the amount received is credited to the customer’s A/C in the ledger book. The formalities that are followed to receive a customer’s deposit (cash) in the cash receipt section are stated in the following flow chart-

2.10. Check Dishonored by Bank:

During the internship program, I was taught how a check is dishonored by bank. The statutory duty of a bank is to honor his customer’s check. But a bank can dishonor a check for various reasons. Some of the reasons for that a bank dishonors his customer’s check are stated below-

If the customer’s account position is not okay, that is if the amount of money mentioned in the check is greater than customer’s deposit.
If the check is torn.
If the check is post dated or a stolen checks.
If the customer’s signature given on the check is a forged one or does not tally with his specimen signature kept in bank custody.
If the check is not submitted to the customer within banking hour.
If the duration of issuing the check is more than 6 months
Others.

2.11. Profit and Loss Ledger:

In this ledger banks all incomes and expenditures are shown separately. It is prepared at yearly basis. Sonali Bank, Greater Road Branch, Rajshahi prepares its profit and loss ledger at the date of 31st December of every year.

2.12. Statement of Affairs:

The branch prepares a statement of affairs and sends it to the head office weekly. This statement including the assets and liabilities of a bank. The statement is prepared from cash book cum-general ledger. After supplementary balancing, the figures are posted in cash book-cum-general ledger. After posting closing balance of each head of account is drawn in order to have a clear-cut view of the daily financial position of the branch. The closing balances of various heads of account are incorporated in the statement of Affairs.

2.13. Check Clearing Through Clearing House:

A clearing house is an institution of credit where reciprocal liabilities of local banks are counter-balanced against each other. Clearing Houses provide mechanism for clearing transactions among banks. It involves offsetting reciprocal claims against each bank and setting such balances of differences remains outstanding.

Clearing is usually done twice a day; the first at 9.30 a.m. and the second at 2.30 p.m. At the time of first clearing, officer/clerk delivers checks and claims. At the second, clearing members confirm each other payment or nonpayment. The members of clearing house maintain accounts with the Bangladesh Bank, through which the amount payable or receivable is usually settled.

2.14. Remittance:

The system of transmitting or sending money from one branch to another branch of the same bank or from one bank to another bank within a country or outside the country is known as remittance. It is one of the important functional areas of a bank. A bank can earn handsome fees as commission from the dealings of money remittance. During my internship program I have gathered practical experience about how money is remitted from one branch to another branch of a bank or from one bank to another bank.

2.15. Types of Remittance:

Remittance can be of two types, i.e. A) Inland Remittance B) Foreign Remittance.

A) Inland Remittance:

When money is remitted within a country through proper banking channel, it is termed as inland remittance. Sonali Bank, Rajshahi medical college hospital Branch deals a lot of inland remittance at every working day.

a. Modes of Inland Remittance:

1) Demand Draft (DD): DD is the most widely used instrument of remitting fund. It is order to pay money drawn by one branch of a bank upon another branch of same bank for a particular amount of money that is payable to order and demand.

2) Procedures of remitting money through DD:

The procedures of remitting money through DD are stated briefly in below-
At first, the sender of money is advised to fill up a form and deposit the cash. The form is usually called DD application form or credit voucher.
The senders of money fills up the voucher appropriately and place it with cash before the officer at cash receipt section.
After receiving the voucher and cash, the officer counts the money and charges a fee as commission. Here it is mentionable that the commission for DD up to tk 10,000 is Tk. 10 for per 1000 and Tk. 1 for every thousand above Tk. 10,000.
After that, the voucher is sent to the concerned officer of remittance section.
Here the officer prepares a paper instrument called “Demand Draft (DD)” and enters the amount in the draft issue register.
Draft book and DD along with the register are then sent to the officer in charge for checking. If every thing is Okayed, the officer signs the DD and voucher and keeps the register and counter foil of the DD.
After that the DD is issued to the sender of money. At this stage he can send the DD to the receiver branch by post or any other ways,
After issuing the DD and handing over it to the sender of money, the DD issuing branch sends an advice to the receiver branch about DD.
Finally, the DD receiver branch makes payment to the bearer of DD. i.e. payee after completing the necessary formalities.

3) Mail Transfer (MT): MT is another widely used instrument of remitting fund from one branch of a bank to another branch of the same bank. It is not used to remit fund from one bank to another. MT is nearly same as DD.

4) Procedures of Remitting money through MT:

The procedures of remitting money through MT are almost same as the procedures of remitting fund through DD. But there are some exceptions in this system”-

In case of MT, the sender of money is not provided with the MT paper but a receipt. The branch sends the MT paper under its own responsibility by mail to the MT receiving branch.
The commission for MT up to Tk. 10 for per 1000 and Tk 1 for every thousand above Tk 10,000.
The postal charge is Tk 10 for every MT issue and any amount of money.
The MT issuing branch has to send a secret message i.e. Test to the MT receiving branch. It is must for any amount of money. Here the amount of money, issuing date and other particulates are mentioned.
To maintain the secrecy of the message sent, the issuing branch codes the message by a particular number consisting of different digits. After receiving the message, the paying branch decodes it by using the predetermined techniques. This process is called test. If every thing is Okayed, the paying branch makes payment to the payee.

