Annual - Report - 2018 Sonali PDF

Annual Report 2018
YEAR OF CONSOLIDATING
PROGRESS
Bangladesh, having a bird’s eye view over its vision 2041, has been showing a scintillating
performance through its advanced steps in satellite communication, power generation, and
infrastructural excellence such as Padma multipurpose bridge, Karnaphuli tunnel, elevated
expressway and metro rail to make faster cities and advanced engineering like deep sea port.
These outstanding enhanced development projects have been symbolized and outlined in
seven logos in the cover.
The arranged uptrend of the bank logos represents the recent advanced position of
Sonali Bank Limited alongside the development activities in accordance with the vision of
the government. Sonali Bank Limited, the recognizable partner of the present farsighted
government, has also leaped forward all the way through its vibrant achievements one after
another in the recent years.
The bank is determined to retain the apex position through its diversifying activities and
combating the challenges of the time ahead and positively will be placed at the peak in the
banking industry of Bangladesh.
KEY ACHIEVEMENT 2018
(Figure in Million Taka except stated otherwise)
+ 8,302 + 29,555
Operating Profit Deposits
2018 20,257 2018 1,093,866
2017 11,955 2017 1,064,311
+ 40,865 -27,119
Loan & Advances Classified Loan
2018 464,083 2018 121,883
2017 423,218 2017 149,002
+ 50,131 -9.02%
Total Assets Rate of Classified Loan
2018 1,306,842 2018 26.26%
2017 1,256,711 2017 35.28%
SURVEILLANCE RATING
CREDIT ONE
STEP As Government Supported Bank
RATING AHEAD Without Government Supported Bank

Outlook
+27,868 + 4,007
Recovery from CL Export
2018 38,780 2018 32,502
2017 10,912 2017 28,495
+ 558.40 + 2.67%
Recovery from Write-off Advance Deposit Ratio
2018 945.50 2018 42.43%
2017 387.10 2017 39.76%
-0.57% + 0.29%
Cost of Fund Return on Investment
2018 5.38% 2018 7.58%
2017 5.95% 2017 7.29%
2017-18 2016-17
LONG TERM SHORT TERM LONG TERM SHORT TERM
AAA ST-1 AAA ST-1
A- ST-2 A- ST-2
Stable Stable
Year of Consolidating Progress
ORGANIZATIONAL CORPORATE
INFORMATION GOVERNANCE
Letter of Transmittal 6 Directors' Report 64
Notice of the 12th Annual General Meeting 7 Corporate Governance 98
Corporate Vision and Mission 8 Certificate with Compliance Report on CG 114
Core Values 10 Compliance Report with BSEC Notification on CG 115
Ethical Principles 11 Credit Rating 124
Strategic Objectives of SBL 12 CEO and CFO's Declaration to the Board 125
Statement of Forward Looking Approach 13 Directors' Responsibility for FR and IC 126
Corporate Profile 14 Report of the Audit Committee 128
Group Corporate Structure 17 Note from the Chairman of Risk Management

131
Committee
Corporate Organogram 19
STAKEHOLDERS
Milestones 20 INFORMATION
List of Chairman 22 Stakeholders and Shareholders Information 133
List of Administrators/Managing Directors &
23 Redressing to Shareholders' Observations 137
CEOs
SBL at a Glance 24 Comparative Financial Highlights of SBL 138
Graphical Presentations 139

BOARD OF DIRECTORS AND
MANAGEMENT PROFILE Key Financial Data and Ratios of SBL 142
Board of Directors & its Committees 28 Profitability, Dividend, Performance and

147
Liquidity Ratios
Directors' Profile 34 Segment wise Presentation 148
Management Team 46 Statement of Value Addition and its Distribution 149
CHAIRMAN AND Market Value Added Statement 151

MANAGING DIRECTOR’S Financial Calendar 2018 and 2019 152
MESSAGE
Message from the Chairman 52
CEO & Managing Director Message 56
4
ORGANIZATIONAL INFORMATION
RISK MANAGEMENT AND AUDITORS’ REPORT AND

CONTROL ENVIRONMENT FINANCIAL STATEMENTS
Report on Core Risk Management 156 Consolidated Financial Statements-SBL 218
BASEL-III Compliance Report 164 Financial Statements-SBL (Solo) 224
Market Disclosures under Piller-III 164 Financial Statements- Sonali Investment Ltd. 325
SUSTAINABILITY ANALYSIS AND Financial Statements-Islamic Banking Unit 347
INTEGRATED REPORTING Financial Statements-SECI 351
Report on Sustainable Banking 180

ADDITIONAL
Report on Human Resources 183 INFORMATION
Report on Financial Inclusion 187 Domestic Branches of SBL 358
Customer Care 189 SBL Remittance Network with World Map 372
Citizen Charter 191 Overseas Branches of SBL 374
Islamic Banking of SBL 192 Representative Branches of SBL 374
Report on Corporate Social Responsibility 194 Branches of Sonali Bank (UK) Ltd. 375
Government Transactions and Works Related to Branches of SECI, USA 376
195
Social Responsibility
Contribution to National Economy 196 List of Acronyms 378
Standard Disclosure Index 380

MANAGEMENT REVIEW AND
OTHER INFORMATION SBL Branch Network 383
Management Discussion and Analysis 198
Awards and Recognition 204
Products and Services of SBL 206
Media Highlights-2018 209
Photo Gallery 210
Annual Report 2018 5

LETTER
OF TRANSMITTAL
All Shareholders of Sonali Bank Limited/

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, 2018.
Dear Sir(s),
We are pleased to enclose herewith a copy of the Annual Report 2018 along with the Audited Financial Statements
(Consolidated and Solo) of Sonali Bank Limited for the year ended 31 December, 2018 and as on that date for your kind
information and record.
Financial Statements of ‘The Bank’ comprise that of Sonali Bank Limited whereas Consolidated Financial Statements
comprise Financial Statements of ‘The Bank’ and those of its operational subsidiaries- Sonali Investment 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. Obayed Ullah Al Masud)

CEO & Managing Director
6
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OUR VISION
Socially committed leading
banking institution with
global presence.
8
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.

CORE
VALUES
The core value proposition of Sonali Bank Limited 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:
Accountability
Ethics All employees are responsible for their
Everyone must ensure adherence to activities and will remain accountable
ethical practices of banking. to their respective superior for
accomplishment of tasks.
Objectivity Transparency
All persons will have definite objective Information to be kept open for all
so that stakeholders can have proper
in carrying out their tasks.
ideas about the activities of the Bank.
Team Work
Integrity Open communication, discussion and
Protection and safeguard of national interaction amongst the employees
and customer’s interest are vital would ensure unification of actions
elements for societal trust. and efforts towards achiving the
common goal(s).
Excellence Self Reliance

Excellent performance and Each employee will have ownership
effectiveness are pre-conditions to attitude towards the Bank and self
ensure quality service to the large confidence in his work for the
customer base of the Bank. betterment of the Bank.
Commitment Innovation
New and innovative products are
Every employee is committed to work
the needs of the time for which
upto the expected level to ensure
continuous action oriented researches
satisfaction of valued customers.
are being carried out.
10
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 Limited 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 Limited 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 privacy
demand funds respectively, also aims the principles of and confidentiality of customer information, prevent
profitability and productivity stipulates the requirement money laundering and fraudulent activities, demonstrate
that they have to work in accordance with the Ethical work place respect, banks are to regulate their relations
Principles in the professional and organizational fields. not only among themselves but also with the other stake
holders and employees in concordance with the Ethical
Setting off from the expansion of the banking system, Principles.
the improvement of the quality of banking services, the

STRATEGIC
OBJECTIVES OF SBL
The core objectives of Sonali Bank Limited 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.
Long-standing elements of the Bank’s strategy for achieving its objectives include :
Greater emphasize to serve potential
Improving corporate governance through
and unbanked population of the country
strengthening good corporate culture,
through providing banking services to
motivation, training and supervision in all
under-served areas with the scaling up of
levels of management.
various pilot initiatives.
Developing Human Resource Management

Gaining competitive advantages by System to motivate and retain the human
lowering overall cost compared to that resources and transform human resources
of competitors. to human capital through proper training in
every aspects of working area.
Ensuring diversification of investment

by sector, size, economic purpose and
Retaining our top leadership position by
geographical location and expand need
providing quality customer services.
based retail and SME/Microfinance/
Women entrepreneur financing.
Cost control optimization at all levels of

Investing in the thrust and priority sectors operation by ensuring budgetary control
of the economy. and maximizing revenue through quality
services and product diversification.
Ensuring strong internal control and

Providing impeccable and progressively
compliance culture through establishing
better customer services through
strong control environment and sound
introducing changed technologies.
compliance within the Bank.
Developing sound and effective risk

management culture within the Bank to
Being excellent in serving the cause of
safe guard the banking assets and protect
least developed community and areas.
the interest of the dipositors and other
stake holders.
Ensure dedicated service to the

Improving of deposit mix by maintaining
government as an exchequer and
efficient deposit management, increasing
government transactions (government
share of low cost and no cost deposit in
receipts and payments) in order to
total deposit as well funded business.
achieve expected economic growth.
12
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
regading the company’s business performance and non business
involvemant. 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
Engagement of talented employees. increase of provision requirements resulting reduction
of ROA and ROE.
Exclusive human resource development efforts.
Fluctuation in international prices of essentials which
Exclusive business re-engineering. influences the oscillation in foreign exchange market.
Customer service improvement. Compliance issues raised by the International Forums
Efficient internal control system. which are likely to affect the export growth in the
Improvement of internal work environment. industrial sectors.
Establishment of risk based management system. Changes in the demand for deposit, loan, and
investment products and other financial services in
Adequate internally generated capital. the markets we serve.
As any projection or forecast, forward-looking statements The outcome of pending or threatened litigation, or
are inherently susceptible to uncertainty and changes in of other matters before regulatory agencies, whether
circumstances. The company’s actual results may vary currently existing or commencing in the future.
materially from those expressed or implied in its forward- Environmental conditions that exist or may exist on
looking statements. Important factors that could cause properties owned by, leased by, or mortgaged to the
the Bank’s actual results to differ materially from those Company.
in its forward-looking statements include government
regulation, economic, strategic, political and social Changes in accounting principles, policies, practices
conditions and the following factors: and guidelines in line with IFRS and BB requirements.
Changes in credit ratings or in our ability to access
Changes in the monetary and fiscal policies of the the capital markets along with other economic,
Government, including policies of the Department of competitive, governmental, regulatory, technological,
the Treasury and Bangladesh Bank. and geopolitical factors affecting our operations,
Changes in interest rates, which may affect net pricing and services.
income, prepayment penalty income, mortgage Priority of government and the regulator.
banking income, and other future cash flows, or the
market value of our assets, including our investment Status of ICT inclusion.
securities. Inclusion of new generation human resources.
Changes in capital management policies of the Bank The changed banking requirements of the customer.
including use of derivatives to mitigate our interest Peer Bank’s forward movements.
rate exposure.
Changes in corporate tax structure along with
legislation and regulation of VAT on banking services.

CORPORATE
PROFILE
Name of the Company Sonali Bank Limited
Registered Office 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh
Genesis Emerged as a Nationalized Commercial Bank following the
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
Shareholding Pattern 100% share owned by Government
of the People’s Republic of Bangladesh
Tax Identification No. (TIN) 465337943663
Vat Registration No. (BIN) 000000063
Chairman of the Board of Directors Mr. Md. Ashraful Moqbul
CEO & Managing Director Mr. Md. Obayed Ullah Al Masud
Head of Risk Management Mr. A. K. M. Sajedur Rahman Khan
Head of ICC Mr. Md. Abnus Jahan
Company Secretary Mr. Md. Hasanul Banna
Chief Financial Officer Mr. Subhash Chandra Das, FCA, FCMA
Chief Information Technology Officer Mr. Omar Farooq Khandaker
Chief Audit Officer Mr. Md. Golam Kibria, FCA
DOMESTIC NETWORK
No. of Branches 1213
No. of Urban Branches 512
No. of Rural Branches 701
No. of General Managers’ Office 11
No. of Principal Office 46
No. of Regional Office 16
No. of Treasury Branches 643
No. of AD Branches 48
No.of Corporate Branches (incl. LO) 32
No. of Computerized Branches 1213
No. of Core Banking System Branches 1213
No. of Administrative Office 74
14
No. of ABB Operated Branches 1213

No. of RMS+ Operated Branches 1213
No. of SMS Banking Operated Branches 1213
No. of Islamic Window 11
No. of Head Office Divisions 45
OVERSEAS NETWORK
No. of Branches 02
Location of Branches Kolkata (India), Siliguri (India).
No. of Correspondence 669
No. of Representative Offices 03 (02 in KSA and 01 in Kuwait)
ATM Booths 105
SUBSIDIARIES
Sonali Exchange Co. Inc. (SECI), USA 336 East 45th Street, 8th Floor, New York,
NY-10017, USA.
Tel: (212) 808-0790, (212) 808-4085
Email: compliance@sonaliexchange.com
Sonali Investment Limited Sara Tower (11th Floor), 11/A,
Toyenbee Circular Road,
Motijheel C/A, Dhaka.
Phone: 88-02-9568777, PABX: 9556940, 7170001 Ext.101
E-mail: info@silbd.com, sblmbu@yahoo.com
ASSOCIATES
Sonali Bank (UK) Ltd. 29-33 Osborn Street, London E1 6TD, U.K.
Phone: 00-44-(0)20-7877-8200 (Switch Board)
Phone: 00-44-(0)20-7877-8231 (Direct)
Fax:00-44-(0)20-7377-9924
E-mail: enquiries@sonali-bank.co.uk
Sonali Polaris FT Limited 35, Kamal Ataturk Avenue,
Abedin Tower, 7th Floor,
Banani Commercial Area, Dhaka-1213
No. of Employee 17271
CORPORATE RATING STATUS
Surveillance Rating with Government Support Long-term: AAA, Short-term: ST-1
Surveillance Rating without Government Support 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
Sonali Bank Limited SWIFT Code: BSONBDDH
Registered Office Contacts Email: sblho@sonalibank.net.bd, sbhoitd@sonalibank.net.bd
sbhoitd@bttb.net.bd, sbhoid@bdmail.com
Website: www.sonalibank.com.bd

LEGAL ADVISORS OF SBL
Mr. Md. Tahirul Islam Mr. Dr. A Z M Fariduzzaman

Flat No- 1003, Building No- 8 Flat No- 106, House No-27, Road No- 4,
Japan Garden City, Mohammadpur, Dhaka P.O +P.S- Dhanmondi, Dhaka
Mob- 88 01712953018 Mob- 88 01715627284
Mr. Md Mamunur Rashid Mr. Seikh Muhammad Zakir Hossain

Flat No- 3/A, House- 7/6, Block- C, House No- 34/1, Road No- 10/A,
Lalmatia, Dhaka-1207 Dhanmondi, 1209
Mob- 88 01975051171 Mob- 88 01755525543
AUDITORS OF SBL
S. F. Ahmed & Co Howladar Yunus & Co

Chartered Accountants Chartered Accountants
House- 51 (2nd & 3rd Floor), Road- 09 House- 14 (4th Floor), Road- 16A
Block- F, Banani, Dhaka-1213, Bangladesh Gulshan- 1 Dhaka-1212 , Bangladesh
Telephone: +88 02 9894346 ,9894026 & 9870957 Telephone: +88 02 9883863
FAX: (880-2)9845135 FAX: +88 02 9552989
E-mail: sfaco@dhaka.net
TAX ADVISOR OF SBL
Akhter Zamil and Co.

Chartered Accountants
Ibrahim Mansion (1st Floor), Room No- 207
11, Purana Paltan, Dhaka-1000.
Telephone: 88 02 7124898
E-Mail: akhterzamil@yahoo.com
CREDIT RATING COMPANY OF SBL
Emerging Credit Rating Limited

SHAMS Rangs, House- 104, Park Road
Level A1, A2 & A5, Baridhara, Dhaka
Telephone: 88 02 9860911
Web: www.emergingrating.com
LAW CONSULTANT
Mr. Osman Haider
CHIEF MEDICAL OFFICER
Dr. Masuda Salma
16
GROUP CORPORATE
STRUCTURE
Sonali Bank Limited
Subsidiaries Associates
Local Local
Sonali Investment Sonali Polaries
Limited (SIL) FT Limited
Overseas Overseas
Sonali Exchange Co. Sonali Bank (UK) Limited
Inc. (SECI) USA
Name of the Date of No. of

Status Paid-up Capital Prime Activities
Company Establishment Branches
Merchant banking, portfolio

Sonali Investment BDT 2000.00 management, issue
22 April, 2010 05
Limited million management, capital market
transactions
Subsidiaries
Remittance business,
Sonali Exchenge Co. 12 December, USD
10 undertake and participate in all
Inc. (SECI), USA 1994 950,000.00
transactions
Customize, enhance, modify

Sonali Polaris FT 01 February, BDT 75.00
- and implement Intellect CBS
Limited 2012 million
10.0 Software
Associates
Sonali Bank (UK) 07 December, GBP 25.00
02 All types of banking activities
Limited 2001 million

CORPORATE
ORGANOGRAM
BOARD OF
* Executive Committee
DIRECTORS
* Audit Committee
* Risk Management Committee CEO & Managing
GM (Principal) Director
Sonali Bank Staff College
DMD DMD DMD
Chief
Information
GM GM GM GM GM GM &Technology
Officer
(CITO)
INDUSTRIAL INSPECTION &

BUSINESS PERSONNEL COMMON INFORMATION
VIGILANCE PROJECT AUDIT DIVISION
DEVELOPMENT MANAGEMENT SERVICES TECHNOLOGY
DIVISION (MDD) DIVISION (VD) FINANCING
DIVISION (PMD) DIVISION (CSD)
-1 (EXTERNAL
DIVISION-1
DIVISION-1 AUDIT)
INDUSTRIAL INSPECTION &

PUBLIC PROJECT HUMAN RESOURCE ESTABLISHMENT AUDIT DIVISION
INFORMATION
RECONCILIATION TECHNOLOGY
DIVISION (RD) RELATIONS FINANCING DEVELOPMENT & ENGINEERING -2 (OPERATION
DIVISION (PRD) DIVISION (HRDD) DIVISION (EED) DIVISION-2
DIVISION-2 & POLICY)
AGRO-BASED EMPLOYEES
BRANCHES AD BRANCHES RESEARCH, INSPECTION &
CONTROL PROJECT WELFARE & CARD
INSPECTION & PLANNING & AUDIT DIVISION
DIVISION (BCD) FINANCING TRANSPORT DIVISION
MONITORING MODERNIZATION -3(MONITORING)
DIVISION DIVISION (EWTD)
DIVISION DIVISION (RPMD)
INTERNAL
DISCIPLINARY GENERAL MIS &
LEGAL MATTERS CONTROL &
& APPEAL ADVANCES STATISTICS
DIVISION (LMD) COMPLIANCE
DIVISION (DAD) DIVISION (GAD) DIVISION
DIVISION
GMO GMO GMO GMO GMO GMO GMO GMO GMO

DHAKA-1 DHAKA-2 CHITTAGONG KHULNA SYLHET RAJSHAHI RANGPUR COMILLA MYMENSING
(108 Br.) (107 Br.) (108 Br.) (124 Br.) (79 Br.) (142 Br.) (114 Br.) (136 Br.) (114 Br.)
Principal Principal Principal Principal Principal Principal Principal Principal Principal

Office (PO)-04 Office (PO)-05 Office (PO)-04 Office (PO)-04 Office (PO)-03 Office (PO)-06 Office (PO)-05 Office (PO)-05 Office (PO)-04
BB Avenue Ramna Motijheel CTG - North Khulna Sylhet Rajshahi Rangpur, Dinajpur Comilla Mymensing
Sadarghat Mirpur CTG - South Jessore Moulovibazar Pabna, Bogra Gaibandha Chandpur Tangail
Gazipur Narayanganj Rangamati Jhenaidah Habiganj Sirajganj Thakurgaon Brahmanbaria Kishorganj
Narshingdi Munshiganj Patiya Satkhira Naogaon, Natore Kurigram Noakhali, Feni Jamalpur
Total: 89 Br. Total: 98 Br. Total: 87 Br. Total: 96 Br. Total: 98 Br. Total:125 Br. Total:102 Br. Total: 90 Br. Total: 90 Br.
Regional Regional Regional Regional Regional Regional Regional Regional Regional

Office (RO)-01 Office (RO)-0 Office (RO)-02 Office (RO)-02 Office (RO)-01 Office (RO)-02 Office (RO)-01 Office (RO)-01 Office (RO)-02
Manikganj Cox’s Bazar Bagerhat Chapai Nawab- Nilphamari Sherpur

Sunamganj Laxmipur
Bandarban Narail ganj, joypurhat Netrokona
Total: 11 Br. Total: 0 Br. Total: 17 Br. Total: 25 Br. Total: 12 Br. Total: 16 Br. Total: 10 Br. Total: 12 Br. Total: 23 Br.
Corporate Corporate Corporate Corporate Corporate Corporate Corporate Corporate Corporate

Branch-06 Branch-07 Branch-03 Branch-03 Branch-02 Branch-02 Branch-02 Branch-01 Branch-01
Wage Earners' BWAPDA;
Dilkusha Foreign Exch; Agrabad Corp;
Khulna Corp; Darga Gate Corp; Rajshahi Corp; Rangpur Corp;
Sadarghat Shilpa Bhaban; Laldighi Corp; Comilla Corp Mymensing Corp
Daulatpur Corp; Sylhet Corp Bogra Corp Dinajpur Corp
Hotel Sheraton Dhaka Cantt.; Wage Earners'-Ctg
Jessore Corp (AGM) (AGM) (AGM)
PM's Office Dhanmondi; Corporate Br.
(AGM)
Dhaka University Chawk Bazar;
Corporate Br. Narayangonj Corp
18
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 Limited is structured as follows:
GM & Company Secretary Managing Director’s

Company Affairs & Board Division Secretariat
DMD DMD
Chief GM, GM, GM, BB

GM GM GM Financial Avenue
Local Ramna
Officer
Office Corp. Corp.
(CFO)
FOREIGN CENTRAL
INTERNATIONAL
RURAL CREDIT
TRADE FINANCE
REMITTANCE ACCOUNTS > Chief Security Officer (CSO)
DIVISION (RCD) MANAGEMENT DIVISION-1
DIVISION-1 > Chief Engineer
DIVISION(FRMD) (CAD-1)
CENTRAL > Chief Medical Officer

INTERNATIONAL TREASURY
ACCOUNTS
MICRO CREDIT TRADE FINANCE MANAGEMENT
DIVISION-2
> Law Consultant
DIVISION (MCD) DIVISION-2 DIVISION (TMD)
(CAD-2)
SBL Summary (Offices/Branches):
LOAN RECOVERY CURRENCY GOVT. ACCOUNTS
& SME
MANAGEMENT & SERVICES Head Office Divisions = 45
CLASSIFICATION DIVISION
DIVISION (CMD) DIVISION (GASD) GMO = 11
DIVISION (LRCD)
Principal Office = 46
Regional Office = 16
AGRI. CREDIT RISK
RELATED MANAGEMENT Local Office : 1
COMPLAINT CELL DIVISION (RMD) Corporate Br. : 31
Others : 1181
Foreign Br. : 2
Total Branch : 1215

GMO GMO GM GM
FARIDPUR BARISAL Sonali Investment Sonali Bank
(UK) Ltd.
Sonali Investment Limited = 1
Ltd (Subsidiary
(105 Br.) (76 Br.) of SBL) (Associate of SBL) SECI, USA = 1
Sonali Bank (UK) Limited = 1
SBL, Representative Office = 3
Principal Principal
4 Branches 2 Branches
Office (PO)-04 Office (PO)-02
Faridpur Barisal Motijheel Main Br London Main Br.
Madaripur Patuakhali Paltan Birmingham
SBL Manpower Summary:
Kushtia Uttara
Chuadanga Mirpur CEO & Managing Director = 1
Total: 80 Br. Total: 54 Br. Deputy Managing Director (DMD) = 5
GM & equivalent = 30
Regional Regional Overseas Br. Sonali
of SBL-02 Exchange
DGM & equivalent = 146
Office (RO)-02 Office (RO)-02
Company AGM & equivalent = 372
Rajbari Pirojpur Kolkata Inc. (SECI),
Gopalganj Bhola Shiliguri USA SPO & equivalent = 1274
Total: 10 Br. Total: 12 Br.
PO & equivalent = 2793
Corporate Corporate Representative 10 Branches SO & equivalent = 5346
Branch-01 Branch-01 Office of SBL: Manhattan
Jackson Heights Class-I Subtotal = 9967
Brooklyn
Faridpur Corp Barisal Corp Ryadh-KSA; Astoria, Atlanta Officer & equivalent = 12937
(AGM) Jeddah-KSA; Michigan, Paterson
Kuwait Jamaica Total = 22904
Ozone Park, Bronx

MILESTONES
1972 1974 1985 1989
1973 1980 1986
Commencement Inauguration of Paid up capital 1st computer

of banking overseas branch increased to launched in
operatrion of in London (UK) 55.00 million Sonali Bank
Sonali Bank and Kolkata
Submission of first (India)
profit and loss
Account and the Paid up Capital No of 1000 Foreign remittance
Balance sheet increased from branch crossed crossed 10000.00
initial 20.00 million
First agency million to 30.00
arrangements with million
47 correspondents
abroad
Act as the agent of
Bangladesh Bank
in handling Govt.
transactions
First net profit of
2.00 million had
earned
First annual report
published
2007 2009 2010 2012
2009
2008 to 2011
2013
Incorporation and Establishment Implementation Introduced

commencement of Sonali of BACH and On-line
of business of Investment BEFTN Government
Sonali Bank Limited Awarded The Transection
Limited Introduction of Best Retail Banker System (GTS)
Paid Up Capital SMS Banking in Bangladesh by Introduced NRB
increased to Achieved The Achieved The The Asian Deposit crossed Sonali Bank
ICMAB Best Deposit Best Brand Award 500000.00
9000.00 million crossed Banker\ e-Payment
Corporate Award. million Portal
400000.00 Islami Banking
million Window Loans and Awarded The
Advance crossed Strongest Bank
Implementation 300000.00
of RMS+ in Bangladesh
million by The Asian
Software
Paid up Capital Banker
Introduction of increased to
Any Branch Awarded The
11250.00 Highest
Banking (ABB)
Remittance
Collecting Bank
Establishment of
Sonali Polaris FT
Limited
20
1990 1994 2001 2006
1993 1990 2005
Paid up capital Establishment of Establishment of Paid Up Capital

increased to Sonali Exchange joint venture increased to
2427.00 million Co. Inc. (SECI), subsidiary: Sonali 5000.00 million
USA Bank (UK.) Ltd. Deposit crossed
Deposit crossed 300000.00 million
100000.00 million
Paid up capital Loans and Advance Operating profit
increased to crossed crossed 3000.00
3272.00 million 100000.00 million million
Foreign remittance
crossed
100000.00 million
Loans and Advance
crossed
200000.00 million
2013 2015 2017
2014 2016 2018
Deposit crossed RTGS Operation as Covered

600000.00 million the 4th Bank in countrywide 1209
Achieved The Best Bangladesh branches (100%) of
Financial Institute Total Assets Online banking
of Arthokontho reached 1.00 through Core
Business Award Paid up Capital trillion for the first Deposit crossed Banking Solution Achieved Highest
increased to time amongst all 1.00 trillion (CBS). Operating Profit
31200.00 million banks of Achieved Highest (20257.37 million)
Deposit crossed Bangladesh Operating profit in Overall Banking
700000.00 million (11955 million) and Sector.
Paid up Capital
increased to Net Profit (7092 Achieved Highest
Online Real Time million) amongst
Banking (ORTB) 38300.00 million Net Profit (2264.21
all state owned million) among all
Operation being Banks of
introduced State Owned
Bangladesh. Commercial Banks
Achieved The in Bangladesh.
ICMAB Best
Corporate Award.

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. Azizul Islam 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 - Till date
22
LIST OF
MANAGING DIRECTOR & CEOs
Administrators / Managing Directors of Sonali Bank
SL. NAME DESIGNATION TENURE
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
Managing Director & CEOs of Sonali Bank Limited

SL. NAME DESIGNATION TENURE
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- Till Date

24
(Tk. in million)
Capital
Loans and Classified Foreign Operating Net Manpower Manpower No of Authorized Paid up
Year Deposit Import Export Adequacy
Advances Loans remittance Profit Profit (Officer) (Staff) Branches Capital Capital
Ratio
2018 1093866 464083 121883 257020 32503 144194 20257 2264 10.10 14671 2600 1215 60000 45300
2017 1064311 423218 149302 1155300 28494 129601 11955 7092 10.35 15308 2993 1211 60000 41300
2016 1031608 384538 109115 134328 36882 147655 4251 1516 10.33 18793 1410 1209 60000 38300
2015 866012 346346 86849 200599 45432 135649 8651 587 10.08 19401 2699 1207 60000 38300
2014 778043 337554 86437 300143 63525 133819 8547 6055 12.24 19554 2892 1204 60000 31200
AT A GLANCE
2013 685895 343451 103769 195892 62967 143386 2971 3580 7.59 19653 3237 1203 20000 11250
2012 599294 378147 125975 287288 87408 126892 11036 (24959) (0.94) 20088 3295 1200 20000 11250
2011 533192 345991 61588 307479 80878 114181 12391 9957 12.60 18596 3342 1196 20000 11250
2010 478134 286098 68315 164043 74143 116105 8489 (975) 10.80 17989 2851 1187 20000 9000
2009 406152 254023 69834 96864 64442 111879 2311 3490 14.60 18091 3415 1183 20000 9000
2008 364386 231167 72677 151465 79390 116188 1617 2311 12.61 11507 10332 1182 20000 9000
SONALI BANK LIMITED
2007 328997 206348 92014 76497 78046 104501 4247 974 12.47 11769 10773 1183 10000 9000
2006 302303 241029 58901 67763 79695 113482 3006 (36276) (16.32) 12118 11155 1183 10000 5000
2005 277079 227001 51126 118528 64092 86797 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
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
(Tk. in million)
Capital
Loans and Classified Foreign Operating Net Manpower Manpower No of Authorized Paid up
Year Deposit Import Export Adequacy
Advances Loans remittance Profit Profit (Officer) (Staff) Branches Capital Capital
Ratio
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
AT A GLANCE
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
SONALI BANK LIMITED
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
1974 2278 1677 - 2163 663 189 40 31 - 6294 359 50 30
1973 2103 1290 - 703 525 216 25 21 - 5760 306 50 30
Annual Report 2018

1972 1731 854 - 43 22 - 05 02 - 4708 274 50 20
25
PR GRESS
THR UGH
SPACE
26

BOARD
OF DIRECTORS
From Right Standing
Mr. Md. Ashraful Moqbul Chairman
Mr. Md. Fazlul Haque Director
Dr. Md. Nurul Alam Talukder Director
Dr. Daulatunnaher Khanam (Joined on 13-01-2019) Director
Mr. Md. Mahboob Hossain (Passed away on 04.01.2019) Director (Not present in the Picture)
Mr. Afzal Hossain (Directorship ceased on 13.01.2019) Director (Not present in the Picture)
Mr. Md. Hasanul Banna General Manager & Company Secretary
28
BOARD OF DIRECTORS AND MANAGEMENT PROFILE
From Left Standing
Mr. Md. Obayed Ullah Al Masud CEO & Managing Director
Mr. A. K. M. Kamrul Islam FCA, FCS Director
Mr. Ishtiaque Ahmed Chowdhury (Joined on 19-09-2018) Director
Mr. Md. Mofazzal Husain (Joined on 13-05-2019) Director
Mrs. Sabera Aktari Jamal (Directorship ceased on 13.01.2019) Director (Not present in the Picture)
Mr. Muhammed Asadullah (Directorship ceased on 09.05.2019) Director (Not present in the Picture)
Information about Independent Directors: All are independent Directors in Sonali Bank Limited.

COMPOSITION OF COMMITTEES
OF THE BOARD OF DIRECTORS
Executive Committee
SL. NAME STATUS WITH THE BANK STATUS WITH THE COMMITTEE
01 Mr. Md. Ashraful Moqbul Chairman Chairman
02 Mr. Md. Fazlul Haque Director Member
Mr. Afzal Hossain
03 Director Member
(Directorship ceased on (13.01.2019)
04 Dr. Md. Nurul Alam Talukder Director Member
05 Mr. Md. Obayed Ullah Al Masud CEO & Managing Director Member
Audit Committee
01 Mr. A.K.M. Kamrul Islam FCA, FCS Director Chairman
Mr. Md. Mahboob Hossain
02 Director Member
(Passed away on 04.01.2019)
Mrs. Sabera Aktari Jamal
03 Director Member
(Directorship ceased on 13.01.2019)
Mr. Muhammed Asadullah
04 Director Member
05 Mr. Ishtiaque Ahmed Chowdhury Director Member
06 Dr. Daulatunnaher Khanam (From 20.05.2019) Director Member
07 Mr. Md. Mofazzal Husain (From 20.05.2019) Director Member
Risk Management Committee

01 Director Chairman
Mr. Ishtiaque Ahmed Chowdhury
(From 20.05.2019)
03 Director Member
Mrs. Sabera Aktari Jamal
04 Director Member
Mr. Afzal Hossain
05 Director Member
07 Dr. Daulatunnaher Khanam (From 20.05.2019) Director Member
08 Mr. Md. Mofazzal Husain (From 20.05.2019) Director Member
Composition of Shariah Supervisory Committee

SL. NAME STATUS WITH THE COMMITTEE
01 Prof. Maulana Mohammad Salah Uddin Chairman
02 Prof. Dr. Muhammad Abdur Rashid Member
03 Dr. Md. Nurul Alam Talukder Member
04 Al-Haj Hafez Maulana Mustafizur Rahman Member
05 Mr. Md. Obayed Ullah Al Masud Member
06 Mr. Md. Ataur Rahman Member
07 Mr. Md. Zakir Hossain Member
30
EXECUTIVE
COMMITTEE
CEO &
04 Mr. Md. Obayed Ullah Al Masud Member
Managing Director
Mr. Afzal Hossain Director
05 Member
(Directorship ceased on 13.01.2019) (Not present in the Picture)
General Manager &
06 Mr. Md. Hasanul Banna Secretary
Company Secretary

AUDIT
COMMITTEE
Dr. Daulatunnaher Khanam
03 Director Member
(From 20.05.2019)
Mr. Md. Mofazzal Husain
04 Director Member
(From 20.05.2019)
Mr. Md. Mahboob Hossain Director
05 Member
(Passed away on 04.01.2019) (Not present in the Picture)
Mrs. Sabera Aktari Jamal Director
06 Member
Mr. Muhammed Asadullah Director
07 Member
General Manager &
Company Secretary
32
RISK MANAGEMENT
COMMITTEE
Mr. Muhammed Asadullah Director
01 Chairman
Mr. Ishtiaque Ahmed Chowdhury
(From 20.05.2019)
Dr. Daulatunnaher Khanam
04 Director Member
(From 20.05.2019)
05 Director Member
(From 20.05.2019)
Mr. Md. Mahboob Hossain Director
06 Member
(Passed away on 04.01.2019) (Not present in the Picture)
Mrs. Sabera Aktari Jamal Director
07 Member
Mr. Afzal Hossain Director
08 Member
General Manager &
Company Secretary

Md. Ashraful Moqbul
Chairman
Md. Ashraful Moqbul is a retired Senior Secretary to the During his career, Mr. Moqbul represented Bangladesh in
Government of Bangladesh. He joined as Chairman, Board many conferences abroad and also actively participated
of Directors of Sonali Bank Limited on July 26, 2016. in state-level negotiations at home and abroad. He gained
first-hand experience on project conception, formulation,
Mr. Moqbul started his professional career with Bangladesh appraisal, implementation, monitoring, midterm & impact
Civil Service in 1981. During his 35 years tenure in the civil evaluation of development projects.
bureaucracy, he served in various key positions in different
ministries as well as in the field of administration. He served Mr. Moqbul obtained B.A (Hons.) and Masters Degree
as Deputy Director, Bangladesh Public Administration in English Language & Literature from the University of
Training Centre (BPATC); Metropolitan Magistrate, Dhaka; Dhaka. He also obtained M.S in Project Management
Additional Deputy Commissioner (Revenue) Dhaka; from the American University, Washington DC, USA. He
Deputy Commissioner, Khagrachari Hill District/Pabna/ enhanced his professional expertise by participating in a
Kushtia District; Joint Secretary, Ministry of Civil Aviation number of in-country and foreign training courses during
& Tourism; Divisional Commissioner, Chittagong Division; his career including 3rd Foundation Training, 6th Special
Additional Secretary (Development), Ministry of Education; Course on Law & Administration, Management at the Top
Chairman, Land Appeal Board; Secretary/Senior Secretary, (MATT-2) and 1st Policy Planning & Management Course.
Ministry of Textiles & Jute and Senior Secretary to
Bangladesh Parliament. He provided leadership to more Mr. Moqbul is married to Mrs. Shamima Ashraf. The couple
than 1,250 officials/ employees of National Parliament is blessed with two sons and two daughters.
Secretariat under direct supervision of the Hon’ble Speaker.
34
Md. Fazlul Haque
Director
Md. Fazlul Haque, Additional Secretary, has been appointed He worked as Upazila Nirbahi Officer at Feni Sadar and
as Director of Sonali Bank Limited on December, 2015 Banshkhali under Chittagong District and Additional
while he was working in Bank and Financial Institutions District Magistrate in Rangamati Hill District.
Division of Ministry of Finance. Mr. Haque enjoyed
various positions at the national level such as the Project Mr. Haque completed his MBA in 2005. He obtained
Director of Bangladesh Trade Policy Support Program his M.Sc. and B.Sc.(Honours) degrees in Agricultural
(BTPSP), the Joint Secretary (Relief) of the Ministry of Economics from Bangladesh Agricultural University,
Disaster Management and Relief (MoDMR), the Secretary Mymensingh. He has undergone a number of professional
of Bangladesh Jute Mills Corporation, the Director trainings at home and abroad. Working as Assistant
Administration and Director Finance in Civil Aviation Commissioner (Land) he published a book on land matters
Authority of Bangladesh and the Deputy Secretary at the named Namzari (Mutation).
Ministry of Establishment. He visited Cambodia, Sweden, London, China, South
Md. Fazlul Haque is a career civil servant and started his Korea, Japan, Singapore, Pakistan, Sri Lanka, India,
career in the administrative service of Bangladesh. The Indonesia, Ethiopia, Malaysia, USA, UAE and Saudi Arabia
first date of his joining in the service was 21st January, for the purpose of Training, knowledge sharing on
1986 (BCS 1984 Batch) as Assistant Commissioner at Administration, Disaster Management, Social Protection
Chittagong Collectorate. At the field level, he worked as Activities, Public Policies and Religious Prayers.
Assistant Commissioner (Land), at Raozan and Hathazari, Md. Fazlul Haque was born on 10th August, 1960 in a
Upazila Magistrate at Boalkhali under Chittagong District. respectable muslim family in the District of Jamalpur.

Md. Mahboob Hossain
Director
Mr. Md. Mahboob Hossain is a former Civil Service Officer also as District Magistrate and In-charge of Divisional
to the Government of Bangladesh in Administration Cadre. Commissioner. He also hailed the post of Deputy
He joined Government Service in the year 1973 on the Controller, Government Printing Press, Chief Inspector,
basis of results of the Superior Services Examination taken Factories and Inspection and Director, BISCIC. Mr. Hossain
by Bangladesh Public Service Commission for Freedom took training in Foundation Course, ACAD Course, Senior
Fighters held on 1972. Before joining in Government Staff College Course (PATC), Law Training, Academy
Service, Mr. Hossain was Professor of Kurigram College Training etc.
from 1968 to 1972. During this period, he participated in
During his Government Service, Mr. Hossain visited
the War of Liberation from Bhurungamari to Lalmonirhat
different countries in Asia including India, Sri Lanka,
front from Sector 6 under Sector Commander Late
Thailand, China, Mongolia and Europe. During these visits,
Khademul Bashar. Mr. Hossain took Guerilla Training Mr. Hossain visited and walked in Great Wall of China,
during Liberation War at Mujib Camp (initially Mukti Camp) Mausoleum of Mao Tse-Tung Mummy and Mausoleum
at Darjeeling, India. of Cenghis Khan in Mongolia. He also received several
Mr. Hossain graduated from Carmichael College in Gallantry awards from ILO and other foreign organizations.
Science and obtained Masters Degree in Botany from Mr. Hossain engaged in different social and humanitarian
Rajshahi University where he was General Secretary of organizations including General Secretary of Greater
SM Hall (Shah-Mokhdum Hall) Students’ Union Cabinet Rangpur Samity at Dhaka, Executive Committee Member
from Chatra League. During his student life at college and of Muktijoddha Officers Kalyan Samity at Dhaka and
university, Mr. Hossain actively participated many student Government Employees Welfare (OBOSHAR) Organization
movements including student movement in 1969. in ‘OBOSHAR’ Bhaban and Member of the Government
Officers Club at Dhaka. He is also a member of Audit
Mr. Hossain retired as Joint Secretary to the Government
Committee of Sonali Bank Limited.
of Bangladesh. Presently he is a Director of Sonali Bank
Limited and also a Director of Sonali Investment Limited. Mr. Md. Mahboob Hossain is the son of Late Afsar Ali
During his Government Service career as Magistrate, he Sarker and Late Majiran Nesa. Md. Mahboob Hossain hails
served different District Sub-divisional Officer, Thana from Rangpur (Kotwali) District Rangpur. He married with
Nirbahi Officer, Additional Deputy Commissioner, and spouse Amatul Hossain having a son and three daughters.
36
Sabera Aktari Jamal
Director
Mrs. Sabera Aktari Jamal, a renowned banker, has been Apart from Uttara Bank Limited, Mrs. Sabera Aktari Jamal
nominated as the Director of the Board of Directors in worked in different institutions. She was the faculty
Sonali Bank Limited on January 07, 2016. She is also the member of Bangladesh Institute of Bank Management
member of the Audit Committee and the Risk Management (BIBM).
Committee of the Board.
Mrs. Sabera participated in a good number of seminars
Mrs. Sabera started her career as a Senior Officer of Uttara and workshops on banking affairs at home and abroad.
Bank in 1983. She retired from Uttara Bank Limited as She visited different countries like the USA, UK, Malaysia,
the Deputy Managing Director. During her service, she Thailand, India and Hongkong.
was the member of the Senior Management Committee,
Credit Committee, Risk Management Committee, Asset Mrs. Sabera obtained B.A. (Hons.) and M.A. in Economics
Liability Management Committee (ALCO) and also served from the University of Chittagong.
as the Head of ICCD Department, ICT Department of the Mrs. Sabera Aktari Jamal hails from a respected Muslim
Bank. She was the Faculty Member of Uttara Bank Training family of Chittagong, Bangladesh. She is blessed with two
Institute. sons.

Afzal Hossain
Director
Mr. Afzal Hossain, freedom fighter and renowned training in office and administrative management from
personality in scout, became the Director of Sonali Bank the Institute of Business Administration, University of
Limited on January 07, 2016. He is one of the members Dhaka in 1976. Besides, he is involved with many social
of the Executive Committee and the Risk Management organizations, dedicated in helping the poor and distressed
Committee of the Board. people.
Mr, Afzal was a former Government nominated Director He visited extensively in USA, UK, France, Germany, Holland,
of Bangladesh Shilpa Rin Shangsta (now BDBL) for 3 years Canada, Japan, Australia, Korea, Philippines, China, Hong
from 1998-2001. At present, he is the member of National Kong, Singapore, Thailand, India, Pakistan, Kingdom of
Executive Committee, Bangladesh Scout. He is associated Saudi Arabia, Iran, Chile, Afghanistan, Cambodia, Sweden
with United Nations Association of Bangladesh (UNAB). and Denmark.
Mr. Hossain received President Award in 1969 as the best Mr. Afzal, son of Late Ashraf Hossain and Late Rafia Khatun,
Rover Scout from Chief Scout and President of Pakistan. was born in Dhaka on 09 January 1950. He got married
He received Silver Tiger, the highest scout award of with Mrs. Mashura Hossain, who is presently serving as
Bangladesh scouts from the Chief Scout and President of Chief Executive Officer (CEO) of the “Father of the Nation
Bangladesh in 1992. Bangabandhu Sheikh Mujibur Rahman Memorial Trust”
and blessed with two daughters.
Mr. Afzal completed his Graduation in Commerce from the
University of Dhaka. Moreover, he undertook an extensive
38
Muhammed Asadullah
Director
Mr. Muhammed Asadullah is a retired UN Executive. He Implementation & Management in New York, Vienna &
started his career as member of Bangladesh Civil Service Bangkok. Included among them are: 6-month Foundation
Cadre in 1979. In 1981, he joined the United Nations as an training course at the Bangladesh Public Administration
International Civil Servant. During his long career, he held Training Centre; 8-week rigorous training program on
many important positions in the domain of Corporate and ‘Project Formulation, Budget Preparation and Financial
Project Management locally and internationally. Presently, Discipline’; 6-week training program for Junior Professional
he is serving as Managing Director & CEO, Alpha Credit Officers on ‘Formulation & Appraisal, Monitoring, Follow-
Rating Ltd. up and Management of UN Technical Assistance Projects’
and on ‘UN Policies & Guidelines on the Technical and
Mr. Asadullah served in various key positions in different Capital Assistance Programme’ and 2-week workshop on
national and international organizations. He was a member ‘Objective Oriented Project Simulation (OOPS)’.
of the first regular batch (1979) of the Civil Service Cadre of
Bangladesh. He worked with four United Nations Agencies Mr. Asadullah obtained B.A.(Hons.) in Economics and
viz UNDP, UNHCR, UNDCP & UNOPS across the world. As M.A. in Development Economics from the University of
Assistant Secretary for UN Branch of ERD, he was engaged Dhaka in 1974 and 1975 respectively. He has also achieved
in backstopping and providing necessary support for timely certification in Software & Network Engineering and
and effective implementation of various UN aided projects Microsoft Certified Professional from USA.
on behalf of the Government of Bangladesh executed by
UNIDO, UNCDF, FAO, ITU & WTO. Mr. Asadullah, son of Dr. A.K. Sharf Uddin Ahmed (Late)
and Mrs. Shamsun Nahar (Late) was born in Kishorganj. He
Mr. Asadullah built up his professional expertise by is married with Mrs. Suhena Suhel and blessed with two
participating in a number of in-country and overseas daughters.
training courses on Project Design, Financing,

A.K.M. Kamrul Islam FCA, FCS
Director
Mr. A.K.M. Kamrul Islam was appointed as a Director to for 2005-07 and 2016-2018. He is currently Senior Vice
the Board of Directors of the Bank on 22 December 2016. President of DCCI. He also has been elected as the
He is the Chairman of the Audit Committee of the Bank. Director of Japan Bangladesh Chamber of Commerce
He is a partner of Islam Aftab Kamrul & Co. Chartered and Industries (JBCCI) for the period of 2016-2018. He
Accountants. He has special expertise in Assurance & is President of the Accounting Alumni, University of
Auditing, Taxation and Financial Consultancy Services. Dhaka and Life Member of Transparency International
Bangladesh Chapter.
Mr. Islam became Chartered Accountants and fellow
member of the Institute of Chartered Accountants of Mr. Islam is respected for his innovative ideas, concepts
Bangladesh (ICAB) in 1993. He is also a fellow and associate and various challenging endeavors in business sectors and
member of many National and International Professional social works in Bangladesh. He has 29 years of professional
Bodies. experience.
Mr. Islam is a fellow member of Institute of Chartered Mr. Islam graduated with Honors and Masters in Accounting
Secretaries of Bangladesh (ICSB); associate member of from Dhaka University.
Information System Audit and Control Association (ISACA),
USA and International Institute of Internal Auditors, Florida, He visited India, Pakistan, Nepal, Bhutan, Japan, China,
USA; life member of Bangladesh Economic Association Thailand, Singapore, Malaysia, Netherlands, Belgium,
since 1997; member of Bangladesh Society for Total Germany, Saudi Arabia etc.
Quality Management (BSTQM); founder member of Mr. Islam, son of late Alhaj A.K.M. Tajul Islam and late Hasne
Intellectual Property Association of Bangladesh (IPAB) and Ara Islam, was born in Comilla on 14 January 1959. He is
Chairman of Mashnoons Limited. married to Mrs. Syeda Kaniz Fatema who is a housewife.
Mr. Islam was an active member and elected Director They have two daughters.
of Dhaka Chamber of Commerce and Industry (DCCI)
40
Dr. Md. Nurul Alam Talukder
Director
Dr. Md. Nurul Alam Talukder joined as a Director to the Dr. Talukder is respected for his innovative ideas, concepts
Board of Directors of the Bank on 13 March 2017. He is the and various challenging endeavors in banking sector and
former Managing Director of Bangladesh House Building social works in Bangladesh. He has 35 years of professional
Finance Corporation (BHBFC). experience.
As a valiant freedom fighter, Dr. Talukder actively Dr. Talukder obtained B.A (Hons.) and Masters Degree in
participated in the War of Liberation in 1971. Economics from the University of Dhaka. He also obtained
M.S in Agricultural Economics from Kasetsart University,
Dr. Talukder is a Life Member of Bangladesh Economic Bangkok. He got his Ph.D. from Atlantic National University,
Association (BEA); Joint Secretary of Bangladesh Society California, USA. He enhanced his professional expertise by
for Training and Development (BSTD); General Member participating in a number of in-country and foreign training
of Muktijoddha Central Command Council; Life Member courses during his career including Training of Trainers,
of Tangail Zilla Samity;Member of Ghatail Kalyan Samity in Advanced course on Organizational Development, Project
Dhaka and Member of Officer’s Club-Dhaka. Formulation for Rural Low Income Group and Housing
Dr. Talukder has shown his prudence in formulating the Finance: An Engine for Inclusive Growth.
operational policy and implementing the activities, fixing He visited United Kingdom, Germany, Malaysia, Singapore,
of annual targets of investment, recovery and deposit United Arab Emirates, Kingdom of Saudi Arabia, India,
while working in Ansar VDP Unnayan Bank as General United States of America etc.
Manager. He has a research report on ‘The Administrative
Problems of the Live Stock Department of the Ministry of Dr. Talukder, son of late Md. Abul Hossain Talukder and
Fisheries and Livestock’. He presented a seminar paper late Nurjahan Begum, was born in Tangail on 01 January
on ‘An evaluation of BKB financed programs (Poverty 1954. He is married to Mrs. Marium Begum. They are
Alleviation)’. He has also a publication on ‘Emerging issues blessed with one son and two daughters.
in Bangladesh’s Rural Housing Sector’ and ‘Agricultural
Analysis on Credit Use & Resource Mobilization’.

Ishtiaque Ahmed Chowdhury
Director
He has also proven to be an effective team player and

can get things done by ensuring coherent and integrated
management atmosphere. He is one of the proponents of
situational leadership approach and can pursue tough goals
in any market scenario.
He is a dreamer, humanitarian, organizer and an art

Mr. Ishtique Ahmed Chowdhury, has been nominated as
connoisseur. He is involved in Rotary Club and held position
the Director of the Boardof Directors of Sonali Bank Limited
of President of Jahangirnagar, Dhaka unit of Rotary District.
on September 19, 2018. Prior to this, he was the Managing He is also Treasurer of Combat Hunger Project Committee of
Director & CEO of Trust Bank Limited. Rotary International District. He is a member of Uttara Club,
Having started his career with Rupali Bank Limited as Kurmitola Golf Club, and Childhood Cancer Foundation,
Probationary Officer in 1977, Mr. Chowdhury gained grounded Dhaka. He is presently Executive Member of Association
of Bankers Bangladesh (ABB). He is a “Tax Card” holder, a
experiences in many fields ranging over rural banking, SME
very prestigious status provided by NBR for 2011-2013.
banking, Wholesale Banking and Client Acquisition that
Mr. Chowdhury has also won the 13th Rapport Award for
helped him make remarkable turnaround of loss incurring
Excellence in Human Resource Development-2013.
branches into profitable ones within target time.
With a distinctive academic track record, he passed S.S.C and
Mr. Chowdhury spent half of his career time in AB Bank Limited,
H.S.C in 1968 and 1970 respectively. He holds MSS degree
the first private commercial bank of the country, from 1984
with Honors in Political Science and Law from the University
through 2002. He headed major corporate branches of the
of Dhaka. He is a DiplomaEd Associate of Institute of Bankers,
Bank including Kawran Bazar, Uttara, and Motijheel Corporate Bangladesh.
Branch. He also worked in Financial Control department of
the Bank for almost four years. He won the best manager Mr. Chowdhury visited many countries for official purpose as
award and appreciation for his outstanding performance at well as personal pleasure. He participated in a good number
the Bank. of professional trainings, workshops, and seminars at home
and abroad. He participated in a certificate course titled ‘Value
Over the last 29 years, Mr. Chowdhury’s career evolved as Creation in Banking and Strategic Management in INSEAD
a well rounded banker with adequate exposures in Strategic (Business School for the world) frame sponsored by Standard
Risk Management, Revenue Growth, Client Acquisition, and Chartered Bank from October 29 to November 01, 2015.
Operations Management.
Mr. Chowdhury was born in Sylhet in 1953. His father was
Mr. Chowdhury believes in inclusive banking and has always a member of Assam Legislative Council of British Period
put efforts to bring banking services to the doorstep of people in Assam, India. Mr. Chowdhury is married to Syeda Latifa
at large. He strongly holds that a banker has to be trustworthy Ishtiaque. Their only son, Chowdhury Ahmed Tausif Ishtiaque
and dedicated towards serving people in order to uplift their has graduated from Institute of Business Administration (IBA),
livelihood and socio economic status. University of Dhaka and is now working in HSBC Bangladesh.
42
Dr. Daulatunnahar Khanam
Director
Dr. Daulatunnahar Khanam has been director of Sonali Dr. Khanam authored important text books of Economics
Bank Limited since January 13, 2019. Prior to this, she for Higher Secondary students and Bangladesh Studies for
was the Deputy Managing Director of Bangladesh House graduate students that have become very popular among
Building Finance Corporation. the students and teachers. She has serious publications
to her credit on various economic topics in prestigious
Dr. Khanam started her banking career as Senior Officer in journals at home and abroad.
Bangladesh Krishi Bank in 1984. Right from the beginning
she applied herself to excel as a professional banker. As Dr. Khanam is a life member of Bangladesh Economic
a result, she rose steadily through ranks to become the Association and Economic Association of Jahangirnagar
Deputy Managing Director in 2018. During her long career, University and Associate member of Bangladesh Society
she held various important positions in the bank. for Training & Development Center, Dhaka.
Dr. Khanam has a distinguished academic career. She She was born in a respectable Muslim family in 1959 in the
graduated from Jahangirnagar University with honours in district of Kishoregonj. She is married to Mr. Md. Shamsul
Economics in 1981 and completed her MSc in 1983 from Kabir Khan and is blessed with two daughters and one son.
the same University. One year after she had joined BKB,
She received a scholarship of the Indian government for
Ph.D in Economics in Banaras Hindu University, Banarasi,
India. Her dissertation topic was ‘Role of Institutional
Finance in Agricultural Development of Bangladesh.’ She
was awarded Ph.D degree in 1990.
Dr. Khanam took part in international training programs,

workshops and seminars in USA, UK, Japan, Malaysia,
Singapore, Thailand, Tunisia and Turkey. She participated
in many training programs at home as well.

Md. Mofazzal Husain
Director
Mr. Md Mofazzal Husain, former Director of Janata Bank Mr. Husain received extensive training on banking related
Limited and Managing Director of Rajshahi Krishi Unnayan subjects both at home and abroad. He participated in a
Bank was appointed as a Director of Board of Directors of 5(five) months long training program at Fisk University,
Sonali Bank Limited on 13 May, 2019. Nashville, Tennessee, USA & Citicorp School of Banking,
New York, USA in 1993 organized under joint collaboration
He is a member of Audit Committee and Risk Management
Committee of the Board of Directors of Sonali Bank of FSRP (Financial Sectors Reforms Program) & USAID. He
Limited. also visited Japan, Hong Kong, Thailand, India, United Arab
Emirates, Oman, Saudi Arabia, Germany, Switzerland and
He obtained MBA degree from the Institute of Business United States of America to participate in different training
Administration (IBA), University of Dhaka in 1977. programs/seminars and for other purposes.
Mr.Husain has more than 36 (Thirty six) years of core Mr. Husain conducts training sessions on different subjects
banking experience with increasing responsibilities in specially relating to Banking, Finance and Management as
various functional areas of different banks. His banking a Resource Person/Guest Speaker in Training Institutes of
career commenced with Sonali Bank Limited as Senior
different Banks, BIBM, Financial/Business organizations
Officer on 18 February 1978 and gradually promoted to
and in different private Universities.
the rank of Managing Director of Rajshahi Krishi Unnayan
Bank on 26 July 2012. He retired on 01 October 2015. Mr. Husain is /was associated with various socio-cultural
organizations of National and International level, viz: Lions
Mr. Husain worked in Agrani Bank for about 9 years
(from September 2003 to July 2012) in the capacity of Clubs International District 315A Bangladesh, Lions Club
General Manager and Deputy Managing Director with of Dhaka, Bangladesh Cricket Board, Nazrul Academy,
full satisfaction of the policy level management and Shimanta Granthagar, Khelaghar etc.
operational management covering most of the areas of
Mr. Husain, son of Late Dr. Afsar Ali and Late Rahima Khatun,
bank.
was born on 01 October 1955 in Tangail, Bangladesh. He
During his long banking career he proved himself as an is Married to Mrs. Zeenat Sultana who is a housewife. They
outstanding & honest banker with strong personality & have been blesses with two daughters , Mahsina Tabassum
clean image in the banking arena. and Ishrat Tabassum and a son, Jamael Tanveer.
44
Md. Obayed Ullah Al Masud
Mr. Md. Obayed Ullah Al Masud has been CEO and General Credit. All through his career, he earned laurels
Managing Director of Sonali Bank Limited since 24 August, and appreciation from the authority for his extra ordinary
2016. performances in whatever capacity he worked.
Prior to his current role, Mr. Masud was the Managing Mr. Masud’s banking career has been enriched through
Director of Karmasangsthan Bank, a state-owned various professional training programs at home and
specialized bank, for two years. abroad.
Mr. Masud graduated with honours in Management from Mr. Masud was born on December 10, 1960 in a
Dhaka University in 1982 and completed his MBA majoring respectable family in Nawabgonj, Dhaka. He is married to
in Finance from IBA, the most prestigious business school Mrs. Munmun Masud and is blessed with two sons and a
in the country, in 1988. He stood first in the IBB Banking daughter.
Diploma Examination and was awarded gold medal
for his outstanding feat. He also stood third in the SSC Mr. Masud has been engaged in philanthropic and cultural
examination. activities since long. He is a poet and a number of books
under the pen name Buland Javir were published.
Mr. Masud has an illustrious banking career. He joined
Agrani Bank as Senior Officer in 1983. Thanks to his Mr. Masud also holds the following ex officio positions at
dedication to his profession, coupled with his brilliant home and abroad: Vice-Chairman, Institute of Bankers,
academic background, undoubted integrity and amiable Bangladesh (IBB); Director, Sonali Exchange Co. Inc.,
disposition, Mr. Masud rose steadily through the ranks New York, USA, Sonali Bank (UK) Limited London, UK,
to become the Deputy Managing Director in 2011 of Primary Dealers Bangladesh Limited (PDBL), Investment
Agrani Bank Limited. He became the Managing Director Corporation of Bangladesh (ICB), Sonali Investment
of Karmasangstan Bank on October 22, 2014 and worked Limited (SIL), Sonali Polaris FT Limited (SPFTL), Central
there successfully till he became the CEO and Managing Depository Bangladesh Limited (CDBL) and Industrial and
Director of Sonali Bank Limited. Infrastructure Development Finance Company Limited
(IIDFC) and Member, Governing Board, Bangladesh
In his 31-year career in Agrani Bank, Mr. Masud held a wide Institute of Bank Management (BIBM) and Executive
range of executive roles as Branch Manager, Divisional Committee, Bangladesh Foreign Exchange Dealers
Head and Circle in-charge. In Head Office he oversaw Association (BAFEDA).
International Trade Finance, Treasury, Industrial and

CEO &
MANAGING DIRECTOR
MD. OBAYED ULLAH AL MASUD
DEPUTY
MANAGING DIRECTORS
QUAMRUZZAMAN A.K.M.SAJEDUR RAHMAN

MD. ZAKIR HOSSAIN
CHOWDHURY KHAN
MD. ABNUS JAHAN PARITOSH KUMAR TARUA
46
GENERAL
MANAGERS
NEPAL CHANDRA SAHA* MD. MOTIUR RAHMAN MD. SHAMEEMUL HAQUE
NIJAMUDDIN AHMED
A.M.SHAFIQUE SWAPAN KUMAR SAHA
CHOWDHURY
MD. ABUL HASHEM MD. NURUL ISLAM MD. ABDUL GAFUR
* Under Suspension

GENERAL
MANAGERS
MD. MOZAMMEL HOQUE

MD. ABDUL JALIL MD. ALI MORTUZA
KHAN
BISWANATH PAUL MD. OBAIDUR RAHMAN MD. SHAHED ALI
SYED MD. ABUL KALAM

MD. MOYNUDDIN MD. AMIR HOSSAIN
AZAD
48
GENERAL
MANAGERS
MD. SAIFUDDIN MOHAMMED ALAUDDIN BEGUM SELINA AHMED
MOHAMMAD ASHRAF
ENAMUL HOQUE BEGUM MASUMA AKHTER
ULLAH
SUBHASH CHANDRA DAS OMAR FAROOQ MD. GOLAM KIBRIA

FCA, FCMA (CFO) KHANDAKER (CITO) (CAO)

DEPUTY
GENERAL MANAGERS
SL. NAME SL. NAME
1 Dr. Md. Hafizur Rahman 47 Mr. Md. Anwar Kadir Chowdhury
2 Mr. Md. Nurul Hoque 48 Mr. Md. Mohsin
3 Mr. Nurul Islam 49 Mr. Ramendra Kumar Raha Roy
4 Mr. Sk. Ishmail Hossain 50 Mr. Md. Nasiruddin Talukder
5 Mr. Md. Aminur Rashid 51 Mr. Gouri Tosh Paul
6 Mr. Md. Abdul Aziz 52 Begum Salma Haleem
7 Mr. Md. Modasser Hasan 53 Mr. Babul Md. Alam
8 Mr. Md. Hashim Uddin 54 Mr. Bidhan Chandra Maitra
9 Mr. Md. Mahbubur Rahman 55 Mr. Md. Billal Hossain
10 Mr. Md. Hasanul Banna 56 Mr. Motiur Rahman
11 Mr. Md. Sayedur Rahman 57 Mr. Abdul Wadud Sikder
12 Mr. Mallik Abdullah-Al-Mamun 58 Mr. Nirendra Nath Das
13 Mr. A.T.M. Akramul Hoque 59 Mr. Md. Rezaul Karim
14 Mr. Md. Anwar Hossain 60 Mr. Md. Salim Jahangir
15 Mr. Md. Shahjahan 61 Mr. Md. Kabir Husain
16 Mr. Jakir Hossain Khan 62 Mr. Md. Harun-Or-Rashid
17 Mr. Tofayel Ahmed 63 Mr. Md.Sirajul Islam
18 Mr. Md. Shamsul Alam Miah 64 Mr. Dewan Md. Moniruzzaman
19 Mr. Md. Abdul Muttalib 65 Mr. Md.Moniruzzaman
20 Mr. Ashraf Ali Patwary 66 Mr. Khokon Chandra Biswas
21 Mr. Md. Sirajul Islam 67 Mr. Tauhidul Islam
22 Mr. Md. Majibur Rahman 68 Mr. Sarder Mozibur Rahman
23 Mr. Md. Aminur Rasul 69 Mr. Md. Ezaharul Hoque Mia
50
SL. NAME SL. NAME
24 Mr. Md. Abdul Mazid 70 Mr. Manish Baran Saha
25 Mr. Md. Nazrul Ahsan 71 Mr. Mir Hasan Mohammad Zahid
26 Mr. Golam Nabi Mallick 72 Mr. Md.Anisul Hoque
27 Mr. Md. Jahangir Alam 73 Mr. Md. Nurun Nabi
28 Mr. Zahid Hossain 74 Mr. A.K.M.Salim Ahmed
29 Mr. Md. Masudul Islam 75 Mr. Abdul Mazed
30 Mr. Md. Mainuddin Miah 76 Mr. Md. Abdus Samad Azad
31 Mr. Md. Saleh 77 Mr. Gopal Chandra Golder
32 Mr. Mustaque Ahmed 78 Mr. Md. Abdul Quddus
33 Mr. Surajit Kumar Saha 79 Mr. Sarat Chandra Sarker
34 Mr. Md.Abdul Wahab 80 Mr. Md.Aminul Islam
35 Mr. Md. Moazzem Hossain 81 Mr. Ram Krishna Das
36 Mr. Saifuddin Faroque Ahmed 82 Mr. Harun-Ur- Rashid
37 Mr. Md. Abu Sayed 83 Mr. Md. Mosharraf Hossain
38 Mr. Abul Kashem Md. Fazlul Haque 84 Mr. Kazi Md. Khaled Saifuddin
39 Mr. Md. Shahiduzzaman 85 Mr. Dipok Kumar Biswas
40 Mr. Md. Shahjahan Ali Shaikh 86 Mr. Md. Jamil Hossain
41 Mr. S.M. Mashfur Rahman 87 Mr. Md.Ali Ashraf Abu Taher
42 Mr. Subash Cahndra Halder 88 Mr. Md.Zaman Molla
43 Mr. Tuhin Kanti Chakrabarty 89 Mr. Md. Masudur Rahman
44 Mr. Md.Mosharraf Hossain 90 Mr. Dilip Kumar Ghosh
45 Mr. Syed Monzurul Islam 91 Mr. Parimal Bandhu Basak
46 Begum Mahbuba Ahsan 92 Dr. Masuda Salma

MESSAGE
FROM THE CHAIRMAN
wemwgjøvwni ivn&gvwbi ivwng Bismillahir Rahmanir Rahim
m¤§vwbZ †kqvi‡nvìvie„›` Distinguished Shareholders
Avm&mvjvgy AvjvBKzg| Assalamu Alaikum.
†mvbvjx e¨vsK wjwg‡UW Gi 12Zg evwl©K mvaviY mfvq Avcbv‡ì It is indeed a great pleasure and privilege for me to welcome
¯^vMZ Rvbv‡bvi my‡hvM †c‡q cwiPvjbv cl©‡ì †Pqvig¨vb wn‡m‡e Avwg you all to the 12th Annual General Meeting of Sonali Bank
AZ¨šÍ Drdzjø Abyfe KiwQ| †mvbvjx e¨vsK wjwg‡UW-Gi cwiPvjbv Limited. On behalf of the Board of Directors and on my
own behalf, I would like to express my cordial greetings
cl©` Ges Avgvi wb‡Ri cÿ †_‡K Avcbv‡ì mKj‡K RvbvB mvì and extend warm felicitations to you all. It is your continued
m¤¢vlY I ï‡f”Qv| Avcbv‡ì Ae¨vnZ mg_©b I mn‡hvwMZvi Kvi‡b support and active co-operation that enabled us to attain
e¨vsK mKj P¨v‡jÄ †gvKv‡ejv K‡i mdjZvi aviv eRvq ivL‡Z mÿg sustained success by overcoming all challenges. I feel proud
n‡q‡Q| †mvbvjx e¨vsK wjwg‡UW Gi 2018 mv‡ji Avw_©K weeiYxmn to present before you the Annual Report of the Bank for the
evwl©K cÖwZ‡e`b Avcbv‡ì ch©v‡jvPbv, gZvgZ I Aby‡gv`‡bi Rb¨ year 2018 along with the Audited Financial Statements for
Dc¯’vcb Ki‡Z †c‡i Avwg ‡MŠie ‡eva KiwQ| your review, comments and approval.
GB ïfÿ‡Y Mfxi kÖ×vi mv‡_ ¯§iY KiwQ RvwZi RbK e½eÜz At this gracious moment, I remember with great respect the
†kL gywReyi ingvb, ¯^vaxbZv hy‡× wbnZ 30 j‡ÿi AwaK exi Father of the Nation Bangabandhu Sheikh Mujibur Rahman,
knx`- hv‡ì i³, Z¨vM I mvnwmKZvi wewbg‡q wek¦ ìev‡i ¯^vaxb more than three million martyrs whose blood, supreme
sacrifice and valour helped us to achieve the glorious
evsjv‡`‡ki Af~¨`q N‡U‡Q| independence of Bangladesh.
mviv †`ke¨vcx Qwo‡q _vKv mywekvj ‡bUIqv‡K©i AwaKvix †`‡ki Being the largest state-owned commercial bank with a large
me©e„nr ivóªª gvwjKvbvaxb evwYwR¨K e¨vsK, †mvbvjx e¨vsK wjwg‡UW branch network throughout the country, prime objective of
Gi cÖavb jÿ¨ MÖvnK I †kqvi †nvìvi‡ì m‡e©v”P mš‘wói wbðqZv Sonali Bank Limited is to provide banking services to the
people from all walks of life by ensuring best satisfaction
weav‡bi cvkvcvwk mgv‡Ri me©¯Í‡ii gvby‡li Kv‡Q e¨vswKs †mev of its customers as well as shareholders. Moreover, we
†cŠu‡Q †`qv| GKBmv‡_ RvwZ‡K †mev cÖ`v‡bi A½xKvi c~i‡Y are committed to serve the nation by participating into
miKvi KZ©„K b¨¯Í wewfbœ ai‡Yi mvgvwRK myiÿvg~jK Kg©Kv‡Û government entrusted activities for the better protection of
e¨vsK AskMÖnY K‡i Avm‡Q| the society.
Sonali Bank Limited provides 37 services for free and 14
†mvbvjx e¨vsK wjwg‡UW e„nËi Rb¯^v‡_© miKv‡ii AwfcÖvq Abyhvqx services at nominal charge for the greater interest of the
MÖvnK‡ì‡K 37wU mvwf©m webvg~‡j¨, 14wU mvwf©m bvggvÎ g~‡j¨ people in line with government aspiration. Various programs
w`‡q _v‡K| e¨vs‡K †ekwKQy †cÖvMÖvg nv‡Z †bqv n‡q‡Q †h¸‡jv have been undertaken which are socially profitable although
evwYwR¨Kfv‡e AbyK~j bv n‡jI mvgvwRKfv‡e jvfRbK| some of them may not be viable commercially.
Financial inclusion is high on the development agenda of
Avw_©K AšÍfz©w³ eZ©gvb miKv‡ii Ab¨Zg Dbœqbg~jK G‡RÛv;
the government. Sonali Bank Limited has been working
`vwi`ª¨ `~ixKi‡Y Ges †`‡ki mvaviY RbM‡Yi RxebhvÎvi gvb relentlessly to expand financial activities in line with this
Dbœq‡b miKv‡ii M„nxZ c`‡ÿcmg~n h_vh_fv‡e ev¯Íevq‡b †mvbvjx agenda to support the government’s initiatives designed
to alleviate poverty and improve the living standard of
e¨vsK wjwg‡UW eive‡ii g‡ZvB mn‡hvwMZv K‡i hv‡”Q| MÖvg Dbœqb the common people. Rural development plays a vital
`vwi`ª¨ `~ixKi‡Y we‡kl f~wgKv cvjb Ki‡Z cv‡i| G ev¯ÍeZv‡K role in eradicating poverty. The Bank has already opened
mvg‡b †i‡L †mvbvjx e¨vsK MÖv‡gi `wi`ª gvby‡li Rb¨ 10/50/100 10/50/100 Taka accounts for the poor people and total
number of such accounts reached approximately 50.72
UvKvi wnmve Pvjy K‡i‡Q Ges Avw_©K AšÍfy©w³i AvIZvq K…lK lac namely farmer’s account, Social Safety Net Program,
wnmve, mvgvwRK wbivcËv †eóbx, gyw³‡hv×v, ÿz`ª Rxeb exgv, †cvlvK Freedom fighters, Small Life Insurance program, RMG
Sector and other A/Cs under financial inclusion program.
wkí kªwgK Ges Ab¨vb¨ †kÖYx/‡ckv wfwËK cÖvq 50.72 jÿ wnmve Our main thrust, therefore, is rural development through
†Lvjv n‡q‡Q| MÖvgxY Rbc‡` Drcv`bgyLx Kg©KvÛ Ges Kg©ms¯’vb employment generation and productive activities in rural
m„wó Avgv‡ì cÖavb jÿ¨| GRb¨ e¨vsK thrust †m±i e‡j we‡ewPZ Bangladesh. From this consideration, Sonali Bank Limited is
working to redesign the operational strategy by prioritizing
gvB‡µv †µwWU, ¯§j GÛ wgwWqvg G›UvicÖvBR Ges me©vwaK g~j¨ credit allocation to micro, small and medium size enterprise
ms‡hvRbkxj Drcv`bkxj Lv‡Z FY e›Ub c×wZ cyYwe©b¨vm K‡i and especially to productive ventures which have been
A_©vqb Ki‡Q| GB me AMÖvwaKvicÖvß LvZmg~n RvZxq Av‡q Ae`vb considered as the thrust and most valued sector in the
economy. These priority sectors are playing special role in
ivLvi cvkvcvwk `vwi`ªmxgvi bx‡Pi RbM‡Yi Rxebgvb Dbœq‡bI contributing to our national income as well as upgrading
we‡kl f~wgKv ivL‡Q| the quality of life of our people living under poverty level.
Good Corporate Governance system is vital for efficient
†h‡Kvb cÖwZôv‡bi eëmv cwiPvjb, `xN© ¯’vwqZ¡ Ges †UKmB and effective business operation, long term stability and
cÖe„w×i Rb¨ Good Corporate Governance Acwinvh©| sustainable growth for any organization. The Governance
†mvbvjx e¨vs‡Ki Governance system-G eë¯’vcbvi ¯^”QZv system of Sonali Bank Limited is characterized by its design
I Revew`wnZv wbwðZ Kivi cvkvcvwk cwiPvjbv cl©` Ges to ensure transparency and accountability at all level of
eë¯’vcbvi `vwqZ¡ I KZ©e¨ myPviæiƒ‡c e›Ub Kiv n‡q‡Q| management.
52
MESSAGE FROM THE CHAIRMAN
Md. Ashraful Moqbul

Chairman
It is indeed a great pleasure

and privilege for me to
welcome you all to the 12th
Annual General Meeting
of Sonali Bank Limited.
On behalf of the Board of
Directors and on my own
behalf, I would like to express
my cordial greetings and
extend warm felicitations to you
all. It is your continued support
and active co-operation that
enabled us to attain sustained
success by overcoming
all challenges. I feel
proud to present
before you the
Annual Report
of the Bank for
the year 2018
along with the
Audited Financial
Statements for
your review,
comments and
approval.

G j‡ÿ¨ wZbwU KwgwU- wbe©vnx KwgwU, AwWU KwgwU Ges Su~wK Three committees- Executive Committee, Audit
Committee and Risk Management Committee of the
eë¯’vcbv KwgwU Kvh©Ki I `ÿZvi mv‡_ `vwqZ¡ cvj‡b cwiPvjbv Board have been working to assist the Board in discharging
cl©`‡K mn‡hvwMZv K‡i Avm‡Q| gš¿Yvjq Gi mv‡_ ¯^vÿwiZ its responsibilities efficiently and effectively. In accordance
“Annual Performance Agreement” Gi avivevwnKZvq m¤cÖwZ with “Annual Performance Agreement” signed with
the Ministry, the Bank has recently undertaken a similar
e¨vsK Zvi wbe©vnx‡ì Kvh©µ‡gi Revew`wnZv Avbq‡bi j‡ÿ¨ Abyiƒc agreement through which accountability of the executives
Pzw³cÎ cÖYqb K‡i‡Q| bZzb G Z_¨ cwigvc‡Ki gva¨‡g wbe©vnx‡ì may be measured. Performance of the executives is
Kvh©µg g~j¨vqb Kiv n‡”Q| judged by these newly designed information scale.
AZ¨šÍ Avb‡›ì mv‡_ Rvbvw”Q †h, 2018 mv‡j †mvbvjx e¨vsK This is delightfully informing you that, in 2018, Sonali Bank
Limited earned operating profit amounting to Tk. 20,257.37
wjwg‡UW-G 2,025.74 †KvwU UvKv cwiPvjb gybvdv (hv evsjv‡`‡ki million, highest ever in the banking history of Bangladesh
e¨vswKs BwZnv‡m m‡e©v”P) Ges 226.42 †KvwU UvKv bxU gybvdv AwR©Z and also achieved maximum net profit amounting to Tk.
n‡q‡Q hv †`‡ki ivóª gvwjKvbvaxb evwbwR¨K e¨vs‡Ki g‡a¨ m‡e©v”P| 2,264.21 million among the state-owned commercial
banks of the country. Operational efficiency, optimum
2018 mv‡j AvgvbZ msMÖn, FY/AwMÖg, †kÖwYK…Z FY Av`vq, utilization of fund, and high productivity regarding deposit
cwiPvjb e¨q wbqš¿Y BZ¨vw`‡Z cwiPvjb `ÿZv e„w×, Znwe‡ji collection, loans and advances, recovery from classified
m‡e©vËg eënvi I Drcv`bkxjZvi D”Pgvb GB gybvdv AR©b‡K loan, controlling of operating expense contributed to
this surge of profit during 2018. Moreover, share on
m¤¢e K‡i‡Q| ZvQvov ‡gvU Av‡qi g‡a¨ wewfbœ service oriented
income from various service oriented activities under total
AvqI h‡_ó cwigv‡Y e„w× †c‡q‡Q hv Avgv‡ì eëmvwqK cÖe„w×i income is rising undoubtedly which is an omen to our
Rb¨ Avkxe©v`¯îƒc| eZ©gvb miKv‡ii hyMvšÍKvix D‡`¨vM, iƒccyi business growth. With the epoch- making initiative of the
cvigvbweK we`y¨r ‡K›`ª cÖK‡íi Rb¨ Avgiv 2017 mv‡j 94,226.40 government, we have opened letter of credit amounting
to Tk. 942,264.00 million favoring Rooppur Atomic Energy
†KvwU UvKvi Gjwm ¯’vcb K‡iwQ hv G †`‡ki e¨vswKs BwZnv‡m GKwU Plant during 2017 which is a milestone in our banking
gvBjdjK NUbv| history.
†mvbvjx e¨vsK wjwg‡UW memgq e¨vswKs Kvh©µg cwiPvjbvq bZzb Sonali Bank Limited keeps itself abreast with the real
cÖhyw³ MÖn‡Yi cvkvcvwk AvaywbK a¨vbaviYv I me©‡kl Z‡_ï mv‡_ time information, updating ideas and approaches in the
Zvj wgwj‡q Pj‡Z m‡Pó| µgea©gvb cÖwZ‡hvwMZvgyjK evRv‡i Z_¨ areas of innovation and adopting new technology. In the
cÖhyw³i eënvi I we¯Í…wZ Ges IT cø¨vUdg©‡K kw³kvjxKiY e¨vs‡Ki face of increasing competition, IT efficiency promotes
Kg©m¤úv`b cÖwµqv‡K mnRZi Ki‡e Ges mgv‡Ri wewfbœ †kªwYi operational ease and sets a standard for quality, internal
MÖvnK‡ì Pvwn`v I cÖZ¨vkv c~iY Ki‡e| DwjøwLZ welq¸‡jv we‡ePbv productivity and improved enhanced customer service.
Till date, the Bank has also implemented Core Banking
K‡i Ges wbiew”Qbœ, wbf©i‡hvM¨, `ªæZ I ¯^íe¨‡q RbM‡Yi †`vi‡Mvovq Solution (CBS) in all of its 1213 domestic branches to
e¨vswKs Kvh©µg †cŠu‡Q †`qvi j‡ÿ¨ e¨vsK B‡Zvg‡a¨ Zvi ‡`kxq provide uninterrupted, reliable, faster and better one stop
1213 kvLvi me KwU‡K Core Banking Solution (CBS) G DbœxZ service at the doorsteps of customer at an affordable cost.
K‡i‡Q| miKvi KZ©…K †cbkb‡fvMx‡ì EFT Gi gva¨‡g †cbkb Sonali Bank Limited has Strong infrastructural facilities to
cÖ`v‡bi †h Kvh©µg MÖnY Kiv n‡q‡Q Zv ev¯Íevq‡b †mvbvjx e¨vsK implement the EFT Program initiated by the Government
wjwg‡UW Zvi gReyZ AeKvVv‡gv wb‡q Kv‡R †b‡g‡Q| for pension holders.
Avgiv Rvwb, †h ‡Kvb ai‡Yi Awbqg cÖwZ‡iv‡a m‡e©v”P mZK©Zv, We are aware that strong vigilance is a must to guard
`vwqZ¡kxj I Revew`wnZvc~Y© eë¯’vcbv Ges m‡e©v”P gvÎvi DrKl©Zv against leakage and to achieve highest excellence
AR©‡b Af¨šÍixY wbqš¿Y I cwicvjb eë¯’v kw³kvjx Kivi †Kvb through responsibility and accountability. In order to
weKí †bB| `vwqZ¡kxjZv, h_vh_ Revew`wnZv I m‡e©v”P mš‘wó wbwðZ ensure responsible and accountable management system
and highest degree of excellence, steps have been taken
Kivi j‡ÿ¨ Internal Control and Compliance Mechanism to restructure and modernize the Internal Control and
†K cybM©Vb I AvaywbKvq‡bi c`‡ÿc †bqv n‡q‡Q hv e¨vsK, Zvi Compliance Mechanism to safeguard the safety and
Kgx©, AvgvbZKvix I †kqvi‡nvìvi‡ì ¯^”QZv I wbivcËv wbwðZ soundness of the bank, its employees, depositors and
Ki‡e| shareholders.
†UKmB Dbœq‡bi Rb¨ `ÿ I †hvM¨ gvbem¤ú` AZ¨šÍ ¸iæZ¡c~Y©| Qualified and competent human resource is crucial
KviY e¨vs‡Ki mdjZv Zvi Kg©xevwnbxi `ÿZv, Ávb I for sustainable growth. Success of the Bank may be
achieved by improving skills, knowledge and productivity
Drcv`bkxjZvi Dci wbf©i K‡i| gvbe m¤ú` Dbœq‡b Z_v Kgx©‡ì of the employees. Keeping this in view, the Bank invests
mÿgZv e„w×‡Z e¨vs‡Ki wewb‡qvM D‡jøL‡hvM¨ cwigv‡Y e„w× Kiv remarkably in human resources development for capacity
n‡q‡Q| g‡bvej, m„RbkxjZv I `jMZ cÖ‡Póvi gva¨‡g wbqZ building. The goal is to empower staff and create a culture
cwieZ©bkxj MÖvn‡Ki cÖZ¨vkv c~i‡Y e¨vsK Kg©KZ©v I Kg©Pvix‡ì that encourages and rewards commitment, creativity
and team work in order to respond rapidly to the ever
mÿgZv evov‡bvB Gi cÖavb jÿ¨| ZvQvov †mvbvjx e¨vsK Zvi Kgx©
changing customer needs and market. SBL is offering
evwnbxi cvi¯úwiK †hvMv‡hv‡Mi Rb¨ wbivc` I my¯’ Kg©cwi‡ek its employees’ safe, healthy and congenial working
wbwðZ K‡i‡Q| environment. Moreover, it endeavors its best to ensure
that the employees engagement is maximized.
eëmvq `xN©‡gqv`x I ‡UKmB cÖe„w× AR©‡bi Rb¨ mgv‡Ri cÖwZ Sonali Bank Limited always recognizes its wider obligation
to the society and therefore embraces the concept of
e„nËi `vqe×Zv we‡ePbvq e¨vsK wbR¯^ CSR Kg©m~wP MÖnY K‡i Corporate Social Responsibility (CSR) which is believed to
54
Avm‡Q| ‡h‡nZz †UKmB I AšÍf~©w³g~jK cÖe„w×i Rb¨ ivóª, evRvi be fundamental to attaining the long term sustainability
and business growth. Since a perfect balance among
I mgv‡Ri g‡a¨ fvimvg¨ ivLv cÖ‡qvRb †m‡nZz e¨vs‡Ki vision the state, market and society is required for suitable
and mission Gi mv‡_ m½wZ †i‡L cÖwZôvbwU ‡`‡ki A_©bxwZ, and inclusive growth, it operates banking activities in
cwi‡ek I mvgvwRK ev¯ÍeZvi wbwi‡L Zvi eëmv cwiPvjbv K‡i economically, environmentally and socially sustainable
manner in line with its vision and mission. Since inception,
Avm‡Q| cÖwZôvi ci †_‡K ‰`bw›`b eëmv cwiPvjbvi gva¨‡g to add value, the Bank has been caring for its stakeholders
e¨vsK Zvi AskxR‡bi ¯^v_© msiÿY K‡i hv‡”Q| and the community at large through our day to day
business operation.
Rjevqy cwieZ©b †_‡K D™¢~Z ûgwKi d‡j AskxR‡bi ¯^v_© myiÿvq The Bank is responding strategically to create sustainable
e¨vsK m‡PZbfv‡e evsjv‡`k e¨vs‡Ki wb‡`©kbvi Av‡jv‡K MÖxb value for the stakeholders since grave menace posed by
e¨vswKs Kvh©µg cwiPvjbv Ki‡Q| MÖxb e¨vswKs Kg©KvÛ myôyfv‡e climate change. Various steps have been taken to ensure
cwiPvjbvi wbwgË †ek wKQy c`‡ÿc MÖnY Kiv n‡q‡Q| hvi g‡a¨ green banking. These include green financing, creating
awareness among employees for efficient use of water,
i‡q‡Q meyR A_©vqb, Kgx©evwnbxi g‡a¨ cvwb, we`y¨r I KvMR electricity and paper, giving preference to preservation
eënv‡ii wel‡q m‡PZbZv ˆZix Ges B‡Kv-wm‡÷g msiÿ‡Y of eco-system while financing commercial projects and
mn‡hvMx evwbwR¨K LvZmg~n‡K A_©vq‡bi †ÿ‡Î AMÖvwaKvi re-use of equipments. In order to harness the potentiality
†`qv| m¤cÖwZ MÖxb e¨vswKs Gi m¤¢ve¨Zv I Gi Dc‡hvwMZv of the green banking, a separate unit named “Sustainable
cÖvwßi Rb¨ evsjv‡`k e¨vs‡Ki cwjwm †gvZv‡eK e¨vs‡Ki wi¯‹ Finance Unit” under the Risk Management Division
g¨v‡bR‡g›U wWwfk‡bi Aax‡b “Sustainable Finance Unit” has been formed in line with the policy directives of
MVb Kiv n‡q‡Q| Bangladesh Bank.
Avwg Avkv Kwi, fwel¨‡Z †`ke¨vcx we¯Í…Z †bUIqvK©, `ÿ Looking toward the future & playing on our own strength,
Kg©xevwnbx I Avgv‡ì eëmvwqK mybv‡gi gva¨‡g Avgiv Avgv‡ì we have all the key success factors, necessary to scale
up, aiming at attaining brand of quality among our
mdjZvi †ÿÎ¸‡jv Av‡iv cÖmvwiZ Ki‡Z mÿg n‡ev| e¨vswKs wider network to negotiate the course of change. We can
†m±‡i Avgv‡ì eëmvwqK mybvg, †`ke¨vcx kvLv Ges D™¢vebx do it well by our well recognized market presence with
‡cÖvWv±mg~‡ni Dcw¯’wZi Kvi‡Y Avgv‡ì c‡ÿ mdj nIqv Am¤¢e a strong product portfolio, well established brand image
wKQy bq| and countrywide network.
e¨vsK cwiPvjbvi †ÿ‡Î Avgvi mnKgx© cwiPvjK‡ì mvwe©K Let me take the opportunity to thank my fellow Directors,
mn‡hvwMZv I mg_©b `v‡bi Rb¨ Avwg Zuv‡ì‡K AvšÍwiKfv‡e who have given me their generous co-operation and
support with great personal commitments. My words of
abëv` RvbvB| GQvovI e¨vs‡Ki wmBI GÛ g¨v‡bwRs wW‡i±i I thanks go to the CEO and Managing Director, all of our
wb‡ew`ZcÖvY Kg©xevwnbxi A½xKvi, AvbyMZ¨ I AvšÍwiK Ae¨vnZ officials, staff members for their commitment, loyalty and
mn‡hvwMZvi Rb¨ RvbvB mK…ZÁ Awfev`b| sincerity along with continued support and co-operation.
Avwg evsjv‡`k miKv‡ii, we‡klZt A_© gš¿Yvj‡qi Avw_©K cÖwZôvb I would like to express my sincere gratitude to the
wefvM I A_© wefvM, evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR GÛ Government of Bangladesh specially the Financial
G·‡PÄ Kwgkb, Awdm Ae `¨v ‡iwR÷ªvi Ae R‡q›U ÷K †Kv¤úvbxR Institutions Division and Finance Division of the Ministry
of Finance, Bangladesh Bank, Bangladesh Securities and
GÛ dvg©m Ges ÷K G·‡PÄ Gi cÖwZ Zv‡ì Ae¨vnZ mg_©b I Exchange Commission, Office of the Registrar of Joint
civgk© `v‡bi Rb¨ AvšÍwiK abëv` Ávcb KiwQ| DrK‡l©i wkL‡i Stock Companies and Firms, the Stock Exchange for
†cŠuQvi j‡ÿ¨ Avgv‡ì cÖ‡Póvi cÖwZ hviv mn‡hvwMZv Ae¨vnZ their continued support and guidance. I would also like
†i‡L‡Qb, cwiPvjbv cl©‡ì cÿ †_‡K †m mKj MÖvnK I c„ô‡cvlK to express my thanks to all of our valued clients, patrons,
Ges ïfvbya¨vqx‡ì cÖwZ Avwg AvšÍwiK K…ZÁZv Rvbvw”Q| ZvivB well-wishers and shareholders on behalf of the Board.
Avgv‡ì Aby‡cÖiYv I kw³i Drm| They are our source of inspiration and strength.
cwi‡k‡l ej‡Z PvB, fwel¨‡ZI Avgiv Avgv‡ì m‡e©v”P cÖqvm While concluding, we reaffirm our strong commitment to
remain “Your Trusted Partner in Innovative Banking” at all
wb‡e`‡bi gva¨‡g “Your Trusted Partner in Innovative time to come and remain pledge-bound to be with our
Banking” wn‡m‡e ‡`kevmxi cv‡k _vK‡Z AsMxKvive×| countrymen in innovative ways to add values to our work.
gnvb Avjøvn& Avgv‡ì mnvq †nvb| May almighty Allah be with us.
evsjv‡`k wPiRxwe †nvK| Long live Bangladesh.
(†gvt Avkivdzj gKeyj) (Md. Ashraful Moqbul)

†Pqvig¨vb Chairman
Board of Directors
cwiPvjbv cl©`
Sonali Bank Limited
†mvbvjx e¨vsK wjwg‡UW

FROM THE DESK OF

CEO AND MANAGING DIRECTOR
Md. Obayed Ullah Al Masud
Sonali Bank conducts its business to

provide services to the customers and
society at large and thus maximizes
values for its stakeholders in a fair,
transparent and ethical way. Profit
maximization is not the sole objective
of the Bank. Along with profit earning
we are committed to make positive
contribution to the economy and the
society as a whole in a sustainable
manner. That is why,
besides earning
profit, Sonali
Bank is proud
to bear the
responsibility of
implementing
various welfare
programs and
initiatives
of the
government,
thereby
becoming the
inseparable .
56
CEO & MANAGING DIRECTOR’S MESSAGE
m¤§vwbZ †kqvi‡nvìvie„›` Distinguished Shareholders
Avm&mvjvgy AvjvBKzg| Assalamu Alaikum.

