Letter of Transmittal

May 28, 2012 To Moonzia Mojumder Lecturer, Department of Business Administration World University of Bangladesh (WUB) Dhanmondi, Dhaka-1205 Subject: Submission of Internship Report on loan and Advance procedure of Sonali Bank Limited. Dear Sir, I am hereby pleased to submit Internship Report on The Overview of Loans &

Advances of Sonali Bank Limited it was a great pleasure to work on such an

important topic. This Internship work has done according to the requirements of the World University of Bangladesh. I would be very grateful to you if you please grant my report & place take the trouble of going through the report & evaluate my performance. SincerelyAshok Mondal ID. No: WUB 01/08/19/598

19th Batch, Major in Finance

Department of Business Administration World University of Bangladesh

Students Deceleration
I do hereby solemnly declare that the work presented in this Internship Report has been carried out by me and has not been previously submitted to any other University/ College/ organization for an academic qualification or a professional degree.

I hereby ensure that the work that has been presented here dose not brunch any existing copyright.

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Ashok Mondal ID. No: WUB 01/08/19/598 19th Batch Major in Finance Department of Business Administration World University of Bangladesh

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Certificate of Supervision
This is to certify that the internship Report on Loan and Advance of Sonali Bank Limited submitted for the partial completion of Bachelor of Business Administration (BBA) degree from World University of Bangladesh. Ashok Mondal has done this report under my supervision. No part of the internship report has been submitted for any degree of title recognition before. I wish it will help him for his future career. He is permitted to submit the report.

Moonzia Mojumder Lecturer Dept of Business Administration World University of Bangladesh

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Executive Summary

Sonali Banks are the financial institution that plays a very useful and dynamic role in the economic life of every modern state. It is the largest state owned bank in Bangladesh. I was assigned to the project of The Overview of Loans & Advances of Sonali Bank Limited. The Sonali bank has formulated General Loan Scheme, Car Loan, Easy Loan, Flexi
Loan, Thikhana Loan, Credit Loan, Peshajibi Loan, and Possession Loan, Lease Loan, Lease Finance, and Small and Medium Enterprise (SME), Consumer Credit Scheme, Hire Purchase, etc.

The main objective of this report to know about the marketing polices of Sonali bank limited. This bank provides higher quality services which leads to higher customer satisfaction. The information of the report has collected from primary and secondary sources like books publish report as well as website of the Sonali bank limited. Sonali Bank with its wide ranging branch network and skilled personnel provides promotes and personalized services like issuing. Demand Draft, Telegraphic Transfer, Mail Transfer, Pay order, and Transfer of fund by special arrangements. At the branch level credit department must be adequately capable of collecting the correct and relevant information and analyzing the financial statements quickly and precisely.

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Acknowledgement

At the very beginning I would like to express my deepest gratitude to the all almighty Allah for giving me the strength and the self-control to finish the task within schedule time. I would like to thank my internship supervisor Moonzia Mojumder, Lecturer, Department of Business Administration, World University of Bangladesh for her whole-hearted supervision during the internship period. Her valuable suggestion and guidance help me a lot of prepare the report in a well-organized manner. I am grateful to Md. Sultan, Manager (Senior Executive Officer), Lalbagh Road Branch, Sonali Bank Ltd. & SM. Solaiman Hossain, Senior Officer (IT) for their co-operation, constant, monitoring and direction in providing necessary information to get practical exposed in banking. Finally, I would like to express my deep sense of gratitude and thank to all officer and member for all their continues guidance valuable knowledge and suggestion during my internship program.

Table of content
Chapter Name Topic Letter of Transmittal Students Deceleration Certificate of Supervisor Executive Summary Acknowledge Chapter 01 1.1 1.2 1.3 1.4 1.5 Chapter 02 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Chapter 03 3.1 3.2 3.3 3.4 3.4.1 3.4.2 Chapter 04 4.1 4.2 4.3 Page Number i ii iii iv v 1 2 3 3 4 4 5 6 7 7 8 9 12 13 14 15 17 17 18 18 19 20 22 23 23 25

INTRODUCTION Origin of the Report Background of the Report Objectives of the Report Methodology of the Report Limitations of the Study
AN OVERVIEW OF SONALI BANK LIMITED

Introduction and Description of the business Sonali Bank at a glance Vision and Mission of the Bank Management and Function of Sonali Ba Principal Activities and Others Activ Commitment of the Bank Financial Performance of the Bank Products & services of SBL GENERAL BANKING Introduction Customer Service Section Accounts Opening section Collection of deposit
Demand deposit Time deposit
EXISTING LOANS & ADVANCES EVALUATION SYSTEM

Objective Standard steps followed in the lending process Credit analysis

4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.4 4.5 4.6 4.7 4.8 4.9 Chapter 05 5.1 5.2 5.3 5.4 5.4.1 5.4.1.1 5.4.1.2 5.4.1.3 5.4.2 5.4.2.1 5.4.3 5.4.4 5.5 5.5.1 5.5.2 5.5.3 5.5.4 5.5.5 5.5.6 5.5.7 5.5.8 5.5.9 Chapter 06 6.1 6.2 6.3 6.4

Creditworthiness Properly structured and documented proposal Credit risk evaluation Security Repayment program

Responsibilities of the branch manager

Lending committee Documentation & Disbursement Administration & Monitoring Standard loan review process Exception to loan policy Loan & Advance Procedure of Sonali Bank Ltd.

25 27 28 30 31 31 33 34 34 34 35 36 37 37 37 39 40 40 40 40 40 41 41 42 43 43 44 44 45 45 46 47 47 48 49 50 52 53 55

Introduction Definition of Credit Principles of sound lending Different Credit facilities offered by PBL Over draft Temporary Over draft Clean Over draft Secured Over draft Cash credit Cash credit pledge Consumer credit scheme SME finance The lending procedure Selection of borrower Credit application and Account opening Collection of supporting documents Trade checking Sanctioning of Credit & Sanction advice Documentation Disbursement of loan Credit administration Collection/Monitoring steps Findings, Recommendations and Conclusion Major Findings Conclusion Recommendations Bibliography