5) Telegraphic Transfer (TT): TT is the fastest means of remitting fund between two branches of the same bank. Fund can not be remitted from one bank to another bank through TT.

6) Procedures of remitting money through TT: The primary formalities that have to be maintained to remit money through TT are same as DD and MT.

The commission for MT up to Tk. 10,000 is Tk 10 per TK 1000 and Tk 1 for every thousand above Tk 10,000.
Here a fee of Tk 20 is charged as telegraphic charge for every TT issue and for any amount of money.
In case of TT, no paper instrument is sent to the paying branch. Rather the TT issuing branch sends a TT advice through telephone, telegraph, Fax or telex to the paying branch. In sending message, the branch keeps necessary secrecy.
Side by side, the TT issuing branch sends an advice to the head office of the bank.
After receiving the message, the paying branch tests to decode the message. If every thing is obeyed, then the branch makes payment to the payee. After that the branch sends an advice to the head office to reconcile the accounts of both branches.
In case of TT, test is must for every issue and for any amount of money.

B) Foreign Remittance:

The procedure to transfer money from one country to another country through bank or other govt. authorized agencies is called foreign remittance. The Sonali Bank, Greater Road Branch, Rajshahi does not provide foreign remittance facility to its customer directly.

2.16. Customer Services:

Sonali Bank, Greater Road Branch, Rajshahi offers the following customers facilities:

CHAPTER THREE

DEPOSIT BEHAVIOR

3.1. Introduction:

A commercial bank acts as a financial intermediary in an economy. The main two tasks of a commercial bank’s are to collect deposit at lower interest rate and to provide loan as vital role in the development of an economy through mobilizing deposits. Because bank collect idle savings of people and turns it to investment. By this way bank becomes benefited and the national economy of the country becomes enriched. Side by side, people becomes able to keep their money safely in a bank and receive interest from it. Bangladesh is a developing country of the third world. Commercial banks of all over the country largely contribute to develop our economy. Without the help of commercial banks, it is not possible to collect sufficient capital for national capital formation of our country.

3.2. Types of Deposit by Sonali Bank, Rajshahi Greater Road Branch:

Deposit is considered as lifeblood of a bank. No bank can run without deposit. A bank has to collect deposits from various sources in order to operate its activities successfully as well as to satisfy the national objectives. As a branch of nationalized commercial bank, Sonali Bank, Rajshahi Greater Road Branch the tries to satisfy the above mentioned objectives. The branch has deposits of the following types:

Fixed Deposits
Short Term Deposits (STD)
Deposit Pension Scheme (DPS)
Sonali Bank Special Deposits & Pension Scheme(SDPS)
Saving Deposits
Currents Deposits
Call Deposits
Sundry Deposits

A brief Discussion on Various Types of Deposit by the Branch is given below:

3.2.1. Fixed Deposit:

Fixed deposit is very popular to fixed income earners. A depositor has to deposit money with bank at a time. The deposited amount is drawn at the end of maturity of the contract. But in case of emergency a depositor can withdraw money before maturity. The interest rate on fixed deposit varies according to the duration of deposits.

Characteristics of Fixed Deposit:

Fixed deposit may be of different terms.
The bank issues a receipt rather than check to the depositor. The receipt is called fixed deposit receipt (FDR).
FDR is the most transferable.
FDR can be used as security against loan.
Interest rate on fixed deposit is usually higher than other deposit.
Bank can invest fixed deposits for the long term.
Fixed deposit is the suitable for retired person, Insurance holder.

3.2.2. Short Term Deposit:

This item includes the deposits which are deposited for a period 7 days to 89 days. These types of liabilities are payable by a special notice or after specified period. Some of these types of deposits are the nature of time deposits. Its interest rate is 3%.

3.2.3. Deposit Pension Scheme (DPS):

It is a government program. Government of Bangladesh started the program in 1983. DPS was fully stopped in 1994 by the Bangladesh bank circular. Here the deposit limit is tk.100 to tk.500 for a period of 10yrs and 20yrs.Interest on the invested amount will be compound at the rate 15% and calculated on yearly basis.

3.2.4. Sonali Bank Special Deposit and pension Scheme (SDPS):

Now the days Sonali Bank offer a Deposit pension scheme named Sonali Bank Deposit and pension scheme (SDPS) started from 1996. Generally service holder operates this account. Interest rate of SDPS is: 5 years10%, 10 years12%.It also have been stopped in the year 2000.

3.2.5. Savings Deposit:

Generally individuals or service oriented organization use savings deposit. This type of depositor can deposit money as much time as he or she wants in a working day. But he can not withdraw his or her deposited amount frequently.