It is a great privilege and honor for me to have the
Avwg AZ¨šÍ Avbw›`Z I †MŠievwš^Z †eva KiwQ †h, †`‡ki me©e„nr
opportunity to present and record my observation on
evwYwR¨K e¨vsK †mvbvjx e¨vsK wjwg‡UW Gi 2018 mv‡ji eëmvwqK the performance of Sonali Bank Limited, the largest
AR©‡bi Dci Avgvi ch©‡eÿY Avcbv‡ì Kv‡Q Zz‡j aivi my‡hvM commercial bank of Bangladesh, for the year 2018. I
†c‡qwQ| GRb¨ Avwg Avgv‡ì MÖvnK, mn‡hvMx I ïfvbya¨vqx‡ì would like to express my heartfelt thanks and gratitude to
our valued customers, partners and well wishers for their
Zuv‡ì Ae¨vnZ mg_©b, mn‡hvwMZv Ges Avgv‡ì cv‡k _vKvi Rb¨
active and continuing support, co-operation and strong
AvšÍwiK abëv` Rvbv‡Z PvB| association with us.
2018 mv‡j e¨vs‡Ki AR©b Zz‡j aivi Av‡M Avwg eZ©gvb ‰ewk^K I Before reflecting on the Bank’s performance in 2018, it
would be relevant to present a snapshot of global and
evsjv‡`k A_©bxwZi w`‡K Av‡jvKcvZ Ki‡Z PvB|
Bangladesh economy.
2017 mv‡ji †klv‡a© Ges 2018 mv‡ji cÖ_gv‡a© wek¦ A_©bxwZi After the strong growth during 2017 and the first half of
†ZRxfve cwijwÿZ n‡jI hy³ivóª I Px‡bi g‡a¨ evwYR¨ I ïé 2018, the escalation of trade and tariff tension between
wel‡q m„ó µgea©gvb D‡ËRbv, BD‡iv‡c cÖe„w×i MwZaviv cwieZ©b the United States and China, loss of momentum in Europe
Ges †eªw·U Gi d‡j m„ó AwbðqZvi †cÖwÿ‡Z 2018 mv‡ji †klv‡a© and uncertainty about Brexit, global economy decelerated
in the second half of 2018. Global growth remained at
wek¦ A_©bxwZi MwZ n«vm †c‡q‡Q| 2017 mv‡ji 4% Gi ¯’‡j 2018
3.3% in 2018 compare to 4.0% in 2017 and it is estimated
mv‡j ‰ewk¦K cÖe„w× 3.3% AwR©Z n‡q‡Q Ges 2019 mv‡jI Zv that in 2019 it may reach at 3.3 percent. However, IMF
3.3% G w¯’wZkxj _vK‡Z cv‡i| Z‡e AvBGgGd Gi cÖv°jb forecasts that global growth may be raised at 3.6 percent
†gvZv‡eK 2020 mvj bvMv` 3.6% ch©šÍ cÖe„w× AwR©Z n‡Z cv‡i| in 2020.
‰ewk¦K I Af¨šÍixY bvbvwea msKU †gvKv‡ejv K‡i evsjv‡`k In spite of various national and international adverse
situations, Bangladesh has been able to continue
A_©‰bwZK cÖe„w×i µgea©gvb MwZ I w¯’wZkxjZv eRvq †i‡L‡Q|
her economic development and high growth trend.
evsjv‡`k cwimsL¨vb ey¨‡iv (weweGm) Gi me©‡kl mvgwqK wnmve According to the provisional estimate of Bangladesh
Abyhvqx 2018-19 A_©eQ‡i wRwWwc cÖe„w× 8.13% n‡q‡Q hv 2017- Bureau of Statistics (BBS), GDP growth for FY2018-19
18 A_©eQ‡i wQj 7.86%| gv_vwcQz wRwWwc MZ A_©eQ‡ii PvB‡Z reached 8.13 percent. On the other hand, according to
152 gvwK©b Wjvi e„w× †c‡q 2018-19 A_©eQ‡i 1,827 gvwK©b Wjv‡i final estimate, in FY2017-18, the country’s growth rate was
7.86 percent. In FY2018-19 per capita GDP increases to
ùvwo‡q‡Q| GKBfv‡e, gv_vwcQz RvZxq Avq 2017-18 A_©eQ‡ii US$152 compare with the previous fiscal year and raises at
1,751 gvwK©b Wjvi †_‡K 2018-19 A_©eQ‡i 1,909 gvwK©b Wjv‡i US$1,827. Likewise, per capita national income increased
DbœxZ n‡q‡Q| to US$1,909 in FY2018-19 from US$1,751 in FY2017-18.
weweGm Gi me©‡kl mvgwqK wnmve Abyhvqx PjwZ 2018-19 According to the Bangladesh Bureau of Statistics (BBS),
A_©eQ‡i ‡`kx I we‡`kx wewb‡qvM MZev‡ii Zzjbvq e„w× †c‡q‡Q| both public and private investment increased in FY2018-19
from previous fiscal year. The average inflation rate stood
Lv`¨ g~j¨ùxwZ cwiwgZ _vKvq PjwZ A_©eQ‡ii cÖ_g bq gvm cq©šÍ at 5.44 percent during July 2018 to March 2019 as a result
Mo g~j¨ùxwZi nvi 5.44%| mvgwóK I Avw_©K w¯’wZkxjZv eRvq of moderate food inflation. The monetary policy stances
ivLv I `xN©‡gqv`x †UKmB A_©‰bwZK cÖe„w× AR©‡bi j‡ÿ¨ 2018- for FY2018-19 aimed at attaining price and macro-financial
19 A_©eQ‡ii gy`ªvbxwZ †KŠkj cÖYqb Kiv n‡q‡Q| `xN©‡gqv‡` stability along with sustainable growth. The monetary
†UKmB A_©‰bwZK cÖe„w× AR©‡bi j‡ÿ¨ PjwZ 2018-19 A_©eQ‡ii policy puts emphasis on inclusive, employment supportive
and environment-friendly initiative for attaining sustainable
gy`ªvbxwZ‡Z AšÍfy©w³g~jK, Kg©ms¯’vb mnvqK I cwi‡ekevÜe cÖe„w×
economic growth. Bangladesh Bank maintained stability
AR©‡bi Dci ¸iæZ¡ Av‡ivc Kiv n‡q‡Q| ‰e‡`wkK gy`ªv iÿYv‡eÿ‡Y in retaining foreign exchange reserves. At the end of 30
w¯’wZkxjZv eRvq i‡q‡Q| 30 GwcÖj 2019 Zvwi‡L ê‡`wkK gy`ªvi April 2019, the gross foreign exchange reserves stood at
w¯’wZi cwigvb wQj 32.12 wewjqb gvwK©b Wjvi| US$32.12 billion.
†mvbvjx e¨vsK †`‡k Ges we‡`‡k Zvi eëmvwqK Kg©Kv‡Ûi Sonali Bank conducts its business to provide services to
the customers and society at large and thus maximizes
gva¨‡g †`‡ki mKj ¯Í‡ii RbMY‡K †mev cÖ`vb K‡i P‡j‡Q Ges
values for its stakeholders in a fair, transparent and ethical
b¨vqm½Zfv‡e ¯^”QZv I ˆbwZKZvi mv‡_ AskxRb‡ì Rb¨ me©vwaK way. Profit maximization is not the sole objective of the
Dc‡hvwMZv wbwðZ K‡i _v‡K| ïay gybvdv AR©bB e¨vs‡Ki GKgvÎ Bank. Along with profit earning we are committed to
jÿ¨ bq; gybvdv AR©‡bi mv‡_ †UKmB Dbœq‡bi gva¨‡g †`‡ki Av_©- make positive contribution to the economy and the
society as a whole in a sustainable manner. That is why,
mvgvwRK Dbœqb wbwðZ K‡i mgv‡R BwZevPK Ae`vb ivLvI †mvbvjx besides earning profit, Sonali Bank is proud to bear the
e¨vs‡Ki GKwU jÿ¨| G Kvi‡YB †mvbvjx e¨vsK memgqB gybvdv responsibility of implementing various welfare programs
Avni‡Yi cvkvcvwk mvwe©K †mevi gvb e„w×mn miKvi KZ©„K Awc©Z and initiatives of the government, thereby becoming the
Ges miKv‡ii AvbyK‚‡j¨ m~wPZ wewea Av_©-mvgvwRK Kg©Kv‡Û inseparable partner of the noble work of the government
intended to uplift the socio-economic condition of the
f‚wgKv ivL‡Z A½xKvive×| G me Kg©KvÛ †_‡K †h `„k¨gvb Avq poor. The visible return from these services may not be

nq Zv evwYwR¨K `„wófw½‡Z Drmvne¨ÄK bv n‡jI mvgvwRK jvf-ÿwZi encouraging from business standpoint, but the return is
we‡ePbvq D”PZi Avq m„wóKvix e‡j we‡ePbv Kiv nq| high from the social-cost benefit perspective.
†mvbvjx e¨vsK wjwg‡UW GeQi eëmv‡q D‡jøL‡hvM¨ cÖmvi NUv‡Z Sonali Bank Limited achieved substantial growth during
mÿg n‡q‡Q| e¨vs‡Ki cwiPvjb gybvdv 2017 mv‡ji 1,195.49 the year under review. The operating profit of the Bank
rose from Tk. 11,954.90 million in 2017 to Tk. 20,257.38
†KvwU UvKv n‡Z 2018 mv‡j 2,025.74 †KvwU UvKvq DbœxZ n‡q‡Q
million in 2018, the highest in the banking history of
hv evsjv‡`‡ki e¨vswKs BwZnv‡m m‡e©v”P| GQvov 226.42 †KvwU Bangladesh. The bank also achieved maximum net profit
UvKv bxU gybvdv AwR©Z n‡q‡Q hv †`‡ki ivóª gvwjKvbvaxb evwYwR¨K amounting to Tk. 2,264.21 million among the state-owned
e¨vs‡Ki g‡a¨ m‡e©v”P| K÷ Ae dvÛ MZ eQ‡ii 5.95% n‡Z n«vm commercial banks of the country. The cost of Fund
†c‡q GeQi 5.38% G †b‡g G‡m‡Q| cwiPvjb `ÿZv e„w×, Kvw•ÿZ stood at 5.38% in 2018, decreasing from 5.95% in 2017.
Operational efficiency, lower cost of fund resulting from
AvgvbZ wgkªY, cwiPvjb e¨q n«vmKiY Ges bb-dv‡ÛW Avq e„w×i improved deposit mix, minimization of operating cost and
Kvi‡Y GB gybvdv AR©b m¤¢e n‡q‡Q| ZvQvov †gvU Av‡qi g‡a¨ increase in non-funded income have contributed to the
wewfbœ service oriented AvqI G cÖe„w×‡Z f~wgKv †i‡L‡Q| G higher profit. Besides, a substantial amount of income is
eQ‡ii mdjZvi †cÖwÿ‡Z 2019 mvj‡K “AR©b msnZ Kivi eQi“ generated from various services introduced. As a result of
this achievement of 2018, year of 2019 has been declared
wn‡m‡e †NvlYv Kiv n‡q‡Q| as the “Year of Consolidating Progress”.
2018 mv‡j e¨vswKs Lv‡Z Zxeª cÖwZ‡hvwMZvi gv‡SI †`kxq A_©bxwZi In the backdrop of 8.13 percent economic growth of the
kZKiv cÖvq 8.13 fvM cÖe„w×i †cÖÿvc‡U AvgvbZ e„w×i nvi kZKiv country, the Bank’s deposit grew by more than 2.78%
2.78 fv‡Mi †ekx| D‡jøL¨, 2016 mv‡j e¨vs‡Ki Avgvb‡Zi cwigvY amidst fierce competition banking sector during 2018. In
2016, Sonali Bank made a history by reaching a milestone
1.00 wUªwjqb UvKv AwZµg K‡i‡Q-GwU evsjv‡`‡ki e¨vswKs of accumulating deposits over one trillion taka, an
BwZnv‡m GKwU gvBjdjK| 2018 mv‡jI e¨vsK Avgvb‡Zi IB accomplishment that the banking sector never witnessed
Ae¯’vb a‡i †i‡L‡Q Ges Avgvb‡Zi cwigvY DË‡ivËi e„w× cv‡”Q| before. Till 2018, the Bank has held the position of deposit
firmly with gradual increase. The success of deposit
Avgv‡ì Dci m¤§vwbZ MÖvnK‡ì AwePj Av¯’vi d‡jB AvgvbZ
mobilization was due to our customers’ unflinching trust
msMÖ‡ni G mvdj¨| MÖvnK‡ì †`vi‡Mvovq mvkÖqx g~‡j¨ DbœZ †mev in us. We are introducing latest technology, multiple
`ªæZ †cuŠ‡Q †èvi j‡ÿ¨ me©vaywbK cÖhyw³ cÖeZ©b, eûwea †Wwjfvix delivery channels and enhancing our capacity to take our
P¨v‡bj Pvjy I mÿgZv e„w×i cÖ‡Póv Ae¨vnZ i‡q‡Q| m¤§vwbZ services to the customers’ reach at an affordable cost.
We are emphasizing on the introduction of tailor made
MÖvnK‡ì µgea©gvb Pvwn`v c~i‡Yi j‡ÿ¨ Zv‡ì iæwP I cÖZ¨vkv and innovative wholesale and retail products to satisfy the
Dc‡hvMx cvBKvix I LyPiv cÖWv± D™¢ve‡bi KvR Ae¨vnZ i‡q‡Q| growing and divergent needs of the valued customers.
FY I AwMÖ‡gi cwigvY 2017 mv‡ji 42,321.84 †KvwU UvKv n‡Z In loans and advances the bank registered 11% positive
e„w× †c‡q 2018 mv‡j 46,408.33 †KvwU UvKvq DbœxZ n‡q‡Q| growth, raising the total outstanding figure to Tk
46,408.33 million from Tk. 423,218.35 million in 2017.
G‡ÿ‡Î e¨vsK †Kvb wbw`©ó MÖvnK Ges cÖwZôvb †Kw›`ªK bv nIqvi The bank continued to grow and diversify its portfolios
j‡ÿ¨ eûgyLx MÖvnK wfwË M‡o †Zvjvi w`‡K g‡bv‡hvM w`‡q‡Q| in 2018 to have a diversified customer base. The whole
G j‡ÿ¨ Avw_©K I mvgvwRKfv‡e jvfRbK †ÿÎ¸‡jv‡K cÖvavb¨ portfolios were planned to avoid loan concentrations and
other principles of sound lending were followed to keep
†`qv n‡”Q| we‡klZt A_©bxwZ‡Z thrust sector e‡j we‡ewPZ the credit risk in the minimum. The plans for financing
Drcv`bkxj gvB‡µv †µwWU, ¯§j GÛ wgwWqvg G›UvicÖvBR Lv‡Z in thrust sectors like micro credit and small and medium
A_©vq‡b †mvbvjx e¨vsK cÖvavb¨ w`‡”Q| G‡Z F‡Yi SuywK Kwg‡q Avq industries, that are considered to be the growth engine of
the economy, were executed. It produced more income
e„w×i gva¨‡g mvgvwRK Dbœq‡bi mv‡_ Avkvbyiƒc Avw_©K cÖvwßiI
by reducing the portfolio risk. As a result, maximum social
m¤¢vebv _v‡K| benefit is reaped along through expected financial return.
2018 mv‡j Avgv‡ì mePvB‡Z eo mdjZv n‡jv †kÖwYK…Z FY The shining success for us in 2018 was recovery from
Av`vq| GeQi Avgiv †kÖwYK…Z FY n‡Z evsjv‡`‡k Kvh©µg classified loan. This year, among all scheduled banks in
Pvjv‡bv e¨vsK¸‡jvi g‡a¨ m‡e©v”P 3,675.72 †KvwU UvKv Av`vq Bangladesh, we recovered highest Tk. 36,757.20 million
from classified loan and the techniques used in achieving
Ki‡Z mÿg n‡qwQ, hv A_© gš¿Yvjq KZ©„K mKj e¨vs‡Ki Rb¨
this success can act as the pioneering light for other
AbyKiYxq g‡g© we‡ewPZ n‡q‡Q| d‡j, †kªwYK…Z F‡Yi nvi 2017 banks, according to the Ministry of Finance. Consequently
mv‡ji 35.28% †_‡K e¨vcK n«vm †c‡q 2018 mv‡j 26.26%- the rate of classified loan dropped down to 26.26% in
G ùvwo‡q‡Q| Avgv‡ì‡K GB nvi 10% G bvwg‡q Avb‡Z n‡e| 2018 which was 35.28% in 2017. We have to keep the rate
wbtm‡›`‡n G cwiw¯’wZ Avgv‡ì Rb¨ bZzb P¨v‡jÄ| Avgiv GUvI of Non Performing Loans (NPL) to a satisfactory level of
Rvwb cÖwZwU P¨v‡jÄ AwgZ m¤¢vebvi my‡hvM wb‡q Av‡m| P¨v‡jÄ‡K 10%. This has posed a significant challenge to us indeed
m¤ú‡` iƒcvšÍwiZ Kivi j‡ÿ¨ h_vh_ †KŠkj B‡Zvg‡a¨ MÖnY Kiv and to overcome the problem appropriate strategies have
n‡q‡Q Ges cÖ‡qvRbxq w`K wb‡`©kbv Avgv‡ì `ÿ Kg©xevwnbxi wbKU already been worked out and necessary instructions and
†cuŠ‡Q †`qv n‡q‡Q| cvidiwgs m¤ú` m„Rb I e„w×i j‡ÿ¨ e¨vs‡Ki guidance have been provided to all levels of managers. All
mKj kvLv‡K me©vZ¥K cÖ‡Póv †Rvi`vi Kivi wb‡`©kbv †`qv n‡q‡Q our branches have been instructed to extend all out efforts
Ges djvdj gwbUwis Gi Rb¨ my`„p gwbUwis eë¯’v B‡Zvg‡a¨ cÖeZ©b towards creating and enhancing performing assets. A
robust monitoring mechanism has also been put in place
Kiv n‡q‡Q| to monitor the results.
58
CEO & MANAGING DIRECTOR’S MESSAGE
†UKmB Dbœq‡bi Rb¨ `ÿ I †hvM¨ gvbem¤ú` AZ¨šÍ ¸iæZ¡c~Y©, High quality, intelligent and competent human resources are
crucial for continued growth and success of a bank. Success
KviY e¨vs‡Ki mdjZv Zvi Kg©xevwnbxi `ÿZv, Ávb I
of the bank could be achieved by improving skills, knowledge
Drcv`bkxjZvi Dci wbf©i K‡i| G we‡ePbvq wewfbœ cÖwkÿY and productivity of the employees. Keeping this in view we
Kg©m~wP I Kg©kvjvi Av‡qvRb Kiv nq hv‡Z Zviv RvZxq I emphasize on the human resource development through
AvšÍR©vwZK e¨vswKs †ÿ‡Î me©‡kl D™¢veb I weKv‡ki mv‡_ continuous training, seminars and symposiums to create a
cwiwPZ nevi cvkvcvwk Ávb I `ÿZvq mg„× n‡q DV‡Z cv‡i| talent pool especially in the managerial cadre. The Bank has
been trying to ensure that employees involve themselves
Kg©xevwnbx hv‡Z ch©vß AwfÁZvi gva¨‡g †kqvi‡nvìvi‡ì
in the running of business with adequate professional
Dc‡hvwMZv MÖvnK‡ì mš‘wó AR©‡b f~wgKv ivL‡Z cv‡i e¨vsK †m experience which in turn benefit shareholders and add value
†Póv Pvwj‡q hv‡”Q| to colleagues and help create customer satisfaction.
e¨vsK ¯^”Q wb‡qvM cÖwµqv AbymiY Ges †gav wfwËK wj½ mgZvi Sonali Bank follows transparent recruitment process and
Dci †Rvi w`‡q _v‡K| MÖvnK‡ì `ªæZ I gvbm¤§Z †mev cÖ`v‡bi stresses on gender equality based on merit. In order to
j‡ÿ¨ †mvbvjx e¨vsK Gi mKj Kg©xi Rb¨ wbivc`, my¯’ I AvšÍwiK provide better and faster services to the customers, SBL is
offering each employee safe, healthy and congenial working
Kg©cwi‡e‡ki eë¯’v K‡i‡Q| mKj kvLvq bvix Kg©KZ©v-Kg©Pvix
environment. In all branches, a separate and Clean sanitation
I MÖvnK‡ì Rb¨ Avjv`v I cwi”Qbœ †mwb‡Ukvb Ges mKj Kvh©vjq
system for its female employees and clients along with
I kvLvi Kg©KZ©v-Kg©Pvix‡ì Rb¨ Rxevbygy³ ¯^v¯’¨m¤§Z Lvevi cvwb supply of pure hygienic drinking water during office hours for
mieiv‡ni eë¯’v Kiv n‡q‡Q| Z`ycwi e¨vs‡Ki me©vZ¥K cÖ‡Póv all the employees has been arranged. Moreover, it endeavors
_v‡K GUv wbwðZ Kiv †hb Kg©xevwnbxi mv‡_ eëmv‡qi m¤ú„³Zv its best to ensure that the employees engagement with the
me©vwaK nq| business is maximized.
†h‡Kvb cÖwZôv‡bi eëmv cwiPvjb, `xN© ¯’vwqZ¡ Ges †UKmB Good corporate governance system is vital for efficient
and effective business operation, long term stability and
cÖe„w×i Rb¨ cÖvwZôvwbK mykvmb Acwinvh©| †mvbvjx e¨vs‡Ki
sustainable growth for any organization. The governance
Governance system G eë¯’vcbvi ¯^”QZv I Revew`wnZv system of Sonali Bank Limited is characterized by its design
wbwðZ Kivi cvkvcvwk cwiPvjbv cl©` I eë¯’vcbvi `vwqZ¡ I to ensure transparency and accountability at all levels of
KZ©e¨ myPviæiƒ‡c ew›UZ n‡q‡Q| e¨vs‡Ki h_vh_ functioning management. It also ensures that duties and responsibilities
Gi Rb¨ GKwU myweb¨¯Í I Kvh©Ki cwiPvjb c×wZ (good are appropriately segregated between the Board and
Management so that sufficient check and balance are
corporate governance) Acwinvh©| evsjv‡`k e¨vs‡Ki
provided to enable professionals to run the business
bxwZgvjvi Av‡jv‡K myweb¨¯Í cwiPvjb cÖwµqv ev c×wZ wbg©v‡Yi effectively and also to protect interests of shareholders and
Rb¨ Avgiv AvšÍwiKfv‡e †Póv K‡i hvw”Q| e¨vs‡Ki AUzU ¯^v¯’¨ depositors alike. Effective corporate governance is critical to
Ges MÖvnK I ‡kqvi‡nvìvi‡ì Av¯’v e„w×i wbwgË Avgiv GKwU the proper functioning of the bank. Bangladesh Bank, in line
cÖej I m¦”Q SzuwK eë¯’vcbv I wm×všÍ MÖnY cÖwµqv cÖwZwôZ Ki‡Z with the Basel Committee, provided us a framework within
which we are operating to achieve robust and transparent
mÿg n‡qwQ| mvgwMÖK K‡c©v‡iU mykvmb KvVv‡gvi GKwU Ask risk management and decision-making and, in doing so,
wn‡m‡e SzuwK wbqš¿Y eë¯’v‡K Av‡iv DbœZ Kivi Rb¨ my‡hvM¨ promote customer confidence and uphold the safety and
cwiPvjbv cl©‡ì wbe©vnx, SzuwK I AwWU KwgwU mvejxjfv‡e KvR soundness of our bank. Our policy stresses the importance of
Ki‡Q| risk governance as part of our overall corporate governance
framework and promotes the values of internal control
functions and compliance. Our three board committees -
Executive Committee, Risk Committee and Audit Committee
- see that internal control functions are effective.
Rjevqy cwieZ©b †_‡K DrmvwiZ weiƒc cÖwZwµqvi e¨vcv‡i SBL is aware of the adverse effect of climate change and
‡mvbvjx e¨vsK me©`v mRvM Ges G †cÖwÿ‡Z MÖxb e¨vswKs Kvh©vejx various steps have been taken to ensure green banking.
eûgyLx Kiv n‡q‡Q hv Af¨šÍixY cwi‡ek eë¯’vcbv †_‡K ïiæ Our green banking activities cover multiple areas which
include both in-house environment management and
K‡i MÖxb A_©vqb ch©šÍ we¯Í…Z| cwi‡ek evÜe e¨vswKs eë¯’vi
green financing. There is a green banking unit to develop,
weKvk, g~j¨vqb I eë¯’vcbvi Rb¨ GKRb EaŸ©Zb wbe©vnx‡K
evaluate and administer eco-friendly banking system. Green
`vwqZ¡ cÖ`vb Kiv n‡q‡Q| wbqwgZ MÖxb e¨vswKs Kvh©vejx cl©‡ì banking activities are being notified to the Risk Management
wi¯‹ g¨v‡bR‡g›U KwgwU‡K AewnZ Kiv n‡”Q| FY MÖnxZvi Committee of the Board on regular basis. Sonali Bank has
g~j¨vq‡b evsjv‡`k e¨vs‡Ki ERM Ges G m¤úwK©Z Acivci incorporated environmental and climate change risk as part
wb‡`©kbvi Av‡jv‡K Credit risk methodology Gi Ask of the existing credit risk methodology to asses a borrower
wn‡m‡e Environmental and climate change risk in line with Bangladesh Bank ERM (Environment Risk
AšÍf©y³ Kiv n‡q‡Q| e¨vsK cÖZ¨ÿ I c‡ivÿfv‡e cwi‡ek-evÜe Management) guide-lines and related instructions. The Bank
Kg©Kv‡Û A_©vqb K‡i Avm‡Q| is funding directly and indirectly in eco-friendly activities.

cwieZ©bkxj mg‡qi mv‡_ Zvj wgwj‡q Pjvi wbwgË †mvbvjx e¨vsK Sonali Bank Limited has made substantial investment for
the development of the ICT infrastructure, vast automation
wjwg‡UW e¨vcK A‡Uv‡gkb Kg©m~wP Ae¨vnZ †i‡L‡Q Ges mv¤úªwZK of unheard of magnitude, cyber security, manpower
mg‡q m‡e©v”P cwigvY A_© wewb‡qvM K‡i‡Q| Zxeª cÖwZ‡hvwMZvi development and research to keep itself abreast with the
gy‡LI e¨vsK Kv‡Ri ¸YMZ gv‡bi Dbœqb, Af¨šÍixY Drcv`bkxjZv changing needs of the time. In the face of increasingly fierce
competition, the bank has been continuously striving towards
e„w×, MÖvnK †mevi gv‡bvbœqb Ges Kv‡Ri ¯^”QZv wbwðZ Kivi j‡ÿ¨
bringing technology driven banking services, convenience
me©vaywbK cÖhyw³ cÖ‡qv‡Mi Aweivg cÖ‡Póv Pvwj‡q hv‡”Q| wbiwew”Qbœ, and satisfaction to its customers. It helps standardize the
wbf©i‡hvM¨, `ªæZ I ¯^íe¨‡q RbM‡Yi †`vi‡Mvovq one stop quality of work, internal productivity and improved customer
customer service Kvh©µg †cŠu‡Q †`qvi j‡ÿ¨ B‡Zvg‡a¨ e¨vs‡Ki service. The Bank has already implemented international
standard robust Core Banking Solution (CBS) system in all
¯’vbxq mKj kvLv‡K AvšÍR©vwZK gvbm¤úbœ Core Banking Solution branches in order to provide uninterrupted, reliable, faster
(CBS) †bUIqv‡K©i AvIZvq wb‡q Avmv n‡q‡Q| and instant one stop customer service at an affordable cost.
`vwqZ¡kxj K‡c©v‡iU cÖwZôvb wn‡m‡e †kqvi‡nvìvi, †`‡ki A_©bxwZ, Sonali Bank Limited as a responsible corporate citizen is fully
aware of its responsibility about how its operational activities
mgvR, Kg©xevwnbx I cwi‡e‡ki Dci e¨vs‡Ki Kvh©µ‡gi AwfNv‡Zi impact its shareholders, the economy, its employees, the
wel‡q e¨vsK c~Y©gvÎvq m‡PZb Av‡Q| ˆbwZKZvi mv‡_ eëmvwqK society and the environment. Conducting business in an
Kvh©µg cwiPvjbv, eëmv I A_©‰bwZK cÖe„w×i my‡hvM m„wó, RbM‡Yi ethical way, creating opportunities for business and economic
growth, empowering people to fulfill their aspirations,
AvKv•ÿv c~iY, cwi‡e‡ki cÖwZ jÿ¨ †i‡L A_©vqb Ges mgv‡Ri ensuring protection of environment while financing business
`yt¯’ gvby‡li cÖwZ mnvqZvi nvZ cÖmvwiZKiYB †mvbvjx e¨vs‡Ki and supporting the distressed people of the society are at
mvgvwRK `vqe×Zvi g~j jÿ¨| Avgiv wek¦vm Kwi, `vwqZ¡kxj AvPiY the heart of the corporate social responsibility of Sonali Bank
Limited. We believe that responsible conducts are directly
†`‡ki A_©‰bwZK I mvgvwRK Dbœq‡bi mv‡_ IZ‡cÖvZfv‡e RwoZ correlated with economic and social development of the
Ges GRb¨ m~PbvjMœ †_‡K e¨vsK wewea mvgvwRK I Rbwn‰Zlx country. Sonali Bank Limited has been playing a pioneering
Kg©m~wP ev¯Íevq‡b c_ cÖ`k©bKvixi f~wgKv cvjb K‡i Avm‡Q| e¨vsK role in implementing various social and philanthropic
programs. Education, sports, healthcare, human resources
wkÿv, µxov, ¯^v¯’¨, gvbe m¤ú` Dbœqb, cÖK…wZ msiÿY, mvgvwRK development, conservation of nature, creation of social
m‡PZbZv e„w×, `yt¯’ gvby‡li cybe©vmb, kxZvZ©‡ì gv‡S DòZv m„wói awareness, rehabilitation of distressed humanities, distributing
cÖqv‡m K¤^j weZiY Ges gvbweK wech©‡q wewfbœ Kg©m~wP nv‡Z †bqvi blankets amongst the cold affected people are some of the
important areas where the bank carries out its social and
gva¨‡g mvgvwRK I Rbwn‰Zlx Kg©m~wP cwiPvjbv K‡i Avm‡Q| philanthropic activities.
2018 mv‡j Avgvi mnKg©xe„›` Kg©`ÿZv I ‡ckv`vwi‡Z¡i cÖwZdjb The year 2018 was a demanding year in many respects
and a testament to the talent and professionalism of all my
NwU‡q P¨v‡jÄ †gvKv‡ejv K‡i wewfbœ †ÿ‡Î DrK‡l©i bwRi colleagues who successfully met its challenges along the
¯’vcb K‡i‡Qb| Avwg Avgvi mnKg©x‡ì K‡Vvi cwikªg, `ÿZv way. I would like to take this opportunity to extend my thanks
I A½xKv‡ii Rb¨ abëv` Rvbv‡Z PvB| e¨vsK-‡K Afxô j‡ÿ¨ to my colleagues for their efforts. I render my humble thanks
†cuŠQvi AwfhvÎvq w`K wb‡`©kbvi f~wgKv cvj‡bi Rb¨ e¨vs‡Ki and indebtedness to the Board of Directors of the Bank by
whose able direction and prudent guidance, our efforts met
cwiPvjbv cl©`‡K RvbvB K…ZÁZv I AvšÍwiK abëv`| m‡e©vcwi, with success. In addition, I am gratified for their earnest co-
A_© gš¿Yvj‡qi A_© wefvM I Avw_©K cÖwZôvb wefvM, evsjv‡`k operation. I also express my sincere thanks and deep gratitude
e¨vsK, evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ Kwgkb Ges Ab¨vb¨ to Financial Institution Division and Finance Division of the
wbqš¿K ms¯’v‡K Avgv‡ì eëmvq cwiPvjbvq mn‡hvwMZv, civgk© Ministry of Finance, Government of the Peoples Republic
of Bangladesh, Bangladesh Bank, Bangladesh Securities &
I mg_©b`v‡bi Rb¨ abëv` I K…ZÁZv RvbvB| Avwg Avkv Kwi Exchange Commission and other regulatory bodies for their
†h, D‡jøwLZ mKj AskxR‡bi mg_©b I mn‡hvwMZv eZ©gv‡bi b¨vq continued support and guidance. I also expect that their all
mvg‡bi w`b¸‡jv‡ZI Ae¨vnZ _vK‡e| out support will continue in the years to come.
Avgvi `„p wek¦vm †h, G ch©šÍ AwR©Z `„pZv I MwZB n‡e 2019 We are entering into 2019 with our resilience and the
momentum that we have gained so far. We also have with us
mv‡j Avgv‡ì m½x| Avgv‡ì AmvaviY `jMZ cÖ‡Póv, AMÖvwaKvi an excellent team, a shared set of priorities and proven track
wfwËK Kvh©µg Ges mdjZvi AZxZ †iKW©B Avgv‡ì‡K Av‡iKwU record of good performance and with all these, we do look
mdjZvi eQi Dcnvi †`‡e| forward to yet another year of success.
gnvb Avjøvn& Avgv‡ì mnvq †nvb| May Almighty Allah help us.
(†gvt Iev‡q` Djøvn Avj gvmy`) (Md. Obayed Ullah Al Masud)

wmBI GÛ g¨v‡bwRs wW‡i±i CEO & Managing Director
60

PR GRESS
THR UGH
POWER
62

DIRECTORS’
REPORT
m¤§vwbZ †kqvi‡nvìvie„›` Esteemed Shareholders
Assalamu Alaikum.
Avmmvjvgy AvjvBKzg|
With immense pleasure, we take the privilege of welcoming
†mvbvjx e¨vsK wjwg‡UW Gi 12Zg evwl©K mvaviY mfvq
you to the 12th Annual General Meeting (AGM) of Sonali
Avcbv‡ì‡K ¯^vMZ Rvbv‡Z †c‡i Avgiv AZ¨šÍ Avbw›`Z| Bank Limited. We convey our heartfelt thanks and gratitude
2018 mv‡j e¨vs‡Ki eëmv cwiPvjbvi †ÿ‡Î Avcbv‡ì mevi to all of you for your continued support and patronization
Ae¨vnZ mg_©b I Drmvn †`qvi Rb¨ Avgiv AvšÍwiKfv‡e abëv` in carrying out the business of our Bank in 2018. We
I K…ZÁZv Ávcb KiwQ| Avcbv‡ì ch©v‡jvPbv I we‡køl‡Yi Rb¨ present herewith the audited Financial Statements and the
Avgiv GLv‡b e¨vs‡Ki 31 wW‡m¤î 2018 ZvwiL wfwËK wbixwÿZ Auditors’ Report for the year ended 31 December 2018 for
Avw_©K weeiYxmn wbixÿv cÖwZ‡e`b Dc¯’vcb KiwQ| your perusal and consideration.
Sonali Bank Limited (SBL), the largest commercial bank,

iv‡óªi e„nËg evwYwR¨K e¨vsK wn‡m‡e †mvbvjx e¨vsK wjwg‡UW
has been operating and entertaining every level of people
mKj ¯Í‡ii MÖvnK‡K e¨vswKs myweav cÖ`v‡bi cvkvcvwk D™¢vebx
with banking facilities and delivering innovative banking
e¨vswKs †mev †`qvi gva¨‡g †`‡ki †UKmB Dbœq‡b f~wgKv
services for overall and sustainable development of the
ivL‡Q| gvbm¤§Z MÖvnK †mev cÖ`v‡bi j‡ÿ¨ bZzb wfkb I wgkb country. It was registered as the Public Limited Company
wb‡q G e¨vsK 03 Ryb, 2007 Zvwi‡L cvewjK wjwg‡UW †Kv¤úvbx on 03 June 2007 with a new Vision and Mission to serve
wn‡m‡e wbewÜZ nq | the nation by providing quality customer services.
G cÖwZ‡e`‡b †mvbvjx e¨vsK wjwg‡UW Gi 2017 mv‡ji eëmvwqK The activities of the Bank and its operational performance
Kvh©µg Ges djvd‡ji mv‡_ 2018 mv‡ji Zzjbvg~jK Ae¯’v Zz‡j in 2018 as compared to those in 2017 have been
aiv n‡q‡Q| Avw_©K cÖwZ‡e`bmg~n cÖ¯‘‡Zi mgq B›Uvib¨vkbvj presented in this report. The financial statements prepared
in accordance with the International Financial Reporting
wdb¨vwÝqvj wi‡cvwU©s ÷vÛvW© (AvBGdAviGm) mn Ab¨vb¨
Standards (IFRS) and other compliances with the regulatory
wbqš¿YKvix ms¯’vi wb‡`©kvejx cwicvjb Kiv n‡q‡Q| DwjøwLZ
requirements of the country for the year ended 31
wb‡`©kvejx cwicvjb K‡i 31 wW‡m¤î, 2018 mgvß eQ‡ii
December 2018 have been annexed to the report. Before
cÖ¯‘ZK…Z Avw_©K weeiYxmg~n GB cÖwZ‡e`‡bi mv‡_ mshy³ Av‡Q| presenting the details of the Bank’s performance in the
e¨vs‡Ki Avw_©K Ae¯’vi wek` wPÎ Dc¯’vc‡bi c~‡e© 2018 mv‡ji year under review, we would like to give you a snapshot of
wek¦ A_©bxwZi cvkvcvwk evsjv‡`‡ki A_©bxwZi wKQz ¸iæZ¡c~Y© the performance of the world economy in 2018 followed
‡cÖÿvc‡Ui mvims‡ÿc Dc¯’vcb Kiv n‡jv| by that of the Bangladesh economy in some key areas.
64
DIRECTORS’ REPORT
wek¦ A_©bxwZ 2018 World Economic Scenario 2018

The world economic activities showed a steady trend
hy³ivóª I Px‡bi g‡a¨ 2018 mv‡ji wØZxqv‡a© evwYR¨ I ïé in 2018 amidst some uncertainties. Economic activities
wel‡q m„ó µgea©gvb D‡ËRbvi †cÖwÿ‡Z AwbðqZvi g‡aÏ wek¦ suffered a setback in the second half of 2018 in the face
of rising tensions originating from the issues of trade and
A_©bxwZ w¯’wZkxj wQj| cvkvcvwk wKQz †`k I †m±i wfwËK wKQz
tariffs between the USA and China. Against this backdrop,
wbqvgK ‰ewk¦K Kg©Kv‡Ûi MwZaviv‡K wKQzUv evavMÖ¯’ K‡i‡Q| a combination of country and sector specific factors
d‡j 2017 mv‡j 4.0% Gi e¨vcK ‰ewk¦K cÖe„w× AwR©Z n‡jI further reduced expectation in economic activities. After
recording a robust growth of around 4 percent in 2017
2018 mv‡j Zv n«vm †c‡q 3.3% ùvwo‡q‡Q, hv 2019 Ges 2020 global growth rate remained at 3.3 percent in 2018. It has
mv‡j h_vµ‡g 3.3% Ges 3.6% _vK‡e e‡j aviYv Kiv n‡”Q| been projected to grow at a lower rate of 3.3 percent in
2019 and at 3.6 percent in 2020.
AvšÍR©vwZK gy`ªv Znwej KZ©©„K cÖKvwkZ Iqvì© B‡Kv‡bvwgK According to the World Economic Outlook April 2019
published by the International Monetary Fund, the growth
AvDUjyK, GwcÖj 2019 Abymv‡i hy³iv‡óªi A_©‰bwZK cÖe„w× rate in United States jumped to 2.9 percent in 2018
2017 mv‡ji 2.2% †_‡K 2018 mv‡j 2.9 G DbœxZ n‡q‡Q hwÌ from a moderate rate of 2.2 percent in 2017. It has been
D³ cÖe„w× mv¤úªwZK mg‡q †NvwlZ evwYR¨ bxwZmn Pxb n‡Z 200 projected to grow by a slower rate of 2.3 percent in 2019
and further by1.9 percent in 2020. The slowdown is due
wewjqb Wjvi Gi Avg`vwb c‡Yï Dci ïév‡iv‡ci d‡j 2019 to the recently announced trade measures including the
I 2020 mv‡j h_vµ‡g 2.3% I 1.9% G †b‡g Avm‡e e‡j tariffs imposed on US dollar 200 billion of US imports
aviYv Kiv n‡”Q| Aciw`‡K BD‡iv AÂ‡ji †`kmg~‡n †fvM¨cY¨ from China. The growth rate in Euro area slowed more
than expected as a combination of factors weighed on
I eëmvi MwZaviv cwieZ©b, Rvg©vbx‡Z wW‡Rj PvwjZ evn‡bi activity across countries which included among others,
be¨bxwZ cÖeZ©bRwbZ Kvi‡Y mgq‡ÿcb Ges Avw_©K bxwZi weakening of consumer and business sentiments, delays
AwbðqZv‡nZz cÖe„w×i nvi AvkvZxZfv‡e axiMwZ‡Z GwM‡q‡Q| associated with the introduction of new fuel emission
GQvov 2017 mv‡j D‡jøL‡hvM¨ A_©‰bwZK Kg©KvÛ m¤úvw`Z standards for diesel powered vehicles in Germany and
fiscal policy uncertainties. Following a significant pick
n‡jI 2018 mv‡j AvšÍ-BD‡iv AÂ‡ji BD‡iv gy`ªv wfwËK up in economic activities in 2017 exports from Euro
†`kmg~‡ni g‡a¨ cvi®úwiK eëmvwqK Ae¯’vi `ye©jZvi Kvi‡Y area countries softened considerably because of weak
Zv e¨vcKfv‡e n«vm cvq| we‡kl K‡i Rvg©vwb, d«vÝ, BUvwj, †¯úb intra-euro-area trade which exacerbated poor business
sentiments across the currency area. Growth rate in
Gi g‡Zv cÖavb BD‡iv AÂ‡ji †`kmg~‡n cÖe„w× n«vm †c‡q‡Q| major Euro area countries like Germany, France, Italy,
mvgwMÖKfv‡e BD‡iv AÂ‡j 2019 mv‡j 1.3% cÖe„w× AwR©Z n‡Z Spain slowed down in 2018. As a group, growth rate in
cv‡i, hv 2020 mv‡j 1.5% ch©šÍ cÖv°jb Kiv n‡q‡Q| Rvcv‡bi Euro area is projected to grow significantly at a lower rate
of 1.3 percent in 2019 which may marginally pick to 1.5
cÖe„w× 2017 mv‡ji 1.8% n‡Z 2018 mv‡j wb¤œMvgx n‡q 1.4% percent in 2020. Growth rate in Japan also decelerated
n‡q‡Q| hy³iv‡RÏ cÖe„w× 2017 mv‡ji 1.8% n‡Z 2018 mv‡j to 1.4 percent in 2018 from 1.8 percent in 2017. Growth
1.4% G †b‡g G‡m‡Q, hv 2019 mv‡j Av‡iv n«vm †c‡q 1.2% G rate in the UK which was recorded at 1.8 percent in 2017
declined to 1.4 percent in 2018. It is further projected to go
ùvov‡e e‡j aviYv Kiv n‡”Q|
down to 1.2 percent in 2019.
D`xqgvb evRvi I Dbœqbkxj A_©‰bwZK †`kmg~n hv †gvU wek¦ Growth rates in the emerging market and developing
economies accounting for over 70 percent of global
cÖe„w×i 70% Gi g‡Zv, †mme †`‡ki cÖe„w× êwPÎ¨c~Y© Ges growth are diverse and challenging. Growth rate in these
cÖwZØw›`¦Zvc~Y©| Gme †`‡ki cÖe„w× 2017 mv‡ji 4.8% Gi ¯’‡j countries is estimated to grow marginally at a lower rate of
2018 mv‡j 4.5% AwR©Z n‡q‡Q e‡j aviYv Kiv nq| Aciw`‡K, 4.5 percent in 2018 as against 4.8 percent in 2017. On the
2018 mv‡j ivwkqvi cÖe„w× 2.3% AwR©Z n‡q‡Q, hv 2017 mv‡j other hand, Russia’s growth rate increased by 2.3 percent
in 2018 as against the actually achieved rate of 1.6 percent
wQj 1.6%| GUv m¤¢e n‡q‡Q g~jZ Avw_©K Lv‡Zi evRvi mswkøó in 2017. This is due to the market oriented reforms
ms¯‹vig~jK Kvh©µg MÖnY Kivi Kvi‡Y| undertaken in the financial sector and in other sectors.
D`xqgvb I Dbœqbkxj Gwkqvi †`kmg~‡ni cÖe„w×i nvi hv †gvU The emerging and developing Asia which accounts for
over half of world growth will remain more or less flat in
wek¦ cÖe„w×i A‡a©K, Zv Kg‡ewk MZ K‡qK eQ‡ii g‡ZvB _vK‡e| recent years. Growth rate in these countries marginally
G †`k¸‡jvi cÖe„w× 2017 mv‡ji 6.8% n‡Z mvgvb¨ n«vm †c‡q declined to 6.4 percent in 2018 as against 6.8 percent in
2017. It has been projected to remain flat at 6.3 percent
2018 mv‡j 6.4% n‡q‡Q| cÖv°jb †gvZv‡eK cÖe„w×i GB nvi in 2019 and 2020. China’s economic growth rate cooled
2019 I 2020 mv‡j 6.3% Gi g‡ZvB _vK‡e| Px‡bi A_©‰bwZK down to stand at 6.6 percent as against 6.8 percent in
cÖe„w× 2017 mv‡ji 6.8% Gi wecix‡Z 2018 mv‡j 6.6% G 2017. In China necessary domestic regulatory tightening
to rein in debt, constrain shadow financial intermediation
w¯’i n‡q‡Q| Af¨šÍixY K‡R©i jvMvg †U‡b aiv, Avw_©K Kvh©µg and place growth on a sustainable footing contributed to
ms‡KvP‡bi Kvi‡Y †`kxq AeKvVv‡gvq wewb‡qvM w¯’wZkxj wQj| slower domestic investment particularly in infrastructure.
Spending on durable consumption goods in China
Mvox µ‡qi †ÿ‡Î cÖ‡Yv`bvq ‡gqv‡`vËx‡Y©i Kvi‡Y A‡Uv‡gvevBj softened with automobile sales declining in 2018 following
wewµ n«vm †c‡q‡Q Ges `xN©¯’vqx c‡YÏ LiP e„w× ‡c‡q‡Q| the expiration of incentive programs for car purchases.

2018 mv‡j fvi‡Zi cÖew„ ×i nvi Pxb‡K Qvwo‡q 7%(+) G w¯’i Growth rate in India surpassed that in China in recent
i‡q‡Q| G mg‡q fvi‡Zi cÖew„ × 7.1% AwR©Z n‡q‡Q Ges cieZ©x years to remain at 7 plus percent. India’s growth rate
stood at 7.1 percent in 2018 and will remain more or
`yB eQ‡iI Gi Av‡kcv‡kB w¯’i _vK‡e| Avwkqvbf~³ 5wU †`‡ki less at around that level in 2019 and 2020. Growth rate
(B‡›`v‡bwkqv, gvj‡qwkqv, wdwjwcbm, _vBj¨vÛ Ges wf‡qZbvg) in ASEAN-5 (Indonesia Malaysia, Philippines, Thailand and
cÖew„ × 2017 mv‡ji 5.4% Gi ¯’‡j 2018 mv‡j 5.2% G ‡b‡g Vietnam) declined marginally to 5.2 percent in 2018 from
G‡m‡Q| Gme †`‡k 2019 Ges 2020 mv‡j GKB nv‡i cÖew„ × AwR©Z 5.4 percent in 2017. It has been projected to remain flat at
n‡Z cv‡i| ga¨cÖvP¨, DËi AvwdªKv, AvdMvwb¯Ívb Ges cvwK¯Ívb Gi that level in 2019 and in 2020. Growth rate in the Middle
cÖew„ × 2017 mv‡ji 2.2% Gi ¯’‡j 2018 mv‡j 1.8% G AebwgZ East, North Africa, Afghanistan and Pakistan declined to
1.8 percent in 2018 from 2.2 percent in 2017. It has been
n‡q‡Q| cÖv°wjZ wnmve †gvZv‡eK 2019 mv‡j Zv n«vm †c‡q 1.5%
projected to grow by a lower rate of 1.5 percent in 2019
n‡Z cv‡i Ges 2020 mv‡j cybivq MwZ jvf Ki‡Z cv‡i| with an expected pick up in 2020.
wek¦ evRv‡i cY¨g~‡jï DaŸ©MwZ jÿ¨ Kiv hv‡”Q| d‡j DbœZ Commodity prices in the world market have been showing
a rising trend in recent years. As a result, consumer prices
I D`xqgvb A_©bxwZi †`kmg~‡n 2018 mv‡j †fvM¨c‡Yï g~j¨
have increased across the advanced and the emerging
e„w× †c‡q‡Q| DbœZ A_©bxwZi †`kmg~‡n Zv 2017 mv‡ji developing economies in 2018. In advanced economies
1.7% e„w×i ¯’‡j 2018 mv‡j 2.0% e„w× ‡c‡q‡Q hv 2019 it has increased by 2.0 percent in 2018 compared to 1.7
mv‡j wKQzUv mnbkxj n‡q 1.6% G w¯’i _vK‡e e‡j Avkv Kiv percent in 2017. It has been projected to ease in 2019 to
hv‡”Q| Ab¨w`‡K, †fwbRy‡qjv e¨ZxZ D`xqgvb Ges Dbœqbkxj stand at 1.6 percent. On the other hand, consumer prices
†`kmg~‡ni g‡a¨ †fvM¨c‡Yï g~j¨ 2017 mv‡ji 4.3% Gi ¯’‡j in emerging market and developing economies excluding
2018 mv‡j 4.8% G DbœxZ n‡q‡Q hv 2019 mv‡jI wKQzUv e„w× Venezuela increased to 4.8 percent in 2018 from 4.3
percent in 2017. It may marginally go up in 2019.
†c‡Z cv‡i|
World trade (goods and services) volume has registered a
wek¦ evwY‡Rï (cY¨ I †mev) cÖe„w× mv¤úªwZK mg‡q n«vm †c‡q‡Q| declining trend in recent years. It has come down to 3.8
we‡klfv‡e hy³ivóª I Px‡bi g‡a¨ evwYR¨hy× Ges ïév‡iv‡ci percent in 2018 compared to 5.4 percent in 2017. This is
d‡j G cÖe„w× 2017 mv‡ji 5.4% Gi ¯’‡j 2018 mv‡j 3.8% G due to the escalation of trade war between the USA and
†b‡g G‡m‡Q, hv 2019 mv‡j Av‡iv n«vm cv‡e e‡j cÖv°jb Kiv China and imposition of tariffs. It may further go down in
n‡”Q| 2019.
evsjv‡`‡ki A_©bxwZ 2018 Bangladesh Economic Scenario 2018

evsjv‡`‡ki A_©bxwZ‡Z Ae¨vnZfv‡e mvgwóK A_©‰bwZK In recent years, Bangladesh economy has witnessed
sustained macroeconomic stability, deceleration in
w¯’wZkxjZv, gy`ªvùxwZi nvi n«vm, ê‡`wkK gy`ªv gRy‡ì cÖe„w×, inflation rate, rising trend in foreign exchange reserves
µgn«vmgvb my` nvi BZ¨vw` cwijwÿZ n‡q‡Q| evsjv‡`k and declining interest rate. According to the estimates
cwimsL¨vb `ßi (weweGm) Gi wnmve g‡Z 2017-2018 A_©eQ‡i released by the Bangladesh Bureau of Statistics (BBS),
evsjv‡`‡ki A_©bxwZ 7.9% cÖe„w× AR©b K‡i‡Q hv 2016-2017 the economy of Bangladesh grew by 7.9 percent during
2017 -2018 (FY18) compared to 7.3 percent FY17 and 7.1
Ges 2015-2016 A_© eQ‡i h_vµ‡g 7.3% Ges 7.1% wQj| wkí percent in FY16. The higher growth rate in Bangladesh
I K…wl Lv‡Z D”P Drcv`bkxjZvi Kvi‡Y GB cÖe„w× AR©b m¤¢e during FY18 was mainly aided by higher production in the
n‡q‡Q| GB µgea©gvb ‡UKmB A_©‰bwZK cÖe„w× evsjv‡`k Gi industry and agricultural sectors. The sustained higher
wb¤œ Av‡qi †`k ‡_‡K wb¤œ ga¨g Av‡qi †`‡k DbœxZ n‡Z mnvqK economic growth is necessary for graduation from LDC
to lower middle income country (LMIC). Bangladesh has
n‡e| evsjv‡`k OECD Export Credit Eligibility Group 5 Gi Rb¨ also qualified for OECD Export Credit Eligibility Group 5
‡hvM¨Zv AR©b K‡i‡Q| `wÿY Gwkqvq ïaygvÎ fvi‡Zi Ae¯’vb which is only below India but ahead of all other South
evsjv‡`‡ki Dc‡i Ges Ab¨vb¨ cÖwZ‡ekx †`kmg~‡ni Ae¯’vb Asian neighbors. Bangladesh achieved Ba3 (Moody’s) and
evsjv‡`‡ki wb‡P| evsjv‡`k GKUvbv 6ô ev‡ii g‡Zv Ba3 BB- (Standard and Poor’s) for stable outlook for the sixth
consecutive years. Bangladesh also achieved BB- rating
(Moody’s) Ges BB- (Standard & Poor’s) †iwUs AR©b K‡i‡Q| for stable growth rate and strong external balances from
evsjv‡`k Fitch Rating †_‡K 4_© ev‡ii gZ w¯’wZkxj cÖe„w× Ges Fitch Ratings for the fourth time. Bangladesh is expecting
gReyZ ê‡`wkK w¯’wZi Rb¨ BB- ‡iwUsI AR©b K‡i‡Q| Avkv to reach the status of upper middle country (UMIC) by
Kiv hv‡”Q evsjv‡`k 2030 mvj ev Zvi Av‡MB D”P ga¨g Av‡qi 2030 or earlier.
†`‡k DbœxZ n‡e| In line with the above, Bangladesh economy remained
stable and resilient and recorded a highest ever growth
Dc‡iv³ Ae¯’vi ‡cÖwÿ‡Z ejv hvq, evsjv‡`‡ki A_©bxwZ w¯’wZkxj rate of 7.9 percent in FY18 which was much above 6.6
Ges kw³kvjx i‡q‡Q Ges 2017-18 A_©eQ‡i 7.9% cÖe„w× AR©b percent since FY15. This growth rate is also above that in
China (6.6 percent) and in India (7.1 percent) in 2018. This
K‡i‡Q hv 2014-15 A_©eQi Gi 6.6% †_‡K A‡bK †ekx| higher growth rate was made possible because of higher
GgbwK GB cÖe„w× Pxb (6.6% cÖe„w×) Ges fvi‡Zi (7.1% cÖe„w×) growth rate in the industry sector (12.1 percent) along with
PvB‡ZI †ekx| wkí I K…wl Lv‡Zi h_vµ‡g 12.1% I 4.2% satisfactory growth in the agricultural sector (4.2 percent).
m‡šÍvlRbK cÖe„w×i Kvi‡YB G AR©b m¤¢e n‡q‡Q| †`‡ki †gvU These two sectors accounted for about 48 percent
share in total GDP of the country. The growth rate in the
†`kR Drcv`‡b DwjøwLZ `yB Lv‡Zi Ae`vb 48%| K…wl Lv‡Zi agriculture sector increased from 3.0 percent in FY17 to 4.2
cÖe„w× c~e©eZ©x A_©eQ‡ii 3.0% n‡Z 2017-18 A_©eQ‡i 4.2% G percent in FY18. The higher growth rate in the agricultural
66
DIRECTORS’ REPORT
DbœxZ n‡q‡Q| Dc‡hvMx AvenvIqv cwiw¯’wZ, miKv‡ii Ae¨vnZ sector may be attributed to the favorable weather
condition, continued government support, availability of
mg_©b I mnvqZv Ges mgqgZ K…wl FY weZi‡Yi Kvi‡Y GB agricultural inputs and higher and timely disbursement
D”P cÖe„w× m¤¢e n‡q‡Q| µgea©gvb Af¨šÍixY Pvwn`v Ges ewa©òy of agricultural credit. Increased domestic demand and
we`y¨r Drcv`bI mvgwMÖKfv‡e A_bxwZi G cÖe„w× AR©‡b f~wgKv growing electricity generation also contributed to the
overall growth rate in the economy. The growth rate in
†i‡L‡Q| Z‡e †mev Lv‡Zi cÖe„w× c~e©eZ©x A_©eQ‡ii 6.7% n‡Z the services sector, however, declined marginally from 6.7
wKQzUv n«vm †c‡q 2017-18 A_©eQ‡i 6.4% G ‡b‡g G‡m‡Q| percent in FY17 to 6.4 percent in FY18.
evsjv‡`k e¨vsK Zvi g~`ªvbxwZ‡Z g~j¨ Ges mvgwóK `~i`„wóm¤úbœ In addition to price and macro prudential financial
stability objectives, Bangladesh Bank (BB) in its monetary
Avw_©K w¯’wZkxjZvi cÖwZ jÿ¨ ivLvi cvkvcvwk AšÍf©yw³g~jK policy stance emphasizes inclusivity and environmental
Ges cwi‡ekMZfv‡e †UKmB Kg©ms¯’vb m„wóg~jK Kvh©µg I sustainability with a view to enhancing employment
†UKmB Dbœqb cÖe„w× †KŠkj‡K ¸iæZ¡ w`‡q‡Q| G j‡ÿ¨ gy`ªvbxwZi generation activities in line with Sustainable Development
cÖwZ‡e`b ‡gvZv‡eK 2017-2018 A_©eQ‡ii Rb¨ evsjv‡`k e¨vsK Growth (SDG) strategy. With this end in view, BB pursued
GKwU mveavbx, AšÍfz©w³g~jK, g~j¨ùxwZ n«vmKvix, wewb‡qvM a cautious, inclusive, inflation limiting, investment and
growth friendly Monetary Policy during FY18 as enunciated
Ges cÖe„w× evÜe gy`ªvbxwZ †NvlYv K‡i| evsjv‡`k e¨vsK †`‡ki in its Monetary Policy Statements. Bangladesh Bank took
Avw_©K LvZ‡K cwi‡ek evÜe A_©‰bwZK Kvh©µ‡g A_©vq‡b effective initiatives to involve the country’s financial sector
Drmvn cÖ`vbmn Kvh©Kix c`‡ÿc MÖnY K‡i‡Q| evsjv‡`k e¨vsK in encouraging/ promoting environmentally sustainable
KZ…©K K…wl Ges ÿz`ª I gvSvix (SME) D‡`¨v³v Lv‡Zi g‡Zv financing of economic activities. Particular emphasis was
A_©‰bwZK AšÍf©yw³g~jK D‡`¨v‡Mi cÖwZ we‡kl ¸iæZ¡ †`qv assigned to Bangladesh Bank’s financial inclusion initiatives
especially to agriculture and SME sectors. The main thrust
n‡q‡Q| evsjv‡`‡ki A_©‰bwZK Kvh©µ‡gi cÖavb PvwjKv kw³ of economic/ business activities lies with the private sector
n‡jv †emiKvix LvZ| wKš‘, PjwZ A_©eQ‡i G Lv‡Z F‡Yi which is regarded as the “engine of growth”. But the growth
cÖe„w×i jÿ¨gvÎv w¯’i Kiv n‡q‡Q 17% hv 2016-17 I 2017-18 in private sector credit was recorded at a higher rate of
A_©eQ‡ii h_vµ‡g 15.70% I 16.80% Gi Zzjbvq D‡jøL‡hvM¨ 17.0 percent in FY18 which is significantly higher than 15.7
cwigv‡Y †ekx| gy`ªvbxwZi Kvh©Ki I mdj ev¯Íevq‡bi j‡ÿ¨ percent in FY17 and 16.8 percent programmed for FY18.
For successful implementation of its Monetary Policy,
evsjv‡`k e¨vsK A_©bxwZ‡Z gy`ªv mÂvjb gva¨g mnRxKi‡Yi Rb¨ Bangladesh Bank adopted some measures to smoothen
wKQz D‡`¨vM MÖnY K‡i‡Q| monetary transmission channels in the economy.
Broad money supply in Bangladesh increased by a lower
evsjv‡`‡k 2017-18 A_©eQ‡i Broad Money Supply 13.30% rate of 9.2 percent in FY18 against the programmed
e„w×i jÿ¨gvÎvi wecix‡Z 9.2% e„w× †c‡q‡Q| GwU 2016-17 growth of 13.3 percent for the year and which grew by
A_©eQ‡i 10.90% e„w× †c‡qwQj| e¨vsK eë¯’vq wbU ê‡`wkK 10.9 percent in FY17. The growth in broad money was
m¤ú` e„w×RwbZ Kvi‡YB g~jZ Broad Money Supply e„w× mainly driven by increase in net domestic assets (NDAs)
of the banking system. It increased by 14.0 percent in
†c‡q‡Q| G m¤ú` 2017-18 A_©eQ‡i 17.90% e„w×i jÿ¨gvÎvi FY18 against the programmed level of 17.9 percent for
wecix‡Z e„w× †c‡q‡Q 14.00%| 2016-17 A_©eQ‡i wbU the year. The actual growth rate in NDAs was, however,
ê‡`wkK m¤ú‡ì cÖe„w× wQj 10.70%| e¨vswKs Lv‡Z Af¨šÍixY lower at 10.7 percent in FY17. Domestic credit from the
banking system recorded an increase of 14.6 percent in
F‡Yi 15.80% cÖe„w×i jÿ¨gvÎvi wecix‡Z 14.60% cÖe„w× FY18 which was below the programmed growth of 15.8
AwR©Z n‡q‡Q| percent for the year.
2017-18 A_©eQ‡ii †g I Ryb gvm e¨ZxZ 2018 mv‡ji The average rate of inflation in Bangladesh has been
showing a gradual upward trend during most of the
†ewkifvM mg‡q Mo g~j¨ùxwZi nv‡i GKwU DaŸ©gyLx aviv months of FY18 except for the months of May and June
cwijwÿZ n‡q‡Q| 2017 mv‡ji RyjvB gv‡m g~j¨ùxwZ 5.45% 2018. It gradually increased from 5.45 percent at the
‡_‡K e„w× †c‡q 2017 mv‡ji wW‡m¤î gv‡m 5.7% G DbœxZ nq| end of July 2017 to 5.70 percent in December 2017. The
increasing trend in average inflation rate is mainly driven
g~jZ Lv`¨ ewnf©~Z Lv‡Z g~j¨ùxwZ wb¤œMvgx _vK‡jI Lv`¨ Lv‡Z by food inflation while non-food inflation decreased
g~jë„w×i Kvi‡b g~j¨ùxwZi DaŸ©MwZi aviv Ae¨vnZ wQj| wek¦ slowly. Increased global commodity prices and weather
evRv‡i cY¨g~‡jï DaŸ©MwZ Ges AvenvIqvRwbZ Kvi‡Y 2018 related shocks raised food inflation above 7.0 percent in
June 2018. However, core inflation rate which excludes
mv‡ji Ry‡b Lv`¨ Lv‡Z g~j¨ùxwZi nvi 7% AwZµg K‡i| Z‡e food and fuel components from the consumer price index
Lv`¨ I R¡vjvbx e¨ZxZ Ab¨vb¨ Lv‡Z g~j g~j¨ùxwZ 2017 mv‡ji basket fell from 4.9 percent in June 2017 to 3.8 percent in
4.9% n‡Z 2018 mv‡j 3.8% G †b‡g G‡m‡Q| June 2018.
The major external sector indicators in Bangladesh
evsjv‡`‡ki ¸iæZ¡c~Y© ê‡`wkK Lv‡Zi m~PKmg~‡n 2017-18 A_© showed a mixed trend during FY18. The import payments
eQ‡i wgkÖ cÖebZv jÿ¨ Kiv hvq| G mg‡q ißvwb Avq cÖe„w×i increased at a faster rate than that of growth in export
wecix‡Z Avg`vwb e¨q `ªæZMwZ‡Z e„w× cvq| Avg`vwb e¨q 25.2% earnings. Export earnings increased by a meager 6.4
e„w×i wecix‡Z ißvwb Avq gvÎ 6.4% e„w× cvq| ißvwb Avq percent while the growth in import payments 25.2
percent. Export earnings stood at US dollar 36,205 million
2017 mv‡ji 34,019 wgwjqb gvwK©b Wjv‡ii wecix‡Z 2018 which was US dollar 34,019 million in FY17. On the other
mv‡j 36,205 wgwjqb gvwK©b Wjv‡i DcbxZ n‡q‡Q| Aciw`‡K, hand, during the same period the total import payments
Avg`vwb e¨q D³ mg‡q 54,463 wgwjqb Wjv‡i ùvovq hv c~e©eZ©x increased to US dollar 54,463 million from US dollar 43,491
million in FY17. As import payments increased at a faster
A_©eQ‡i 43,491 wgwjqb Wjvi wQj| Z‡e, †mev Ges cÖv_wgK I rate than that in export earnings, trade deficit widened
wØZxq Avqmn †gvU Avq wnmve 8,478 wgwjqb gvwK©b Wjvi DØ„Ë significantly. However, the services and income account

ùvwo‡q‡Q| PjwZ wnmv‡ei w¯’wZ c~e©eZ©x eQ‡ii 1,331 wgwjqb along with primary and secondary income registered a
gvwK©b Wjvi NvUwZ †_‡K Av‡iv FYvZ¡K n‡q 2018 A_© eQ‡i surplus of US dollar 8,478 million in FY18. Current account
9,780 wgwjqb gvwK©b Wjvi FYvZ¡K w¯’wZ ùvwo‡q‡Q| g~jab I balance further deteriorated to US dollar (-) 9,780 million
in FY18 from US dollar (-) 1,331 million in FY17. The capital
Avw_©K wnmve 2017 A_©eQ‡ii 4,647 wgwjqb Wjv‡ii wecix‡Z
and financial account surplus increased to US dollar 9,368
Av‡iv e„w× †c‡q 2018 A_©eQ‡i 9,368 wgwjqb D×…Z i‡q‡Q|
million in FY18 from UUS dollar 4,647 million in FY17. Thus,
mvgwMªKfv‡e e¨vjvÝ Ae †c‡g›U Gi DØ„Ë 2017 A_©eQ‡i
overall balance of payments surplus turned into a deficit of
3,169 wgwjqb gvwK©b Wjv‡ii ¯’‡j 2018 A_©eQ‡i (-)885 US dollar (-) 885 million in FY18 which was US dollar 3,169
wgwjqb gvwK©b Wjv‡ii DcbxZ n‡q‡Q| million in FY17.
d‡ib †iwgU¨v‡Ýi AvšÍtcÖevn 2016-17 A_©eQ‡ii 14.5% The inflow of inward remittances increased by 17.3 percent
n«v‡mi wecix‡Z 2017-18 A_©eQ‡i 17.3% e„w× †c‡q‡Q| 2017 at the end of FY18 compared with the negative growth of
mvj n‡Z †mŠwÀvi‡ei evsjv‡`kx kÖwgK‡ì Rb¨ kÖgevRvi 14.5 percent in FY17. Foreign remittances increased due
to the opening of labor market by the Kingdom of Saudi
Db¥y³ nIqvq †iwgU¨vÝ cÖevn DaŸ©Mvgx n‡q‡Q| GQvov †iwgU¨vÝ
Arabia for the Bangladeshi workers in 2017. To ease the
cÖev‡ni ¯^vfvweK cÖwµqv mnRxKi‡bi j‡ÿ¨ evsjv‡`k e¨vsK formal channel, Bangladesh Bank reduced the security
¯’vbxq e¨vs‡Ki mv‡_ evB‡ii G·‡PÄ nvD‡Ri wmwKDwiwU deposit requirement for the exchange houses abroad to
wW‡cvwR‡Ui cwigvb n«vm K‡i‡Q| ê‡`wkK gy`ªvi mwÂwZ 2018 establish drawing arrangement with local banks. Foreign
exchange reserves held with the Bangladesh Bank
mv‡ji Ryb gv‡m 32,943 wgwjqb gvwK©b Wjv‡i DbœxZ n‡q‡Q hv
increased to US dollar 32,943 million at the end of June
2017 mv‡ji Ryb gvm †k‡l wQj 33,493 wgwjqb gvwK©b Wjvi| 2018 which was US dollar 33,493 million at the end of
†`‡ki eZ©gvb GB ‰e‡`wkK gy`ªvi mwÂwZ 8 gv‡mi Avg`vwb g~j¨ June 2017. This level of foreign exchange reserves is good
cwi‡kv‡ai Rb¨ ch©vß| enough to cover about eight month’s equivalent of import
payments of the country.
The emergence of Sonali Bank Limited

†mvbvjx e¨vsK wjwg‡UW Gi AvZ¥cÖKvk
Sonali Bank was established under the Bangladesh Banks
evsjv‡`k e¨vsK (b¨vkbvjvB‡Rkb) AW©vi-1972, ivóªcwZi
(Nationalization) Order-1972, President’s Order No-26 of
Aa¨v‡`k bs-26, 1972 †gvZv‡eK b¨vkbvj e¨vsK Ae cvwK¯Ívb,
1972, through the merger and nationalization of 1) The
w` e¨vsK Ae evn&Iqvjcyi Ges w` wcÖwgqvi e¨vsK wjwg‡UW
National Bank of Pakistan 2) The Bank of Bhawalpur Ltd.
A½xf~ZKiY Ges RvZxqKi‡Yi gva¨‡g †mvbvjx e¨vsK AvZ¥cÖKvk
and 3) The Premier Bank Ltd. Later on, it was registered
K‡i| cieZ©x‡Z †Kv¤úvbx AvBb, 1994 Abyhvqx 03 Ryb, 2007
as a Public Limited Company under the Company Act,
Zvwi‡L R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m G wbeÜ‡bi gva¨‡g GwU
1994 on 03 June, 2007, with joint stock companies and
cvewjK wjwg‡UW †Kv¤úvbx wn‡m‡e ¯^vaxbfv‡e Kvh©µg ïiæ K‡i|
firms to make it operationally independent. Bangladesh
evsjv‡`k e¨vsK KZ…©K e¨vsK †Kv¤úvbx AvBb, 1991 Abyhvqx 05
Bank issued Banking License on 05 June, 2007 under the
Ryb, 2007 Zvwi‡L †mvbvjx e¨vsK wjwg‡UW ‡K e¨vswKs jvB‡mÝ
Bank Company Act, 1991. Sonali Bank Limited took over
cÖ`vb Kiv nq| MYcÖRvZš¿x evsjv‡`k miKvi Ges †mvbvjx e¨vsK
the business of Sonali Bank on 15 November, 2007 with
wjwg‡UW Gi g‡a¨ m¤úvw`Z Pzw³ †gvZv‡eK 15 b‡f¤î, 2007
mv‡j GKwU Vendor`s Agreement ¯^vÿ‡ii gva¨‡g †mvbvjx all assets, liabilities, benefits, rights, powers, authorities,
e¨vs‡Ki mKj m¤ú`, `vq, myweav, AwaKvi, ÿgZv, KZ©„Z¡, privileges, borrowing and responsibility as going concern
we‡klvwaKvi, avi Ges `vwqZ¡ AwaMÖn‡Yi gva¨‡g †mvbvjx e¨vsK under a Vendor`s Agreement signed between the
wjwg‡UW GKwU Pjgvb mZ¡v (Going Concern) wn‡m‡e cÖwZôv Government of the People’s Republic of Bangladesh
cvq| †`‡ki Af¨šÍ‡i i‡q‡Q 1213wU Ges †`‡ki evB‡i 2wU and Sonali Bank Limited. It is the largest state-owned
kvLvmn †gvU 1215wU kvLv wb‡q eZ©gv‡b GwU †`‡ki me©e„nr commercial bank having 1213 local branches, 2 foreign
ivóªvqZ¡ evwYwR¨K e¨vsK| GQvov 46wU wcÖwÝcvj Awdm, 16wU branches, 46 Principle Offices, 16 Regional Offices, 11 GM
wiwRIbvj Awdm, 11wU wRGg Awdm, kvLv mg~‡ni g‡a¨ 32wU Offices, 32 Corporate Branches (including Local Office),
K‡c©v‡iU kvLv, 48wU GwW kvLv i‡q‡Q| †mvbvjx e¨vsK wjwg‡UW 45 AD branches and two subsidiaries- named Sonali
Gi 2wU mvewmwWqvix cÖwZôvb i‡q‡Q-(1) †mvbvjx G·‡PÄ †Kv¤úvbx Exchange Co. Inc. (SECI), USA and Sonali Investment
BbK‡c©v‡i‡UW (SECI), BDGmG Ges (2) †mvbvjx Bb‡f÷‡g›U Limited (SIL) in Bangladesh; and two associates named,
wjwg‡UW (SIL), evsjv‡`k| GQvov, `yÕwU G‡mvwm‡qUmI i‡q‡Q (1) Sonali Bank (UK) Ltd. and Sonali Polaris FT Limited. The
†mvbvjx e¨vsK (BD‡K) wjwg‡UW Ges (2) †mvbvjx †cvjvwik GdwU address of the registered office of the Bank is 35-42, 44
wjwg‡UW| G e¨vs‡Ki wbewÜZ Awdm wVKvbv n‡jv 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh. The Board
gwZwSj, evwYwR¨K GjvKv, XvKv, evsjv‡`k| e¨vs‡Ki cwiPvjbv of Directors of the Bank consists of 08 (eight) members
cl©` 08(AvU) m`m¨ wewkó hvi cÖavb n‡jb GKRb ‡Pqvig¨vb| headed by a Chairman. The Directors are representatives
cwiPvjbv cl©‡ì m`m¨MY Kg©`ÿZv I Áv‡bi Av‡jv‡K weKwkZ from both public and private sectors with high proficiency
miKvwi Ges †emiKvwi Lv‡Zi cÖwZwbwa| and scholastic background in their respective areas.
68
DIRECTORS’ REPORT
evsjv‡`‡ki e¨vswKs †m±‡i †mvbvjx e¨vsK wjwg‡UW Sonali Bank Limited- In the Banking Sector of Bangladesh
After emergence of Bangladesh, the role of Sonali Bank
evsjv‡`‡ki Afz¨`‡qi ci n‡Z †`‡ki A_©bxwZ Ges e¨vswKs
Limited in advancement of economy and in flourishing
†m±‡ii weKvk Gi †ÿ‡Î ‡mvbvjx e¨vs‡Ki f‚wgKv Ab¯^xKvh©| banking business is indispensable. Since independence,
ZrKvjxb evsjv‡`k cybM©V‡b Ges cieZ©x‡Z †`‡ki eëmv Sonali Bank has been working as the co-partner of
evwYR¨ cÖmvi, wkíKviLvbv ¯’vcb, Avg`vwb-ißvwb mn mvwe©K complying government policy in rebuilding Bangladesh
Dbœqbg~jK Kg©Kv‡Û †mvbvjx e¨vsK miKv‡ii mn‡hvMx wn‡m‡e along with expansion of business, establishment of
industries, import-export etc. At the end of 2018, amount
KvR K‡i Avm‡Q| 2018 mvj †k‡l †`‡ki e¨vswKs †m±‡ii †gvU
of deposits and loans & advances of Sonali Bank Limited
1,07,98,300.00 †KvwU UvKv AvgvbZ Ges 90,15,930.00 †KvwU are Tk. 1,093,866.19 million and Tk. 464,083.32 million
UvKv FY I AwMÖg Gi wecix‡Z †mvbvjx e¨vs‡Ki AvgvbZ Ges respectively, 10.13% of total deposits of Tk. 10,798,300.00
FY I AwMÖ‡gi cwigvb h_vµ‡g 1,09,368.82 †KvwU UvKv Ges million and 5.15% of total loans & advances of Tk.
46,408.33 †KvwU UvKv, kZKiv wn‡m‡e h_vµ‡g 10.13% I 9,015,930.00 million of the banking sector of Bangladesh.
5.15%| 2018 mv‡j †mvbvjx e¨vsK ‡kÖYxK…Z FY n‡Z ‡`‡ki During 2018, Sonali Bank has recovered Tk. 36,760.00
million from classified loan which is the highest among
Zdwmwj e¨vsK¸‡jvi g‡a¨ m‡e©v”P 3,676.00 †KvwU UvKv Av`vq the scheduled banks in Bangladesh and can act as the
K‡i hv A_© gš¿Yvjq KZ©„K mKj e¨vs‡Ki Rb¨ AbyKiYxq g‡g© pioneering light for other banks, according to the Ministry
we‡ewPZ n‡q‡Q| ‡`‡ki †gvU ê‡`wkK †iwgU¨vÝ 1,549.64 of Finance. In inward foreign remittance, Sonali Bank’s
†KvwU BDGm Wjv‡ii wecix‡Z †mvbvjx e¨vsK wjwg‡UW Gi contribution is US$ 1,137.33 million which is 7.34% of total
Ae`vb 113.73 †KvwU BDGm Wjvi ev 7.34%| D‡jøwLZ eQ‡i foreign remittance of US$ 15,496.41 million of Bangladesh.
Moreover, the Bank deposited a total of Tk. 9,851.60
†mvbvjx e¨vsK AwMÖg Ki, Dr‡m Ki Ges f¨vU eve` †gvU 985.16
million in 2018 as advance tax, tax at source and VAT to
†KvwU UvKv miKvwi †KvlvMv‡i Rgv K‡i‡Q| the national exchequer.
†mvbvjx e¨vsK wjwg‡UW Gi mvewmwWqvwi †Kv¤úvbxmg~n Subsidiaries of Sonali Bank Limited
†mvbvjx e¨vsK wjwg‡U‡Wi kZfvM gvwjKvbvaxb 2wU mvewmwWqvix Sonali Bank Limited has two 100 percent owned
cÖwZôvb i‡q‡Q- (1) †mvbvjx G·‡PÄ †Kv¤úvwb BbK‡c©v‡i‡UW subsidiaries named Sonali Exchange Co. Inc. (SECI) and
(SECI) Ges (2) †mvbvjx Bb‡f÷‡g›U wjwg‡UW (SIL)| Sonali Investment Limited (SIL).
†mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) Sonali Exchange Co. Inc. (SECI)
wbDBq‡K©i †÷U wWcvU©‡g‡›Ui AvBb ‡gvZv‡eK 4 GwcÖj, 1994 A subsidiary company incorporated on 4 April, 1994
Zvwi‡L †mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) GKwU under the laws of the state of New York, Department,
†Kv¤úvbxiƒ‡c cÖwZwôZ nq| GwU 12 wW‡m¤î 1994 ZvwiL †_‡K commenced its operations as an International Money
AvšÍR©vwZKfv‡e A_© †cÖiYKvix cÖwZôvb wn‡m‡e Kvh©µg ïiæ Remitter from 12 December, 1994. At present, Sonali
K‡i| eZ©gv‡b hy³iv‡óªi 5wU A½iv‡R¨ Gi 10wU kvLv i‡q‡Q| Exchange Co. Inc. has 10 branches in 5 states of the USA.
Gi cwi‡kvwaZ g~jab 9,50,000 gvwK©b Wjvi| The paid up capital of this subsidiary is US$ 950,000.
†mvbvjx Bb‡f÷‡g›U wjwg‡UW (SIL) Sonali Investment Limited (SIL)

To protect the interest of small and common investors in
cuywRevRv‡ii ÿz`ª I mvaviY wewb‡qvMKvix‡ì ¯^v_© myiÿvi Rb¨ the capital market, SBL has established a wholly owned
†mvbvjx evsK wjwg‡UW m¤ú~Y© wbR¯^ A_©vq‡b 2010 mv‡j Ò†mvbvjx subsidiary named ‘Sonali Investment Limited’ in 2010.
Bb‡f÷‡g›U wjwg‡UWÕÕ (SIL) bv‡g GKwU mvewmwWqvix †Kv¤úvbx Sonali Investment Limited was registered under the
cÖwZôv K‡i| 20 GwcÖj 2010 mv‡j †Kv¤úvbx AvBb, 1994 Company Act 1994 as a public company limited by shares
Abymv‡i †mvbvjx Bb‡f÷‡g›U wjwg‡UW wbewÜZ nq Ges R‡q›U on 20 April , 2010 and commenced its operations from 22
÷K †Kv¤úvbxR GÛ dvg©m Gi wbKU wbewÜZ nIqvi ci 22 GwcÖj April, 2010 as the company got registered with Registrar of
Joint Stock Companies and Firms. SIL received merchant
2010 ZvwiL †_‡K Gi Kvh©µg ïiæ K‡i| weGmBwm †_‡K 05
banking license from BSEC on 5 August, 2010. In terms of
AvMó 2010 Zvwi‡L SIL gv‡P©›U e¨vswKs Gi jvB‡mÝ AR©b K‡i| the guidelines of Bangladesh Bank, SBL has converted
evsjv‡`k e¨vs‡Ki bxwZgvjvi Av‡jv‡K †mvbvjx e¨vsK wjwg‡UW its merchant banking unit into a separate subsidiary
Zvi gv‡P©›U e¨vswKs BDwbU‡K GKwU c„_K mvewmwWqvix †Kv¤úvbx company titled Sonali Investment Limited (SIL) with the
wn‡m‡e †mvbvjx Bb‡f÷‡g›U wjwg‡UW G iƒcvšÍi K‡i| Gi jÿ¨ objectives of undertaking full-fledged merchant banking
wQj gv‡P©›U e¨vsK wn‡m‡e c~Y© Kvh©µg cwiPvjbv Kiv hvi g‡a¨ operations namely, issue management and underwriting
Bmy¨ g¨v‡bR‡g›U, AvÛvi ivBwUs Ges ‡cvU©‡dvwjI g¨v‡bR‡g›U and portfolio management. The authorized capital of this
subsidiary is Tk. 5,000 million and paid up capital is Tk.
Ab¨Zg| Gi Aby‡gvw`Z g~ja‡bi cwigvY 500.00 †KvwU UvKv
2,000 million. At present, SIL is operating through 05 (five)
Ges cwi‡kvwaZ g~ja‡bi cwigvY 200.00 †KvwU UvKv| eZ©gv‡b branches of which 04 (four) branches are in Dhaka and 01
SIL Gi XvKvq 4wU Ges Lyjbvq 1wU kvLv i‡q‡Q| (one) branch in Khulna.