Characteristics of Saving Deposit:

Banks pays 3.5% interest on savings deposit
Minimum Tk. 100/- is required for initial deposit.
Savings deposit is suitable for service holder person of middle level income, students, Teachers, Laborers etc.

3.2.6. Current Deposit:

The persons or institutions which need frequently to deposit or withdraw money are the users of current deposit. Generally businessmen use current deposit. This type of depositor can deposit or withdraw money as much time as he needs in a working day without giving any notice to the bank.

Characteristics of Current Deposit:

No interest is paid on current deposit
Initial amount of current deposit has to be deposited in bank tk.1000.
Bank can not invest current deposit. Because bank has to pay the deposited amount on demand.
This type of deposit is suitable for businessmen, industrialists, government, non-government and autonomous body.

3.2.7. Call Deposit:

Bank mobilizes tender or earnest money as call deposit. Bank pays no interest on call deposit.

3.2.8. Sundry Deposit:

Sundry deposit is also called special purpose deposit. Sundry deposit includes the followings:-

Margin on Letter of Credit
Margin on Letters of Guarantee
Hajj Deposits
Employee’s Contributory Provident Fund
Employee’s General Provident Fund
Sonali Bank Employee’s Pension Fund
Sonali Bank Employee’s Pension and Death Cum-Retirement Benefit Fund.
Miscellaneous.
Sundry deposit remains in Bank for a short period.

3.3. Interest rate of deposit:

The following table shows the various interest rates on deposit:

Table-3.1: The various interest rates on deposit.

S.L. No	Particular	Interest rate
1.	Savings deposit	3.50%
2.	Short term deposit	3.00%
3.	Fixed deposit: a) 3 months or more but less than 6 months b) 6 months or more but less than 1 year c) 1 year or more but less than 2 years d) 2 years or more but maximum 5 years	5.25% 5.50% 6.00% 6.25%
4.	D.P.S.	15.00%
5.	S.D.P.S: a) 5 years term b) 10 years term	10.00% 12.00%
6.	Agriculture loan: a) Crops loan b) Others agriculture loan c) B.R.D.B/U.CC.A d) Small loan e) Others	11.00% 11.00% 6.25%-11.00% 6.25%-12.00% 5.00%-16.00%
7.	Current capital loan	13.00%
8.	Staff loan: a) Staff house building loan b) Staff motor cycle loan c) Staff by-cycle loan d) Loan against provident fund	5.00% and Bank Rate Bank Rate Bank Rate 6.50%

Source: - Central Accounting and Fund management department. Date 20-04-04.

3.4. Deposit Mix Position in the year of 2004:

The deposit mixed position of Sonali Bank; Rajshahi Greater Road Branch in the year of 2004 is shown in the table below-

Table-3.2: Deposit Mix Position of Sonali Bank, Rajshahi Greater Road Branch on 31.12.2004.

Name of Deposit	Amount (Tk. in lakh)	% of total amount
Fixed deposit	4889.72	70.60%
Short term deposit	398.90	5.76%
Deposit pension scheme	19.45	0.28%
Sonali Bank special deposit & pension scheme	298.79	13.72%
Savings deposit	1027.89	14.84%
Current deposit	278.60	4.02%
Call deposit	12.84	0.18%
Total deposit	6926.19	100%

Source: - Statement of Affairs of Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

From above table and pie-chart we see that the high amount of deposit among various types of deposits mobilized by the branch in the year of 2004 is fixed deposit which is 70.60%. On the other hand, the branch mobilizes the lowest amount of deposit in call deposit i.e. only 0.18%of total deposits. Savings deposit account places the second highest position in deposit by the branch.

3.5. Trend of Total deposit:

Here I have tried to identify a trend of total deposit of the branch. I have considered the data given in the table below:

Table-3.3: Total deposit of Sonali Bank, Rajshahi Greater Road Branch from 01-01-2000 to 31-12-2004.

Year	Total Amount of Deposits (Tk. in lakh)
2000	5097.66
2001	5940.31
2002	7231.41
2003	7344.96
2004	6926.19

Source: Statement of Affairs Sonali Bank, Greater Road Branch, Rajshahi.

3.6. Deposit Position of Fixed Deposit Account:

The following table shows deposit position of fixed deposit (FD) account from 01.01.2000 to 31.12.2004.

Table-3.4: Deposit position of fixed deposit account of Sonali Bank, Rajshahi Greater Road Branch from 01.01.2000 to 31.12.2004

Year	Amount of deposit (Tk. in lakh)	Percentage change in deposit
2000	3864.99	-
2001	4533.35	17.29%
2002	5855.02	29.15%
2003	5669.81	-3.16%
2004	4889.72	-13.76%

Source: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:
Here it is observed that the amount of fixed deposit in the year 2001 and 2002 increased by 17.29% and 29.15% percentage. But the rate of increasing the year 2002 was higher than that of previous years. In the year 2003 and 2004 the fixed deposit decreased by 3.16% and 13.76.

3.7. Deposit position of short term deposit (STD) Account:

The deposit position of STD account of the branch from year 01.01.2000 to 31.12.2004 is shown in the following table:

Table-3.5: Deposit position of short term deposit account of Sonali Bank, Rajshahi Greater Road Branch from 01.01.2000 to 31.12.2004

Year	Amount of deposit (Tk. in lakh)	Percentage change in deposit
2000	3.35
2001	0.40	-88.06%
2002	51.48	12770.00%
2003	10.35	-79.90%
2004	398.90	3754.11%

Source: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

If we observe the above table and graph we see that in the year 2001 the amount of STD deposit of the branch was decreased by 88.06% in comparison to that of the year 2000. In the year 2002 the amount of STD deposit of the branch was increased by higher percentage 12770.00% in comparison to that of the year 2001. But there was a very significant increase in collecting STD deposit in the year 2002 and 2004. In the year 2004 the amount of STD deposits was increased by large amount of Tk. 398.90 lakh.

3.8. Deposit position of deposit pension scheme (DPS):

The deposit position of DPS of the branch from 01.01.2000 to 31.12.2004 is shown in the following table:

Table-3.6: Deposit position of DPS of Sonali Bank, Rajshahi Greater Road Branch from the year 01.01.2000 to 31.12.2004

Year	Amount of deposit (Tk. in lakh)	Percentage change in deposits
2000	143.12	--
2001	156.84	9.59%
2002	167.67	6.91%
2003	55.25	-67.05%
2004	19.45	-64.80%

Source: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

Here we see that the deposit under DPS account was increased from 2000-2002. It is observed that the amount of deposit under DPS account was decreased in the year 2003 and 2004. Maximum decrease happened in the year 2003 and it is 67.05%.

3.9. Deposit position of Sonali Bank special deposits & pension scheme:

The deposit position of SDPS account of the branch from 01.01.2000 to 31.12.2004 is shown in the following table:-

Table-3.7: Deposit position of SDPS of Sonali Bank, Rajshahi Greater Road Branch from 01.01.2000 to 31.12.2004

Year	Amount of deposit (Tk. in lakh)	Percentage change in deposits
2000	88.24	_
2001	130.43	47.81%
2002	170.83	20.25%
2003	243.04	42.27%
2004	298.79	38.98%

Source: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

From the above table and figure we see that in the year of 2001 there was a significant improvement in mobilizing deposits of SDPS account in comparison to the year of 2000. The amount of deposits was increased in the year 2002. Again the deposit was increased in the year 2003. But the maximum increment happened in the year 2001 which was 47.81%.

3.10. Deposit position of savings deposit account:

The deposit position of savings deposit account of the branch from 01.01.2000 to 31.12.2004 is shown in the following table:-

Table-3.8: Deposit position of Savings Deposit Account of Sonali Bank, Rajshahi Greater Road Branch from 01.01.2000 to 31.12.2004

Year	Amount of deposit (Tk. in lakh)	Percentage change in deposits
2000	509.41	-
2001	572.64	12.41 %
2002	513.34	-10.36%
2003	1125.85	119.32%
2004	1027.89	-08.70 %

Source: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

Here we see that in the year 2001 the branch became able to increase the amount of saving deposit by 12.41% in comparison to deposit position of the other years. The amount of deposit was decreased by 10.36% in comparison to deposit position of the year 2001. But especially in the year 2003 the amount of savings deposit has been increased by 119.32% in comparison to deposit position of the other years. There is a significant increase in savings deposit mobilization of the branch.

3.11. Deposit position of current account:

The deposit position of current account of the branch from 01.01.2000 to 31.12.2004 is shown in the following table:-

Table-3.9: Deposit position of current account of Sonali Bank, Rajshahi Greater Road Branch from 01.01.2000 to 31.12.2004

Year	Amount of deposit (Tk. in lakh)	Percentage change in deposits
2000	107.15	-
2001	133.17	24.28%
2002	58.28	-56.24 %
2003	233.55	300.74 %)
2004	278.60	19.29 %

Source: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

From the above table and figure we see that in the year 2002 the amount of current deposit was decreased by 56.24% in comparison to the deposit position of the year 2000. But in the year 2003 the amount of current deposit was increased by 300.74% in comparison to the deposit position of the year 2002. The amount of current deposit in the year 2004 has been increased by 19.29% in comparison to deposit position of the year 2003.