G‡mvwm‡qUm& Ae ‡mvbvjx e¨vsK wjwg‡UW Associates of Sonali Bank Limited
†mvbvjx e¨vsK (BD‡K) wjwg‡UW Sonali Bank (UK) Limited

With a view to remitting money and providing other
A_© †cÖiY I Ab¨vb¨ Avw_©K †mev cÖ`v‡bi jÿ¨ wb‡q †mvbvjx
financial services to its customers, a company under the
†UªW GÛ wdb¨vÝ (BD‡K) wjwg‡UW bv‡g GKwU †Kv¤úvbx 30 Ryb name and style Sonali Trade and Finance (UK) Limited
1999 mv‡j cÖwZwôZ nq| GwU cÖwZwôZ nq BD‡K †Kv¤úvbxR was incorporated on 30 June 1999 as an associate under
AvBb 1985 Abyhvqx| cieZ©x‡Z 7 wW‡m¤î 2001 ZvwiL †_‡K the UK Companies Act 1985. Subsequently the company
wdbvwÝqvj mvwf©‡mm A‡_vwiwU, BD‡K KZ©„K †Kv¤úvbxwU‡K was allowed to commence its function as a bank from 7
e¨vswKs Kvh©µg Kivi Aby‡gv`b †`q| Gi bvg cwieZ©b K‡i December 2001 by the financial services authority of UK.
cieZ©x‡Z ‡mvbvjx e¨vsK (BD‡K) wjwg‡UW Kiv nq| cybM©V‡bi The name was changed later on as Sonali Bank (UK) Ltd.
gva¨‡g MYcÖRvZš¿x evsjv‡`k miKvi Gi gvwjKvbvq 51% †kqvi and restructured the ownership of the company having
Ges †mvbvjx e¨vsK wjwg‡UW gvwjKvbvq 49% †kqvi i‡q‡Q| 51% share capital in favor of the Government of People’s
†mvbvjx e¨vsK (BD‡K) wjwg‡UW Gi cwi‡kvwaZ g~ja‡bi Republic of Bangladesh and remaining 49% by Sonali Bank
cwigvY 2.50 †KvwU weªwUk cvDÛ| GB †Kv¤úvbxi g~j KvR n‡jv Limited. The paid up capital of Sonali Bank (UK) is GBP
25.00 million. The main functions of the associate are to
†mvbvjx e¨vsK wjwg‡UW Ges evsjv‡`kx Ab¨vb¨ e¨vs‡Ki Gjwm
advise, negotiate, confirm and provide discount facilities
we‡ji GWfvBwRs, †b‡Mvwk‡qU, Kbdvg© Ges wWmKvD›U myweav against L/Cs originating from SBL and other Bangladeshi
cÖ`vb Kiv| GwU †mvbvjx e¨vsKmn Ab¨vb¨ evsjv‡`kx e¨vs‡Ki banks. The company also handles remittance business for
ê‡`wkK †iwg‡UÝ eëmv cwiPvjbvq mnvqZv K‡i _v‡K| SBL and other banks of Bangladesh.
†mvbvjx †cvjvwik GdwU wjwg‡UW (SPFTL) Sonali Polaris FT Limited (SPFTL)
†mvbvjx †cvjvwik GdwU wjwg‡UW †Kv¤úvbx AvBb, 1994 Abymv‡i Sonali Polaris FT Limited was incorporated in Bangladesh
25 Rvbyqvix 2012 ZvwiL †_‡K evsjv‡`‡k cÖvB‡fU wjwg‡UW as a private limited company on 25 January 2012 under
†Kv¤úvbx wn‡m‡e ZvwjKvfy³ nq| †Kv¤úvbxwU 01 †deªæqvix 2012 the Companies Act, 1994. The company commenced its
†_‡K eëmvwqK Kvh©µg kyiæ K‡i| Gi 51% †kqv‡ii gvwjKvbv business operations on 1 February, 2012. The 51% share
aviY K‡i †cvjvwik wdbvwÝqvj †UK‡bvjwRm wjwg‡UW, fviZ capital of the company is owned by the Polaris Financial
Technologies Ltd. India, 35% by Sonali Bank Limited and
I 35% †kqv‡ii gvwjKvbv †mvbvjx e¨vsK wjwg‡UW Ges Aewkó
the remaining 10% and 4% by Bangladesh Commerce
10% I 4% †kqv‡ii gvwjKvbv h_vµ‡g evsjv‡`k Kgvm© e¨vsK Bank Ltd. and Pantho Soft Ltd. respectively. The principal
wjwg‡UW I cvš’ mdU wjwg‡UW Gi| GB †Kv¤úvbxi cÖavb KvR activities of the company are to customize, enhance,
n‡jv evsjv‡`‡ki e¨vsKmg~‡n Bb‡U‡j± †Kvi e¨vswKs mwjDkb modify and implement intellect Core Banking Solution
(CBS) eënvi Dc‡hvMx, DbœZ, m¤úv`b Kiv Ges ev¯Íevqb Kiv| (CBS) software in banks in Bangladesh.
†kqvi †nvìvm© BK¨zBwU Shareholders’ Equity
31 wW‡m¤î 2018 ZvwiL wfwËK e¨vs‡Ki †kqvi †nvìvm© BK¨zBwU The shareholders’ equity of the Bank stood at Tk. 70,136.87
ùvwo‡q‡Q 7,013.69 †KvwU UvKv hv 31 wW‡m¤î 2017 †Z wQj million as on 31 December 2018 which was Tk. 66,087.46
6,608.75 †KvwU UvKv| D³ eQ‡i cwi‡kvwaZ gyjab e„w×i j‡ÿ¨ million in 2017. The paid-up capital of the Bank stood at
evsjv‡`k miKv‡ii A_© gš¿Yvjq KZ©„K cÖ`Ë AviI 400.00 Tk. 45,300.00 million as on 31 December 2017 after Tk.
†KvwU UvKv hy³ nIqvq e¨vs‡Ki cwi‡kvwaZ gyjab 4,530.00 4,000.00 million contributed by the Ministry of Finance,
†KvwU UvKvq DbœxZ nq| Government of Bangladesh.
Position as of Changes
wb¤œ ewY©Z ZvwiL ch©šÍ Ae¯’v Sl. Shareholder's (Tk. in million)
†kqvi †nvìvm© (wgwjqb UvKvq)
µt bs cwieZ©b (%) No. Equity
BK¨zBwU 2018 2017 %
2018 2017
1. Paid-Up Capital 45300.00 41300.00 9.69
1 cwi‡kvwaZ g~jab 45300.00 41300.00 9.69
2 mswewae× mwÂwZ 11449.95 10199.68 12.26 2. Statutory reserve 11449.95 10199.68 12.26
Other reserve
Ab¨vb¨ mwÂwZ Ges
3 26844.84 29037.78 (7.55) 3. and Revaluation 26844.84 29037.78 (7.55)
cybtg~jv¨vqb mwÂwZ
reserve
4 wi‡UBbW Avwb©sm (13457.92) (14450.00) 6.87 4. Retained earnings (13457.92) (14450.00) 6.87
†gvU †kqvi‡nvìvi BKz¨BwU 70136.87 66087.46 6.13
Total Shareholder's Equity 70136.87 66087.46 6.13
b¨vkbvj †bUIqvK© National Network
miKvwi bxwZ ev¯Íevqb Ges †`‡ki A_©‰bwZK Dbœq‡bi Rb¨ SBL has established branch network throughout complying
†mvbvjx e¨vsK wjwg‡UW mviv †`‡k Zvi kvLv †bUIqvK© cÖwZôv with the government policy and for the economic
K‡i‡Q| †fŠMwjKfv‡e †`‡ki mKj ¸iæZ¡c~Y© ¯’vbmn ‡`‡ki mKj development of the country. Geographically all important
Dc‡Rjv, `~ieZ©x MÖvgxY Rbc‡` †mvbvjx e¨vs‡Ki kvLv †bUIqvK© locations including all Upazillas, important places as well
as remote rural areas of the country have been brought
we¯Í„Z| `yÕwU ê‡`wkK kvLvmn 2018 mv‡j †mvbvjx e¨vs‡Ki †gvU under the network coverage of the Bank. With the addition
kvLvi msL¨v 1215wU| 2wU ê‡`wkK kvLvmn †`‡ki Af¨šÍ‡i of two overseas branches, total number of branches
MÖvgxY Rbc‡` 701wU Ges 514wU kvLv kni AÂ‡j Aew¯’Z| increased to 1215 in 2018. Alongwith 2 foreign branches
70
DIRECTORS’ REPORT
cÖavb Kvh©vjqmn 74wU cªkvmwbK Kvh©vj‡qi gva¨‡g kvLvmg~‡ni 701 branches are located in rural areas and 514 branches
in urban areas. The overall functions of the branches are
mvwe©K Kvh©µg Z`viwK Ges cwiPvjbv Kiv nq| cÖavb Kvh©vj‡qi supervised and monitored by 74 administrative offices.
Aax‡b 45wU wefvMmn, XvKv-1, XvKv-2, PÆMÖvg, Lyjbv, ivRkvnx, The administrative structure comprises 45 divisions under
ewikvj, wm‡jU, iscyi, dwi`cyi, gqgbwmsn I Kzwgjøvq 11wU Head Office in Dhaka; 11 General Managers Offices
Dhaka-1, Dhaka-2, Chittagong, Khulna, Rajshahi, Barisal,
wRGg Awdm, 46wU wcÖwÝcvj Awdm, 16wU wiwRIbvj Awdm Gi Sylhet, Rangpur, Faridpur, Mymensingh and Comilla;
mgš^‡q cÖkvmwbK KvVv‡gv MwVZ| 46 Principal Offices and 16 Regional Offices located at
different parts of the country.
AvšÍR©vwZK †bUIqvK© International Network
cÖevmx evsjv‡`kx‡ì ‡iwgU¨vÝ mviv †`‡k Zv‡ì DcKvi‡fvMx‡ì SBL takes various initiatives to provide direct banking
wbKU †cÖi‡Yi †ÿ‡Î †mvbvjx e¨vsK wjwg‡UW wewfbœ ai‡Yi services and channel foreign remittance from the
D‡`¨vM MÖnY K‡i‡Q| e¨vs‡Ki mn‡hvMx cÖwZôvb †mvbvjx e¨vsK expatriate Bangladeshis. The Bank’s associate Sonali Bank
(BD‡K) wjwg‡UW Zvi `yBwU kvLv wb‡q hy³iv‡R¨ ê‡`wkK (UK) Limited and its 02 branches facilitate foreign trade
evwY‡Rï mv‡_ mv‡_ ê‡`wkK gy`ªv †cÖi‡Y mnvqZv K‡i Avm‡Q| and remittance channeling business. Its subsidiary in USA,
hy³iv‡óª †mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) 9wU Sonali Exchange Company Incorporated (SECI) and its
kvLv wb‡q ê‡`wkK gy`ªv wbivc‡` Ges `ªæZZg mg‡qi g‡a¨ 09(nine) branches assist in channeling remittance to the
†cÖi‡Y ¸iæZ¡cyY© f~wgKv cvjb Ki‡Q| Ab¨vb¨ e¨vsK Ges G·‡PÄ home country safely and swiftly. SBL has also Taka Drawing
Arrangement (TDA) with other banks and exchanges so
nvD‡mi mv‡_ †mvbvjx e¨vs‡Ki Taka Drawing Arrangement
that people living abroad can send their money through
(TDA) Av‡Q hv‡Z K‡i cÖevmx evsjv‡`kxiv Zv‡ì †cÖwiZ A_©
proper banking channel to the beneficiaries in the country.
e¨vswKs P¨v‡b‡ji gva¨‡g †`‡k Zv‡ì DcKvi‡fvMx‡ì wbKU Currently, there are 74 Taka Drawing Agency (TDA) of the
†cÖiY Ki‡Z cv‡ib| eZ©gv‡b we‡k¦i 12wU †`‡ki mv‡_ 74wU Bank scattered in 12 countries over the world. Besides,
Taka Drawing Arrangement (TDA) Av‡Q| GQvov, 2018 mv‡j by starting correspondent banking with new 09(nine)
bZzb 9wU e¨vs‡Ki mv‡_ K‡imc‡Û›U m¤ú‡K©i gva¨‡g we‡k¦i banks in 2018, the Bank has extended customer services
94wU †`‡ki 463wU e¨vs‡Ki 669wU kvLv/mn‡hvMx ms¯’vi Øviv by establishing correspondent relationship with a total of
ê‡`wkK gy`ªv †`‡k †cÖi‡Yi eë¯’v Av‡Q| GB m¤ú‡K©i gva¨‡g 669 branches/ subsidiaries of 463 Banks located in 94
e¨vs‡Ki ê‡`wkK gy`ªv Ges ê‡`wkK evwYR¨ e„w× cv‡”Q| wb‡¤œ countries in the world. The correspondent relationship
†Uwe‡ji gva¨‡g d‡ib K‡imc‡Û›U Ges kvLvi Z_¨ Dc¯’vcb has significantly increased the Bank’s foreign exchange
Kiv n‡jvt and trade business simultaneously. A tabuler presentation
of foreign correspondents and branches is given below:
bs ‡`‡ki bvg kvLv G·‡PÄ nvDm wUwWG AviGgG
Sl. Name of the country Branch Exchange TDA RMA
1. wm½vcyi 4 26
1. Singapore 4 26
2. hy³ivR¨ 2 4 26
2. UK 2 4 26
3. BD G B 15 20
3. UAE 15 20
4. †K Gm G 8 16
4. KSA 8 16
5. gvj‡qwkqv 6 12 5. Malaysia 6 12
6. KvZvi 3 6 6. Qatar 3 6
7. Igvb 9 4 7. OMAN 9 4
8. evnivBb 5 3 8. Bahrain 5 3
9. Kz‡qZ 9 8 9. Kuwait 9 8
10. hy³ivóª 9 3 66 10. USA 9 3 66
11. fviZ 2 21 11. INDIA 2 21
12. Ab¨vb¨ 8 461 12. OTHERS 8 461
†gvU 4 9 74 669 TOTAL 4 9 74 669
Avw_©K AšÍf©yw³KiY Financial Inclusion

miKv‡ii Avw_©K AšÍf©yw³KiY cÖKí Z¡ivwš^Z Kivi Kv‡R With a view to assisting the government in accelerating
financial inclusion program, SBL is working relentlessly to
mnvqZvi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW Zvi wekvj †bUIqv‡K©i bring simple, poor and unbanked people under the coverage
gva¨‡g †`‡ki kni I MÖvgxY Rbc‡ì mvaviY, Mwie Ges e¨vswKs of banking system with its enormous branch network in
eë¯’vi evB‡ii RbMb‡K e¨vswKs †mevi AvIZvq Avbq‡bi rural and urban areas. In SBL, total number of accounts
Rb¨ wbijmfv‡e KvR K‡i hv‡”Q| 2018 mv‡j e¨vs‡K Avw_©K under financial inclusion program stands at 5,072,247 in
AšÍf©yw³KiY cÖK‡íi AvIZvq †gvU wnmve msL¨v ùvwo‡q‡Q 2018. Among them, the number of farmer’s accounts has
50,72,247 wU| Gi g‡a¨ gvÎ 10 UvKv Rgv`v‡bi gva¨‡g †Lvjv reached to 1,503,593 at the end of 31 December, 2018 by
K…lK‡ì wnmve msL¨v n‡jv 15,03,593 wU| 31 wW‡m¤î 2018 encouraging opening accounts of the farmers at an initial
deposit of Tk. 10.00. As of 31 December 2018, the number of
ZvwiL wfwËK gyw³‡hv×v wnmve, ¯‹zj QvÎ/QvÎx‡ì wnmve Ges freedom fighters accounts, school going student’s accounts
mvgvwRK wbivcËv †e÷bxi AvIZvq wnmve msL¨v h_vµ‡g and accounts under social safety net programs are 190,833;
1,90,833wU; 61,449wU Ges 23,21,319wU| †`‡ki RbM‡Yi 61,449 and 2,321,319 respectively. A large segment of the
GKwU e„nr Ask we‡kl K‡i MÖvgxY Mwie RbMY, Mwie K…lK, bvix population particularly the rural poor people, poor farmers,
D‡`¨v³v, †cvkvK kÖwgK G e¨vs‡Ki gva¨‡g e¨vswKs †mevi my‡hvM women entreprenuers and garments workers have got the
access to banking services through SBL. Moreover, various

cv‡”Q| AwaKš‘, myweav ewÂZ RbM‡Yi GKwU eo As‡ki Rb¨ innovative deposit products with lucrative interest rate and
credit facilities with a relaxing rate have been successfully
AvKl©Yxq my‡ì AvgvbZ ‡cÖvWv±m& Ges FY ¯‹xg Pvjy Kiv n‡q‡Q launched to attract deprived segment of population. Details
hv Financial Inclusion cÖwZ‡e`‡b wek`fv‡e Zz‡j aiv n‡q‡Q| have been presented in the “Report on Financial Inclusion”
Z_¨ cÖhyw³ Ges AbjvBb e¨vswKs †mevmg~n Information Technology and Online Banking Services
†mvbvjx e¨vsK wjwg‡UW mvd‡jï mv‡_ eZ©gv‡b evsjv‡`‡ki Sonali Bank Limited has successfully turned itself as the
mePvB‡Z eo AbjvBb e¨vs‡K iƒcvšÍwiZ n‡q‡Q| 1989 mv‡j largest online Bank in Bangladesh. Since inauguration of
the journey towards automation in 1989, a total of 1213
A‡Uv‡gk‡bi hvÎv ïiæi ci †_‡K G ch©šÍ e¨vs‡Ki 1213 wU
domestic branches are rendering digitalized banking
¯’vbxq kvLvi me¸‡jvB Bb‡U‡j± CBS fzw³i gva¨‡g e¨vs‡Ki services through Intellect CBS software and Online Any
MÖvnK‡ì wWwRUvj c×wZ‡Z e¨vswKs †mev cÖ`vb Ki‡Q Ges Ab- Branch Banking (Online ABB) to the clients of the Bank.
jvBb G¨vwb eªvÂ e¨vswKs (Online ABB) Pvjy K‡i‡Q| Av‡iv Av‡Q The Bank also introduced RMS Plus, NPSB, RTGS, BACH,
AviGgGm cøvm, GbwcGmwe, AviwUwRGm, e¨vP, weBGdwUGb, BEFTN, Online Govt. Transaction, Tax Soft., Sonali Sheba,
Ab-jvBb miKvwi †jb‡`b, U¨v· mdUIq¨vi, †mvbvjx †mev, Pension paying Software, CCTV installation etc. At present,
†cbkb cÖ`vb mdUIq¨vi, wmwmwUwf cÖwZ¯’vcb BZ¨vw`| eZ©gv‡b 1215 CBS branches have been operating SMS banking
mKj kvLvq CBS Gi gva¨‡g MÖvnK‡ì SMS e¨vswKs myweav service. Registered customers can get their account
transaction and balance through SMS. These technology
cÖ`vb Kiv n‡”Q| wbewÜZ MÖvnKMY Zv‡ì wnmv‡ei †jb‡`b Ges
based solutions have placed our Bank in a reputable
e¨vjvÝ msµvšÍ Z_¨ †gvevB‡j SMS Gi gva¨‡g Rvb‡Z cv‡ib| G
position in terms of technological progression in the
mKj cÖhyw³ wbf©iZv e¨vsKwU‡K e¨vswKs Lv‡Z cÖhyw³MZ DbœwZi banking industry. Regarding IT inclusion, achievements of
myL¨vwZi Avm‡b AwawôZ K‡i‡Q| Z_¨cÖhyw³ ms‡hvR‡b †mvbvjx SBL are as follows:
e¨vsK wjwg‡UW Gi AR©b wb¤œiƒct
Sonali Bank Limited has become the largest online Bank
†mvbvjx e¨vsK wjwg‡UW ¯’vbxq mKj kvLvq Bb‡U‡j± CBS in Bangladesh by rendering online services through
AšÍfwz© ³i gva¨‡g Ab-jvBb Kvh©µg Pvjy K‡i evsjv‡`‡ki installing intellect CBS software in all of its domestic
brances.
mePvB‡Z eo AbjvBb e¨vs‡K iƒcvšÍwiZ n‡q‡Q|
Close Circuit Television (CCTV) system has been installed
kvLvi ch©vß wbivcËv wbwðZ Kivi Rb¨ 506wU kvLvq †K¬vR in 506 branches to ensure adequate security. Installation
mvwK©U †Uwjwfkb (wmwmwUwf) ¯’vcb Kiv n‡q‡Q| Aewkó mKj of CCTV system in rest of the branches is under process.
kvLvq wmwmwUwf ¯’vc‡bi welqwU cÖwµqvaxb i‡q‡Q| Close Circuit Television (CCTV) system has also been
e¨vs‡Ki 105wU GwUGg ey‡_I wmwmwUwf wm‡÷g ¯’vcb Kiv n‡q‡Q| installed in 105 ATM Booths.
Under the system of the NBR Sonali Bank e-Payment
2012 mv‡j Pvjy nevi ci †_‡K GbweAvi †mvbvjx e¨vsK Portal, Tax, VAT and Customs duty are being paid On-
B-†cvU©v‡ji gva¨‡g U¨v·, f¨vU, Kv÷gm wWDwU Ab-jvB‡bi line. Moreover, since 15 February 2015, printed challan
gva¨‡g Rgv Kiv n‡”Q| ZvQvov 15 †deªæqvwi 2015 †_‡K GB copies, made by this portal, are received at bank counter
†cvU©v‡ji gva¨‡g RgvK…Z Pvjv‡bi wcÖ‡›UW Kwc e¨vsK KvD›Uv‡i through ePay Bank Counter.
MÖnY Kiv n‡”Q| Reporting activities of receipt and payment of Govt.
miKvwi †KvlvMvi msµvšÍ mKj Kvh©µg †Rjv ch©v‡q e¨vs‡Ki chest are being rendered through online software in 58
chest branches at district level.
58wU ‡Pó kvLvq Ab-jvBb mdUIq¨vi Gi gva¨‡g m¤úvw`Z n‡”Q|
”Government Transaction System” GTS software/
miKvwi †jb‡`b wm‡÷g (GTS) bvgxq B›Uvi‡bU wfwËK bZzb program has been introduced in 643 Treasury branches
PvjyKZ … GKwU mdUIq¨vi Gi gva¨‡g e¨vs‡Ki 643wU kvLvq of the Bank to capture all government transactions.
miKvwi mKj †jb‡`b m¤úbœ Kiv n‡”Q| To ensure transparency and accountability, the Bank has
¯^”QZv I Revew`wnZv wbwðZ Kivi Rb¨ m¤úªwZ e¨vs‡K ÔAbjvBb recently introduced “Online Chalan Verification”.
Pvjvb †fwiwd‡KkbÕ Pvjy Kiv n‡q‡Q| A web based software, developed in-house named
“Remittance Management SystemPlus (RMSPlus)”, has
†iwgU¨vÝ g¨v‡bR‡g›U wm‡÷g (RMSplus) e¨vs‡Ki wbR¯^ been introduced in 1213 branches for receiving foreign
D™¢vweZ GKwU I‡qe mvBU wfwËK mdUIq¨vi| GwU eZ©gv‡b remittance and receiving and making payment of Inland/
†`kxq 1213wU kvLvq ‰e‡`wkK I †`kxq †iwgU¨vÝ MÖnY/cÖ`v‡bi Local remittance.
†iwgU¨vÝ Avbq‡bi gva¨g wn‡m‡e eëüZ n‡”Q| At present, 369 branches of different regions including
eZ©gv‡b XvKv kn‡ii 105wU kvLvmn †gvU 369wU kvLvq e¨vP 105 branches in Dhaka city have been brought under
(BACH) wm‡÷‡gi gva¨‡g wbKvk Kvh©µg cwiPvwjZ n‡”Q| GB BACH program. This program is running safely and
smoothly.
†cÖvMÖvgwU wbivc‡` Ges myPviæiƒ‡c Pj‡Q|
The Bank has successfully implemented Bangladesh
e¨vs‡Ki mKj kvLvq mdjfv‡e evsjv‡`k B‡jKUªwbK dvÛ Electronic Fund Transfer Network (BEFTN) system in all
UªvÝdvi †bUIqvK© (BEFTN) wm‡÷g Pvjy n‡q‡Q| the branches.
e¨vs‡Ki XvKv kn‡ii 105wU kvLvq 09 Rvbyqvwi 2014 ZvwiL ‘Sonali Bank Clearing System (SBCS)’ has been deployed
†_‡K AvšÍtkvLv wK¬qvwis Gi Rb¨ Ó†mvbvjx e¨vsK wbKvk c×wZ in 105 branches of Dhaka city for the automation of inter
branch clearing system since 9 January, 2014.
(SBCS)Ó cÖeZ©Y Kiv n‡q‡Q|
Trade finance module has already been incorporated
eZ©gv‡b †mvbvjx e¨vsK wjwg‡UW Gi 48wU Aby‡gvw`Z wWjvi kvLvi in CBS and currently 43 Branches out of 48 Authorised
g‡a¨ 43wU kvLv CBS G ms‡hvRbK…Z †UªW dvBb¨vÝ gwWDj Gi Dealer Branches of SBL are operating their business
gva¨‡g eëmvwqK Kvh©µg cwiPvjbv Ki‡Q| using this module.
72
DIRECTORS’ REPORT
†mj †dv‡bi mnRjf¨Zv Ges m¤§vwbZ MÖvnK‡ì cwieZ©bkxj Considering the availability of cell phones and meeting
Avw_©K cÖ‡qvRbxqZv we‡ePbvq wb‡q e¨vs‡K GmGgGm e¨vswKs up the ever evolving financial needs of our esteemed
†mev Pvjy Kiv n‡q‡Q| customers, the Bank has introduced SMS banking service.
MÖxb wdb¨vÝ Green Finance

As climate change has become the burning question
Rjevqy cwieZ©b me©‡kl `k‡K SyuwKc~Y© Riæwi wel‡q cwiYZ over the last decade, SBL management is fully aware
n‡q‡Q weavq †mvbvjx e¨vsK eë¯’vcbv G wel‡q mg¨Kfv‡e of the risk and also taking necessary steps to have
mRvM i‡q‡Q Ges cÖZ¨vwkZ djvd‡ji Rb¨ cÖ‡qvRbxq eë¯’v an optimistic outcome on this issue. Complying with
MÖnY K‡i‡Q| evsjv‡`k e¨vs‡Ki MÖxb e¨vswKs bxwZgvjv cwicvjb Bangladesh Banks’ green banking policy, SBL is financing
K‡i †mvbvjx e¨vsK cwi‡ek evÜe cÖK‡í A_©vqb Ki‡Q hv‡Z environment friendly projects (such as renewable energy
cwi‡ekMZ fvimvg¨ weivR K‡i| c‡ivÿfv‡e MÖxb dvBb¨v‡Ýi projects, clean water supply projects, waste treatment
†ÿ‡Î e¨vsK Ggb me cÖK‡í A_©vqb Ki‡Q †hLv‡b BwUwc Ges plant, solid waste disposal plant etc.) to ensure ecological
balance. For indirect Green Finance, Bank is funding such
‡mŠi we`ÿr i‡q‡Q| GQvov e¨vs‡Ki wbR¯^ D‡`¨vM Ò†mvbvjx
projects which have ETP and Solar Panel. “Sonali Alo” is
Av‡jvÓ Gi gva¨‡g cvewjK I cÖvB‡fU †m±‡ii cÖKímgy‡n the Bank’s initiative intended to align its efforts with the
mn‡hvwMZv K‡i Avm‡Q| 2018 mvj ch©šÍ †mvbvjx e¨vsK initiatives being undertaken by both public and private
wjwg‡UW cÖZ¨ÿfv‡e wewfbœ cÖK‡í 4.82 †KvwU UvKv A_©vqb sectors. Till 2018, Sonali Bank Limited directly financed Tk.
K‡i‡Q| B‡Zvg‡a¨ e¨vs‡Ki ¯’vbxq 1213wU kvLvi me¸‡jv‡ZB 48.20 million in various projects. Moreover, CBS has been
Bb‡U‡j± Ò†Kvi e¨vswKs mwjDkb (CBS)Ó ev¯ÍevwqZ n‡q‡Q| installed in all 1213 domestic branches of the bank. SBL
†mvbvjx e¨vsK wjwg‡UW cwi‡ekMZ fv‡e ÿwZKi cÖKímgy‡n is ethically not bound to finance to any environmentally
harmful project.
A_©vqb‡K wbiærmvwnZ K‡i|
Bmjvgx e¨vswKs Islamic Banking

SBL is giving priority on Islamic Banking because of its recent
mv¤úªwZK mg‡q AwR©Z RbwcÖqZvi Kvi‡Y †mvbvjx e¨vsK wjwg‡UW popularity in the banking sector. “Islamic Banking Department”
Bmjvgx e¨vswKs‡K †ek ¸iæZ¡ w`‡”Q| cÖavb Kvh©vj‡qi weR‡bm under the direct supervision of Business Development
†W‡fjc‡g›U wWwfk‡bi mivmwi ZË¡veav‡b wb‡¤œi kvLv¸wj‡Z Division of the Bank, is running its business succesfully in the
Bmjvgx e¨vswKs Kvh©µg cwiPvwjZ n‡”Q t branches of the Bank are shown in the table:
1. I‡qR Avb©vm© K‡c©v‡iU kvLv, XvKv 1. Wage Earners’Corporate Branch, Dhaka

2. AvMÖvev` K‡c©v‡iU kvLv, PÆMÖvg 2. Agrabad Corporate Branch, Chattagram
3. Lyjbv K‡c©v‡iU kvLv, Lyjbv 3. Khulna Corporate Branch, Khulna
4. ìMv‡MBU K‡c©v‡iU kvLv, wm‡jU 4. Dargagate Corporate Branch, Sylhet
5. e¸ov K‡c©v‡iU kvLv, e¸ov 5. Bogra Corporate Branch, Bogra
6. ivRkvnx K‡c©v‡iU kvLv, ivRkvnx 6. Rajshahi Corporate Branch, Rajshahi
7. gqgbwmsn K‡c©v‡iU kvLv, gqgbwmsn 7. Mymensingh Corporate Branch, Mymensingh
8. ewikvj K‡c©v‡iU kvLv, ewikvj 8. Barisal Corporate Branch, Barisal
9. †bvqvLvjx kvLv, †bvqvLvjx 9. Noakhali Branch, Noakhali
10. †gŠjfxevRvi kvLv, †gŠjfxevRvi 10. Moulavibazar Branch, Moulavibazar
11. enÏvinvU kvLv, PÆMÖvg 11. Bahaddarhat Branch, Chattagram
†µwWU †iwUs Credit Rating

evsjv‡`k e¨vs‡Ki eva¨Zvg~jK Pvwn`v wn‡m‡e †mvbvjx e¨vsK As per Bangladesh Bank’s mandatory requirement, the
wjwg‡UW Gi †µwWU †iwUs Kvh©vw` BgvwR©s †µwWU †iwUs wjwg‡UW credit rating of SBL was done by the Emerging Credit
Øviv m¤úbœ Kiv n‡q‡Q| me©‡kl 31 wW‡m¤î 2017 ZvwiL wfwËK Rating Ltd. on the audited Balance Sheet of 31 December,
e¨vs‡Ki wbixwÿZ Avw_©K weeiYxmg~n I Ab¨vb¨ Z‡_ï wfwË‡Z 2017 and other relevant information. The rating agency
GB †iwUs m¤úbœ Kiv n‡q‡Q| DwjøwLZ †iwUs G‡RwÝ KZ…©K
awarded the following ratings:
wb‡¤œv³ †iwUs cÖ`vb Kiv n‡q‡Qt
2017-18 2016-17
2017-18 2016-17 Surveillance Rating
ch©‡eÿb †iwUs Long Short Long Short
`xN© †gqv` ¯^í †gqv` `xN© †gqv` ¯^í †gqv` Term Term Term Term
miKvwi c„ô‡cvlK e¨vsK As Government
AAA ST-1 AAA ST-1 AAA ST-1 AAA ST-1
wnmv‡e Supported Bank
cÖvB‡fU Kgvwk©qvj As Private
A- ST-2 A- ST-2 Commercial Bank
A- ST-2 A- ST-2
e¨vsK wnmv‡e
Ae¯’v w¯’wZkxj w¯’wZkxj Outlook Stable Stable
†iwUs Gi ZvwiL 30 Ryb 2017 30 Ryb 2016 Date of Rating 30 June 2017 30 June 2016

Meeting of the Board of Directors
cl©` Ges Ab¨vb¨ KwgwUi mfvmg~n Board and Other Committee Meetings
2018 mv‡j e¨vs‡Ki cwiPvjbv cl©‡ì †gvU 58wU cl©` mfv A total of 58 Board meetings of the Bank were held during
the year 2018. Besides, 12 meetings of Board Executive
AbywôZ n‡q‡Q| GQvov, 2018 mv‡j cwiPvjbv cl©‡ì wbe©vnx
Committee, 10 meetings of Board Audit Committee, 12
KwgwUi 12wU mfv, cl©` wbixÿv KwgwUi 10wU mfv, cl©` SuzwK meetings of Board Risk Management Committee and 03
eë¯’vcbv KwgwUi 12wU mfv Ges kwiqv mycvifvBRwi KwgwUi meeting of Shariah Supervisory Committee were held during
3wU mfv AbywôZ n‡q‡Q| the year under review.
2018 mv‡j e¨vs‡Ki cÖavb cÖavb Kvh©µgmg~n BANK’S MAIN ACTIVITIES DURING 2018
ev‡RU-2018 Budget 2018
e¨vs‡Ki cwiPvjbv cl©` KZ…©K 2018 mv‡ji evwl©K ev‡RU The Bank’s ‘Annual Budget’ comprising capital budget and
(g~jabx ev‡RU I ivR¯^ ev‡RU) Aby‡gvw`Z nq| ivR¯^ I g~jabx revenue budget for the year 2018 was approved by the
ev‡R‡Ui Aax‡b †gvU ev‡RU eivÏ I cÖK…Z AR©b wb‡¤œ Dc¯’vcb Board of Directors. The budget provision vis-a-vis the actual
Kiv n‡jv t outturn under Capital and Revenue heads are 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)
µt bs ev‡RU LvZ 2018 ev‡RU 2018 cÖK…Z No Budget Head 2018 Budget 2018 Actual
ivR¯^ Revenue
84072.50 78321.50
01. (K) Avq 64505.00 58064.10 01. (a) Income 84072.50 78321.50
(L) e¨q (b) Expenditure 64505.00 58064.10
g~jab Capital
8.00 -
02. (K) Avq 1400.00 557.00 02. (a) Income 8.00 -
(L) e¨q (b) Expenditure 1400.00 557.00
wkí A_©vqb INDUSTRIAL FINANCE

With a view to achieving economic goals and accelerating
A_©‰bwZK jÿ¨gvÎv AR©b Ges miKvwi bxwZ ev¯Íevq‡bi gva¨‡g the pace of industrial development through implementation
wkí Dbœq‡b MwZ mÂv‡ii j‡ÿ¨ ‡mvbvjx e¨vsK wjwg‡UW 2018 of government policies, SBL has sanctioned a total of Tk.
3,741.50 million for term and working capital loans in the
mv‡j wkí Lv‡Z †gvU 374.15 †KvwU UvKv †gqv`x I PjwZ year 2018. The loans were provided for establishment of
g~jab FY gÄyi K‡i‡Q| bZzb wkí ¯’vcb Ges we`¨gvb wkí‡K new industrial units and also for expansion (BMRE) of existing
m¤úªmvi‡Yi j‡ÿ¨ Gme A_©vqb Kiv nq| wkí cÖKí A_©vqb potential units to expand the industrial base in the country.
Credit facilities/disbursement activities under Industrial
wefv‡Mi gva¨‡g mve©ÿwYKfv‡e wjR dvBbvwÝsmn Ab¨vb¨ FY Project Financing Division is being continously carried
weZiY cÖwµqv cwiPvjbv Kiv nq| Lead Arranger wn‡m‡e e¨vsK out through various Industrial Credit Products/programs
including Lease Financing. Under Consortium Financing
G ch©šÍ 23 wU wkí BDwb‡U 589.66 †KvwU UvKv A_©vqb K‡i‡Q arrangement, SBL has so far sanctioned term loans of Tk.
Ges Kb‡mvwU©qvg m`m¨ wn‡m‡e 30 wU BDwb‡U 1,333.66 †KvwU 5,896.60 million to 23 industrial units as lead arranger and
on the other hand, sanctioned Tk. 13,336.60 million to 30
74
DIRECTORS’ REPORT
SBL Financing in Thermax Group Typay BFL-Financed by SBL
UvKv gÄyi K‡i‡Q| Gfv‡e e¨vsK DwjøwLZ FY gÄy‡ii gva¨‡g units as a participant bank under consortium arrangement
led by other banks and financial institutions. The Bank has
2018 mv‡j D‡jøL‡hvM¨ msL¨K †jv‡Ki Kg©ms¯’v‡bi my‡hvM m„wó thus created employment opportunities by sanctioning the
K‡i‡Q| wkí A_©vq‡bi G mKj Kvh©µg †`‡ki wRwWwc cÖew„ ×‡Z above loans to various industrial units in the year 2018. These
D‡jøL‡hvM¨ f‚wgKv ivL‡e| wb‡¤œ mviwYi gva¨‡g 31 wW‡m¤î 2018 financing activities will contribute towards GDP growth.
Table below shows the status of industrial financing by the
ZvwiL wfwËK e¨vs‡Ki wkí A_©vqb wPÎ Dc¯’vcb Kiv n‡jv t Bank as on 31 December, 2018:
bs F‡Yi cÖK…wZ msL¨v gÄyixi cwigvb Av`v‡qi cwigvb e‡Kqv No Nature of Loan
No.of Amount Amount
Outstanding
units Sanctioned Recovered
1 e„nr I gvSvix 2057 1367.40 2148.40 30930.40
1 Large & Medium 2057 1367.40 2148.40 30930.40
2 ÿz`ª I KzwUi 9597 Ñ 26.50 5216.80
2 Small & Cottage 9597 - 26.50 5216.80
wk‡í PjwZ 1178 1896.90 1842.50 34897.00
3 Working Capital 1178 1896.90 1842.50 34897.00
g~jab 3
to Ind.
‡gvU 12832 3264.30 4017.40 71044.20 Total 12832 3264.30 4017.40 71044.20
2018 mv‡j GmGgB A_©vqb Kg©m¤úv`b Performance in SME Finance 2018

evsjv‡`k e¨vs‡Ki bxwZgvjv Abymv‡i AbybœZ Ges cÖvwšÍK According to Bangladesh Bank guidelines, Sonali Bank
Rb‡Mvwôi `vwi`ª we‡gvP‡b †mvbvjx e¨vsK wjwg‡UW GmGgB Limited emphasizes on SME financing for eliminating
A_©vq‡b we‡kl ¸iæZ¡ w`‡q _v‡K| AMÖvwaKvicÖvß G FY bxwZgvjvq poverty by increasing SME loan flow at economically
underdeveloped areas and to marginal people. Setting
bvix I myweav ewÂZ D‡`¨v³v‡ì Av_©-mvgvwRK Dbœq‡b e¨vsK
up priority based SME credit policy for women and
KvR K‡i hv‡”Q| e¨vsK wewfbœfv‡e Drcv`bKvix‡ì, eëmvqx underprivilaged entrepreneurs, the Bank has been working
†Mvôx, †mev cÖ`vbKvix cªwZôvb‡K GmGgB Lv‡Z ‡gqv`x I PjwZ for the improvement of their socio-economic condition.
g~jab FY cÖ`vb K‡i _v‡K| G Lv‡Z 2018 mv‡j e¨vsK †gvU The Bank extended term loans and working capital to
1,475.99 †KvwU UvKv A_©vqb K‡i‡Q| different producers, business people and service providers
under this sector. In the year 2018, the Bank has disbursed
1) †eKvi hyeK‡ì Ges A_©‰bwZKfv‡e AbybœZ GjvKvq FY SME loan of Tk. 14,759.90 million.
cÖevn e„w×i gva¨‡g `vwi`ª `~ixKi‡Yi j‡ÿ¨ 2014 mvj †_‡K
1) A project on “One Branch One Month One
ÒGKwU kvLv GKwU gvm GKwU bZzb D‡`¨³v Kg©m~wPÓ Pvjy new Entrepreneur’’ had been launched in 2014
Kiv n‡q‡Q| GB Kg©m~wPi AvIZvq 2018 mv‡j me©‡gvU for eliminating poverty by increasing loan flow
5,954 Rb bZzb GmGgB D‡`¨v³vi g‡a¨ me©‡gvU 375.25 for unemployed people and economically
†KvwU UvKv FY weZiY Kiv n‡q‡Q| underdeveloped areas. Under this project, Tk.
2) Ò†mvbvjx Av‡jvÓ cÖK‡íi AvIZvq MÖxb e¨vswKs (†mvjvi 3,752.50 million has been disbursed to 5,954 new
SME entrepreneurs in 2018.
GbvwR© Ges ev‡qv M¨vm cø¨v›U) Lv‡Z G ch©šÍ 1,570 Rb
MÖvn‡Ki AbyK~‡j e¨vsK me©‡gvU cÖvq 4.82 †KvwU UvKv 2) A total of Tk. 48.20 million has been disbursed to the
weZiY K‡i‡Q| green sectors (solar energy and bio-gas plant) under
“Sonali Alo” project and total number of clients has
3) e¨vs‡K Òbvix D‡`¨v³v Dbœqb BDwbUÕÕ ¯’vcb Kiv n‡q‡Q stood at 1,570.
Ges bvix D‡`¨v³v‡ì Rb¨ GmGgB F‡Yi ‰ewkó¨ I my‡hvM 3) ’’Women Entrepreneurs Development Desk’’ has
myweav e¨vcKfv‡e cÖPv‡ii j‡ÿ¨ eªæwkDi ÒwbcybvÕÕ Ges been established in the bank and Broushiur ’’Nipuna’’
ÒGmGgB FYÕÕ gy`ªY K‡i gvV ch©v‡q weZiY Kiv n‡”Q| and ’’SME Loan’’ is being distributed to the women
4) GQvov K¬v÷vi m„wói gva¨‡g 2018 mv‡j cÖvq 2.17 †KvwU entrepreneurs to inform the facilities of the scheme.
UvKv weZiY Kiv n‡q‡Q|eZ©gv‡b G cÖK‡í †gvU FY MÖnxZvi 4) Moreover, Tk. 21.70 million has been disbursed to 540
msL¨v 540 Rb| clients in ‘’Cluster’’ financing of the Bank in the period.

SME loan disbursement by Mr. Fazle Kabir, Governor, Bangladesh Bank while visiting SBL stall.
5) wW‡m¤î 2018 ch©šÍ GmGgB F‡Yi cwigvb ùvwo‡q‡Q 5) Total outstanding volume of SME credit has stood at
5,048.58 †KvwU hv e¨vs‡Ki †gvU F‡Yi 11%| mvgwMªKfv‡e Tk. 50,485.80 million till 2018 which is 11% of total
evsjv‡`k e¨vs‡Ki wb‡`©kvejx Abyhvqx fwel¨‡Z G e¨vs‡Ki loan of the bank. Overall SME activities will be geared
up according to Bangladesh Bank’s guideline.
GmGgB Kvh©µg Av‡iv †eMevb n‡e|
Agricultural / Rural Credit
K…wl/cjøx FY
At present, 8 credit programs namely Special Agricultural
eZ©gv‡b G e¨vs‡K 8wU K…wl/cjøx FY cÖKí Pvjy Av‡Q †hgb Credit (SACP), Sugarcane Cultivation Credit, Pond Fisheries
-we‡kl K„wl FY, Cÿz Pvl FY, cyKz‡i grm¨ Pvl FY, we‡kl Credit, Special Investment, Farming Credit, Non-crop Off-
farming Credit, Social Forestry Credit and Refinance scheme
wewb‡qvM, K…wl FY, kl¨wenxb Addvwg©s FY, mvgwRK ebvqb for Milk Production and Artificial Insemination, are being run
FY, `y» Drcv`b Ges K…wÎg cwi‡blK cybtA_©vqb FY| G¸‡jvi by the Bank with a view to augmenting agricultural output,
g~j jÿ¨ n‡jv K…wl Drcv`b e„w× Kiv, Kg©ms¯’v‡bi my‡hvM m„wó creating employment opportunities and generating income
of the rural people. SBL intensified its efforts to extend credit
Kiv Ges MÖvgxY Rb‡Mvwôi DcvR©b e„w× Kiv| G e¨vsK K…wlR facilities to all sections of rural population under those
Ges AK…wlR Lv‡Z FY cÖ`vb Kvh©µg Av‡iv †Rvi`vi K‡i‡Q| various rural credit programs pertaining to agricultural and
evsjv‡`k e¨vs‡Ki wb‡`©kbv Abyhvqx †mvbvjx e¨vsK wjwg‡UW K… off-farming activities. As per Bangladesh Bank’s instruction,
Sonali Bank Limited has been providing Agricultural/Rural
wl/cjøx F‡Y 4% †_‡K 10% mij my‡` FY weZiY K‡i _v‡K|
Credit ranging from 4% to 10% with simple interest rate. Loans
ZvQvov Wvj, ˆZjexR, gmjv, fzÆv Pv‡li Rb¨ K…lK‡ì‡K Ges are being disbursed among the rural farmers for cultivation of
`y» Drcv`b I K…wÎg cwi‡blK cybt A_©vq‡bi †ÿ‡Î 4% †_‡K pulses, oil seed, spices and maize at 4% and at 5% interest
5% my‡` FY weZiY Kiv nq| Dciš‘, e¨vsKwU bZzb GKwU FY rate for Refinance scheme for Milk Production and Artificial
Insemination. Moreover, the Bank has launched a new loan
Kg©m~wP Pvjy K‡i‡Q, hvi bvg †`qv n‡q‡Q ÔAv¤ªK~Ä Dbœqb FY program named ‘Amrokunju Unnayan Rin Karmasuchi’
Kg©m~wPÕ hv 7wU †Rjvq-ivRkvnx, bIMv, bv‡Uvi, PuvcvBbeveMÄ, in the seven districts such as Rajshahi, Naogaon, Natore,
VvKziMuvI, w`bvRcyi Ges mvZÿxiv AÂ‡j Av‡gi djb e„w×i Rb¨ Chapainawabganj, Thakurgaon, Dinajpur and Satkhira to
increase the production of mango in our country. The
weZiY Kiv n‡”Q| 31 wW‡m¤î 2018 wfwËK K…wl/cjøx FY Lv‡Z total outstanding of agricultural loan stood at Tk. 47,280.00
F‡Yi w¯’wZ ùvwo‡q‡Q 4,728.00 †KvwU UvKv| million as on 31 December, 2018.
76
DIRECTORS’ REPORT
Different sectors of Micro Credit
ÿy`ª FY Micro Credit

The role of micro-credit is widely acclaimed as an
`vwi`ª we‡gvPb, AvZ¥Kg©ms¯’vb m„wó I MÖvgxY Av_©-mvgvwRK Dbœq‡b effective tool for poverty alleviation, self-employment
ÿy`ª F‡Yi f‚wgKv wekê¨vcx ¯^xK…Z I cÖkswmZ| Kv‡RB e¨vsK ÿz`ª generation and rural economic development. The Bank
FY Kvh©µg‡K Av‡iv MwZkxj I Kvh©Ki fv‡e cwiPvjbvi j‡ÿ¨ has, therefore, been trying its best to provide funding
me©vZ¡K cÖ‡Póv Pvwj‡q hv‡”Q| eZ©gv‡b `vwi`ª `~ixKi‡Y e¨vs‡Ki support to this sector. At present, as many as 24 projects/
cÖvq 24wU ÿz`ª FY Kg©m~wP i‡q‡Q| D³ Kg©m~wPi g‡a¨ Av‡Q programs aimed at alleviating poverty are being run by the
e¨vsK-GbwRI †mZzeÜ‡b e¨vcK FY Kg©m~wP, cÖwZeÜx‡ì Rb¨ Bank. These programs include among others Bank-NGO
Linkage Wholesale Credit Program, Loan Program for the
FY Kg©m~wP, ¯^wbf©i evsjv‡`k, weAviwWwe-BDwmwmG Gi wewfbœ
Disabled, Swanirvar Bangladesh, different types of credit
FY, 152wU Dc‡Rjvq GwWwei Av_©vq‡b MÖvgxY DcRxweKv cÖKí, through BRDB-UCCA, ADB financed Rural Livelihood
`vwi`ª we‡gvPb mnvqZv FY Kg©m~wP, MÖvgxY ÿz`ª eëmv Ges ÿz`ª Project (RLP) in 152 Upazilas, Daridra Bimochan Shahayata
K…wl FY cÖKí, BARD (Kzwgjøv), †mvbvjx e¨vsK-AviwWG (e¸ov) Rin Karmasuchi, Rural Small Business and Small Farming
BZ¨vw`| `vwi`ª we‡gvPb Ges †`‡ki Av_©-mvgvwRK Dbœq‡bi Loan Scheme, BARD (Cumilla)- Sonali Bank & RDA (Bogra)
Rb¨ A_© mieivnKi‡Yi j‡ÿ¨ e¨vsK DwjøwLZ Kg©m~wPmg~n Pvjy etc. These were introduced by the Bank to channelize
the financial resources for poverty alleviation and socio
K‡i‡Q| economic development of the country.
Credit for Urban Women Micro Enterprize development Under the coverage of the project titled “ Credit for Urban
(CUMED) wk‡ivbv‡g G e¨vs‡Ki 92wU kvLvq hvi g‡a¨ mKj Women Micro Enterprise Development (CUMED)” project,
wefvM I †Rjvi cÖavb kvLvmg~n, XvKv kn‡ii Af¨šÍ‡ii g‡bvbxZ 92 branches of the country including all principal branches
of the divisional and district headquarters, 26 selected
26wU kvLv, PÆMÖvg kn‡ii Af¨šÍ‡ii 2 wU kvLv, ‡gŠjfxevRvi branches are in Dhaka city, 2 branches in Chittagong city,
†Rjvi 3wU kvLvq webv Rvgvb‡Z 5,00,000.00 UvKv ch©šÍ FY 3 branches in Moulvibazar are disbursing loans up to Tk.
‡`qv n‡”Q| 0.50 million without any collateral.
GQvovI mviv‡`‡k ÿy`ª D‡`¨v³v Dbœqb FY Kg©m~wP ÔD‡b¥lÕ Pvjy Besides, the Micro Entrepreneur Development Credit
Program “Unmesh” has been rolled out all over the country.
Kiv n‡q‡Q| Z`ycwi MÖvgxY bvix‡ì‡K ¯^vej¤^x K‡i Zzj‡Z
Moreover, in order to make the rural women self-reliant,
ÔRv‡Mv bvix MÖvgxY FYÓ bv‡g e¨vs‡K bZzb GKwU FY Kg©m~wP Pvjy the Bank has introduced a new loan program named
Kiv n‡q‡Q| e¨vsKwU mviv‡`‡k 250 wU MÖvgxY kvLvq 25,000/- “Jago Nari Grameen Rin” through 250 rural branches all
UvKv ch©šÍ RvgvbZwenxb FY cÖ`vb Ki‡Q| over the country with a provision of collateral-free loan up
to Tk. 25,000.00.
†mvbvjx e¨vsK wjwg‡UW ÒwidvBbvÝ ¯‹xg di GmGgBwc 10/- SBL is also disbursing loans in “Refinance Scheme for
UvKv GKvD›U †nvìviÕÕ Gi AvIZvq K…lK‡ì Ges ÓAv`k© MÖvg SMEF Tk. 10.00 Account Holder” for the farmers and in
Kg©m~wPÓ Gi AvIZvq `vwi`ª we‡gvP‡b FY weZiY K‡i Avm‡Q| “Adarsha Gram Karmasuchi” aimed at alleviating poverty at

GB Kg©m~wPi AuvIZvq Mixe †ckvRxwe‡ì RvgvbZwenxbfv‡e a sustainable level. The poor professionals of the rural areas
are being selected as beneficiaries under this program and
mnR k‡Z© e¨vsK m‡ev©”P 20,000/- UvKv ch©šÍ FY cÖ`vb K‡i
provided collateral-free loan up to Tk. 20,000/- with easy
_v‡K| 31 wW‡m¤î 2018 ZvwiL wfwËK gvB‡µv †µwWU Lv‡Z
terms and conditions. As on 31 December 2018, micro
†gvU w¯’wZi cwigvb 1,219.51 †KvwU UvKv hv 2017 mv‡j wQj credit of SBL stood Tk. 12,195.10 million which was Tk.
1,222.38 †KvwU UvKv| 12,223.80 million in 2017.
m¤úªwZ ‡mvbvjx e¨vsK wjwg‡UW g~jZ ¯‹zjMvgx QvÎ/ QvÎx‡ì SBL has recently launched low interest bearing loan
Rb¨ ÔevBmvB‡Kj FY Kg©m~wPÕ bv‡g ¯^í my‡ì GKwU FY Kg©m~wP program named “Bicycle Loan Scheme for School Going
Students”. This program has already been circulated in all
Pvjy K‡i‡Q| ¯’vbxq Kvh©vjq Ges K‡c©v‡iU kvLv e¨vZxZ e¨vs‡Ki
branches of Sonali Bank Limited except Local Office and all
mKj kvLvq GB FY Kg©m~wP Pvjy Kiv n‡q‡Q| mnR k‡Z© RvgvbZ corporate branches. This collateral free newly introduced
wenxbfv‡e 15,000/- UvKv ch©šÍ ¯‹zjMvgx Mixe QvÎ/QvÎx‡ì g‡a¨ loan upto Tk. 15,000.00 is being provided to the poor
GB FY weZiY Kiv n‡”Q| school going students with easy terms and conditions.
wewb‡qvM Investment Financing

The Treasury Management Division (TMD) of the Bank
G e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi g¨v‡bR‡g›U wWwfkb
oversees the investment financing activities. It operates
wewb‡qvM msµvšÍ Kvh©µg †`Lfvj K‡i _v‡K| Bnv †UªRvwi
Treasury bill, bond, debenture, share and related
wej, eÛ, wW‡eÂvi, †kqvi Ges wewb‡qvM m¤úwK©Z Kvh©vejx transactions. The Bank has engaged itself as primary
cwiPvjbv K‡i _v‡K| †UªRvwi wej I eÛ µq/weµ‡qi †ÿ‡Î dealer in buying and selling of treasury bills and bonds. In
e¨vsK cÖvBgvwi wWjv‡ii f~wgKv cvjb K‡i _v‡K| e¨vsK G LvZ 2018, the Bank earned Tk. 34,341.09 million which was Tk.
‡_‡K 2018 mv‡j 3,434.11 †KvwU UvKv Avq K‡i‡Q hv c~e©eZ©x 33,955.80 million in the previous year. The total investment
eQ‡i wQj 3,395.58 †KvwU UvKv| 2018 mvj †k‡l e¨vs‡Ki of the Bank was Tk. 444,051.60 million at the end of 2018.
Major investments were made in Treasury Bills, Treasury
†gvU wewb‡qv‡Mi cwigvY ùvwo‡q‡Q 44,405.16 †KvwU UvKv|
Bonds, Special Bonds, Corporate/Private Bond, Shares
cÖavb cÖavb wewb‡qvM LvZ n‡jv †UªRvwi wej, eÛ, wW‡eÂvi,
and Debentures etc. The sector-wise (Government, Public
†kqvi BZ¨vw`| 31 wW‡m¤î 2018 wfwËK LvZIqvix (cvewjK and Private) summary position of investment of the Bank
Ges cÖvB‡fU) wewb‡qv‡Mi mvi-ms‡ÿc wb‡¤œ Dc¯’vcb Kiv n‡jv t as on 31 December, 2018 is shown in the table below:
31 wW‡m¤î, 2018 wfwËK LvZIqvix wewb‡qvM Sector-wise Investment as on 31 December, 2018
wk‡ivbvg miKvwi cvewjK cÖvB‡fU me©‡gvU Description Government Public Private Total
evsjv‡`k e¨vsK wej - - - - Bangladesh Bank Bill - - - -
†UªRvwi wej 11389.00 - - 11389.00 Treasury Bills 11389.00 - - 11389.00
wifvm© †i‡cv - - - - Reverse Repo - - - -
†UªRvwi eÛ 312777.40 - - 312777.40 Treasury Bonds 312777.40 - - 312777.40
†¯úkvj eÛ 52093.30 - - 52093.30 Special Bonds 52093.30 - - 52093.30

Corporate/Private
K‡c©v‡iU/cÖvB‡fU eÛ - - 43930.00 43930.00 - - 43930.00 43930.00
Bond
cÖBReÛ 64.60 - - 64.60 Prize Bond 64.60 - - 64.60
wW‡eÂvi - 5.20 7.30 12.50 Debentures - 5.20 7.30 12.50
†kqvi - 913.40 14466.20 15379.60 Shares - 913.40 15379.60

14466.20
†kqvi †mvbvjx e¨vsK(BD - - 3104.30 3104.30 Shares of SB (UK) LTD. - - 3104.30 3104.30
†K) wjt
wmwKDwiwU wW‡cvwRU Security Deposit
- - 9.60 9.60 - - 9.60 9.60
(†KvjKvZv kvLv) (Kolkata Br.)
†mvbvjx †cvjvwim GdwU wjt - - 26.30 26.30 Sonali Polaris FT Limited - - 26.30 26.30
Investment in Foreign
‰e‡`wkK gy`ªvq wewb‡qvM - - 4947.80 4947.80 - - 4947.80 4947.80
Currency
‰e‡`wkK kvLv - - 317.20 317.20 Overseas Branches - - 317.20 317.20
me©‡gvU 376324.30 918.60 66808.70 444051.60 Total 376324.30 918.60 66808.70 444051.60
78
DIRECTORS’ REPORT
gvbe m¤ú` Human Capital
¯^vaxbZvi ci MZ 47 eQ‡i G e¨vs‡Ki K‡cv©‡iU ms¯‹…wZ Ggb Over the last 47 years, the corporate culture at SBL grew
ch©v‡q ‡cŠu‡Q‡Q †hLv‡b Kg©KZ©v/ Kg©Pvixiv ¯^vaxbfv‡e KvR as such that the employees have ample opportunities to
take initiative and responsibilities to unleash their hidden
K‡i wb‡Ri, cÖwZôv‡bi Ges mgv‡Ri Dbœq‡b f~wgKv ivL‡Q| potential to maximize benefits for themselves and for the
e¨vs‡Ki gvbe m¤ú` Dbœqb wefvM Kg©KZ©v‡ì e¨vswKs wel‡q society. The HR Division of SBL takes necessary initiatives
me©‡kl AMÖMwZ Ges wbqgbxwZ m¤ú‡K© mg¨K Ávb/cÖwkÿY †`qvi to impart latest developments and banking rules and
cÖ‡qvRbxq c`‡ÿc wb‡”Q| Gi d‡j e¨vs‡Ki Kg©KZ©v-Kg©Pvixiv regulations to the employees so that they can understand
mn‡RB MÖvnK‡ì Pvwn`v eyS‡Z mÿg nb Ges †m †gvZv‡eK `ªæZ the customer’s demands and deliver prompt and efficient
services. SBL has taken initiatives of converting human
Ges `ÿZvi mv‡_ ‡mev cÖ`vb Ki‡Z mg_© nq| e¨vs‡Ki gvbe
resources into productive ones and with this end in view,
m¤ú`‡K Av‡iv Kvh©Kix Kivi Rb¨ ‡mvbvjx e¨vsK wewfbœ cÖwkÿ‡Yi it has trained up as many as 11,133 employees in 2018. As
D‡`¨vM MÖnY K‡i‡Q| GiB Ask wn‡m‡e 2018 mv‡j 11,133 Rb of December 2018, 17,271 employees of different layers
Kg©KZ©v- Kg©Pvix‡K wewfbœ cÖKv‡ii cÖwkÿY †`qv n‡q‡Q| 31 are working in the Bank among which officers and staffs
wW‡m¤î, 2018 wfwËK e¨vs‡Ki †jvKe‡ji msL¨v 17,271 Rb hvi are 14,671 and 2,600 respectively.
g‡a¨ 14,671 Rb Kg©KZ©v Ges 2,600 Rb Kg©Pvix|
Customer Care
MÖvnK †mev
SBL takes minimum service charges from its customers.
†mvbvjx e¨vsK wjwg‡UW Zvi MÖvnK‡ì KvQ †_‡K me©wb¤œ †mev Front desk, women entrepreneurs desk, customer
g~j¨ wb‡q _v‡K| DbœZ MÖvnK †mevi Rb¨ d«›U †W¯‹, bvix D‡`¨v³v complaint box and customer care cell have been
†W¯‹, MÖvnK Awf‡hvM e·, MÖvnK †mev †mj †Lvjv n‡q‡Q| avwg©K established to ensure better customer services. To attract
the increasing demand of the religious Muslims, SBL
gymwjg‡ì µgea©gvb Pvwn`v c~i‡Yi j‡ÿ¨ e¨vsK Zvi 11wU kvLvq has introduced Islamic banking window in 11(Eleven)
Bmjvgx e¨vswKs DB‡Ûv Pvjy K‡i‡Q| DbœZ MÖvnK †mev †`qvi Rb¨ branches. It is digitizing its business to provide improved
Ges e¨vswKs Kvh©µg MwZkxj Ges `ÿZvi mv‡_ m¤úv`‡bi Rb¨ services to its customers and to make its operations more
mKj Kvh©µg wWwRUvj c×wZ‡Z iƒcvšÍi Kiv n‡q‡Q| prompt and efficient.
mvgvwRK wbivcËv †e÷bx Kg©m~wP‡Z AskMÖnY Participation in Social Safety Net Programs
mvaviY e¨vswKs †mev †hgb wkí A_©vqb, Avg`vwb-ißvwb A_©vqb, In addition to providing conventional banking services such
mvaviY FY, cjøx FY, ‰e‡`wkK gy`ªv Avbqb, `xN© †gqv`x FY as industry finance, import and export finance, general
credit, rural credit, remittance, long term loans, the Bank
BZ¨vwì cvkvcvwk ‡mvbvjx e¨vsK wjwg‡UW 51wU mvgvwRK
is assisting in implementing 92 safety net programs which
wbivcËv †e÷bx Kg©m~wP‡Z mnvqZv Ki‡Q †h¸‡jvi mv‡_ in turn are affiliated with some specialized projects of the
miKv‡ii wKQz we‡klvwqZ cÖK‡íi mswkøóZv Av‡Q| we¯Í…Z MÖvgxY Government. Through its widest range of rural branches,
kvLvi gva¨‡g G e¨vsK cÖv_wgK Ges D”P gva¨wgK ¯Í‡i Aa¨qbiZ SBL is disbursing stipends to the students studing at
QvÎ/QvÎx‡ì g‡a¨ wkÿv e„wË, mvgwiK †cbkb, eq¯‹ fvZv, primary and secondery level, army pension, old age
allowance, widow allowance, destitute woman allowance,
weaev fvZv, `y¯’ gwnjv fvZv, ‡emiKvix ¯‹zj, K‡jR, gv`ªvmvmn
salaries and allowances for non-government schools,
†emiKvwi †iwR÷ªvW© cÖv_wgK ¯‹z‡ji wkÿK‡ì †eZb-fvZv cÖ`vb colleges, madrashas and non-government registered
K‡i _v‡K| Gi cvkvcvwk wewfbœ cÖKvi BDwUwjwU wej †hgb primary schools as well as collecting various utility bills
†Uwj‡dvb wej, M¨vm wej, ‡Wmv/‡Wm‡Kv/ AviBwe Gi we`ÿr wej, like telephone bill, gas bill, electricity bills of DESA, DESCO,
Iqvmv wej msMÖn K‡i _v‡K| e¨vsK eZ©gv‡b 23,21,319 wU REB and WASA. There are 2,321,319 accounts under Social
Safety Net program, 190,833 accounts for distributing
mvgvwRK wbivcËv †e÷bx wnmve, 1,90,833 wU gyw³‡hv×v wnmve
freedom fighters’ allowance and 2,560,095 accounts for
Ges 25,60,095 wU Ab¨vb¨ wnmve Gi gva¨‡g wewfbœ cÖKvi fvZv others. The main objective of SBL is to take all types of
cÖ`vb K‡i| e¨vs‡Ki g~j D‡Ïk¨ n‡jv e¨vswKs †mev‡K MÖvn‡Ki banking services to the door-steps of the people. The
†`vi †Mvovq †cŠu‡Q †`qv| GQvov e¨vsKwU wewfbœ cÖKvi Av_©- Bank participates in various socio-economic activities and
mvgvwRK Ges Dbœqbg~jK Kg©Kv‡Û AskMÖn‡Yi cvkvcvwk miKvi development programs as well as helps in implementing
KZ…©K M„nxZ wewfbœ cÖKí ev¯Íevq‡b mnvqZv Ki‡Q| iv‡óªi me©e„nr various plans and programs taken up by the Government.
As the largest state owned commercial bank, Sonali Bank
evwYwR¨K e¨vsK wn‡m‡e ‡mvbvjx e¨vsK wjwg‡UW Gi `vwqZ¡ n‡jv Limited has the responsibility to run its operations as a
†mev w`‡q Ges †ckv`vix g‡bvfve wb‡q KvR K‡i †`‡ki g‡a¨ service-oriented and professionally managed leading
GKwU †bZ…Z¡¯’vbxq jvfRbK cÖwZôvb wn‡m‡e KvR Kiv| profitable organization in the country.
cuywRevRvi Kvh©µg Capital Market Operation
†mvbvjx e¨vs‡Ki GKwU mvewmwWqvwi †Kv¤úvwb wn‡m‡e †mvbvjx Through Sonali Investment Limited (SIL), the subsidiary
company, SBL has a significant presence in the capital
Bb‡f÷‡g›U wjwg‡UW (SIL) evsjv‡`‡ki cuywRevRv‡i ¸iæZ¡c~Y© market of Bangladesh. SIL ensures high quality services to
f~wgKv cvjb Ki‡Q| SIL AvB‡bi cÖwZ AbyMZ †_‡K †ckv`vwi our valuable clients by its professionalism while being fully
AvPiY Øviv g~jëvb MÖvnK‡ì DbœZgv‡bi †mev cÖ`vb Ki‡Q| compliant with the laws of the land. It attaches priority

‡Kv¤úvwbwU MÖvnK ¯^v_© Ges myweav‡K AMÖvwaKvi †`qvi cvkvcvwk to investors’ interest, their benefit and always intends to
protect investors against market related risks. This is why
evRvi m¤úwK©Z SuzwK †_‡K MÖvnK‡ì myiÿv †`q| Gi d‡j
SIL has become a trusted partner of investors. The current
MÖvnK‡ì wek¦¯Í Askx`vi n‡Z mÿg n‡q‡Q| Gi eZ©gvb activities of the company include Issue Management,
Kvh©µ‡gi g‡a¨ Bmy¨ g¨v‡bR‡g›U, †cvU©dwjI g¨v‡bR‡g›U, Portfolio Management, Underwriting, Equity Participation
AvÛviivBwUs, g~jab mnvqZv, cyuwRevRvi mswkøó Ab¨vb¨ †mev and ancillary services related to the capital market. At
D‡jøL‡hvM¨| eZ©gv‡b GwU cÖavb Kvh©vjqmn 4wU kvLv (cëb, present, Sonali Investment Limited runs its day to day
operations by its Head Office and three branches located
wgicyi, DËiv I Lyjbv) Øviv ˆ`bw›`b Kvh©µg cwiPvjbv Ki‡Q|
at Paltan, Uttara and Mirpur. As a part of its active role in
cÖwZôvbwU 2018 mv‡j gvwR©b FY wn‡m‡e 223.66 †KvwU UvKv the capital market, SIL has disbursed Tk. 2,236.62 million
weZi‡Yi cvkvcvwk cuywRevRv‡i wbR¯^ †cvU©dwjI‡Z 41.27 as margin loan and invested Tk. 412.70 million to its own
†KvwU UvKv wewb‡qvM K‡i‡Q| portfolio.
SuzwK eë¯’vcbv Risk Management

e¨vs‡Ki SuzwK eë¯’vcbv wefvM mKj cÖKvi SuzwK m¤úwK©Z KvR The Risk Management Division of the Bank identifies
wPwýZ, wePvi-we‡kølY, g~j¨vqb Ges Z`viwK K‡i _v‡K| GKB analyses, evaluates and supervises all risk related work
mv‡_ evsjv‡`k e¨vs‡Ki wb‡`©kbv Abyhvqx cwiPvjbv cl©‡ì including control/mitigation measure of risks as per
guidelines and direction of Bangladesh Bank with the
Aby‡gv`bµ‡g GMy‡jv wbqš¿Y Ges mgvav‡bi Dcvq †ei K‡i
approval of the Board of Directors. Recently, a high
_v‡K| m¤úªwZ evsjv‡`k e¨vs‡Ki wb‡`©kbv ‡gvZv‡eK mvwe©K powered ‘Board Risk Management Committee’ comprising
SuzwK eë¯’vcbv Kvh©µg kw³kvjxKi‡Yi D‡Ï‡k¨ cwiPvjbv five members of the Board of Directors has been formed
cl©‡ì 5 Rb m`m¨ wb‡q cwiPvjbv cl©‡ì SuzwK eë¯’vcbv KwgwU as per the directives of Bangladesh Bank to strengthen
MVb Kiv n‡q‡Q| overall risk management activities.
¸iæZ¡c~Y© SuzwKi wewfbœ ‡ÿ‡Î m‡šÍvlRbK †iwUs AR©‡bi j‡ÿ¨ Risk Management Division has introduced Risk
Management Checklist (RMC) for attaining ‘satisfactory’
cÖavb Kvh©vj‡qi SuzwK eë¯’vcbv wefvM KZ…©K GKwU SuzwK
rating on various segments of core risks through proper
eë¯’vcbv †PKwj÷ (RMC) Pvjy Kiv n‡q‡Q| ¸iæZ¡c~Y© SuzwK implementation of Core Risk Management Guidelines,
eë¯’vcbv bxwZgvjv e¨vs‡Ki mKj kvLv/ Kvh©vj‡q msiÿY Kiv which is being maintained at all offices/branches of
nq| SuzwK eë¯’vcbv wefvM KZ…©K Aa©-evwl©K wfwË‡Z Òmgwš^Z the Bank. Risk Management Division also prepares
SuzwK eë¯’vcbv cÖwZ‡e`bÓ Ges gvwmK wfwË‡Z ÒSuzwK eë¯’vcbv half yearly “Comprehensive Risk Management Report
cÖwZ‡e`bÓ cÖ¯‘Z Kiv nq| Gi gva¨‡g e¨vs‡Ki m¤ú`, `vq, Zvij¨ (CRMR)” and monthly “Risk Management Report (RMR)”
Ae¯’v I Av‡qi mv‡_ m¤úwK©Z SuzwKMy‡jv wPwýZ Kiv, we‡kølY to identify analyzes and mitigates the risks relating to
Kiv Ges mgvavb Kiv nq| DwjøwLZ cÖwZ‡e`bmg~n e¨vs‡Ki SuzwK bank’s assets, liabilities, liquidity, earnings and submit it
eë¯’vcbv KwgwU‡Z Dc¯’vcb Kiv nq Ges evsjv‡`k e¨vs‡KI to the Risk Management Committee of the Bank as well
as to Bangladesh Bank for its regulatory compliance.
†cÖiY Kiv nq| D³ wefvM KZ…©K wbqwgZfv‡e †÷ªm †Uw÷s Kiv
The division conducts periodic ‘Stress Testing’ to assess
nq hvi gva¨‡g we‡kl SuzwK Dcv`vb Ges ch©vqmg~n we‡ePbvq Capital to Risk-weighted Asset Ratio (CRAR) of the Bank
wb‡q wi¯‹ I‡q‡UW m¤ú‡ì wecix‡Z g~ja‡bi ch©vßZv cwigvc considering specific shock factors and shock levels. “Core
Kiv nq| evsjv‡`k e¨vs‡Ki mv‡_ G e¨vs‡Ki ¯^vÿwiZ MOU Gi Risk Management Guidelines Implementation Policy” has
Av‡jv‡K Ò¸iæZ¡c~Y© SuzwK eë¯’vcbv wb‡`©kvejx ev¯Íevqb bxwZÓ been introduced in line with MOU signed with Bangladesh
Pvjy Kiv n‡q‡Q| SuzwK eë¯’vcbv wefvM KZ…©K †µwWU †iwUs, FY Bank. The Risk Management Division also reviews position
I AMÖx‡gi Abycv‡Zi A¯^vfvweK cwieZ©b, †kÖwYK…Z FY Av`vq of credit rating, abnormal change in AD ratio, recovery
Ae¯’v, e¨vs‡Ki mv‡_ m¤úwK©Z SuzwK Ges Af¨šÍixY wbixÿvi position, self-assessment of internal control and other risk
factors associated with banking activities.
wbR¯^ g~j¨vqb I ch©v‡jvPbv Kiv nq|
Meanwhile, Internal Capital Adequacy Assessment
B‡Zvg‡a¨, mycvifvBwRs wiwfD cÖ‡mm (SRP) Gi AvIZvq 2015, Process (ICAAP) and related Supplementary Document
2016 I 2017 mvjwfwËK B›Uvibvj K¨vwcUvj GwW‡Kv‡qwm under Supervisory Review Process (SRP) for the year 2015,
Av‡mm‡g›U cÖ‡mm (ICAAP) Ges Avbymw½K `wjjvw` cÖYqbc~e©K 2016 and 2017 have been prepared and submitted to
cÖwZ‡e`bmg~n evsjv‡`k e¨vs‡K †cÖiY Kiv n‡q‡Q Ges 2018 Bangladesh Bank. Besides, ICAAP for the year 2018 is also
mv‡ji ICAAP Gi KvR cªwµqvaxb i‡q‡Q| in underway.
SuywK wfwËK g~jab ch©vßZv eë¯’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) and the Capital
n‡Z G e¨vsK Basel-III Gi Kvh©µg ïiæ K‡i A`¨vewa Gi wbqg
to Risk-weighted Asset Ratio (CRAR) for banks, Basel III
cwicvjb K‡i e¨vs‡Ki Minimum Capital Requirement (MCR) guidelines have been enforced effective from 01 January
Ges Capital to Risk Weighted Asset Ratio (CRAR) Gi cwigvY 2015. Under Basel-III guidelines, the Capital to Risk-
wbY©q Ki‡Q| Basel-III bxwZgvjv †gvZv‡eK 2018 mv‡j Capital weighted Asset Ratio (CRAR) at the end of 2018 stood at
to Risk Weighted Asset Ratio (CRAR) Gi cwigvY 10.10% †Z 10.10 percent compared to 10.35 percent of the previous
80
DIRECTORS’ REPORT
ùvwo‡q‡Q hv Zyjbvg~jKfv‡e c~ee© Z©x erm‡i wQj 10.35% ‡hLv‡b year against regulatory requirement of minimum 10.0
Dfq‡ÿ‡ÎB wbqš¿Yg~jK b~¨bZg cÖ‡qvRb wQj 10%| g~L¨ g~jab percent. Core capital (Tier 1 capital) held at Tk. 43,409.03
million being 8.18 percent of total of Risk Weighted Assets
(Tier 1 Capital) ùvwo‡q‡Q 4,340.90 †KvwU UvKv, hv †gvU Suwy K
(RWA). Supplementary capital (Tier 2 capital) stood at Tk.
wfwËK m¤ú` (RWA) Gi 8.18%| m¤úyiK g~jab (Tier 2 Capital) 10,207.74 million being 1.92 percent of RWA.
ùvwo‡q‡Q 1,020.77 †KvwU UvKv, hv †gvU RWA Gi 1.92%|
The details of risk weighted assets, minimum capital
we¯ÍvwiZfv‡e SuywK wfwËK m¤ú` (RWA), b~¨bZg g~jab ch©vßZv requirement and the capital adequacy ratio are depicted
(MCR) Ges g~jab ch©vßZvi AbycvZ (CRAR) wb‡gœ Dc¯’vcb Kiv below:
n‡jv t (Tk. in million)
Capital Adequacy Ratio* Position as of Change

Particulars
10.35% 10.33% (%)
10.10% 10.08% 2018 2017
Total risk weighted assets 530878.60 460762.90 15.22
7.59% Tier-1 Capital 43409.03 37166.68 16.80
Tier-2 Capital 10207.74 10517.10 (2.94)
Total Capital 53616.77 47034.63 12.44
Minimum Capital requirement 53087.86 46076.29 15.22
Tier-1 capital adequacy ratio 8.18% 8.07% 0.11
Tier-2 capital adequacy ratio 1.92% 2.28% (0.36)
Total capital adequacy ratio 10.10% 10.35% (0.25)
2018 2017 2016 2015 2014
Implementation of BASEL- III in Sonali Bank

†mvbvjx e¨vsK wjwg‡UW G e¨v‡mj-3 ev¯Íevqb Limited
A_©‰bwZK g›`v †_‡K DËi‡Yi j‡ÿ¨ e¨vswKs †m±‡i Gi SzuwK To improve the banking sectors ability to absorb shocks
mnb mÿgZv evov‡bvi Rb¨ evsjv‡`k e¨vsK †`‡ki mKj arising from financial and economic stress, whatever
Zdwkwj e¨vsK‡K 01 Rvbyqvix 2015 †_‡K 2019 mvj ch©šÍ the sources, thus reducing the risk of spillover from the
av‡c av‡c e¨v‡mj-3 ev¯Íevq‡bi Rb¨ weAviwcwW mvK©yjvi bs- financial sector to the real economy, Bangladesh Bank
18/2014 Gi gva¨‡g wb‡`©kbv cÖ`vb K‡i‡Q| êwk^K wbqwš¿Z I instructed all the scheduled banks in Bangladesh through
BRPD circuler no- 18/2014 to implement BASEL-III from 1st
ch©‡eÿYg~jK bZzb GB gvbmgyn we‡klfv‡e wb‡¤œ D‡jøwLZ welq
January, 2015 to 2019 phase by phase.These new global
¸‡jvi Dci ¸iæZ¡ Av‡ivc K‡i‡Q t regulatory and supervisory standards mainly addressed the
mKj Pjgvb I Aemvqb cÖwZôv‡bi g~ja‡bi ¸bMZ gvb following areas:
evwo‡q SzuwK Gov‡bv| Raise the quality level of capital to ensure banks are
g~jab KvVv‡gvq SzuwK †gvKv‡ejvi mÿgZv evov‡bv| better able to absorb losses on both a going 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;
ch©‡eÿY cÖwµqv ch©v‡jvPbvi Rb¨ bZzb bZzb gvb ˆZix Kiv
Introduce leverage ratio to serve as a backstop to the
( wcjvi-2) Ges risk-besed capital measure;
cÖwZ‡e`b cÖKv‡ki gva¨‡g mKj‡K AeMZ Kiv (wcjvi-3) Raise the standards for the supervisory review process
BZ¨vw` | (Piller-II); and
Public disclosures (Piller- III) etc.
†mvbvjx e¨vsK wjwg‡UW 01 Rvbyqvix 2015 †_‡K e¨v‡mj-3
Accordingly Sonali Bank Limited has started BASEL-III
ev¯Íevqb ïiæ K‡i‡Q Ges e¨v‡mj-3 Gi wb‡`©kbvi Av‡jv‡K implementation from January, 2015 and Capital to Risk-
SzuwKhy³ m¤ú` I g~ja‡bi AbycvZ (wmAviGAvi) evsjv‡`k weighted Asset Ratio (CRAR) of the Bank is being submitted
e¨vs‡K cÖwZ‡e`bvKv‡i †cÖiY Ki‡Q| to Bangladesh Bank as per BASEL- III requirement.
mv¤úªwZK AvgvbZ †cÖvWv±mg~n t Recent Deposit Products

To mobilize more deposit, Bank has introduced several
AvgvbZ msMÖ‡ni j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW KZ©„K PvjyK…Z new schemes: (a) Non-resident Deposit Scheme (NRDS)
bZzb AvgvbZ ¯‹xg¸‡jv wb¤œiƒc: (K) bb-‡iwmW¨v›U wW‡cvwRU (b) Sonali Bank Daily Profit Scheme (SBDPS) (c) School
¯‹xg (L) †mvbvjx e¨vsK †WBwj cÖwdU ¯‹xg (M) ¯‹zj e¨vswKs ¯‹xg Banking Scheme (SBS) (d) Retirement Savings Scheme
(RSS) (e) Sonali Bank Retirement Savings Scheme (SBRSS)
(N) wiUvqvi‡g›U †mwfsm ¯‹xg (O) ‡mvbvjx e¨vsK wiUvqvi‡g›U (f) Sonali Bank Millionaire Scheme (SBMS) (g) Triple Benefit
†mwfsm ¯‹xg (P) ‡mvbvjx e¨vsK wgwjIwbqvi ¯‹xg (Q) wUªcj Scheme (TBS) (h) Sonali Bank Krisok Savings Scheme
†ewbwdU ¯‹xg (R) ‡mvbvjx e¨vsK K…lK †mwfsm ¯‹xg (S) gy`vivev (SBKSS) (i) Mudaraba Monthly Profit Scheme (MMPS) (j)
gvš’wj cÖwdU ¯‹xg (T) Avj-Iqvw`qvn Kv‡i›U GKvD›U (U) Al-Wadeeah Current A/c (AWCA) (k) Mudaraba Savings A/c
(MSA) (l) Mudaraba Special Notice Deposit A/c (MSND)
gy`vivev †mwfsm GKvD›U (V) gy`vivev †¯úkvj †bvwUk wW‡cvwRU (m) Mudaraba Term Deposit A/c (MTDA) (n) Mudaraba
GKvD›U (W) gy`vivev Uvg© wW‡cvwRU GKvD›U (X) gy`vivev nÀ Hajj Saving A/c (MHSA) (o) Mudaraba Monthly Profit

†mwfsm GKvD›U Ges (Y) gy`vivev †mvbvjx gvš’wj wW‡cvwRU ¯‹xg| Scheme (MMPS) (p) Mudaraba Sonali Monthly Deposit
wW‡cvwRU ¯‹xg¸‡jv Pvjy Kivi d‡j e¨vs‡Ki AvgvbZ D‡jøL‡hvM¨ Scheme(SMDS) and (q) Sonali Monthly Denmohor Deposit
cwigv‡Y e„w× †c‡q‡Q| Scheme(SMDDS). As a result, the deposit has increased
significantly for the last few years.
eëmvwqK Kvh©µg Ges Avw_©K Ae¯’v ch©v‡jvPbv: Analysis of Business Performance and Financial
Position
eëmv I gybvdvi cÖe„w×
Positive Business and Profit Growth
wW‡m¤î, 2018 ch©šÍ †mvbvjx e¨vs‡Ki 1215 wU kvLvi †gvU AvgvbZ SBL with its 1215 branches became successful in
Ges FY I AwMÖ‡gi cwigvY ùvwo‡q‡Q h_vµ‡g 1,09,386.62 mobilizing deposits of Tk. 1,093,866.19 million and given
†KvwU UvKv Ges 46,408.33 †KvwU UvKv| e¨vs‡Ki Avq 2017 Tk. 464,083.32 million as loans and advances up to 31
December, 2018. During the year 2018, total income
mv‡ji 7,435.30†KvwU UvKv †_‡K 5.34% e„w× †c‡q 7,832.15 of the Bank increased by 5.34 percent to Tk. 78,321.49
†KvwU UvKvq DbœxZ n‡q‡Q| e¨vs‡Ki e¨q n«vm †c‡q 5,806.41 million which was Tk. 74,353.01 million in 2017. The
†KvwU UvKvq ùvwo‡q‡Q hv c~e©eZ©x eQ‡ii 6,239.81 †KvwU UvKvi total expenditure stood at Tk. 58,064.12 million showing
a decrease of 6.95 percent in 2017 as against total
Zzjbvq 6.95% Kg| 2018 mv‡j G e¨vs‡Ki 2,025.74 †KvwU expenditure of Tk. 62,398.11 million of previous year.
UvKv cwiPvjb gybvdv AwR©Z n‡q‡Q hv evsjv‡`‡ki e¨vswKs Operating profit of the bank was 20,257.38 million which
BwZnv‡m m‡e©v”P| is the highest in the banking history of Bangladesh.
Review of Income Statement
Avq ch©v‡jvPbv weeiYx (wgwjqb UvKvq) (Tk. in million)
2018 2017
Position as of
78321.49
34341.09
(Tk. in million) Changes

74353.01
32708.30
No Types of Income
%
33955.80
2018 2017
27674.49
1. Interest Income 32708.30 27674.49 18.19

12410.60
11014.68
2. Investment Income 34341.09 33955.80 1.13

257.42
312.12
Commission/Exchange/
3. 11014.68 12410.60 (11.25)
Brokerage
Interest Investment Commission/ Other Total
Income Income Exchange/ operating Income 4. Other operating Income 257.42 312.12 (17.69)
Brokerage Income
5. Total Income 78321.49 74353.01 5.34
my` Avq Interest Income

†mvbvjx e¨vsK wjwg‡UW Gi my` Avq 2017 mv‡ji 2,767.45 SBL’s interest income increased to Tk. 32,708.30 million
†KvwU UvKv †_‡K 18.19% e„w× †c‡q 2018 mv‡j ùvwo‡q‡Q in 2018 from Tk. 27,674.49 million in 2017 which is 18.19
3,270.83 †KvwU UvKvq| †kÖwYK„Z F‡Yi cwigvb n«vm cvIqvq percent higher than the previous year. Interest income
Ges 2018 mv‡j †kÖwYK„Z FY I AwMÖg †_‡K Av`v‡qi cwigvb increased mainly due to decrease of classified loans
e„w× cvIqvq my` Avq e„w× †c‡q‡Q| and advances and significant amount of classified loan
recovery in 2018.
my` e¨q
Interest Expenses
2018 mv‡j e¨vs‡Ki Avgvb‡Zi Ici my` eve` e¨q c~e©eZ©x Interest expenses of SBL also decreased by 9.09 percent to
eQ‡ii Zzjbvq 9.09% n«vm †c‡q ùvwo‡q‡Q 3,900.11 †KvwU Tk. 39,001.11 million in 2018 from Tk. 42,899.80 million in
UvKvq| 2017 mv‡j Gi cwigvY wQj 4,289.98 †KvwU UvKv| 2017. Interest expenses decreased mainly due to increase
my`wenxb I wb¤œ myèvnx AvgvbZ e„w× Ges D”P myèvnx AvgvbZ of no cost and low cost deposits and decrease of high
n«vm cvIqvq my` e¨q K‡g‡Q| cost deposits.
wbU my` Avq Net Interest Income

2018 mvj †k‡l e¨vs‡Ki wbU my` Avq 2017 mv‡ji Zzjbvq In 2018, net interest income of SBL increased by 58.67
58.67% e„w× †c‡q FYvZ¡K 629.28†KvwU UvKvq ùvwo‡q‡Q| percent to negative Tk. 6,292.80 million from negative Tk.
15,225.31 million in 2017. Net interest income increased
c~e©eZ©x eQ‡i Gi cwigvY wQj FYvZ¡K 1,522.53 †KvwU UvKv| mainly due to growth in interest income, decrease of
g~jZt my` Avq e„w× , my`wenxb wb¤œ myèvnx AvgvbZ e„w× I D”P interest expense resulting from increase of no cost and
myèvnx AvgvbZ n«v‡mi d‡j my` e¨q n«vm cvIqvq wbU my` Avq low cost deposits and decrease of high interest bearing
e„w× †c‡q‡Q| deposits of the Bank.
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 1,272.27 †KvwU UvKv †_‡K 11.41% n«vm exchange and other operating income of the Bank
decreased by 11.41 percent to Tk. 11,271.60 million in 2018
†c‡q‡Q| 2018 mv‡j Gi cwigvY 1,127.16 †KvwU UvKv|
compared to Tk. 12,722.72 million in 2017.
82
DIRECTORS’ REPORT
Composition of Revenue Comparison of Revenue Tk. In Million

2018 2017
Other operating
42% Income
Commission/Exchange/
44% Brokerage
Investment Income
0% Interest Income
14%
Investment Income Commission/Exchange/ Brokerage Other operating Income
0% 20% 40% 60% 80% 100%
Interest Income
wewb‡qvM Avq Investment Income

e¨vs‡Ki wewb‡qvM n‡Z cÖvß Avq 2017 mv‡ji Zzjbvq 1.13% e„w× Investment income of the SBL increased by 1.13 percent to
†c‡q 2018 mv‡j ùvwo‡q‡Q 3,434.11 †KvwU UvKv| 2017 mv‡j Tk. 34,341.09 million in 2018 compared to Tk. 33,955.80
Gi cwigvY wQj 3,395.58 †KvwU UvKv| †cvU©‡dvwjI g¨v‡bR‡g›U million in 2017. Investment income increased mainly due
to enlargement of investment portfolio and investment in
Ges evsjv‡`k e¨vs‡Ki cÖvBgvix wWjvi wn‡m‡e miKv‡ii wewfbœ
Government Treasury bills and bonds as a primary dealer
†UªRvix wej I e‡Û wewb‡qvM e„w× Gi cÖavb KviY| of Bangladesh Bank.
cwiPvjb e¨q Operating expenses
2018 mv‡j e¨vs‡Ki cwiPvjb e¨q Gi cwigvY ùvwo‡q‡Q Total operating expenses of the Bank during 2018 has
1,906.30 †KvwU UvKv; c~e©eZ©x eQ‡i Gi cwigvY wQj 1,949.83 reached Tk. 19,063.01 million which was Tk. 19,498.31
†KvwU UvKv| G †ÿ‡Î e¨q n«v‡mi nvi 2.23%| cwiPvjbv cl©‡ì million. This decrease was 2.23% which was possible due
mg‡qvwPZ w`Kwb‡`©kbv Ges e¨vsK eë¯’vcbvi wbweo Z`viwKi to proper and timely direction of the Board of Directors
d‡j cwiPvjb e¨q n«vm Kiv m¤¢e n‡q‡Q| wb‡¤œ cwiPvjb e¨‡qi and the management of the Bank. The summary and
Zzjbvg~jK Ae¯’v D‡jøL Kiv n‡jv t comparison of operating expenses is given below:
(Tk. in million)
(wgwjqb UvKvq)
Ae¯’v Position as of
cwieZ©b Changes
weeiY Particulars
(%) %
2018 2017 2018 2017
†eZb I fvZvw` 13573.89 14191.05 (4.35) Salary and allowances 13573.89 14191.05 (4.35)
Rent,taxes,Insurance and
fvov, Ki, exgv, we`ÿr BZ¨vw` 1102.37 1023.54 7.70 Electricity etc.
1102.37 1023.54 7.70
AvBbx LiP 56.21 52.30 7.48 Legal Expense 56.21 52.30 7.48
WvK, ÷¨v¤ú, †Uwj‡dvb BZ¨vw` 57.74 72.33 (20.17) Postage, Stamp, Telecommunications 57.74 72.33 (20.17)
Qvcv I gwbnvix Ges weÁvcb e¨q 177.05 167.89 5.46 Stationary, Printing and
177.05 167.89 5.46
Advertisements etc.
cÖavb wbe©vnx‡ì †eZb I wd 7.57 9.06 (16.45)
Chief Executive’s Salary and fees 7.57 9.06 (16.45)
cwiPvjK‡ì wd 6.24 7.43 (16.02)
Director’s Fees 6.24 7.43 (16.02)
wbixÿKM‡bi wd 3.87 3.24 19.44 Auditor’s Fees 3.87 3.24 19.44
AePq, †givgZ I iÿbv‡eÿb e¨q 553.93 505.41 9.60 Depreciation, repairs and
553.93 505.41 9.60
Ab¨vb¨ cwiPvjb e¨q 3524.14 3466.06 (1.68) maintenance
Other Operating Expense 3524.14 3466.06 (1.68)
†gvU 19063.01 19498.31 (2.23)
Total 19063.01 19498.31 (2.23)
Comparison of Operating Expenses Composition of Operating Expenses

2018 2017
Other Operating Expense 19%
71%
Depreciation, repairs and
maintenance
Salary, allowances and fees
Auditor’s Fees
Director’s Fees 3%
Rent.,taxes,Insurance, Legal etc
Chief Executive’s Salary 1%
and fees
Stationary, Printing 6% Stationary, Postage, Stamp etc
and advertisements etc
Postage,Stamp, Depreciation, repairs and
Telecommunications maintenance
Legal Expense Other Operating Expense
Rent.taxes,Insurance
and Electricity etc
Salary and allowances
0% 20% 40% 60% 80% 100%

cwiPvjbMZ djvdj Summary of operating results

The summary of operating results with the variation
2018 I 2017 mv‡ji cwiPvjbMZ djvd‡ji mvims‡ÿc wb‡¤œ
between the year 2018 and 2017 is given below:
Zz‡j aiv n‡jv t
(Tk. in million)
Operating Result Amount Change
2018 2017 Particulars
2018 2017 in %
19498.31
39320.38
Interest income 32708.30 27674.49 18.19

31453.21
19063.01
Interest Expense 39001.11 42899.80 9.09

Net Int. Income (6292.80) (15225.31) 58.67
7091.66
7830.30
5218.59 Non-Int. Income 11271.60 12722.72 (11.41)
3987.14
2378.22 Investment Income 34341.09 33955.80 1.13
2482.37
2264.21
Total Operating Income 39320.38 31453.21 25.01
Total Operating Expense 19063.01 19498.31 (2.23)
Profit before Provision 20257.38 11954.90 69.45
Provision for Loans and Advance 7830.30 (468.80) -
-468.80
Provision for diminution in value

957.13 471.45 103.02
of investment
Other Provision 5218.59 2378.22 119.43
Total Total Profit Before Taxes 6251.36 9574.03 (34.71)

Provision for Other Provision Net Profit
Operating Operating Loans and Provision for Taxation after taxation Provision For Taxation 3987.14 2482.37 60.62
Income Expense Advance
Net Profit after taxation 2264.21 7091.66 (68.07)
AvqK‡ii wecix‡Z cÖwfkb Provision for Income Tax

Provision of Tk. 451.87 million was made to meet current
2018 mv‡ji Av‡qi wecix‡Z 45.19 †KvwU UvKv Ki wnmv‡e year’s income tax compared to Tk. 438.64 million in the
cÖwfkb ivLv n‡q‡Q hv c~e©eZ©x eQ‡i wQj 43.86 †KvwU UvKv| preceding year.
Ki cieZ©x bxU gybvdv Profit after Tax
2018 mv‡j e¨vs‡Ki Ki cieZ©x bxU gybvdv ùvwo‡q‡Q 226.42 †KvwU The net profit after taxation stood at Tk. 2,264.21 million in
UvKv| 2017 mv‡j Gi cwigvY wQj 709.17 †KvwU UvKv| evsjv‡`k 2018 as against Tk. 7,091.66 million in 2017. The decrease in
e¨vs‡Ki wb‡`©kbv †gvZv‡eK wewfbœ Lv‡Z iwÿZe¨ cÖwfk‡bi cwigvY profit after tax is attributed to increase in provisions against
e„w× cvIqvq Ges Ki cieZ©x gybvdv cwi‡kvwaZ g~ja‡bi 10% Gi various segments as per directions of Bangladesh Bank.
AwaK bv ivLvi evaëvaKZv _vKvq gybvdv n«vm ‡c‡q‡Q|
Statutory Reserve
mswewae× wiRvf©
As per Bank Company Act, 1991 (amended in 2013), 20
e¨vsK †Kv¤úvbx AvBb, 1991 (ms‡kvwaZ-2013) †gvZv‡eK percent of profit before tax is required to be transferred to
cwi‡kvwaZ g~ja‡bi mgvb bv nIqv ch©šÍ Ki c~e© gybvdvi 20% Statutory Reserve until the balance of the same reaches to
Statutory Reserve G msiÿY Ki‡Z nq| G eQi e¨vs‡Ki Kic~e© the level of paid up capital. For this purpose, an amount
gybvdv n‡Z 125.03 †KvwU UvKv D³ wnmv‡e msiÿY Kiv n‡q‡Q| of Tk. 1,250.27 million has been transferred to statutory
reserve.
mvgvwRK `vqe×Zv Lv‡Z wiRvf© Reserve for Corporate Social Responsibility
evsjv‡`k e¨vs‡Ki MvBWjvBÝ †gvZv‡eK 2019 mv‡ji mvgvwRK In line with Bangladesh Bank Guidelines, a total of Tk. 70.00
`vqe×Zv (CSR) Lv‡Zi LiP †gUv‡bvi Rb¨ 2018 mv‡ji wbU million has been kept for CSR while Tk. 19.01 million has
gybvdv n‡Z 1.90 †KvwU UvKv ¯’vbvšÍic~e©K †gvU 7.00 †KvwU UvKv been provided from net profit after tax for the year 2019
G Lv‡Z msiÿY Kiv n‡q‡Q| 2018 mv‡j G Lv‡Z †gvU Li‡Pi to meet Corporate Social Responsibility (CSR) expenses.
cwigvY wQj 1.90 †KvwU UvKv| In 2018, CSR expenses of the Bank were Tk. 19.01 million.
CSR activities of Sonali Bank Limited CSR activities of Sonali Bank Limited
84
DIRECTORS’ REPORT
gybvdvi D‡jøL‡hvM¨ wb‡`©kKmgyn Significant Profitability Ratio

2018 Ges 2017 mv‡ji gybvdv wb‡`©kKmgyn wb¤œiƒc: The key profitability indicators of the SBL for the years
2018 and 2017 are highlighted below:
(Tk. in million)
Summary of Operating Result
2018 2017 Amount Change
Particulars
2018 2017 in %
83.92
74.13
Return on Investment (ROI) 7.73 7.29 (0.44)
62.78
Non-interest income to total

58.23
58.23 62.78 (4.55)

income
10.63
Cost income ratio 74.13 83.92 (9.79)
9.54
7.73
7.29
3.32
2.89
0.58
0.18
Profit after tax to total income 2.89 9.54 (6.65)
Return on assets(ROA) 0.18 0.58 (0.40)

Return on Non-interest Cost Profit after Return on Return on
Investment income to income tax to total assets equity
(ROI) total income ratio income (ROA) (ROE) Return on equity (ROE) 3.32 10.63 (7.31)
e¨v‡jÝkxU ch©v‡jvPbv Review of Balance Sheet
†gvU m¤ú` Total assets

Total assets of the Bank stood at Tk. 1,306,842.32 million as
e¨vs‡Ki m¤ú‡ì cwigvY 2017 mv‡ji 1,25,671.16 †KvwU UvKv on 31 December 2018 compared to that of Tk. 1,256,711.62
n‡Z 3.99% e„w× †c‡q 2018 mv‡j 1,30,684.23 †KvwU UvKvq million as on 31 December 2017 registering a positive growth
DbœxZ n‡q‡Q| cÖvBgvix wWjvi wnmv‡e wmwKDwiwU I GmGjAvi of 3.99 percent .The increase in assets of SBL is largely driven
(SLR) G msiÿ‡Yi D‡Ï‡k¨ AvnwiZ ewa©Z Avgvb‡Zi Kvi‡YB by growth of deposits which is ultimately used in holding of
m¤ú‡ì G cÖe„w× n‡q‡Q| securities or for SLR purpose as a primary dealer.
Summary of Assets A summary of assets of SBL is given below:

2018 2017
(Tk. in million)
Other assets
% of total
Fixed assets
Change assets
Particulars 2018 2017
Loans and advances in %
2018 2017
Investments
Money at call and

short notice Cash in Hand 5016.92 5112.71 (1.87) 0.38 0.41
Balance with other Banks
and financialInstitution Balance with
Balance with Bangladesh Bangladesh bank 93111.12 82883.27 12.34 7.12 6.60
bank and its agentBank
and its agent Bank
Cash in Hand
0% 20% 40% 60% 80% 100% Balance with other
Banks and financial 107494.68 68568.55 56.77 8.23 5.46
Institution
34%
36% Money at call and
19723.20 22564.80 (12.59) 1.51 1.80
short notice
Loans and advances
Fixed assets Investments 444051.60 462576.62 (4.00) 33.98 36.81

Other assets
Loans and
Cash in Hand 464083.32 423218.35 9.66 35.51 33.68
advances
Balance with Bangladesh
bank and its agent Bank
Fixed assets 33376.58 33306.75 0.21 2.56 2.65
Balance with other Banks
1% and financial Institution
Money at call and short notice

8% 3% Other assets 139985.20 158480.56 (11.67) 10.71 12.61
7% 11% Investments
0%
Total assets 1306842.32 1256711.62 3.99 100 100
nv‡Z bM` Ges 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
As on 31 December 2018, cash in hand and balances with
31 wW‡m¤î 2018 Zvwi‡L nv‡Z bM` Ges evsjv‡`k e¨vsK I Bangladesh Bank and its agent banks stood at Tk. 98,128.04
Gi G‡R›U e¨vs‡K e¨v‡jÝ Gi cwigvY ùvwo‡q‡Q 9,812.80 million as against Tk. 87,995.98 million as on 31 December
†KvwU UvKv, hv c~e©eZ©x eQ‡ii 8,799.60 †KvwU UvKvi Zzjbvq 2017 registering a growth of 11.51 percent. The growth in
deposits increased the Cash Reserve Requirement (CRR)
11.51% †ekx| Gi d‡j e¨vs‡Ki bM` mwÂwZi (CRR) cwigvY
which should be currently maintained at 5.50 percent

e„w× †c‡q G eQi 7.30% G ùvwo‡q‡Q, hv Kgc‡ÿ 5.50% ivLv and SBL has maintained 7.30 percent in the year under
review. Besides, adequate cash was required to provide
eva¨Zvg~jK| ZvQvov wewfbœ †Wwjfvix P¨v‡b‡j MÖvnK‡ì Pvwn`v
uninterrupted cash services to the growing number of
†gUv‡bvi Rb¨ wbiwew”Qbœ K¨vk mieiv‡niI eë¯’v Kiv nq| customers through multiple delivery channels. Details
we¯ÍvwiZ weeiY AwW‡UW wnmv‡ei 3 bs †bv‡U wea„Z i‡q‡Q| have been given at notes#3 to the accounts.
e¨v‡jÝ DB_ Av`vi e¨vsKm GÛ wdb¨vwÝqvj Bbw÷wUDkb Balance with Other Banks and Financial Institutions
A portion of the excess fund, after meeting the requirement
e¨vs‡Ki ‡jvb I Bb‡f÷‡g‡›Ui Pvwn`v †gUv‡bv Ges SLR G to finance loan portfolio and investments including SLR, has
msiÿ‡Yi ci AwZwi³ dv‡Ûi mwVK eënvi Ges e¨vs‡Ki been placed with other banks and financial institutions as
gybvdv e„w×i j‡ÿ¨ Ab¨vb¨ e¨vsK I Avw_©K cÖwZôv‡b dv‡Ûi term deposits for optimizing the utilization of fund and profit
GKwU Ask Rgv ivLv nq| †UªRvwi I evwY‡R¨ A_©vq‡bi Kvh©µg of the Bank. In addition, Treasury Management Division of
the Bank has to maintain some special notice deposit (SND)
myôzfv‡e cwiPvjbvi Rb¨ e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi accounts and current deposit (CD) accounts with other
g¨v‡bR‡g›U wWwfkb KZ…©K †`‡k I †`‡ki evB‡i Aew¯’Z Ab¨vb¨ banks and financial institutions in and outside the country for
e¨vsK I Avw_©K cªwZôv‡b SND Ges PjwZ wnmve cwiPvjbv Kiv smooth functioning of treasury operations and trade finance.
Because of cautionary credit and liquidity management and
nq| FY cÖ`v‡b mZK©Zv Ges F‡Yi Zzjbvq AvgvbZ e„w×RwbZ
higher deposit growth than loans and advances, balances
Kvi‡Y Ab¨vb¨ e¨vsK I Avw_©K cªwZôv‡b e¨v‡j‡Ýi cwigvY outstanding with other banks and financial institutions
2017 mv‡ji 6,856.85 †KvwU UvKv ‡_‡K 56.77% e„w× †c‡q increased to Tk. 107,494.38 million in 2018 from Tk. 68,568.55
G eQi 10,749.44 †KvwU UvKvq ùvwo‡q‡Q| Gi g‡a¨ 8,491.51 million in 2017 registering a growth of 56.77 percent. Out of
this amount, Tk. 84,915.14 million has been kept in banks and
†KvwU UvKv evsjv‡`‡ki Ab¨vb¨ e¨vsK I Avw_©K cÖwZôv‡b Ges financial institutions in Bangladesh and the rest amount Tk.
2,257.92 †KvwU UvKv we‡`kx e¨vs‡K iwÿZ Av‡Q| we¯ÍvwiZ 22,579.24 million has been kept in foreign banks. Details of
weeiY AwW‡UW wnmv‡ei 4 bs †bv‡U wea„Z i‡q‡Q| balance with other banks and financial institutions are given
at notes# 4 to the accounts.
gvwb GU Kj Ab kU© †bvwUk Money at Call on Short Notice
gvwb GU Kj GÛ kU© †bvwUk Gi cwigvY 2018 mv‡j ùvwo‡q‡Q Money at call and short notice decreased by 12.59 percent
1,972.32 †KvwU UvKv hv c~e©eZ©x eQ‡ii 2,256.48 †KvwU UvKvi to Tk. 19,723.20 million at the end of 2018 compared to
Tk. 22,564.80 million at the end of 2017.
Zzjbvq 12.59% Kg|
Investments
wewb‡qvM
The Bank’s total investments stood at Tk. 444,051.60
e¨vs‡Ki †gvU wewb‡qvM Gi cwigvY 2017 mv‡ji 46,257.66 million in 2018 which was Tk. 462,576.62 million in 2017
†KvwU UvKv †_‡K 1,852.50 †KvwU UvKv ev 4.00% n«vm †c‡q meaning a decrease by Tk. 18,525.02 million or 4.00
2018 mv‡j 44,405.16 †KvwU UvKvq ùvwo‡q‡Q| Gi g‡a¨ percent. The investments mainly include Government
securities of Tk. 377,242.88 million or 84.95 percent
D‡jøL‡hvM¨ n‡”Q miKvwi wmwKDwiwU Lv‡Z 37,724.29 †KvwU of total investments maintained as a primary dealer in
UvKv wewb‡qvM, hv †gvU wewb‡qv‡Mi 84.95%| e¨vsK 13% addition to cover SLR requirement. In place of 13 percent
mswewae× Zvij¨ mwÂwZi ¯’‡j 38.27% mwÂwZ msiÿY K‡i‡Q, SLR, SBL has maintained 38.27 percent with Bangladesh
Bank which is an indication of the strength of the Bank.
hv e¨vs‡Ki kw³gËvi cwiPvqK|
Loans and Advances
FY I AwMÖg
Loans and advances constitute the largest portion in asset
†mvbvjx e¨vsK K…wl, wkí, GmGgB I evwY‡Rï Drcv`bkxj I side of SBL’s Balance Sheet which was Tk. 464,083.32
AMÖvwaKvi Lv‡Z A_©vqb Ae¨vnZ †i‡L‡Q| e¨vs‡Ki †gvU m¤ú‡ì million or 34.77 percent of total assets in 2018. SBL’s loans
and advances increased by 9.66 percent from Tk. 423,218.35
eo Ask `Lj K‡i Av‡Q FY I AwMÖg, hvi w¯’wZ 46,408.33 million in 2017 to Tk. 464,083.32 million in 2018. SBL has
†KvwU UvKv ev ‡gvU m¤ú‡ì 34.77% Ges e„w×i nvi 9.66%| continued its lending operations in productive and priority
e¨vs‡Ki cÖ`vbK…Z F‡Yi cwigvb 2017 mv‡j wQj 42,321.84 sectors covering agriculture, industry, SME, trade and
†KvwU UvKv| RvZxq AMÖvwaKvi gyjK miKvwi, cvewjK I commerce. The Bank has extended credit to Government,
public and private sectors in line with national priority. The
cÖvB‡fU LvZmgy‡n e¨vsK FY myweav cÖ`vb Ki‡Q| e¨vs‡Ki percentage of total loans and advances against total deposit
eZ©gvb GwW †iwkI 42.43%| 2018 mvj †k‡l ‡kÖYxK…Z FY I (AD ratio) is 42.43%. Details of loans and advances are given
AwMÖ‡gi cwigvY ùvwo‡q‡Q 12,188.34 †KvwU UvKv, hv c~e©eZ©x at notes# 7 to the accounts. The amount of classified loans
and advances stood at Tk. 121,883.40 million in 2018 as
eQ‡i wQj 14,930.24 †KvwU UvKv| bb cvidwg©s F‡Yi cwigvY
against Tk. 149,302.80 million in 2017. Percentage of non-
2017 mv‡ji 35.28% †_‡K n«vm †c‡q 26.26% G ùvwo‡q‡Q| performing loans of SBL was 26.26 in 2018 which was 35.28
we¯ÍvwiZ weeiY wbixwÿZ wnmv‡ei 7 bs †bv‡U wea„Z i‡q‡Q| percent in 2017.
86
DIRECTORS’ REPORT
LvZ wfwËK †gvU FY I AwMÖg Composition of Total Loans and Advances

Types of Loans and Change
FY I AwMÖ‡gi cwieZ©b No. 2018 2017
bs 2018 2017 Advances In (%)
LvZmgy‡ni bvg (%) 1 Agricultural/Rural Credit 47280 44620 5.96
1 K…wl 47280 44620 5.96
2 Micro Credit 12191 12182 0.07
2 gvB‡µv †µwWU 12191 12182 0.07
3 Industrial Credit 71044 71216 (0.24)
3 wkí FY 71044 71216 (0.24)
4 Agro-based Industrial Credit 31560 30848 2.31
4 K…wlwfwËK wkí cÖKí 31560 30848 2.31
5 AvšÍR©vwZK evwYR¨ 78310 79655 (1.69) 5 International Trade 78310 79655 (1.69)
6 Gm Gg B A_©vqb 20730 19181 8.08 6 SME Finance 20730 19181 8.08
7 mvaviY FY I Ab¨vb¨ 202971 165516 22.63 7 General Advance & Others 202971 165516 22.63
me©‡gvU 464086 423218 9.66 Total 464086 423218 9.66
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 bZzb To accelerate the rate of credit growth, some new loan/
investment products were introduced by the Bank, namely
FY †cÖvWv±¸‡jv n‡jv: (K) evB mvB‡Kj †jvb ¯‹xg di ¯‹zj (a) Bicycle Loan Scheme for School Going Students (b)
†Mvwqs ÷z‡W›Um (L) ¯§j GÛ wgwWqvg G›UvicÖvBR (GmGgB) †jvb Small and Medium Enterprise (SME) Loan (c) Special Small
(M) †¯úkvj ¯§j †jvb (N) iæivj ¯§j dvwg©s †jvb (O) †cvfvwU© Loan (d) Rural Small Farming Loan (e) Rural Small Business
Gwjwf‡qkb Gwm÷¨v›U †cÖvMÖvg (P) cÖevmx Kg©ms¯’vb FY cÖKí (Q) Loan (f) Poverty Alleviation Assistance Programme (g)
Probashi Karmasangsthan Rin Prokalpo (h) Education Loan
wkÿv FY (R) Rv‡Mv bvix MÖvgxY FY (S) gyw³‡hv×v FY (T) d‡ib (i) Jago Nari Grameen Rin (j) Term loan to Freedom Fighters
GWz‡Kkb †jvb †cÖvMÖvg (U) nvDR‡nvì wWD‡iej ¯‹xg AvÛvi evB (k) Foreign Education Loan Program (FELP) (l) Household
gyqv¾vj †gvW BZ¨vw`| Durable Scheme under Bai-Muazzal Mode etc.
mvaviY FY General Credits

SBL is playing a vital role in the national economy by
wewfbœ cvewjK I cÖvB‡fU †m±‡ii cÖwZôvb¸‡jv‡Z FY myweav extending various credit facilities to both public and private
cÖ`v‡bi gva¨‡g †mvbvjx e¨vsK RvZxq A_©bxwZ‡Z we‡kl Ae`vb sector organizations and entities. In the year 2018, the
†i‡L P‡j‡Q| mvaviY FY Lv‡Z e¨vsK 2018 mv‡j †gvU Bank disbursed loans amounting Tk. 40,430.00 million to
the private sector which was Tk. 38,907.00 million in 2017
4,043.00 †KvwU UvKv FY weZiY K‡i‡Q| 2017 mv‡j FY under general credit head. On the other hand, classified
weZi‡bi cwigvY wQj 3,890.70 †KvwU UvKv| G Lv‡Z †kÖYxK…Z loans under general credit amounting to Tk. 16,475.10
FY n‡Z Av`vq n‡q‡Q 1,647.51 †KvwU UvKv hvi cwigvY 2017 million have been recovered during the year which was
mv‡j wQj 281.08 †KvwU UvKv| Tk. 2,810.80 million in 2017.
A tabular presentation shows the overall position of

e¨vs‡Ki mvaviY FY Lv‡Zi mvwe©K Ae¯’v wb¤œiƒct
General Credit of the Bank.
µ: cwieZ©b Change
No. Particulars 2018 2017
wk‡ivbvg 2018 2017 In (%)
bs (%)
1 Total Outstanding 127200 100189 26.96
1 †gvU w¯’wZ 127200 100189 26.96
2 Total Disbursement 40430 38907 3.91
2 †gvU weZiY 40430 38907 3.91
3 Total Recovery 16475 2811 486.09
3 †gvU Av`vq 16475 2811 486.09
K…wlwfwËK wkí FY cÖKí Agro-based Industrial Finance Program

To ensure country’s agricultural development as well as
mvwe©Kfv‡e †`‡ki †UKmB Av_©-mvgvwRK Dbœq‡bi j‡ÿ¨ †`‡ki
overall socio-economic sustainability, Sonali Bank Limited
K…wl Lv‡Zi Dbœq‡b †mvbvjx e¨vsK wjwg‡UW K…wlwfwËK wkí FY has extended credit facilities to the agro-based industries
cÖK‡íi Aax‡b K…wlwfwËK wk‡í FY myweav cÖ`vb Ki‡Q| 2018 under agro-based industrial sector financing scheme. In
mv‡j G Lv‡Z e¨vsK me©‡gvU 534.26 †KvwU UvKv FY weZiY the year 2018, SBL disbursed Tk. 5,342.60 million and
K‡i‡Q Ges Ae‡jvcbmn wewfbœ K…wlwfwËK cÖKímgyn n‡Z recovered Tk. 4,099.50 million including write-off loans
from different agro-based projects.
409.95 †KvwU UvKv Av`vq K‡i‡Q|
The Bank is extending project loan on simple terms
Av_©-mvgvwRK Dbœq‡b e¨vsK Zvi mywbw`©ó 120 wU kvLvi gva¨‡g and conditions through 120 designated branches for
mnR k‡Z© cÖKí FY cÖ`vb Ki‡Q| ZvQvov e¨vs‡Ki cÖvq mKj kvLv improvement of socio-economic condition. Besides,

n‡Z G cÖK‡íi wkí Lv‡Z PjwZ gyjab FY weZiY Kiv n‡”Q| working capital loans to industries are also being disbursed
by almost all the branches throughout the country. It
Zvi g‡a¨ we‡RGgwmÕi Aax‡b 5wU RyU wgj I 21wU ‡emiKvix
may be mentioned that a large amount of loan has been
RyU wgj I RyU w¯úwbs wg‡j D‡jøL‡hvM¨ cwigvY FY weZiY Kiv disbursed to 5 jute mills under BJMC and 21 private jute
n‡q‡Q| 2018 mvj ch©šÍ G Lv‡Z 780wU FY MÖnxZv cÖwZôvb I mills and jute spinning mills. The amount of outstanding
e¨w³‡K †gvU 3,155.65 †KvwU UvKv FY weZiY Kiv n‡q‡Q| loan stood Tk. 31,556.50 million in 2018 which was Tk.
2017 mvj ch©šÍ G Lv‡Z FY weZi‡Yi cwigvY wQj 3,071.58 30,715.80 million as on 31 December 2017. Total numbers
†KvwU UvKv| of existing borrowers are 780 which remarks overall
growth or increasing index in comparison to recent years.
†kÖwYK…Z FY Av`vq Kvh©µg Classified Loan Recovery Program
2018 mv‡j e¨vs‡Ki †kÖwYK…Z F‡Yi cwigvY ùvwo‡q‡Q 12,188.34 The amount of classified loan stood at Tk. 121,883.40
†KvwU UvKv A_©vr e¨vs‡Ki †gvU FY I AwMÖg 46,408.33 †KvwU million which is 26.26 percent of the Bank’s total loan
UvKvi 26.26%| 2017 mv‡j †gvU 42,321.83 †KvwU UvKvi FY of Tk. 464,083.32 million as on 31 December, 2018. The
amount of classified loan was Tk. 149,302.40 million (35.28
I AwMÖ‡gi g‡a¨ 14,930.24 †KvwU UvKv ev 35.28% †kÖwYK…Z percent of bank’s total loan) against total outstanding
wQj| †kÖwYK…Z I Ae‡jvcbK…Z FY n‡Z 2018 mv‡j Av`v‡qi loans and advance of Tk. 423,218.35 million in 2017. The
cwigvY h_vµ‡g 3,675.72 †KvwU UvKv Ges 94.55 †KvwU UvKv| amount of recovery against classified and written off loan
eQ‡ii ïiæ‡ZB Av`vjZ ewnfy©Z mgvavb, ewa©Z my` gIKzd myweav in 2018 are Tk. 36,757.20 million and Tk. 945.50 million
respectively. In 2018, the Bank made all out efforts to
Ges evsjv‡`k e¨vs‡Ki cwjwm I A_© gš¿Yvjq Gi MvBWjvBÝ recover non-performing loans by strengthening recovery
†gvZv‡eK wiwmwWDjKi‡Yi gva¨‡g bb-cvidwg©s †jvb n‡Z measures like outside court settlement, extending interest
Av`v‡qi Kvh©µg †Rvi`vi Kiv nq| wb‡¤œ wewfbœ Av`vj‡Zi exemption facilities and rescheduling as per Bangladesh
Bank policies and Ministry of Finance’s guidelines. Table
gva¨‡g 2018 I 2017 mvj ch©šÍ wewfbœ F‡Yi wecix‡Z gvgjvi below shows the status of litigation in 2018 and in 2017
Ae¯’v Zz‡j aiv n‡jvt against the defaulters and the amount recovered against
classified loans:
gvgjvi Ae¯’v Litigation Status
gvgjvi msL¨v gvgjvi msL¨v 2018 Outstanding of suits Outstanding of suits Disposal /
2018 2017 mv‡j Av`vq as on 2017 as on 2016 Recovery in 2017
Name of
bs Av`vj‡Zi bvg No
the Court
msL¨v cwigvb msL¨v cwigvb msL¨v cwigvb Number Amount Number Amount Number Amount
Artharin
1 A_©FY Av`vjZ 3944 202550.40 3961 175788.30 399 6534.70 1
Adalat
3944 202550.40 3961 175788.30 399 6534.70
mvwU©wd‡KU Certificate
2 13862 698.80 14815 650.50 2385 272.20 2 13862 698.80 14815 650.50 2385 272.20
Av`vjZ Adalat
‡`Dwjqv Dewlia
3 01 1.10 01 20.60 - 19.50 3 01 1.10 01 20.60 - 19.50
Av`vjZ Adalat
Other
4 Ab¨vb¨ Av`vjZ 783 39829.20 408 6931.20 154 731.10 4
Adalat
783 39829.20 514 8303.00 154 731.10
me©‡gvU 18590 243079.50 19185 183390.60 2938 7557.30 Total 18590 243079.50 19291 184762.40 2938 7557.30
gvgjvi gva¨‡g 2018 mv‡j 755.73 †KvwU UvKv Av`vq n‡q‡Q| The amount involved in disposal/recovery against the
cases stood Tk. 7,557.30 million in 2018.
`vq‡`bvi mvi ms‡ÿc Summary of Liabilities
Mix %
cwieZ©b wgkÖY %
bs wk‡ivbvg 2018 2017 No. Particulars 2018 2017 Growth%
(%)
2018 2017 2018 2017
Ab¨vb¨ e¨vsK I Borrowings

other Banks
1 Avw_©K cÖwZôvb 659.17 714.24 (7.71) 0.05 0.06 1 and financial 659.17 714.24 (7.71) 0.05 0.06
n‡Z avi institutions and
agents
2 †gvU AvgvbZ 1093866.19 1064311.08 2.78 88.45 89.39 2 Total deposits 1093866.19 1064311.08 2.71 88.45 89.39
3 Other Liabilities 142180.09 125598.83 13.20 11.50 10.55

3 Ab¨vb¨ †`bv 142180.09 125598.83 13.20 11.50 10.55
4 Total Liabilities 1236705.45 1190624.15 3.87 100 100

4 †gvU †`bv 1236705.45 1190624.15 3.87 100 100
88
DIRECTORS’ REPORT
Borrowings from other banks, Financial

Ab¨vb¨ e¨vsK, Avw_©K cÖwZôvb Ges G‡R›U n‡Z avi Institutions and Agents
2018 mv‡j evsjv‡`k e¨vsK Gi cyb:A_©vqb Gi AvIZvq Sonali Bank Limited has been given an amount of Tk.
†mvbvjx e¨vsK wjwg‡UW‡K 65.92 †KvwU UvKv avi †`qv n‡q‡Q| 659.17 million only by Bangladesh Bank for refinance in
Gi g‡a¨ 65.91 †KvwU UvKv cvU Lv‡Z cyb:A_©vqb Ges Aewkó 2018 of which Tk. 659.10 million for refinance against
UvKv RHFG †cÖv‡R‡± cyb:A_©vqb Gi Rb¨ avi †`qv n‡q‡Q| jute sector and rest of the amount for refinance against
GQvov †`‡ki †fZ‡i I evB‡i Ab¨ †Kvb cÖwZôv‡bi wbKU RHFG project. Except these, it has no borrowing inside or
e¨vs‡Ki †Kvb avi †bB| 2017 mv‡j e¨vs‡Ki av‡ii cwigvY wQj outside Bangladesh. The borrowed amount was Tk. 714.24
71.42 †KvwU UvKv| million in 2017.
AvgvbZ Deposits
The total deposit of the Bank as on 31 December, 2018
2017 mv‡ji 1,06,431.11 †KvwU UvKv n‡Z 2.78% ev 2,955.50
was TK. 1,093,866.19 million showing an increase of Tk.
†KvwU UvKv e„w× †c‡q 2018 mv‡j e¨vs‡Ki †gvU Avgvb‡Zi 29,555 million or 2.78 percent over 1,064,311.08 million
cwigvY ùvwo‡q‡Q 1,09,386.62 †KvwU UvKv| †gvU Avgvb‡Zi of the preceding year. Total deposit comprising current
g‡a¨ mePvB‡Z ¸iæZ¡c~Y© PjwZ Avgvb‡Zi cwigvY 2017 mv‡ji deposit and other accounts stood Tk. 241,757.78 million
23,895.41 †KvwU UvKv n‡Z 1.17% e„w× †c‡q 24,175.78 †KvwU which was Tk. 238,954.10 million in 2017. The position
UvKvq DbœxZ n‡q‡Q| LvZIqvix Avgvb‡Zi cwigvY, cÖe„w× I of deposit, growth of deposit and deposit mix are given
wgkÖY wb‡¤œ cÖ`wk©Z n‡jv| below:

AvgvbZ wgkÖY Change Deposit Mix(%)
cwieZ©Y Sl. Type 2018 2017
bs LvZ 2018 2017 % (%) 2018 2017
(%)
2018 2017 Current
PjwZ AvgvbZ Deposit
1 241758 238954 1.17 22.10 22.45 1 241758 238954 1.17 22.10 22.45
& Other
I Ab¨vb¨
Accounts
2 wejm †c‡qej 13059 12364 5.62 1.19 1.16
2 Bills payables 13059 12364 5.62 1.19 1.16
3 mÂqx AvgvbZ 348404 319579 9.02 31.85 30.03 Savings
3 348404 319579 9.02 31.85 30.03
†¯úkvj †bvwUk Deposits
4 wW‡cvwRU 108945 86679 25.69 9.96 8.14 Special Notice
4 108945 86679 25.69 9.96 8.14
(SND) Deposit (SND)
wd·W wW‡cvwRU Fixed Deposits
(Including
5 (wW‡cvwRU ¯‹xg 381700 406735 (6.16) 34.90 38.22 5 381700 406735 (6.16) 34.90 38.22
Deposit
mn) Schemes)
†gvU 1093866 1064311 2.78 100 100 Total 1093866 1064311 2.78 100 100
g~jZ †`ke¨vcx we¯Í…Z kvLv, AbjvBb †mev Pvjyi gva¨‡g MÖvnK The growth in deposits was attributed to largest branch
†mevi gv‡bvbœqb, GwUGg mvwf©m PvjyKiY Ges †iwgU¨v‡Ýi network, improvement of service standard by introducing
online banking, expanding ATM networks and efficient
UvKv‡K wePÿYZvi mv‡_ ¯^í‡gqvw` I `xN©‡gqvw` Avgvb‡Z channeling of remittance which was partially converted
iƒcvšÍi Ges bZzb AvgvbZ †cÖvWv± cÖeZ©‡bi Kvi‡YB Avgvb‡Zi into short and long term deposits, launching new deposit
G cÖe„w× N‡U‡Q| c~‡e©i eQi¸‡jvi b¨vq 2018 mv‡jI Avgvb‡Zi products. As in previous year, fixed deposits constituted of
g~j LvZ wd·W wW‡cvwRU hvi cwigvY †gvU Avgvb‡Zi 34.90% the main component of the deposit item that was 34.90
percent of total deposits in 2018. After fixed deposits,
ev 38,170.00 †KvwU UvKv| GQvov mÂqx Avgvb‡Zi cwigvY savings deposit stood Tk. 348,404 million in 2018 which
34,840.40 †KvwU UvKv hv 2017 mv‡ji 31,957.90 †KvwU n‡Z was Tk. 319,579 million in 2017 meaning 9.02 percent
9.02% e„w× †c‡q‡Q Ges GwU g~j Avgvb‡Zi 31.85%| wejm growth and accounted for 31.85 percent of the total
deposits. Bills payable and current & other accounts
†c‡qej Ges PjwZ I Ab¨vb¨ Avgvb‡Zi cwigvb 2017 mv‡j wQj
deposits stood at Tk. 13,059 million and Tk. 241,758 million
h_vµ‡g 1,236.40 †KvwU UvKv I 23,895.40 †KvwU UvKv, hv respectively in 2018 which was Tk. 12,364 million and Tk.
2018 mv‡j ùvwo‡q‡Q h_vµ‡g 1,305.90 †KvwU I 24,175.80 238,954 million in 2017 meaning 5.62 percent and 1.17
†KvwU UvKv| e„w×i nvi h_vµ‡g 5.62% I 1.17%| percent growth respectively.
Avg`vwb-ißvwb eëmv Import and Export

2018 mv‡j e¨vs‡Ki Avg`vwb I ißvwb eëmvq A_©vq‡bi cwigvY The total import and export businesses handled by
h_vµ‡g 25,702.00 †KvwU UvKv Ges 3,250.26 †KvwU UvKv| the Bank in 2018 stood at Tk. 257,020.00 million and
c~e©eZ©x eQ‡i Gi cwigvY wQj h_vµ‡g 1,15,964.43 †KvwU Tk. 32,502.60 million respectively compared to Tk.
1,159,644.30 million and Tk. 28,494.60 million respectively
UvKv Ges 2,849.46 †KvwU UvKv| ê‡`wkK †iwgU¨vÝmn †gvU
in 2017. The total amount of foreign exchange transactions
ê‡`wkK †jb‡`‡bi cwigvY 2018 mv‡j ùvwo‡q‡Q 43,371.69 handling including foreign remittance of the Bank for the
†KvwU UvKv| 2017 mv‡j Gi cwigvb wQj 1,31,773.97 †KvwU year 2018 stood at Tk. 433,716.90 million which was Tk.
UvKv| 1,317,739.70million in 2017.

2018 I 2017 mv‡ji AvšÍRv© wZK eëmv‡qi ZzjbvgyjK wPÎ Comparative Foreign Trade Position during
2018 and 2017 :
2018 2017
1159644.30
(Tk. in million)
Sl. Particulars 2018 2017 Change

(%)
1 Total Import 257020.00 1159644.30 (77.84)
257020
102781.10
92291.90
2 Total Export 32502.60 28494.60 14.07
32502.60
41413.20
37308.90
28494.60
Inward
3 Remittance 102781.10 92291.90 11.37
(including WES)
Outward
4 Remittance 41413.20 37308.90 (11.00)
(including WES)
Total Import Total Export Inward Remittance Outward
(including WES) Remittance Total 433716.90 1317739.70 (67.09)
(including WES)
Dividends and Stock Dividend
jf¨vsk †NvlYv
Like previous year, no dividend is declared by SBL for the
g~jaY NvUwZ I evsjv‡`k e¨vsK cÖ`Ë Ae¨vnwZ e¨ZxZ Retained year 2018 because of capital insufficiency and prevailing
Earnings w¯’wZ FYvZ¡K we‡ePbvq c~e©eZ©x eQ‡ii b¨vq G e¨vsK negative retained earning balance without considering the
KZ©„K 2018 mv‡ji Rb¨ †Kvb jf¨vsk †NvlYv Kiv nqwb| Bangladesh Bank forbearance.
Ad-e¨v‡jÝ kxU G·‡cvRvim Off- Balance Sheet Exposures

At the end of 2018, total outstanding amount of off-balance
2018 mvj †k‡l e¨vs‡Ki Off-Balance Sheet Exposures Gi
sheet exposures of the Bank stood at Tk. 1,097,371.82
cwigvY 2017 mv‡ji 1,14,817.80 †KvwU UvKv n‡Z mvgvb¨ n«vm million compared to Tk. 1,148,178.04 million for the year
†c‡q 1,09,737.18 †KvwU UvKvq ùvwo‡q‡Q| 2017.
Ad-e¨v‡jÝ kxU G·‡cvRvim Gi mvims‡ÿc wb¤œiƒct The summary of off-balance sheet exposures is shown below:
(Tk. in million)
(wgwjqb UvKvq)
Position as of
cwigvb Particulars
2018 2017
weeiY
2018 2017 Letter of guarantee 5883.42 3329.65
e¨vsK M¨vivw›U 5883.42 3329.65 Irrevocable letter of credit 1084431.85 1139460.11
AcwieZ©wbq FYcÎ 1084431.85 1139460.11 Bills for collection 7056.55 5388.28
wej di Kv‡jKkb 7056.55 5388.28 Other contingencies liabilities - -
Ab¨vb¨ KbwUb‡RwÝ `vq - - Total 1097371.82 1148178.04
†gvU 1097371.82 1148178.04
HR policies are designed to long-term career
`xN©‡gqv`x ‡ckvMZ `ÿZv Dbœq‡b gvbe m¤ú` cwiKíbv growth - unleashing the hidden potential
`xN©‡gqv`x wek¦vm I m¤úK©- G `ywU KvVv‡gv‡K wfwË K‡i e¨vswKs SBL’s HR policies, based on trust and relationship, are to look
after people who want to make a long-term career with the
‡ckvq †ckvMZ `ÿZv AR©‡bi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡U‡W Bank because trust and relationship are built over time. The
gvbe m¤ú` Dbœqb cwiKíbv MÖnY Kiv n‡q‡Q| e¨vs‡Ki 47 eQ‡ii corporate culture at SBL over last 45 years is such that the
†ckvMZ cwi‡ek Kg©xevwnbxi AšÍwb©wnZ êwkó¨ cÖKv‡ki h‡_ó members and the staff have ample opportunities to take
initiatives and responsibilities to unleash their hidden potential
my‡hvM m„wó K‡i‡Q hvi gva¨‡g Zviv D‡`¨vMx n‡q Ges `vwqZ¡
to maximize benefits for themselves and for the society. The
wb‡q wb‡R‡ì I mgv‡Ri DbœwZi Rb¨ KvR Ki‡Z cv‡i| e¨vsK challenge is to maintain a business like, committed corporate
g¨v‡bR‡g›U Ges Kg©xevwnbx h_vh_fv‡e `vwqZ¡ cvj‡bi ga¨ culture that matches SBL’s mission. Achieving results and
w`‡q djvdj AR©‡bi j‡ÿ¨ GKm‡½ cvi¯úwiK `vwqZ¡ mnKv‡i taking responsibility are important components of the
culture we pursue, one in which management and staff
Kg©m¤úv`b K‡i _v‡K| e¨vs‡Ki cl©` bvix cyiæl wbwe©‡k‡l work together and are mutually accountable. Ensuring equal
Kg©`ÿZv I gvbe m¤ú` Dbœq‡bi j‡ÿ¨ †ek wKQz cÖkvmwbK opportunities irrespective of gender, the Board of Directors
bxwZ MÖnY K‡i‡Qb| Zvi g‡a¨ D‡jøL‡hvM¨ n‡jv: ms‡kvwaZ of the Bank has already adopted a number of administrative
AM©v‡bvMÖvg, bZzb mvwf©m iæj, ‡hvM¨Zvi wfwË‡Z c‡`vbœwZ, ¯^”Q policies focusing on improvement of skills and performance
of human resources. Notable among them includes:
wb‡qvM I e`jx cÖwµqv, Kg©KZv©-Kg©Pvix‡ì Kj¨vY I `ÿZv revised organogram, new service rules, performance based
AR©‡b ch©vß cÖwkÿY myweav BZ¨vw`| eZ©gv‡b †mvbvjx e¨vs‡Ki promotion, transparent posting and transfer, employee’s
†gvU Rbe‡ji cwigvY 17,271 Rb| Gi g‡a¨ Kg©KZ©v I Kg©Pvixi welfare, training activities and skill development. Currently,
msL¨v h_vµ‡g 14,671 Rb I 2,600 Rb| 2018 mv‡j e¨vsK SBL is having manpower strength of 17,271 of which 14,671
are officers and 2,600 are staff. In 2018, the Bank has
Zvi gvbe m¤ú`‡K Drcv`bgyLx wn‡m‡e M‡o †Zvjvi Rb¨ 6.53 invested Tk. 65.32 million to turn its human resources into a
†KvwU UvKv wewb‡qvM K‡i‡Q| productive workforce.
90
DIRECTORS’ REPORT
evsjv‡`k e¨vs‡Ki mv‡_ ¯^vÿwiZ MOU Gi wb‡`©kbv I Status of Memorandum of Understanding

djvd‡ji me©‡kl cwiw¯’wZ (MOU) with Bangladesh Bank
With Bangladesh Bank, SBL signed A Memorandum of
weMZ 2013 mv‡ji 03 b‡f¤î evsjv‡`k e¨vs‡Ki mv‡_ †mvbvjx Understanding (MOU) on 3 November, 2013 containing
e¨vsK wjwg‡UW Gi AwW‡UW e¨v‡jÝkxU h_vmg‡q Dc¯’vcb, some conditions for compliance such as submission of
FY I AwMÖ‡gi cÖe„w× wbw`©ó gvÎvq mxgve×KiY, cwiPvjb e¨q audited balance sheet, limiting growth of loans and advances,
n«vmKiY, †kÖYxweb¨vwmZ F‡Yi wecix‡Z jÿ¨ †gvZv‡eK Av`vq, minimizing operating expenses, achievement of recovery
FY I AwMÖ‡gi ch©vß gwbUwis wbwðZKiY, wi¯‹ g¨v‡bR‡g‡›Ui target against classified loans, ensuring proper monitoring
of loans and advances, improvement of risk management,
Dbœqb, kxl© 20 FY †Ljvwc †_‡K Av`vq Ges Ab¨vb¨ cÖfve m¤^wjZ recovery of loans from top 20 loan defaulters and others
GKwU Memorandum of Understanding (MOU) ¯^vÿwiZ nq| leverages.
e¨vs‡Ki AwW‡UW e¨v‡jÝ kxU wba©vwiZ mg‡qi g‡a¨B evsjv‡`k The audited Balance Sheet of 2016 was submitted to
e¨vs‡K Dc¯’vcb Kiv n‡q‡Q| FY I AwMÖ‡gi cÖe„w× Ges Bangladesh Bank within the deadline. The annual growth of
cwiPvjb e¨‡qi e„w× MOU G D‡jøwLZ mxgvi g‡a¨B mxgve× loans and advances and increase in operating expenses were
within the limit of the memorandum. The recovery target
wQj| ‡kÖwYK…Z FY n‡Z Av`v‡qi cwigvY wba©vwiZ 7,716.82
from classified loans in 2018 was set at Tk. 77,168.20 million
†KvwU UvKvi ¯’‡j bM` Av`vq n‡q‡Q 1,008.45 †KvwU UvKv Ges but total cash recovery was Tk. 10,084.50 million and other
bM` e¨ZxZ Av`vq n‡q‡Q 2,667.27 †KvwU UvKv| than cash was Tk. 26,672.70 million.
GQvov MOU G D‡jøwLZ kZ©vbyhvqx †µwWU wi¯‹ g¨v‡bR‡g›U According to the terms and conditions of MOU, Credit
kw³kvjxKi‡Yi j‡ÿ¨ †µwWU cwjwm, †µwWU wi¯‹ g¨v‡bR‡g›U Policy, Credit Risk Management Policy and Loan Review
cwjwm Ges †jvb wiwfD cwjwm ch©v‡jvPbvc~e©K ms‡kvab K‡i Policy have been revised to improve credit risk management
and the revised policy has been submitted to Bangladesh
Ges ms‡kvwaZ cwjwm evsjv‡`k e¨vs‡K `vwLj Kiv n‡q‡Q Ges Bank. Actions set out in the policy are being implemented
Z`vbyhvqx Kvh©µg cwiPvjbv Kiv n‡”Q| ZvQvov, Ab¨vb¨ †Kvi accordingly. Besides, effective steps have also been taken
wi¯‹ Gi DbœwZK‡í Kvh©Ki eë¯’v MÖnY Kiv n‡”Q| to update management of other core risks.
evwl©K Kg©m¤úv`b Pzw³ Annual Performance Agreement –APA

ivóª gvwjKvbvaxb e¨vsK¸‡jvi Performance m‡šÍvlRbK ch©v‡q A performance contract was introduced in 2015 by the
DbœxZKi‡Yi gva¨‡g iƒcKí 2021 Gi h_vh_ ev¯Íevqb Gi Financial Institution Division of the Ministry of Finance of
j‡ÿ¨ MYcÖRvZš¿x evsjv‡`k miKvi Gi A_© gš¿Yvj‡qi Avw_©K the People’s Republic of Bangladesh to achieve “Vision
2021” through Improving the performance of the state
cÖwZôvb wefvM 2015 mvj n‡Z ivóª gvwjKvbvaxb e¨vsK¸‡jvi
owned commercial banks of Bangladesh at a satisfactory
mv‡_ Performance Contract cÖeZ©b K‡i| Ryb, 2016 ch©šÍ
level. The performance contract was named as ÒKey
Performance Contract wU “Key Performance Indicators
Performance Indicators (KPIs)” till June 2016. In 2016
(KPIs)” bv‡g AwfwnZ wQj| cieZ©x‡Z 2016 mv‡j A_© gš¿Yvjq Finance Ministry introduced financial year based “Annual
“Key Performance Indicators (KPIs)” Pzw³wUi cwie‡Z© Performance Agreement (APA)” replacing the “Key
A_©eQi wfwËK evwl©K Kg©m¤úv`b Pzw³ (Annual Performance Performance Indicators (KPIs)”.
Agreement-APA) cÖeZ©b K‡i|
GiB avivevwnKZvq weMZ 18 Ryb, 2018 ZvwiL A_© gš¿Yvj‡qi Consequently, an “Annual Performance Agreement
Avw_©K cÖwZôvb wefv‡Mi mwPe g‡nv`‡qi mv‡_ ‡mvbvjx e¨vsK (APA)” was signed on dated 18th June, 2018 between the
wjwg‡UW Gi †Pqvig¨vb Ges wmBI GÛ g¨v‡bwRs wW‡i±i Secretary of Financial Institution Division and the Chairman
and CEO & Managing Director of Sonali Bank Limited for
g‡nv`qM‡Yi g‡a¨ 2018-19 (RyjvB, 18 n‡Z Ryb, 19) A_©
the Financial year 2018-2019.
eQiwfwËK evwl©K Kg©m¤úv`b Pzw³ (Annual Performance
Agreement -APA) ¯^vÿwiZ nq|
As per the direction of the agreement, Annual Performance
A_© gš¿Yvj‡qi wb‡`©kbv Abyhvqx ¯^vÿwiZ Pzw³i avivevwnKZvq Agreement (APA), 2018-2019 was signed between the CEO
GKB Zvwi‡L A_©vr 18 Ryb 2018 Zvwi‡L e¨vs‡Ki cÖavb & Managing Director and the Deputy Managing Directors
Kvh©vj‡qi m‡¤§jb K‡ÿ wmBI GÛ g¨v‡bwRs wW‡i±i g‡nv`‡qi and the General Managers of Different General Managers
mv‡_ †WcywU g¨v‡bwRs wW‡i±iM‡Yi Ges †WcywU g¨v‡bwRs Offices, held on the same date 18th June 2018 in the
wW‡i±iM‡Yi mv‡_ gvV ch©v‡qi Kvh©vjqmg~‡ni †Rbv‡ij conference room of the head office of Sonali Bank Limited.
g¨v‡bRviM‡Yi Ges gvV ch©v‡qi †Rbv‡ij g¨v‡bRviM‡Yi Continually, the General Managers signed the mentioned
mv‡_ ¯^ ¯^ AvIZvaxb wcÖwÝcvj Awdm Ges AvÂwjK Kvh©vjq/ agreement with the head of the Principal offices, corporate
brances and Regional offices. Heads did the same with the
kvLv cÖavb‡ì mv‡_ Annual Performance Agreement (APA)
branch Managers under their supervision.
2018-19 Pzw³ ¯^vÿwiZ nq|
Valuable directions of Board of Directors and close
e¨vs‡Ki cl©` mfvq g~jëvb w`K wb‡`©kbv Ges eë¯’vcbv monitoring of management authority are boosting
KZ©„c‡ÿi wbweo Z`viwK‡Z APA 2018-19 Gi mKj Kg©m¤úv`b up the urge of all level officers to achieve predefined

m~P‡Ki wecix‡Z jÿ¨gvÎvmg~n AR©‡bi wbwgË e¨vs‡Ki mKj target against all Key Performance Indicators of APA
2018-19.
ch©v‡qi Kg©KZ©ve„›` m‡Pó i‡q‡Q|
A_© gš¿Yvj‡qi wb‡`©kbv Abyhvqx Kg©m¤úv`b m~PK mg~‡ni Achievement evaluation reports against the targets in
jÿ¨gvÎvi wecix‡Z AR©b g~j¨vqb cÖwZ‡e`b cÖwZ ‰ÎgvwmK, Aa©- various criteria are being submitted quarterly, semi annually
evwl©K Ges evwl©K wfwË‡Z A_© gš¿Yvj‡q ‡cÖwiZ n‡”Q| and annually to the Ministry of Finance as per direction.
RvZxq ‡KvlvMv‡i Ae`vb Contribution to National Exchequer

†mvbvjx e¨vsK wjwg‡UW miKv‡ii ivR¯^ Avni‡Y ¸iæZ¡c~Y© f~wgKv Sonali Bank Limited plays an important role in assisting
cvjb K‡i _v‡K| e¨vsK Zvi wbR¯^ Av‡qi Dci AvqKi I f¨vU the Government in revenue collection. The Bank pays tax
cwi‡kva K‡i _v‡K| ZvQvov e¨vsK Zvi MÖvnK, mieivnKvix‡ì and value added tax (VAT) on its own income. Besides,
wbKU n‡Z AvnwiZ AvqKi, f¨vU I Dr‡m Ki miKvwi †KvlvMv‡i SBL collects income tax, VAT, tax at source from clients
Rgv K‡i _v‡K| 2018 mv‡j e¨vsK AwMÖg Ki, Dr‡m Ki Ges and suppliers and deposits the same to the national
f¨vU eve` †gvU 985.16 †KvwU UvKv miKvwi †KvlvMv‡i Rgv exchequer. During 2018, the Bank deposited a total of Tk.
K‡i‡Q| c~e©eZ©x eQ‡i Gi cwigvY wQj 1,075.62 †KvwU UvKv| 9,851.60 million as advance tax, tax at source and VAT to
D‡jøL¨, RvZxq ivR¯^ ‡evW© KZ©„K 2015-16 Ki eQ‡i e¨vswKs the national exchequer which was Tk. 10,756.20 million in
†m±‡i kxl© 5 (cuvP) cÖwZôv‡bi GKwU nIqvq 2016 mv‡j †mvbvjx 2017. In 2016, Sonali Bank Limited has been awarded one
e¨vsK wjwg‡UW Òm‡e©v”P AvqKi cÖ`vbKvixÓ cÖwZôvb cyi¯‹vi of the “Highest Tax Payers” in banking sector by National
AR©b K‡i| Board of Revenue (NBR) for the assessment year 2015-16.
(Tk. in million)
2018 2017
No. Particulars 2018 2017

VAT on various expenses
Source tax on L/C
1 80.50 47.10
commission
Tax paid on car
Source tax on buying
2 6.90 5.40
house commission
Advance tax paid
3 VAT on Commission 647.30 628.90

Employees tax
VAT on Rent on bank
4 49.30 47.70
building
Tax deducted at source
Source Tax on Interest paid
5 4801.40 5321.60
by bank
Excise duty
Source Tax on Cash
6 33.20 32.50
subsidy on export
Source Tax on other than
Neat & Garments Export
Source Tax on Neat &
7 137.00 156.10
Garments Export
Source Tax on Neat
& Garments Export
Source Tax on other than
8 106.70 100.00
Neat & Garments Export
Source Tax on Cash
subsidy on export
9 Excise duty 1379.70 1482.60
Source Tax on Interest
paid by bank
10 Tax deducted at source 1694.50 2229.60
VAT on Rent on bank
building & other expenses
11 Employees tax 104.90 91.50
VAT on Commission
12 Advance tax paid 700.00 500.00
Source tax on buying
house commission 13 Tax paid on car 1.30 -
Source tax on L/C commission 14 VAT on Various Expenses 108.90 113.20
0% 20% 40% 60% 80% 100% Total 9851.60 10756.20
cÖe„w×i cye©vfvm Growth Prospects

The banking industry in Bangladesh has been experiencing
evsjv‡`‡ki e¨vswKs Lv‡Z eZ©gv‡b ‡`kx-we‡`kx e¨vsK¸‡jvi 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,
e¨vswKs Lv‡Z A‡Uv‡gk‡bi we¯Í…wZi gva¨‡g K‡c©v‡iU, wi‡UBj, retail, SME trade and other customers are met through
GmGgB evwYR¨ I Ab¨vb¨ MÖvnK‡ì A_©vqb I e¨vswKs myweav diversification of products and extending automated
92
DIRECTORS’ REPORT
cÖ`vb Kiv n‡”Q| 2018 mv‡j †mvbvjx e¨vsK wjwg‡UW wW‡cvwRU banking services. The business trend up to 31 December,
2018 shows marked improvement in the areas of deposit
AvniY, FY I AMÖxg, ewnt†iwgU¨vÝ cÖevn, wewb‡qvM BZ¨vw` mobilization, loans and advances, outward remittance and
†ÿ‡Î D‡jøL‡hvM¨ AMÖMwZ mvab K‡i‡Q| mvgwMÖK P¨v‡jÄ investment as well. To face the overall challenge, SBL is
†gvKv‡ejvi j‡ÿ¨ e¨vsK Zvi †Wwjfvix P¨v‡bj, †UK‡bvjwR, strengthening its delivery channel, adoption of technology,
eëmv Dbœqb, †cÖvWv‡±i eûgyLxKiY, gvbe m¤ú` Dbœqb, kvLv business promotion, product diversification, human
resource development, optimum use of branch network
†bUIqv‡K©i m‡e©v”P eënvi Ges cÖvwZôvwbK mvgvwRK `vqe×Zvi and Corporate Social Responsibility (CSR). To meet the
g‡Zv welqMy‡jv‡K kw³kvjx Ki‡Q| MÖvnK‡ì wbivc` I DbœZ demand of our clients, SBL has taken membership of
GwUGg mvwf©m cÖ`v‡bi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW VISA Gi VISA and introduced VISA card to ensure safe and modern
m`m¨c` MÖnY K‡i wfmv KvW© mvwf©m Pvjy K‡i‡Q| G †ÿ‡Î cÖavb ATM related services. Help Desk (Phone No. 9560366,
Kvh©vj‡qi KvW© wWwfkb wbiwew”Qbœ MÖvnK †mev cÖ`v‡b wb‡ew`Z 01755583687) at Card Division, Head Office is dedicated
to ensure customer service.
(†ní †W¯‹- †dvb bs-9560366, †gvevBj bs-01755583687)|
New Challanges and Coping Strategies
bZzb P¨v‡jÄmg~n Ges Zv †gvKv‡ejvq Kg©‡KŠkj
In the backdrop of fast changing global economic
wek^ A_©bxwZ‡Z `ªæZ cwieZ©‡bi Kvi‡Y e¨vsK I Avw_©K cÖwZôvb scenario, the banking sector as a whole is facing emerging
new challanges. These include among others, meeting the
wbZ¨ bZzb P¨v‡j‡Äi m¤§yLxb n‡”Q| Gi g‡a¨ i‡q‡Q MÖvnK I
demands of clients and stakeholders at large, innovation
†÷K‡nvìvi‡ì Pvwn`v †gUv‡bv, bZzb e¨vswKs †cÖvWv± D™¢veb, of new banking products, channelling financial resources
Avw_©K m¤ú`‡K Drcv`bkxj Lv‡Z ¯’vbvšÍiKiY, gvwbjÛvwis to productive sectors, working out new machanisms for
Kvh©µg cÖwZ‡iv‡a Kg©cš’v D™¢veb, `yb©xwZ cÖwZ‡iva Ges carrying out anti-money laundering activities, penetration
of information technology to combat corruption
†mevi gv‡bvbœq‡b Z_¨ cÖhyw³i cÖPjb, cÖwZwbqZ AvMZ SzuwK
and improve service delivery, designing appropriate
jvN‡e †KŠkj cÖYqb Ges MÖvnK‡ì Pvwn`v iÿvq myôz cwi‡ek strategies to mitigate emerging risks and ensuring control
wbwðZKiY D‡jøL‡hvM¨| environment to protect the interest of clients.
bZzb P¨v‡jÄ †gvKv‡ejvq †mvbvjx e¨vsK wjwg‡UW K…wl, To cope with these new and emerging challanges, Sonali
Bank Limited has laid emphasis on agriculture, agro-
K…wlwfwËK wkí cÖKí, Avg`vwb cwic~iK cÖKí, GmGgB wfwËK industries, import substitution projects, SME-based energy
Ges Kg©ms¯’vb m„wóKvix cÖKímgy‡n we‡klfv‡e bRi w`‡”Q| projects and other employment generating activities. It
e¨vsK mgv‡Ri wewfbœ †kÖYxi MÖvnK‡ì Rb¨ bZzb bZzb †cÖvWv± has launched new products for different sections of the
community. To sustain its position in the competitive
D™¢veb K‡i‡Q| cÖwZ‡hvwMZvgyjK evRv‡i wb‡R‡ì Ae¯’vb a‡i market, all of 1213 branches of the Bank has been taken
ivLvi j‡ÿ¨ MÖvnK‡mevi gv‡bvbœq‡b B‡Zvg‡a¨ e¨vs‡Ki 1213wU to automation with CBS installation successfully to
kvLvi me¸‡jv‡KB wmweGm Gi AvIZvq Avbv n‡q‡Q| GQvov provide improved customer services. Besides, a web-
ê‡`wkK †iwgU¨vÝ Avni‡Yi j‡ÿ¨ e¨vs‡Ki wbR¯^ D™¢vweZ based software developed in-house called “Remittance
Management System Plus” (RMSPlus) has been installed at
Ò†iwgU¨vÝ g¨v‡bR‡g›U wm‡÷g cøvm (AviGgGm cøvm)ÕÕ 1213 1213 branches for receiving foreign remittances. Inland and
wU kvLv‡ZB Bb÷j Kiv n‡q‡Q| Af¨šÍixY I ‰e‡`wkK †iwgU¨vÝ foreign remittance transactions are now carried out using
GB wm‡÷‡gi gva¨‡g cwiPvwjZ n‡”Q| Kg©KZ©v-Kg©Pvix‡ì this system. The capacity building of employees has been
identified as the major reform agenda. The Bank has been
Kg©`ÿZv e„w× e¨vs‡Ki wPwýZ gyL¨ D‡`¨vM| G j‡ÿ¨ Kg©xevwnbxi continuing its efforts to improve the efficiency of employees
`ÿZv I Kg©ÿgZv e„w×i Rb¨ e¨vsK wbqZ cÖ‡Póv Pvwj‡q hv‡”Q| and effectiveness of service delivery mechanism.
Maintaining adequate capital is very important in banking

e¨vswKs eëmvq g~jab ch©vßZv AZ¨šÍ MyiæZ¡c~Y©| eZ©gv‡b e¨vs‡Ki business. Currently there is a considerable surplus of
g~jab wKQzUv m‡šÍvlRbK ch©v‡q i‡q‡Q| g~jab m‡šÍvlRbK capital in the Bank. To maintain the surplus capital, bank
ch©v‡q ivLvi j‡ÿ¨ e¨vsK †kÖwYK…Z F‡Yi nvi GK As‡K bvwg‡q has undertaken a number of steps like bringing down
Avbv, Avq evov‡bv, Ae‡jvcbK…Z FY †_‡K Av`vq, bb-dv‡ÛW the percentage of classified loans to a single digit, raising
income to a satisfactory level, recovery of written-off loans,
eëmv n‡Z Avq e„w×mn wewfbœ Kvh©µg nv‡Z wb‡q‡Q| wbqZ SzuwK increasing income from non funded business and so on.
†gvKv‡ejvq e¨vsK MvBWjvBb cÖ`vb K‡i‡Q Ges DaŸ©Zb I ga¨g To mitigate the emerging risks, the Bank has introduced
ch©v‡qi wbe©vnx‡ì cÖwkÿY cÖ`vb Ki‡Q| guidelines for the purpose and has been providing training
to senior and mid-level executives.
AwWUi wb‡qvM Appointment of Auditors
Gm Gd Avn‡g` GÛ †Kvs Ges nvIjv`vi BDbym GÛ †Kvs, PvUvW© S F Ahmed & Co. and Howladar Yunus & Co., Chartered
GKvD›U¨v›Um dvg©Øq e¨vs‡Ki 2018 mv‡ji wbixÿv Kvh©µg m¤úbœ Accountants carried out the audit of the Bank in 2018. Two
K‡i‡Q| e¨vs‡Ki Avmbœ 12Zg evwl©K mvaviY mfvq 2019 mv‡ji audit firms will be appointed for 2019 in the upcoming
ewnt wbixÿv Kvh©µg m¤ú‡bœi Rb¨ `yÕwU AwWU dvg© wb‡qvM Kiv n‡e| 12th Annual General Meeting.
K…ZÁZv ¯^xKvi Acknowledgements

e¨vs‡Ki cwiPvjbv cl©` Gi m`m¨MY e¨vs‡Ki AvgvbZKvix, The members of the Board of Directors of the Bank would
FYMÖnxZv, c„ô‡cvlK, ïfvbya¨vqx, wbixÿK I Ab¨vb¨ ¯^v_© like to place on record their gratitude to the depositors,

mswkøó‡ì wbKU Zuv‡ì Ae¨vnZ mg_©b I mn‡hvwMZvi Rb¨ customers, patrons, well-wishers, auditors and other
stakeholders for their continued support and cooperation,
K…ZÁZv Ávcb Ki‡Q| Zuv‡ì µgvMZ mg_©b, mn‡hvwMZv
without which the Bank would not have been able to make
I w`K wb‡`©kbvq e¨vsK G Ae¯’v‡b †cuŠQv‡Z ‡c‡i‡Q| Avgiv progress. We are also indebted to Finance Division and the
evsjv‡`k miKv‡ii we‡klZt A_© gš¿Yvj‡qi A_© wefvM I Financial Institutions Division of the Ministry of Finance,
Avw_©K cÖwZôvb wefvM, evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR Bangladesh Bank, Bangladesh Securities and Exchange
GÛ G·‡PÄ Kwgkb, Awdm Ae `¨v ‡iwR÷ªvi Ae R‡q›U ÷K Commission, Office of the Registrar of Joint Stock
†Kv¤úvwbR GÛ dvg©m Ges mswkøó miKvwi ms¯’vi wbKU Zv‡ì Companies and Firms and other relevant government
agencies for their cooperation and guidance.
Ae¨vnZ mg_©b I civgk© `v‡bi Rb¨ K…ZÁZv Rvbvw”Q|
e¨vs‡Ki mvwe©K DbœwZK‡í wmBI GÛ g¨v‡bwRs wW‡i±i Gi The unrelenting efforts put in by senior management team
and the members of staff under the leadership of the CEO
†bZ…‡Z¡ wmwbqi g¨v‡bR‡g›Umn e¨vs‡Ki mKj ¯Í‡ii Kg©KZ©v- & Managing Director to bring about overall improvement
Kg©PvixM‡Yi AvšÍwiK wbijm cÖ‡Póv we‡klfv‡e cÖksmvi `vex in the Bank’s business performance deserve special
iv‡L| appreciation.
cwiPvjbv cl©` Gi c‡ÿ On behalf of the Board of Directors
(†gvt Avkivdzj gKeyj) (Md. Ashraful Moqbul)

†Pqvig¨vb Chairman
94
PR GRESS
THR UGH
C MMUNICATION
96
CORPORATE GOVERNANCE

CORPORATE
GOVERNANCE
Sonali Bank Limited (SBL) 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 Licence on 05 June, 2007 under
the Bank Company Act, 1991 (amended in 2013). 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 CEO

I.a. Formation of Board of Directors:
The newly amended Section 15 of the Bank Company Act, 1991 (amended in 2013) 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.
I.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 2013), Bangladesh
Bank and the Articles of Association of the Bank and Bangladesh Securities and Exchange Commission notification No.
SEC/ CMRRCD/2006- 158/134/Admin/44 of 07 August 2012. All Directors of SBL 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. Md. Ashraful Moqbul Chairman
2 Mr. Md. Fazlul Haque Director
3 Mr. Md. Mahboob Hossain (Passed away on 04.01.2019) Director
4 Mr. Md. Shaheb Ali Mridha (FF) (Directorship ceased on 03.05.2018) Director
5 Mr. Kazi Tariqul Islam (Directorship ceased on 03.05.2018) Director
6 Mrs. Sabera Aktari Jamal (Directorship ceased on 13.01.2019) Director
7 Mr. Afzal Hossain (Directorship ceased on 13.01.2019) Director
8 Mr. Muhammed Asadullah (Directorship ceased on 09.05.2019) Director
9 Mr. A. K. M. Kamrul Islam FCA, FCS Director
10 Dr. Md. Nurul Alam Talukder Director
11 Mr. Ishtiaque Ahmed Chowdhury (Joined on 19-09-2018) Director
12 Dr. Daulatunnaher Khanam (Joined on 13-01-2019) Director
13 Mr. Md. Mofazzal Husain (Joined on 13-05-2019) Director
14 Mr. Md. Obayed Ullah Al Masud CEO & Managing Director
98
I. a.2. Appointment of Directors:

Under section 15(4) of the Bank Company Act, 1991 (amended in 2013), 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.
The members of the Board of Directors of SBL are appointed as per the provision of the Companies Act-1994, the Bank
Company Act-1991 (Amended in 2013) and Memorandum and Articles of Association of the Bank. SBL 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 SBL 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. Information 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 2013) 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.
I.b.1. Responsibilities and authorities of the CEO and Managing Director

The CEO & Managing Director of the Bank discharges the responsibilities and affects the authorities as follows:
1. 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.
2. The CEO & MD ensures compliance of the Bank Company Act, 1991 and other relevant laws and regulations in
discharging routine functions of the Bank.
3. 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 2013) and other relevant laws and
regulations.
4. The CEO & MD reports to Bangladesh Bank of any violation of the Bank Company Act, 1991 (amended in 2013) or of
other laws/regulations.
5. 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.
6. 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. Subhash Chandra Das FCMA, FCA, Chief Financial Officer, is a skiled banker with his ornamented enthusiasm and charismatic
Charecteristics. He obtained B.Com (Hons) with distinction and M.Com in Accounting from the University of Dhaka. He is
Fellow member of the Institute of Chartered Accountants of Bangladesh (ICAB) and the institute of Cost and Management
Accountants of Bangladesh (ICMAB). He is also a Diplomaed Associates of the Institute of Bankers of Bangladesh (DAIBB).
He has 19 years banking experience covering Bangladesh Bank, Asian Development Bank (ADB), World Bank (WB) Project
and Janata Bank Limited in his portfolio. Before joining Sonali Bank Limited, he was the General Manager & Chief Audit
Officer (CAO) of Janata Bank Limited. He has a supervising involvement in Foreign Exchange Management Issues, Foreign
Direct Investment (FDI) issues, Govt. Treasury Management, Capital Management, Risk Management, Budgetary Control,
Management Information, Social Safety Net Program, Fiscal related activities etc. He has significant role in establishing strong
corporate governance as well as strong control environment and robust compliance culture. He has been playing his role
appreciably in the business growth of the Bank.
He has received Letter of Appreciation from the Asian Development Bank (ADB) for his outstanding performance. In his
challenging and dynamic career, he has attended various seminars, symposiums and number of training courses in home and
abroad. He has travelled a number of countries including Canada, Germany, Thailand etc.
Mr. Omar F. Khandaker, 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. Prior to join Sonali Bank Limited, he worked for the
Eastern Bank Limited (EBL) as Head of IT; Securemoney Inc., Toronto, Canada as CTO; 3Pea International, Las Vegas, USA as
CIO & CISO; Wow Technologies, Las Vegas, USA as CTO & CISO; British American Tobacco, Bangladesh as Technology IT
Manager and Islamic University of Technology ( IUT), Board Bazar, Dhaka as Faculty Member.
He is a Certified Information System Security Professional (CISSP), Certified Information System Auditor (CISA), Certified
Information Security Manager (CISM) and Certified Project Management Professional (PMP). He has participated numerous
training courses related with the Cyber security, IT Audit, IT Operations & Project Management locally and internationally
as a trainee and trainer. He has completed his BS in Electrical and Electronic Engineering and MS in Computer Science &
Engineering.
He has more than 28 years experience in IT Operations, IT Risk Management, Information Security and IT Project Management.
He has publications in IT Governance and IT Risk Management. He was also selected for the Empire WHO’S WHO, USA
for outstanding professional achievement and Strathmore’s WHO’S WHO Worldwide, USA for recognition of leadership and
professional accomplishment.
100
He also visited United States of America (USA), Canada, United Kingdom (UK), Germany, Brazil, Russia, United Arab Emirates
(UAE), Saudi Arabia, Malaysia, Singapore, Philippines, Vietnam, Nepal, India and Fiji Island.
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.
I.e. Evaluation of the functioning of CEO and Managing Director by the Board
The Board of SBL 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 2018

58 (Fifty Eight) Board meetings of the SBL were held in 2018. A detailed statement showing number of Board meetings held
and status of participation of the Directors is given below:
Status Meeting Honourium

SI. Name Attended Remarks
with the Bank Held Received *
1 Mr. Md. Ashraful Moqbul Chairman 58 58 4,64,000 -
2 Mr. Md. Fazlul Hoque Director 58 55 4,40,000 -
3 Mr. Md. Mahboob Hossain Director 58 57 4,56,000 -
Directorship ceased on
4 Mr. Md. Shaheb Ali Mridha Director 58 20 1,60,000
03.05.2018
5 Mr. Kazi Tariqul Islam Director 58 12 96,000
03.05.2018
6 Mrs. Sabera Aktari Jamal Director 58 58 4,64,000 -
7 Mr. Afzal Hossain Director 58 55 4,40,000 -
8 Mr. Muhammed Asadullah Director 58 54 4,32,000 -
9 Mr. A K M Kamrul Islam, FCA FCS Director 58 52 4,16,000 -
10 Dr. Md. Nurul Alam Talukder Director 58 58 4,64,000 -
11 Mr. Ishtiaque Ahmed Chowdhury Director 58 13 1,04,000 Joined on 19-09-2018
12 Mr. Md. Obayed Ullah Al Masud CEO & MD 58 57 - -
*Tk 8000.00 per meeting
II. BOARD COMMITTEES

II.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
3 Mr. Kazi Tariqul Islam* Director Member
4 Mr. Afzal Hossain Director Member
6 Mr. Md. Obayed Ullah Al Masud CEO & Managing Director Member
* Directorship ceased on 03.05.2018.

II.a.1. Organizational structure:

1. Members of the committee are nominated by the Board of Directors from themselves;
2. The Executive Committee comprises of maximum 06 (six) members;
3. Members are appointed for a 03 (three)-year term of office;
4. Chairman of the Board of Directors is the Chairman of Executive Committee;
5. Company Secretary of the Bank is the Secretary of the Executive Committee.
II.a.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.
II.a.3. Roles and Responsibilities of the Executive Committee:

1. 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.
2. The Executive Committee can take all necessary decisions or can approve cases within power delegated by the Board
of Directors.
3. All decisions taken in the Executive Committee should be ratified in the next Board meeting.
ll.a.4. EC Meetings in 2018

i. The Executive Committee sits anytime as it may deem fit. 12 (Twelve) meetings of the Executive Committee were held
in 2018. A statement on Executive Committee is given below:
1 Mr. Md. Ashraful Moqbul Chairman 12 12 96,000 -
2 Mr. Md. Fazlul Haque Director 12 11 88,000 -
03.05.2018
4 Mr. Afzal Hossain Director 12 11 88,000 -
5 Dr. Md. Nurul Alam Talukder Director 12 12 96,000 -
6 Mr. Md. Obayed Ullah Al Masud CEO & MD 12 12 - -
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, SBL 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.
102
Audit Committee
02 Mr. Md. Mahboob Hossain* Director Member
03 Mr. Md. Shaheb Ali Mridha** (FF) Director Member
04 Mrs. Sabera Aktari Jamal Director Member
05 Mr. Muhammed Asadullah Director Member
* Passed away on 04.01.2019

** Directorship ceased on 03.05.2018.
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
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
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 2018. A statement on Audit Committee is given below:

1 Mr. A.K.M. Kamrul Islam FCA, FCS Director 10 10 80,000 -
Passed away on
2 Mr. Md. Mahboob Hossain* Director 10 10 80,000
04.01.2019
3 Mr. Md. Shaheb Ali Mridha (FF) Director 10 4 32,000
03.05.2018
4 Mrs. Sabera Aktari Jamal Director 10 10 80,000 -
5 Mr. Muhammed Asadullah Director 10 10 80,000 -
6 Mr. Ishtiaque Ahmed Chowdhury Director 10 2 16,000 -

(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

II.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 2013) and BRPD circular No. 11/2013, SBL has formed the Risk Management
Committee approved by the Board of Directors comprising 04 (four) members which are disclosed below:
Risk Management Committee

1 Mr. Muhammed Asadullah Director Chairman
2 Mr. Md. Mahboob Hossain* Director Member
3 Mr. Md. Shaheb Ali Mridha** Director Member
4 Mr. Kazi Tariqul Islam** Director Member
* Passed away on 04.01.2019
** Directorship ceased on 03.05.2018.
104
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
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
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 auditor submit respective evaluation report whenever required by the committee
II.b.4. Meetings of the Committee

1 Mr. Muhammed Asadullah Director 12 11 88,000 -
Passed away on
2 Mr. Md. Mahboob Hossain Director 12 6 48,000
04.01.2019
3 Mr. Md. Shaheb Ali Mridha(FF) Director 12 4 32,000
03.05.2018
03.05.2018
5 Mrs. Sabera Aktari Jamal Director 12 12 96,000 -
6 Mr. Afzal Hossain Director 12 11 88,000 -
7 Dr. Md. Nurul Alam Talukder Director 12 6 48,000 -
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 SBL 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.
III.b. Establishment of internal control and compliance

The Board of SBL is entrusted to establish suitable system of internal control and compliance. SBL 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 Limited 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), SBL has formulated the following new detailed
structure of ICC which will be in operation within the shortest possible time:
106
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 2018
covering the position of 31 December 2017. Major core risks areas likely credit risk, foreign exchange risk, ICC risk etc. have
been addressed.
III.f. Statutory audit

The Board appointed M/S. S. F. Ahmed & Co. Chartered Accountants, and Howlader Yunus & Co., Chartered Accountants,
to carry on statutory audit of the Bank for the financial year 2018. 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 2018.
To avoid the conflict of interest, SBL 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
Departmental
MANCOM
Risk Management
Head of ICC
Head of Control Head of Audit Head of Compliance
Control &
Audit & Audit & Foreign
Monitoring Compliance Compliance
Inspection Inspection Exchange Audit
Division (CMD) Division-Internal Division-External
Division (AID-1) Division (AID-2) & Inspection
Audit & Inspection up to Compliance up to Bangladesh Bank

All All Ad
corporate Branch Audit Compliance
Corporate Level Branch Branches branches &
(Below foreign
Branch Commercial
Div. Office, Dept. Corporate branches/ Compliance of
Audit Com.
Department Controlling Offices level) sub. foreign exchange
Division & Audit & Foreign
(GMo, Po, Ro) branches &
Controlling Statutory
Sinsidiaries Audit Com.
Offices Audit Cell-Local
(GMO, Po, Ro) Office/Corporate Compliance of the Others External
rest of the
branch and others Audit Com.

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, Shiraz Khan
Basak & Co, Chartered Accountants, has been appointed for the year 2018 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
SBL’s risk management strategy is based on a clear understanding of various risk, discipline risk assessments, measurement
procedures and continuous monitoring. SBL 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
IV.a.2. Method of Risk Mitigation:

SBL 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.
IV. MORAL ISSUES, ETHICAL STANDARDS AND COMPLIANCE

SBL 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. SBL 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.
V. PROCESS OF REMUNERATION
Separate committee of the Board on remuneration has not been formed in SBL 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, SBL 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 SBL 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, SBL 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.
108
VII.a. Human Resources Accounting

The strategy and methodology to determine the value of human resources is called Human Resources Accounting. SBL
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

SBL 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. SBL 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, SBL also continuously maintains a large means to communicate and engage with its
stakeholders. With the diverse nature of stakeholders, SBL always strategically defines its key stakeholder audience with a
view to ensuring pragmatism in engagement and reporting. SBL 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, SBL 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 SBL 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 Limited, many committees have been formed with senior executives to carry on the banking operation more
precisely and efficiently. These are 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 Asset Liability Management Committee (ALCO)
2 Management Committee (MANCOM)
3 Credit Committee
4 Business Advisory Committee
5 Disciplinary Action Committee
6 Interest Waiver Committee
7 Research and Planning Committee
X.b. Regulatory Compliance

SBL 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

XII. Xl.a. Credit Rating
As per Bangladesh Bank’s mandatory requirement vide BRPD Circular No.06 of 5 July, 2006, the Credit Rating of SBL
was done by the Emerging Credit Rating Limited on the Audited Balance Sheet of 31 December, 2017 and other relevant
information. The rating agency awarded the ratings as stated here.
Surveillance Rating 2017-18 Long Term Short Term
As Government Supported Bank AAA ST-1
As Private Commercial Bank A- ST-2
Outlook Stable
XIII. ACCOUNTABILITY OF FINANCIAL REPORTING

The Board of SBL 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.
XIV. VISION, MISSION AND STRATEGY

The Vision, Mission and Strategic Objectives of SBL are approved by the Board which are disclosed in the earlier part of the
Annual Report, Bank’s website and other publications.
XV. DECLARETION 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.
XVI. DIRECTORS’ REPORT TO SHAREHOLDERS

In compliance with section 1.5 of Bangladesh Securities and Exchange Commission Notification No.SEC/CMRRCD/ 2006-
158/134/Admin/44 of 07 August 2012 and section 184 of the Companies Act, 1994 (Act No. Ill of 1994), the Directors report
has been prepared incorporating all the required statements.
110

PR GRESS
THR UGH
FAST CITY
112

[Certificate as per condition No. 1 (5) (xxvii)]
Report to the shareholders

Of
Sonali Bank Limited
ON COMPLIANCE ON THE CORPORATE GOVERNANCE CODE

(AS PER REQUIRED UNDER THE CORPORATE GOVERNANCE GUIDELINES)
We have examined the compliance status to the Corporate Governance Code by Sonali Bank Limited for the year ended 31
December 2018. 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 examinations was limited
to the procedures and implementations, thereof as adopted by the Management in ensuring compliance to the conditions
of the Corporate Government Code.
This is the scrutiny and verification and an independent audit on compliance of the Corporate Governance Code as well
as the provisions of relevant Bangladesh Secretarial Standard (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.
Shiraz Khan Basak & Co

Chartered Accountants.
Dhaka, Bangladesh Bhudhar Chakraborty FCA
Dated, 12 June 2019 Partner
114
COMPLIANCE STATUS OF BANGLADESH SECURITIES

AND EXCHANGE COMMISSION GUIDELINES
for Corporate Governance for the year ended 31 December 2018.
Status of compliance with the conditions imposed by the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80 dated 03 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969:
Compliance Status
Condition Remarks
Title Not
No. Complied (If any)
Complied
Board of Directors
Board’s size: Board members shall not be less than 5 (five) Stated in
1.1 √
and more than 20 (twenty) Annual Report
1.2 Independent Director
At least one fifth (1/5) of the total number of Directors in
the company’s Board shall be independent Directors.
1.2.(i) √
Independent Director For the purpose of this clause
“Independent Director” means a Director:
Independent Directors do not hold any share or holds less
1.2 (ii) a. √
All Board Members are nominated by the Government,

than one percent (1%) shares of the total paid-up capital.
Independent Directors are not connected with the
They are treated as Independent Director.

1.2 (ii) b. company’s Sponsor or Director or shareholder who holds √
holding 01 share face value TK. 100.

one percent (1%) or more shares.
Independent Directors do not have any other relationship,
whether
1.2 (ii) c. √
pecuniary or otherwise, with the company or its subsidiary/
associated companies;
Independent Directors are not members, Directors or
1.2 (ii) d. √
officers of any stock exchange;
Independent Directors are not Shareholder, Directors
1.2 (ii) e. or Officers of any member of stock exchange or an √
intermediary of the capital market;
Independent Directors are not the partners or
1.2 (ii) f. executives during the preceding 3 (three) years of the √
concerned company’s statutory audit firm;
They are not the Independent Directors in more than 3
1.2 (ii) g. √
(three) listed companies;
They have not been convicted by a court of competent
1.2 (ii) h. jurisdiction as a defaulter in payment of any loan to a bank √
or a Non-Bank Financial Institution (NBFI);
They have not been convicted for a criminal offence
1.2 (ii) i. √
involving moral turpitude.
Approved
The independent Director(s) shall be appointed by the
by the
1.2 (iii) Board of Directors and approved by the shareholders in √
Government
the Annual General Meeting (AGM).
order
The post of independent Director(s) cannot remain vacant
1.2 (iv) √ -
for more than 90 (ninety) days.
The Board shall lay down a code of conduct of all Board
1.2 (v) members and annual compliance of the code to be √ -
recorded.
The Board shall lay down a code of conduct of all Board
1.2 (vi) members and annual compliance of the code to be √ -
recorded.