3.12. Deposit position of call deposit account:

The deposit position of call deposit account of the branch from 01.01.2000 to 31.12.2004 is shown in the following table:-

Table-3.10: Deposit position of call deposit account of Sonali Bank, Rajshahi Greater Road Branch from 01.01.2000 to 31.12.2004

Year	Amount of deposit (Tk. in lakh)	Percentage change in deposits
2000	23.56	-
2001	30.33	28.74 %
2002	7.31	-76.56 %)
2003	7.11	-2.74 %)
2004	12.48	80.59 %

Source: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

We have observed that the amount of call deposit in the year 2004 had been increased by greater percentage than that of the year 2003. Again in the year 2001 amount of call deposit was increased by 28.74% in comparison to the deposit position of the year 2000 and after the year 2001 the amount of call deposit was decreased by a significant percentage. In the year 2002 the amount of call deposit was decreased by 76.56% in comparison to the deposit position of the year 2001.

CHAPTER FOUR

LOAN AND ADVANCES

4.1. Introduction:

By far the largest assets item of a bank is loans which generally half to almost three quarters of the total value of all bank assets.

4.2. Objectives of the Loan:

The goal of a commercial bank is to earn profit so the objective of loan of Sonali Bank Greater Road Branch to earn profit. But Sonali Bank is a Govt. bank. That is why economic development is the main objective of this bank loan.

4.3. Sources of Lonable Fund:

This bank collect deposits from people and various organizations at a certain rate of interest payable to them and lend this money to people at certain rate of interest, more than the rate of collecting money.

The main source of Banks loanable fund is deposit, International Financial Institutions (such as IDAJFDC) grant and Govt. grant are the other source of banks loanable fund.

4.4. Types of the Loan:

Loan means lending money to someone on trust. The Sonali Bank Greater Road branch supplies the following kinds of loan to the customers.

i) Cash credit:

A cash credit is a fluctuation account and is operated in the same way as a current account on which an overdraft has been sanctioned under this system the banker specification a limit called the cash credit limit for each customer up to borrow against the security of tangible assets or guarantee. The interest rate is 15% for cash credit.

ii) Overdraft:

In case of advances sanctioned by way of our draft the customer sanctioned a limit unto which he can over draw his current account within a stipulated period. This is a fluctuating account where the balance sometimes may be debit and sometimes may be credit overdraft may be of the following three types:

a) Temporary overdraft.

b) Clean overdraft.

c) Secured overdraft.

But this branch does not allow any temporary and clean overdraft. Only secured overdraft is available here into two following categories:

1. Overdraft against work order.

2. Over order against security paper.

Table-4.1: Papers and its interest.

Name of security	Interest rate
Savings certificate	15%
FDR	15%
Insurance policy	15%
DPS	17%
SDPS(10years)	14.5%
SDPS(5years)	12.5%

iii) Industrial loan:

This branch disburses some industrial credit function. Like working capital of industries (Pledge, Hypothecation).

iv) Staff loan:

When the bank lends its money to its staff then it is called staff loan. The following types of loan are supply to the staff:

a. House building loan.

b. Loan against provident fund.

c. Loan for motor cycle and bicycle.

4.5. Judgment of loan policy:

At the time of lending, bank judges the customer's credit worthiness. Bank collects information from various sources for the security of credit information which is very essential for unsecured loan. Bank can collect information from the following sources:

(1) Loan application form:

From the application form bank seeks information about

> Customer business experience.

> Amount of assets and liabilities.

> History of business.

> Name of the banker.

> Amount of advance sought.

> Period of advance.

> Source of repayment.

(2) Ownership and changes there in.

(3) Analysis of Financial statement.

(4) Analysis of past Transaction mad with the Bank.

(5) Credit Information Bureau Report (CIB Report)

(6) Other bank.

(7) Personal interview.

After collecting information, bank analyses this information and assess as the acceptability of credit of the applicant.

For the secured loan, bank gives priority to the security that has the followings features:

>Marketability of the security.

> Price stability.

> Consistency.

> Durability.

> Possession of the property.

But for the unsecured loan bank assess the credit worthiness of the borrower. Credit worthiness of a person is judged by the banker on the basis of the following:

Character.

Capital.

Capacity.

Creditworthiness

Colatral

Resource.

Responsibility.

Reliability.

Return

The conditions, which are maintained in the branch for issuing loans are:

> Name and address of the borrower.

> Nature of debt.

> Amount of debt.

>Primary deposit.

> Term of loan.

> Margin.

> Interest rate.

> Special condition.

The instrument which are necessary for issuing debt:

> Letter of continuity.

> Letter of arrangement.

> Letter of disbursement.

> Letter of hypothecation.

> Statement of monitoring signed by manager.

> Memorandum of deposit title dead.

> Power of attorney in case of failure to repay debt.

> Guarantee of owner of property.

> A passport size photograph.

4.6. Security:

i) Types of security

Types of security can be shown in the following way:

ii) Banker precautions in accepting securities in the time of accepting securities banks observe closely the following things:

(1) Marketability of the security.

(2) Transferability of the security.

(3) stability of the price.

(4) Absence of liability.

(5) Sufficient margin.

(6) Clear title.

(7) Acceptability.

(8) Financial soundness.

(9) Profits.

The legal advisor of the banks judges the legal side of immovable security and concludes that whether it is acceptable or not.

(iii) Process to claim on the security:

The banker should determine in which security paper will be accept the security may be charged any of the following ways:

a) Lien:

Lien is the right of a person is the possession of goods to retain them until debts due to him have been satisfied. Lien can be classified in two categories.

>Particular lien: A particular hen is a right to retain goods in respect of which the debt arises.

>General lien: A general hen arises out of the general dealings between two parties and covers any property that one partly may be holding for the other.

b) Pledge:

A pledge is a contract where by an article is deposited with a lender or' a promise as security for the repayment of a loan or performance of a promise. To complete a contract of pledge delivery of goods to the banker is necessary. That is goods must be movable.

c) Hypothecation:

Hypothecation means creating some claim in goods or related documents without transferring their Possession to the ownership related documents is passed to the creditor but the possession. Thus it is a reverse process of pledge.

4.7. Loan ledger:

Bank maintains separate loan ledger for each loan. For the different types of loan, loan ledgers are different. The debt balances of loan always shown by the red ink.

Here we represent past data with graph about advance, classified loan and its recovery of Sonali bank of Greater Road branch;

Table-4.2: The position of loan and advance of Sonali Bank, Greater Road Branch, Rajshahi.

Year	Amount (Tk. in lakh)
2000	391.19
2001	422.44
2002	418.29
2003	471.39
2004	457.84

Source: CC Ledger from Sonali Bank Greater Road Branch

Table-4.3: The position of classified loan Sonali Bank, Greater Road Branch, Rajshahi.

Year	Amount (Tk. in lakh)
2000	41.07
2001	39.84
2002	37.00
2003	32.00
2004	28.25

Source: CC Ledger from Sonali Bank, Greater Road Branch, Rajshahi.

Table-4.4: The position of recovery from classified loan of Sonali Bank, Greater Road Branch, Rajshahi.

Year	Amount (Tk. in lakh)
2000	16.58
2001	24.19
2002	22.73
2003	28.69
2004	25.31

Source: CC Ledger from Sonali Bank, Greater Road Branch, Rajshahi.

CHAPTER FIVE

EVALUATION OF THE BRANCH PERFORMANCE

(FROM 2000-2004)

5.1. Introduction:

Here I try to evaluate the performance of this branch with the help of previous data of DEPOSITS, LOAN & ADVANCES, RECOVERY OF LOANS & ADVANCES AND PROFIT.

Sonali Bank, Greater Road Branch, Rajshahi.

Table-5.1: Growth rate of total deposits during 2000-2004.

Year	Total deposit (Tk. in lakh)	Amount change (Tk. in lakh)	% of change
2000	5097.66	-	-
2001	5940.31	842.65	16.53
2002	7231.41	1291.10	21.73
2003	7344.96	113.55	1.57
2004	6926.19	-418.77	-5.70

Sources: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

Table-5.1 and Figure-5.1 indicates an increasing trend of total deposits collection for the year 2000-2003. From the above Table and Figure we see that in 2001, 2002 and 2003 percentage change of deposits collection is upward but in 2004 it is decreased when ever the total deposits increases than the preceding year.

5.2. Loans and Advance:

Since establishment when ever the branch was established different types of advances such as demand loan, over drafts, cash credit etc. The amount that is pay out by this branch in different forms is mentioned in the following table:

Table-5.2: Year with loan disbursement of Sonali Bank, Greater Road Branch, during 2000-2004 (Tk. in lakh)

Types of loans	Years
Types of loans	2000	2001	2002	2003	2004
Cash credit	45.99	42.02	29.28	20.72	24.99
Small loan	9.35	8.43	4.95	3.62	1.79
Over draft	65.93	72.33	79.13	76.34	58.99
RCD	19.88	17.68	16.91	33	22.56
NORAD	0.20	0.20	0.20	0.20	0.20
SBICS	6.80	6.83	.34	.31	0.48
House building loan general (HBLG)	4.27	3.24	2.95	1.94	1.28
HBL staff	122.15	150.08	172.88	242.35	247.81
Other staff loan	116.62	121.63	111.65	110.23	34.28
Consumer loan	-	-	-	2.35	18.60
Small farming	-	-	-	-	5.44
Vill. small farming	-	-	-	-	1.42
Total	391.19	422.44	418.29	471.39	457.84

Sources: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Table-5.3: Growth rate of total loans and advance during 2000-2004

(Tk. in lakh)

Year	Total	Amount change	% of change
2000	391.19	-	-
2001	422.44	31.25	7.99
2002	418.29	-4.22	-0.98
2003	471.39	53.10	12.69
2004	457.84	-13.55	-2.87

Sources: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

Table-5.2 and Table-5.3 and Figure-5.2 show an upward trend in disbursement of loans and advances for the year 2000-004. In the year 2002 and 2003 had a little bit decrease in the percentage change of loans and advances than the previous year. Here we see that in the year 2004 other staff loans were decreased by 68.90%.