Compliance Status
Condition Remarks
Title Not
Complied
1.3 Qualification of Independent Director
Independent Director shall be knowledgeable individual
1.3 (i) √
with integrity Stated in their
The Independent Director must have at least 12 (twelve) CV
1.3 (ii) √
years of corporate management/professional experiences.
In special cases the above qualifications may be relaxed
1.3 (iii) No such case
subject to approval of the Commission.
1.4 Chairman of the Board and Chief Executive Officer
Separate Chairman and CEO and their clearly defined roles
1.4 (i) √ -
and responsibilities.
1.5 Directors’ Report to Shareholders
Industry outlook and possible future developments in the Stated in
1.5 (i) √
industry. Annual Report
Stated in
1.5 (ii) Segment-wise or product-wise performance. √
Annual Report
1.5 (iii) Risks and concerns √
A discussion on Cost of Goods sold, Gross Profit Margin
1.5 (iv) √
and Net Profit Margin.
No such gain
1.5 (v) Discussion on continuity of any Extra-ordinary gain or loss.
or loss
Basis for related party transactions- a statement of all related
1.5 (vi) √ -
party transactions should be disclosed in the annual report.
Utilization of proceeds from public issues, rights issues and/
1.5 (vi) N/A
or through any others instruments.
An explanation if the financial results deteriorate after
1.5 (viii) the company goes for Initial Public Offering (IPO), Repeat N/A
Public Offering (RPO), Rights Offer, Direct Listing, etc.
If significant variance occurs between Quarterly Financial
performance and Annual Financial Statements the Stated in
1.5 (ix) √
management shall explain about the variance on their Annual Report
Annual Report.
1.5 (x) Remuneration to Directors including independent Directors. √
The financial statements prepared by the management
1.5 (xi) of the issuer company present fairly its state of affairs, the √
result of its operations, cash flows and changes in equity.
Proper books of account of the issuer company have been
1.5 (xii) √
maintained.
Appropriate accounting policies have been consistently
applied in preparation of the financial statements and that
1.5 (xiii) √
the accounting estimates are based on reasonable and
prudent judgment.
International Accounting Standards (IAS)/Bangladesh
Accounting Standards (BAS)/International Financial
Reporting Standards (IFRS)/ Bangladesh Financial Reporting
1.5 (xiv) √
Standards (BFRS), as applicable in Bangladesh, have been
followed in preparation of the financial statements and any
departure there-from has been adequately disclosed.
The system of internal control is sound in design and has
1.5 (xv) √
been effectively implemented and monitored.
116
Compliance Status
Condition Remarks
Title Not
Complied
There are no significant doubts upon the issuer company’s
ability to continue as a going concern. If the issuer company
1.5 (xvi) √
is not considered to be a going concern, the fact along with
reasons thereof should be disclosed.
Significant deviations from the last year’s operating results
1.5 (xvii) of the issuer company shall be highlighted and the reasons √
thereof should be explained.
Key operating and financial data of at least preceding 5
1.5 (xviii) √
(five) years shall be summarized.
If the issuer company has not declared dividend (cash or
1.5 (xix) √
stock) for the year, the reasons thereof shall be given.
The number of Board meetings held during the year and
attendance by each Director shall be disclosed. Stated in
1.5 (xx) The pattern of shareholding shall be reported to disclose √ Attendance
the aggregate number of shares (along with name wise Register
details where stated below) held by:-
Parent/Subsidiary/Associated Companies and other related
1.5 (xxi) a. parties √ -
(name wise details);
Directors, Chief Executive Officer, Company Secretary,
1.5 (xxi) b. Chief Financial Officer, Head of Internal Audit and their √ -
spouses and minor children (name wise details);
Executives (top five salaried employees of the company
1.5 (xxi) c. √ -
other than stated in 1.5 (xxi)b);
Shareholders holding ten percent (10%) or more votes
1.5 (xxi) d. √ -
interest in the company (name wise details).
1.5 (ii) Segment-wise or product-wise performance. √
1.5 (iii) Risks and concerns √ Stated in

Annual Report
A discussion on Cost of Goods sold, Gross Profit Margin
1.5 (iv) √
and Net Profit Margin.
No such gain
1.5 (v) Discussion on continuity of any Extra-ordinary gain or loss.
or loss
Basis for related party transactions- a statement of all related
1.5 (vi) √ -
party transactions should be disclosed in the annual report.
Utilization of proceeds from public issues, rights issues and/
1.5 (vi) N/A
or through any others instruments.
An explanation if the financial results deteriorate after
1.5 (viii) the company goes for Initial Public Offering (IPO), Repeat N/A
Public Offering (RPO), Rights Offer, Direct Listing, etc.

Compliance Status
Condition Remarks
Title Not
Complied
If significant variance occurs between Quarterly Financial
performance and Annual Financial Statements the
1.5 (ix) √
management shall explain about the variance on their
Annual Report.
1.5 (x) Remuneration to Directors including independent Directors. √
The financial statements prepared by the management
1.5 (xi) of the issuer company present fairly its state of affairs, the √
result of its operations, cash flows and changes in equity.
Proper books of account of the issuer company have been
1.5 (xii) √
maintained.
Appropriate accounting policies have been consistently
applied in preparation of the financial statements and that
1.5 (xiii) √
the accounting estimates are based on reasonable and
prudent judgment.
International Accounting Standards (IAS)/Bangladesh Stated in
Accounting Standards (BAS)/International Financial Annual Report
Reporting Standards (IFRS)/ Bangladesh Financial Reporting
1.5 (xiv) √
Standards (BFRS), as applicable in Bangladesh, have been
followed in preparation of the financial statements and any
departure there-from has been adequately disclosed.
The system of internal control is sound in design and has
1.5 (xv) √
been effectively implemented and monitored.
There are no significant doubts upon the issuer company’s
ability to continue as a going concern. If the issuer company
1.5 (xvi) √
is not considered to be a going concern, the fact along with
reasons thereof should be disclosed.
Significant deviations from the last year’s operating results
1.5 (xvii) of the issuer company shall be highlighted and the reasons √
thereof should be explained.
If the issuer company has not declared dividend (cash or
1.5 (xix) √
stock) for the year, the reasons thereof shall be given.
The number of Board meetings held during the year and
attendance by each Director shall be disclosed. Stated in
1.5 (xx) The pattern of shareholding shall be reported to disclose √ Attendance
the aggregate number of shares (along with name wise Register
details where stated below) held by:-
Parent/Subsidiary/Associated Companies and other related
1.5 (xxi) a. parties √ -
(name wise details);
Directors, Chief Executive Officer, Company Secretary,
1.5 (xxi) b. Chief Financial Officer, Head of Internal Audit and their √ -
spouses and minor children (name wise details);
Executives (top five salaried employees of the company
1.5 (xxi) c. √ -
other than stated in 1.5 (xxi)b);
Shareholders holding ten percent (10%) or more votes
1.5 (xxi) d. √ -
interest in the company (name wise details).
In case of the appointment/re-appointment of a Director
1.5 (xxii) the company shall disclose the following information to the
shareholders:
1.5 (xxii) a. A brief resume of the Director; √ -
1.5 (xxii) b. Nature of his/her expertise in specific functional areas; √ -

Names of companies in which the person also holds the
Stated in
1.5 (xxii) c. Directorship and the membership of committees of the √
Annual Report
Board.
118
Compliance Status
Condition Remarks
Title Not
Complied
Chief Financial Officer (CFO), Chief Information Technology
2.0 Officer (CITO), Head of Internal Audit and Company
Secretary.
Appointment of CFO, CITO, Head of Internal Audit and
2.1 Company Secretary and their clearly defined roles, √ -
responsibilities and duties.
Attendance of CFO and the Company Secretary at Board
2.2 of √ -
Directors meeting.
3.0 Audit Committee
The company shall have an Audit Committee as a sub-
3 (i) √ -
committee of the Board of Directors.
The Audit Committee shall assist the Board of Directors in
ensuring that the financial statements reflect true and fair
3 (ii) √ -
view of the state of affairs of the company and in ensuring
a good monitoring system within the business.
The Audit Committee shall be responsible to the Board
Stated in their
3 (iii) of Directors. The duties of the Audit Committee shall be √
CV
clearly set forth in writing.
3.1 Constitution of the Audit Committee
The Audit Committee shall be composed of at least 3
3.1 (i) √ -
(three) members.
All Board Members are
The Board of Directors shall appoint members of the Audit nominated by the Govt,
3.1 (ii) Committee who shall be Directors of the company and √ holding 01 share face value
shall include at least 1 (one) independent Director. TK. 100. They are treated as
Independent Director.
All members of the audit committee should be “financially
Stated in their
3.1 (iii) literate” and at least 1(one) member shall have accounting √
CV
or related financial management experience.
3.1 (iv) Filling of Casual vacancy in Committee N/A
The company secretary shall act as the secretary of the
3.1 (v) √ -
Committee.
The quorum of the Audit Committee meeting shall not
3.1 (vi) √ -
constitute without at least 1 (one) independent Director.
3.2 Chairman of the Audit Committee
Chairman of the Audit Committee shall be an independent
3.2 (i) √ -
Director.
Chairman of the audit committee shall remain present in Stated in their Attendence
3.2 (ii) √
the Annual General Meeting (AGM) Register
3.3 Role of Audit Committee
3.3 (i) Oversee the financial reporting process. √ -
3.3 (ii) Monitor choice of accounting policies and principles. √ -
3.3 (iii) Monitor Internal Control Risk management process. √ -
3.3 (iv) Oversee hiring and performance of external auditors. √ -

Review along with the management, the annual financial
3.3 (v) √ -
statements before submission to the Board for approval.
Review along with the management, the quarterly and half
3.3 (vi) yearly financial statements before submission to the Board √ -
for approval.

Compliance Status
Condition Remarks
Title Not
Complied
3.3 (vii) Review the adequacy of internal audit function. √ -
Review statement of significant related party transactions
3.3 (viii) √ -
submitted by the management.
Review Management Letters/ Letter of Internal Control
3.3 (ix) √ -
weakness issued by statutory auditors.
When money is raised through Initial Public Offering (IPO)/
Repeat Public Offering (RPO)/Rights Issue the company
shall disclose to the Audit Committee about the uses/
3.3 (x) applications of funds by major category (capital expenditure, N/A
sales and marketing expenses, working capital, etc), on a
quarterly basis, as a part of their quarterly declaration of
financial results.
Reporting of the Audit Committee
3.4
Reporting to the Board of Directors
The Audit Committee shall report on its activities to the
3.4.1 (i) √
Board of Directors.
The Audit Committee shall immediately report to the Board
3.4.1 (ii)
of Directors on the following findings, if any:
3.4.1 (ii) a. Report on conflicts of interests; √
Suspected or presumed fraud or irregularity or material
3.4.1 (ii) b. √
defect in the internal control system; No such
Suspected infringement of laws, including securities related matter arose
3.4.1 (ii) c. √ as stated
laws, rules and regulations;
by the
Any other matter which shall be disclosed to the Board of
3.4.1 (ii) d. √ management.
Directors immediately.
Reporting of anything having material financial impact to
3.4.2 √
the Commission.
3.5 Reporting to the Shareholders and General Investors √ -
4.0 External/Statutory Auditors
4 (i) Appraisal or valuation services or fairness opinions. √ -
4 (ii) Financial information systems design and implementation. √ -

Book-keeping or other services related to the accounting
4 (iii) √ -
records or financial statements.
4 (iv) Broker-dealer services. √ -
4 (v) Actuarial services. √ -
4 (vi) Internal audit services. √ -
4 (vii) Any other service that the Audit Committee determines. √ -

No partner or employee of the external audit firms shall
4 (viii) possess any share of the company they audit at least during √ -
the tenure of their audit assignment of that company.
Audit/certification services on compliance of corporate
4 (ix) √
governance as require under clause (i) of condition no. 7.
5.0 Subsidiary Company
Provisions relating to the composition of the Board of
Directors of the holding company shall be made applicable
5 (i) √ -
to the composition of the Board of Directors of the
subsidiary company.
120
Compliance Status
Condition Remarks
Title Not
Complied
Stated in
At least 1 (one) independent Director on the Board of
subsidiary
5 (ii) Directors of the holding company shall be a Director on √
company’s
the Board of Directors of the subsidiary company.
annual report
The minutes of the Board meeting of the subsidiary
5 (iii) company shall be placed for review at the following Board √ -
meeting of the holding company.
The minutes of the respective Board meeting of the holding
5 (iv) company shall state that they have reviewed the affairs of √ -
the subsidiary company as well.
The Audit Committee of the holding company shall also
5 (v) review the financial statements, in particular the investments √ -
made by the subsidiary company.
Duties of Chief Executive Officer (CEO) and Chief Financial
6.0
Officer (CFO)
They have reviewed financial statements for the year and
6 (i) -
that to the best of their knowledge and belief :-
These statements do not contain any materially untrue
6 (i) a. statement or do not omit any material fact or contain √ -
statements that might be misleading;
These statements together present a true and fair view of
6 (i) b. the company’s affairs and are in compliance with existing √ -
accounting standards and applicable laws
There are, to the best of knowledge and belief, transactions
entered into by the company during the year are not
6 (ii) √ -
fraudulent, illegal or don’t of the company’s code of
conduct.
7.0 Reporting and Compliance of Corporate Governance
The company shall obtain a certificate from a practicing
Professional Accountant/Secretary (Chartered Accountant/
Cost and Management Accountant/Chartered Secretary)
7 (i) regarding compliance of conditions of Corporate √ -
Governance Guidelines of the Commission and shall send
the same to the shareholders along with the Annual Report
on a yearly basis.
The Directors of the company shall state, in accordance
7 (ii) with the Annexure attached, in the Directors’ report whether √ -
the company has complied with these conditions.

PR GRESS
THR UGH
ADVANCED ENGINEERING
122

CREDIT
RATING
As per Bangladesh Bank’s mandatory requirement, the credit rating of SBL was done by the Emerging Credit Rating Ltd. on
the audited Balance Sheet of 31 December, 2017 and other relevant information. The rating agency awarded the following
ratings:
2017-18 2016-17
Surveillance Rating
Long Term Short Term Long Term Short Term
As Government Supported Bank AAA ST-1 AAA ST-1
Without Government Supported Bank A- ST-2 A- ST-2
Outlook Stable Stable
Date of Rating 30 June 2017 30 June 2016
In their report Emerging Credit Rating Ltd. rated Sonali Bank Limited AAA as With Government Support for long term and
ST-1 for short term. They also rated the Bank A- as Without Government Support for long term and ST-2 for short term. The
outlook of the rating is stable and valid till 30 June 2018.
124
CEO AND CFO’S

DECLARATION TO THE BOARD
29 April, 2019
Board of Directors
Sonali Bank Limited
35-42, 44 Motijheel Commercial Area,
Dhaka, Bangladesh
Sub : CEO and CFO’s declaration to the Board.
In accordance with the notification of Bangladesh Securities and Exchange Commission (BSEC), bearing no. SEC/
cmrrcd/2006-158/134/Admin/44 of 07 August 2012, we, Md. Obayed Ullah Al Masud, Chief Executive Officer and Managing
Director and Subhash Chandra Das, Chief Financial Officer of Sonali Bank Limited do hereby certify that for the year ended
31 December 2018.
i) We have reviewed the financial statements for the year 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 together present a true and fair view of the company’s affairs and are in compliance with existing
accounting standards and applicable laws.
ii) To the best of our knowledge and belief, there are no transactions entered into by the Bank during the year which
is fraudulent, illegal or violation of the Banks code of conduct.
(Subhash Chandra Das FCMA, FCA) (Md. Obayed Ullah Al Masud)

Chief Financial Officer (CFO) CEO & Managing Director

DIRECTORS’ RESPONSIBILITY
FOR FINANCIAL STATEMENTS
Proper Financial Reporting

The Board of Director of SBL is responsible to cause preparation and true & fair presentation of the annual financial
statements of 2018 and other financial information and reports contained in this annual report by the management. The
accompanying financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS) and Bangladesh Accounting Standards as espoused by the Institute of Chartered Accountants of Bangladesh and
Companies Act 1994, Banking Companies Act 1991 (Amended-2013), rules and regulations of Bangladesh Bank and
Bangladesh Securities and Exchange Rules 1987 as considered relevant and appropriate under the circumstances. In
cases where amounts are stated based on estimate those are based on informed judgment and estimate made by the
management and agreed by the Board of Directors. The financial information and data provided in this annual report is fully
consistent with the financial statements.
While preparing the report, the Directors didn’t approve the financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Company as at the end of the financial year and of their profit or loss for the
year. The Directors have also been obliged to ensure that the Company keeps proper accounting records that disclose, with
reasonable accuracy, the financial position of the Company. They have driven the wheel of responsibility for safeguarding
the assets of the Bank.
Income Statements Retained Earnings Balance Sheet

Revenues Net Income Asset
-Expenses -Dividends -Liabilities
Net Income Retained Earnings Owners’ Equity
Nothing has come to the attention of the Directors to indicate that the Bank will not remain a going concern for at least
twelve months from the date of this statement.
We confirm that to the best of our knowledge:
i. The financial statements, prepared in accordance with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit or loss of the Bank and the undertakings included in the
consolidation taken as a whole.
ii. Financial statements reflects the development and performance of the business and the position of the Bank and
the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and
uncertainties that they face.
iii. Appropriate accounting policies have been adopted and applied that consistently.
iv. Prudent and reasonable estimates along with judgment have been applied.
126
Adequate Internal Control

In line with requirement of section 15 (C) of Bank Companies Act-1991 (Amended- 2013), the Board of Directors of SBL
is entrusted to establish suitable system of Internal Control and Compliance (ICC). Accordingly the Board is very much
concerned about this. In setting out a strong internal control and compliance framework within the organization, the Board
established Board Audit Committee and Board Risk Management Committee to ensure effective ICC in the Bank as a part
of oversight functioning. In addition to that, SBL has formed Management Committee (MANCOM) to identify, measure,
monitor and control the risks through framing required policies and procedures with the approval of the Board of Directors.
Gripping of Banking Operational Risks

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. 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.
Independency to the Audit Committee

The Internal control, accounting policies and financial reporting of SBL are under direct supervision of the audit committee
of the Board that in turn report to the Board of Directors for general oversight and supervision. Audit committee of the board
is fully independent of executive management. The committee regularly reviews reports prepared by internal control and
compliance department covering all the business operations of the Bank with particular focus on core risks. ICC division of
the Bank also carries on its activities independently without any intervention and produced the audit and ICC reports to the
Board audit Committee and the Board independently.
Gratis Accessibility to the External Audits

External audit of SBL has the full access to the Audit Committee of the Board for ensuring effectiveness of internal control
procedure and reliability of financial reporting. The Internal Control & Compliance Division of the Bank conducts periodic
audits to provide reasonable assurance that the established policies and procedures of the company were consistently
followed. The auditor of the company, S.F. Ahmed & 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 statements. They have also examined the financial statements made available by the management
together with all the financial records, related data, minutes of shareholders and board meetings, relevant policies and
expressed their clean opinion.
With best regards
On behalf of the Board of the Directors
Md. Ashraful Moqbul

Chairman

REPORT OF THE
AUDIT COMMITTEE
The Audit Committee of the Board of Sonali Bank Limited scope of the audit, to control the Company’s accounting
has been functioning as a sub-committee appointed by policies and practices, or to define the standards used in
the Bank’s Board of Directors in compliance with the Bank preparing the financial statements
Company Act 1991 (amended 2013), Bangladesh Bank’s
BRPD Circular No. 11 of 27 October 2013 and the relevant Key Objectives of Audit Committee
Notifications of Bangladesh Securities and Exchange
To review the financial reporting process, the system
Commission (BSEC) as well as international best practices
of internal control and compliance, the approach
on Corporate Governance. The primary purposes of the
Audit Committee are to provide independent and objective to management of financial risks, the audit process,
oversight of the accounting and financial reporting the processes used by the Bank to identify, quantify
functions along with the internal controls of the Bank and mitigate significant risks to the achievement
and its affiliates and to ensure the objectivity of the Bank’s of objectives, the findings of Bangladesh Bank’s
financial statements. The Audit Committee’s function processes for monitoring compliance under relevant
is one of oversight and review, and it is not required to laws and regulations and its own code of business
prepare or audit the financial statements, to define the conducts.
128
REPORT OF THE AUDIT COMMITTEE
To assist the Board in discharging its oversight Appointment of Statutory Auditors: The Audit
responsibilities by implementing relevant strategies Committee made recommendations to the Board for
and policies. appointing Statutory Auditors in the Annual General
Meeting.
Composition of Audit Committee
Meeting with Statutory Auditors: The committee met
In compliance with Section 3.2(i) of Corporate Governance with the statutory auditors for finalization of financial
Notification issued by BSEC on 07 August 2012 and statements for the year 2018. It also looks into
Bangladesh Bank’s BRPD Circular No. 11 of 27 October account the issues raised in the Management Letter
2013, Board Audit Committee (AC) of Sonali Bank Limited and advised the management to take appropriate
was last re-constituted with the following Board members: remedial actions.
Review of Accounting Policy: The Audit Committee
Status Status reviewed the accounting policies adopted by the bank
Name with the with the
and ensured that the policies are properly applied in
Bank Committee
the preparation of the Financial Statements of the
Mr. A.K.M. Kamrul Islam FCA, FCS Director Chairman Bank.
Mr. Ishtiaque Ahmed Chowdhury Director Member
Review of Interim Financial Statement: The Audit
Dr. Daulatunnaher Khanam Committee reviewed the quarterly and the half yearly
Director Member
(From 20.05.2019)
Financial Statements and ensured that authentic and
Director Member reliable financial information are incorporated in
(From 20.05.2019)
those statements and in other interim reports.
Director Member Review of Financial Statements: The Audit Committee
Mrs. Sabera Aktari Jamal reviewed and examined the Financial Statements of
(Directorship ceased on Director Member 2018 of the Bank to confirm whether all the required
13.01.2019) disclosures and information have been incorporated
Mr. Muhammed Asadullah in the Financial Statements and whether the Bank
(Directorship ceased on Director Member followed International Accounting Standards (IAS)
09.05.2019) and International Financial Reporting Standards
(IFRS) adopted as Bangladesh Accounting Standards
As per regulatory guidelines, Mr. Md. Hasanul Banna
(BAS) and Bangladesh Financial Reporting Standards
General Manager acts as the Secretary of the Audit
(BFRS) by the Institute of Chartered Accountants
Committee.
of Bangladesh, Bank Company Act 1991(amended
Roles and Responsibilities of Audit Committee 2013), Bangladesh Bank Guidelines, the Companies
Act 1994, the Bangladesh Securities and Exchange
The roles and responsibilities of Audit Committee of Commission Rules and other laws and rules
Sonali Bank Limited have been specified by considering applicable in Bangladesh and also Standards issued by
the provisions of BRPD Circular No 11 of 27 October the Accounting and Auditing Organization for Islamic
2013 Corporate Governance Notification issued by BSEC Financial Institutions (AAOIFI), Bahrain, etc. The
on 07 August 2012 and other best practice corporate Committee recommended the Financial Statements
governance guidelines and standards. for the year 2018 for consideration of the Board.
Meetings of Audit Committee Other activities:

The Audit Committee of the bank held as many as 10 Reviewed ‘Risk Based Annual Audit Plan 2018’.
(Ten) meetings in 2018. In those meetings, the committee Reviewed ‘Branch Risk Grading Policy 2018’.
reviewed the findings and recommendations in the
Reviewed ‘Internal Control and Compliance Policy
reports of the bank’s internal and external auditors and
2018’ to ensure full compliance with regulatory issues.
assessed the remedial actions taken by the management.
Proceedings of the Audit Committee meetings were Reviewed and approved the criteria for the
reported timely and regularly to the Board of Directors appointment of External Auditors.
as well as Bangladesh Bank in compliance with the DOS Reviewed the formats for new loan approval/loan
circular letter no. 07 of 24 April 2011. rescheduling/interest waiver/loan write-off proposal
to include all relevant information.
Major Highlights of the Audit Committee
activities in 2018 Discussed and reviewed the Internal and External
Auditors’ findings on the irregularities/lapses detected
During the year under review, the committee performed at different Branches and Divisions of Head Office of
amongst others the following key functions: the Bank.

Evaluated the level of compliance of the Corporate Ensuring the risk management process is
Governance Notification issued by the Bangladesh comprehensive and ongoing, rather than partial and
Securities and Exchange Commission of 07 August periodic.
2012. Helping achieve an organization wide commitment
Reviewed and approved the Terms of Reference (ToR) to strong and effective internal controls, emanating
of the Credit Audit to be performed by External Audit from the tone at the top.
Firms. Reviewed the Loan Documentation Checklist of the
Reviewed the Annual Financial Statements for the Bank etc.
year 2018 of subsidiaries of SBL working home and
abroad. Acknowledgements
Discussed and reviewed Annual Budget 2019 and The Committee would like to place on record its sincere
Revised Budget 2018 and recommended them to the thanks and gratitude to the regulatory authorities, in
Board for approval. particular, Bangladesh Bank and the Bangladesh Securities
Reviewed the report on overdue, classified, and Exchange Commission, external auditors, the Board
rescheduled, written-off loans and advances and other of Directors and management for their earnest support
non-performing assets and advised the management while performing its duties and responsibilities.
to exert all-out efforts to reduce the same. In conclusion, I would like to convey my sincere thanks to
Reviewed the reconciliation performance of inter- the members of the Committee for their invaluable support
branch transaction accounts and advised the and cooperation in carrying out the tasks entrusted with
management to keep it regular. the Committee.
Reviewed the compliance status of audit objections For and on behalf of Audit Committee
and advised the management to ensure full
compliance.
Reviewed the implementation status of decisions
taken by the Committee and Board of Directors.
Held discussion on the Comprehensive Inspection
Report (31 December, 2017) of Bangladesh Bank and
advised the management to rectify all lapses and
to comply with Bangladesh Bank’s instructions and
circulars.
A.K.M. Kamrul Islam FCA, FCS
Supervise other assignments delegated by the Board Chairman
and evaluate its own performance regularly. Audit Committee
130
REPORT OF THE RISK MANAGEMENT COMMITTEE
NOTE FROM THE CHAIRMAN

OF RISK MANAGEMENT COMMITTEE
Bangladesh economy has maintained sustainable growth curb the over-exuberance in lending. It has seen improved
and achieved GDP growth of more than 6 percent on asset quality across our businesses with stronger origination
an average during the last decade. The monetary policy discipline and targeted growth. Loan diversification across
stances for FY2017-18 was formulated with the target of industry sectors and geographies increased as the bank
keeping inflation below 6.0 percent as well as attaining continued to add new clients selectively. Our focus on
GDP growth rate at 7.4 percent. In 2018, the banking sector embedding a sustainable risk culture and an effective
exposed further weaknesses through major indicators
enterprise risk management approach are helping to build
such as rise of non-performing loans, lower capital
a more resilient bank for the benefit of our employees,
adequacy and the overall lack of governance in the sector.
Still liquidity crisis is in alarming condition for increasing clients and stakeholders. Keeping in mind the burning
investment growth. In this regard Sonali Bank Limited risk issues we have made significant progress in our work
focused on various macro-prudential measures including to combat financial crime and have increased focus on
intensive surveillance on adherence to prescribed Asset- our cyber risk management capabilities. Risk is a shared
Liability Management (ALM) and Forex Risk Management responsibility of everyone in the bank, and is an intrinsic
guidelines to rationalize the Advance/Deposit Ratios to part of every decision that we make.

Composition of the Board Risk Management Including skilled employees on IT Security & Risk
Committee Management in internal audit team.
Granting rewards for the employees on achievement
In line with the circular no.11 dated 27 October, 2013 of
of stipulated target.
Bangladesh Bank, the Board Risk Management Committee
of Sonali Bank Limited was last re-constituted with the Proper classified-asset-management activities have
following Board members: steadily reduced classified loan ratios. We have updated
our Credit Policy in line with Bangladesh Bank circulated
Status “Guidelines on Credit Risk Management (CRM) for Banks”.
Status with
Name with the Following updates has been incorporated in our credit
the Bank
Committee policy guidelines.
(Directorship ceased on Director Chairman 1. Risk Appetite Statement has been embodied in risk
09.05.2019) policy and delegated authorities.
Mr. Ishtiaque Ahmed
Director Chairman 2. Bank established loan growth limits to credit
Chowdhury (From 20.05.2019)
concentration across all the possible dimensions of
Dr. Md. Nurul Alam Talukder Director Member concerned risks.
Dr. Daulatunnaher Khanam Director Member 3. Risk identification, measurement, monitoring and
control mechanism have been integrated in the credit
Mr. Md. Mofazzal Husain Director Member policy.
4. The bank is going to develop an internal credit risk

Risk management is a dynamic process. The Board
rating system in line with BB’s guidelines to determine
Risk Management Committee has responsibility for
whether provisions and capital are adequate.
oversight and review of prudential risks, including but not
limited to credit, country cross-border, market, pension, 5. Bank’s loan review process includes assessment of
capital, liquidity and funding, and operational risks. The the loan management process, credit quality and the
Committee also reviews on key cyber risks, threats, events, results/profitability of the loan portfolio.
project updates and the Board’s top risk profile updates as
identified. The Committee receives regular reports on risk 6. Policy has specified allowable types of collateral, the
management, including our portfolio trends, policies and frequency and methodology of its valuation.
a standard, stress testing, liquidity and capital adequacy, 7. Strategies formulated for upgrading CAMELS rating of
and is authorized to investigate or seek any information the Bank.
relating to and activity within its terms of reference.
The Bank has multiple initiatives underway to improve
We have a number of ongoing initiatives that will further infrastructure for compliance risk management, exposure
enhance the risk management framework and capability management, data quality, stress testing, operational
of the bank. As part of this framework, in 2018 The risk management and reporting. We have also worked
Board Risk Committee has approved a set of principles to streamline and simplify our processes to serve clients
by conducting monthly meetings that describe the risk better and drive internal efficiencies.
management culture we wish to sustain:
Before I conclude, I wish to extend my sincere gratitude
Board has approved Risk Appetite Statement and to my colleagues in the RMC for their valuable guidance,
Internal Capital Adequacy Assessment Process support and contribution in carrying out the tasks
(ICAAP). of the Committee smoothly. I also wish to place my
Strengthening risk assessment by introducing a sincere appreciation for the good work rendered by
dynamic risk registers as risk identification process. We the member of Risk Management Committee of the
continue to focus on early identification of emerging Bank and the executives along-with the officers of the
risks so that we can manage any areas of weakness Risk Management Division of the Bank. I am profoundly
on a proactive basis. thankful to the Chairman and other members of the Board
for their confidence reposed in me for steering the risk
Approval of collaborating work with Chief Financial
management agenda of the Bank.
Officer, Chief Audit Officer, Chief Information
Technology Officer on Core Risk Management and
submitting the progress report towards the Board of
Directors.
Approval of Technical Committee on IT System Audit
for Elevating Conduct, Compliance, Financial crime
and Information and cyber security by approving (Ishtiaque Ahmed Chowdhury)
Action Plan on Control and Compliance, Anti Money Chairman
Laundering Segment and Cyber crime. Board Risk Management Committee
132
STAKEHOLDERS INFORMATION
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
Government and BSEC
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
Suppliers and Landlord of leased premises
Service Providers Suppliers of fixed assets
Maintenance and security service providers
Suppliers of fixed assets
Professionals and self-employers

Communities and Civil society
Environment Graduate students
Different communities
Shareholding Structure of SBL
Number of Shares
Particulars
As at 31 December, 2018 As at 31 December, 2017
General Public - -
Government 453,000,000 413,000,000
Total 453,000,000 413,000,000

Present Shareholding Pattern

SI. Sponsor Shareholders No. of Shares Amount in Tk. (%) of Shareholding
The Government of the People's
Republic of Bangladesh: On Behalf
1 of Secretary Finance Division Ministry 452,999,991 45,299,999,100 99.999998234
of Finance, The Government of the
People's Republic of Bangladesh
Individual Directors nominated by the Government
2 Mr. Md. Ashraful Moqbul 1 100 0.00000022075
3 Mr. Md. Fazlul Haque 1 100 0.00000022075
4 Mr. Md. Mahboob Hossain 1 100 0.00000022075
5 Mrs. Sabera Aktari Jamal 1 100 0.00000022075
6 Mr. Afzal Hossain 1 100 0.00000022075
7 Mr. Muhammed Asadullah 1 100 0.00000022075
8 Mr. A.K.M Kamrul Islam FCA, FCS 1 100 0.00000022075
9 Dr. Md. Nurul Alam Talukder 1 100 0.00000022075
10 Mr. Ishtiaque Ahmed Chowdhury 1 100 0.00000022075
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, 2018

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:

Annual Report 2018 and other information about SBL may be accessed on Bank’s Website: www.sonalibank.com.bd. SBL
provides copies of Annual Report to the Ministry of Finance, Bangladesh Securities and Exchange Commission, Bangladesh
Bank, Registrar of Joint Stock Companies and Firms for their reference.
Shareholders Inquiries and Communication:

Shareholders and others may contact at any time to 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.
Queries Relating to Corporate Information:

Queries relating to any corporate information and published financial information may be addressed to the Company
Secretary of Sonali Bank Limited.
Related Parties:
The Bank provides banking service to different ministries and corporations in the form of advances, letter of credit, bank
guarantee etc. but the Bank had no transactions with the Directors of the Bank as a related party.
134
(i) Directors of Sonali Bank Limited and their interest in the Bank :
Date of
No. of
SI. Name Present Address Appointment/
Shares
Reappointment
Mr. Md. Ashraful Moqbul B-10, Domino Inova, 8,

01. 26-07-2016 01
Chairman of the Board of Directors New Baily Road, Dhaka-1243.
4-C-3, Govt. Officer's Apartment,

02. Mr. Md. Fazlul Haque 27-12-2015 01
Mirpur-1, Dhaka-1216.
House #21, Road #5,

20-12-2012
Pisci culture Housing Society,
03. Mr. Md. Mahboob Hossain 30-09-2013 01
P.S.: Adabar, Block: Kha,
16-02-2016
Mohammadpur, Dhaka-1207.
Eastern Mobarak, House# 76,

04. Mrs. Sabera Aktari Jamal Flat# 205, Road# 8/A, 07-01 -2016 01
Dhanmondi, Dhaka-1209.
104/1, Boro Moghbazar,

05. Mr. Afzal Hossain 07-01-2016 01
Dhaka-1217.
Apartment D-3, House # 18,

06. Mr. Muhammed Asadullah Hasan Heritaze, Road # 5 03-05-2016 01
Dhanmondi R/A, Dhaka.
Flat# A/5, Residensia (5th Floor),

07. Mr. A. K. M. Kamrul Islam FCA, FCS House# 13, Road# 10, Block: B, 22-12-2016 01
Basundhara R/A, Dhaka-1229.
House #71, Road#19,

08. Dr. Md. Nurul Alam Talukder 13-03-2017 01
Rupnagar R/A, Pallabi, Dhaka-1216.
09. Mr. Ishtiaque Ahmed Chowdhury -- 19-07-2018 01
Mr. Md. Obayed Ullah Al Masud 72/1, Jigatola,

10. 24-08-2016 N/A
CEO & Managing Director Dhanmondi, Dhaka.

(ii) Particulars of Directors of Sonali Bank Limited and their interest in other entities:
Name of the firms/companies in which
interested as proprietor, partner.
SI. Name Status with SBL Status
Managing Director, managing agent,
guarantor, employee etc.
Mr. Md. Ashraful Moqbul
1. Chairman of the Board of Chairman -- --
Directors
2. Mr. Md. Fazlul Haque Director -- --
3. Mr. Md. Mahboob Hossain Director -- --
4. Mrs. Sabera Aktari Jamal Director -- --
5. Mr. Afzal Hossain Director -- --
Managing
6. Mr. Muhammed Asadullah Director Alpha Credit Rating Limited
Director
Mashnoons Limited Chairman
Senior
Dhaka Chamber of Commerce and
Vice-Chairman
Industry (DCCI)
& Director
7. Mr. A.K.M. Kamrul Islam FCA, FCS Director Japan Bangladesh Chamber of Commerce
Director
and Industries (JBCCI)
Islam Aftab Kamrul & Co.
Partner
(Chartered Accountants)
Transparency International Bangladesh
Life Member
Chapter
8. Dr. Md. Nurul Alam Talukder Director Bangladesh Economic Association Life Member
Mr. Ishtiaque Ahmed Chowdhury Director -- --

9.
Institute of Bankers Bangladesh (IBB) Vice-Chairman
Sonali Bank (UK) Ltd. London, UK Director
Sonali Exchange Co. Inc., New York, USA Director
Primary Dealers Bangladesh Ltd. (PDBL) Director
Investment Corporation
Director
CEO & of Bangladesh (ICB)
10. Mr. Md. Obayed Ullah Al Masud Managing Sonali Investment Ltd. (SIL) Director
Director
Central Depository Bangladesh Ltd. (CDBL) Director
Industrial and Infrastructure Development
Director
Finance Company Ltd (IIDFC)
Bangladesh Institute of Bank
Director
Management (BIBM)
Bangladesh Foreign Exchange
Member
Dealers Association (BAFEDA)
136
REDRESSING TO SHAREHOLDERS’
OBSERVATIONS/ SUGGESTIONS:
In the 11th 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 Division wise loans and advances have been included in
2.
Financial Statements. Financial Statements since 2014.
Till 31.12.2018, SBL has established its own 105 ATMs and
To increase sufficient number of ATM Booths with 08 co-branded ATM Booths with a joint collaboration of
sophisticated machines in both urban and rural Bangladesh Post Office. Furthermore, SBL card holders can
3. also get access of their cards from other booths countrywide.
branches and urged to make the Bank's website user
friendly. SBL'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 SBL (www.
in abridged form with important data/information and sonalibank.com.bd). Mentionable here is that Annual Report of
5.
uploading the detailed Annual Report in the website of the previous year has been preserved in the mentioned web
the Bank ensuring green banking practice. address.
Necessary guidelines, instructions in this regard have been
provided to the branches by the Management of the Bank from
Suggested for rendering better customer service by the
6. time to time following constant supervision and monitoring
branch officials other than that of conventional banks.
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.

COMPARATIVE FINANCIAL
HIGHLIGHTS OF SBL
(Figure in million except stated otherwise)
Particulars 2018 2017 Increase/ (Decrease) Change %
Income Statement
Total revenue 78321 74353 3968 5.34%
Total expenses 58064 62398 (4334) (6.95%)
Operating profit 20257 11955 8302 69.45%
Profit before tax 6251 9574 (3323) (34.71%)
Profit after tax 2264 7092 (4828) (68.08%)
Earnings per share 5.47 18.50 (13.03) (70.44%)
Asset and Liabilities
Total Assets 1306842 1256712 50130 3.98%
Earning Assets 930841 850536 80305 9.44%
Total loans and advances 464083 423218 40865 9.65%

Fixed Assets including Premises,
33377 33307 70 0.21%
Furniture and Fixture
Total deposit 1093769 1064226 29543 2.77%
Shareholders' equity 70137 66087 4050 6.13%
Capital
Paid up capital 45300 41300 4000 9.68%
Capital maintained 53617 47684 5933 12.44%
Risk Weighted Assets (RWA) 530879 460763 70116 15.21%
Capital required 53088 46076 7012 15.21%

Capital Adequacy Ratio (CAR)/Capital to
10.10% 10.35% (0.25%) -
Risk weighted Assets Ratio (CRAR)
Share Information
Earnings per Share 5.47 18.50 (13.03) (3.80%)
Net Assets Value per Share (NAVPS) 154.83 160.02 (5.19) (3.24%)
Number of share (in million) 453.00 413.00 40.00 9.68%
Regulatory Ratio
Cash Reserve Requirement (CRR) 7.30% 8.08% (0.78%) -
Statutory Liquidity Ratio (SLR) 38.27% 44.13% (5.86%) -
Capital Adequacy Ratio (CAR) 10.10% 10.35% (0.25%) -
Credit Deposit Ratio 42.43% 39.76% 2.67% -
Asset Quality
Amount of classified loans and advances 121883 149302 (27419) (18.36%)
% of classified loans and advances 26.26% 35.28% (9.02%) -
Required provision for loans and advances 49269 41034 8235 20.07%
138
GRAPHICAL
PRESENTATION
Operating Profit Tk. In Million Net Profit After Tax Tk. In Million
20257 7092
6054
11955
8651 8547
2264
4251 1516
586
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Shareholders' Fund Tk. In Million Earning Per Share (EPS) InTk.
70137 32.12
66087 67374
58383 59579
18.50
5.47
3.96
1.53
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Paid up Capital Tk. In Million Capital Adequacy Ratio*

45300 10.10% 10.35% 10.33% 10.08%
41300
38300 38300
7.59%
31200
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014

GRAPHICAL
PRESENTATION
Total Asset Tk. In Million Earning Asset Non Earning Asset Tk. In Million
1306842 Earning Asset Non Earning Asset
1256712
1200589
1026109
930841
934592
850536
796747
404867
403843
708930
376002
637709
317178
296883
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Return on Asset (ROA) Return on Investment (ROI)

0.68% 7.80%
0.58%
7.58%
7.50%
7.29%
7.06%
0.18%
0.14%
0.06%
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Net Asset Tk. In Million Import Export Foreign Remittance Tk. In Million
Import Export Foreign Remittance
70137
66087 67375
1155301
58383 59579
300143
257020
147655
200598
144194
134328
135649
133119
129601
45432
63525
36882
32503
28495
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
140
GRAPHICAL
PRESENTATION
Loans & Advances\Classified Loans Tk. In Million Classified Loan Recovery Tk. In Million
Loans & Advances Classified Loans 45063
38780
4,64,086
4,23,218
3,84,538
3,84,315
27263
3,46,346
1,49,302
1,21,883
1,09,115
1,02,475
12880
86,850
10912
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Deposit Tk. In Million Rate of Classified Loan

1093866 1064311 35.28%
1031608
866012 28.37%
778043 26.26% 25.61%
25.08%
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Investment & Income from Investment Tk. In Million No. of Branches

Investment Income from Investment
1215 1211 1209 1207 1204
4,68,881
4,62,577
4,07,955
4,44,052
34,341
3,22,727
33,956
30,968
27,400
23,136
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014

KEY FINANCIAL DATA

AND RATIOS OF SBL
Particulars 2018 2017 2016 2015 2014
Authorized Capital 60000 60000 60000 60000 60000
Paid up Capital 45300 41300 38300 38300 31200
Reserve Fund and Surplus 24837 24787 29075 20083 21279
Total Shareholders’ Equity 70137 66087 67375 58383 59579
Deposits 1093866 1064311 1031608 866012 778043
Loans And Advances 464083 423218 384538 346346 337554
Investments 444052 462577 468881 407955 322727
Fixed Assets including Premises, Furniture and
33377 33307 33114 33016 32768
Fixture
Total Assets 1306842 1256712 1200590 1026109 934592
Total Off Balance Sheet Exposure 1097372 1148178 196926 251953 229930
Earning Assets 930841 850536 796747 708930 637709
Non-earning Assets 376002 406175 403843 317178 296883
Net Worth 70137 66087 67374 58383 59579
Income Statement
Interest Income 32708 27674 31010 32313 29904
Income on Investment 34341 33956 30968 27400 23136
Non-interest Income 11272 12723 9001 9689 11701
Total Income 78321 74353 70979 69402 64741
Interest Expenses 39001 42900 47352 46699 43284
Non-interest Expenses 19063 19498 19375 14051 12910
Total Expenses 58064 62398 66727 60750 56194
Net Interest Margin (NIM) 28048 18730 14626 13014 9756
Net Non-interest Expenses 7791 6775 10334 4362 1209
Operating Profit 20257 11955 4251 8651 8547
Earnings Before Provision, Depreciation and Tax 20811 12460 4818 9221 9111
Profit Before Provision and Tax 20257 11955 4251 8651 8547
Net Profit After Tax 2264 7092 152 586 6054
Capital Matrix
Risk Weighted Assets (RWA) 530879 460763 451931 394310 406843
Total Required Capital 53088 46076 45193 39431 40684
Total Regulatory Capital Maintained 53617 47684 46688 39744 49785
Capital Surplus/(Shortfall) 529 1608 1495 313 9101
Capital Adequacy Ratio (CAR) 10.10% 10.35% 10.33% 10.08% 12.24%
Core Capital Ratio 8.18% 8.07% 7.45% 6.43% 7.72%
Supplementary Capital Ratio 1.92% 2.28% 2.88% 3.65% 4.52%
Amount of Supplementary Capital 10208 10517 13031 14387 18375
142

Particulars 2018 2017 2016 2015 2014
Financial Ratios (%)
Operating Profit Ratio 25.86% 16.08% 5.99% 12.47% 13.20%
Gross Profit Ratio 25.86% 16.08% 5.99% 12.47% 13.20%
Operating Profit as a % of Average Working Fund 1.56% 0.98% 0.37% 0.89% 0.95%
Return of Assets (ROA) 0.18% 0.58% 0.14% 0.06% 0.68%
Return of Equity (ROE) 3.32% 10.63% 2.18% 0.99% 11.05%
Return on Investment (ROI) 7.58% 7.29% 7.06% 7.50% 7.80%
Return on Loan and Advance 5.74% 6.85% 7.14% 8.78% 7.88%
Return on Capital Employed 0.22% 1.22% 0.45% 1.04% 1.12%
Return on Earning Assets 0.24% 0.85% 0.19% 0.08% 0.95%
Operating Profit per Employee 1.17 0.65 0.21 0.39 0.38
Net Profit per Employee 0.13 0.39 0.08 0.03 0.27
Operating Profit per Branch 16.67 9.87 3.52 7.17 7.1
Net Interest Margin on Earning Assets(NIM) 3.15% 2.27% 1.94% 1.93% 1.66%
Efficiency Ratio 24.33% 26.22% 27.30% 20.25% 19.94%
Burden Ratio 0.60% 0.56% 0.93% 0.44% 0.14%
Cost of Deposit 3.61% 4.09% 4.84% 5.57% 6.23%
Yields on Loans and Advances 5.74% 6.85% 7.14% 8.78% 7.88%
Interest Spread 2.13% 2.76% 2.30% 2.78% 2.24%
Cost of Fund 5.38% 5.95% 6.95% 7.34% 8.09%
Cost to Income Ratio 74.13% 83.92% 94.01% 61.89% 60.16%
Debt Equity Ratio (Times) 17.63 18.02 16.82 16.57 14.69
Current Ratio (Times) 1.58 1.67 1.46 1.86 1.83
Net Asset Value per Share (NAVPS-in TK.) 154.83 160.02 175.91 152.44 190.96
Earnings per Share (EPS- In TK.) 5.47 18.50 3.96 1.53 32.12
Capital Adequacy Ratio (CAR) 10.10% 10.35% 10.33% 10.08% 12.24%
Credit Deposit Ratio 42.43% 39.76% 37.28% 39.99% 43.39%
Cash Reserve Ratio / Liquidity Ratio (CRR) 7.30% 8.08% 7.22% 7.73% 6.59%
Statutory Liquidity Ratio (SLR) 38.27% 44.13% 48.50% 51.53% 42.85%
Foreign Exchange Business
Import 257020 1155301 134328 200598 300143
Export 32503 28495 36882 45432 63525
Foreign Remittance 144194 129601 147655 135649 133119


Particulars 2018 2017 2016 2015 2014
Asset Quality
Classified Loans and Advances(Non-performing
121883 149302 109114 86850 86437
Loans)
Percentage of NPLs to Total Loans and Advns. 26.26% 35.28% 28.37% 25.08% 25.61%
Required Provision for Unclassified Loans 5223 2789 3258 3258 3049
Required Provision for Classified Loans 68774 38864 39281 39652 52393
Total Required Provision for Loans and Adv 49269 41034 42539 42910 55442
Total Provision Maintained for Loans and Adv 49269 41653 42539 42910 55460
Provision Excess/(Shortfall) for Loans and Advances - 619 - - 18
General Provision Maintained 5223 2789 3258 3258 3067
Specific Provision Maintained 44046 38864 39281 39652 52393
Required Provision for Classified Investment 1579 571 157 157 -
Provision Maintained for Classified Investment 1579 571 157 157 -
Required Provision for Classified Other Assets 4222 3294 2994 2928 2210
Provision Maintained for Other Assets 4222 3294 2994 2928 2210
Total Classified Assets 121883 149302 109114 86850 86437
Total Un-Classified Assets 342200 273916 275424 259496 250825
Required Provision for Contingent Liabilities 2383 2027 1969 2519 2299
Provision Maintained for Contingent Liabilities 2383 2027 1969 2519 2299
Total Provision Required 59313 47464 45690 48514 59951
Total Provision Maintained 59313 48082 45690 48514 59969
Surplus/ (Shortfall) - 618 - - 18
Current Assets 422558 438880 388392 368437 317162
Current Liabilities 268138 262856 265545 197662 173314
Net Current Assets 154420 176024 122847 170775 143848
Long Term Liabilities 968567 917768 867670 770063 701699
Long Term Liabilities/Current Liabilities 3.61:1 3.53:1 3.27:1 3.90:1 4.05:1
Shares Information Matrix
Import 257020 1155301 134328 200598 300143
Export 32503 28495 36882 45432 63525
Foreign Remittance 144194 129601 147655 135649 133119
Shares Information Matrix
No. of Shares 45300000 413000000 383000000 383000000 312000000
Earnings per Share (EPS- in Tk.) 5.47 18.50 3.96 1.53 32.12
Net Asset Value per Share (NAVPS-in Tk.) 154.83 160.02 175.91 152.44 190.96
Market Price per Share Not Listed in Stock Exchange
Dividend - - - - -
Right Share Issued - - - 7100 19950
Other Information
No. of Branches 1215 1211 1209 1207 1204
No. of Loss Branches 93 181 233 126 31
No. of Employees 17271 18301 20203 22100 22446
No. of Foreign Correspondents 669 649 649 642 639
144
HORIZONTAL AND VERTICAL

ANALYSIS OPERATING PERFORMANCE
Particulars 2018 2017 2016 2015 2014
Total Revenue 78321 74353 71187 69402 64741
Interest Expenses 39001 42900 47352 46699 43284
Administrative and Other Expenses 19063 19498 19375 14052 12910
Operating Profit 20257 11955 4251 8651 8547
Provisions including Amortization 14006 2381 834 10920 2706
Profit Before Tax 6251 9574 3417 (2269) 5841
Provision for taxation 3987 2482 1900 (2856) (213)
Profit After Tax 2264 7092 1516 586 6054
Reserve Fund 1269 1918 711 60 1228
EPS 5.47 18.50 3.96 1.53 32.12
Operating Performance
EPS
Reserve Fund
Profit After Tax
Provision for Taxation
Profit Before Tax
Provision including Amortization
Operating Profit
Administrative and other Expenses
Interest Expenses
Total Revenue
-40% -20% 0% 20% 40% 60% 80% 100%
2014
2015
2016
2017
2018
-20% 0% 20% 40% 60% 80% 100%

Total Revenue Profit Before Tax Interest Expenses Provision for taxation Administrative and Other Expenses Profit After Tax EPS
Operating Profit Reserve Fund Provisions including Amortization

HORIZONTAL AND VERTICAL

ANALYSIS BALANCE SHEET
Particulars 2018 2017 2016 2015 2014
Cash in Hand 5017 5113 6289 5855 6867
Balance With Bangladesh Bank and its Agent Bank 93111 82883 73793 64622 46515
Balance With Other Banks and FI's 107494 68568 38820 28572 39838
Money at Call and Short Notice 19723 22565 3586 4522 9226
Investments 444052 462577 468881 407955 322727
Loans and Advances 464083 423218 384538 346346 337554
Fixed Assets 33377 33307 33113 33016 32768
Other Assets 139985 142101 191566 135219 139097
Total Assets 1306842 1240332 1200589 1026108 934592
Balance Sheet Analysis

Cash in Hand
Balance with Bangladesh Bank

and its Agent Bank
Balance with Other Banks and FI's
Moneyat Call and Short Notice
Investment
Loans and Advances
Fixed Assets
Other Assets
Total Assets
0% 20% 40% 60% 80% 100%
2018 2017 2016 2015 2014
2014
2015
2016
2017
2018
0% 20% 40% 60% 80% 100%

Cash in Hand Money at Call and Short Notice Fixed Assets Balance With Bangladesh Bank and its Agent Bank Investments Other Assets
Balance With Other Banks and FI's Loans and Advances Total Assets
146
GRAPHICAL PRESENTATIONS OF PROFITABILITY,

DIVIDEND, PERFORMANCE AND LIQUIDITY RATIO
Gross Profit Ratio Earning before Provision, Depreciation and Tax
25.86% 20811
16.08%
12460
12.47% 13.20%
9221 9111
5.99% 4818
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Current Ratio (Times) Return on Equity (ROE)

1.86 1.83 11.05%
10.63%
1.67
1.58
1.46
3.32%
2.18%
0.99%
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Return on Loans & Advances Debt Equity Ratio (Times)

8.78% 17.63 18.02
16.82 16.57
7.88%
7.14% 14.69
6.85%
5.74%
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Cost to Income Ratio Efficiency Ratio

94.01%
27.30%
26.22%
83.92%
24.33%
74.13%
61.89% 60.16% 20.25% 19.94%
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014

SEGMENT WISE
GRAPHICAL PRESENTATIONS
Segment of Total Revenue Comparison of Segmented Capital
2018 2017
41300
45300
13008
10748
11450
10200
7425
42% 42%
-13458
-14450
117
117
0
14% Paid up Statutory Other Asset Revaluation Retained
Capital Reserve Reserve Revaluation of Earnings
Interest Income Income on Investment Non Interest Income Reserve Investment
Division wise Deposit Division wise Loans and Advances

6% 9%
4%
Dhaka
2% Dhaka
4%
5% Barisal 9% Barisal
Chittagong Chittagong
7%
Rajshahi Rajshahi
Rangpur Rangpur
22% 9%
Sylhet Sylhet
Khulna 3% Khulna
56% 61%
3%
Division wise Income vs Expenses Tk. In Million Division wise Operating Profit
Income Expenses 5%
2%
Khulna 6% Dhaka
Sylhet 5%
Barisal
Rangpur Chittagong
Rajshahi
Rajshahi
19%
Rangpur
Chittagong
Sylhet
Barisal
1% Khulna
Dhaka 62%
0% 20% 40% 60% 80% 100%
Industry wise Loans and Advances Sector wise Loan & Advances
4%
General Adnce 1%
17% and Others
16%
Rural Credit
Micro Credit
Industriul Credit
Other Public
7%
Agro based Industrial
Credit 83% Private
International Trade Government
15% 44% SME Finance
Industry wise Loans

and Advances
3% 10%
148
STATEMENT OF VALUE ADDITION

AND ITS DISTRIBUTION
Distribution of Value Addition Distribution of Value Addition

Taka in Million. In % Taka in Million. In %
a. Income from Banking Services 78,321.49 - 74,353.01 -
b. Less: Cost of Services and Supplies 43,982.55 - 47,763.52 -
c. Value Added by the Banking Services(a-b) 34,338.94 - 26,589.49 -
d. Add: Non Banking Income 3,535.27 - 2,043.73 -
e. Less: Loan Loss Provisions 14,006.02 - 2,380.87 -
Value Added (c+d-e) 16,797.65 - 22,164.89 -
Distribution of Value addition:

i) To Employees as Salaries, allowances and
13573.89 81% 14,191.05 64%
bonuses:
ii) To Expansion and Growth:
Statutory reserve 1250.27 7% 1,914.81 9%
General Reserve 19.01 0% 3.13 0%
Retain earnings 994.93 6% 5,173.73 23%
Depreciation 507.68 3% 443.54 2%
Taxation 451.87 3% 438.64 2%
Amortization of Jute Sector Reform Project - - - 0%
Amortization of Intangible Assets - - - 0%
Sub Total 3223.76 19% 7,973.84 36%
Total (i+ii) 16,797.65 100% 22,164.89 100%
Distribution of Value Addition-2018 Distribution of Value Addition-2017

3% 3% 2% 2%
6% 81% 63%
7% 23%
To Employees as Salaries, To Employees as Salaries,
allowances and bonuses: allowances and bonuses:
Statutory reserve Statutory reserve
Retain earnings Retain earnings
Depreciation Depreciation
9%
Taxation Taxation
General Res erve General Res erve

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.
2018 2017 2016 2015

Particulars
Taka in Million. Taka in Million. Taka in Million. Taka in Million.
Shareholders' Equity 70,137 66,087 67,374 58,383

Add Cumulative provision for Loans, Investment, Other
59,323 48,082 47,668 48,524
Asset and Off Balance sheet exposures
Total Invested Fund 129,460 114,159 115,042 106,907
Average shareholders' equity 68,112 66,731 62,879 58,981
Earnings
Profit after Tax 2,264 7,091 1,516 586
Add provision for loans and other during the year 14,006 2,380 834 10,920
Less Written off loan recovered during the year 945 387 804 1,400
Earning for the year 15,325 9,084 1,546 10,106
Average cost of equity

(based on weighted average rate of 10 years treassury
bond issued by Bangladesh Government +2% risk 11.11% 11.23% 11.66% 12.70%
premium
Cost of average equity 1,702.61 1,020.13 - -
Economic value added 13,486.00 7,993.92 1,360.48 8,893.28
Growth over last year 0.69 4.8758 -0.847 0.2948
Economic Value Added
2018 13486
2017 7994
2016 1360
2015 8893
150
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
SBL 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.
Calculation of Market value added
Particular Number of Shares Value Per Share (Taka) BDT
Intensive value per share 453,000,000 154.83 70,137,990,000
Book Value 453,000,000 100.00 45,300,000,000
Market Value Added 453,000,000 54.83 24,837,990,000
Maintaining Liquidity
Maturity Analysis Below 1 year 1-5 years Above 5 years Total
Interest earning Assets 381,144,120,909 197,854,148,130 351,842,310,455 930,840,579,494
Non-interest earning Assets 210,567,370,484 89,099,622,576 76,334,747,341 376,001,740,401
Total Assets 591,711,491,393 286,953,770,706 428,177,057,796 1,306,842,319,895
Interest bearing Liabilities 893,297,334,092 102,957,083,073 98,270,943,032 1,094,525,360,197
Non-interest bearing Liabilities 8,710,972,345 56,543,245,667 76,925,870,506 142,180,088,518
Total Liabilities 902,008,306,437 159,500,328,740 175,196,813,538 1,236,705,448,715
Net Liquidity Gap (310,296,815,044) 127,453,441,966 252,980,244,258 70,136,871,180
Cumulative Gap (310,296,815,044) (182,843,373,078) 70,136,871,180 -
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 SBL stood at 45.57% (required 18.50% of total demand and time
deposits) in December 2018.
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 SBL is still negative,
the Bank has not recommended any dividend for the year 2018.

Maintaining Capital Adequacy
Eligible Capital 2018 2017
Tier-1 (Core capital) 43,409.10 37,166.68
Tier-2 (Supplementary capital) 10,207.74 10,517.10
Tier-3 (eligible for market risk only) - -
Total Eligible capital 53,616.77 47,683.78
Total risk weighted assets (RWA): 530,878.60 460,762.90
Capital to Risk Weighted Asset Ratio (CRAR)/ (CAR) 10.10% 10.35%
Core capital to RWA 8.18% 8.07%
Supplementary capital to RWA 1.92% 2.28%
Minimum capital requirement (MCR) 53,087.86 46,076.29
Capital surplus/(shortfall) 528.91 1,607.49
Financial Calender 2018
Events Status Date
12th Annual General Meeting Will be held on June 20, 2019
Financial Statement for the year 2018 Signed on April 29, 2019
Audited consolidated results for the 4th quarter ended 31 December 2018 Announced on April 29, 2018
Unaudited solo results for the 1 st quarter ended 31 March 2018 Announced on April 30, 2019
Unaudited solo results for the 2nd quarter ended 30 June 2018 Announced on July 31, 2018
Unaudited solo results for the 3rd quarter ended 30 September 2018 Announced on October 30, 2018
Financial Calender 2019 (Proposed)
Events Status Date
13th Annual General Meeting Will be held on March 31, 2020
Financial Statement for the year 2019 Will be signed on February 27, 2020
Audited consolidated results for the 4th quarter ended 31 December 2019 Will be announced on February 27, 2020
Unaudited solo results for the 1st quarter ended 31 March 2019 Will be announced on April 30, 2019
Unaudited solo results for the 2nd quarter ended 30 June 2019 Will be announced on July 31, 2019
Unaudited solo results for the 3rd quarter ended 30 September 2019 Will be announced on October 30, 2019
152
PR GRESS
THR UGH
THE SEA
154
RISK MANAGEMENT

REPORT ON
RISK MANAGEMENT
Risk Management at our bank 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 a verity of risks throughout its overall business activitiesThe
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 SBL is based on the Bangladesh Bank guidelines and the clear concept of identification,
assessment, parameter setting, controlling and monitoring activities. The primary goals of risk management are to ensure
that the outcomes of risk-taking activities are consistent with the Bank’s strategies and risk appetite, and that there is an
appropriate balance between risk and reward in order to maximize return.
The Bank’s risk management framework is applied on an enterprise-wide basis and consists of three key elements:
A. Risk Governance,
B. Risk Appetite, and
C. Risk Management Tools
RISK GOVERANCE
RISK APPETITE, RISK TOLERANCE, RISK

LIMIT RISK APPETITE STATEMENT
RISK MANAGEMENT TOOLS POLICY & LIMITS

GUIDELINES, PROCESS & STANDARDS MEASURING,
MONITORING, REPORTING STRESS TESTING
RISKS CREDIT, MARKET, LIQUIDITY, OPERATIONAL,

ICT, AML, ENVIRONMENTAL, OTHERS
156
RISK MANAGEMENT
Risk Management Framework

A. Risk Governance:
The various risks across Bank is monitored and reviewed through the Executive Level Committees and the Risk Management
Committee of the Board which meets regularly. Risk Management Committees at Operational unit and Business unit level
are also in place.
In achieving the objective of risk minimization in its overall business strategy, a Board integrated and top executive integrated
risk management committee has been constituted at next page:
BOARD’S RISK
MANAGEMENT COMMITTEE
RISK MANAGEMENT COMMITTEE

AT MANAGEMENT LEVEL
Internal
Asset Liability Foreign Anti Money
Credit Risk Control and ICT Risk
Risk Exchange Risk Laundering Risk
Management Compliance Risk Management
Management Management Management
Committee Management Committee
Committee Committee Committee
Committee
Risk Management Division

As per BB’s instruction SBL has reformed its risk management division in following structure:
CHIEF RISK OFFICER (CRO)

(DMD)
HEAD OF DIVISION
(DGM)
CRM Capital ALM ICC Stress AML ICT FX

Desk Management Desk Desk Test Desk Desk Desk
Desk Desk
B. Risk Appetite
Effective risk management requires clear articulation of the Bank’s risk appetite and how the Bank’s risk profile will be
managed in relation to that appetite. SBL started preparing its risk appetite statement from 2016 as per Bangladesh Bank’s
guideline. The Bank’s Risk Appetite Framework consists of a risk capacity, risk appetite statement and key risk appetite
measures. Together, application of the risk appetite statement and monitoring of the key risk appetite measures help to
ensure the Bank stays within appropriate risk boundaries. The Bank’s Credit Risk Appetite further defines the Bank’s risk
appetite with respect to lending, counter-party credit risk, and other credit risks (such as investments).

The Bank’s Risk Appetite Framework combines qualitative and quantitative terms
Key Risk
of reference to guide the Bank in determining the amount and types of risk Appetite
Measures
it wishes to prudently undertake in pursuing the Bank’s strategic and financial
objectives. Key risk appetite measures provide clear idea of risk tolerance and risk
limits, which are critical in implementing effective risk management. For major Risk
Appetite
risks (credit, market, liquidity, and operational), the key risk appetite measures are
supported by management level limit structures and controls. Management’s Risk Risk
Capacity Appetite
dedicated attention to these risks creates a focus on forwardlooking activities Statement
that keeps the Bank within its risk appetite on an on-going basis.
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 Policies

& Standards & Limits
RISK MANAGEMENT
TOOLS
Measurment, Monitoring Stress Testing,
and Reporting RMP,CRMR
Policies, Procedures and Limit Structure of SBL

Risk Management policies, procedures and limits are properly documented;
Policies are reviewed annually or on demand basis;
All policies and procedures are duly approved by the Board of Directors;
Policies are assigned with full accountability and clear lines of authority for each activity and product area;
A compliance monitoring procedure has been deployed for all policies;
An independent internal control unit has been formed in SBL to check internal compliance;
Provide a comprehensive Bank wide view of risks across at material risk types.
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 Managing Director & 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 Bank to identify and measure all quantifiable and material risk
factors;
SBL has a separate Management Information Systems (MIS) Division which provides necessary information to Risk
Management Division and Senior Management for understanding the bank’s position and risk exposure in time;
158
RISK MANAGEMENT
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 Central Bank
RISK Reporting
REPORTING to Board of Directors
Reporting
to Management
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.
Capital Adequacy as on 31 December 2018 (Tk. in million)

Required CRAR 10% of RWA
Risk Weighted Asset 530878.60
Minimum Capital Requirement 53087.86
Capital maintained 53616.77
Capital Surplus 528.91
Present CRAR 10.10%
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.
Analysis of Stress Testing Result as on 31 December 2018 (Tk. in million)

After Moderate
Individuals Shock After Minor Shock After Major Shock
Shock
Performing loan directly downgraded to B/L:
1 10.40 9.92 9.80
Sectoral Concentration 1
Increase in NPLs due to default of Top large
2 10.10 9.76 9.46
borrowers
3 Increase in NPLs 9.11 6.84 3.73
4 Interest Rate 7.69 5.29 2.88
5 FEX: Currency Appreciation 9.96 9.82 9.68
6 Equity Shock 8.91 7.68 5.13

Comprehensive risk management report (CRMR) is prepared on half yearly basis to record 81 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.
Mitigation Measures:
A. Policy Guidelines
Lending Guidelines
Credit Assessment and Risk Grading
Approval Authority
Segregation of Duties
Internal Audit
B. Preferred Organizational Structure
SBL has decentralized credit risk management system. Based on delegation of powr the following authority plays role in
this regard.
Role of the Board of Directors

Role of Senior Management
Role of the Credit Risk Management Committee
Organizational Structure of Credit Officials
C. Procedural Guideline
Credit Administration
Credit Monitoring
Credit Recovery
Procedural Guideline-Credit Administration

Disbursement
Custodial Duties
Compliance Requirements
Procedural Guideline-Credit Monitoring

To minimize credit losses, monitoring procedures and Early Alert Process are in place that provide in early inductions of the
deteriorating financial health of a borrower.
Procedural Guideline-Credit Recovery

NPL Account Management
Account Transfer Procedures
NPL Monitoring
NPL Provisioning and Write Off
Problem Loan Management
Repossession and disposition of collateral
Other Regulations of BB Relating to Credit Risk

Policy on Loan Classifications
Policy on Single Borrower Exposure
Policy For Rescheduling of Loans
Policy For Loan Write Off
160
RISK MANAGEMENT
Guidelines on Managing Core Risk in Banking

Guidelines on Environmental Risk Management
Restrictions on Lending to Directors of Private Banks
Implementation of Credit Risk Grading Manual
Prudential Guidelines for Consumer Financing and Small Enterprise Financing
Green Banking
Asset-Liability Risk
ALM is a process to manage the composition and pricing of the assets, liabilities and off balance sheet items and 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. It has evolved in response to the problems of banks dealing in a wide range of
diversified assets, liabilities and contingent liabilities in times of volatile interest rates and more generally a continuously
changing economic environment. ALM programs focus on interest rate risk, liquidity risk and foreign exchange risk as those
represent the most prominent risks and may affect the overall balance-sheet of the organization. Individual risk mitigation
methodology is discussed hereinafter.
ALCO STRATEGIC & BUSINESS RISK
The responsibility of Asset Liability Management is assigned to the Treasury LIQUIDITY RISK
Management Division of this Bank. Specifically, the balance sheet used
REPUTATION & BEHAVIORAL RISKS
to manage by the Asset Liability Management (ALM) desk which has
STRATEGIC & BUSINESS RISK

established on the Treasury Division. Credit &
Counterparty
Operational
Risk & AML
Risk or CFT
C A P I TA
Market Risk:
Interest Foreign
CO
Rate Exchange
Market risk is the potential of losses to income or the value of asset, liabilities Risk Rate Risk
LA
VE
NA
and equity arising from changes in market prices. Such market prices may
DE
Q REPUTATION & BEHAVIORAL RISKS NT
UA RIS
include reference Interest rates, Foreign Exchange rates, Traded Prices of CY K
R IS
K
Equity Shares and other commodities etc.
Liquidity Risk:
It generates from the failure or inability to meet current and future financial obligations by bank due to shortfall of cash or
cash equivalent assets. Banks are exposed to liquidity risk where the more liquidity is generated, the greater are the possibility
and severity of losses associated with having to dispose of illiquid assets to meet the liquidity demands of depositors.
However besides depositor, revealed that banks that make commitments to lend are exposed to the risk of unexpected
liquidity demands from their borrowers.
Statutory liquidity ratio of SBL

Structural Liquidity Profile
Particulars Dec- 2017 Dec- 2018
Required 6.50% 5.50%
CRR Particulars Dec’17 Dec’18 Ideal Scenario
Maintained 7.16% 7.40%
Required 13.00% 13.00% LDR 39.49% 41.89% 82%-85%
SLR
Maintained 43.65% 38.89% MCO 19.08% 10.77% 20%
Interest Rate Risk

Interest Rate Risk is the danger of an adverse impact on net income and on the value of assets and liabilities in response to
changes in the prevailing interest rate levels in the market.
The most important drivers of loss are i. Reprising risk which occurs via lining differences in the maturity (for fixed rate)
and reprising of assets and liabilities (for floating rate) and ii. Basis Risks, which stems from the imperfect correlation in the
adjustment of the rates earned and paid on different instruments with otherwise similar reprising characteristics.
Equity Price Risk Management

Equity price risk is the risk of loss in value of the Banks equity investments and / or equity derivative instruments arising out
of a change in equity prices. SBLs equity investment activities like holding limit of shares, provision against them and risk
management are guided as per Bangladesh Bank policy.
Foreign Exchange Risk

The risk of an investment’s value changing due to changes in currency exchanges rate. The risks that an investor will have
to close out a long or short position in a foreign currency at a loss due to an adverse movement in exchange rates also
known as “currency risk” or “exchange-rate risk”. The Bank has Foreign Exchange Risk management policies approved by the

Board of Directors. Treasury management division is carrying out treasury operations in accordance with the policies and
procedures and effective risk management framework. The Front office, Mid office and Back office have been segregated
as per the Bank policy. Mid office which is independent of risk taking unit, is responsible for risk management, monitoring,
internal controls and management reporting.
The Mid office revalues all Nostro and Vostro balances at current market rates on the last working day of each month to
monitor risk levels of the Bank.The management reports generally contain the following information:
i) Foreign exchange risk exposures;

ii) Information on adherence to policies and limits;
iii) Findings of risk reviews on foreign exchange risk policies and procedures.
The mid office conducts reviews of internal control and risk management process to ensure its integrity, accuracy and
reasonableness and is responsible for the following works related to both internal and external audits.
i) Making all out efforts to get all the audit objections settled within specified time;
ii) Preparing the compliance report and forwarding the same to audit teams.
The following measures have been taken to control foreign exchange risks:
i) Set counterparty limit (Revised on 27.04.2014)

ii) Set limit for open position
iii) Monitor market movements
iii) Timely reconciliation
iv) Imposed Dealer’s dealing limits- Intra-day limit, per deal limit, stop loss limit per day, loss limit per deal.
v) Concurrent auditor has been posted to oversee day to day treasury operations;
vi) Introduction of verification system for payment instruction (PI) through SWIFT message MT 202 and MT 740
vii) Reports prepared by the front office regarding Foreign Exchange deal containing information of Blotter Size Limit, Deal
Amount (Currency wise), Gross Profit, Net Profit and Limit Breach has presented to the higher authority on daily basis.
Anti-Money Laundering Risk (AML):

It arises from the practice of disguising the origins of illegally- obtained money (drug dealing, corruption, accounting fraud
and other types of fraud, and tax evasion etc.) through banking channel and the proceeds of crime are made to appear
legitimate. SBL has fully confirmed the above issues. In order to mitigate money laundering risk, SBL has assigned CAMLCO
in its head office and BAMLCO in all branches.
The following major issues that bank have been incorporated in the respective policy and followed them to mitigate money
laundering risk:
Bank has developed, administered, and maintained an anti-money-laundering compliance policy.

The policies have been tailored to the institution and based upon an assessment of the money laundering risks.
The policy address its know your customer (KYC) policy and identification procedures before opening new accounts,
monitoring existing accounts for unusual or suspicious activities.
It also includes a description of the roles and responsibilities of the anti-money laundering compliance
officers(s)/unit and other appropriate personnel will play in monitoring compliance with and effectiveness of money
laundering policies and procedures.
There is a monitoring unit to monitor unusual/suspicious transaction which needs to be reported to
Bangladesh Bank.
Cash transaction report (CTR) is being sent to Bangladesh Bank on monthly basis for cash transaction of 1.00 million or
above in a day.
During inspection the branches, the auditors report provided by BB about strengthening the on-site and off-site
supervision relating to prevent money laundering and terrorist financing.
Internal Control and Compliance (ICC) Risk :

Our management of operational risk and compliance obligations has not kept pace with increasing demands. A good risk
culture is one where risk management is everyone’s job. We will preserve the customer orientation of our culture, but apply
lessons from best-in-class organisations that have built strong operational risk cultures.
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RISK MANAGEMENT
We will do what it takes to fix the root causes of issues, including governance, capability, culture and investment. Bank has
introduced risk registrar for ancipating the risky issues earlier.
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.
Information and Communication Technology (ICT) Risk :

SBL has formulated the ICT policy to use as a minimum requirement and as appropriate to the level of its IT operation.
The guidelines includes IT security policy, physical security policy, password policy, anti-virus policy, server security policy,
IT assets administration and management policy, disaster management policy and system audit policy. SBL has adopted
sufficient measures to protect the safety and security of information and communication platform from unauthorized
access, modification, virus, disclosure, cyber security and destruction in order to ensure business continuity, data safety and
security thereby protecting customers’ interest at large. SBL has appointed Chief Information Technology Officer (CITO) for
managing 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 risk areas describing in the next page:
Sl. Types of Risks Risk Area
1 Residual Risk Error in documentation; Error in valuation of collateral
2 Evaluation of Core Risk Management Ratings of Core Risks implementation
3 Credit Concentration Risk Credit Concentration Risk; Market Concentration Risk

Cash Reserve Ratio (CRR); Statutory Liquidity Ratio (SLR); Medium
4 Liquidity Risk 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
6 Settlement Risk Issues of foreign trade settlement; All types of receivables
CAMELS rating; Operating expenses; Classified loans ratio; Recovery
7 Strategic Risk 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.

DISCLOSURE ON RISK
BASED CAPITAL
UNDER BASEL III
BASEL III & Market Discipline a) Scope of application

Qualitative Disclosures
(a) Sonali Bank Limited, 100% state owned commercial

Bank manages its risk and maintains risk based capital
following the guidelines of Bangladesh Bank.
(b) Capital to Risk-weighted Assets Ratio (CRAR) report of

Sonali Bank Limited 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

The purpose of Market discipline in the Revised Capital bank and its subsidiary companies.
adequacy Framework is to complement the minimum
capital requirements and the supervisory review process. Sonali Bank’s subsidiary companies are as under:
The aim of introducing Market discipline in the revised 1) Sonali Investment Limited, a entirely owned
framework is to establish more transparent and more subsidiary in Dhaka, Bangladesh.
disciplined financial market so that stakeholders can
2) Sonali Exchange co. Inc. (SECI), a entirely owned
assess the position of the bank regarding holding of assets
subsidiary in USA.
and to identify the risks relating to the assets and capital
adequacy to meet probable loss of assets. The reports are Sonali Bank’s associates companies are as under:
purported to affirm the information on Minimum Capital
1) Sonali Bank (UK) Limited, 51% share capital of the
Requirement (MCR) under pillar-I and Supervisory Review
company is held by the Government of the People’s
Process (SRP) under pillar-II and ensure transparency
Republic of Bangladesh and the remaining 49% shares
about the capital adequacy framework, risk assessment hold by Sonali Bank Limited. It is operating in London
and mitigation methodologies, risk exposure in various and Birmingham.
spectrum so that the stakeholders of the industry can
2) Sonali Polaris FT Limited, The ownership of the
examine the risk related compliance of the Bank.
company having 51% share capital in favor of Polaries
In a nutshell the purpose of this Disclosure Report is to Financial Technologies Ltd., India, 39% by Sonali Bank
set out how Sonali Bank Limited complies with the Pillar- Limited and remaining 10% by Bangladesh Commerce
III requirements under Basel-III. The following detailed Bank Limited. It is operating in Dhaka, Bangladesh.
qualitative and quantitative disclosures are prepared (c) Sonali Bank Limited transfers funds or regulatory
in accordance with guidelines on Risk Based Capital capital within the group (subsidiaries & associate) as
Adequacy (Basel-III) framework by Bangladesh Bank on per Banking rules and regulations with the approval of
December 2014. the Board / Competent Authority.
164
BASEL III & MARKET DISCIPLINE
Quantitative Disclosures Tier 2 Capital (Gone Concern Capital) :
(d) The following subsidiaries & associates General provision: As per Bangladesh Bank directive,
(Tk. in
has included their financial activities amount of provision maintained by Bank.
Crore)
and their aggregate capital is as under:
Revaluation reserves of Assets, HTM securities & HFT
Sonali Investment Limited 200.00 securities: As per Bangladesh Bank’s instruction, until 31
December 2014, 50%, 50% & 10% of revaluation reserve
Sonali Exchange co. Inc. (SECI) 7.97 respectively of Banks Assets, HTM securities & HFT
securities has been considered. Revaluation Reserve (RR)
Sonali Bank (UK) Limited 310.43 based on the position as of 31 December 2014 will be
adjusted @ 20% on yearly basis from 2015 to 2019 under
Sonali Polaris FT Limited 2.63 Basel III guideline.
Quantitative Disclosures
b) Capital structure
(b) Regulatory Capital of Sonali Bank Limited on the basis
Qualitative Disclosures of Audited Balance Sheet of 31st December 2018 has
been calculated as per Basel-III guidelines on ‘Solo’
(a) The regulatory capital under Basel-III is composed of
basis as well as ‘Consolidated’ basis as shown below.
(I) Tier-1 (Going- concern Capital) and (II) Tier-2 (Gone-
concern Capital). From regulatory capital perspective,
Regulatory Capital (Tk. in Crore)
going-concern capital is the capital which can
absorb losses without triggering bankruptcy of the Common Equity Tier1 Capital
Solo Conso
Bank and gone- concern capital is the capital which (Going Concern Capital) :
will absorb losses only in a situation of liquidation of
Paid up capital 4530.00 4530.00
the Bank.
In terms of Section 13 of the Bank Company Act, 1991 Statutory reserve 1145.00 1145.00
(Amended upto 2013), the terms and conditions of
the main features of all capital instruments have been General reserve 11.70 11.70
segregated in terms of the eligibility criteria set forth vide
BRPD Circular No. 18 dated 21 December 2014 [Guidelines Retained earnings (1345.79) (1358.59)
on Risk Based Capital Adequacy (Revised Regulatory
Capital Framework for Banks in line with Basel III)] and
Total of Tier 1 capital [A] 4340.91 4328.11
other relevant instructions given by Bangladesh Bank from
time to time. The main features of the capital instruments
Additional Tier 1 (AT1) capital [B] - -
are as follows:
Tier-2 Capital
Common Equity Tier 1 (CET1) Capital (Going (Gone Concern Capital)
Solo Conso
Concern Capital): General provision against unclassified
loans and off-balance 760.60 760.60
Paid-up share capital: Issued, subscribed and fully paid up sheet exposures
share capital of the Bank. Revaluation Reserves as on 31
December 2014 (50% of Fixed Assets 1300.84 1300.84
Statutory reserve: As per Section 24 of the Bank Company and Securities & 10% of Equities)
Act, 1991 (Amended up to 2013), an amount equivalent to
Total of Tier 2 capital [C] 2061.44 2061.44
20% of the profit before taxes for each year of the Bank
has been transferred to the Statutory Reserve Fund. Regulatory Adjustments/Deductions
Solo Conso
from Capital.
General Reserve: General reserve created out of profit. Revaluation Reserves for Fixed Assets,
Securities (80% for the year 2018) 1040.67 1040.67
Retained earnings: Amount of profit retained with the from Tier 2 capital
banking company after meeting up all expenses, provisions
Total of Deduction [D] 1040.67 1040.67
and appropriations.
Additional Tier 1 (AT1) capital: There is no Additional Tier- Total eligible capital [A+B+C-D] 5361.68 5348.88
1 capital instrument at this moment.

Solo Tier 1 Conlolidated Tier 1

16% 16%
0% 0%
65% 19% 64% 18%
34%
Statutory Reserve General Reserve Retained earnings Fully Paid up Capital Statutory Reserve General Reserve Retained earnings Fully Paid up Capital
Tier 2 Capital Comparison of Capital Tk. in Crore

Tier 1 Tier 2
4328.11
4340.91
64% 16%
1020.77
1020.77
Revaluation Reserve General Provision
Solo Conso
C) Capital Adequacy Common Equity Tier-I (CET-1) and Minimum Tier-1 Ratio
to RWA ratio including Capital Conservation Buffer for
Qualitative Disclosures ‘solo’ is 8.18% as well as ‘consolidated’ is 8.15% against
the minimum regulatory requirement of 4.50% and
The Bank assesses the adequacy of its capital in terms of
6.00% respectively. Tier-2 ratio for ‘solo’ is 1.92% as well
Section 13 (1) of the Bank Company Act, 1991 (Amended
as ‘consolidated’ is 1.92%. Maximum limit of Tier-2 Capital
up to 2013) and instruction contained in BRPD Circular
(Tier-2 capital can be maximum up to 4% of the total RWA
No. 18 dated 21 December 2014 [Guidelines on ‘Risk
or 88.89% of CET1, whichever is higher).
Based Capital Adequacy for Banks’ (Revised regulatory
capital framework in line with Basel III)]. Capital Conservation Buffer for the year 2018 is 0.10% as
‘solo’ and 0.07% as ‘consolidated’.
However, in terms of the regulatory guidelines, the Bank
computes the capital charge / requirement as under: Quantitative Disclosures
(Tk. in Crore)
i. Credit risk : On the basis of Standardized Approach;
Solo Consolidated
ii. Market risk : On the basis of Standardized Approach;
and Capital Requirement for Credit Risk 3988.64 3985.30
iii. Operational risk: On the basis of Basic Indicator Capital Requirement for Market Risk 670.72 671.09
Approach. Capital Requirement for
649.42 653.35
Operational Risk
Sonali Bank Limited is very much aware of maintaining
Capital to Risk Weighted Assets
Capital to support its current and future activities inview to 10.10% 10.07%
Ratio (CRAR)
this objective. Five year capital growth plan up to 2019 was
prepared for this purpose. Common Equity Tier-1 to RWA Ratio 8.18% 8.15%
Tier-1 Capital to RWA Ratio 8.18% 8.15%
The Bank has maintained Capital to Risk-weighted Assets
Ratio (CRAR) of 31 December 2018 on the basis of ‘solo’ Tier-2 Capital to RWA Ratio 1.92% 1.92%
and ‘Consolidated’ which is 10.10% and 10.07% respectively Capital Conservation Buffer 0.10% 0.07%
as against the minimum regulatory requirement of 10%.
This has been calculated considering forbearance allowed Available Capital under Pillar 2
411.37 411.37
Requirement
by Bangladesh Bank.
166
Capital Requirement under Pillar 1 Classification

Period for
SL Types of Loans Classification
12% Status
(past due)
SMA 2 Month
Fixed Term Loan
(Which are
SS 3 Month
13% repayable
3
under a specific
75% DF 6 Month
repayment
schedule)
BL 9 Month
SMA 2 Month
Fixed Term Loan
SS 6 Month
(Loan amount
4
below Tk. 0.10
Credit Risk Market Risk Operational Risk DF 9 Month
Crore)
d) Credit Risk BL 12 Month
Qualitative Disclosures SMA -
Credit risk is the potential loss that may arise from a
Short Term SS 12 Month
borrower’s failure to repay a loan or meet its obligation 5 Aricultural &
in accordance with agreed term. Banks are very much Micro Credit DF 36 Month
prone to credit risk due to its core activities i.e. lending to
corporate, SME, individual, another bank/ FI. BL 60 Month
As per relevant Bangladesh Bank guidelines, the Bank

(ii) Approaches followed for specific and
defines the past due and impaired loans and advances
for strengthening the credit discipline and mitigating the general allowances:
credit risk of the Bank. The impaired loans and advances
are defined on the basis of (i) Objective / Quantitative Unclassified Classified
Criteria and (ii) Qualitative judgment. For this purposes, all
Types of Loans &
loans and advances are grouped into four (4) categories Standard SMA SS DF BL
Advances
namely- (a) Continuous Loan (b) Demand Loan (c) Fixed
Short Term
Term Loan and (d) Short-term Agricultural & Micro Credit. Agriculture & Micro 1% - 5% 5% 100%
Credit
According to the instructions of Bangladesh Bank, all
Loans & Advances are classified into four segments. These Consumer

Financing
are:
Other than
1. Special Mention Account (SMA) Housing Finance &
Loans 5% 5% 20% 50% 100%
2. Substandard (SS)
to Professionals to
3. Doubtful (DF) setup business
4. Bad / loss (BL) Housing Finance 1% 1% 20% 50% 100%
Sonali Bank follows strictly all the regulations provided by Loans to
Bangladesh Bank while calculating the above. Professionals to 2% 2% 20% 50% 100%
setup business
Period for Small & Medium
Classification
SL Types of Loans Classification Enterprise 0.25% 0.25% 20% 50% 100%
Status
(past due) Financing
SMA 2 Month Loans to Brokerage
Continuius Loan House/ Merchant
(Overdraft, Cash SS 3 Month 2% 2% 20% 50% 100%
Bank/ Stock
1 Credit-Hypo, Dealers
Cash Credit- DF 6 Month
Pledge etc) All other Credit 1% 1% 20% 50% 100%
BL 9 Month
SMA 2 Month Mentionable that, all interest accrued is credited to interest

Demand Loan
(Overdraft, Cash SS 3 Month suspense account instead of crediting the same to income
2 Credit-Hypo,
DF 6 Month
account if the loan is classified as sub-standard and
Cash Credit-
Pledge etc) doubtful. However, charging of interest is discontinued
BL 9 Month
when the loan is classified as bad/loss.