5.3. Recovery of loans and advances:

Appropriate employment of loan is the precondition of recovery of loan. But there is no specific target for loan recovery of this branch. But always there is a big gap between the amount of total classified loan and recovery of loans. Now this becomes a normal situation for them.

Table-5.4: Year wise recovery position from 2000-2004 (Tk. in lakh)

Types loan	Years
Types loan	2000	2001	2002	2003	2004
Consumer credit	-	-	-	-	4.38
RCD	5.67	3.41	7.35	5.70	3.93
House building loan general (HBLG)	1.51	0.70	0.84	0.84	0.84
House building loan staff	9.38	10.88	14.51	14.95	15.31
SBICS	0.20	9.20	0.03	7.20	0.02
Small farming loan	-	-	-	-	0.56
Vill. Small farming loan	-	-	-	-	0.27
Total	16.58	24.19	22.73	28.69	25.31

Sources: Statement of affairs Sonali Bank, greater road branch, Rajshahi.

Table-5.5: Year wise recovery position from 2000-2004 (Tk. in lakh)

Year	Amount of classified loan (Tk. in lakh)	Recovery (Tk. in lakh)	% of Recovery against total classified loan
1999	24.65	-	-
2000	41.07	16.58	67.26
2001	39.84	24.19	58.90
2002	37.00	22.73	57.05
2003	32.00	28.69	77.54
2004	28.25	25.31	79.09

Sources: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

In the year 2000 bank recovery an amount of Tk. 16.58 lakh which was the 67.26% of total classified loan. In 2001 and 2002 bank recovered Tk. 24.19 lakh & Tk. 22.73 lakh which were the 58.90% and 57.05% of total classified loan (Table-05).It shows that the loan recovery was not satisfactory. In the year 2003 and 2004 the recovery rate was 77.54% and 79.09%. Here the recovery rate was not bad. We hope that bank will recover more loan in future.

5.4. Profitability:

The notion of profitability analysis is related to the management of an organization performance. In general profitability can be defined as the ratio of output per unit of input.

Table-5.6: Changes of profit over the years 2000-2004 (Tk. in lakh)

Sonali Bank, Greater Road Branch, Rajshahi.

Year	Net profit/(loss)	Percentage of change
2000	(148.80)	-
2001	(13.87)	-972.82
2002	(123.26)	88.75
2003	(69.96)	-76.19
2004	(5.11)	-1269.08

Sources: Statement of affairs Sonali Bank, Greater Road Branch, Rajshahi.

Discussion:

From the above Table and Figure it is shows that there was net loss during 2000-2004. In the year 2001 there was a lowest amount of loss and the loss is decrease by 972.82%. After the time of 2002 the amount of loss was decline and in 2004 it was decrease by 1269.08%.

According to the bank official this adverse-profitability is due to the high administrative cost & classification program specially.

5.5. Causes of classification/poor recovery:

The bank official mentioned the following causes for classified loan/poor recovery of loans:

Lack of mentality of loanee to repay.
Illegal practice in loan disbursement.
Loanee hampered hardly by natural calamities like flood, earthquake, tornado, etc or man made problem like theft by others.
In various times Government exempt loan. For this the loanee becomes very reluctant to repay in this sense that in future he will set loan exempt. Resulting loan classification and poor recovery.
The death of guarrantator. It is very difficult to recover.
Suggestion for recovery:
Singly or grouply have to meet with the borrower and inspire him to repay at least two days in a week.
If the borrower comes to pay generally then should take the help of local administration.
Bank should try to understand the borrower of the rule of law. For this the borrower may repay to protect his honor.
It should be described to the borrower about the rule of loans interest. By this the borrower will know that if we do not repay then it will increased geometrically. For this he will inspire to repay as early as possible.
Different committee is needed for the purpose of recovery.
The loans which have no owner and are classified during long time have to be desolated for balance.
The bank may recover with the help of interest exempting.

5.6. Problems of deposit collection:

In deposit mobilization Sonali Bank, Greater Road Branch, Rajshahi faces various problems which are discussed bellow:

Lack of production originated business: A very few numbers of industrial units is located in Rajshahi city. Most of the businessman deals with the trading. So, this branch can not collect the deposits of industrial collection.
Target setting policy: There is no special target setting policy of this branch. Resulting reluctant mentality of the employee for deposit collection.
Fixed rate of interest: Bangladesh Bank determines a range of interest rate, which is paid on deposit and the head office of Sonali Bank follows top down allocation policy in setting of target, which is unrealistic. For example adding 20% more with the current year’s deposit, the expected deposit of following years is determined. If the branch enjoys the autonomy of determining the rate of interest, it is possible for the branch to attract the special depositor giving higher rate of interest.
Absence of Islamic banking: Most of the people of Bangladesh are Muslim. So, most of the people of our country bear ethics of Islam in mind. Interest is prohibited in Islam. Consequently many of us put money in Islamic Bank.
Provide mass banking: This branch dose not functions of mass banking. As a result it is to be involved in various non-remunerative activities (like payments of teacher’s salary).
Provision for the govt. institution: There is a provision for the govt. institution to put 80% of it’s deposits in NCBs. But this rule is not followed strictly. In this respects govt. has not taken any step yet consequently, those institutions go to Private Banks in search of better benefit.
Illegal expenses: Private Banks is habituated with illegal expenses. Some times, they send precious presentation (VIZ, TV, Freeze etc.) to high-level govt. of official and businessman, which is unthinkable for NCBs.
Special benefit: Private Banks can provide special benefit to attract the depositors. But it is not possible for this branch as a wing of Sonali Bank.
Rules and regulation: Since it is a branch of state owned commercial bank it follows rigid rules and regulations. On the other hand the flexible rules and regulation maintain Private Banks.

5.7. Problems of loan disbursement:

The following problems are mentioned by bank officials related this area:

Lack of proper security.
Lack of proper supervision of disbursed loan.
Illegal activities of CBA to sanction a loan.
Influence of political leader to sanction a loan.

CHAPTER SIX

PROBLEMS, RECOMMENDATION AND CONCLUDING REMARKS

6.1. Problems of Sonali Bank, Greater Road Branch, Rajshahi.

Sonali Bank is a nationalized commercial bank. Through this bank Government does his important monetary activities. It is directed by the policies of government. Every government organization faces a lot of problems. As a government bank Sonali Bank, Greater Road Branch, Rajshahi suffers from many problems, which are mentioned bellow:

Þ Service of this bank is not fully modernized.

Þ This branch office space is not large as its operation.

Þ Aggression of CBA is a vital problem.

Þ This branch cannot obsess all kind of people.

Þ Service of this branch is not attractive.

Þ Lack of smooth co-ordination.

Þ Influence of political leader is an everlasting problem.

Þ Sudden changes of government policies are a vital problem.

Þ There is no computer section.

Þ Employees are not efficient enough.

Þ Lack of proper supervision.

Therefore, it is clear that this branch has been suffering from a lot of problems since its inauguration.

6.2. Recommendation:

If the bank follows the recommendation mentioned bellow, it will overcome its problem.

Ø Bank must enrich their service like private commercial bank most likely one stop service, ATM service, ready cash service etc.

Ø Smooth co-ordination should be needed.

Ø Bank needs efficient employees who must be honest. To ensure this proper supervision is necessary.

Ø The branch need large office space for it’s vast banking operation.

Ø Bank should open a computer cell, It is the demand for modern era.

Ø Activities of CBA should be reduced.

Ø In order to increase the growth of deposit of Sonali Bank, Greater Road Branch, Rajshahi should organize seminar, symposium and worships on modern banking.

Ø Bank should follow IAS-30.

Ø Bank should follow lend risk analysis (specially 5C and 5R) to provide loan and advance.

Ø Bank could start one stop service.

Therefore, bank must take some corrective measurement so that it might face the challenges of Twenty-first century.

6.3. Concluding Remarks:

Sonali Bank is one of the biggest nationalized commercial bank in Bangladesh. It serves not only Bangladesh but also abroad as well. Sonali Bank, Greater Road Branch, Rajshahi is one of the important branch. It is sub-chest branch.

It have become familiar with all kinds of services rendered by this branch and functioning process of those services like account opening, token issue, posting of cheques, cancellation of cheques, clearing house, cash receipts and cash payments, remittance and deposits. Now this branch have to provide limited on-line service if necessary.

All kinds of customary services rendered by this branch are not so good where as private commercial bank has created an image in rendering customary services. The negligence in customary services is observed which is now plasticized by other NCBs. This bank is not in the satisfactory position in providing large amount of loan and advances, but classified loan has been decreased day by day.

The investment position of this branch is not satisfactory. In the year 2000 the loan and advance is only 7.67% of total deposit of this year. It is maximum and the positions of debt deposit ratio were 7.11% in 2001, 5.78% in 2002, 6.42% in 2003 and 6.61% in the year 2004.

In depended upon the earlier discussion and analysis we can say that the total performance of this branch is going to be well. The recovery position of loan will well off day by day.

The position of profitability is going to be well-off day by day with the co-operation of officials. The officials hope that they will make profitable of this branch in coming years.

BIBLIOGRAPHY

Peter S. Rose: Commercial Bank Management (Third Edition, 1996);
Sonali Bank Annual Report 2000 to2004;
Ledger Book, Sonali Bank, Rajshahi Greater Road Branch;
Instructions Book of Sonali Bank
“Statements of Affairs”, Sonali Bank, Rajshahi Greater Road Branch of the year (2000 to2004).

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