Credit Risk of credit exposures, single borrower exposures limit, large

loan portfolio ceiling as stipulated by Bangladesh Bank,
(iii) Discussion of the Bank’s credit risk management improving the asset quality, conducting credit rating of the
policy: borrowers to minimize the capital charge against credit
risk of the Bank. Adequate provision is maintained against
The salient features of SBL credit risk management policy
classified loans as per Bangladesh Bank Guidelines. Status
and procedures are as under:
of loans is regularly reported to the Board of Directors/
Credit policy approved by the Board: The Board Risk Management Committee of the Board.
approves the Credit Risk Management Policy of
SBL for ensuring the best practice in credit risk
management and maintaining quality of assets. Sonali Bank Limited has its own Credit Risk Management
The credit policy/manual has been put in place in guideline in terms of Core Risks Management guidelines of
compliance with Bangladesh Bank’s guidelines on Bangladesh Bank. The Bank also follows other instructions/
credit risk management and other rules & regulations guidelines of Bangladesh Bank in this regard. Sonali Bank
circulated by BB from time to time. Limited constantly monitors, reviews and analyses its credit
portfolio with a view to improving ability of credit portfolio,
Credit approval is delegated properly: Authorities
minimizing potential losses and ensuring efficient credit
are properly delegated ensuring check and balance in
process.
credit operation at every stage i.e. screening, assessing
risk, identification, management and mitigation of To manage the Non-Performing Loans (NPL), Sonali Bank
credit risk as well as monitoring, supervision and Limited has a comprehensive remedial management
recovery of loans with provision for early warning policy, which includes a framework of controls to identify
system. weak credits and monitoring of these accounts constantly.
Independent credit risk Management Division: Credit Risk
There is an independent Credit Division (Credit Risk
Management Division) to assess credit risks and (b) Total gross credit risk exposures broken down by
suggest the mitigation procedures & techniques while major types of credit exposure.
processing the credit proposals by the Corporate
((Tk. in Crore))
Banking Division for approval.
On Balance Sheet Solo Consolidated
Separate credit Administration Division: A separate Cash Credit General (Hypo) 966.60 966.60
credit administration division confirms that perfected
security documents are in place before disbursement. Cash Credit General (Pledge) 1603.17 1603.17
SBL is continuing a unique process of rechecking Packing Cash Credit 460.31 460.31
security documentation by a second legal advisor Overdrafts Loan 2379.02 2379.02
other than the lawyer who vetted it originally. Demand Loan 3.76 3.76
Independent credit Monitoring & recovery Small Loan 11.71 11.71
Division and Management recovery committee: An General House Building Loan 263.80 263.80
independent and fully dedicated Credit Monitoring
Staff House Building Loan 5864.98 5864.98
& Recovery Division monitors the performance and
recovery of loans, identify early signs of delinquencies Staff Loan 388.63 388.63
in portfolio and take corrective measures including Special Loan Programme 3.18 3.18
legal actions to mitigate risks, improve loan quality Loan under SB Industrial Credit
3573.25 3573.25
and to ensure timely recovery of loans. Scheme
Loan under External Credit
Credit operations are subject to independent 8.63 8.63
Program
internal Audit: Internal Control & Compliance Division Working Capital to Industries
3218.09 3218.09
independently verifies and ensures, at least once in a (Hypo)
year, compliance with approved lending guidelines, Working Capital to Industries
271.61 271.61
Bangladesh Bank guidelines, operational procedures, (Pledge)
and adequacy of internal control, documentation and Sonali Credit 12.02 12.02
overall Credit Risk Management System. Loan Under SB Agro Based
1345.21 1345.21
Industrial Scheme
Reporting to Board/ executive committee/ Working Capital to Agro Based
1051.71 1051.71
risk Management committee: Overall quality, Industry (Hypo)
performance, recovery status, risks status, adequacy Working Capital to Agro Based
758.73 758.73
of provision of loan portfolio are regularly reported Industry (Pledge)
to the Board of Directors/ Executive Committee/ Risk Agricultural Loan 4732.55 4732.55
Management Committee of the Board for information Micro Credit 1219.12 1219.12
and guidance. LIM (Loan Against Imported
234.15 234.15
Merchandise)
Above all, the Risk Management Division is regularly guiding
LTR (Loan Against Trust
the Credit Risk Management Division (s) on increasing the Receipt)
4314.87 4314.87
collateral coverage, product/sector specific diversification
168
On Balance Sheet Solo Consolidated Division wise Loans & Advances

1%
Forced Loan 2416.50 2416.50 9% Dhaka-1 Division
Loan for L/C under WES 0.01 0.01 7% Dhaka-2 Division
Loan against Inland Bills 44.30 44.30 Barisal Division

6%
Current Account Barter (Debit Chittagong Division
93.26 93.26
Balance) Comilla Division
51%
Bridge Finance 303.90 303.90 9% Faridpur Division
Small Business Loan Sceme 162.68 162.68 Khulna Division
4% Mymensingh Division
Lease Finance 9.46 9.46
4% Rajshahi Division
Consumer Loan 4707.23 4707.23 6% Rangpur Division
Term Loan to Freedom Fighter 1847.00 1847.00 3%
Foreign Education Loan
0.08 0.08
Program (d) Industry or counterparty type distribution of exposures,
SME Finance (Term Loan broken down by major types of credit exposure.
52.80 52.80
Service)
SME Finance (Term Loan to Industry Name Solo Consolidated
10.03 10.03
Industries)
Agricultural / Rural Credit 4728.00 4728.00
SME Finance (Working Capital
2010.19 2010.19 Micro Credit 1220.00 1220.00
Wind)
Bills Discounted and Industrial Credit 7104.00 7104.00
1215.76 1215.76
Purchased Agro-based Industrial Credit 3156.00 3156.00
Special Loan-Advance Rent
7.07 7.07 International Trade 7831.00 7831.00
(Interest Bearing)
Term Loan to Banks & NBFIs 200.00 200.00 SME Finance 5049.00 5049.00
Forced Loan A/C EDF 50.23 50.23 General Advance & Others 17320.63 17543.99
Rural Housing Finance-Sonali Total 46408.63 46631.99
1.92 1.92
Neer A/C
Loan against Food
590.81 590.81
Procurement Bill A/C Industry wise Loans & Advances
Portfolio Loan to Investors - 223.66
10%
Total 46408.33 46631.99 3%
Off-Balance Sheet Exposure Solo Consolidated Agricultural / Rural
Credit
Letter of Guarantee 588.34 588.34 15% Micro Credit

37%
Irrevocable Letters of Credit 108443.18 108443.18 Industrial Credit
Bills for Collection 705.66 705.66 Agro-based Industrial

7% Credit
Total 109737.18 109737.18 International Trade
Credit Risk 11% 17%
(c) Geographical distribution of exposures, broken down

in significant areas by major types of credit exposure. (e) Residual contractual maturity breakdown of the whole
portfolio, broken down by major types of credit exposure.
Inside Bangladesh Solo Consolidated
Dhaka-1 Division 18788.91 19012.57 Industry Name Solo Consolidated
Dhaka-2 Division 4944.27 4944.27 On demand 2986.60 2986.60
Not more than 3 months 1153.58 1153.58
Barisal Division 1266.40 1266.40
More than 3 months but not
Chittagong Division 2632.19 2632.19 17148.67 17372.33
more than 1 year
Comilla Division 1821.84 1821.84 More than 1 year but not more
11144.18 11144.18
than 5 years
Faridpur Division 1802.30 1802.30
More than 5 years 12759.54 12759.54
Khulna Division 4324.75 4324.75 Total 45192.57 45416.23
Mymensingh Division 2722.58 2722.58 Bills purchased and discounted
Rajshahi Division 3273.32 3273.32 Not more than 1 month 747.75 747.75
More than 1 month but not
Rangpur Division 4044.64 4044.64 216.49 216.49
more than 3 months
Sylhet Division 750.81 750.81 More than 3 months but not
159.50 159.50
Outside Bangladesh more than 6 months
More than 6 months 92.02 92.02
Kolkata & Siliguri 36.32 36.32
Total 1215.76 1215.76

Credit Risk Credit Risk

(f) Major counter party wise amount of impaired loans g) Movement of NPA and Provisions
Loans and advances on In response to Bank request regarding fill up of capital

the basis of significant shortfall, Bangladesh Bank waived the Bank from
Solo Conso
concentration including bills reservation of required provision against unclassified
purchased and discounted and classified loans & advances including writ and from
Advances to allied concerns of adjustment of deferred tax assets against Common
- -
Directors Equity Tier-1 (CET-1) capital through letter vide no-
Advances to Managing BRPD(P-1)661/13)/2019-3336 dated 29 April 2019 for the
Directors and other Senior 0.64 0.64 year 2018.
Executives
Advances to customer Solo Consolidated
group(amounting more than 8818.69 8818.69
10% of banks total capital) Gross Non Performing Assets
12188.34 12188.34
(NPAs)
Other customers 31335.39 31559.05
Non Performing Assets (NPAs)
Advance to staff 6253.61 6253.61 to Outstanding Loans & 26.26% 26.14%
Total 46408.33 46631.99 advances
Movement of Non Performing
Sector wise loans and Assets (NPAs) (Loans &
Solo Conso advances)
advances
Government 550.31 550.31 Opening balance 14930.24 14930.24
Other Public 7271.81 7271.81 Additions 933.82 933.82
Private 38586.21 38809.87 Reductions 3675.72 3675.72
Total 46408.33 46631.99 Closing balance 12188.34 12188.34
Government Movement of specific
Unclassified 313.53 313.53 provisions for NPAs (Loans &
Classified 236.78 236.78 advances)
Sub Total 550.31 550.31 Opening balance 3886.42 3886.42
Other public Provisions made during the
539.57 539.57
Unclassified 7210.14 7210.14 period
Classified 61.67 61.67 write-off 30.36 30.36
Sub Total 7271.81 7271.81 Write-back of excess
8.96 8.96
provisions
Private
Closing balance 4404.59 4404.59
Unclassified 26791.28 27014.94
Classified 11794.93 11794.93 e) Equities : Disclosures for Banking Book
Sub Total 38586.21 38809.87 Positions
Classification wise loan-advs.
and Provision The major portion of the Bank’s holding of equity
Standard 31598.60 31822.26 exposure is mainly with the purpose of capital gain. The
Special Mention Account (SMA) 2621.39 2621.39 quoted shares are valued both at cost price and market
price basis. However, the un-quoted shares are valued at
Sub Total 34219.99 34443.65
their cost price.
Classified
Substandard (SS) 805.08 805.08 Qualitative Disclosures
Doubtful (DF) 389.74 389.74
(a) “Solo Basis” the Bank has equity exposure in Banking
Bad and Loss (BL) 10993.52 10993.52
Book consisting of listed shares of 124 companies and
Sub Total 12188.34 12188.34 unlisted shares of 12 companies.
Sector wise Loans and Advances “Consolidated Basis” the Bank has equity exposure in
Banking Book consisting of listed shares of 192 companies
16% and unlisted shares of 12 companies.
1%
Market value of allotted securities has been determined on
Government the basis of the value of securities at the last trading day
Other Public of the year. The non-listed investments in securities are
85% shown at cost.
Private
(b) Value disclosed in the balance sheet of investments,
as well as the fair value of those equity at cost price and
market price have been disclosed as under:
170
(Rate Sensitive Assets & Rate Sensitive Liabilities) as on 31 December 2018

8 days- 3-12 More than
Particulars TOTAL Call 2-7 days 1-3 Month 1-5 Years
1 Month Months 5 years
Term Deposits with Bank
8,491.52 0.00 77.00 567.00 2,747.00 3,332.00 1,754.00 14.52
& NBFI
Money at Call & Short
1,972.32 1,972.32 0.00 0.00 0.00 0.00 0.00 0.00
Notice
Investment in Govt.-
37,625.97 299.89 162.17 69.98 1,399.22 3,460.67 16,572.76 15,661.28
Securities
Other Investments 6,831.74 0.00 0.00 0.00 0.00 1,587.96 1,676.79 3,566.99
Loans and Advances* 37,758.85 157.89 594.34 2,329.73 7,436.33 9,518.55 12,850.79 4,871.22
Bills Purchased &
1,201.39 12.67 56.41 361.10 771.21 0.00 0.00 0.00
discounted
Reverse REPO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total RSA 93,881.79 2,442.77 889.92 3,327.81 12,353.76 17,899.18 32,854.34 24,114.01

Borrowings: From
(434.88) 0.00 0.00 0.00 0.00 0.00 (368.96) (65.92)
Bangladesh Bank
Money at Call & Short
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Notice
Deposits** (85,765.85) (3,602.94) (971.69) (3,807.88) (18,838.71) (29,437.38) (19,811.06) (9,296.19)
REPO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total RSL (86,200.73) (3,602.94) (971.69) (3,807.88) (18,838.71) (29,437.38) (20,180.02) (9,362.11)

NET MISMATCH 7681.06 (1160.17) (81.77) (480.07) (6484.95) (11538.20) 12674.32 14751.90
CUMULATIVE NET
(1160.17) (1241.94) (1722.01) (8206.96) (19745.16) (7070.84) 7681.06
MISMATCH
* Excluding provision for Non Performing Loans of Tk. 3,865.02 crore and Interest Suspense of Tk. 3,515.55 crore.
** Excluding non interest bearing demand deposits of Tk. 24,184.45 crore.
g) Market risk As per relevant Bangladesh Bank guidelines, Standardized

Approach has been used to measure the Market Risk for
Market risk arises due to changes in the market capital requirement for trading book of the Bank. The
variables such as interest rates, foreign currency total capital requirement in respect of market risk is the
exchange rates, equity prices and commodity prices. aggregate capital requirement calculated for each of
The financial instruments that are held with trading intent the risk sub-categories. For each risk category minimum
or to hedge against various risks, are purchased to make capital requirement is measured in terms of two separately
profit from spreads between the bid and ask price are calculated capital charges for “specific risk” and “general
subject to market risk. SBL is exposed to market risk market risk” as under:
mostly stemming from Government Treasury Bills and
Bonds, Shares of listed Public Limited Companies, Capital charged For Market risk
foreign currency etc. Component of
Market risk General Market Specific Market
Qualitative Disclosures risk risk
(i) Views of Board of Directors (BOD) on trading / Interest Rate Risk Applied -
investment activities Equity Price Risk Applied Applied
The Board approves all policies related to market risk, Foreign Exchange
Applied -
set limits and reviews compliance on a regular basis. The Risk
objective is to provide cost effective funding to finance Commodities
N/A
assets growth and trade related transactions. The market Price Risk
risk covers the followings risks of the Bank’s balance sheet: (iii) Market risk management system
i) Interest rate risk; The Treasury Division of the Bank manages market risk
ii) Equity price risk; covering liquidity, interest rate and foreign exchange
iii) Foreign exchange risk; and risks with oversight from Assets- Liability Management
Committee (ALCO) comprising senior executives of the
iv) Commodity price risk Bank. ALCO is chaired by the Managing Director. ALCO
(ii) Methods used to measure market risk meets at least once in a month.

The Risk Management Division also reviews the market (iii) Potential external events
risk parameters on monthly basis and recommends on
portfolio concentration for containing the RWA. Like other peers, SBL operates its business with few
external risk factors relating to the socio-economic
(iv) Policies and processes for mitigating condition, political atmosphere, regulatory policy
market risk changes, natural disaster etc. based on the overall
perspective of the country. Potential external events and
There are approved limits for credit deposit ratio,
liquid assets to total assets ratio, maturity mismatch, related downside risk, namely, political impasse, damage
commitments for both on-balance sheet and off-balance of Bank’s delivery channel including ATM, fear of theft/
sheet items and borrowing from money market and robbery in banks vaults, compliance/adjustment due to
foreign exchange position. The limits are monitored and changes of regulatory policy stance, laws & regulations
enforced on a regular basis to protect against market risks. etc. are managed to keep within tolerable limit.
The exchange rate committee of the bank meets on a daily
(iv) Policies and processes for mitigating operational risk
basis to review the prevailing market condition, exchange
rate, foreign exchange position, and transactions to The policy for operational risks including internal control
mitigate foreign exchange risks. and compliance risk is approved by the Board taking into
(Tk. in Crore) account relevant guidelines of Bangladesh Bank. A policy
guideline on Risk Based Internal Audit (RBIA) System is in
The capital requirements for: Solo Consolidated
operation. As per RBIA, branches with high risk status and
Interest rate risk 398.31 398.31 subjected to more frequent audit by Internal Control and
Equity position risk 106.43 106.80 Compliance Division (IC&CD). IC&CD directly reports to
Audit Committee of the Board.
Foreign exchange risk 165.99 165.99
Commodity risk Nil Nil
Currently, SBL are using some models or tools for
mitigating operational risk such as Self Assessment of Anti-
Total Requirement 670.73 671.10 fraud Internal Control; Quarterly Operational Report (QOR)
h) Operational risk and Departmental Control Function Check List (DCFCL) in
line with the Bangladesh Bank’s relevant Instructions and
Operational risk is the risk which may arise directly or recommendations. It is required to submit the statement
indirectly due to failure or breakdown of system, people, on Self Assessment of Antifraud Internal Control to
and process. This definition includes legal risk, but Bangladesh Bank on quarterly rest.
excludes strategic and reputation risk. The bank manages
these risks through a control based environment in which In addition, there is a Vigilance Cell established in 2009
processes are documented, authorization is independent, to reinforce the operational risk management of the
and transactions are reconciled and monitored. Bank. Bank’s Anti- Money laundering activities are headed
by CAMLCO and their activities are devoted to protect
Qualitative Disclosures against all money laundering and terrorist finance related
(i) Views of Board of Directors (BOD) on system to reduce activities. The newly established Central Customer Service
Operational Risk & Complaint Management Cell was also engaged in
mitigating the operation risks of the Bank. Apart from that,
The policy for operational risks including internal control there is adequate check and balance at every stage of
and compliance risk is approved by the Board in line operation, authorities are properly segregated and there
with the relevant guidelines of Bangladesh Bank. Audit is at least dual control on every transaction to protect
Committee of the Board directly oversees the activities against operational risk.
of Internal Control and Compliance Division (IC&CD) to
protect against all operational risks. (iv) Approach for calculating capital charge for
operational risk
As a part of continued surveillance, the management
committee (MANCOM), Risk Management Committee (at The Bank follows the Basic Indicator Approach (BIA) in
the management level), independent Risk Management terms of BRPD Circular No. 18 dated 21 December2014
Division regularly reviews different aspects of operational [Guidelines on ‘risk Based capital Adequacy for Banks’
risk. The analytical assessment was reported to the Board/ (revised regulatory capital framework in line with Basel III)].
Risk Management Committee/Audit Committee of the The BIA stipulates the capital charge for operational risk is
Bank for review and formulating appropriate policies, tools a fixed percentage, denoted by α(alpha) of average positive
& techniques for mitigation of operational risk. annual gross income of the Bank over the past three years.
(ii) Performance gap of executives and staffs It also states that if the annual gross income for any year
is negative or zero, that should be excluded from both
SBL has a policy to provide competitive package and the numerator and denominator when calculating the
best working environment to attract and retain the most average gross income. The capital charge for operational
talented people available in the industry. SBL’s strong brand risk is enumerated by applying the following formula:
image plays an important role in employee motivation. As
a result, there is no significant performance gap. K = [(GI 1 + GI2 + GI3) α]/n
172
Where: (ii) Methods used to measure Liquidity Risk
K = The capital charge under the Basic Indicator In order to measure liquidity risk various methods are
Approach being used which are as follows:
GI = Only positive annual gross income over the
GAP analysis is being done regularly that deals with
previous three years (i.e., negative or zero gross
the mismatch of assets and liabilities in different time
income if any shall be excluded)
buckets like 0-30 days, 31-90 days, 91-180 days,
α = 15 percent 181-270 days, 271-365 days and
n = number of the previous three years for which beyond 1 year. In monthly ALCO paper, SBL show this GAP
gross income is positive.
analysis based on which different strategic decisions are
Besides, Gross Income (GI) is calculated as “net Interest taken in order to reduce liquidity risk that may arise due to
Income” plus “net non -Interest Income”. The GI is also the the mismatch between assets and liabilities.
net result of :
Cash flow forecasting is another technique to
1. Gross of any provisions;
measure liquidity risk that may arise due to future cash
2. Gross of operating expenses, including fees paid to flow mismatch. In our monthly ALCO paper we show
outsourcing service providers; this cash flow forecasting
3. Excluding realized profits/losses from the sale of
securities held to maturity in the banking book; (iii) Liquidity risk management system
4. Excluding extraordinary or irregular items; In SBL, at the management level, the liquidity risk is
5. Excluding income derived from insurance. primarily managed by the Treasury Division (Front Office)
under oversight of ALCO which is headed by the Managing
Director along with other senior management. Apart from
(Tk. in Crore) the above, Risk Management Division also monitors &
Solo Consolidated measures the liquidity risk in line with the Basel III liquidity
The capital requirements for measurement tools, namely, LCR, NSFR, Leverage Ratio.
649.42 653.35
operational risk. RMD addresses the key issues and strategies to maintain
the Basel III liquidity ratios to the respective division (s) on
i) Liquidity Ratio
regular interval.
In line with the provisions of liquidity risk management
under Basel III, Bangladesh Bank on the basis of the (iv) Policies and processes for mitigating Liquidity Risk
relevant guideline of Bank for International Settlements
The Asset-Liability (ALCO) policy leads the process &
(BIS) has identified the (i) Liquidity Coverage Ratio (LCR); (ii)
procedures for mitigation of liquidity risk of SBL.
Net Stable Funding Ratio (NSFR); and (iii) Leverage under
the purview of ‘Liquidity’ ratio vide BRPD Circular No. 18 ALCO works under specific Terms of References
dated 21 December 2014 and DOS Circular No. 1 dated 1
(functions) approved by the Board.
January 2015.
Qualitative Disclosures Treasury Division (Front Office) and ALM desk under
regular supervision of Top Management reviews the overall
(i) Views of Board of Directors (BOD) on system to reduce liquidity position of SBL and takes appropriate strategy,
Liquidity Risk
process in line with the industry position for managing
The Board of Directors reviews the liquidity risk of the Bank liquidity risk of the Bank.
on quarterly rest while reviewing the Quarterly Financial
Statements, Stress Testing Report etc. Besides, the Quantitative Disclosures
Chairman of the Board also reviews the liquidity position
(Amount in Taka)
while reviewing the management information system
(MIS) report on monthly basis. Upon reviewing the overall Liquidity Coverage Ratio 112.63%
liquidity position along with the outlook of SBL funding
need, investment opportunity, market/industry trend, Net Stable Funding Ratio (NSRF) 115.56%
the Board takes its strategic decision regarding deposits,
Stock of High quality liquid assets 45,87,15,935
funding, investments, loans as well as interest rates polices
etc. Total net cash outflows over the next
40,72,79,855
30 calendar days
The Board of SBL always strives to maintain adequate
Available amount of stable funding 89,18,75,359
liquidity to meet up Bank’s overall funding need for the
huge retail depositors, borrowers’ requirements as well as Required amount of stable funding 77,17,73,061
maintain regulatory requirements comfortably.

j) Leverage Ratio Quantitative Disclosures

Leverage is an inherent and essential part of modern (Amount in Taka)
banking business. In other words, banks are highly
Solo Consolidated
leveraged organizations which facilitate leverage for
others. Leverage, in simple terms, is the extent to which a Leverage Ratio 2.91% 2.90%
bank funds its assets with borrowings rather than capital. On balance sheet
12,60,97,87,00,000.00 12,61,90,95,00,000.00
More debt relative to capital means a higher level of exposure
leverage. Off balance
2,30,91,49,00,000.00 2,30,91,49,00,000.00
sheet exposure
Qualitative Disclosures Total exposure 14,91,89,36,00,000.00 14,92,82,44,00,000.00
(i) Views of BOD on system to reduce excessive leverage k) Remuneration

The Board of Directors of SBL primarily views on the growth Qualitative Disclosures
of On and Off balance sheet exposures commensurate
with its expected capital growth so that the excessive a) Information relating to the bodies that
leverage is reduced. Within the On-balance components, oversee remuneration.
again, the Board emphasizes on the growth of the prime
component i.e. the loans and advances and maintaining (i) Name of the bodies that oversee remuneration
good asset quality so as to maximize the revenue as well
At the management level, primarily the Human Resources
as the capacity to generate capital internally (in the form
of retained earnings) to trade-off the excessive leverage Division oversees the ‘remuneration’ in line with its HR
supposed to be caused by asset growth. management strategy/policy under direct supervision and
guidance of Management Committee (MANCOM) of the
(ii) Policies and processes for managing excessive on and Bank.
off balance sheet leverage
(ii) Composition of the main body overseeing
First and foremost, Bank’s policy is to maintain the Leverage
remuneration
Ratio (Tier 1 capital as proportion to total adjusted On
and Off balance sheet asset) well above the regulatory The MANCOM is headed and chaired by the Managing
requirement. To this end, the striking components of Director & CEO of the Bank; along with other members of
balance sheet, namely, the deposits & borrowing, loans top executive management (Deputy Managing Directors)
& advances, other liquid assets (treasury bills, bonds, fund
and the Heads of different functional divisions of Head
placements) are analyzed on monthly basis.
Office. Head of Human Resources Division acts as the
Measures are taken to contain the growth of overall size Member Secretary of the MANCOM of SBL.
of balance sheet (On and Off balance sheet exposures
aggregately) considering short term outlook of the (iii) Mandate of the main body overseeing remuneration
industry indicators as well as possible growth of equity The mandate of the Management Committee (MANCOM)
(Tier 1 capital) of the Bank on quarterly rest.
as the main body for overseeing the Bank’s remuneration
is to review the position of remuneration and associated
With regard to managing the excessive leverage, the
regulatory stance through the monetary policy initiatives matters and recommend to the Board of Directors
i.e. the scope of expected business potential (growth), for approval of its restructuring, rearrangement and
estimated money supply, inflation, resulting the estimated modification commensurate with the industry best
overall liquidity of the industry as well as the Bank in practices as per requirement.
particular is also considered.
(iv) External consultants whose advice has been sought,
(iii) Approach for calculating exposure/Leverage the body by which they were commissioned, and in what
areas of the remuneration process.
The exposures of balance sheet representing the overall
position of the Bank as of the reporting date are calculated The Bank has no External Consultant permanently
and presented in terms of applicable relevant accounting regarding ‘remuneration’ and its process. However,
standards, i.e., IASs (BASs), IFRSs (BFRSs), etc. experts’ opinion may have been sought in case to case
basis regarding income tax matter, lawyers’ opinion for
The accounting values of assets and liabilities are also
settlement of employees’ dues in case of death, penalty
presented and measured at gross. Netting of assets and
liabilities are also made where permitted in compliance etc. if required, by the management.
with the respective accounting standards and the
regulatory instruction. (v) A description of the scope of the bank’s remuneration
policy (e.g by regions, business lines), including the
For calculating “leverage”, SBL follows the ‘Leverage Ratio’ extent to which it is applicable to foreign subsidiaries
approach/method as suggested by Bangladesh Bank. and branches.
174
The Bank does not differentiate the ‘Pay Structure’ and (ii) An overview of the nature and type of the key
‘employee benefits’ by regions. However, variation in measures used to take account of these risks, including
remuneration is on practice based on nature of job/business risks difficult to measure.
line/activity primarily bifurcated for the employees who are
directly recruited by the Bank and the eadcounts/employees Different set of measures are in practice based on the nature
explored through outsourcing service providers as per rule. As & type of business lines/segments etc. These measures
of 31 December 2018, the Bank had two foreign subsidiaries are primarily focused on the business target/goals set for
and two branches outside Bangladesh. each area of operation, branch vis-à-vis the actual results
achieved as of the reporting date. The most vital tools &
(vi) A description of the types of employees considered
indicators used for measuring the risks are the asset quality
as material risk takers and as senior managers, including
(NPL ratio), Net Interest Margin (NIM), provision coverage
the number of employees in each group.
ratio, credit-deposit ratio, cost-income ratio, growth of
We consider the members of the senior management, net profit, as well the non-financial indicators, namely, the
branch managers and the employees engaged in different compliance status with the regulatory norms, instructions
functional divisions at Head Office (except the employees has been brought to all concerned of the Bank from time
involved in internal control, risk management and to time.
compliance) as the material risk takers of SBL.
(iii) A discussion of the ways in which these measures
b) Information relating to the design and affect remuneration.
structure of remuneration processes.
While evaluating the performance of each employee
(i) An overview of the key features and objectives of
annually, all the financial and non-financial indicators
remuneration policy.
as per pre-determined set criteria are considered; and
Remuneration and other associated matters are guided accordingly the result of the performance varies from one
by the Bank’s Service Rule as well as instruction, guidance to another and thus affect the remuneration as well.
from the Board from time to time in line with the industry
practice with the objectives of retention/hiring of (iv) A discussion of how the nature and type of these
experienced, talented workforce focusing on sustainable measures has changed over the past year and reasons
growth of the Bank. for the change, as well as the impact of changes on
remuneration.
(ii) Whether the remuneration committee reviewed the
bank’s remuneration policy during the past year, and if No material change has been made during the year 2016
so, an overview of any changes that were made. that could the affect the remuneration.
Human Resources Division under guidance of MANCOM,
d) Description of the ways in which the
the Board and senior management reviews the issues of
remuneration & its associated matters from time to time.
bank seeks to link performance during a
performance measurement period with levels
(ii) A discussion of how the bank ensures that risk and of remuneration.
compliance employees are remunerated independently (i) An overview of main performance metrics for bank,
of the businesses they oversee.
top-level business lines and individuals.
The risk and compliance employees are carrying out the
The Board sets the Key Performance Indicators (KPIs) while
activities independently as per specific terms of references,
approving the business target/budget for each year for the
job allocated to them.
Bank and business lines/segments. The management sets
Regarding remuneration of the risk and compliance the appropriate tools, techniques and strategic planning
employees, Human Resources Division does not make (with due concurrence/approval of the Board) towards
any difference with other mainstream/ regular employees achieving those targets. The most common KPIs are the
and sets the remuneration as per the prevailing rule of the achievement of loan, deposit and profit target with the
Bank primarily governed by the employees’ service rule of threshold of NPL ratio, cost-income ratio, cost of fund,
the Bank. yield on loans, provision coverage ratio, capital to risk
weighted asset ratio (CRAR), ROE, ROA, liquidity position
c) Description of the ways in which current (maintenance of CRR and SLR) etc.
and future risks are taken into account in the
remuneration processes. (ii) A discussion of how amounts of individual
(i) An overview of the key risks that the bank takes into remuneration are linked to bank-wide and individual
account when implementing remuneration measures. performance.
The business risk including credit/default risk, compliance The remuneration of each employee is paid based on her/
& reputational risk are mostly considered when his individual performance evaluated as per set criteria.
implementing the remuneration measures for each And, accordingly, the aggregate amount of remuneration
employee/group of employee. Financial and liquidity risk of the Bank as a whole is linked/ impacted to the same
are also considered. extent.

(iii) A discussion of the measures the bank will in general Quantitative Disclosures
implement to adjust remuneration in the event that
performance metrics are weak. This should include g) Number of meetings held by the main body
the bank’s criteria for determining “weak” performance overseeing remuneration during the financial
metrics. year and remuneration paid to its member
The Bank follows remuneration process as per set criteria 12 (Twelve) meetings of the Management Committee
with no in general adjustment in the event of weak
(MANCOM) held in the year 2018. All the members of
performance metrics/scorecard.
MANCOM are from the core banking area/operation of
e) Description of the ways in which the bank the Bank. No remuneration was paid to the members of
seek to adjust remuneration to take account the Management Committee for attending the meeting.
of longer-term performance.
h) i) Number of employees having received
(i) A discussion of the bank’s policy on deferral and
vesting of variable remuneration and, if the fraction of
a variable remuneration award during the
variable remuneration that is deferred differs across financial year.
employees or groups of employees, a description of
The following Number of Employees received a variable
the factors that determine the fraction and their relative
remuneration during the year 2018:
importance.
The Bank pays variable remuneration i.e. annual increment Particulars Numbers
based on the yearly performance rating on cash basis with
the monthly pay. While the value of longer term variable
Number of employees having received
part of remuneration i.e. the amount of provident fund,
a variable remuneration award during NIL
gratuity fund are made provision on aggregate/individual
the year 2018
employee basis; actual payment is made upon retirement,
resignation etc. as the case may be, as per rule.
ii) Number and total amount of guaranteed bonuses
(ii) A discussion of the bank’s policy and criteria for awarded during the financial year.
adjusting deferred remuneration before vesting and (if
permitted by national law) after vesting through claw The following Number of Employees received a variable
back arrangements. remuneration during the year 2017:
Not Applicable.
Total amount
number of
f) Description of the different forms of variable of guaranteed
Particulars employees
remuneration that the bank utilises and the rationale for bonuses (In
(In Unit)
using these different forms. Million Taka)
(i) An overview of the forms of variable remuneration Guaranteed bonuses

offered (i.e. cash, shares and share-linked instruments awarded during the NIL NIL
and other forms. A description of the elements year 2018
corresponding to other forms of variable remuneration
(if any) should be provided.
iii) Number and total amount of sign-on awards made
The Bank pays variable remuneration on cash basis during the financial year.
(i.e. direct credit to the employee Bank account and/or
Payment Order/Cheque), as the case may be, as per rule/ There was no severance payment during the year.
practice.
iv) Number and total amount of severance payments
(ii) A discussion of the use of the different forms of made during the financial year.
variable remuneration and, if the mix of different forms
of variable remuneration differs across employees or There was no severance payment during the year.
groups of employees), a description the factors that
i) i) Total amount of outstanding deferred
determine the mix and their relative importance.
remuneration, split into cash, shares and
The following variable remuneration has been offered by share-linked instruments and other forms.
SBL to its employees:
Not Applicable.
Annual Increment
ii) Total amount of deferred remuneration paid out in the
Bank provides annual increments based on performance financial year.
to the employees with the view of medium to long term
strategy and adherence to Sonali Bank values. No deferred remuneration paid in the year 2018.
176
j) Breakdown of amount of remuneration k) Quantitative information about employees’

awards for the financial year to show: exposure to implicit (e.g. fluctuations in the
i) Fixed and variable remuneration paid in 2018 are as value of shares or performance units) and
follows: explicit adjustments (e.g. claw backs or Similar
Tk. in million reversals or downward revaluations of awards)
Particulars Amount of deferred remuneration and retained
Fixed pay 19,240.91 remuneration:
Variable pay N/A i) Total amount of outstanding deferred remuneration
Total fixed and variable pay and retained remuneration exposed to ex post explicit
(ii) Deferred and non-deferred (paid during the year). and/or implicit adjustments.
Tk. in million Not Applicable
Particulars Amount
ii) Total amount of reductions during the financial year
Deferred N/A
due to ex post explicit adjustments.
Non-deferred 19,240.91
Not Applicable
iii) Different forms used (cash, shares and share linked
instruments, other forms).
iii) Total amount of reductions during the financial year
Remuneration is paid on cash basis (i.e. direct credit to due to ex post implicit adjustments.
the employee Bank account and/or Payment Order/
Cheque), as the case may be, as per rule/practice. Not Applicable

PR GRESS
THR UGH
INFRASTRUCTURAL EXCELLENCE
178
REPORT ON SUSTAINABLE BANKING

REPORT ON
SUSTAINABLE BANKING
SBL’s sustainability ethos is one that is deeply embedded in Green Strategic Planning: Green Strategic Planning has
the overall business strategy and therefore intrinsic to the prepared and approved by the Board. It was circulated
way in which the Bank conducts its business. Sustainability vide Head Office circular letter no. 683, RMD circular letter
is at the very core of the Bank’s corporate strategy.By no. 09, date-15.07.2015.
integrating social and environmental responsibility into
core business processes and stakeholder management, Sustainable Finance Unit
the Bank recognizes its ability to achieve the ultimate goal As green environment has a positive effect on environment,
of creating both social and corporate value. By integrating Sonali Bank Limited expands its hand to the environment
sustainability into a bank’s business strategy and decision friendly activities as per regulatory guidelines. A separate
making processes, institutions can support environmentally sustainable finance unit has been established to implement
or socially responsible projects, innovative technologies diversified measures such as green financing, create
and sustainable enterprises. Sonali Bank Limited, as the consciousness among the people, less consumption of
leading bank, is also considering the two aspects into its water, electricity and paper, and encourage financing
core business through the integration of environmental commercial projects that supports ecological balance to
and social considerations into product design, mission make SBL an environment responsive biggest commercial
policy and strategies. bank. To reduce the pressure over electricity, SBL is
Mission of Sonali Bank Limited inaugurating new branches which are capable of getting
more sunlight and fresh air during office hours.
Mission of Sonali Bank Limited in achieving a sustainable
economy incorporates the strategy and policy of the Number of Amount
Sl. Projects
government which includes: Projects (Tk. in million)
1 Solar Panel 1581 39.60
Poverty alleviation through contributing in socio-
2 ETP 01 9.10
economic development of the country.
Achieve food security by promoting sustainable 3 Pet Bottle 01 8.60
agriculture and by enhancing facilities in transactions 4 Bio Degradable Products 01 18.10
of the farmers.
Total 1584 75.40
Support quality education and facilitate the school
going students. Incorporation of Environmental Risk into
Create awareness of its employees and the valued Credit Risk Management:
clients for pollution free Bangladesh.
Sonali Bank Limited has incorporated environmental
Sustainable and gradual positive financial growth and climate change risk as part of the existing credit risk
through financing established and promising sectors. methodology prescribed to assess a borrower in line with
Uphold customer care and responsible financial Bangladesh Bank ERM guideline and related instructions.
services. Bank use environmental risk rating (EnvRR) for facilitating
elements of credit risk arising from environmental issues
Build balanced and green Bangladesh by protecting
and regulatory compliance as well. Environmental risk is
forests and by combating desertification.
a facilitating element of credit risk. So Sonali Bank Limited
Promote peaceful and inclusive societies for integrated environmental risk management with credit risk
sustainable development. management in all aspects.
Corporate infrastructure and culture in the institution.
180
REPORT ON SUSTAINABLE BANKING
On receiving the proposal for financing, Bank conduct a Letter- 411 (Risk Management Department Circular letter
preliminary environmental risk review using Environmental – 03) of 23 September 2012. According to the instruction,
Due-Diligence (EDD) checklists. There is a general EDD every office and branches were ordered to estimate the
checklist, ten sectors EDD checklists and a guidance inventory of water, paper, electricity and fuel and keep that
matrix. Bank determines the environmental risk rating under a certain limit.
(low, moderate and high) of any project on the basis of
checklist.
Green Marketing
Marketing of products and to provide services to the
In-house Environmental Management
customers, we try to highlight the merits and demerits
By the in-house environmental management system, to of the products. Simultaneously, we are taking under
prevent the water, paper, electricity and fuel wastage and consideration the project (funded and to be funded)
using them efficiently a “Green Office Guide” including whether that is safe and risk free for environment at the
“few instructions” was issued in the Head Office Circular time of granting the loans.
Our We show our customers that we

Customers are on their side through service
excellence, supporting financial
wellbeing, good customer
outcomes and advocacy, and
digital innovation.
Our We are rebuilding trust and our

reputation by engaging
Community proactively and openly with
government and regulators,
investing in communities and
education, and rolemodelling
reconciliation.
Our We motivate our people through

leadership and engagement, by
People promoting health, wellbeing,
diversity and inclusion, and by
providing training and career
development.
Our We deliver sustainable financial

performance through strong
Shareholder conduct, culture, governance,
accountability, remuneration and
responsible business practices.

Digital Banking Social Impact

Till December 2018, achievement of this bank in online With our material issues in mind, we have identified
banking is as follows:
the SDGs that are most relevant to our business and
A. On-line Banking: stakeholders.
Number No. of No. of Employees and Talent Management

Number of Any Number No of Total Branches ATM
of Total Branch of CBS Accounts Powered Powered
Branches Banking Branches by Solar by Solar In order to be the best retail and commercial Bank for our
Branches Energy Energy customers, we have to begin with our employees. If they
1213 1213 1213 18,009,264 43 2
feel proud of belonging to SBL and are more committed,
B. ATM Service: they will be able to earn the lasting loyalty of our customers.
SBL endeavors to attract and retain the best talent, and
Number of Shared ATM
Number of own ATM Booth wants its professionals to be motivated, committed and
Booth with other Banks
105 2100 fairly paid. SBL employees share the corporate culture
focusing on fulfillment of its purpose, helping people and
Staff Training, Creating Consumer Awareness, businesses prosper, and consistently doing things in a
Green Banking Activities
simple, personal and fair way.
In line with environmental law, we are inspiring people
to run their business and financial activities using the Year Total Courses Total Trainees
inventories properly and involving them to save the
2018 798 15121
environment. Sonali Bank Staff College is gradually
organizing training sessions on green banking. 166 2017 460 17015
Participants has participated in different sustainability
2016 578 10867
related training program.
2015 552 9984
Publishing and Promoting Projects Under
taken 2014 516 10187
We are reporting about our green banking activities to

Bangladesh Bank on quarterly basis in the prescribed form Number of Training in Number of Employees
Green Banking Trained
of the Bangladesh Bank.
5 56
Developing Sector Specific Environmental
Policy Knowledge: Training is one of the key tools for professional
SBL also follows Bangladesh Bank Environmental Risk development at SBL. With a staff college including 05
Management (ERM) guidelines, Environmental Coservation (Five) training institutes, BIBM, Bangladesh Bank training
Act- 1995 (ECA 1995), Environmental Conservation Rules academy and other training institutes, Sonali Bank Limited
(ECR 1997) and other relevant guidelines. We develop Sector provided training to 15121 officers through 798 training
Specific Environmental Policies for different environmental courses in 2018.
sensitive sectors such as agriculture, agro business
(poultry and dairy), agro farming, leather (tannery), fishery, Community Investment: SBL also contributes to economic
textile and apparels, renewable energy, pulp and paper, and social development through initiatives and programs
sugar and distillery, construction and housing, engineering that support the community. At SBL, we believe that the
and basic metals, chemicals (fertilizers, pesticides and
most rewarding investment is investing for the society. We
pharmaceuticals), rubber and plastic industry, hospital/
are driven by our purpose to sustain and ensure growth by
clinic, chemical trading, brick manufacturing, ship
breaking, jute and jute goods etc. We are developing tools making profit for the stakeholders. We believe in creating
for rating the business that are being well financed and long-lasting value for our clientele, stakeholders, and
properly monitored. Our policy discourages financing red employees and above all for the community we operate
category or other environmentally hazard projects. in.
Green Strategic Planning Tax Contribution: SBL contributes economically and

Green Strategic Planning has prepared and approved by socially to the countries in which it operates by paying
the Board. It was circulated vide Head Office circular letter all direct taxes and withholding indirect taxes from third
no. 683, RMD circular letter no. 09, date-15.07.2015. parties, collaborating fully with the local tax authorities.
182
REPORT ON HUMAN RESOURCES
REPORT ON
HUMAN RESOURCES
Human resource development is regarded as one of the Identifies and meets the training requirements of
integral parts in Sonali Bank limited. It is important to utilize existing staffs.
human capital more efficiently to achieve institutional goals
Ensure employees welfare and positive attitude
as it is easy to make proper distribution of other assets
amongst them .
of the institution through skilled and capable manpower.
We have a pool of talented and skilled workforce. We also Ensure better working environment for the employees.
focus on their career development by nominating them
Raise awareness of current workplace legislation.
for training, seminar and workshop at home and abroad.
The Board of Directors and the management team of
In the year of 2018, the Human Resource Development Sonali Bank Limited always emphasize on hiring talents,
Division (HRDD) made significant progress towards developing human and technical skills of the employees so
building resilient organization by focusing on strategic that the organization can get optimum output by utilizing
workforce planning, talent attraction and management limited workforce. With these ends in view, a new area of
and in leadership development by sustainable resourcing operation, performance and merit based promotion, right
of critical roles. The HRDD of Sonali Bank Limited performs man in right place at right time posting policy are among
the following key roles: the few initiatives which were approved and implemented
by SBL authority in 2018. A tabular presentation of the
Facilitate the process of recruiting suitable candidates designation-wise number and gender of the staffs are
for the organization. given below:
2018
DESIGNATION
MALE FEMALE TOTAL
Managing Director & CEO 1 0 1
Deputy Managing Director 5 0 5
General Manager 24 2 26
Deputy General Manager 90 4 94
Assistant General Manager 335 36 371
Senior Principal Officer 1,074 173 1,247
Principal Officer 2,272 418 2,690
Senior Officer 2,423 806 3,229
Officer 5,933 1,075 7,008
Junior Officer 70 4 74
Assistant Officer Grade-1 480 16 496
Supporting Staff Grade-1 567 14 581
Assistant Officer Grade-2/ SS Gr-2 67 1 68

2018
DESIGNATION
MALE FEMALE TOTAL
Supporting Sub Staff Grade-1/2/3 1,244 55 1,299
Local Based Officer( Overseas Branches, Sonali Bank UK Limited, SECI, Sonali Bank
60 0 60
Representative Offices)
Local Based Staff( Overseas Branches, Sonali Bank UK Limited, SECI, Sonali Bank
22 0 22
Representative Offices)
Total 14667 2604 17,271
In percentage 85% 15% 100%
Recruitment and Posting Impact of employees to the Bank is given below:

Recruitment is the obvious step to fill up the vacancies
Description of Years 2018 2017 2016 2015
as every service holder retires at a fixed age (59/60
Total number of
years) as a normal procedure of service holders in Sonali 17271 18301 20203 22100
employees
Bank Limited. Various reasons such as retirement or
self retirement, dismissal, death etc., manpower of the Total number of branches 1215 1212 1209 1207
Bank is decreasing regularly. Besides, to address the
Employee per branch(nos) 14 15 17 18
growing demand of banking products and services and to
operate new branches and divisions of SBL, recruitment Deposit per employee
63.33 58.16 51.06 39.18
is a general necessity. The HRDD of the Bank has been (million Tk.)
consistently recruiting manpower at different grades Investment per employee
52.58 48.40 42.24 34.13
(million Tk.)
to meet the vacancies. To ensure the transparency and
Operating profit per
accountability, regular transfer and posting is also an 1.17 0.65 0.21 0.39
employee (million Tk.)
important responsibility of Human Resource Management Salaries and allowances
Division. 0.79 0.78 0.71 0.43
per employee (million Tk.)
List of recruitment from 2014 to 2018 in
different grades are given below: Training and Development
The HRDD of Sonali Bank Limited took necessary initiatives
Senior Officer/ to impart fundamental knowledge as well as the latest
Law
Year CFO CITO CAO CSO Officer/ Officer Cash/ Total developments and banking rules and regulations to the
Consultant
Equivalent Equivalent
employees so that they could understand the customer’s
2018 - - - - - 64 495 559 demands and deliver prompt and efficient services. To
make the above goals successful, SBL has one Staff College
2017 - 1 1 - 1 89 12 104 in Dhaka and six training institutes across the country.
Apart from these institutions, training programms and
2016 - - - - - - 3 3
workshops for the employees were carried by Bangladesh
2015 - - - - - 401 1027 1428 Institute of Bank Management (BIBM), Bangladesh
Bank Training Academy (BBTA) and other organizations
2014 1 - - 1 - 219 864 1085 throughout 2018. The number of courses and trainees
undergone various training programs during 2014 to 2018
Total 1 1 1 1 1 773 2401 3179
are presented in the next page:
Sonali Bank Staff College Bangladesh Institute of Bank Management
184
REPORT ON HUMAN RESOURCES
In 2018, 227 officials participated various foreign

Number of Number of
Year training/workshops/seminars organized by renowned
courses trainees
organizations. Some of those are:
2018 709 11133
1. National Institute of Bank Management (NIBM), Pune,
2017 730 11822 India
2. AALLAN LLOYDS Group, United Arab Emirates (U.A.E.)
2016 578 10867
3. SWIFT, Malaysia
2015 552 9984 4. International Chamber of Commerce (ICC)
5. Staff Training College, United bank of India, Kolkata
2014 516 10187
6. Franfurt School of Finance & Management, Germany
Training certificate handed over by Mr. Md. Obayed Ullah Al Masud, CEO & Managing Director of SBL
Last but not the least, to enhance the knowledge and skills Occupational health, safety and environment
of the employees of the Bank, there is a central library
The Board and the management of SBL sincerely believe
which is located at the 7th floor of Sonali Bank Limited,
in safety, health security at work place that is a prerequisite
Head Office, Motijheel, Dhaka. The library is enriched for sound state of mind of employees for delivering
with more than 10,000 books on Banking, Foreign trade, satisfactory services to the customers. That is why SBL
Computer, Management, Accounting, Commercial and takes necessary actions for ensuring healthy and safe
industry law, Agriculture and industry finance, Economics, workplace for the employees. All the branches, regional
offices and divisions of head office are well decorated
Religion and literature and other contemporary books
having sufficient open spaces. A team with logistics
and journals. Various foreign journals like the Economist, supports and services headed by Chief Security Officer
the Times, the Newsweek, the Reader’s Digest and other (CSO) is especially assigned to visit regularly to monitor
famous local and international journals and papers are cleanliness, safety measures and other in all branches. To
available at the library. In 2018, total 1287 books bought ensure sound health of the employees, a team of doctors
on various topics. headed by the Chief Medical Officer is working from head
office, Dhaka and oversees the medical activities at the
Employee’s perks and privileges zonal offices of the Bank where medical check-up is done
freely.
SBL is very sincere to the welfare of its employees. In 2018,
Succession Planning
the Board of Directors of the Bank approved 3.0 incentive
bonuses- each equivalent to “Basic Salary”, recreation SBL possesses a sound HR policy covering succession
leave along with one month basic salary for every planning to carefully avoid the problems of leadership
three year of service to all of its permanent employees. vacuum under any circumstances. We have also developed
a more robust and efficient approach to our succession
Provident fund facility, gratuity fund, death cum retirement
planning, better aligned to global best practices. This
benefits, leave encashment, two festival bonuses, bangla enables us to make the most of our existing talent and
new year allowance, employee house building loan strengthen our business continuity. The HR Division has
scheme, motor cycle loan scheme, car loan scheme for formulated and implemented an efficient succession
the executives, computer loan scheme, recognition and planning for professional employee management.
Various trainings and workshops on managerial and
monetary award for brilliant results by the children of the
leadership skills are imparted to the employees so that
employees, children education allowance, honorarium for it can be ensured about the availability of experienced
passing Banking Diploma examination are provided to the and competent employees who are prepared to assume
employees. responsible roles.

Human Resource Accounting CEO’s Award and General Award for bright performance
in SSC and HSC examinations. Various financial honoriums
Human Resource Accounting is the process of identifying are given to the employees for innovative products
and reporting investment made in the human resources of generation and passing Banking Diploma examination.
an organization. It is done to furnish the value information
for making proper and effective management decisions Our Priorities for 2019
about acquiring, allocating, developing and maintaining
1. One of the plans in 2019 is to train up the employees
human resources in order to achieve cost effective
on our refreshed Position Statements. The HRD
organizational objectives. Soon after the recruitment and
Division is planning some effective processes by
the process of making the officers competent by imparting
which our employees can easily cope up with
adequate training, Human Capital Accounting (HCA) is
the Core Banking Solutions (CBS) and can bring
done so that the decisions involving the recruitment,
pace in banking activities. There is a massive plan
development, compensation and replacement of human
to introduce technology and digital education
resources on a value for money can be taken accurately.
modules for developing prompt and dynamic service.
SBL regularly follow-up and looks into some important
Training modules related to BASEL-III, employee
areas of Human Resource Accounting for mathematical
tax, green banking are to get priority. SBL has also a
and co-relational understanding on the main business
HR Plan which aims at expanding its business area
factors. The total value of Human Capital has been
and creating more employment opportunities. To
ascertained by present value of future earning model (Lev
distribute the manpower of SBL, the HRD Division has
and Schwartz) at Tk. 204,368 in the year 2018 and Tk.
taken initiative to update the organogram which will
216,305 in 2017.
ensure fair distribution of manpower throughout its
The following table projects the age-group branches and offices.
wise value in 2018 and 2017 2. To bring performance measurement and perform
ensures that it has a right number and kinds of
Grade Per 2018 2017 people at the right places at the right time capable of
Capita effectively and efficiently completing assigned task to
Age No. of Total No. of Total
Value achieve its organizational objectives. SBL has also a
Group employees Value employees Value
18 yrs- HR Plan which aims at ensuring optimal employment
2.36 627 1480 1294 3817
29 yrs and justified distribution of manpower throughout its
30 yrs- branches and offices as per organogram. To simplify
6.53 7513 49060 6867 40103
39 yrs the prevailing HR practices adopting the modern
40 yrs- technology and best practices SBL is set to review the
11.85 2650 31402 3092 33332
49 yrs existing policies.
50 yrs-
18.89 6481 122426 7048 139053 3. To bring performance measurement and performance
59 yrs
based incentive related activities of HRM;
Total 17271 204368 18301 216305
4. Training need analysis and process development;
Reward and Motivation
5. Preparation of training and development roadmap;
Sonali Bank Limited has a strong culture of rewarding and
motivating the employees such as Best Manager Award, 6. Improvement of service benefits;
Letter of Appreciation for outstanding performance,
financial reward for classified loan recovery, fulfilling 7. Improvement of HR policies and procedures;
deposit and profit target etc. The meritorious children of 8. Adoption of HR Accounting System;
the employees are awarded Chairman’s Award, MD and
186
REPORT ON FINANCIAL INCLUSION
REPORT ON
FINANCIAL INCLUSION
Financial inclusion means providing facilities to access of SBL’s goal for financial inclusion
the un-banked people and firms to the range of financial
To ensure steady and fair economic growth by a wide
services timely and also adequate credit for low income
range of financial inclusion, following prior policies has
people at a reasonable cost. For overall economic growth been developed.
and sustainable economic development, financial inclusion
Access of all households to a full range of financial
plays a vital role in achieving goals of the government in
services at a reasonable cost and time.
any developing country. As a developing country, most
Extension of banking services and products to un-
of our poor, illiterate people and also people of remote
banked and underprivileged people.
area lack access to financial activities like savings, credit,
Being responsive and support quickly to the
insurance etc. Unbelievable that these people are still
government’s growth strategy and Bangladesh Bank’s
remained un-banked at the age of 21st century which is policy.
called the age of information technology. So, we have
Include different classes of people through
a large scope to embrace the wide range of un-banked introducing new products.
people to the mainstream of regular banking operations. Financing in agriculture, SMEs and environment
According to the recent development theories, the greater friendly activities.
financial inclusion we have, the better positive impact on “School Banking” is introduced to make the habit of
the lives of the poor and disadvantaged segment can be savings by the students of school from their early age.
achieved. Financing higher education and overseas employment
to take the country ahead in the near future.
An inclusive financial system thus indicates that appropriate
financial inclusion is multi dimensional in nature offering Good governance by clear regulation and industry
performance standards.
quality financial services in a convenient way, extending
access to all segments of the population with equal Financial and institutional sustainability to ensure
stability and certainty of return of investment.
opportunities and reducing inequalities in an economy.
Being the largest commercial Bank, Sonali Bank Limited is Status of financial inclusion in SBL
also offering diversified products to attract the people of Sonali Bank Limited is the leading bank by progressing
different cultures and testes in line with Bangladesh Bank successfully towards the goal of its financial inclusion
guidelines. program. Some of these are as follows:
SL. NO. NAME OF PROGRAM NUMBER OF ACCOUNTS TILL 2018 NUMBER OF ACCOUNTS TILL 2017
1. Farmer’s Account 1,503,593 1,503,620
2. Social Safety Net 2,321,319 2,171,603
3. Freedom Fighters A/C 190,833 184,972
4. School Banking A/C 61,449 56,891
5. Small Life Insurance Program 20,660 16,451
6. RMG Sector A/C 795 2,914
7. Others A/C 973,598 792,512
Total 5,072,247 4,728,963

Farmers account Role of SBL in enhancing financial inclusion

As agriculture is the lifeline of our economy, government Being the helping hand of the Governments inclusive
gives highest priority for the facilities of the farmers. growth strategy, SBL has taken financial Inclusion as
Sonali Bank Limited has absolute support towards the utmost priority for accelerating economic growth.
development program of the government. In SBL, farmers SBL has extended lending to the under-served/un-
can open a saving account with an initial deposit of Tk. served economic sectors.
10.00 at higher deposit rate and free of maintenance
Provides credit facilities to SME entrepreneurs,
charge or service charge. Moreover, a deposit product
agricultural and other rural and urban farm and non-
named “Sonali Krishak Shanchay Scheme (SKSS)” of Tk. 50,
farm productive activities throughout the country.
100 & 200 at a compound interest rate of 9% has been
introduced for farmers. As a result, total number of farmers For the physically and mentally disabled people, SBL
account stood at 1,503,593 in 2018. has taken comprehensive programs.
Social Safety Net Program Recent steps taken by SBL

Sonali Bank Limited is the pioneer of implementing the SME Women Entrepreneur’s Development Unit has been
Social Safety Net Program which targets at taking the un- set up at Head Office and all field level Controlling Offices
banked people of the society under the gigantic branch of this Bank.
coverage of the Bank through its diversified products to
meet the needs of the people. Number of accounts under Necessary guidelines have been issued to Branches/
this program was 2,321,319 in 2018 which was 2,171,603 field level controlling offices for disbursement of
in 2017. Cluster based SME Loan.
Freedom Fighters Account Introduced Online Banking, Any Branch Banking and
SMS Banking to attract every class of people.
SBL takes pride of being a helpful hand of the Freedom
Successfully launched projects named “BICYCLE
Fighters of the country as they are the hero of our Liberation
LOAN”, “Adarsha Gram Karmashuchi”, “UNMESH”,
War, 1971. The Freedom Fighters get special allowances “JAGO NARI” for the students, poor farmers and
from the government through this Bank. Moreover, the female entrepreneurs respectively with easy terms
Bank offers loan facilities with a lower interest rate. As per and conditions.
December 2018, the total Freedom Fighters account was
190,833. Relax the policies for the un-banked poor and
disadvantaged people.
School Banking Agricultural credit policies have been relaxed for
To make the habit of savings by the students of school and stimulating financial inclusion.
college from their early age, Bangladesh Bank introduced Farmers account opened with Tk. 10.00 are
“School Banking” guidelines. As per BB guidelines, Sonali encouraged with higher interest rate and free of
Bank Limited has come forward with all out effort to make maintenance charge or service charge.
this program successful. The account holders of this
Government subsidies are channeled to the landless
program get better interest rate. Till the end of 2018, total and poor people through these accounts.
School Banking account stood at 61,449.
Introduced different deposit schemes and credit
Others facilities to include different classes of people.
As a part of financial inclusion, SBL has facilities to open Financing higher education and overseas
account for other sections of the people such as (a) employment.
Hindu religious welfare trusts, destitute people affected Going to launch project for daily and construction
by cyclone Aila, employment program for the very poor, labours.
rehabilitation program under Ministry of Religion and
Cleaners of Dhaka North and South City Corporation, (b) The poor and simple people of our country are engaged
Small Life Insurance Program and (c) RMG Sector. mostly with different microfinance institutions or co-
Fair operatives. As they are not entertained with banking
facilities around them, they are not satisfied in their
To create awareness among people about the products transactions with those institutions. SBL is trying to cover
and services of financial sector, to introduce banking the major portion of these people under the umbrella
services at national level and to make the people banked of formal banking practices by taking different policies
this bank participated in various fair in 2018.
of inclusion. A wide ranging plan has been undertaken
Loans and Advances to connect the overseas employees with their relatives
SBL’s agricultural credit policies for the farmers have been living in the country so that people at villages can come
relaxed for a sustainable financial inclusion to impose a in contact with the mainstream of banking and thus
greater impact over our economy. The Bank successfully the reserve of foreign currency increase satisfactorily.
launched projects like “UNMESH”,”JAGO NARI” for the Therefore, to make the growth of our economy more
poor farmers and female entrepreneurs. Besides these, a inclusive and sustainable, SBL’s policies are targeting at
new product named “BICYCLE LOAN” upto Tk. 15,000/- at creating employment opportunities and thus accelerating
a simple interest rate of 9% for the students of Class-6 to the income of the people to keep the machine on of our
Class-10 has been launched successfully. economy.
188
REPORT ON CUSTOMER CARE
REPORT ON
CUSTOMER CARE
Customer service has great significance in banking foreign currency through reducing the demand for food
industry. A customer can be defined as a potential user of import. SBL has 190,833 accounts of the freedom fighters
bank services. So, a customer can be defined as: as a result of given emphasis on the freedom fighters. The
freedom fighters are also getting special loan facility upto
1. A person or entity that maintains an account or has a
Tk. 300,000. The Bank also delivers the services of govt.
business relationship with a bank or without having an
account maintains a relationship with a bank. allowances to different levels of the destitute people.
2. One on whose behalf the account is maintained. Service standard
3. A person or entity connected with a financial
Customer relationship management is the most efficient
transaction and
approach in maintaining and creating relationships with
4. One who have different motives for coming into the customers. Development of this type of bonding drives
bank i.e. to make a query or others. the business to new levels of success. Service standard
In the course of daily business transactions, a banker maintains a level of consistency that allows both side
comes in contact with quite a number of people who standings and their expectations. It is worth mentioning
come to deposit money or to cash cheques or to avail loan that service standards alleviate uncertainty from the
facility or for any inquiry. Some of these people maintain process and provide clients with a set of commitments
subsisting relationship with the bank, while in some cases that can be referred to while evaluating an organization’s
it is a one off affairs perhaps never to be repeated again. performance. Organizations, exceeding these standards,
obtain client satisfaction, public perception and overall
Branch network and products service performance. The behavioral relationship is
important from the view point of responsibility and
Sonali Bank Limited (SBL) has been engaged in wide range humanity, particularly for the customers who do not
of services through its 1213 branches inside the country maintain account with the bank but buy miscellaneous
to cater the needs to all classes of people. Only SBL has services like Demand Drafts, Mail Transfer of money or
branches in every upazilla of the country to take banking payment of electric bill, gas bill, opening and renewal
services to the doorsteps of common people. The Bank of various licenses, passport fees etc. SBL delivers these
has introduced the highest number of products to meet services with good manners, courtesy, kindness, sympathy
the ever increasing demands of the people. and co-operation. By helping to solve a customer’s
Implementation of Inclusive policy problem, undoubtedly makes a good impression on the
customer that adds competitive advantage to the Bank.
SBL has the highest number of accounts under the As a result of better service standard, SBL’s non-funded
financial inclusion policy taken by Bangladesh Bank and income is increasing day by day.
focuses on the majority of our population including the
farmers, the freedom fighters and under-privileged people Digitalized banking
of the society. The Bank gives special attention to the Keeping pace with the present digitalized world, SBL
farmers by giving opportunity to open a bank account at has introduced Core banking system, Mobile banking,
the cost of Tk. 10.00 without any service charge by which SMS banking, Online Any Branch Banking (ABB), RMS
they can avail government assistance in a transparent way. plus etc. to make the operations more efficient which
Now, the number of this account stands at 1,503,593. is subsequently improving our service to the valued
They also get agricultural loans from all of our rural customers and clients. We are integrating our IT systems
branches at a low interest rate. They deserve it because and simplifying automation to increase efficiency, ensure
they have made our country food-sufficient and saved a healthy environment and free up our frontline staffs. This

enables them to spend more time with our clients and the customer grievances within the shortest possible
customers. Digitization has also allowed us to simplify time. All ATM related complaints of Bank customers
our application and documentation processes, making it are redressed within the Bangladesh Bank prescribed
easier and faster for new customers to open an account time.
with us. Core Banking Solution (CBS) software has been Customer Friendly Initiatives
implemented in 1213 branches to integrate the activities,
ease the banking functions, prevent fraud and forgery and During 2017-2018, in the backdrop of slow investment/
above all better customer service. consumption, constrained food production, high inflation,
distress in several industry and infrastructure sectors such
Products proposition strategies as textile, chemicals, iron and steel, food processing,
construction, telecom etc. affected the growth of our
Sonali Bank Limited invests in product propositions and economy. Major initiatives were taken by the Bank
digital capabilities across our brands and divisions, to towards catalyzing investment and growth, to facilitate the
deliver the products to our customers need through the flow of credit to critical sectors of the economy including
channels they prefer, while improving efficiency and agriculture, infrastructure, micro, small and medium
customer service. The Bank invested in products and enterprises, housing and exports to reduce customer
services for our customers, while further reducing costs distress/pain points and to raise the level of customer
satisfaction. These initiatives include:
and improving efficiency through our simplification
program. Process innovations
Front desk customer service Relationship management platform was strengthened
across business verticals-Accounts Management
SBL is always concerned the needs, demands and priorities teams for corporate, premier banking services for
of customers. To make their banking easy with us, there is a high net worth customers, relationship managers for
front desk customer service system to provide information SMEs.
and supports.
Touch-points with customers were expanded through
Customer Service opening of branches and increasing Customer Service
Points, BC outlets in remote areas.
Our vision unambiguously spells out the centricity of the Cluster models were introduced at all currency chest
customer in the Bank’s business strategies and operations. branches for efficient cash management at semi-
A multi-tiered structure of committees is constantly urban/rural areas.
reviewing existing services and suggesting improvements.
Important issues raised by these Committees and action Technology upgrades
taken thereon, as well as analysis of the consolidated data SBL has taken initiatives to bring all its branches under
for customer grievances for all circles are placed before core-banking system. With this end in view, Sonali-
the Customer Service Committee of the Board every Polaris, a Indian sophisticated and upgraded core banking
quarter, to identify common systemic and policy issues software(CBS) has been adopted and all branches are now
that require rectification. The Bank has a well defined and in the process of conversion to it in the course of time. SBL
documented Grievance Redressal Policy which provides has brought 1213 (100%) branches under CBS program.
for: ATM : At present, the Bank has 105 ATM booths.
A complaint box has been set in every branch of our Sonali Bank’s ATM cardholders enjoy the access
bank so that any aggrieved customer can complain in to the ATMs and POS all over Bangladesh. SBL has
a written document which would be addressed by the recently launched VISA Credit Card, Debit Card and
managers and high-ups. prepaid card for tax payment. The Bank introduced
co-branded ATM services with Bangladesh Post
According to Bangladesh Bank guidelines, there is Office.
hotline for customer’s complaint address which is
displayed on the visible place in every branch. The Online and SMS Banking: At present, 1213 local
display contains the following information: branches of SBL are included in the Online Any
Branch Banking (ABB) network. SMS Banking service
is running in 1213 branches. The Bank is seriously
Bangladesh Bank working on connecting all branches in the Real-time
Hotline for customer's complaint: Online Banking network gradually.
Head Office: BACH: BACH minimizes fraud and forgery, reduces
Dial 16236 cheque carrying and clearing cost as well as payment
Fax : 0088-02-9530273 processing time dramatically. It also ensures faster
E-mail : bb.cipc@bb.org.bd and secured payment and settles payment of all
cheques of whole country under a single head of
Bank’s Head Office based Complaint cell has been the Bangladesh Bank. With a view to making clearing
redesigned. Written complaint can be dropped at activities, Bangladesh Automated Clearing House
branch complaint box, by calling at the number of (BACH) has been setup at Local office of the Bank.
the Bank’s complaint centre which is 9586431, fax Clearing activities in automated system are executed
no-7115519 and through Bank’s email address which through BACPS (Bangladesh Automated Cheque
is: dgmvcd@sonalibank.com.bd. All complaints Processing System) from this centre. Fund transfer
are lodged and actions are duly taken. Bank has activities from all branches of the Bank with other
mandated and has been able to redress a majority of banks are being operated through Bangladesh
Electronic Fund Transfer Network (BEFTN).
190
REPORT ON CUSTOMER CARE
Online CIB services at all branches. This web based software provides digital
services to the expatriates through its unique advantage of
To create a disciplined environment for borrowing, the sending confirmation message to the mobile phone of the
automated CIB service provides credit related information remitter/beneficiary. The Bank has also arranged to pay
for prospective and existing borrowers. With this improved foreign remittance through Western Union, Transfast, IME
and efficient system, risk management will be more Malaysia, Express Money.
effective. SBL furnishes credit information to CIB database
24/7 round the year; and they can access credit reports Islamic Banking
from CIB online.
SBL is giving priority on Islamic Banking because of its
Help desk and Women entrepreneur desk recent popularity in the banking sector. “Islamic Banking
Department” under the direct supervision of Business
To extend support to the customers and especially to Development Division of the Bank, is running its business
the entrepreneurs, there is a help desk and a women succesfully in 11 branches of the Bank
entrepreneur desk in every branch. The functions of these
desks are to assist the customers by providing necessary Citizen Charter
information.
To ensure proper customer service, citizen charter has
Foreign Remittance been hanged on the wall at the visible place of customers
at Head Office and branches as per the directive of the
SBL’s own in-house software “Remittance Management regulator. By reading it customers can be well aware of
System Plus” (RMS+), having the feature of paying foreign the services and products that the Bank is supposed to
remittance instantly over the counter, is being implemented render to its stakeholders.
Current Deposit, Fixed Deposit, Short-term Deposit, Savings Deposit, Special Deposit and Pension Scheme
(SDPS), Sonali Deposit Scheme (SDS), Medicare Deposit Scheme (MDS), Education Deposit Scheme (EDS), Rural
Deposit Scheme (RDS), Marriage Savings Scheme (MSS), Monthly Earning Scheme (MES), Double Benefit Scheme
(DBS), Non-resident Deposit Scheme (NRDS), Sonali Bank Daily Profit Scheme (SBDPS), School Banking Scheme
Deposit Account
(SBS), Retirement Savings Scheme (RSS), Sonali Bank Retirement Savings Scheme (SBRSS), Sonali Bank Millionaire
Scheme(SBMS), Triple Benifit Scheme (TBS), Mudaraba Monthly Profit Scheme (MMPS), Al-Wadeeah Current A/c
(AWCA), Mudaraba Savings A/c (MSA), Mudaraba Special Notice Deposit A/c (MSND), Mudaraba Term Deposit
A/c (MTD), Mudaraba Hajj Saving A/c (MHSA) and Mudaraba Sonali Monthly Deposit Scheme(SMDS)etc.
Interest on Deposit Except Current Deposit, attractive interest rates are being offered on all types of deposits.
A web-based software named Remittance Mangement System Plus (RMSplus), developed in house, has been
Inland and Foreign
Remittance Citizen
deployed at 1213 branches for receiving Charter
foreign remittances. Inland and Foreign Remittance payments are made
through this system.
Electric Bills of PDB, Palli Biddyut Samity, DPDC, DESCO, Western Zone Power Distribution Company, Gas Bill,
Receipt of Utility Bill
WASA Bill, Telephone Bill of BTTB are received.
Business Loan, Agricultural Loan, Rural Credit, Industrial Project Loan, SME Loan, Agro-based Industrial Project
Loan, Small and Cottage Industries Loan, Working Capital Loan, House Building Loan, Consumers Credit, Special
Loans and Advances
Small Loan, Probashi Karmasangsthan Rin, Education Loan, Term Loan to Freedom Fighters, Foreign Education
Loan and Export-Import Trade Loans etc. are offered.
To contribute to the socio-economic development of the country relatively lower interest is charged on General
Interest Rates on
Advances, Agricultural Loan, Rural Credit, Micro Credit, Agro-based Industrial Loan, Other Industrial Project
Loans and Advances
Loans and Export-Import Trade Loans.
Without taking any service-charge, SBL makes payments of allowances to old aged citizens, widows and divorced
distressed women allowances, stipends for primary education, stipends for disabled students, allowances for
Social Responsibilities distressed disables, honourarium for freedom fighters, rehabilitation programme for acid-burnt women and
physically disables and maternity allowances for poor mothers. In some cases, services are provided at a very
nominal charge.
Fees, taxes, VATs etc. which are payable to Govt. accounts are done through treasury challan in 643 nominated
Government
branches of the Bank. Besides, payments are made against Govt. cheques and bills in 480 branches among the
Transactions
said branches of the Bank.
At present, a total of 1213 computerized branches are rendering digitalized banking services to the clients of the
Bank. A joint venture IT company named ‘Sonali Polaris FT Ltd.’ has been established to implement Online Real
Plans for
Time Core Banking (ORTB) in the Bank. Any Branch Banking (ABB) at 1213 branches and SMS banking started at
Computerization
1213 branches. SWIFT facilities are available in Head Office and 35 important branches. To ensure safety at bank
premises CCTV system has been installed at 506 branches including executive floor of Head Office.
ATM facility, locker facility, one-stop service, issuance of Wage-Earners' Development Bond, Prize Bond
purchase and sale, sale and purchase of Govt. treasury bond as primary dealer, issuance and encashment of
savings certificates issue and enchashment, US Dollar Premium Bond and US Dollar Investment Bond sale, Land
Development Tax collection, Excise Duty collection, VAT and collection of tax at source, City Corporation Tax
Other Services collection, receipt of money for Hajj, receipt of money for Jakat Fund, Travel Tax collection, receipt of Passport
and Visa fees, opening account and fund collection during natural calamity, payment of bills under Govt. food
procurement programme, payment of money from welfare fund of the Govt. Employees, payment of salary and
allowances to teachers of the registered non-goverment primary schools, non-government schools, colleges
and madrasas and exchange of torn, cracked and dirty notes are handled by Sonali Bank Limited.

ISLAMIC BANKING
OF SBL
Sonali Bank limited has started Islamic Banking operation To bring dynamism in Islamic banking by utilizing the
since 29 June 2010 in consideration with the increasing well versed experience & good will of Sonali Bank
demand and expectation of religious Muslims. It is Limited.
completely based on Islamic Shariah by high profiled To encourage the savings, following direct Investment.
Shariah Supervisory Committee. Till 31 December 2018,
SBL has continued Islamic Banking operation through its To create more employment facilities by inspiring
following 5 (five) branches with separate window: project Investment.
Activities of Islamic Banking

1. Wage Earners’Corporate Branch, Dhaka
The Islamic Banking windows are performing the following
2. Agrabad Corporate Branch, Chattagram banking activities through on-line banking:
3. Khulna Corporate Branch, Khulna 1. Collection of Deposits
4. Dargagate Corporate Branch, Sylhet 2. Investment Activities
5. Bogra Corporate Branch, Bogra Deposits
Sonali Bank Limited is giving priority on Islamic Banking Al-Wadeeah Current A/C :
because of its recent popularity in the banking sector.
“Islamic Banking Department” under the direct supervision Islamic Banking Windows operates Al- Wadeeah current
of Business Development Division of the Bank, is running A/C, based on Al- Wadeeah policy of Islamic Shariah.
its business successfully. Under these circumstances, SBL Mudaraba A/C:
has lounced following 6 (six) branches for performing
Islamic Banking operations from 01 January 2019: As per Mudaraba policy of Islamic Shariah the following
A/C’s are being maintained.
1. Rajshahi Corporate Branch, Rajshahi
1. Mudaraba Savings Account (MSA)
2. Mymensingh Corporate Branch, Mymensingh
2. Mudaraba Special Notice Deposit Account (MSNDA)
3. Barisal Corporate Branch, Barisal
3. Mudaraba Term Deposit Account (MTDA)
4. Noakhali Branch, Noakhali
4. Mudaraba Hajj Savings Deposit Account (MHDSA)
5. Moulavibazar Branch, Moulavibazar
5. Mudaraba Monthly Profit Scheme (MMPS)
6. Bahaddarhat Branch, Chattagram
6. Sonali Monthly Deposit Scheme (SMDS)
Aims & Objective of SBL Islamic Banking Sonali Monthly Denmohor Deposit Scheme
7.
To facilitate the online Shariah based banking at the (SMDDS)
door step of the religious Muslims. In these accounts’, Bank is treated as ‘Mudarib’ and client
To establish an excellent Islamic Banking System is treated as ‘Sahib Al Mal’. Bank receives deposit from the
by direct participation in sincere & public welfare depositors and invests it as per Shariah Law and distributes
Banking, ensuring a proper & developed financial (minimum 65%) profit earned for the Mudaraba fund as
Management, based on Islamic Shariah. weightage basis at the end of the year.
192
ISLAMIC BANKING OF SBL
Deposit Activity Tk. in Million (Tk. in million)

1093.07 2018 2017
Sl Description No. of No. of
Amount Amount
Acc. Acc.
01 Deposit 2431 1093.07 1922 558.10
558.10 02 Investment 725 292.83 494 195.35
423.16
333.30 03 Profit - 27.08 - 11.30
300.10
Profit Achieved Tk. in Million

27.08
2018 2017 2016 2015 2014
Investments
In Islamic Banking System the following types of
investment are being done: 11.30
7.84
Trading: Bi-Murabaha, Bi-Muazzal, Bi-Salam and Bi- 6.60 6.34
Istisna
Hire Purchase under Shirkatul Meelk (HPSM): “General
House Building (Residential) Investment” Scheme. 2018 2017 2016 2015 2014
Investment Activity Tk. in Million The performance of Islamic Banking was satisfactory in
292.83
2018. The deposit reached at Tk. 1093.07 million in 2018
which was Tk. 558.10 million in 2017. The investment
195.35 increased to Tk. 292.83 million which was Tk. 195.35
million in 2017. The profit of Islamic Banking stood at Tk.
27.08 million in 2018.
85.74
The following services are being provided by
61.07 the Islamic windows:
34.44
a) On-line Real Time banking facilities.
b) Payment Order issue.
2018 2017 2016 2015 2014 c) Remittance facilities through DD/TT etc.
Performance in 2018
Performance of Islamic Banking wings of Sonali Bank
Limited is described here:

REPORT ON
CORPORATE SOCIAL
RESPONSIBILITY (CSR)
Corporate Social Responsibility (CSR) is the continuing The Corporate Social Responsibility (CSR) activities of SBL
commitment by business to behave ethically and continue to gain momentum and earn accolades from
contribute to economic development while improving the different sectors of Bangladesh. The Bank’s humanitarian
quality of life of its workforce and their families as well as campaigns under CSR provide support to a host of socially
of the local community and society at large.
relevant schemes and this year’s highlights included
Sonali Bank Limited (SBL) as a corporate citizen owes a distributing Blanket among underprivileged cold prone
solemn duty to the less fortunate and under-privileged areas, providing education stipend, help building new
members of the society. SBL as leading state owned hospital and assistance in health care, etc.
commercial bank in the country has been playing an
important role in implementing social and philanthropic The table below provides the year and category-wise
programs to help disadvantaged people of the country. contribution under CSR Program in SBL:
Tk. in Million
Year wise contribution
Category Total
2018 2017 2016 2015 2014
Education 3.80 4.00 4.20 18.80 18.30 49.10
Healthcare 6.50 4.65 1.30 9.10 6.80 28.35
Humanitarian & Disaster Management 5.00 - 2.50 31.90 19.00 58.40
Self Employment - - - - 0.20 0.20
Arts & Culture - 10.80 - - - 10.80
Liberation war related - - - - 0.50 0.50
Miscellaneous 3.70 - 4.53 5.90 0.40 14.53
Total Contribution 19.00 19.45 12.53 65.70 45.20 161.88
Education Health
Sonali Bank Limited provides financial assistance under
Sonali Bank Limited is providing scholarships to students,
its CSR activities to the insolvent persons for proper
especially for those who cannot continue their study due treatment. Under its health support programs to different
to financial constraints as well as to the meritorious and segments of the poor people, the bank donated Tk. 6.50
million in 2018.
needy students every year.The bank has donated Tk. 3.80
Social welfare & Miscellaneous
million to 400 poor but meritorious students who are
Sonali Bank Limited has donated Tk 8.70 million in
studying HSC and Graduation level in different colleges
Humanitarian & Disaster Management and miscellaneous
and universities of the country. in 2018.
194
REPORT ON CORPORATE SOCIAL RESPONSIBILITY
GOVERNMENT TRANSACTIONS
AND WORKS RELATED
TO SOCIAL RESPONSIBILITY
Sonali Bank Limited the largest state owned commercial department for updating Police Verification in real time.
bank of Bangladesh since the war of liberation has been To ensure transparency and accountability, Sonali Bank
launching various innovative financial activities relate to recently introduced “Online Chalan Verification” through
self-reliance that leads to national development. Now, web portal www.cga.gov.bd from any place of the world.
Sonali Bank works side by side with present Government It is a pleasure to express that all socially committed
for successful implementation of MDG and SDG along allowances are being computerized and are to be
with ongoing Digitalization Program. disbursed through online to the selected beneficiaries in
a very recent days.
Sonali Bank is the only scheduled bank in Bangladesh that
accomplishes treasury functions with its 643 Government
nominated branches alongside Bangladesh Bank having Panchagarh
been so authorized vide Treasury Rules. Besides, all sorts

Thakurgaon Nilphamari Lalmonirhat
of Government payments and receipts in the style of

Kurigram
Dinajpur
cheques and bills are taken place by this bank and reports Rangpur
its thereof to the Bangladesh Bank and CGA. The total Gaibandha
turnover takes place in 2018 are amounting to the tune of Joypurhat

Sherpur
Naoganon Sunamganj Sylhet
Tk. 3,238,620.00 million. Bogra

Jamalpur Netrokona
Nawabganj
Mymensingh
Rajshahi
Moreover, Sonali Bank in consideration of Corporate Natore Sirajganj Kishoreganj
Habiganj
Maulvibazar
Tangail
Social Responsibility works in the midst of socially & Pabna

Gazipur
Narsingdi
economically disabled and destitute masses of the society Kushtia
Manikganj
Dhaka-1
Brahmanbaria
Meherpur
Narayanganj
viz old aged, widow, divorcee, insolvent allowances in Chuadanga
Rajbari Dhaka-2
Jhenaidah Munshiganj
the style of paying subsidies i.e. amounting Tk. 52,997.00 Magura
Faridpur Comilla
Shariatpur
Chandpur
million in the year 2018 in accordance with the direction Jessore
Narail
Gopalganj
Madaripur Khagrachhari
of Government. The apex portions of the 37 subsidies Barisal

Lakshmipur
Noakhali
Feni
Rangamati
disburse without financial consideration. The bank also Khulna

Bagerhat
Pirojpur
Jhalokati
Bhola
embellish with making pension payment to the civil Satkhira

Patuakhali
Chittagong
Barguna
and military officials. It is to be noted that Sonali Bank
Bandarban
is committed to ensure fast and smooth services to its

clients and stake-holders by rendering quality services to Cox's Bazar
Sonali Bank Limited GM Office Wise

every nook and corner of the country. Bank also performs Branch Network with Bangladesh Map
treasury functions through GTS software in all of its 643 Serial
No.
Name of GM
Office
No. of Branches
(Including Corp.)
01 Dhaka-1 108
Treasury Branches. It is also to be noted that a new GTS 02

03
Dhaka-2
Mymensing
107
114
software are being developed with a view to deposit the

04 Sylhet 79
05 Comilla 136 Indicates District Total Number of Branches
06 Chittagong 108
Indicates GM Headed Branch (3 in Dhaka City)
chalan in online whereby a depositor from any place or 07
08
Barisal
Khulna
76
124
1. Local Office
2. Bangabandhu Avenue Corp.
09 Faridpur 105
from any bank at his own will and be benefitted thereof. 10

11
Rajshahi
Rangpur
142
114
3. Ramna Corp.
TOTAL 1213
Sonali Bank now provides a new gateway to the Police

CONTRIBUTION TO
NATIONAL ECONOMY
Financial Support in Industrial, SMEs, Agro and best to provide funding support to micro-credit sector
other sectors for poverty alleviation, self-employment generation and
rural economic development. At present, as many as 24
With a view to achieving economic goals and projects/programs aimed at alleviating poverty are being
accelerating the pace of industrial development through run by the Bank.
implementation of government policies, SBL has
sanctioned loans for establishment of new industrial units Contribution to National Exchequer
and also for expansion (BMRE) of existing potential units Sonali Bank Limited plays an important role in assisting
to expand the industrial base in the country. The Bank has the Government in revenue collection. The Bank pays tax
thus created employment opportunities by sanctioning and value added tax (VAT) on its own income. Besides,
the above loans to various industrial units in the year SBL collects income tax, VAT, tax at source from clients
2018 which will contribute towards GDP growth. The and suppliers and deposits the same to the national
Bank extended term loans and working capital to different exchequer. During 2018, the Bank deposited a total of Tk.
producers, business people and service providers under 9,851.60 million as advance tax, tax at source and VAT to
SME financing. As per Bangladesh Bank’s instruction, the national exchequer which was Tk. 10,756.20 million in
Sonali Bank Limited has been providing Agricultural/Rural 2017. In 2016, Sonali Bank Limited has been awarded one
Credit among the rural farmers ranging from 4% to 10% of the “Highest Tax Payers” in banking sector by National
with simple interest rate. The Bank has been trying its Board of Revenue (NBR) for the assessment year 2015-16.
Tk. in Million
Sl. Particulars 2018 2017
1 Source tax on L/C commission 80.50 47.10
2 Source tax on buying house commission 6.90 5.40
3 VAT on Commission 647.30 628.90
4 VAT on Rent on bank building 49.30 47.70
5 Source Tax on Interest paid by bank 4801.40 5321.60
6 Source Tax on Cash subsidy on export 33.20 32.50
7 Source Tax on Neat & Garments ExportG 137.00 156.10
8 Source Tax on other than Neat & Garments Export 106.70 100.00
9 Excise duty 1379.70 1482.60
10 Tax deducted at source 1694.50 2229.60
11 Employees tax 104.90 91.50
12 Advance tax paid 700.00 500.00
13 Tax paid on car 1.30 -
14 VAT on Various Expenses 108.90 113.20
Total 9851.60 10756.20
196
CONTRIBUTION TO NATIONAL ECONOMY
Financial Inclusion Green Economy

With a view to assisting the government in accelerating Complying with Bangladesh Banks’ green banking policy,
financial inclusion program, SBL is working relentlessly SBL is financing environment friendly projects named
to bring simple, poor and unbanked people under the
renewable energy projects, clean water supply projects,
coverage of banking system with it’s enormous branch
network in rural and urban areas. Total number of accounts waste treatment plant, solid waste disposal plant etc. to
under financial inclusion program stood at 5,072,247 in ensure ecological balance. For indirect Green Finance,
2018. Bank is funding such projects which have ETP and Solar
Salaries to Staff Panel. “Sonali Alo” is the Bank’s initiative intended to align
its efforts with the initiatives being undertaken by both
Till December 2018, the number of total employees of
public and private sectors. In 2018, Sonali Bank Limited
Sonali Bank Limited was 17271. Tk. 13,573.88 million was
paid to the employees as salaries and allowances and directly financed Tk. 75.40 million in various projects.
from the salaries, Tk. 104.90 million was paid as income Moreover, CBS has been installed in all local branches of
tax from the employees. the Bank.

MANAGEMENT
DISCUSSION
AND ANALYSIS
Global Economic Situation estimated to grow by 2.9 percent in 2018 compared to

the lower rate of 2.2 percent in 2017. This may go down
The global economic activities steadily grew in recent to 2.3 percent in 2019 and further slip to 1.9 percent in
years. It has increased by 3.8 percent in 2018 which is 2020. Growth rates in Euro Area particularly in Germany,
marginally lower than 3.8 percent actually achieved in France, Italy and Spain significantly slowed down in 2018.
2017.It has been estimated to grow by 3.7 percent in 2017 But the picture is diverse and in many cases challenging
compared to the actual outcome of 3.2 percent in 2016. in emerging market and developing economies including
It has been projected to grow further by 3.3 percent in China which faces the daunting challenge of reducing its
2019 and 3.6 percent in 2020. (World Economic Outlook, reliance on credit growth.
International Monetary Fund, April 2019). The steadiness
in global economic activities is assumed on the basis of Again, according to the World Economic Outlook,
renewed activities in investment, manufacturing sector International Monetary Fund, April 2019 economic
and in trade and the expected impact of the recently activities will remain steady in emerging market and
approved US tax policy changes. Downside risks to the developing economies. It has increased by 4.5 percent in
global growth generate from higher policy uncertainties 2018 which is marginally lower than 4.8 percent in 2017.
including the rising global trade conflicts, particularly It may firm up in 2020. Economic growth rates in China
between the USA and China and reversal of capital flows and in India, two economic giants in Asia are estimated to
to the emerging market economies. grow by 6.6 percent and 7.1 percent respectively in 2018.
Again, India may also surpass China in 2019. Growth in
According to the WEO of April 2019 published by the ASEAN-5 (Indonesia Malaysia, Philippines, Thailand and
IMF, growth rate is estimated to pick up in the USA as Vietnam) showed a marginally lower rate of 5.2 percent
firms grew more confident about future demand and in 2018 compared to 5.4 percent in 2017. It has been
inventories started contributing positively to growth. It is projected to remain flat at that rate in 2019 and in 2020.
198
MANAGEMENT DISCUSSION AND ANALYSIS
Growth in the Middle East, North Africa, Afghanistan and export receipts to GDP stood at about 16 percent in FY18.
Pakistan declined to 1.8 percent in 2018 from 2.2 percent Import payments on the other hand, registered a higher
in 2017. Growth rate in Russia rebounded in 2018 to stand growth of 25.2 percent to US dollar 54,463 million in FY18
at 2.3 percent in 2018 as against the growth of 1.6 percent compared to US dollar 43,491 million in the previous year.
in 2017. The terms of trade, however, remained same at 87.11 in
Bangladesh Economic Scenario FY18 like in the previous two years.
Bangladesh economy has shown a high and steady The inflow of foreign remittances from the Bangladeshis
growth for more than a decade of over 6 percent which working abroad has been playing an important role in
is unique in the history of development of a developing strengthening the current account balance in the balance
country. This is much above the global growth rate. In of payments (BoP) of Bangladesh. Total remittances in
recent three consecutive years, i.e, from FY16 to FY18, the country increased by 17.3 to stand at US dollar 14,982
growth rates in Bangladesh witnessed spectacularly high million in FY18 compared to US dollar 12,769 million in
rate of 7 plus percent. This was made possible by different the previous year. This was mainly due to the increase of
proactive measures taken by the government in different labour force from Bangladesh to the Kingdom of Saudi
fronts to boost up economic activities and prevalence of Arabia with the opening of labour market in 2017. To ease
political stability in the country. the formal channel, Bangladesh Bank reduced the security
Bangladesh economy registered a spectacular growth rate deposit requirement for the exchange houses abroad to
of 7.9 percent in 2017-18 (FY18) compared to 7.3 percent establish drawing arrangements with the local banks. The
growth rate in the previous year. Higher growth rate in foreign exchange reserves held by the Bangladesh Bank
industry and agricultural sectors helped to achieve this has been continuously showing an uptrend in recent years.
satisfactory growth of the overall economy. It is expected It has stood at US dollar 32,943 million at the end of June
that this growth rate will be even higher at 8.0 plus percent 2018 which was US dollar 21,508 million in June 2014. his
in FY19. level of foreign exchange reserves is the second highest
among the SAARC countries which are only behind India
If we make a sector-wise analysis of growth scenario in
and almost equivalent to about eight months of import
Bangladesh, we see that industry sector which accounts
cost of Bangladesh.
for about 34 percent of GDP in Bangladesh grew at a
faster rate of 12.1 percent in FY18 compared to 10.2 Banking Sector Situation in Bangladesh
percent in the previous year mainly driven by significant
growth rate in the large and medium scale manufacturing, Banking sector in Bangladesh consisting of 57 banks
electricity, gas and water supply sub-sectors. But, growth ((contributing to about 3.0 percent to GDP) with 9955
rate in mining and quarrying decreased significantly to bank branches in June 2018 has been showing resilience
7.0 percent in FY18 compared to 8.9 percent in FY17. in the face of vulnerability and instability in the world
Services sector contributing to about 52 percent of GDP in financial system. Out of these branches, about 57 percent
Bangladesh registered a modest growth rate of 6.4 percent are located in the rural areas and the rest in urban areas.
in FY18 compared to 6.7 percent actually achieved in the Recently, Bangladesh Bank has renewed its emphasis on
previous year. But, agriculture sector whose contribution risk management operations in banks, periodic review
to total GDP has been gradually declining over the periods of stability of the individual bank within the gamut of
to stand at 14.2 percent in FY18 grew at a robust rate of
the whole banking system, exercise on stress testing,
4.2 percent during the year under report compared to 3.0
monitoring fraud/forgeries in banks and strengthening
percent in FY17. This was mainly due to the rise in fishing,
internal control and compliances and ensuring corporate
forest and related services sub-sectors.
governance in the banking system.
In recent years, average inflation rate in Bangladesh has
been showing an increasing trend. The headline inflation As a result of all these measures, the banking system could
rate stood at 5.78 percent in June 2018 which was 5.45 maintain a satisfactory level of capital to risk weighted
percent in July 2017. Rising food inflation was mainly assets (CRWA) in recent years. The minimum capital
responsible for the increase in head line inflation rate requirement (MCR) of the banks to the risk-weighted assets
despite declining non-food inflation during the first half of has been set at 10.0 percent under Basel III. Overall. this
the fiscal year.This was partially neutralised by increase in ratio has stood at 10.0 percent in June 2018 compared to
food inflation which increased by 1.11 percentage point 10.8 percent in 2016 and 2017. State-owned commercial
during FY18. Rural and urban inflation rates were more or banks (SCBs) could not maintain this ratio which was
less close to each other in Fy18. 2.0 percent in June 2018.The foreign commercial banks
operating in Bangladesh were in the most comfortable
In the light of strong recovery in the global economy aided
zone with 22.97 percent CRWA followed by the private
by domestic macroeconomic stability, external sector of
the Bangladesh economy depicted a mixed trend during commercial banks at 12.24 percent in June 2018. Overall,
FY18. Total export receipts increased by 6.4 percent in FY18 the ratio of non-performing loans (NPLs) to total loans of
to US dollar 36,205 million in FY18 compared US dollar the banks in Bangladesh has been showing an increasing
34,019 million in the last year. In the export basket, woven trend in recent years. It has stood at 9.23 percent in 2016
garments and knitwear products constituted about four which has increased to 9.31 percent in 2017. According to
fifths share which is a cause for concern to the authorities the latest information, this ratio further increased to 10.41
because of its weight only on one product. The share of percent in June 2018.

Performance Review of Sonali Bank Limited which was Tk. 238,954.10 million in 2017. As on previous
year, fixed deposits constituted of the main component
Significant Achievements at a glance of the deposit item that was 34.89 percent in 2018. After
The Bank always strives to achieve meaningful financial fixed deposits, savings deposits stood at Tk. 348,404.15
performance. Strong capital base, wide branch network, million in 2018 which was Tk. 319,578.77 million in 2017
innovative products, quality services, customer satisfaction meaning 9.02 percent growth and accounted for 31.85
and their reliability, support from stakeholders etc. are percent of the total deposit. Bills payable of the Bank stood
helping the Bank to make significant performance. The at Tk. 13,059.18 million in 2018 which was Tk. 12,363.91
major achievements of SBL in 2018 are: million 2017. SBL employs its best efforts to increase the
proportion of low/no cost deposit and to achieve an ideal
SBL achieved operating profit of Tk. 20,257.37 million deposit mix.
in 2018, highest in the banking sector of Bangladesh
which was Tk. 11,954.90 million 2017. Net profit after Investment
taxation stood at Tk. 2,264.21 million in 2018 which
There was a significant change in the investment of SBL.
was highest among the state owned commercial
The total investment of the Bank stood at Tk. 444,051.60
banks of the country as against Tk. 7,091.16 million in
million at the end of 2018 which was Tk. 462,576.62
2017.
million in 2017. Major investments were made in the form
Total assets of the Bank stood at Tk. 1,306,842.32 of Treasury Bills, Treasury Bonds, Special Bonds, Reverse
million as on 31 December 2018 compared to that Repo, Call Loan, Term Deposit, Shares and Debentures
of Tk. 1,256,711.62 million as on 31 December 2017 etc.
registering a positive growth of 3.99 percent. This is
to be delightfully mentioned that this is the highest Investment Income
amount of assets that a commercial Bank has reached Total investment income of the Bank as on 31 December,
ever. 2018 was Tk. 34,341.09 million against Tk. 33,955.80
The bank is maintaining the uptrend of its deposit million of the previous year.
successfully. In the reporting year, deposit of the Classified Loan and Recovery
bank stood at Tk. 1,093,866.19 million against Tk.
1,064,311.08 million in 2017 with an increase of 2.78%. The amount of classified loan stood at Tk. 121,883.40
million which was 26.26 percent of the Bank’s total
All of its 1213 local branches are rendering digitalized
loan as on 31 December, 2018. The amount was Tk.
banking services through CBS to the clients of the
149,302.40 million (35.28 percent of Bank’s total loan) as
Bank. These branches have been operating SMS
on 31 December, 2017. The amount of recovery against
banking service. Registered customers can get their
classified and written off loan in 2018 was Tk. 36,757.20
account transaction and balance through SMS.
million and Tk. 950.00 million respectively.
During 2018, the Bank deposited Tk. 9,851.60 million
as Tax, VAT, Excise Duties, and Source Taxes etc.
Capital Adequacy
to the national exchequer which was Tk. 10,756.20 As or 31 December 2017, Bank’s Capital to Risk-weighted
million in 2017. Asset Ratio (CRAR) has stood at 11.58% which is 1.58% higher
Extended Corporate Governance and CSR activities. than regulatory requirement of 10.00%. The maintenance
of the regulator’s minimum capital requirement came
Providing real time online banking through Core through the prudent management of overall assets of the
Banking Software with a world class technology Bank. As part of capital management, the Bank emphasized
platform. on increasing rated exposures. Total assets of the Bank
increased by 7.61% in 2018 and the Risk Weighted Assets
Analysis of Operating and Net Profit (RWA) of the Bank also decreased in the same period. This
The total operating profit of SBL increased 69.45 percent is to be mentioned that total assets of the Bank crossed Tk.
in 2018 than the previous year. It was Tk. 20,257.38 million 1 00 trillion in 2015 which set a record in the history of a
in 2018 against Tk. 11,954.90 million in 2017. Whereas commercial bank in Bangladesh. In 2016, total deposits of
operating expense was Tk. 19,063.01 million in 2018 which the Bank also crossed the landmark of Tk. 1.00 trillion and
was Tk. 19,498.31 million in 2017. On the other hand, net in the reporting year, the Bank has maintained the uptrend
profit registered at Tk. 2,264.21 million in 2018 against Tk. of the deposit flow.
7,091.66 million in 2017. Net profit decreased as a result of
keeping provisions in various segments as per direction of Credit Rating
Bangladesh Bank. Emerging Credit Rating Ltd. rated Sonali Bank Limited in
Deposit their report; they rated the Bank AAA as With Government
Support for long term and ST-1 for short term. They also
The total deposit of the Bank as on 31 December, 2018 rated the Bank A- as Without Government Support for
was Tk. 1,093,866.19 million showing an increase of Tk. long term and ST-2 for short term. The outlook of the
29,555.11 million or 2.78 percent over 1,064,311.08 million rating is stable. The rating company performed the rating
of the preceding year. Total deposit comprising current surveillance based on Audited Financial Statements and
deposit and other accounts stood at Tk. 241,757.78 million other relevant information based on 31 December 2017.
200
Principal Activities Ecology and Green Banking

Core Banking Solution (CBS) Ecology and green banking has become a social awareness
in the present world. SBL insists on going green to help the
The Bank has successfully installed Core Banking Solution
environment through its Online Banking, Mobile Banking
(CBS) in all of its 1213 local branches by using new
technologies and innovative services to make banking and the idea of socially responsible investment funds
easier and simpler. At present, the Bank takes the pride for sustainable project finance activities. Online banking
of being the largest online bank in Bangladesh. It has also which reduces the use of paper and carbon footprint,
taken initiatives to make the Bank totally IT driven and to saving daylight through proper entrance of sunlight and
achieve full automation. A web based in house developed air which reduce the use of electricity. Investment in
software named ‘Remittance Management System Plus” eco friendly business projects are important and easy
(RMS plus) has been deployed at 1213 branches for aspect of green banking. A truly green bank will reduce
receiving foreign remittance and receipt and payment of its carbon footprint by building more efficient premises
inland/local remittance through RMS plus. We are also and branches; implementing more efficient operational
providing SMS Banking, VISA Credit & Debit card facilities, procedures to promote sustainable banking and increasing
ATMs, Phone Banking, Q-Cash, Bangladesh Automated their investments in environment sensitive industries.
Clearing House (BACH), Bangladesh Electronic Fund
Transfer Network (BEFTN) to our customers smoothly. SBL’s Green Banking practices are connected with both
internal operation and product ecology. Product ecology
SME Financing
is concerned with the impacts of the banks on the
The Bank is emphasizing the activities relating to the environment used by the clients. Green Banking is engaged
promotion of sustainable economic development and in creating socially responsible investment funds and
taking keen interest for providing overall service with sustainable project finance activities. SBL is concerned with
the coordination of modern technologies and expert the welfare of its employees and customer’s satisfaction,
professionals in the SME sector considering the same benefits, wages and the Bank’s environmental standing.
as center of economic development. As a leading The Bank is putting a combined effort on switching to
commercial bank in the country, SBL is contributing the
more environment friendly practices i.e Online Banking,
economic progress by creating employment opportunities
reducing wastage of paper and electricity, using solar
for mass unemployed people through financing small
power and energy saving bulb, saving day light during
and medium industry, trade and service sector. In this
office hours and being more conscious about employee
case, the Bank is firmly committed to create quality SME
customers, patronize and develop them through equal travel policies.
management besides providing utmost importance to Benefits of Online Banking include less paperwork,
acquire quality assets. Moreover, the Bank is accelerating
less mail etc. which all have a positive impact on the
the sustainable development of rural economy of the
environment. The environment and the banking Industry
country by investing the micro and cottage industry
both are benefited when the customers of a bank start
and giving special attention to the neglected and un-
banked female entrepreneurs as well as trying to connect using Online Banking, SMS Banking and Mobile Banking
them to the mainstream of economic development by services. SBL aims at introducing changes in operational
offering diversified loan products. Considering economic areas in future to adopt more environment friendly
development of the country, the Bank is ignoring net procedures. The progress of our current banking system
spread and investment operational cost. SBL regularly towards a fully electronic and Online Banking will further
participate SME promotional activities such as SME Fair, reduce the operational cost and will be beneficial for our
Road Show, Open SME Loan Disbursement and Exchange customers.
of views with the entrepreneurs organized by Bangladesh
Bank, SME Foundation, Business Associations and Ethical Banking
Chambers. The Bank also arranges Bankers Entrepreneurs
Banks and the policies they pursue have an impact on
meeting at field based controlling offices and premises.
the community around them. Their impact has two
Islamic Banking dimensions: the way they operate i.e. internal operations
and the types of companies they finance. SBL takes care of
Because of Muslim dominant people of Bangladesh,
both the dimensions in its operation. Many ethical issues
Islamic banking, based on Shariah, is getting popularity in
such as the environmental conduct of customers are now
the country. SBL has also started banking business based
part of standard risk assessment and prudent banking. It
on Islamic Shariah since June 29, 2010 to provide their
ever increasing demands. In order to efficiently operate is becoming increasingly common practice for banks to
Islamic banking, a Shariah Supervisory Committee has have guidelines for their staff on the major ethical issues
been constituted with country’s famous Islamic thinkers, they cover. SBL has been trying to follow the Equator
economists and bankers. A new department namely Principles, a set of guidelines developed by the banks for
“Islamic Banking Department’’ has been created under managing social and environmental issues related to the
Business Development Division of the Bank. financing of development projects.

Treasury Operation implementation of every single opportunity of serving the

nation regardless of the magnitude of the frame.
Treasury operation is one of the core functions of SBL.
Treasury Management Division (TMD) is responsible Human Resource Development
for fund management, i.e, maintaining adequate cash
Skilled manpower is the pre-requisite of success in any
balances to meet day to day requirements and deploying
organization. Every human being has unique latent qualities
surplus funds from operations. It is also responsible for
in him/her though the qualities remain unexplored most
maintenance of reserve requirements (Cash Reserve Ratio
of the time. If the latent qualities of a newly appointed
and Statutory Liquidity Ratio). It has now evolved as a profit
employee are exposed and can be trained up in a proper
center with its own trading and investment activities and
way, one can be turned into an asset for the organization.
has a pioneer role of leadership in building stable Inter
The aim of Human Resources Division of SBL is to take
Bank Money Market and Foreign Exchange Market in
initiatives to explore the unexplored latent qualities in our
Bangladesh.
manpower and provide them with proper training which
Capital Market Operation includes on Job and off Job training, attending different
seminars and conferences related to skill development,
SBL has a significant presence in the capital market of job rotation and time to time counseling. Besides, the
Bangladesh through its subsidiary Sonali Investment Bank recruited Probationary Officers and Senior Officers
Limited (SIL). Obtaining license from BSEC, SIL commenced to meet the changing business needs and ever increasing
its operation on 14 September, 2009 as Merchant Banking demand of prompt customer service of the clients.
Unit under Treasury Management Division (TMD) of Sonali
Bank Limited. Subsequently, the merchant banking unit had Asset Liability Management
been registered with Registrar of Joint Stock Companies Asset Liability Management (ALM) is the most important
and Firms (RJSC) as a full fledged subsidiary of SBL on April function of Bank Management derived from an independent
22, 2010 as SIL. The authorized and paid up capital of the unit within Treasury Management Division of SBL. The
company stands at Tk. 6,000.00 million and Tk. 2,000.00 function of ALM is the architecture of Bank’s Balance
million respectively. Being fully compliant with the laws of Sheet by assessment of current scenario and projection of
the land, SIL ensures high quality services to our valuable future possibilities. As a part of core risks management in
clients through its professionalism. It attaches priority Banking, Bangladesh Bank has introduced basic guidelines
to investors’ interest, their benefit and always intends to for managing assets and liabilities of banks in Bangladesh.
protect investors against market related risks. This is why In line of Bangladesh Bank guidelines of Asset liability
SIL has become a trusted partner of investors. The current management (ALM) and related circulars, SBL facilitates
activities of the company include Issue Management, smooth functioning of asset liability management and
Portfolio Management, Underwriting, Equity Participation controlling the Balance Sheet risks.
and ancillary services related to the capital market. At
present, Sonali Investment Limited runs its day to day Risk Management
operation by its Head office and four branches located at
Like any other business, there are various risks inherent in
Paltan, Uttara, Mirpur and Khulna. The company has a plan
banking business as well. But the risks in banking business
to open new branches at other divisional towns in future.
are complex and multi-dimensional. These necessitate
Foreign Correspondent Bank structural development and the implementation of risk
management strategies in the banking sector. Bangladesh
SBL has established correspondent relationship with 669 Bank has identified 6 (six) core risk areas relating to banking
branches of 463 banks located in 92 countries to facilitate operations and issued necessary guidelines for those
business with foreign countries. This correspondent areas. These are: (a) Credit Risk (b) Asset and Liability/
relationship has significantly increased bank’s foreign Balance Sheet Risk (c) Foreign Exchange Risk (a) Money
exchange and trade business simultaneously. As a result, Laundering Risk (e) Internal Control and Compliance Risk (f)
the clients of SBL have been receiving prompt and Information Technology Risk and 01 (one) supplementary
satisfactory services all over the world. Risk - Environmental and Climate Change Risk. The Risk
Management Division identifies, analyses, evaluates
Corporate Social Responsibility and supervises all risk related works including control/
As a leading state owned commercial bank in the country, mitigation measure of risk as per guidelines and direction
SBL extend its hands of cooperation to the destitute of the Bangladesh Bank with the approval of the Board of
people who are largely affected by natural disaster and Directors. A high powered ‘Risk Management Committee’
calamities. The Bank also provides scholarship to the poor comprising five members of the Board of Directors has
but meritorious students for their higher studies every been working as per the directives of Bangladesh Bank to
year. The Bank has donated funds for rehabilitation of the strengthen overall risk management activities.
employees affected in Rana Plaza Tragedy and Earthquake
Outlook for 2019
affected people in Nepal in the recent past. Besides, SBL
takes part in many socio economic activities, cultural and The overall growth performance of the Bangladesh
sports events as the part of CSR. Further, the Bank has a economy was stable in 2017-18 at 7.90 percent due
plan to establish a hospital and an international standard to macroeconomic stability, lower inflation rate, and
school and college under CSR. SBL has always been higher production in the industry and service sector. The
paying respect to social and public welfare rather than prospects are positive with growth being conservatively
orbiting around maximization of profit. SBL energizes from projected at 8.13 percent for 2018-19. The current account
202
balance in the balance of payments is expected to be Some factors may cause actual results to differ and some
benefited from lower oil prices in international market. may significantly deviate from the outlook for 2019. Some
Within the scenario, the financial sector in Bangladesh still of the factors that may affect the business environment
expects to record a steady growth. To make 2019 another are given below:
successful year, SBL is ready to accept the challenges of
2019 with new visionary zeal to achieve the common Changes in the general economic condition resulting
objectives of the Bank and hence the year 2019 will from natural calamities and political disturbances.
definitely be a challenging for everyone at SBL. To achieve Changes in government policy issues.
success in the year, SBL has undertaken the following
short term strategies side by side with midterm and long Increase in corporate tax rate.
term strategies:
Increase in CRR and SLR of the banks.
Initiative will be taken to invest in strategically
important in innovative areas which will focus on Withdrawal of incentive given to some thrust sectors
delivering stronger value added offers to our clients. which may make the projects slow moving.
Steps to accelerate the number of VISA enabled credit Directives to reduce the lending rates to finance
card holders along with further expansion of ATM essential items.
services. Increase in provisioning requirement may reduce the
Integrated approaches through multi-dimensional and ROA and ROE.
customized promotional programs to gear up entire Reducing the margin ratio for investment accounts.
foreign trade including wage earners’ remittance.
Volatility in interest rate.
Pragmatic steps to bring the SME under the main
stream of investment which will facilitate creating Volatility in capital market arising from speculations.
employment opportunities for a large section of
Compliance issues raised by the international forums
population.
which are likely to affect the export growth.
Formulation of an integrated CSR and Green financing
Rise in international prices of essentials which may
policy.
lead to volatility in Foreign Exchange Market.
Steps to strengthen relationship with customers and
International embargo/unrest may adversely affect
pay more attention on client satisfaction, loyalty and
remittances and trade.
retention.
Adverse media reporting.
Special programs for business like ‘Seba-Mash’,
‘Grahok-Somabesh’, ‘Remittance Pokkho’ etc.
To present innovative and new deposit and investment

products to the customers.

AWARDS &
RECOGNITIONS
SI. Name of Award Awarded by Year
1 Bangladesh Bank Remittance Award Bangladesh Bank 2017
2 ICMAB Best Corporate Award-2015 Institute of Cost and Management Accountants, Bangladesh 2016
3 Highest Tax Payer in Banking Sector National Board of Revenue 2016
4 Best Financial Institute of the Year Arthokontho Business Award 2013
5 Best Brand Award Bangladesh Brand Forum 2013
6 Strongest Bank in Bangladesh The Asian Banker 2012
7 Highest Remittance Collecting Bank The Industry 2012
9 Silver Award in Foreign Remittance Collection Centre for the Non-Residance Bangladeshis (NRBs) 2012
11 Best Retial Banker in Bangladesh The Asian Banker 2010
13 ICMAB Best Corporate Award Institute of Cost and Management Accountants, Bangladesh 2008
204
AWARDS AND RECOGNITIONS

PRODUCTS AND
SERVICES OF SBL
Deposits
Time Deposits
1 Fixed Deposits
2 Special Notice Deposits (SND)
3
4
Deposit Pension Scheme
Sonali Bank Special Deposit and Pension Scheme
Loans and Advances
5 Savings Deposits General Advances
6 Non Resident Foreign Currency Deposit (NFCD) and
Resident Foreign Currency Deposit(RFCD) Account 1 Cash Credit: General
7 ATM A/C
-Hypothecation
8 Sonali Deposit Scheme
9 Education Deposit Scheme
2 Cash Credit: General Pledge
10 Medical Deposit Scheme 3 Demand Loan
11 Rural Deposit Scheme 4 Overdraft
12 Monthly Earning Scheme 5 Small Loan
13 Marriage Savings Scheme 6 House Building Loan
14 Double Benefit Scheme
(General)
15 Sonali Bank Daily Profit A/C
7 House Building Loan (Staff)
16 Non-Resident Deposit Scheme
17 School Banking Scheme 8 Other Staff Loans
18 Retirement Savings Scheme 9 Special Small Loan Programme
19 Sonali Bank Retirement Savings Scheme 10 Small Business Loan Scheme
20 Triple Benefit Scheme 11 Lease Finance
21 Sonali Bank Millionaire Scheme 12 Probashi Karma
22 Sonali Krishok Savings Scheme (SKSS)
-sangsthan Rin Prokalpa
13 Term Loan to Freedom Fighters
14 Personal Loan
15 Education Loan
16 Foreign Education Loan
Programme
Industrial Credit
1 Loan under Sonali Bank Industrial
Credit Scheme Rural Credit
2 Laon under External Credit Programme 1 Loan Under Sonali Bank Agro-based
3 Working Capital to Industries-Hypothecation Industrial Cr. Scheme
4 Working Capital to Industries-Pledge 2 Working Capital to Agro-based

Industries-Hypo.
5 SME Finance A/C (Term Loan to Services)
3 Working Capital to Agro-based
6 SME Finance A/C (Term Loan to Industries)
Industries-Pledge
7 SME Finance A/C 4 Agricultural Credit
(Working Capital to Industries and Trading) 5 Micro Credit
206
PRODUCTS AND SERVICES OF SBL
Sundry Deposits
1 Margin on Letters of Credit
2 Margin on Letters of Guarantee
3 Hajj Deposits
4 Employees Contributory Provident Fund
5 Employees General Provident Fund
Demand
6 Sonali Bank Employees Pension Fund
7 Sonali Bank Employees Pension and
8
Death Cum
Retirement Benefit Fund
Deposits
9 Drafts Payable
1 Current Deposits
10 Govt. Drafts Payable 2 Call Deposits
11 Payment Orders Issued 3 Foreign Currency Deposits
12 Foreign Drafts/Travellers Cheque Issued 4 Convertible Tk. A/C
13 Foreign Correspondents Charges 5 Foreign Bank's Deposits
6 Exporter's Foreign
14 Foreign Drafts Payable
Currency Retention Quota
Financial Services
Sl. Inland Remittance Sl. Foreign Remittance
1 Demand Draft (DD) 1 Western Union 5 Xoom Paypal
2 Telephonic Transfer (TT) 2 IME 6 SAMBA
3 Mail Transfer (MT) 3 Trans-fast 7 Hello Paisa South Africa
4 Spot Cash 8 RIA Financial Services
International Trade Finance

1 Loan Against Imported Merchandise (LIM)
2 Loan Against Trust Receipt
3 Forced Loan against Back to Back Letter of Credit
4 Packing Credit
5 Loan Against L/C Under WES
6 Foreign Bills Purchased / Negotiated-Clean
7 Foreign Bills Purchased/Negotiated-Documentary
8 Payment Against Document (PAD)
9 Inland Bills Purchased
Other
Islamic Banking Deposits Services
1 Al-Wadeeah Current Account (AWCA) A. Utility Bills
2 Mudaraba Savings Account (MSA) 1 Electricity Bills Collection of
PDB, REB, DESCO and
3 Mudaraba Special Notice Deposit (MSND)
DPDCL.
4 Mudaraba Term Deposit Account (MTDA) 2 Bills Collection of
5 Mudaraba Hajj Deposit Scheme (MHDS) Titas Gas Company.
6 Mudaraba Monthly Profit Scheme (MMPS) 3 Bills Collection of WASA.
4 Telephone Bills
7 Sonali Monthly Deposit Scheme (SMDS)
Collection of BTCL.
B. Payment
1 Salary and allowances for the teachers of 5.00 5 Widows, Divorcees and destitute Women
(five) lac private Educational institution. allowances.
2 Old age allowances. 6 Allowances to the poor mother.
3 Allowances to 60,000 beneficiaries of Staff 7 Allowances of the disabled people.
Benevolent Board. 8 Allowances to the Acid Burnt Women.
4 Freedom Fighters remuneration and allowances. 9 Stipend /scholarship to the disabled students.
C. Collection
1 e-challan Loans and Advances
2 Land Development tax.
3 Excise duty
4 VAT Islamic Banking
5 Source Tax Investment
6 Travels Tax
7 Hajj Deposit
1 Bai-Murabaha
8 Jakat Fund
9 City Corporation Tax 2 Bai-Muajjal
10 Information delivery in accordance with section 3 Bai-Salam
111 (F), Income Tax Ordinance, 1984. 4 Hire Purchase Under Shirkatul Meelk
11 Activities related to Local Government. 5 Bai-Istisna'a
12 ASYCUDA/Online Customs Duty Collection
208
MEDIA HIGHLIGHTS
MEDIA
HIGHLIGHTS OF SBL

PHOTO
GALLERY
CEO & Managing Directors of Sonali Bank Limited and other Sonali Bank Limited congratulates new Honorable
banks convey hearty congratulations to Honorable Prime Finance Minister A.H.M.Mustafa Kamal, FCA
Minister Sheikh Hasina for leading the country for the 4th time.
Bangladesh Bank Remittance award received by CEO & Agreement between Sonali Bank Limited and BIDA
Managing Director Mr. Md. Obayed Ullah Al Masud
MoU agreement signed between Sonali Bank Limited MANCOM meeting of Sonali Bank Limited
and bKash
210
PHOTO GALLERY
Meeting of Shariah Supervisory Commettee of SBL Inauguration of Treasury function in Benapole Br. Of SBL
Annual Performance Agreement signing ceremony of CSR activities of Sonali Bank Limited
Sonali Bank Limited
Inauguration of SBL’s 104th ATM Booth in BPATC Drawing Arrangement Agreement signing of SBL with
“BRAC Shajan Exchange Limited (UK)

Sonali Bank
Limited
Auditors’ Report
and Financial Statements
as at and for the year ended
31 December 2018
212
FINANCIAL STATEMENTS OF SBL
INDEPENDENT AUDITORS’ REPORT

to the Shareholders of Sonali Bank Limited
Report on the Audit of the Consolidated and Separate the International Ethics Standards Board for Accountants’
Financial Statements Code of Ethics for Professional Accountants (IESBA Code),
Bangladesh Securities and Exchange Commission (BSEC)
Opinion and Bangladesh Bank, and we have fulfilled our other
ethical responsibilities in accordance with the IESBA Code
We have audited the consolidated financial statements of and the Institute of Chartered Accountants of Bangladesh
Sonali Bank Limited and its subsidiaries (the “Group”) as (ICAB) Bye Laws. We believe that the audit evidence we
well as the separate financial statements of Sonali Bank have obtained is sufficient and appropriate to provide a
Limited (the “Bank”), which comprise the consolidated basis for our opinion.
and separate balance sheets as at 31 December 2018 and
the consolidated and separate profit and loss accounts, Key Audit Matters
consolidated and separate statements of changes in equity
and consolidated and separate cash flow statements for Key audit matters are those matters that, in our professional
the year then ended, and notes to the consolidated and judgement, were of most significance in our audit of the
separate financial statements, including a summary of consolidated and separate financial statements of the
significant accounting policies. current period. These matters were addressed in the
context of our audit of the consolidated and separate
In our opinion, the accompanying consolidated financial financial statements as a whole, and in forming our opinion
statements of the Group and separate financial statements thereon, and we do not provide a separate opinion on
of the Bank give a true and fair view of the consolidated these matters. For each matter below our description of
balance sheet of the Group and the separate balance how our audit addressed the matter is provided in that
sheet of the Bank as at 31 December 2018, and of its context.
consolidated and separate profit and loss accounts and
its consolidated and separate cash flows for the year We have fulfilled the responsibilities described in the
then ended in accordance with International Financial auditor’s responsibilities for the audit of the financial
Reporting Standards (IFRSs) as explained in note 2. statements section of our report, including in relation to
these matters.
Basis for Opinion
Accordingly, our audit included the performance of
We conducted our audit in accordance with International procedures designed to respond to our assessment of the
Standards on Auditing (ISAs). Our responsibilities under risks of material misstatements of the financial statements.
those standards are further described in the Auditors’ These results of our audit procedures, including the
Responsibilities for the Audit of the Consolidated and procedures performed to address the matters below,
Separate Financial Statements section of our report. We are provide the basis for our audit opinion on accompanying
independent of the Group and the Bank in accordance with financial statements.
Risk Our response to the risk

Measurement of provision for loans and advances
The process for estimating the provision for loans and ad- We tested the design and operating effectiveness of key
vances portfolio associated with credit risk is significant and controls focusing on the following:
complex. For the individual analysis, these provisions con-
sider the estimates of future business performance and the • Tested the credit appraisal, loan disbursement pro-
market value of collateral provided for credit transactions. cedures, monitoring and provisioning process;
For the collective analysis, these provisions are manually • Identification of loss events, including early warn-
processed that deals with voluminous databases, assump- ing and default warning indicators;
tions and calculations for the provision estimates of com-
• Reviewed quarterly Classification of Loans (CL);
plex design and implementation.
Our substantive procedures in relation to the pro-
At year end 2018 the Group reported total gross loans and vision for loans and advances portfolio comprised
advances of BDT 466,319 million (2017: BDT 425,491mil- the following:
lion) and provision for loans and advances of BDT 49,269
• Reviewed the adequacy of the companies general
million (2017: BDT 41,652 million).
and specific provisions;


We have focused on the significant judgments and esti- • Assessed the methodologies on which the provi-
mates which could give rise to material misstatement or sion amounts based, recalculated the provisions
management bias. and tested the completeness and accuracy of the
underlying information;
Provision measurement is primarily dependent upon key
assumptions relating to probability of default, ability to re- • Finally assessed the appropriateness and presenta-
possess collateral and recovery rates. tion of disclosures against relevant accounting
standards and Bangladesh Bank guidelines.
See note # 7, 13.1 and 13.2 to the financial statements
Valuation of treasury bill and treasury bond
The classification and measurement of T-Bill and T-Bond We assessed the processes and controls put in place by
require judgment and complex estimates. the Group to identify and confirm the existence of finan-
cial instruments. We obtained an understanding, evaluated
In the absence of a quoted price in an active market, the fair the design and tested the operating effectiveness of the key
value of T-Bills and T-Bonds is determined using complex controls over the financial instrument valuation processes,
valuation techniques which may take into consideration including controls over market data inputs into valuation
direct or indirect unobservable market data and complex models, model governance, and valuation adjustments.
pricing models which require an elevated level of judgment.
We tested a sample of the valuation models and the inputs
used in those models, using a variety of techniques, includ-
ing comparing inputs to available market data.
Finally assessed the appropriateness and presentation of

disclosures against relevant accounting standards and
Bangladesh Bank guidelines.
See note # 6 and 17.01 to the financial statements
Measurement of deferred tax assets
The Bank reports net deferred tax assets to totaling BDT We obtained an understanding, evaluated the design and
30,695 million as at 31 December 2018. tested the operational effectiveness of the Group’s key con-
trols over the recognition and measurement of DTAs and
Significant judgment is required in relation to deferred tax the assumptions used in estimating the Group’s future tax-
assets as their recoverability is dependent on forecasts of able income.
future profitability over a number of years.
We also assessed the completeness and accuracy of the
data used for the estimations of future taxable income.
We involved tax specialists to assess key assumptions, con-

trols, recognition and measurement of DTA’s.
Finally we assessed the appropriateness and presentation of

disclosures against IAS 12 Income Tax.
See note # 9.08.01 to the financial statements
Legal and regulatory matters
We focused on this area because the Bank and its subsidiar- We obtained an understanding, evaluated the design and
ies (the “Group”) operate in a legal and regulatory environ- tested the operational effectiveness of the Group’s key con-
ment that is exposed to significant litigation and similar risks trols over the legal provision and contingencies process.
arising from disputes and regulatory proceedings. Such
matters are subject to many uncertainties and the outcome We enquired to those charged with governance to obtain
may be difficult to predict. their view on the status of all significant litigation and reg-
ulatory matters. We enquired of the Group’s internal legal
counsel for all significant litigation and regulatory matters
and inspected internal notes and reports. We also received
formal confirmations from external counsel.
These uncertainties inherently affect the amount and timing We assessed the methodologies on which the provision
of potential outflows with respect to the provisions which amounts are based, recalculated the provisions, and tested
have been established and other contingent liabilities. the completeness and accuracy of the underlying informa-
tion.
Overall, the legal provision represents the Group’s best es-
timate for existing legal matters that have a probable and We also assessed the Group’s provisions and contingent li-
estimable impact on the Group’s financial position. abilities disclosure.
214

IT systems and controls
Our audit procedures have a focus on IT systems and con- We tested the design and operating effectiveness of the
trols due to the pervasive nature and complexity of the IT Group’s IT access controls over the information systems
environment, the large volume of transactions processed that are critical to financial reporting. We tested IT general
in numerous locations daily and the reliance on automated controls (logical access, changes management and aspects
and IT dependent manual controls. of IT operational controls).
Our areas of audit focus included user accessmanagement, This included testing that requests for access to systems
developer access to the production environment and were appropriately reviewed and authorized. We tested the
changes to the IT environment. These are key to ensuring Group’s periodic review of access rights. We inspected re-
IT dependent and application-based controls are operating quests of changes to systems for appropriate approval and
effectively. authorization. We considered the control environment re-
lating to various interfaces, configuration and other applica-
tion layer controls identified as key to our audit.
Where deficiencies were identified, we tested compensat-

ing controls or performed alternate procedures. In addition,
we understood where relevant, changes were made to
the IT landscape during the audit period and tested those
changes that had a significant impact on financial reporting.
Other Information Company Act, 1991 and the Bangladesh Bank Regulations
require the Management to ensure effective internal audit,
Management is responsible for the other information. The internal control and risk management functions of the
other information comprises all of the information in the Bank. The Management is also required to make a self-
Annual Report other than the consolidated and separate assessment on the effectiveness of anti-fraud internal
financial statements and our auditors’ report thereon. The controls and report to Bangladesh Bank on instances of
Annual Report is expected to be made available to us after fraud and forgeries.
the date of this auditor’s report.
In preparing the consolidated and separate financial
Our opinion on the consolidated and separate financial statements, management is responsible for assessing
statements does not cover the other information and we the Group’s and the Bank’s ability to continue as a going
do not express any form of assurance conclusion thereon. concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
In connection with our audit of the financial statements, unless management either intends to liquidate the Group
our responsibility is to read the other information identified and the Bank or to cease operations, or has no realistic
above when it becomes available and, in doing so, consider alternative but to do so.
whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in Those charged with governance are responsible for
the audit or otherwise appears to be materially misstated. overseeing the Group’s and the Bank’s financial reporting
process.
Responsibilities of Management and Those Charged with
Governance for the Consolidated and Separate Financial Auditor’s Responsibilities for the Audit of the
Statements and Internal Controls Consolidated and Separate financial statements
Management is responsible for the preparation and fair Our objectives are to obtain reasonable assurance about
presentation of the consolidated financial statements of whether the consolidated and separate financial statements
the Group and also separate financial statements of the as a whole are free from material misstatement, whether
Bank in accordance with IFRSs as explained in note 2, and due to fraud or error, and to issue an auditor’s report that
for such internal control as management determines is includes our opinion. Reasonable assurance is a high
necessary to enable the preparation of consolidated and level of assurance, but is not a guarantee that an audit
separate financial statements that are free from material conducted in accordance with ISAs will always detect a
misstatement, whether due to fraud or error. The Bank material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if, entities or business activities within the Group to
individually or in the aggregate, they could reasonably be express an opinion on the consolidated financial
expected to influence the economic decisions of users statements. We are responsible for the direction,
taken on the basis of these consolidated and separate supervision and performance of the group
financial statements audit. We remain solely responsible for our audit
opinion.
As part of an audit in accordance with ISAs, we exercise
professional judgement and maintain professional We communicate with those charged with governance
skepticism throughout the audit. We also: regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
• Identify and assess the risks of material any significant deficiencies in internal control that we
misstatement of the consolidated and separate identify during our audit.
financial statements, whether due to fraud or
error, design and perform audit procedures We also provide those charged with governance with
responsive to those risks, and obtain audit a statement that we have complied with relevant
evidence that is sufficient and appropriate to ethical requirements regarding independence, and to
provide a basis for our opinion. The risk of not communicate with them all relationships and other
detecting a material misstatement resulting matters that may reasonably be thought to bear on our
from fraud is higher than for one resulting from independence, and where applicable, related safeguards.
error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the From the matters communicated with those charged
override of internal control. with governance, we determine those matters that were
of most significance in the audit of the consolidated and
• Obtain an understanding of internal control separate financial statements of the current period and
relevant to the audit in order to design are therefore the key audit matters. We describe these
audit procedures that are appropriate in the matters in our auditors’ report unless law or regulation
circumstances. precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter
• Evaluate the appropriateness of accounting should not be communicated in our report because the
policies used and the reasonableness of adverse consequences of doing so would reasonably be
accounting estimates and related disclosures expected to outweigh the public interest benefits of such
made by management. communication.
• Conclude on the appropriateness of Report on other Legal and Regulatory Requirements

management’s use of the going concern basis
of accounting and, based on the audit evidence In accordance with the Companies Act, 1994, the Securities
obtained, whether a material uncertainty and Exchange Rules 1987, the Bank Company Act, 1991
exists related to events or conditions that may and the rules and regulations issued by Bangladesh Bank,
cast significant doubt on the Group’s and the we also report that:
Bank’s ability to continue as a going concern.
If we conclude that a material uncertainty (i) we have obtained all the information and
exists, we are required to draw attention in our explanations which to the best of our knowledge
auditor’s report to the related disclosures in the and belief were necessary for the purpose of our
consolidated and separate financial statements audit and made due verification thereof;
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on (ii) to the extent noted during the course of our
the audit evidence obtained up to the date of audit work performed on the basis stated under
our auditor’s report. However, future events or the Auditor’s Responsibility section in forming
conditions may cause the Group and the Bank to the above opinion on the consolidated financial
cease to continue as a going concern. statements of the Group and the separate
financial statements of the Bank and considering
• Evaluate the overall presentation, structure the reports of the Management to Bangladesh
and content of the consolidated and separate Bank on anti-fraud internal controls and
financial statements, including the disclosures, instances of fraud and forgeries as stated under
and whether the consolidated and separate the Management’s Responsibility for the financial
financial statements represent the underlying statements and internal control:
transactions and events in a manner that achieves
fair presentation. (a) internal audit, internal control and risk
management arrangements of the Group as
• Obtain sufficient appropriate audit evidence disclosed in the financial statements appeared to
regarding the financial information of the be materially adequate;
216
(b) nothing has come to our attention regarding notes dealt with by the report are in agreement
material instances of forgery or irregularity or with the books of account and returns;
administrative error and exception or anything
detrimental committed by employees of the (vii) the expenditures incurred were for the purpose
Group and its related entities; of the Bank’s business for the year;
(iii) financial statements of two subsidiaries namely, (viii) the consolidated financial statements of the
Sonali Exchange Co. Inc. USA, have been Group and the separate financial statements
audited by United Financial CPA P.C, Certified of the Bank have been drawn up in conformity
Public Accountants and Sonali Investment with prevailing rules, regulations and accounting
Limited have been audited by Aziz Halim Khair standards as well as related guidance issued by
Bangladesh Bank;
Choudhury, Chartered Accountants and have
been properly reflected in the consolidated
(ix) adequate provisions have been made for advance
financial statements;
and other assets which are in our opinion,
doubtful of recovery;
(iv) in our opinion, proper books of accounts as
required by law have been kept by the Group (x) the information and explanations required by us
and the Bank so far as it appeared from our have been received and found satisfactory;
examination of those books;
(xi) we have reviewed over 80% of the risk weighted
(v) the records and statements submitted by the assets of the Bank and spent over 2170 person
branches have been properly maintained and hours; and
consolidated in the financial statements;
(xii) Capital to Risk-weighted Asset Ratio (CRAR)
(vi) the consolidated balance sheet and consolidated as required by Bangladesh Bank has been
profit and loss account together with the annexed maintained adequately during the year.
S. F. Ahmed & Co.

Chartered Accountants Howladar Yunus & Co.
Date : 29 April 2019
Place : Dhaka

Sonali Bank Limited and its subsidiaries

Consolidated Balance Sheet
as at 31 December 2018
2018 2017
Particulars Note
Taka Taka
PROPERTY AND ASSETS
Cash 3.00 98,128,039,198 87,995,987,763
Cash in Hand (Including Foreign Currencies) 5,016,917,890 5,112,714,589
Balance with Bangladesh Bank and its agent Bank(s)
93,111,121,308 82,883,273,174
(Including Foreign Currencies)
Balance with other Banks & Financial Institutions 4.00 107,792,446,613 68,872,230,477
In Bangladesh 84,915,155,405 62,556,320,682
Outside Bangladesh 22,877,291,208 6,315,909,795
Money at Call on Short Notice 5.00 19,723,200,000 22,564,800,000
Investments 6.00 444,464,275,340 462,939,311,828
Government 377,242,876,572 420,729,885,067
Others 67,221,398,768 42,209,426,761
Loans and Advances 7.00 466,319,944,186 425,491,805,397
Loans, Cash Credit, Overdrafts etc. 454,162,344,072 413,854,566,578
Bills Purchased and Discounted 12,157,600,114 11,637,238,819
Fixed Asset including Premises, Furniture and Fixture 8.00 33,380,013,461 33,310,453,736
Other Assets 9.00 137,946,812,451 156,390,797,250
Non-Banking Assets 10.00 - -
Total Assets 1,307,754,731,249 1,257,565,386,451
LIABILITIES AND CAPITAL

Liabilities
Borrowing from other Banks, Financial Institutions & Agents 11.00 659,172,428 714,241,872
Deposits and Other Accounts 12.00 1,093,768,673,168 1,064,225,960,435
Current Accounts & Other Accounts etc 241,660,265,805 238,868,974,602
Bills Payable 13,059,176,136 12,363,905,107
Savings Bank Deposits 348,404,153,498 319,578,769,175
Fixed Deposits 490,645,077,729 493,414,311,551
Other Deposits - -
Other liabilities 13.00 143,318,006,666 126,722,921,087
Total liabilities 1,237,745,852,262 1,191,663,123,394
Shareholders Equity 70,008,878,987 65,902,263,057
Paid up Capital 14.00 45,300,000,000 41,300,000,000
Statutory Reserve 15.00 11,449,953,229 10,199,682,013
Other Reserve 16.00 117,000,000 117,000,000
Revaluation Reserve 17.00 26,727,841,844 28,920,784,692
Surplus in Profit and Loss Account/Retained Earnings 18.00 (13,585,916,086) (14,635,203,648)
Total Liabilities and Shareholders' Equity 1,307,754,731,249 1,257,565,386,451
218

Consolidated Balance Sheet
2018 2017
Particulars Note
Taka Taka
Contingent Liabilities
Acceptances and Endorsements 19.00 1,097,371,824,981 1,148,178,041,205
Letters of Guarantee 5,883,424,909 3,329,652,912
Irrevocable Letters of Credit 1,084,431,849,024 1,139,460,108,558
Bills for Collection 7,056,551,048 5,388,279,735
Other Contingent Liabilities - -
Other Commitments
Documentary credits and short term trade related transactions - -
Forward asset purchased and forward deposit placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Claim against the bank not acknowledged as debt - -
Litigation pending against Bank - -
Total Off Balance Sheet Items including Contingent Liabilities 1,097,371,824,981 1,148,178,041,205
Net Asset Value per Share (NAVPS) 154.54 159.57
These financial statements should be read in conjunction with the annexed notes 1 to 48.
Subhash Chandra Das FCMA, FCA Md. Obayed Ullah Al Masud

Chief Financial Officer CEO & Managing Director
A.K.M Kamrul Islam FCA, FCS Muhammed Asadullah

Director Director
Md. Ashraful Moqbul

Chairman
Signed as per our annexed report of even date.
S. F. Ahmed & Co. Howladar Yunus & Co.

Date : 29 April 2019

Place : Dhaka


Consolidated Profit and Loss Account
for the year ended 31 December 2018
2018 2017
Particulars Note
Taka Taka
Operating Income
Interest income 21.00 32,792,018,631 27,762,561,787
Interest paid on deposit and borrowing etc. 22.00 (39,001,563,343) (42,903,178,754)
Net Interest Income (6,209,544,712) (15,140,616,967)
Investment income 23.00 34,359,121,291 34,006,012,795
Commission, exchange and brokerage 24.00 11,179,027,900 12,587,410,820
Other operating income 25.00 257,654,178 313,418,188
45,795,803,369 46,906,841,803
Total Operating Income (A) 39,586,258,657 31,766,224,836
Operating Expenses
Salary and allowances 26.00 13,735,391,168 14,380,692,364
Rent, tax, insurance, electricity etc. 27.00 1,110,156,517 1,030,982,468
Legal expenses 28.00 56,205,246 52,296,007
Postage, stamps and telecommunication etc. 29.00 57,884,886 72,475,437
Printings, stationery, advertisements etc. 30.00 177,294,322 168,067,491
Chief Executive's salary and fees 31.00 7,574,562 9,059,719
Directors' fees 32.00 6,800,500 7,901,489
Auditors' fees 33.00 3,941,292 3,334,834
Depreciation & repair to bank's assets 34.00 556,382,163 507,553,682
Other expenses 35.00 3,529,276,756 3,472,746,623
Total Operating Expenses (B) 19,240,907,412 19,705,110,114
Profit Before Provision, Amortization and Taxes C=(A-B) 20,345,351,245 12,061,114,722
Provision for loans & advances 36.00 7,830,300,000 (468,800,000)
Provision for diminution in value of investment 37.00 957,131,234 471,449,325
Other Provision 38.00 5,221,589,213 2,382,224,121
Total Provision (D) 14,009,020,447 2,384,873,446
Total Profit/(Loss) before taxes E =(C-D) 6,336,330,798 9,676,241,277
Provision for taxation (F) 4,014,992,021 2,515,083,244
Current tax 13.06 480,323,361 472,843,343
Deferred tax 9.08.01 3,534,668,660 2,042,239,901
Net Profit/(Loss) after taxation G=(E-F) 2,321,338,777 7,161,158,033
220

Consolidated Profit and Loss Account
2018 2017
Particulars Note
Taka Taka
Appropriation:
General Reserve - -
Reserve for CSR 19,010,101 3,126,795
1,269,281,317 1,917,932,524
Retained Surplus Carried Forward 1,052,057,460 5,243,225,509
Earnings per Share (EPS) 44.00 5.61 18.68


Director Director
Md. Ashraful Moqbul

Chairman

Date: 29 April 2019

Place: Dhaka


Consolidated Cash Flow Statement
2018 2017
Particulars Note
Taka Taka
A. Cash flows from operating activities
Interest received 62,905,557,411 59,957,792,995
Interest paid (39,746,645,145) (45,396,160,353)
Dividend Received 617,591,645 1,141,607,504
Fee and commission and exchange received 11,204,225,905 11,818,382,626
Recoveries of previously written-off loan & advances 778,400,000 387,062,129
Cash paid to employees (14,578,712,514) (14,419,031,039)
Cash paid to Suppliers (207,849,346) (309,593,791)
Income taxes paid (2,423,498,706) (2,724,637,595)
Cash received from other operating activities 39 257,654,178 313,418,188
Cash paid for other operating activities 40 (3,886,811,510) (4,555,616,956)
Cash generated from operating activities 14,919,911,918 6,213,223,709
Increase/(decrease) in operating assets and liabilities
Loans & advances to customers (40,828,138,789) (38,839,105,180)
Other assets 41 20,074,293,497 53,608,395,629
Deposits from other banks (9,757,557,442) 14,299,021,931
Deposits from customers 39,300,270,175 18,333,350,218
Other liabilities 42 2,853,765,689 (812,031,173)
11,642,633,131 46,589,631,425
Net cash flow from operating activities 26,562,545,048 52,802,855,134
B. Cash flows from investing activities
(Purchase)/Sale of securities & bond 16,285,408,089 1,605,789,606
(Purchase)/sale of property, plant & equipment (578,901,673) (636,542,582)
Net cash flow from investing activities 15,706,506,416 969,247,024
C. Cash flows from financing activities
Proceed from share issue 4,000,000,000 3,000,000,000
Payments for redemption of loan capital & debt security (55,069,444) (55,383,757)
Dividends paid - -
Net cash flow from financing activities 3,944,930,556 2,944,616,243
D. Net increase/decrease in cash and cash equivalents (A+B+C) 46,213,982,021 56,716,718,401
E. Cash and cash-equivalents at beginning of the year 179,494,293,990 122,777,575,589
F. Cash and cash-equivalents at end of the year 43 225,708,276,011 179,494,293,990

A.K.M Kamrul Islam FCA, FCS Md. Ashraful Moqbul Muhammed Asadullah
Director Chairman Director

Date: 29 April 2019

Place: Dhaka
222
Consolidated Statement of Changes in Equity
Share Asset
Statutory Other Revaluation of Retained
Particulars Paid up CapitalMoney Revaluation Total
Reserve Reserve Investment Earnings
Deposit Reserve
Balance as at 01 January 2018 41,300,000,000 - 10,199,682,013 117,000,000 21,495,933,277 7,424,851,415 (14,635,203,647) 65,902,263,058
Surplus/deficit on account of revaluation of - - - - - (2,192,942,848) - (2,192,942,848)
HTM and HFT
Currency translation differences - - - - - - 89,692 89,692
Net Profit/(Loss) for the year (after - - - - - - 2,321,338,777 2,321,338,777
appropriation)
Share money transferred to paid up capital - - - - - - - -
Procced from Share issue during the year 4,000,000,000 - - - - - - 4,000,000,000
Adjustment made for CSR during the period - - - (19,010,101) - - - (19,010,101)
Transferred to Reserve for CSR - - - 19,010,101 - - (19,010,102) -
Transferred to Statutory Reserve - - 1,250,271,216 - - - (1,250,271,216) -
Adjustment of investment in associate (SB UK Ltd) - - - - - - (2,859,590) (2,859,590)
Balance as at 31 December 2018 45,300,000,000 - 11,449,953,229 117,000,000 21,495,933,277 5,231,908,567 (13,585,916,086) 70,008,878,987


Director Director
Md. Ashraful Moqbul
Annual Report 2018

Date: 29 April 2019 Chairman
Place: Dhaka
223
Sonali Bank Limited

Balance Sheet
2018 2017
Particulars Note
Taka Taka
PROPERTY AND ASSETS
Cash 3.00 98,128,039,198 87,995,987,763
Cash in Hand (Including Foreign Currencies) 5,016,917,890 5,112,714,589
Balance with Bangladesh Bank and its agent Bank(s) (Including Foreign
93,111,121,308 82,883,273,174
Currencies)
Balance with other Banks & Financial Institutions 4.00 107,494,384,469 68,568,548,406
In Bangladesh 84,915,142,558 62,555,142,558
Money at Call on Short Notice 5.00 19,723,200,000 22,564,800,000
Investments 6.00 444,051,600,766 462,576,616,876
Government 377,242,876,572 420,729,885,067
Others 66,808,724,194 41,846,731,809
Loans and Advances 7.00 464,083,319,377 423,218,353,943
Loans, Cash Credit, Overdrafts, etc. 451,925,719,263 411,581,115,124
Bills Purchased and Discounted 12,157,600,114 11,637,238,819
Fixed Asset including Premises, Furniture and Fixture 8.00 33,376,576,280 33,306,747,321
Other Assets 9.00 139,985,199,805 158,480,563,053
Non-Banking Assets 10.00 - -
Total Assets 1,306,842,319,895 1,256,711,617,362
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 11.00 659,172,428 714,241,872
Deposit and Other Accounts 12.00 1,093,866,187,769 1,064,311,082,539
Current Accounts & Other Accounts etc. 241,757,780,406 238,954,096,706
Bills Payable 13,059,176,136 12,363,905,107
Savings Bank Deposits 348,404,153,498 319,578,769,175
Fixed Deposits 490,645,077,729 493,414,311,551
Other Deposits - -
Other Liabilities 13.00 142,180,088,518 125,598,823,345
Total Liabilities 1,236,705,448,715 1,190,624,147,756
Shareholders' Equity 70,136,871,180 66,087,469,606
Paid up Capital 14.00 45,300,000,000 41,300,000,000
Other Reserve 16.00 117,000,000 117,000,000
Revaluation Reserve 17.00 26,727,841,844 28,920,784,692
Surplus in Profit and Loss Account/Retained Earnings 18.00 (13,457,923,893) (14,449,997,099)
Total Liabilities and Shareholders' Equity 1,306,842,319,895 1,256,711,617,362
224
Sonali Bank Limited

Balance Sheet
2018 2017
Particulars Note
Taka Taka
Off-Balance Sheet Items
Contingent Liabilities
Acceptances and Endorsements 19.00 1,097,371,824,981 1,148,178,041,205
Letters of Guarantee 5,883,424,909 3,329,652,912
Irrevocable Letters of Credit 1,084,431,849,024 1,139,460,108,558
Bills for Collection 7,056,551,048 5,388,279,735
Other Contingent Liabilities - -
Other Commitments - -
Documentary credits and short term trade related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total Off Balance Sheet items including contingent liabilities 1,097,371,824,981 1,148,178,041,205
Net Asset Value per Share (NAVPS) 154.83 160.02


Director Director
Md. Ashraful Moqbul

Chairman

Date: 29 April 2019

Place: Dhaka

Sonali Bank Limited

Profit and Loss Account
2018 2017
Particulars Note
Taka Taka
Operating Income
Interest income 21.00 32,708,304,286 27,674,490,306
Interest paid on deposit and borrowing etc. 22.00 (39,001,105,869) (42,899,799,505)
Net Interest Income (6,292,801,583) (15,225,309,199)
Investment income 23.00 34,341,089,380 33,955,798,770
Commission, exchange and brokerage 24.00 11,014,677,770 12,410,601,186
Other operating income 25.00 257,416,484 312,120,496
45,613,183,634 46,678,520,452
Total Operating Income (A) 39,320,382,051 31,453,211,253
Operating Expenses
Salary and allowances 26.00 13,573,885,693 14,191,050,179
Rent, tax, insurance, electricity etc. 27.00 1,102,372,828 1,023,543,967
Legal expenses 28.00 56,205,246 52,296,007
Postage, stamps and telecommunication etc. 29.00 57,740,263 72,331,158
Printings, stationery, advertisements etc. 30.00 177,046,937 167,881,378
Chief Executive's salary and fees 31.00 7,574,562 9,059,719
Directors' fees 32.00 6,238,750 7,434,289
Auditors' fees 33.00 3,868,292 3,241,834
Depreciation & repair to bank's assets 34.00 553,928,328 505,413,782
Other expenses 35.00 3,524,144,624 3,466,056,851
Total Operating Expenses (B) 19,063,005,523 19,498,309,164
Profit Before Provision, Amortization and Taxes C=(A-B) 20,257,376,528 11,954,902,089
Provision for loans & advances 36.00 7,830,300,000 (468,800,000)
Provision for diminution in value of investment 37.00 957,131,234 471,449,325
Other provision 38.00 5,218,589,213 2,378,224,121
Total Provision (D) 14,006,020,447 2,380,873,446
Total Profit/(Loss) before taxes E=(C-D) 6,251,356,081 9,574,028,643
Provision for taxation (F) 3,987,141,968 2,482,368,257
Current tax 13.06 451,869,948 438,638,021
Deferred tax 9.08.01 3,535,272,020 2,043,730,236
Net Profit/(Loss) after taxation G=(E-F) 2,264,214,113 7,091,660,386
226
Sonali Bank Limited

Profit and Loss Account
2018 2017
Particulars Note
Taka Taka
Appropriations
General Reserve - -
Reserve for CSR 19,010,101 3,126,795
Dividend etc. - -
1,269,281,317 1,917,932,524
Retained Surplus Carried Forward 994,932,796 5,173,727,862
Earnings per Share (EPS) 44.00 5.47 18.50


Director Director
Md. Ashraful Moqbul

Chairman

Date: 29 April 2019

Place: Dhaka

Sonali Bank Limited

Cash Flow Statement
2018 2017
Particulars Note
Taka Taka
A. Cash flows from operating activities
Interest received 62,821,843,066 59,925,921,761
Interest paid (39,746,187,671) (45,392,781,106)
Dividend Received 599,559,734 1,091,393,479
Fee and commission and exchange received 11,039,875,775 11,641,572,992
Recoveries of previously written-off loan & advances 778,400,000 330,861,882
Cash paid to employees (14,415,616,475) (14,228,734,924)
Cash paid to Suppliers (207,595,643) (308,943,742)
Income taxes paid (2,393,293,556) (2,696,072,634)
Cash received from other operating activities 39 257,416,484 312,120,496
Cash paid for other operating activities 40 (3,874,011,594) (4,542,172,566)
Cash generated from operating activities 14,860,390,120 6,133,165,639
Increase/(decrease) in operating assets and liabilities
Loans & advances to customers (40,864,965,434) (38,680,235,705)
Other assets 41 20,097,805,552 53,359,798,665
Deposits from other banks (9,757,557,442) 14,299,021,931
Deposits from customers 39,312,662,672 18,403,825,597
Other liabilities 42 2,868,456,579 (670,964,691)
11,656,401,927 46,711,445,797
Net cash flow from operating activities 26,516,792,047 52,844,611,436
B. Cash flows from investing activities
(Purchase)/Sale of securities & bond 16,335,387,712 1,479,226,309
(Purchase)/sale of property, plant & equipment (577,508,367) (636,325,377)
Net cash flow from investing activities 15,757,879,345 842,900,932
C. Cash flows from financing activities
Proceed from share issue 4,000,000,000 3,000,000,000
Payments for redemption of loan capital & debt security (55,069,444) (55,383,757)
Dividends paid - -
Net cash flow from financing activities 3,944,930,556 2,944,616,243
D. Net increase/decrease in cash and cash equivalents (A+B+C) 46,219,601,948 56,632,128,611
E. Cash and cash-equivalents at beginning of the year 179,190,611,919 122,558,483,308
F. Cash and cash-equivalents at end of the year 43 225,410,213,867 179,190,611,919


Director Director
Md. Ashraful Moqbul

Place: Dhaka
228
Sonali Bank Limited
Statement of Changes in Equity
Share Asset
Statutory Other Revaluation of Retained
Particulars Paid up CapitalMoney Revaluation Total
Reserve Reserve Investment Earnings
Deposit Reserve
Balance as at 01 January 2018 41,300,000,000 - 10,199,682,013 117,000,000 21,495,933,277 7,424,851,415 (14,449,997,099) 66,087,469,606
Surplus/deficit on account of revaluation of HTM
- - - - - (2,192,942,848) - (2,192,942,848)
and HFT
Net Profit for the year - - - - - - 2,264,214,113 2,264,214,113
Procced from Share issue during the year 4,000,000,000 - - - - - - 4,000,000,000
Adjustment made for CSR during the period - - (19,010,101) - - - (19,010,101)
Transferred to Reserve for CSR - - - 19,010,101 - - (19,010,101) -
Transferred to Statutory Reserve - - 1,250,271,216 - - - (1,250,271,216) -
Adjustment of investment in associate (SB UK Ltd) - - - - - - (2,859,590) (2,859,590)


Director Director
Md. Ashraful Moqbul
Chairman
Date: 29 April 2019
Place: Dhaka
Annual Report 2018

229
230
Sonali Bank Limited
Liquidity Statement, Asset and Liabilities Maturity Analysis
Up to 01 month 1-3 months 3-12 months More than 5 years

Particulars 1-5 years maturity Total
maturity maturity maturity maturity
Assets
Cash in hand 98,128,039,198 - - - - 98,128,039,198
Balance with other banks and financial institutions 6,440,000,000 44,029,070,173 56,880,171,738 145,142,558 - 107,494,384,469
Money at call on short notice 19,723,200,000 - - - - 19,723,200,000
Investments 3,063,490,202 10,593,744,609 41,740,022,423 182,437,343,202 206,217,000,330.00 444,051,600,766

Loans and Advances 29,866,017,745 19,013,257,603 176,166,819,484 111,441,791,762 127,595,432,783 464,083,319,377
Fixed assets including premises, furniture and fixtures 95,644,356 286,933,068 860,799,204 5,738,661,360 26,394,538,292 33,376,576,280
Other assets 342,567,889 1,967,890,987 12,578,765,367 54,324,456,988 70,771,518,574 139,985,199,805
Non-banking assets - - - - - -
Total Assets 157,658,959,390 75,890,896,440 288,226,578,216 354,087,395,870 430,978,489,979 1,306,842,319,895
Liabilities
Borrowings from Bangladesh Bank, other banks
- - - - 659,172,428 659,172,428
financial institutions and agents
Deposits 402,115,378,292 79,113,553,656 412,068,402,144 102,957,083,073 97,611,770,604 1,093,866,187,769
Other accounts - - - - - -
Provision and other liabilities 68,987,665 876,442,546 7,765,542,134 56,543,245,667 76,925,870,506 142,180,088,518
Total Liabilities 402,184,365,957 79,989,996,202 419,833,944,278 159,500,328,740 175,196,813,538 1,236,705,448,715
Net Liquidity Gap (244,525,406,567) (4,099,099,762) (131,607,366,062) 194,587,067,130 255,781,676,441 70,136,871,180
Current and savings deposits do not have any contractual maturity and hence have been classified among all five maturities. Further, it has been assumed that on a going concern basis,
these deposits are not expected to fall below the current year’s level.


Director Director
Md. Ashraful Moqbul

Place: Dhaka
Sonali Bank Limited

Notes to the consolidated and separate financial statements
As at and for the year ended 31 December 2018
1.00 Corporate profile of the Bank and its activities
1.01 Legal status and nature of the reporting entity
Sonali Bank Limited, a state owned largest commercial Bank was incorporated in Bangladesh on 03 June
2007 as a public limited company under the Companies Act 1994 and governed by the Bank Companies Act
1991 (amended 2013). Sonali Bank Limited took over the businesses, assets, liabilities, right, power, privilege
and obligation of erstwhile Sonali Bank (emerged as a Nationalized Commercial Bank in 1972), pursuant to
Bangladesh Bank Nationalization order 1972 (P.O. No. 26 of 1972) on a going concern basis through a vendor
agreement signed between the Ministry of Finance, People’s Republic of Bangladesh on behalf of Sonali Bank
and the Board of Directors on behalf of Sonali Bank Limited on 15 November 2007 with a retrospective effect
from 1 July 2007. The Bank has 1213 branches including two overseas branches at Kolkata and Siliguri in India.
The Bank has two 100% owned subsidiaries named Sonali Exchange Co. Inc. (SECI), USA and Sonali Investment
Limited, Dhaka. It has also two associates named as Sonali Bank (U.K) Ltd. and Sonali Polaris FT Limited.
The registered office of Sonali Bank Limited is located at 35-44 Motijheel Commercial Area, Dhaka-1000 and
the website address is www.sonalibank.com.bd
1.01.01 Principal Activities of the Bank
The principal activities of the bank are to vastly involved to provide a comprehensive range of financial
services:
a) personal and commercial banking, including accepting deposits, remittance, money transfer, foreign
exchange transaction, guarantee, commitments, trade and services, cash management, treasury, securities,
etc. to its customers.
b) Fund based services include short term & long term loans, Project wise industrial credit, discounting and
purchasing bills, consumers and staff loans, House & car loans etc.
c) The Bank also provides custodian services and perform Government treasury functioning as an agent of the
Bangladesh Bank as well through its 643 branches (including 58 chest and 8 sub chest branches).
1.01.02 Islamic Banking Window
Sonali Bank Limited has started banking business based on Islamic Shariah since 29 June 2010. The Islamic
Banking Windows are performing the banking activities through on-line banking through collection of deposit
and investment assistance. The bank operates Islamic Banking window in the following five branches designated
in compliance with the rules of Islamic Shariah:
1.Wage Earners Corporate Branch, Dhaka (Window transferred from Fakirapool Branch, Dhaka.)
2. Agrabad Corporate Branch, Chattogram
3. Khulna Corporate Branch, Khulna
4. Dargagate Corporate Branch, Sylhet
5. Bogura Corporate Branch, Bogura.
Separate financial statement of Islamic Banking Window has been drawn up in the report.
1.02 Subsidiaries of the Bank
Sonali Bank Limited has two 100% owned subsidiaries named Sonali Exchange Co.,Inc. (SECI), USA and Sonali
Investment Limited, Dhaka.
1.02.01 Sonali Exchange Co. Inc. (SECI), USA
A subsidiary company named Sonali Exchange Co. Inc. was incorporated on 4 April 1994 under the laws of
the State of New York, Department of State, licensed on 17 October 1994 by the State of New York Banking
Department and commenced operation as an International Money Remitter from 12 December 1994. The
Company is a wholly-owned subsidiary of Sonali Bank Limited, a fully state owned bank of Bangladesh, which
is also the Company’s ultimate holding company. The principal activities of the Company are to carry on
the remittance business and to undertake and participate in any or all transactions, activities and operations
commonly carried on or undertaken by remittance and exchange house.

1.02.02 Sonali Investment Limited, Dhaka
Sonali Investment Limited was registered under the Company Act 1994 as a Public Company Limited by shares
on 20 April 2010 and commenced its operation from 22 April 2010. The Company obtained registration from
Securities and Exchange Commission as a merchant bank on 28 October 2010. The Company is a wholly-
owned subsidiary of Sonali Bank Limited, a fully state owned bank of Bangladesh, which is also the Company’s
ultimate holding company. The principal activities of the company comprised of merchant banking, portfolio
management, issue management and underwriting and play active role in the Capital Market of Bangladesh .
1.02.03 Accounting Policies of Subsidiaries

The Financial Statements of two subsidiaries have been prepared with consideration and measurement of
all assets, liabilities, income and expenses as well as regularised under Group accounting policies as Parent
Company follows.
IFRS sets out the conditions under which an entity qualifies as a parent undertaking which should prepare
consolidated financial statements for its group-the parent and its subsidiaries. In general an investor that controls
an investee entity is its parent and should account for that entity as a subsidiary. The bank has complied the
applicable IFRS in preparing its separate and consolidated financial statements.
1.03 Associates
1.03.01 Sonali Bank UK. Ltd. (SB. UK. Ltd.)
A money remitting company under the name and style of Sonali Trade and Finance (U.K) Limited was
incorporated as an associate under the U.K. Companies Act 1985 on 30 June 1999. Subsequently the company
was allowed to commence its function as a bank from 7 December 2001 (the operational activities started on
10 December 2001) by the Financial Services Authority of U.K. had changed its name as Sonali Bank (U.K) Ltd.
and restructured the ownership of the Company having 51% share capital in favor of the Government of the
People’s Republic of Bangladesh and remaining 49% by Sonali Bank Limited.
1.03.02 Sonali Polaris FT Limited, Bangladesh
Sonali Polaris FT Limited (hereinafter referred to as the ‘’Company’’ of SPFTL) was incorporated in Bangladesh
as a private Limited company on 25 January 2012 under the Companies Act 1994. The Company commenced
its business operation on 01 February 2012.The principal activities of the Company are to customize, enhance,
modify, and implement Intellect CBS 10.0 Software in Banks. The Company also provides other services like
initiation, development and implementation of computer application systems, etc relevant to the customer
and any other business undertakings. The ownership of the Company having 51% share capital in favor of
Polaris Financial Technology Ltd., India, 35% by Sonali Bank Limited and remaining 10% and 4% by Bangladesh
Commerce Bank Ltd and Pantho Soft Ltd respectively.
2.00 Basis of preparation and significant accounting policies
2.01 Basis of preparation
The consolidated financial statements of the Group and the financial statements of the Bank as at and for the
year ended 31 December 2018 have been prepared under the historical cost convention except investments
and in accordance with the “First Schedule” (section 38) of the Banking Companies Act 1991 (Amended 2013),
and Bangladesh Bank (the Central Bank of Bangladesh) through BRPD Circular no. 14 dated 25 June 2003, other
Bangladesh Bank Circulars, International Financial Reporting Standards (IFRSs), the Companies Act 1994, the
Securities and Exchange Rules 1987 and other laws and rules applicable in Bangladesh. In case any requirement
of provisions and circulars issued by Bangladesh Bank differs with those of other regulatory authorities, the
provisions and circulars issued by Bangladesh Bank shall prevail.
2.02 Statement of Compliance
The financial statements have been prepared on a going concern basis following accrual basis of accounting
in accordance with the “”First Schedule (Section 38) of the Banking Companies Act 1991 (amended in 2013)
and BRPD circular no. 14 dated 25 June 2003, BRPD circular no. 15 dated 9 November 2009, other Bangladesh
Bank Circulars, International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs),
Financial Accounting Standards issued by the Accounting and Auditing Organization for Islamic Financial
Institutions, Bahrain etc.
232
The Bank also complied with the requirement of the following regulatory and legal authorities:
i) The Bank Companies Act, 1991 (amended in 2013)
ii) The Companies Act, 1994
iii) Rules, regulations and circulars issued by the Bangladesh Bank from time to time
iv) Securities and Exchange Ordinance 1969
v) Securities and Exchange Commission Act, 1993
vi) Income Tax Ordinance and Rules 1984
vii) VAT Act, 1991
viii) Labor Act, 2006 (amended 2013)
However, the Group and the Bank has departed from some requirements of IFRSs in order to comply with the
rules and regulations of Bangladesh Bank which are disclosed below:
2.02.01 Investment in shares and securities
IFRS: As per requirements of IFRS 9 investments in shares and securities generally falls either under “at fair value
through profit and loss Account” or under “at fair value through other comprehensive income” or “Amortised
cost” where any change in the fair value (as measured in accordance with IFRS 13) at the year-end is taken to
profit and loss Account or revaluation reserve account respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquoted
shares are revalued at the year end at market price and as per book value of last audited balance sheet
respectively. Provision should be made for any loss arising from diminution in value of investment; otherwise
investments are recognised at cost.
2.02.02 Revaluation gain/loss on Government securities
IFRS: As per requirement of IFRS 9, T-bills and T-bonds fall under the category of held for trading” and held to
maturity” where any change in the fair value of held for trading is recognised in Profit and Loss Account, and
amortised cost method is applicable for held to maturity using an effective interest rate.
Bangladesh Bank: According to Department of Offsite Supervision (DOS) of Bangladesh Bank Circular no. 5
dated 26 May 2008 and subsequent clarification in DOS Circular no. 5 dated 28 January 2009 of Bangladesh
Bank, loss on revaluation of Government securities (Treasury Bill (T-bill)/ Treasury Bond (T-bond) which are
categorised as held for trading should be charged through Statement of Comprehensive Income (Profit and
Loss Account), but any gain on such revaluation should be recorded under Revaluation Reserve Account.
However, at the year-end if there is any revaluation gain for any particular held for trading T-bills/T-bonds; such
gain can be used to the extent of any revaluation loss for that particular held for trading T-bills/T-bonds. T-bills
designated as held to maturity are measured at amortized cost method but interest income / gain should be
recognized through reserve.
2.02.03 Provision on loans and advances/investments
IFRS: As per IFRS 9 an entity should start the impairment assessment by considering whether objective
evidence of impairment exists for financial assets that are individually significant. For financial assets which are
not individually significant, the assessment can be performed on an individual or collective (portfolio) basis.
Bangladesh Bank: As per BRPD Circular No. 14 (23 September 2012), BRPD circular No.19 (27 December
2012), BRPD circular No.05 ( 29 May 2013), BRPD Circular No. 8 (02 August 2015) and BRPD Circular No. 01
(20 February 2018) a general provision at 0.25% to 5% under different categories of unclassified loans (good/
standard loans) has to be maintained regardless of objective evidence of impairment. Also provision for sub-
standard loans, doubtful loans and bad losses has to be provided at 20%, 50% and 100% respectively for loans
and advances depending on the duration of overdue. Again as per BRPD circular no.10 dated 18 September
2007 and BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is required to be provided
for all off-balance sheet exposures. Such provision policies are not specifically in line with those prescribed by
IFRS 9.
2.02.04 Recognition of interest in interest suspense account
IFRS: Loans and advances to customers are generally classified as ‘loans and receivables’ as per IFRS 9 and interest
income is recognized through effective interest rate method over the term of the loan. Once a loan is impaired,
interest income is recognized in profit and loss account on the same IFRS is based on revised carrying amount.

Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on
such loans are not allowed to be recognized as income, rather the corresponding amount needs to be credited
to interest suspense account, which is presented as liability in the balance sheet.
2.02.05 Other comprehensive income
IFRS: As per IAS 1, Other Comprehensive Income (OCI) is a component of financial statements or the elements
of Other Comprehensive Income (OCI) are to be included in a Single Comprehensive Income (SCI) Statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by
all banks. The templates of financial statements issued by Bangladesh Bank do not include Other Comprehensive
Income; and the elements of Other Comprehensive Income are also not allowed to be included in a Single
Comprehensive Income (SCI) Statement. As such the company does not prepare the Other Comprehensive
Income statement. However elements of SCI, if any, are shown in the statement of changes in equity.
2.02.06 Financial instruments - presentation and disclosure
In several cases Bangladesh Bank guidelines categories, recognize, measure and present financial instruments
differently from those prescribed in IFRS 9. As such full disclosure and presentation requirements of IFRS 7 and
IFRS 9 cannot be made in the financial statements.
2.02.07 REPO Transactions
IFRS: When an entity sells a financial assets and simultaneously enters into an agreement to repurchase the
asset (or a similar asset) at a fixed price on a future date (REPO or stock lending), the arrangement is accounted
for as a deposit, and the underlying asset continues to be recognized in the entity’s financial statements. This
transaction will be treated as loan and the difference between selling price and repurchase price will be treated
as interest expenses.
Bangladesh Bank : As per BRPD guidelines, when a bank sells a financial asset and simultaneously enters into an
agreement to repurchase the assets (or a similar asset) at a fixed price on a future date (REPO or stock lending),
the arrangement is accounted for as a normal sales transactions and the financial assets are derecognized in
the seller’s book and recognized in the buyer’s book.
2.02.08 Financial guarantees
IFRS: As per IFRS 9, financial guarantees are contracts that require an entity to make specified payments
to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in
accordance with the terms of a debt instrument. Financial guarantee liabilities are recognized initially at their
fair value, and the initial fair value is amortized over the life of the financial guarantee. The financial guarantee
liability is subsequently carried at the higher of this amortized amount and the present value of any expected
payment when a payment under the guarantee has become probable. Financial guarantees are included within
other liabilities.
Bangladesh Bank: As per BRPD 14, financial guarantees such as letter of credit, letter of guarantee will be treated
as off-balance sheet items. No liability is recognized for the guarantee except the cash margin.
2.02.09 Cash and cash equivalents
IFRS: Cash and cash equivalents items should be reported as cash item as per IAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as ‘money at call and on short notice’, Treasury
bills, Prize bond are not shown as cash and cash equivalent. Money at call and on short notice is shown as face
item in balance sheet, and Treasury bills, Prize bonds are shown in Investment.
2.02.10 Non-banking assets
IFRS: No indication of non banking assets is found in any IFRS.
Bangladesh Bank: As per BRPD Circular No. 14 dated 25 June 2003, there must exist a face item named Non-
banking asset.
2.02.11 Cash flow statement
IFRS: Cash flow statement can be prepared either in direct method or in indirect method. The presentation
is selected to present these cash flows in a manner that is most appropriate for the business or industry. The
method selected is applied consistently.
Bangladesh Bank: As per BRPD Circular No. 14 dated 25 June 2003, cash flow is a mixture of direct and indirect methods.
234
2.02.12 Balance with Bangladesh Bank (CRR)
IFRS: Balance with Bangladesh Bank should be treated as other assets as it is not available for use in day to day
operations as per IAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
2.02.13 Presentation of intangible asset
IFRS: An intangible asset must be identified and recognized, and the disclosure must be given as per IAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD Circular No. 14 dated June 25, 2003.
2.02.14 Off balance sheet items
IFRS: There is no concept of off balance sheet items in any IFRS; hence there is no requirement of disclosure
of off balance sheet.
Bangladesh Bank: As per BRPD Circular No. 14 dated June 25, 2003, off balance sheet items (e.g. Letter of
credit, Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
2.02.15 Loans and advance net of provision
IFRS: Loans and advances should be presented net of provisions.
Bangladesh Bank: As per BRPD 14, provision on loans and advances are presented separately as liability and
cannot be netted off against loans and advances.
2.03 Basis of measurement
“The financial statements of the Bank have been prepared on the historical cost basis except for the
following material items:
a) Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present value using mark to
market concept with gain crediting to revaluation reserve.
b) Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ and Re-measured
Government Treasury Bond at present value using amortization concept.
c) Investment in shares of listed companies.
d) Land and Buildings is recognized at the time of acquisition and subsequently measures at fair value as per
IAS 16 (Property, Plant and Equipment).
The accounting policies unless otherwise stated , have been consistently applied by the bank and are
consistent with those of the previous year.
2.04 Basis of consolidation
A separate set of records for consolidation of the statement of affairs and income and expenditure of the
branches are maintained at the Head Office of the Bank based on which these financial statements have been
prepared.
The consolidated financial statements comprise of the financial statements of Sonali Bank Limited, including
overseas branches Kolkata and Siliguri, Subsidiaries-Sonali Investment Limited and Sonali Exchange Co. Inc.
(SECI), USA as well as associates Sonali Bank (U.K) Ltd. and Sonali Polaris FT Ltd. as at 31 December 2018.
2.04.01 Subsidiaries
Subsidiaries are entities controlled by the group. In compliance with IFRS 10 “Consolidated Financial Statements”,
the financial statements of subsidiaries are included in the Consolidated Financial Statements from the date
that control commences until the date the control ceases.
2.04.02 Associates
In compliance with the requirement of IAS 28 “Investment in Associates”, the accounting treatment regarding
investment in associates have been addressed.

Conversion policy
The conversion policy of Sonali Exchange Co. Inc. and Sonali Bank UK Ltd. is as follows:
Particulars Currency conversion rate SECI SB.UK. Ltd.

For assets & Liabilities Closing rate USD to BDT GBP to BDT
For income & Expenses Average rate USD to BDT GBP to BDT
2.04.03 Transactions eliminated on consolidation
Intra-group balances and transactions and any unrealized income and expenses arising from intra-group
transactions are eliminated in preparing the Consolidated Financial Statements. Unrealized gains arising from
transactions with equity accounted investees are eliminated against the investment to the extent of the group’s
interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the
extent there is no evidence of impairment.
2.05 Use of estimates and judgments
The preparation of the consolidated financial statements of the Group and the financial statements of the Bank
in conformity with Bangladesh Bank Circulars and IFRSs requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities,
income and expenses. Actual result may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised and in any future period affected.
Information about significant areas of estimation uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognized in the consolidated financial
statements.
2.06 Changes in accounting estimate and errors
The effect of a change in an accounting estimate shall be recognized prospectively by including it in profit or
loss in:
(a) the period of the change, if the change affects that period only; or
(b) the period of the change and future periods, if the change affects both. To the extent that a change in
an accounting estimate gives rise to changes in assets and liabilities, or relates to an item of equity, it shall
be recognized by adjusting the carrying amount of the related asset, liability or equity item in the period of
the change. Material prior period errors shall be retrospectively corrected in the first financial statements
authorized for issue after their discovery by:
(i) restating the comparative amounts for the prior period(s) presented in which it is required to make
proper comparison; or
(ii) if the error occurred before the earliest prior period presented, restating the opening balances of
assets, liabilities and equity for the earliest prior period presented.
2.07 Books of account
The Company maintains its books of account for main business in electronic form through soft automation.
The accounts of Sonali Bank are generally kept on the double entry system the day book, the general ledger,
the cash book, the current account ledger, the deposit account ledger, the bill books etc.
2.08 Foreign currency transactions
2.08.01 Functional and presentational currency
Financial statements of the Bank are presented in Taka, which is the Bank’s functional and presentational currency.
2.08.02 Foreign currency transactions
Foreign currency transactions are converted into equivalent Taka currency at the ruling exchange rates on the
respective dates of such transactions as per IAS 21 “The effects of Changes in Foreign Exchange Rates”.
Assets and liabilities in foreign currencies at 31 December 2018 have been converted into Taka currency at the
average of the prevailing buying and selling rates of the relevant foreign currencies at that date except Balances
with other Banks and Financial Institutions which have been converted as per directives of Bangladesh Bank
vide its circular no. BRPD(R) 717/2004-959 dated 21 November 2004.
236
2.08.03 Commitment
Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements are
translated at contracted rates. Contingent liabilities/commitments for letter of credit, letter of guarantee and
acceptance denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on
the date of balance sheet.
2.08.04 Foreign operation
The assets & liabilities of foreign operations are translated to Bangladeshi Taka at exchange rate prevailing at
the statement of financial position (balance sheet) date. The income & expenses of foreign operations are
translated at average rate of exchange for the year. Foreign currency differences are recognized and presented
in the foreign currency translation reserve in equity. When a foreign operation is disposed of such that control,
the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss
as part of the gain or loss on disposal. When the Group disposes as the only part of its interest in a subsidiary
that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is
reactivated to non-controlling interest.
2.08.05 Translation gain and losses
Gains or losses arising out of translation of foreign exchange have been included in the Profit and Loss Accounts
and in Balance Sheet.
2.09 Materiality, aggregation and offsetting
The Bank presents separately each material class of similar items and presents separately items of a dissimilar
nature or function unless those are immaterial. The Bank did not offset assets and liabilities or income and
expense, unless required or permitted by IFRS.
2.10 Cash Flow Statement
Cash Flow Statement is prepared principally in accordance as per the guidelines of BRPD Circular no.14 dated
25 June 2003 and International Accounting Standard (IAS-7) “Cash flow Statement”. The Cash Flow Statement
shows the structure of and changes in cash and cash equivalents during the year. Cash Flows during the year
have been classified as operating activities, investing activities and financing activities.
2.11 Statement of Changes in Equity
The statement of changes in equity reflects information about increase or decrease in net assets or wealth.
Statement of changes in equity has been prepared in accordance with Bangladesh Accounting Standards IAS 1
“Presentation of Financial Statements” and relevant guidelines of Bangladesh Bank.
2.12 Branch Accounting
The Bank has 1215 branches including two overseas branches as on 31 December 2018. Accounts of the
branches are maintained at the branch level and for consolidation a separate set of records of the statement
of affairs and income and expenditure of the branches are compiled at the Head Office of the Bank based on
which these financial statements have been prepared.
2.13 Liquidity statement (Asset and Liability Maturity Analysis)
The liquidity statement has been prepared in accordance with remaining maturity grouping of Assets and
Liabilities as of the close of the year as per following bases;
Particulars Basis
Balance with other banks and financial institutions Maturity term;
Investments Residual maturity term
Loans and advances Repayment/Maturity schedule
Fixed assets Useful lives
Other assets Adjustment
Borrowings from other banks and financial institutions Repayment/Maturity schedule
Deposits and other accounts Maturity term and Behavioral past trend
Other long term liability Maturity term;
Provisions and other liabilities Settlement

2.14 Events after the Reporting Period
Events after the reporting period that provide additional information about the company’s position at the
balance Sheet date are reflected in the financial statements in Note no. 48 as per International Accounting
Standards IAS 10 “Events after the Reporting Period”.
2.15 Going Concern
The accompanying financial statements have been prepared on a going concern basis, which contemplates
the realization of assets and the satisfaction of liabilities in the normal course of business. The accompanying
financial statements do not include any adjustments should the bank be unable to continue as a going concern.
2.16 Assets and the basis of their valuation
The accounting policy have been applied consistently to all periods presented in this consolidated financial
statements and those of the bank and have been applied consistently by the group entities except as explain
in Note 2.02.
2.16.01 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank
and highly liquid financial assets which are subject to insignificant risk of changes in their fair value, and are
used by the bank management for its short term commitments as well as prize bond.
2.16.02 Investments
All investments are initially recognized at cost, including acquisition charges associated with the investment.
Premiums are amortized and discount accredited, using the effective or historical yield method. Accounting
treatment of government treasury bills and bonds (categorized as HFT or/and HTM) is made following
Bangladesh Bank DOS circular letter no. 5 dated 26 May 2008 and as amended on 28 January 2009 and DOS
Circular letter no. dated 19 January 2012.
2.16.02.01 Held to Maturity (HTM)
Investments (financial instruments) which have fixed or determinable maturity date and the bank has no
intention to sell before their maturity date irrespective of changes in market prices or the bank’s financial
position or performance are grouped as held to maturity. Government Treasury Bills, Government Treasury
Bonds and other securities approved for statutory liquidity reserves have been classified as held to maturity
financial asset. These are measured at amortized cost at each year end by taking into account any discount or
premium in acquisition. Any increase or decrease in value of such investments is booked to equity.
2.16.02.02 Held for Trading (HFT)
The securities under this category are the securities acquired by the bank with the intention to trade by taking
advantages of short term price/interest movement, and the securities those are classified as HFT by the Bank
held in excess of SLR (net of CRR) at a minimum level. Investments classified in this category are principally for
the purpose of selling or repurchasing on short trading or if designated as such by the management. In this
category, investments are measured in fair value and any change in the fair value i.e. profit or loss on sale of
securities in HFT category is recognized in the Profit and Loss Account.
Value of investments is stated as per the following bases:
Particulars Valuation Method

Government Securities:
Government Treasury Bills Present Value
Prize Bonds Cost Price
Bangladesh Bank Bills Cost price
Special Treasury Bonds Present Value
Reverse Repo Cost Price
Debentures of Govt. Corporations Cost price
Other Investments (Quoted Shares) Market Price
Other Investments ( Other than Quoted Shares) Cost Price
238
2.16.02.03 REPO and Reverse REPO
Since 1 September 2010 transactions of REPO and Reverse REPO are recorded based on DOS Circular No. 6,
dated 15 July 2010 of Bangladesh Bank. In case of REPO of both coupon and non-coupon bearing (Treasury
bill) security, Sonali Bank Limited adjusted the Revaluation Reserve Account for HFT securities and stopped
the weekly revaluation (if the revaluation date falls within the REPO period) of the same security. For interest
bearing security, SBL stopped the accrual of interest during REPO period.
2.16.02.04 Investment in Quoted and unquoted securities
Investments in equity instruments/shares that are not quoted in active market are not measured at fair value
due to absence of information required to measure in fair value reliably; so these are presented at cost. The
equity instruments that are quoted in active market are measured at fair value. Details of quoted and unquoted
shares are shown in annexure - F.
2.16.02.05 Derivative Investments
Derivatives are financial instruments that derive their value in response to changes in interest rates, financial
instrument prices, commodity prices, foreign exchange rates, credit risk and indices.
Derivatives are categorised as trading unless they are designated as hedging instruments.
All derivatives are initially recognized and subsequently measured at fair Value, with all revaluation gains
recognised in the Income Statement ( except where cash flow or net investment hedging has been achieved,
in which case the effective portion of changes in fair value is recognized within other comprehensive income).
As a derivative product the bank used SWAP in 2018.
2.16.02.06 Revaluation of investment
As per the DOS (BB) Circular letter no. 05 dated 26 May 2008 & subsequent amended circular no. 05 dated
28 January 2009, HFT (Held for Trading) securities are revalued on weekly basis and HTM (Held to Maturity)
securities are amortized on yearly basis. The HTM securities are also revalued if they are reclassified to HFT
category with the Board’s approval. Any gain or loss on revaluation of HTM securities is recognized in the
statement of changes in equity. Gain/(Loss) on revaluation of HFT securities is recognized in the profit and loss
account on weekly basis and gain on revaluation is transferred to statement of changes in equity on monthly
basis.
Initial Measurement after

Investment class Recording of changes
Recognition initial recognition
Loss to P & L, gain to Revaluation
Govt. T-bills/bond (HFT) Cost Face value
Reserve through P & L
Govt. T-bills/bond (HTM) Cost Amortized cost Increase or decrease in value to equity
Debenture/Bond Face value Face value None
Loss to P & L, gain to Revaluation
Investment in listed securities Cost Fair value
Reserve
Prize bond Cost Cost None
2.16.02.07 Investments in subsidiary
Investment in subsidiaries is accounted for under the cost method of accounting in the Banks financial
statements in accordance with International Accounting Standard (IAS) 27. Accordingly, investments in
subsidiaries are stated in the Banks balance sheet at cost, less impairment losses if any.
2.16.02.08 Statutory and Non-statutory Investment
Statutory Investments
Amount which is invested for maintaining statutory liquidity ratio according to MPD circular no. 02 dated 10
December 2013 and DOS circular no. 01, dated 19 January 2014 of Bangladesh Bank is treated as statutory
investment, these includes treasury bill, treasury bond, other govt. securities etc. Details of statutory investment
have been given in note -6.03.01
Non- Statutory Investments
All investment except statutory investment is treated as non -statutory investment such as debentures corporate
bond , ordinary share (quoted and unquoted), preference share etc. Details of non-statutory investment have
been given in note-6.03.02

2.16.02.09 Investments in associates
Investment in associates is accounted for in the books of financial statements of the Bank, in accordance with
the International Accounting Standard (IAS) 28 ‘Investments in Associates’.
2.16.02.10 Investment and related income
(a) Income on investments other than shares is accounted for on accrual basis concept; and
(b) Dividend income on investment in shares is accounted for in the year when right has been established.
2.16.03 Loans and advances and its provisions
Loans and advances are stated at gross amount. General Provisions on unclassified loans and Off-Balance
Sheet Items, specific provisions for classified loans and interest suspense account thereon are shown under
other liabilities. Provision is made on the basis of quarter end against classified loans and advances review by
the management and instruction contained in BRPD Circular no. 14 dated 23 September 2012 BRPD circular
no. 19 dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013, BRPD circular no. 08 dated 02
August 2015 and BRPD circular no. 01 dated 20 February 2018.
2.16.03.01 Interest on loans and advances
i) Interest is calculated on unclassified loans and advances and recognized as income during the year;
ii) Interest calculated on classified loans and advances as per Bangladesh Bank Circulars is kept in interest
suspense account and credited to income on realization;
iii) Interest is calculated on daily product basis but debited to the party’s loan account quarterly. No interest
is charged on loans and advances which are classified as bad and loss;
iv) Total balance of loans and advances as on 31 December 2018 includes bad/loss loan Taka 1,09,935.20
million on which the Bank did not accrue any interest because of deterioration of quality of loans and
advances determined by the management and on the basis of instructions contained in Bangladesh Bank
Circulars as mentioned in Note 2.16.03 of this financial statements; and
v) Interest suspense and penal interest, if any, calculated on classified loans and advances are taken into
income in the year of its receipt from the defaulting borrowers.
2.16.03.02 Provision for loans and advances
Provision for loans and advances are made on quarter basis as well as year-end review by management following
instructions contained in BRPD Circulars issued by Bangladesh Bank. General Provision on unclassified loans
and advances and specific provision on classified loans & advances are given below:
Rate of provision:
Consumer Financing
Loan
Short term All other
Particulars Other Than SMEF to BHs/
agri- credit HF LP credit
HF & LP MBs/ SDs
Standard 1.00% 5% 1% 2% 0.25% 2% 1%

Unclassified
SMA 0% 5% 1% 2% 0.25% 2% *1%
SS 5% 20% 20% 20% 20% 20% 20%
Classified DF 5% 50% 50% 50% 50% 50% 50%
BL 100% 100% 100% 100% 100% 100% 100%
*In line with BRPD Circular no. 04, dated 29 January 2015, provision for restructured loan is calculated @ 2%.
2.16.03.03 Presentation of loans and advances
Loans and advances are shown at gross amount as assets while interest suspense and loan loss provision
against classified advances are shown as liabilities in the statement of financial position.
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2.16.03.04 Write off loans and advances
Loans and advances/investments are written off as per guidelines of Bangladesh Bank. These written
off however will not undermine/affect the claim amount against the borrower. Detailed memorandum
records for all such written off accounts are meticulously maintained and followed up.
2.16.03.05 Securities against Loan
Project loan: Land and building are taken as security in the form of mortgage and plant & machinery are taken
in the form of hypothecation.
Working capital and trading loan: Goods are taken as security in the form of pledge and also goods are taken
as security in the form of hypothecation along with land and building as mortgage (value not less than 1.50
times covering the loan amount) in the form of collateral security.
House building loan: Land and building are taken as security in the form of mortgage.
Overdraft: FDRs are taken in pledge. The balance in DPS/JBSPS/SDPS A/C’s is taken in “lien”.
Public sector loan: In most cases Govt. Guarantee is taken and no security is taken for government loan
and Crops loans in agriculture sector.
2.16.04 Bills Purchased and Discounted
a) Bills purchased and discounted do not include Government Treasury bills and have been classified into
two sub-heads viz
i) Payable outside Bangladesh,
ii) Payable in Bangladesh and
b) The bills purchased and discounted have been analyzed in the form/terms as per the maturity grouping.
2.16.05 Property, Plant and Equity
2.16.05.01 Recognition and Measurement
All Property, plant and equipment are classified and grouped on the basis of their nature as required in IAS 1
“Presentation of Financial Statements”. The major categories of Property, plant and equipment held by the bank
are property (Premises & Buildings), Library Book, Furniture and fixtures, Electrical Installations, Typewriters
and Calculating machines, Computer/Software, Motor Car and other vehicles. As per Para 31 of IAS 16 after
recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably
shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent
accumulated depreciation and subsequent accumulated impairment losses.
All Fixed Assets are stated at cost less accumulated depreciation as per IAS 16 “Property, Plant & Equipment”.
The Cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing
the assets to its working condition for its intended use inclusive of inward freight, duties and non-refundable
taxes.
The bank recognizes in the carrying amount of an item of property plant and equipment’s the cost of replacing
part of such an item when that cost is incurred if it is probable that the future economic benefits embodied
with the item will flow to the bank and the cost of the item can be measured reliably. Expenditure incurred after
the assets have been put into operation, such as repairs and maintenance is normally charged off as revenue
expenditure in the period in which it is incurred.
As guided in paragraph 30 of IAS 16 “Property Plant and Equipment” these are capitalized at cost of acquisition
and subsequently stated at cost less accumulated depreciation. The cost of acquisition of an asset comprises
its purchase price and directly attributable cost of bringing the assets to its working condition for its intended
use inclusive of inward fright, duties and refundable taxes. The opening and closing carrying amounts of all
property and equipment are presented including the amount of additions, disposals and depreciation charged
during the year as required by paragraph 73 of IAS 16. Repairs and Maintenance expenses that does not increase
in the future economic benefit of assets is charged to profit & loss account.
2.16.05.02 Depreciation
As required of IAS 16 “Property Plant and Equipment” depreciation has been charged at the following rates
on reducing balance method on all fixed assets other than motor vehicles and computer software which are
depreciated on straight line basis and no depreciation on land is charged.

Category of fixed assets Rate of depreciation

Land 0%
Building 2.50%
Library 7%
Furniture and Fixtures 10%
Electrical Installation 20%
Typewriters and Calculating machines 20%
Computer/ Software 20%
Motor Car and other vehicles 20%
Depreciation on newly acquired assets is charged from the date of take it in use and no depreciation is charged
on assets for the period which are taken in use after 20th December of the year. In case of assets disposed of,
depreciation is charged up to the date of disposal of such assets. During the year overseas branches shown
Taka 1,934,341.00 as depreciation on fixed assets and certified by the local independent auditors.
2.16.05.03 Disposal of fixed assets
On the disposal of fixed assets, the cost and accumulated depreciation are eliminated from the fixed assets
schedule and gains or losses on such disposal are reflected in the statement of comprehensive income (profit
and loss account) as per provision of IAS 16 “Property, Plant and Equipment”.
2.16.05.04 Revaluation of fixed assets
The fixed assets of the Bank have been revalued three times. In the year of 2007, following the instruction of
vendor’s agreement signed between Sonali Bank Ltd. and Ministry of Finance, revaluation of all assets had been
done and total value enhanced by Taka 8,833.82 million. Subsequently, in 2011 revalued by Taka 12,026.80
million and lastly in the year 2013 by Taka 9,469.13 million. No revaluation has been made during the year 2018.
2.16.05.05 Impairment
The carrying amount of the assets should be reduced to its recoverable amount when carrying amount of an
asset is exceeding the recoverable amount of that asset. That reduction is an impairment loss hence recognized
as expenses in the statement of comprehensive income (profit and loss account).
2.16.06 Other Assets
Other assets comprise investment in subsidiaries (Sonali Exchange Co. Inc. (SECI), USA and Sonali Investment
Limited), Prepaid Expenses, Branch adjustment, fees and unrealised income receivable, advance for operating
and capital expenditure and stocks of stationery and stamp. Details are shown in Note-9. and others as per
Bangladesh Bank Circulars. Receivables are recognized when there is a contractual right to receive cash or
another financial asset from another entity.
2.16.06.01 Classification of other assets
Other assets have been classified as per BRPD Circular no. 14 dated 25 June 2001 of Bangladesh Bank and for
items not covered under the circular, classification have been made considering their realize ability.
2.16.06.02 Written off of other assets
Other assets having no realistic prospect of recovery have been written off against full provision without
reducing the claimed amount of the Bank. Notional balances against other assets written off have been kept to
maintain the detailed memorandum records for such accounts/assets.
2.16.07 Intangibles assets
An intangible asset is recognized only when its cost can be measured reliably and it is probable that the
expected future economic benefits that are attributable to it will flow to the Bank. Intangible assets acquired
separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is their fair value as at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of
intangible assets are assessed to be either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life. The amortization period and the
amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year
end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and
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they are treated as changes in accounting estimates. The amortization expense on intangible assets with finite
lives is presented as a separate line item in the statement of comprehensive income (profit and loss account).
Amortization is calculated using the straight-line method to write down the cost of intangible assets to their
residual values over their estimated useful lives. Intangible assets-valuation adjustment has been addressed
inline with regulatory decision.
2.16.08 Non-banking assets
Non-banking assets includes the assets acquired against the bad debt loans to adjust the loan. There are no
assets acquired in exchange for loan during the period of financial statements.
2.17 Liabilities and Provision
2.17.01 Borrowing from other banks, financial institutions and agents
Borrowings from other banks, financial institutions and agents include borrowing from Bangladesh Bank,
inside and outside of Bangladesh. These items are brought to financial statements at the gross value of the
outstanding balance. Details are shown in Note 11.
2.17.02 Deposits and Other Accounts
Deposits and other accounts include non-interest-bearing current deposit redeemable at call, interest bearing
on demand and short-term deposits, savings deposit and fixed deposit. These items are brought to account
at the gross value of the outstanding balances. Deposits and other accounts include bills payable have been
analyzed in terms of the maturity grouping showing separately other deposits and inter-bank deposits. Details
are shown in Note 12..
2.17.03 Other liabilities
Other liabilities comprise items such as provision for loans and advances/investments/other assets, taxation,
superannuation fund, gratuity fund and off balance sheet exposure and also includes interest payable, interest
suspense, accrued expenses etc. Other liabilities are recognized in the balance sheet according to the guidelines
of Bangladesh Bank, Income Tax Ordinance, 1984, IAS 37 and internal policy of the Bank. Details are shown
in Note 13.
2.17.04 Taxation
Income tax represents the sum of the current tax and deferred tax payable. Income tax assessment has been
finalized up to 1997 as well as the year 1999. Case pending for the year 1998 and 2000 to 2014.
2.17.04.01 Current tax
The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in
the Profit and Loss Account because it excludes items of income or expense that are taxable or deductible. The
Bank’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by
the date of Balance Sheet.
Provision for current income tax has been made as per Income Tax Ordinance 1984.
2.17.04.02 Deferred tax
Deferred tax is calculated on the taxable/deductible temporary differences between tax base and carrying value
of assets and liabilities as required by International Accounting Standards IAS-12: ‘Income Taxes’. Deferred tax
is not recognised for the following temporary differences:
on the initial recognition of assets or liabilities in a transaction that is not a business combination and at
the time of transactions, affects neither accounting nor taxable profit or loss; and
arising on the initial recognition of goodwill.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
against current tax assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realized simultaneously. Deferred tax is computed at the prevailing tax rate as per
Finance Act 2018.
A deferred tax asset is recognized for deductible temporary differences to the extent that it is probable that
future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will
be realized.

2.17.05 Employee benefit schemes
Accounting recognition & measurement, as well as the disclosures requirements for different benefit schemes
for employees are the following:
2.17.05.01 Employees General Provident Fund
Employees General Provident fund is operated from 13 September 1981 under which the concerned employees
are required to contribute at least 10% and highest 25% (on declaration) of their basic salary with no matching
contribution by the bank. This Fund relates to the employees who are availing Pension and Death-Cum-
Retirement Benefit (PDCRB) Scheme.
2.17.05.02 Contributory Provident Fund
The bank operated a Provident Fund named as Contributory Provident Fund into which the bank contributed
10% of the basic salary of its eligible employees while the employees contributed an equal amount to the fund.
This fund is operated by trustees. Employees enjoying contributory provident fund facilities are entitled gratuity
for 2 months last basic pay drawn for each completed year of service subject to completion of minimum 10
years of service. The scheme is operated on cash basis.
2.17.05.03 Pension and Death-Cum-Retirement Benefit (PDCRB) Scheme
The bank operated a Pension Fund named as Pension and Death-Cum-Retirement Benefit (PDCRB) Scheme
for the employees of General Provident Fund into which the bank contributes 25% of the basic salary (Each year
of June) of its eligible employees. Payments out of this fund are made to the employees on their separation
from bank’s service.
2.17.05.04
Gratuity
The Bank introduced the Gratuity scheme for the member of the Employees of Contributory Provident Fund
into which the Bank contributes 10% of the basic salary (Each year of June) of its eligible employees. Payments
out of this scheme are made to the members on their separation from bank’s service.
2.17.05.05 Investment of the Pension/Gratuity Funds
The balance of Pension/Gratuity funds are partly invested in approved securities with a view to increasing
the Fund and remaining balance being utilized by the bank towards payment of retirement benefits to the
employees.
2.17.05.06 Administration of the Fund
The Provident Fund, Pension Fund and Gratuity are being administered by two administrative committees
each of which consists of 9 (nine) members representing Chairman, 5 (five) members from Board of Directors,
Managing Director and CEO, 1 (one) member from officers and another from members of the staff.
2.17.05.07 Benevolent Fund
This fund is mainly created for sanctioning scholarship to the meritorious students among the children of the
Bank employees. The distressed employees and family member of deceased employees are also helped from
this Fund.
2.17.05.08 Leave encashment
The Officer/Staff who has opted for Pension and General Provident Fund, will be entitled to leave encashment
facilities up to twelve months at the time of retirement as per letter No. MF/FD/Reg-2/leave16/84/9 dated 21
January 1985 of Finance Division, Ministry of Finance, Government of Bangladesh. But if a staff (not officer)
has enjoyed /will enjoy leave encashment facilities before retirement, he will be provided with the rest amount
after deduction of the amount enjoyed earlier, as per letter No. MF/B & 1/Banking/2/1/80/101 dated 31 May
1980 of previous Banking & Investment Division, Ministry of Finance, and Government of Bangladesh. The
leave encashment benefit is paid to the incumbent debiting ‘Expenditure A/C Leave Encashment Code no.
1217. No additional fund is required during the year.
2.17.05.09 Death relief grant scheme
The Bank operates a death relief scheme since 1 January 1991, which replaced the previous group insurance
scheme. The scheme is applicable to all employees of the bank and payments out of this fund are made to
the successors of the employees on their death as per rate prescribed in the scheme.
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2.17.06 Provision for Loans and Advances
Loans and advances are stated at gross amount. General provisions on unclassified loans and contingent
assets, specific provisions for classified loans and interest suspense account thereon are shown under other
liabilities. Provision against classified loans and advances is made on the basis of quarter and review by the
management and instructions contained in BRPD Circular no. 14 dated 23 September 2012, BRPD circular no.
19 dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013, BRPD circular no. 8 dated 02 August
2015 and BRPD Circular no. 1 dated 20 February 2018.
2.17.07 Provision for other assets
As per BRPD circular no. 14 dated 25 June 2001 of Bangladesh Bank classification and classification have been made.
2.17.08 Other Provisions and accrued expenses
In compliance with IAS 37, Provisions and accrued expenses are recognized in the financial statements
when the bank has a legal or constructive obligation as a result of past event, it is probable that an outflow of
economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount
of the obligation.
2.17.09 Provision for Off-Balance Sheet Exposures
In compliance with Bangladesh Bank guidelines Off-Balance Sheet items have been disclose under contingent
liabilities. As per BRPD Circular no.10 dated 18 September 2007, Banks are required to maintain provision @ 1%
against Off-Balance Sheet Exposures (L/C, Guarantee and Bills for Collection, etc.).
2.17.10 Provision for Nostro Accounts
According to guideline of Foreign Exchange Policy Department of Bangladesh Bank, Circular no.
FEOD(FEMO)/01/2005-677 dated 13 September 2005, Bank maintains provision regarding the un-reconciled
debit balance as at Balance Sheet date since there was no debit entries more than three month.
2.18 Capital and Shareholders’ Equity
2.18.01 Capital Management
The bank has strategic capital management process for measuring, deploying and monitoring its available
capital and assessing its adequacy. The aim of this capital management process is to achieve four major
objectives; exceed regulatory thresholds and meet long-term internal capital targets, maintain strong credit
rating, manage capital levels commensurate with the risk profile of the bank and provide the banks shareholder
with acceptable returns.
Capital is managed in accordance with the board approved capital management planning from time to time.
Senior management develops the capital strategy and oversees the capital management planning of the bank.
The bank’s finance and risk management department are key to implementing the bank’s capital strategy and
managing capital. Capital is managed using both regulatory control measure and internal matrix.
2.18.02 Paid up capital
The paid up capital share capital represents total amount of shareholder capital that has been paid in full by
the Government of Bangladesh i.e. ordinary shareholder. In the event of winding-up of the company ordinary
shareholder(s) rank after all other shareholders and creditors are fully entitled to any residual proceeds of liquidation.
2.18.03 Statutory reserve
As per the Banking Companies Act 1991 (amended 2013) (Section 24) it is required for the bank to transfer 20%
of its current year’s profit before tax to reserve until such reserve equals to its paid up capital.
2.18.04 Dividends on ordinary shares
Dividends on ordinary shares are recognized as a liability and deducted from equity when they are approved
by the Banks shareholders. Dividends for the year that are approved after the reporting date are disclosed as an
event after the reporting date.
2.18.05 Revaluation Reserve
2.18.05.01 Assets Revaluation Reserve
When an asset’s carrying amount is increased as a result of a revaluation, the increase amount should be
credited directly to equity under the heading of revaluation surplus/ reserve as per International Accounting
Standards IAS-16: ‘Property, Plant and Equipment’. The tax effects on revaluation gain are measured and
recognized in the financial statements as per International Accounting Standards IAS-12: ‘Income Taxes’.

2.18.05.02 Revaluation Reserve for HTM & HFT
All HTM securities are amortized at the year end and any increase or decrease of such investment is booked
to equity. In case of HFT revaluation, decrease in the present value is recognized in the profit and loss account
and any increase is booked to Revaluation Reserve Account through Profit and Loss Account as per Bangladesh
Bank DOS circular no. 5, dated 28 January 2009.
2.18.06 Contingent liabilities and Contingent assets
A contingent liability is any possible obligation that arises form the past events and the existence of which will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Bank; or any present obligation that arises from past events but is not recognized
because:
it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or
the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognized but disclosed in the financial statements unless the possibility of an
outflow of resources embodying economic benefits is reliably estimated. Contingent assets are not recognized
in the financial statements as this may result in the recognition of income which may never be realized.
2.19 Revenue recognition
The revenue during the year has been recognized following all conditions of revenue recognitions as prescribed
by International Financial Reporting Standards IFRS 15 ‘Revenue from Contracts with Customers’.
2.19.01 Interest income
Interest on loans and advances is calculated on daily product basis and accrued at the end of each month, but
charged to customers’ accounts on quarterly basis. In terms of the provisions of the International Financial
Reporting Standards IFRS 15 ‘Revenue from Contracts with Customers’, the interest income is recognized on
accrual basis. Interest on unclassified loans and advances have been accounted for as income on accrual basis,
interest on classified loans and advances have been credited to interest suspense account with actual receipt
of interest there-from having credited to income as and when received as per instruction of Bangladesh Bank.
2.19.02 Investment income
Income on investments is recognized on accrual basis. Investment income includes discount on treasury bills,
interest on treasury bonds and fixed deposit with other banks. Capital gain on investments in shares is also
included in investment income. Capital gain is recognized when it is realized.
2.19.03 Fees and commission income
Commission charged to customers on letters of credit and letters of guarantee are credited to income at
the time of effecting the transactions.
Fee and Commission on bills discounted, purchased & others are recognized at the time of realization.
Exchange gains or losses arising out of such transactions are recognized as income or expense for the
year foreign currency transactions are converted into BDT at prevailing on the dates of such transactions
and dealt with exchange account.
2.19.04 Dividend income on shares
Dividend income from shares is recognized during the period in which they are declared and actually received.
2.19.05 Other operating Income
Other operating income is recognized at accrual basis.
2.19.06 Profit/Loss of Overseas Branches
Profit/loss of the bank’s overseas branches has been reflected in this profit and loss account.
2.19.07 Interest paid on Deposit and Borrowing
Interest paid on Deposit and Borrowing and others expenses are recognized as accrual basis.
2.19.08 Management and other expenses
Expenses incurred by the Bank are recognized on actual and accrual basis.
2.19.09 Reconciliation of inter-bank and inter-branch account
Accounts with regard to inter bank (in Bangladesh and outside Bangladesh) are reconciled regularly and there
are no material differences that may affect the financial statements significantly.
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2.19.10 Segment reporting
For the purpose of Segment Reporting as per International Financial Reporting Standard 8, the following
segments relating to revenue, expenses, assets and liabilities have been identified and shown in the related
notes accordingly as primary/secondary segments.
i) domestic operations in line with geographical segments;
ii) banking operations comprising of branches of the banking entity; and
iii) treasury operations comprising of the banking entity.
Performance is measured based on segment profit before provision, as included in the internal management
reports that are reviewed by the Bank’s Management. Segment report is used to measure performance as
Management believes that such information is the most relevant in evaluating the results of certain segments
relative to other entities that operate within these industries.
2.19.10.01 Operating segments
The Bank has five reportable segments, as described below, which are the Bank’s strategic business units. The
strategic business units offer different products and services, and are managed separately based on the Bank’s
management and internal reporting structure. For each of the strategic business units, the Bank Management
Committee reviews internal management reports on at least a quarterly basis. The following summary describes
the operations in each of the Bank’s reportable segments:
Includes loans, deposits and other transactions and balances with corporate customers &
i. Loans & Advances
retail customers.
Undertakes the Bank’s funding and maintenance of CRR and SLR, Asset-liability management
ii. Treasury through borrowings and placement, currency swap and investing in liquid assets such as
short-term placements and corporate and government debt securities.
Two (2) overseas branches of Sonali Bank Limited are situated at Kolkata & Siliguri in India
iii. Overseas Branches
and operating banking business, money remittance etc. as per the head office instructions
(Kolkata, Siliguri)
and other activities as permitted under the banking law of India.
iv. Sonali Exchange Sonali Exchange Company Incorporated (SECI), USA, subsidiary company of Sonali Bank
Company Limited operates its business in USA. It performs the activities of money remittance, issue
Incorporated (SECI), cheques, payment instruments and traveler’s cheque and other activities as permitted under
USA the banking law of USA.
v. Sonali Investments Established to do all kinds of merchant banking activities including issue management,
Limited underwriting, portfolio management and other transactions.
2.19.11 Directors’ responsibility on financial statements

The board of directors takes the responsibility for the preparation and presentation of these financial statements.
2.20 Consolidation of the Financial Statements
Consolidation of the Financial Statements is started from 2011.
2.21 Risk Management
The Bank Company Act, 1991(amended 2013) and the Bangladesh Bank Regulations require the Management
to ensure effective internal audit, internal control and risk management functions of the Bank. The Management
is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to
Bangladesh Bank on instances of fraud and forgeries.
Bangladesh Bank Department of Off-site Supervision (DOS) has issued Circular no. 02 dated 15 February 2012
on Risk Management Guidelines for Banks and instructed all scheduled banks operating in Bangladesh to
follow this Guidelines for managing various risks which have been compiled by the Bank.
In addition, the Bank is also following relevant Bangladesh Bank guidelines on risk based
capital adequacy, stress testing and managing the banking risks in other core risk areas.
The Bank has established a Risk Management Division (RMD). The RMD conducts stress testing for examining
the Bank’s capacity of handling future shocks, as well as deals with all potential risks that might occur in future.
Being a financial institution, in the ordinary course of business, the bank is sensitive to verities of risks. The
generic severity of such risk(s) is much intense in our locality due to presence of large number of banks and
complex financial transactions. In such highly competitive environment to ensure a bank’s consistent system

and performance, the presence of strong Risk Management culture is obligatory. Being compliant, the bank is
now looking forward to take risk management practice to a different level, i.e. preventing risk before occurrence
rather than a reactive manner; on a proactive basis. As a part of regulatory and global benchmarking the bank
has based upon 07 (seven) core risks guidelines of Bangladesh Bank and basel framework. Listed below are the
identified risks the bank is currently managing or intents to manage:
Internal Control and Compliance Risk
Foreign Exchange Risk
Credit Risk Management
Asset Liability Management Risk
Money Laundering Risk
Information & Communication Technology Security Risk
Environmental Risk
Accordingly the bank has various high powered committees to monitor and ensure smooth risk management
activities. For example, Board Risk Management Committee, high powered central Risk Management
Committee, Departmental Risk Management Committee, Asset Liability Management Committee (ALCO),
Investment Committee, Credit Committee (CC) etc. To manage the overall risks of the bank in line of basel the
bank has formed a dedicated Core Risk Management & Basel-III Implementation Division. The detail of SBL’s
risk management is stated below:
a) Internal Control and Compliance Risk
Establishment of sound control environment and effective compliance culture is the key stone of
managing operational risk. Internal control is a process to control overall activities of the Bank through
establishing policies, procedures, observance of instructions of regulatory authorities with a view to avoid
any possible loss from the lack of corporate governance.
To mitigate the operational risk, the Bank ensured effective internal control systems for all of its operational
activities by intensifying the internal audit function, comprehensive and risk based inspection in all
branches and Head Office. The Compliance Division ensures the settlement of objections or irregularities
mentioned in the audit reports under a strong monitoring process of the Management Committee
(MANCOM). Besides there is a division named Vigilance and Control Division under the direct supervision
of CEO and MD to act at any sudden occurrence of loss or irregularities.
The Bank with the support of an Expert Team, has undertaken a program for upgrading its Internal Control
and Compliance policy as well as other policies in the area of credit, audit, information technology and
accounts as per international best practices.
b) Foreign Exchange Risk Management
Foreign Exchange Risk is defined as the possibility of losses due to change in exchange rates interest rate
etc. according to market forces. The Foreign Exchange Risk of the Bank is minimal as all the transactions
are carried out on behalf of the customers against underlying Foreign Exchange transactions.
Treasury Division independently conducts the transactions and the Back Office of Treasury is responsible
for verification of the deals and passing of their entries in the books of account. Mid office coordinates the
work in between front office and back office functioning. All foreign exchange transactions are revalued
at Mark-to-Market rate as determined by Bangladesh Bank at the month -end. All NOSTRO accounts are
reconciled on regular basis and outstanding entries beyond 30 days are reviewed by the Management for
their settlement.
c) Credit Risk Management
Credit risk is one of the crucial risk faced by the Bank. This can be described as potential loss arising
from the failure of a counter party (borrower) to perform as per contractual agreement with the Bank.
The failure may result from unwillingness of the counter party or decline in his/her financial condition.
Therefore, Bank’s credit risk management activities have been designed to address all these issues. The
Bank has segregated duties of the Officers/Executives involved in credit related activities. Credit approval,
administration, monitoring and recovery functions have been segregated. For this purpose, three separate
divisions have been formed. These are credit division, credit monitoring & recovery division and law
division. Credit division is entrusted with the duties of maintaining asset quality, assessing risk in lending to
a particular customer, sanctioning credit, formulating policy/strategy for lending operation, etc.
There is a high power credit committee who manages the credit risk of the bank. A thorough assessment
is done before sanction of any credit facility at credit division. The risk assessment includes borrower
risk analysis, financial analysis, industry analysis, historical performance of the customer, security of the
proposed credit facility, etc. All credit proposals have been placed in credit committee for sanction or
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make decline. Managing Director is the Chairman of credit committee. Loans having big exposures are
placed before the Board of Directors of the Bank for sanction.
In determining single borrower/large loan limit, the instructions of Bangladesh Bank are strictly followed.
Internal audit is conducted on periodical interval to ensure compliance of Bank’s and Regulatory polices.
Loans are classified as per Bangladesh Bank’s guidelines.
d) Asset Liability Management Risk
Bank has high powered Asset Liability Management Committee (ALCO) to monitor Balance Sheet Risk
and liquidity Risks of the Bank. The Balance Sheet Risk is determined as potential change in earnings
due to change in rate of interest foreign exchange rates and regulatory instructions, which are not of
trading nature. Asset Liability Committee (ALCO) reviews Liquidity requirement of the Bank, the maturity
of assets and liabilities, deposits and lending, pricing strategy and the Liquidity contingency plan. The
primary objective of the Asset Liability Committee (ALCO) is to monitor and avert significant volatility in
Net Interest Income (NII), investment value and exchange earnings for the purpose of taking future action
plan for better interest of the organization.
e) Money Laundering Risk
Risk Associates with probable Money laundering activities is one of the major risk in the area of banking
sector. Money Laundering risk is defined as the loss of reputation and expenses incurred as penalty for
being negligent in prevention of money laundering. For mitigating the risk the Bank has designated Chief
Compliance Officer at Head Office and Compliance Officer at Branches, who independently review the
transactions of the accounts to verify suspicious transactions.
Manuals for Prevention of Money Laundering, KYC and Transaction profile have been introduced. Training
has been being imparted to Executives, Officers and staff for developing awareness and skill for identifying
suspicious transactions and other Money Laundering related activities.
f) Information & Communication Technology Security Risk
IT Guideline is a systematic approach to policies required to be formulated for IT and also to ensure
security of information and information systems. This guideline covers all information that is electronically
generated, received, stored, printed, scanned and typed. The provisions of this guideline apply to:
1. Sonali Bank Limited for all of its IT system.
2. All activities and operations required ensuring data security including facility design, physical security,
network security, disaster recovery and business continuity planning, use of hardware and software,
data disposal and protection of copy rights and other intellectual properly rights.
The implementation of Core Banking Solution (CBS) will be linked from the branches to the central
database. Near future the information will be easily accessible by senior management and is
expected to be important source of information of strategic decision-making process based on
a comprehensive database. It is to be declared that the Bank is fully compliant according to the
guideline of Central Bank’s IT policy.
g) Environmental Risk
Environmental Risk is the new concern in the banking arena. Bank authority is very much aware about this.
In compliance with Bangladesh Bank’s instructions and guidelines regarding environmental risk, all the
activities of the bank are being carried on. Specially, to approve the credit proposal, Bank Credit Committee
meticulously review the compliance status of the borrower regarding environmental requirement.
2.22 Risk Management Committee Disclosure
A Risk Management Committee, comprising Directors of the Board has been formed in consistence with Bank
Company (Amendment) Law-2013 and directives of BRPD Circular No.11 dated 27.10.2013 of Bangladesh Bank.
Bank’s risk management approach includes minimizing undue concentrations of exposure, limiting potential
losses from stress events and ensuring the continued adequacy of all our financial resources. The committee is
playing a vital role in risk management of the bank. It has a long term plan to develop risk management culture
in the bank.

The risk management committee comprising of five members including chairman who are competent and
professionally skilled and also the director of the board. The name and status of the member of the Board Risk
Management Committee are stated as follows:
Sl. No. Name Status in the Bank Status in the committee
1 Mr. Muhammed Asadullah Director Chairman
2 Mr. Md. Mahboob Hossain Director Member
The risk management committee of the Board of Directors has been formed soon after the Central Bank’s
instruction. The committee conducted 12 meeting in 2018 where the following issues have been discussed:
Formulated risk management strategies, methodologies, guidelines and processes for risk identification,
risk assessment, risk controlling and monitoring.
Designed a suitable organization structure for risk controlling. The committee will form separate risk
management committee in management level and supervise their activities for compliance of instruction
regarding credit risk, foreign exchange risk, internal control and compliance risk, money laundering risk,
ICT risk and environmental risk.
Reviewed and updated all risk management policies and guidelines al least once in a year, if necessary
they will propose and place before the Board of Director for final approval.
Evaluated, assessed and approved the record keeping and reporting system formulated by the bank
management.
Supervised the implementation of overall risk management policies and steps taken for mitigation of
credit risk, market risk and operational risk along with other risks.
Submitted the report of decision and recommendation made by the committee to the Board on a
quarterly basis.
Followed the instruction circulated by the controlling authority, etc.
2.23 Audit committee Disclosure
In compliance with the policy directives as well as compliance with the BRPD Circular No. 11 dated 27 October
2013 and previous circular BRPD Circular no. 12 dated 23 December 2002 of Bangladesh Bank, an audit
committee of the board of Sonali Bank Limited was constituted by the Board of Directors in its 615th meeting
held on 15 March 1999 and thereafter lastly reconstituted in the 548th board meeting of Sonali Bank Limited
held on 12 December 2018. The audit committee comprises of five members including chairman who are
competent and professionally skilled and also the director of the board. The company secretary acts as a
secretary of the audit committee. The name and status of the member of the audit committee are stated as
follows:
Sl. No. Name Status in the Bank Status in the committee
1 Mr. A.K.M Kamrul Islam FCA, FCS Director Chairman
2 Mr. Md. Mahboob Hossain Director Member
4 Mr. Muhammed Asadullah Director Member
250
During the year 2018, the Audit Committee of the Board conducted 10 (Ten) meetings in 2018 which the
following important issues were reviewed/discussed along with others:
Oversee the financial reporting process & liquidity position of the bank at regular basis.
Reviewed internal & external auditors findings on the irregularities both major & significance at different
branches of the bank and reference those to the Board with appropriate recommendation for decision,
reviewed draft & audited financial statements for the year 2017.
Reviewed performance of internal audit 2018.
Reviewed the reconciliation performance of interbranch transaction accounts and advised the
management to keep it regular.
Reviewed the comprehensive inspection report on SBL by Bangladesh bank as on 31.12.2017.
Reviewed the cash holding position of different branches & advise the management to ensure
maintenance of optimum level of cash to reduce idle cash in hand as per as practicable.
Reviewed existing policy of ICC, Risk Grading, Credit Policy, Quarterly Risk Management Paper etc. and
made recommendation to Board for approval.
Reviewed unaudited quarterly & half yearly financial statements of the bank for the year 2018.
Monitor internal control risk management process.
Discussed and reviewed annual budget 2019 & revised budget 2018 and recommended to the board with
some amendments.
Reviewed the compliance status of audit objections and advised the management to ensure full
compliance of regulatory, legal and significant issues meticulously.
Reviewed the audit rating by internal audit on Anti Money Laundering of all branches for the year 2017.
Discuss and reviewed the effectiveness of annual audit plan 2017 and made recommendation to the
board for approval with suggested amendments.
Reviewed existing risk management procedures along with implementation of core risk management
guidelines and advised the managements to implement the same more effectively.
Reviewed the audit report of the subsidiaries and directing the authority to take necessary action as
appropriate.
2.24 Credit Rating of the Bank
As per the BRPD circular no. 6 dated 5 July 2006, the Bank has done its credit rating by Emerging Credit Rating
Limited based on the financial statements of Sonali Bank Limited dated 31 December 2017. The following
ratings had been awarded:
Long
Date of Declaration Valid till Rating Mode Short Term Outlook
Term
Govt. Support AAA ST-1
30-Jun-18 29-Jun-19 Stable
Without Govt. Support A- ST-2
2.25 Implementation of BASEL-III
Banks operating in Bangladesh are maintaining capital since 1996 on the basis of risk weighted assets in line
with the basel Committee on Banking Supervision (BCBS) capital framework published in 1988. Considering
present complexity and diversity in the banking industry and to make the Bank’s capital more risk-sensitive as
well as to improve the banking sector’s ability to absorb shocks arising from financial and economic stress,
Bangladesh Bank provides revised regulatory capital framework “Risk based Capital Adequacy for Banks” which
is effective from 1 January 2009.
Both the existing capital requirement rules on the basis of Risk Weighted Assets and revised Risk based Capital
Adequacy Framework for Banks as per basel-II were followed simultaneously initially for one year. For the
purpose of statutory compliance during the period of parallel run i.e. 2009, the computation of capital adequacy
requirement under existing rules prevailed. On the other hand, revised Risk based Capital Adequacy Framework
as per basel-II had been practiced by the Banks during 2009 so that basel-II recommendation could effectively
be adopted from 2010. From January 2010, Risk based Capital Adequacy Framework as per basel-II have been
fully practiced by the Banks replacing the previous rules under basel-I. Bangladesh Bank adopted “Guidelines
on Risk based Capital Adequacy (Revised Regulatory Capital Framework for Banks in line with basel-III)” as per
BRPD circular no. 18 dated 21 December 2014 replaced of “Guidelines on Risk based Capital Adequacy (Revised

Regulatory Capital Framework for Banks in line with basel-II)”. This circular shall come into force with effect
from January 01, 2015. These new global regulatory and supervisory standards mainly addressed the following
areas:
1. Pillar-1 :
a) Minimum Capital Requirement (MCR);
b) Assessment of total Regulatory Capital;
c) Calculation of total Risk Weighted Assets;
d) Calculation of Capital to Risk Weighted Assets Ratio (CRAR);
e) Raise the quality and level of capital to ensure banks are better able to absorb losses on both a going
concern and a gone concern basis;
f) Increase the risk coverage of the capital framework;
g) Introduce Leverage Ratio (LR) to serve as a backstop to the risk-based capital measure;
h) Calculation of Liquidity Coverage Ratio (LCR) and
i) Calculation of Net Stable Funding Ratio (NSFR).
2. Pillar-2 :
a) Raise the standards for the supervisory review process ; and the main aspects of a rigorous SRP are as
follows :
Board and senior management oversight,
Sound capital assessment,
Comprehensive assessment of risks,
Monitoring and reporting,
Internal control review.”
b) Preparation of ICAAP (Internal Capital Adequacy Assessment Process) documents for assessing its overall
risk profile and a strategy for maintaining adequate capital.
c) SRP – SREP dialogue.
3. Pillar-3 :
a) Market Discipline/Public disclosures etc.
The macro prudential aspects of basel-III are largely enshrined in the capital buffers. Both the buffers i.e.
the capital conservation buffer and the countercyclical buffer are intended to protect the banking sector
from periods of excess credit growth.
i) Capital to Risk Weighted Assets Ratio (CRAR)*
The Capital Adequacy Ratio (CAR) has been newly defined as Capital to Risk Weighted Asset Ratio (CRAR)
which is calculated by taking eligible regulatory capital as numerator and total RWA as denominator.
Total Eligible Capital
CRAR=
Credit RWA+Market RWA+Operational RWA
ii) Leverage Ratio*

In order to avoid building-up excessive on and off-balance sheet leverage in the banking system, a simple,
transparent, non-risk based leverage ratio has been introduced. The leverage ratio is intended to achieve
the following objectives:
a) Constrain the build-up of leverage in the banking sector which can damage the broader financial
system and the economy.
b) Reinforce the risk based requirements with an easy to understand and a non-risk based measure.
A minimum Tier 1 leverage ratio of 3% is being prescribed both at solo and consolidated level.
The banks will maintain leverage ratio on quarterly basis. The calculation at the end of each calendar
quarter will be submitted to BB showing the average of the month end leverage ratios based on the
following definition of capital and total exposure.
Tier 1 Capital (after related deductions)

LR =
Total Exposure (after related deductions)
252
iii) Liquidity Coverage Ratio (LCR)*

LCR or Liquidity Coverage Ratio is a new liquidity standard introduced by the basel Committee. This
standard is built on the methodologies of traditional liquidity coverage ratio used by banks to assess
exposure to contingent liquidity events. LCR aims to ensure that a bank maintains an adequate level of
unencumbered, high-quality liquid assets that can be converted into cash to meet its liquidity needs for 30
calendar days. LCR goes beyond measuring the need for liquid assets over the next 30 days in a normal
environment. It measures the need for liquid assets in a stressed environment, in which deposits and other
sources of funds (both unsecured and secured) run off, to various extents, and unused credit facilities are
also drawn down in various magnitudes. These runoffs are in addition to contractual outflows.
Stock of quality liquid assets

LCR= ≥ 100%
Total net cash outflows over the next 30 calendar days
iv) Net Stable Funding Ratio (NSFR)*
NSFR or Net Stable Funding Ratio is another new standard introduced by the Basel Committee. The NSFR
aims to limit over-reliance on short-term wholesale funding during times of abundant market liquidity
and encourage better assessment of liquidity risk across all on off-balance sheet items. The minimum
acceptable value of this ratio is 100 percent, indicating that available stable funding (ASF) should be at
least equal to required stable funding (RSF). ASF consists of various kinds of liabilities and capital with
percentage weights attached given their perceived stability. RSF consists of assets and off-balance sheet
items, also with percentage weights attached given the degree to which they are illiquid or “long-term”
and therefore requires stable funding. The time horizon of the NSFR is one year. Like the LCR, the NSFR
calculations assume a stressed environment.
Available amount of stable funding (ASF)

NSFR= ≥ 100%
Required amount of stable funding (RSF)
The calculation of the NSFR requires two quantities to be defined :
A. available stable funding (ASF) and
B. required stable funding (RSF).
NSFR is met if ASF exceeds RSF, that is if ASF/RSF > 1 or 100%.
2.26 Related party disclosures
As per International Accounting Standards IAS-24 ‘Related Party Disclosures’, parties are considered to be related
if one of the parties has the ability to control the other party or exercise significant influence over the other
party in making financial and operating decisions. The company carried out transactions in the ordinary course
of business on an arm’s length basis at commercial rates with its related parties. Related party disclosures have
been given in Note 46 and 47.
2.27 Litigation
The bank is not a party to any lawsuits except those arising in the normal course of business, which were filled
against the default clients for non-performance in loans repayment and against various level of tax authority
regarding some disputed tax issue. The bank, however, provides adequate provisions as per guidelines of IAS
37 incompliance with Bangladesh Bank guidelines.
2.28 Loan Write off
Write off describes a reduction in recognized value. It refers to recognition of the reduced or zero value of
an asset. Generally, it refers to loan for which a return on the loan is now impossible or unlikely. The item’s
potential return is thus cancelled and removed from (Written off) the banks statement of financial position.
Recovery against debts written off / provided for is credited to provision or revenue considering the previous
position of the loans.

2.29 Compliance of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs)
The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of International
Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). While preparing the
financial statements, Sonali Bank Limited applied most of IASs and IFRSs as adopted by ICAB. Details are given
below:
BASs
Name of the BASs/BFRSs Status
/BFRSs No.
Presentation of Financial Statements 1 Applied*
Inventories 2 Applied
Statement of Cash Flows 7 Applied
Accounting policies, Changes in accounting Estimates and Errors 8 Applied
Events after the Reporting Period 10 Applied
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Leases 17 Applied
Employees Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Applied
Separate Financial Statements 27 Applied
Investment in Associates & joint venture 28 Applied
Earning Per Share 33 Applied
Interim Financial Reporting 34 Applied*
Impairment of Assets 36 Applied
Provision, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Investment Property 40 N/A
Agriculture 41 N/A
First-time Adoption of Bangladesh Financial Reporting Standards 1 N/A
Share-Based Payment 2 N/A
Business Combinations 3 Applied
Insurance Contracts 4 N/A
Non-Current Assets Held for Sale and Discontinued Operations 5 Applied
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instrument: Disclosures 7 Applied*
Operating Segments 8 Applied
Financial Instruments 9 Applied*
Consolidated Financial Statements 10 Applied
Joint Arrangements 11 N/A
Disclosure of Interests in Other Entities 12 Applied
Fair Value Measurements 13 Applied
Regulatory Deferral Accounts 14 N/A
Revenue from Contracts with Customers 15 Applied
* Subject to departure described in Note 2.02 Statement of Compliance
254
2.30 Corporate Social Responsibility (CSR)
Bank authority is very much concern about responsibility to the society people. With industrialization, the
impacts of business on society and the environment assumed an entirely new dimension. For this Corporate
Social Responsibility has become a criterion of socially lawful business Endeavour and the acceptance of it,
is growing day by day. Countries of developed economy have taken the idea of ‘’Social Responsibility’’. Being
the largest state owned commercial bank in Bangladesh, Sonali Bank Ltd. has also realized its responsibilities
to the society and contributed to the amelioration of the social life of the destitute people, infra-structure,
environment etc. within the framework of Bangladesh Bank guidelines.
2.31 Off-balance sheet items
Under general banking transactions, liabilities against acceptance, endorsements, and other obligations and
bills against which acceptance has been given and claims exists there against, have been shown as off balance
sheet items.
Off Balance Sheet items have been disclosed under contingent liabilities and other commitments as per
Bangladesh Bank guidelines.
As per BRPD circular no. 14, date 23 Sep 2012, 1% provision should be maintained against off- balance sheet
items except the criteria mention in the BRPD circular no 01, date 03 January 2018. Bank has maintained
sufficient provision in the books of accounts against off balance sheet exposure.
2.32 Fraud and Forgeries
2.32.01 Fraud Prevention Process
Based on DOS circular letter no. 17, dated 7 November 2012 issued by Bangladesh Bank, the following areas for
self assessment of Anti-Fraud Internal Controls are addressed by the Bank:
Internal Control and Compliance (ICC);
General Banking and Operation (GBO);
Loans and Advances (LA); and
Information and Communications Technology (ICT)
In addition to the above self assessment, the following process followed by the management:
i) Additional security devices are incorporated, not only within the bank premises but also in the instruments
given to their numerous clients.
ii) In recruiting key personnel who are to handle certain sensitive operations, it is essential that bank makes
comprehensive efforts at conducting a proper background check on the status and nature of the
employee in his or her neighborhood, as this would help them establish the probability of the employee
engaging in fraudulent activities.
iii) Regular need assessment to increase the ability of bank’s staff in detecting fraud especially those related
to cheques and money transfers. This can be achieved through a combination of internal and external
modules of on the job training and off the job training exercises.
iv) Continuously review the code of ethics and code of conduct to reduce the probable tendency for
fraudulent behavior of the employees. It is believed that if employees are well motivated to the bank, the
incidence of frauds will be reduced.
v) Favorable financial awards and recognition should be given to employees who show dexterity in identifying
and preventing fraud.
vi) Top management must also strive to maintain a high degree of ethical standards in the performance of
their duties, in view of the fiduciary nature of their functions. This is imperative as they are by law required
to safeguard the assets of their banks.
vii) The internal audit divisions of bank should not be seen as a dumping ground for non-performing staff.
Staff deployed into this department should be sufficiently qualified, properly trained and adequately
experienced in all facets of banking operation.

2.33 Internal Audit Process
Internal Audit Division as independent from the part of Management, is committed to standards of best
professional practice on internal audit. The Basic steps in the internal audit processes followed by the bank are
stated below:
1) Audit Planning Process
The Basic audit planning process consists of two phases: the assessment of business risk and the
development of the annual plan. Assessing of business risk focuses on viz. (i) defining auditable units, (ii)
defining the risk criteria, (iii) constructing the risk model and (iv) ranking the auditable units.
i) Defining Auditable units
Auditable units are defined as individual applications, business units, departments or offices each
of theses approaches either limits the scope of an audit project or broadens it beyond what can
reasonably be managed.
ii) Defining the risk criteria
The model is based on operational risk, exposure and controls. Each area is broken down into sub-
categories as follows:
Operational risk (people, systems, process, contractual, reputational and political)
Exposure (financial, regulatory and customer);
Controls(people, process, information systems and reporting).
The controls categories are further broken down into the following sub-categories viz. people,
process and information systems.
iii) Constructing the Risk Model
The risk assessment and audit planning methodology is a structured approach to a subjective
process. The risk assessment and planning model is the product of value judgments.
iv) Ranking the Auditable units
The risk profile spreadsheet computes a score for each auditable unit based on operational risk,
exposure and control. This score is then converted into a ranking for each criterion as follows:
Operational Risk - high, medium, low; Exposure - high, medium, low; Control - high, medium, low
2) Developing Audit Programme
Once the annual plan is developed and approved, Audit Programme are developed for each audit to be
undertaken. Audit Programme is to be reviewed prior to the start of each audit to determine if there have
been any changes. The steps in developing an Audit Programme are: understand the operations, develop
flowchart or narrative, review the process with the concerned staff and develop the Audit Programme.
3) Implementing the Annual Audit Plan
The department undertakes structured approach to accomplish the annual plan and the actual audit can
be broken up into a number of stages stated below.
(i) Preparation stage
At this stage, the team leader ensures that all the necessary requirements for the audit are prepared
and available and preliminary reviews and information gathering is undertaken.
(ii) Fieldwork
During the fieldwork the auditor gathers evidence in order to determine the status of operations
and controls within a particular area. This evidence is the basis for the auditor’s conclusions about a
particular assignment.
(iii) Documentation or working paper
The working papers are evidence in support of the audit findings and opinion.
(iv) Audit Findings
Findings are pertinent statements of fact uncovered during the course of an audit and these are to
be reported. The findings are reviewed by the Team leader and the Head of Audit prior to the final
report being issued.
256
4) Reporting
The audit reports are submitted to the auditable units, senior management and to the Audit Committee
of the Board. The audit reports contain findings which are of a critical nature and have a major impact on
the organization. Other operational issues identified during the audit which are considered not to be of a
material nature but are worth are reported through ‘Management Report’ to the Head of the Department/
Office and Head of the area being audited.
5) Follow-up
Along with compliance functioning the internal audit people employ close follow up to ensure that
appropriate and timely action has been taken on audit findings and recommendations. Internal Audit
Department reports to the Audit Committee on the current status of outstanding findings and what action
is being taken to resolve the issues.
6) External Audit
Internal audit uses the external audit reports and ensures that any issues raised by the external auditor have
been followed up by management and whether corrective action has been taken in a timely manner.
2.34 Reporting period
The accounting period of the bank has been determined to be from 1 January to 31 December each year and
is followed consistently.
2.35 Comparative Information
Presentation of Financial Statements, comparative information in respect of the previous year have been
presented in all numerical information in the financial statements and the narrative and descriptive information
where, it is relevant for understanding of the current year’s financial statements.
The comparative figure for amortization of intangible assets has been taken off from the profit and loss account
and shown in the statement of changes in Equity against the corresponding amount in the current year’s
financial statement as explained in Note - 18 to the financial statement.
2.36 Earnings per share (EPS)
2.36.01 Basic earnings per share
The Bank calculates Earnings per Share (EPS) in accordance with IAS 33 “Earnings per Share”, which has been
shown on the face of profit and loss account, and the computation of EPS is stated in Note 44.
2.36.02 Diluted earnings per share
No diluted earning per share is required to be calculated for the year as there was no scope for dilution during
the year under review.
2.37 Approval of financial statements
The financial statements were approved by the Board of Directors on 29 April 2019.
2.38 General
a) Figures have been rounded off to the nearest taka.
b) Prior Year’s figures have been shown for comparison purposes and rearranged wherever necessary to
conform to current year’s presentation.
c) Conversion rate is calculated based on the simple average of buying and selling rate.

Amount in Taka
Ref.
Notes Particulars Consolidated Bank
Note
2018 2017 2018 2017
3.00 Cash
Cash in hand (Including foreign
3.01 5,016,917,890 5,112,714,589 5,016,917,890 5,112,714,589
currencies)
Balance with Bangladesh Bank and
its Agent Bank (Including foreign 3.02 93,111,121,308 82,883,273,174 93,111,121,308 82,883,273,174
currencies)
98,128,039,198 87,995,987,763 98,128,039,198 87,995,987,763
Cash In Hand( Including foreign
3.01
currencies)
Local Currency 3.01.01 4,834,996,810 5,000,835,580 4,834,996,810 5,000,835,580
Foreign Currency 181,921,080 111,879,009 181,921,080 111,879,009
5,016,917,890 5,112,714,589 5,016,917,890 5,112,714,589
3.01.01 Local Currency
Cash in hand 4,609,966,288 4,857,891,056 4,609,966,288 4,857,891,056
Cash with ATM A/C 180,512,118 130,589,618 180,512,118 130,589,618
Sonali VISA Transaction A/C 44,518,404 12,354,906 44,518,404 12,354,906
4,834,996,810 5,000,835,580 4,834,996,810 5,000,835,580
3.01.02 Foreign Currency
Foreign Currency in hand 172,157,504 104,122,572 172,157,504 104,122,572
foreign Currency in hand of India
9,763,576 7,756,437 9,763,576 7,756,437
operation
181,921,080 111,879,009 181,921,080 111,879,009
Balance with Bangladesh Bank and its Agent
3.02
Bank (Including foreign currencies)
Local Currency 83,074,251,681 73,711,642,803 83,074,251,681 73,711,642,803
Foreign Currency 10,036,869,627 9,171,630,371 10,036,869,627 9,171,630,371
93,111,121,308 82,883,273,174 93,111,121,308 82,883,273,174
Mode of Deposit with Bangladesh
Bank
Statutory Deposit 93,111,121,308 82,883,273,174 93,111,121,308 82,883,273,174
Non Statutory Deposit - - - -
93,111,121,308 82,883,273,174 93,111,121,308 82,883,273,174
(Details shown in Annexure-A)
3.03 Disclosures regarding maintenance of CRR & SLR
Cash Reserve Requirements (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accord-
ance with the section 25 & 33 of the Bank Companies Act 1991 (Amended 2013) and subsequent MPD Circular No. 01,
03 April 2018.
The Cash Reserve Requirement (CRR) on the bank’s time and demand liabilities at the rate of 5.5% has been calculated
and maintained with Bangladesh Bank in current account and 13% Statutory Liquidity Ratio (SLR), including CRR on the
liabilities has also been maintained in the form of treasury bills, bonds and debentures including F.C. balance with Bang-
ladesh Bank. Both the reserve maintained by the Bank are in excess of the statutory requirements, as shown below:
3.03.01 Cash Reserve Requirement (CRR )
As per MPD circular No. 1 dated 03 April 2018 of Bangladesh Bank (effective from 15 April 2018) refer to MPD circular
No. 04 dated 1 December 2010, all scheduled Banks are required to maintain a CRR minimum 5% on daily basis based
on weekly average demand and time liabilities of two months prior to current month (i.e. CRR of December 2015 will be
based on weekly average balance of October 2015 as per BRPD circular no. 12 dated 6 September 1998) and minimum
5.5% on bi-weekly basis. SBL has been maintaining its CRR on bi-weekly basis.
258
Particulars Percentage Amount in Taka

2018 2017
Average demand and time liabilities 1,052,895,190,000 1,020,040,401,000
Required Reserve 5.5% 56,965,745,000 60,002,673,000
Reserve held with Bangladesh Bank* (Average) 7.3% 76,593,291,000 74,629,270,000
Surplus/(Deficit) 1.8% 19,627,546,000 14,626,597,000
*As per statement of Bangladesh Bank
*As Sonali Bank Limited is maintaining its CRR on bi-weekly basis, the bi-weekly basis balance of reserve held with
Bangladesh bank was Taka 76,593,291,000.00 which indicates that the reserve held with Bangladesh Bank is not be-
low the required reserve.
3.03.02 Statutory Liquidity Ratio (SLR) (including CRR )
Bangladesh Bank circular (MPD circular No. 02 dated 10 December 2013 and DOS circular No. 01 dated 19 January
2014) to maintain SLR separately at 13% effective from 01 February 2014. Sonali Bank Limited maintain SLR separately
from the above date.
The Bank has to maintain Tk. 134,570,345,000.00 on bi-weekly basis on December 2018 as SLR against which the
bank maintained Tk. 402,904,563,890.00. As a result the surplus of SLR stood Tk. 268,334,218,890.00.
Amount in Taka
Particulars Percentage
2018 2017
Average demand and time liabilities 1,052,895,190,000 1,020,040,401,000
Required Reserve 13.00% 134,570,345,000 129,970,309,000

Actual Reserve held with Bangladesh Bank 38.27% 402,904,563,890 441,208,071,589
Surplus/(Deficit) 25.27% 268,334,218,890 311,237,762,589
Grand Total of CRR &SLR
Required Reserve 191,536,090,000 189,972,982,000
Actual Reserve held with Bangladesh Bank 479,497,854,890 515,837,341,589
Surplus/(Deficit) 287,961,764,890 325,864,359,589
3.03.02.1 Actual Reserve held as Statutory Liquidity Ratio (SLR)
Cash in hand 5,016,917,890 5,112,714,589
Excess of CRR 19,627,546,000 14,626,597,000
Balance with Bangladesh Bank and its agent bank(s) - -
Unencumbered approved securities (HFT) 162,550,465,000 215,528,631,000
Unencumbered approved securities (HTM) 161,615,920,000 152,358,366,000
Other Eligible Securities 54,093,715,000 53,581,763,000
402,904,563,890 441,208,071,589
Amount in Taka
Ref.
Note
2018 2017 2018 2017
4.00 Balance with Other Banks and Financial Institutions:
In Bangladesh 4.01 84,915,155,405 62,556,320,682 84,915,142,558 62,555,142,558

Outside Bangladesh 4.02 22,877,291,208 6,315,909,795 22,579,241,911 6,013,405,848
107,792,446,613 68,872,230,477 107,494,384,469 68,568,548,406
4.01 Balance with other Banks and Financial Institutions:
In Bangladesh :
Transaction
Bank
Currency
Anser VDP unnayan Bank BDT 550,000,000 550,000,000 550,000,000 550,000,000
Al Arafa Islami Bank Ltd. BDT 1,000,000,000 - 1,000,000,000 -
AB bank Ltd. BDT 500,000,000 1,500,000,000 500,000,000 1,500,000,000
BRAC Bank Ltd. BDT 5,500,000,000 3,000,000,000 5,500,000,000 3,000,000,000
Commerce Bank of Ceylon BDT - 1,000,000,000 - 1,000,000,000

Transaction Amount in Taka

Particulars
Currency Consolidated Bank
2018 2017 2018 2017
Dhaka Bank Ltd. BDT 3,000,000,000 2,000,000,000 3,000,000,000 2,000,000,000
Dutch Bangla Bank Ltd. BDT - 1,000,000,000 - 1,000,000,000
Eastern Bank Ltd. BDT - 2,000,000,000 - 2,000,000,000
EXIM Bank Ltd. BDT 4,000,000,000 1,500,000,000 4,000,000,000 1,500,000,000
First Security Islami Bank Ltd. BDT 2,000,000,000 - 2,000,000,000 -
Farmers Bank Ltd. BDT 900,000,000 900,000,000 900,000,000 900,000,000
ICB Islamic Bank Ltd. BDT 145,142,558 145,142,558 145,142,558 145,142,558
IFIC Bank Lid. BDT 5,200,000,000 2,200,000,000 5,200,000,000 2,200,000,000
SBL, Foreign Ex. Corp. Br. BDT 92,473,119 80,307,732 - -
Dhaka Bank Islamic Banking Br. BDT 2,497 3,599 - -
SBL Uttara Br. BDT 2,338,426 2,246,252 - -
UCBL, Bijoynagar Br. BDT 10,350 1,174,526 - -
SBL Mirpur Shilpa Elaka Br. BDT 2,703,056 2,568,119 - -
Jamuna Bank Ltd. BDT 3,500,000,000 2,000,000,000 3,500,000,000 2,000,000,000
Karmashangsthan Bank BDT 1,000,000,000 - 1,000,000,000 -
Midland Bank Ltd. BDT 1,000,000,000 300,000,000 1,000,000,000 300,000,000
Mercantile Bank Ltd. BDT 5,800,000,000 2,350,000,000 5,800,000,000 2,350,000,000
Mutual Trust Bank Ltd. BDT 1,000,000,000 1,800,000,000 1,000,000,000 1,800,000,000
Meghna Bank Ltd. BDT 500,000,000 - 500,000,000 -
NRB Commerce Bank Ltd. BDT 500,000,000 500,000,000 500,000,000 500,000,000
NRB Global Bank Ltd. BDT 600,000,000 - 600,000,000 -
National Credit and Commerce

BDT 2,700,000,000 2,200,000,000 2,700,000,000 2,200,000,000
Bank Ltd.
National Bank Ltd. BDT 4,200,000,000 - 4,200,000,000 -
One Bank Ltd. BDT 3,200,000,000 1,950,000,000 3,200,000,000 1,950,000,000
Premier Bank Ltd. BDT - 1,150,000,000 - 1,150,000,000
Pubali Bank Ltd. BDT - 2,000,000,000 - 2,000,000,000
Rajshahi Krishi Unnayan Bank BDT 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Standard Bank Ltd. BDT 3,600,000,000 1,800,000,000 3,600,000,000 1,800,000,000
Southeast Bank Ltd. BDT 4,000,000,000 2,250,000,000 4,000,000,000 2,250,000,000
South Bangla Agricultural &
BDT - 500,000,000 - 500,000,000
Commerce Bank Ltd.
Social Islami Bank Ltd. BDT 1,500,000,000 1,500,000,000 1,500,000,000 1,500,000,000
Shahjalal Islami Bank Ltd. BDT - 1,200,000,000 - 1,200,000,000
Trust Bank Ltd. BDT 1,000,000,000 - 1,000,000,000 -

UCB Ltd. BDT 2,000,000,000 - 2,000,000,000 -
Union Bank Ltd. BDT 950,000,000 500,000,000 950,000,000 500,000,000
Sub Total 60,942,670,006 38,881,442,786 60,845,142,558 38,795,142,558
Non-Bank Financial Institutions
Bangladesh Industrial Finance
BDT 200,000,000 200,000,000 200,000,000 200,000,000
Company Ltd.
Bay Leasing & Investment BDT 250,000,000 400,000,000 250,000,000 400,000,000
FAS Finance & Investment Ltd. BDT 120,000,000 150,000,000 120,000,000 150,000,000
Islami Finance and Investment Ltd. BDT 100,000,000 - 100,000,000 -

Investment Corporation of
BDT 15,500,000,000 16,000,000,000 15,500,000,000 16,000,000,000
Bangladesh
GSP Finance Co. Ltd BDT 300,000,000 200,000,000 300,000,000 200,000,000
CAPM Venture Capital Ltd. BDT 50,000,000 - 50,000,000 -
260
Transaction Amount in Taka

Particulars
Currency Consolidated Bank
2018 2017 2018 2017
International Leasing & Finance
BDT 170,000,000 300,000,000 170,000,000 300,000,000
Service Ltd.
Meridian Finance Ltd. BDT 100,000,000 - 100,000,000 -
IPDC BDT 540,000,000 440,000,000 540,000,000 440,000,000
IIDFC BDT 300,000,000 350,000,000 300,000,000 350,000,000

People's Leasing & Financial
BDT 400,000,000 440,000,000 400,000,000 440,000,000
Services Ltd.
National Housing Finance Ltd. BDT 100,000,000 - 100,000,000 -
Premier Leasing & Finance Ltd BDT 380,000,000 380,000,000 380,000,000 380,000,000
Lanka Bangla Finance Ltd BDT 1,530,000,000 830,000,000 1,530,000,000 830,000,000

Reliance Finance Ltd. BDT 300,000,000 690,000,000 300,000,000 690,000,000
Fareast Finance & Investment
BDT 160,000,000 250,000,000 160,000,000 250,000,000
Company Ltd.
First Finance Investment Ltd. BDT 160,000,000 180,000,000 160,000,000 180,000,000
BD Finance Ltd. BDT 230,000,000 350,000,000 230,000,000 350,000,000
DBH BDT 550,000,000 550,000,000 550,000,000 550,000,000
IDLC BDT 1,650,000,000 1,150,000,000 1,650,000,000 1,150,000,000
National Finance Ltd. BDT 80,000,000 100,000,000 80,000,000 100,000,000
Phoenix Finance Ltd. BDT 350,000,000 400,000,000 350,000,000 400,000,000
Uttara Finance & Investment Ltd. BDT 550,000,000 400,000,000 550,000,000 400,000,000
Sub Total 24,070,000,000 23,760,000,000 24,070,000,000 23,760,000,000
Total 85,012,670,006 62,641,442,786 84,915,142,558 62,555,142,558
Less: Inter Company Balance Eliminated 97,514,601 85,122,104 - -
Grand Total 84,915,155,405 62,556,320,682 84,915,142,558 62,555,142,558
Balance Held with Foreign Banks

4.02
(Outside Bangladesh)
Foreign Banks 4.02.01 20,849,070,143 5,113,623,907 20,849,070,143 5,113,623,907
Asian Clearing Union 4.02.02 643,337,302 24,623,384 643,337,302 24,623,384
Overseas Branches of Sonali Bank Ltd. 4.02.03 1,086,834,466 875,158,557 1,086,834,466 875,158,557
Sonali Exchange Co. Inc 298,049,297 302,503,947 - -
22,877,291,208 6,315,909,795 22,579,241,911 6,013,405,848
4.02.01 Balance held with foreign bank
As at 31 December 2018
Sl.
Particulars Foreign Amount in
No. FC amount Exchange rate
Currency Taka
1 Sonali Bank (UK) Ltd. London EURO 8,030,576.63 95.25 764,927,301
2 Sonali Bank (UK) Ltd. London USD 404,596.30 83.90 33,945,630
6 Sonali Bank (UK) Ltd. London USD 10,597,998.85 83.90 889,172,104
7 Sonali Bank (UK) Ltd. London GBP 27.00 106.00 2,862
8 Sonali Bank (UK) Ltd. London GBP 1,200,614.62 106.00 127,264,309
9 Sonali Bank (UK) Ltd. London GBP 16,939.00 106.00 1,795,485
11 Sonali Bank (UK) Ltd. London GBP 1,722,882.91 106.00 182,624,383

Sl.
Currency Taka
12 Refidian Bank, Iraq USD 255,938.60 83.90 21,473,249
13 Bank Of America, NY USD 11,610.35 83.90 974,109
14 Zaire Bank, London GBP 276,433.40 106.00 29,301,747
15 Net West Plc, London USD 50,478.14 83.90 4,235,116
16 Chase Chemical Bank USD 693,634.15 83.90 58,195,906
17 Sonali Bank Ltd Kolkata USD 9,474.50 83.90 794,911
18 Sonali Bank (UK) Ltd. London USD 48,302,643.34 83.90 4,052,591,777
20 Bangladesh Foreign Post office USD 2,257,506.50 83.90 189,404,796
21 Standard Chartered Bank, N.Y. USD 6,438,098.10 83.90 540,156,431
22 Euno credito Italiana Spa. Italy EURO 1,149,645.00 95.25 109,505,641
23 Habib American BANK, N.Y. USD 902,333.30 83.90 75,705,764
24 CITY Bank NY USD 11,851,175.74 83.90 994,313,645
25 Standard Chartered Bank NY USD 74,866,096.87 83.90 6,281,265,527
26 Sonali Bank (UK) Ltd. London USD 43,837,335.27 83.90 3,677,952,429
27 Mashreq Bank N.Y USD 19,441,621.59 83.90 1,631,152,051
28 Standard Chartered Bank London GBP 3,205,727.56 106.00 339,804,941
30 Standard Chartered Bank, Singapore SGD 163,819.14 62.29 10,204,638
31 Dan Dansk DKK, Bank DKK 61,326.04 12.71 779,454
32 Union Bank Of Switzerland CHF 1,837,535.78 84.71 155,657,656
33 Bank of china Ltd CNY 1,941.71 12.54 24,349
34 Bank of Tokyo Ltd. Japan Yen 20,381,495.95 0.74 15,082,307
35 Standard Chartered Bank, Japan Yen 162,070.27 0.74 119,932
36 Commerz Bank Frankfurt, Germany EURO 13,236,570.78 95.25 1,260,805,869
37 BHF Bank Germany EURO 180,176.39 95.25 17,162,107
Total Debit Balance (A) 272,916,071.79 21,583,120,325
Sl.
Currency Taka
1 Habib American Bank, NY USD 3,432,869.52 83.90 288,017,752
2 Doha Bank, Qatar USD 3,231.00 83.90 271,081
3 Deutsche Bank TrustCo. NY USD 166,002.56 83.90 13,927,615
4 Net West Plc, London GBP 19,300.09 106.00 2,045,797
5 Amex Bank NY USD 14,647.53 83.90 1,228,927
6 Al Raji Bank Inv. Corp. Riadh USD 107,439.38 22.46 2,413,088
7 J.P Margon Chase Bank, N.Y. USD 4,653,669.47 83.90 390,442,868
8 Wells Fargo Bank NY USD 70,900.67 83.90 5,948,566
9 H.S.B.C Bank USA USD 196,565.49 83.90 16,491,844
10 Bank Of Montreal, Canada CAD 1,434.88 62.9 90,254
11 Aktif Yatirim Bank A.S Istanbul GBP 0.92 22.94 21
12 H.S.B.C Bank Australia ACD 6,886.53 59.18 407,545
13 Standard Chartered Bank, Garmany EURO 44,200.12 95.25 4,210,137
14 Sonali Bank (UK) Ltd. London EURO 89,811.35 95.25 8,554,684
Total Credit Balance (B) 8,806,959.50 734,050,182
Grand Total (A-B) 264,109,112.29 20,849,070,143
262
4.02.02 Balance Held with Asian Clearing Union (ACU)

Sl.
Currency Taka
1 Sonali Bank Ltd Kolkata EURO 82,000 95.25 7,810,665
2 Myanmar Economic Bank EURO 150,000 95.25 14,287,755
3 Myanmar Economic Bank USD 200,000 83.90 16,780,000
4 Nepal Bank Ltd. Kathmandu, Nepal USD 4,264 83.90 357,731
5 Myanmar Foreign Trade Bank USD 41,295 83.90 3,464,677
6 Bank of Bhutan USD 139,242 83.90 11,682,440
7 Habib Metropolitan Bank Ltd. USD 1,823,312 83.90 152,975,873
8 Myanmar Investment & Com. Bank USD 200,000 83.90 16,780,000
9 Standard Chartered Bank, Karachi USD 5 83.88 460
10 Sonali Bank Ltd Kolkata USD 4,983,014 83.90 418,074,856
11 Bank of Ceylon, Srilanka USD 13,383 83.90 1,122,846
Total 7,636,516 643,337,302
Balance Held with Overseas Branches of Sonali

4.02.03
Bank Limited
Sl.
Particulars Amount in
No. ForeignCurrency FC amount Exchange rate
Taka
1 Overseas Branches (Kolkata & Siliguri) IRS 910,017,974 1.1943 1,086,834,466
Total 910,017,974 1,086,834,466
4.03 Maturity Grouping of Balance with Other Banks & Financial Institutions
Amount in Taka
Notes Particulars Ref. Note Consolidated Bank
2018 2017 2018 2017
On Demand 6,440,000,000 15,720,000,000 6,440,000,000 15,720,000,000

Less than three months 44,029,070,173 46,983,623,907 44,029,070,173 46,983,623,907
More than three months but less than one year 57,178,233,882 6,023,464,012 56,880,171,738 5,719,781,941
More than one year but less than five years 145,142,558 145,142,558 145,142,558 145,142,558
More than five years - - - -
107,792,446,613 68,872,230,477 107,494,384,469 68,568,548,406
5.00 Money at Call on Short Notice
In Bangladesh 5.01 19,723,200,000 22,513,200,000 19,723,200,000 22,513,200,000
Outside Bangladesh 5.02 - 51,600,000 - 51,600,000
19,723,200,000 22,564,800,000 19,723,200,000 22,564,800,000
5.01 In Bangladesh
Bank
Oriental Bank( ICB Islamic) 173,200,000 173,200,000 173,200,000 173,200,000
AB Bank Ltd 2,100,000,000 1,450,000,000 2,100,000,000 1,450,000,000
The Farmers Bank Ltd 550,000,000 550,000,000 550,000,000 550,000,000
NRB Global Bank Ltd. 550,000,000 810,000,000 550,000,000 810,000,000
City Bank 4,000,000,000 2,190,000,000 4,000,000,000 2,190,000,000
Modhumoti Bank Ltd. 500,000,000 500,000,000 500,000,000 500,000,000
Meghna Bank Ltd. - 450,000,000 - 450,000,000
NRB Commercial Bank Ltd. - 150,000,000 - 150,000,000
NRB Global Bank Ltd. 150,000,000 750,000,000 150,000,000 750,000,000
NCC Bank Ltd. 1,000,000,000 500,000,000 1,000,000,000 500,000,000
One Bank Ltd 250,000,000 500,000,000 250,000,000 500,000,000
Premier Bank Ltd. - 990,000,000 - 990,000,000
Pubali Bank Ltd. 510,000,000 2,000,000,000 510,000,000 2,000,000,000

Amount in Taka
Ref.
Note
2018 2017 2018 2017
Rupali Bank Ltd. - 1,500,000,000 - 1,500,000,000

Standard Bank Ltd. - 800,000,000 - 800,000,000
Bank Alfalah Ltd. - 750,000,000 - 750,000,000
Basic Bank Ltd. 190,000,000 1,500,000,000 190,000,000 1,500,000,000
Bank Asia Ltd. - 1,500,000,000 - 1,500,000,000
Brac Bank Ltd. - 1,000,000,000 - 1,000,000,000
Dhaka Bank Ltd. - 200,000,000 - 200,000,000
Commerce Bank of Ceylon 450,000,000 - 450,000,000 -
Midland Bank Ltd 100,000,000 - 100,000,000 -
National Bank Ltd 1,990,000,000 - 1,990,000,000 -
Bangladesh Commerce Bank Ltd 200,000,000 - 200,000,000 -
Uttara Bank Ltd. 1,050,000,000 - 1,050,000,000 -
Sub Total 13,763,200,000 18,263,200,000 13,763,200,000 18,263,200,000
Non-Bank Financial Institutions

DBH 180,000,000 90,000,000 180,000,000 90,000,000
BFIC 100,000,000 90,000,000 100,000,000 90,000,000
Fareast Finance 170,000,000 190,000,000 170,000,000 190,000,000
First Finance Ltd. 120,000,000 130,000,000 120,000,000 130,000,000
FAS Finance 70,000,000 70,000,000 70,000,000 70,000,000
ICB 1,830,000,000 600,000,000 1,830,000,000 600,000,000
Lanka Bangla Finance 400,000,000 350,000,000 400,000,000 350,000,000
International Leasing Company
170,000,000 160,000,000 170,000,000 160,000,000
Limited
Midas Finance Ltd. 110,000,000 170,000,000 110,000,000 170,000,000
Phoenix Finance 170,000,000 170,000,000 170,000,000 170,000,000
People Leasing 160,000,000 180,000,000 160,000,000 180,000,000
Prime Finance and Investment Ltd. 150,000,000 250,000,000 150,000,000 250,000,000
Reliance Finance Ltd. 170,000,000 190,000,000 170,000,000 190,000,000
Premier Leasing 140,000,000 160,000,000 140,000,000 160,000,000
BD Finance Ltd. 130,000,000 160,000,000 130,000,000 160,000,000
Bay Leasing & Investment Ltd. 180,000,000 200,000,000 180,000,000 200,000,000
CAPM Venture Capital Ltd. 90,000,000 90,000,000 90,000,000 90,000,000
GSP Finance and Investment Ltd. 80,000,000 80,000,000 80,000,000 80,000,000
Meridian Finance and Investment
100,000,000 90,000,000 100,000,000 90,000,000
Ltd.
National Housing Finance Ltd. 170,000,000 150,000,000 170,000,000 150,000,000
National Finance and Investment
120,000,000 120,000,000 120,000,000 120,000,000
Ltd.
United Finance Ltd. - 230,000,000 - 230,000,000
IPDC 190,000,000 180,000,000 190,000,000 180,000,000
IIDFC 150,000,000 150,000,000 150,000,000 150,000,000
Uttara Finance 240,000,000 - 240,000,000 -
Union Capital 150,000,000 - 150,000,000 -
IDLC Finance 420,000,000 - 420,000,000 -
Sub Total 5,960,000,000 4,250,000,000 5,960,000,000 4,250,000,000
Grand Total 19,723,200,000 22,513,200,000 19,723,200,000 22,513,200,000
5.02 Outside Bangladesh
Kolkata & Shiliguri Branch of Sonali Bank Limited - 51,600,000 - 51,600,000
6.00 Investments
Government Securities 6.01 377,242,876,572 420,729,885,067 377,242,876,572 420,729,885,067
Other Investments 6.02 67,221,398,768 42,209,426,761 41,846,731,809

66,808,724,194
Total 444,464,275,340 462,939,311,828 444,051,600,766 462,576,616,876
264
Amount in Taka
2018 2017 2018 2017
6.01 Government Securities (considered as SLR)
Treasury bills-Primary 6.01.01 11,388,994,623 90,234,425,173 11,388,994,623 90,234,425,173
Government Notes/Bonds/other
6.01.02 364,870,719,349 329,515,611,744 364,870,719,349 329,515,611,744
securities
Prize Bond 64,590,200 61,275,750 64,590,200 61,275,750
ICB Share 913,424,500 913,424,500 913,424,500 913,424,500
Debentures Public 5,147,900 5,147,900 5,147,900 5,147,900
Reverse -Repo - - - -
377,242,876,572 420,729,885,067 377,242,876,572 420,729,885,067
6.01.01 Treasury Bills-primary
91 days Treasury Bills 6,478,844,609 13,690,851,063 6,478,844,609 13,690,851,063
5 year Treasury Bills - - - -
30 days Bangladesh Bank Bill - 69,458,108,000 - 69,458,108,000
11,388,994,623 90,234,425,173 11,388,994,623 90,234,425,173
6.01.02 Government Notes/Bonds/other securities
2 years Bangladesh Government
16,033,485,469 20,351,863,223 16,033,485,469 20,351,863,223
treasury bond (BGTB)
5 years Bangladesh Government
108,886,646,549 92,931,469,341 108,886,646,549 92,931,469,341
treasury bond (BGTB)
10 years Bangladesh Govt.
102,465,442,765 95,428,440,421 102,465,442,765 95,428,440,421
Treasury Bond(BGTB)
15 years Bangladesh Govt.
44,757,377,619 36,058,788,719 44,757,377,619 36,058,788,719
Treasury Bond
20 Years Government treasury
40,634,442,447 32,882,010,040 40,634,442,447 32,882,010,040
bond
5-13 years Treasury Bond (BJMC) 5,354,200,000 5,354,200,000 5,354,200,000 5,354,200,000
25 years BPC treasury Bond(BJMC) - - - -
5-15 years BPC treasury Bond 46,364,700,000 46,364,700,000 46,364,700,000 46,364,700,000
3 Years Treasury Bond (SBL) 332,037,000 - 332,037,000 -
25 years Treasury Bond (SPL) 42,387,500 144,140,000 42,387,500 144,140,000
364,870,719,349 329,515,611,744 364,870,719,349 329,515,611,744
Investment in Government securities classified as per Bangladesh Bank's DOS circular No. 05 date 26 May 2008
6.01.03
and DOS circular No. 05 date 28 January 2009.
Held to Maturity (HTM) 213,714,392,573 204,226,553,883 213,714,392,573 204,226,553,883
Held for Trading ( HFT) 6.01.03a 163,463,893,798 216,442,055,434 163,463,893,798 216,442,055,434
377,178,286,371 420,668,609,317 377,178,286,371 420,668,609,317
As per Bangladesh Bank Instruction, ICB share has been kept out of portfolio Investment and categorized as HFT
6.01.03a
component.
Details in Annexure-A
6.02 Other Investments:
Ordinary Share 6.02.01 10,882,747,699 14,466,174,311 10,520,052,747

14,878,848,885
Sonali Bank (UK) Limited 3,104,298,063 3,241,630,172 3,104,298,063 3,241,630,172
Debentures of private sectors 7,322,300 51,796,225 7,322,300 51,796,225
Security Deposit with Central Bank of India 9,615,126 9,707,493 9,615,126 9,707,493
Investment in foreign currency 4,947,801,000 6,508,064,000 4,947,801,000 6,508,064,000
Private Bond 6.02.02 43,930,000,000 21,340,000,000 43,930,000,000 21,340,000,000
Sonali Polaris FT Ltd. 26,250,000 26,250,000 26,250,000 26,250,000
Sub-total 66,904,135,374 42,060,195,589 66,491,460,800 41,697,500,637
Outside Bangladesh (Overseas Branches) 317,263,394 149,231,172 317,263,394 149,231,172
Total Other Investments 67,221,398,768 42,209,426,761 66,808,724,194 41,846,731,809

Amount in Taka
2018 2017 2018 2017
6.02.01 Ordinary Shares
Quoted-Fully paid-up-ordinary share* 7,139,156,471 4,843,034,907 7,139,156,471 4,843,034,907
Unquoted-Fully paid-up-ordinary share 7,327,017,840 5,677,017,840 7,327,017,840 5,677,017,840
Sonali Investment limited 412,674,574 362,694,952 - -
Share Revaluation - - - -
14,878,848,885 10,882,747,699 14,466,174,311 10,520,052,747
Investment in Shares & Bond
Number of Market Price Cost Price
Particulars
Company 2018 2018 2017
Listed Securities 124 5,339,757,537 7,139,156,471 4,843,034,907
Non-Listed Securities 12 7,327,017,840 7,327,017,840 5,677,017,840
Total 136 12,666,775,377 14,466,174,311 10,520,052,747
Sector wise investment
Listed securities
Particulars
Company 2018 2018 2017
Bank and NBFI 53 2,587,208,368 3,405,883,131 2,491,218,565
Insurance Companies 3 14,982,570 65,103,754 65,103,754
Fuel and Power Co. 11 506,186,172 731,052,961 625,790,542
Manufacturing & Other 57 2,231,380,428 2,937,116,625 1,660,922,046
Total 124 5,339,757,537 7,139,156,471 4,843,034,907
Non-Listed Securities
Particulars
Company 2018 2018 2017
Bank and NBFI 5 1,943,194,040 1,943,194,040 293,194,040
Manufacturing 2 10,337,900 10,337,900 10,337,900
Others 5 5,373,485,900 5,373,485,900 5,373,485,900
Total 12 7,327,017,840 7,327,017,840 5,677,017,840
The unlisted investments are shown at cost because the fair value cannot be measured reliably
Detail Shown in Annexure-F
Amount in Taka
Ref.
Note
2018 2017 2018 2017
6.02.02 Private bond ( 12 Years)
Prime Bank Ltd. Bond 1,400,000,000 500,000,000 1,400,000,000 500,000,000
Eastern Bank Bond 400,000,000 500,000,000 400,000,000 500,000,000
Bank Asia Bond 1,400,000,000 1,500,000,000 1,400,000,000 1,500,000,000
MTBL Bond 1,550,000,000 1,750,000,000 1,550,000,000 1,750,000,000
Jamuna Bank Bond 1,800,000,000 1,500,000,000 1,800,000,000 1,500,000,000
UCBL Bank Bond 1,300,000,000 1,000,000,000 1,300,000,000 1,000,000,000
SIBL Bank Bond 300,000,000 400,000,000 300,000,000 400,000,000
Standard Bank Bond 1,480,000,000 1,640,000,000 1,480,000,000 1,640,000,000
One Bank Bond 1,800,000,000 1,000,000,000 1,800,000,000 1,000,000,000
IFIC Bank Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
DBL Bond 1,800,000,000 800,000,000 1,800,000,000 800,000,000
TBL Bond 1,700,000,000 1,450,000,000 1,700,000,000 1,450,000,000
Southeast Bank Bond 1,950,000,000 1,600,000,000 1,950,000,000 1,600,000,000
AB Bank Bond 1,100,000,000 1,400,000,000 1,100,000,000 1,400,000,000
Premier Bank Bond 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000
266
Amount in Taka
2018 2017 2018 2017
Pubali Bank Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
The City Bank Bond 1,500,000,000 500,000,000 1,500,000,000 500,000,000
Dutch Bangla Bank Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
EXIM Bank Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
National Bank Bond 500,000,000 500,000,000 500,000,000 500,000,000
Farmers Bank Bond 900,000,000 - 900,000,000 -
Shahjalal Islami Bank Bond 750,000,000 - 750,000,000 -
Al Arafa Islami Bank Bond 500,000,000 - 500,000,000 -
Mercantile Bank Bond 1,000,000,000 - 1,000,000,000 -
Islami Bank Bond 1,000,000,000 - 1,000,000,000 -
Janata Bank Bond 12,000,000,000 - 12,000,000,000 -
Rupali Bank Bond 2,000,000,000 - 2,000,000,000 -
NCC Bank Bond 500,000,000 - 500,000,000 -
43,930,000,000 21,340,000,000 43,930,000,000 21,340,000,000
Classification of Statutory and
6.03
Non-statutory Investment
Statutory Investment Portfolio 6.03.01 377,178,286,371 420,668,609,317 377,178,286,371 420,668,609,317
Non-Statutory Investment Portfolio 6.03.02 67,285,988,969 42,270,702,511 66,873,314,395 41,908,007,559
444,464,275,340 462,939,311,828 444,051,600,766 462,576,616,876
6.03.01 Statutory Investment Portfolio
Held to Maturity (HTM) 213,714,392,573 204,226,553,883 213,714,392,573

204,226,553,883
Held for Trading ( HFT) 163,463,893,798 216,442,055,434 163,463,893,798 216,442,055,434
377,178,286,371 420,668,609,317 377,178,286,371 420,668,609,317
6.03.02 Non-Statutory Investment Portfolio
Ordinary Share 6.02.01 10,882,747,699 14,466,174,311 10,520,052,747

14,878,848,885
Sonali Bank (UK) Limited 3,104,298,063 3,241,630,172 3,104,298,063 3,241,630,172
Debentures of private sectors 7,322,300 51,796,225 7,322,300 51,796,225
Security Deposit with Central Bank
9,615,126 9,707,493 9,615,126 9,707,493
of India
Investment in foreign currency 4,947,801,000 6,508,064,000 4,947,801,000 6,508,064,000
Private Bond 6.02.02 43,930,000,000 21,340,000,000 43,930,000,000 21,340,000,000
Sonali Polaris FT Ltd. 26,250,000 26,250,000 26,250,000 26,250,000
Outside Bangladesh (Overseas
317,263,395 149,231,172 317,263,395 149,231,172
Branches)
Prize Bond 64,590,200 61,275,750 64,590,200 61,275,750
67,285,988,969 42,270,702,511 66,873,314,395 41,908,007,559
Maturity grouping of Investments
6.04
as follows :
On demand 3,063,490,202 10,996,800,000 3,063,490,202 10,996,800,000
Less than three months 10,593,744,609 81,478,501,995 10,593,744,609 81,478,501,995
More than three months but less
41,740,022,423 36,140,847,678 41,740,022,423 36,140,847,678
than one year
More than one year but less than five years 182,850,017,776 166,342,517,664 165,979,822,712
182,437,343,202
Above five years 206,217,000,330 167,980,644,491 206,217,000,330 167,980,644,491
444,464,275,340 462,939,311,828 444,051,600,766 462,576,616,876
7.00 Loans and advances
Loans, cash credits and overdrafts 7.03 454,162,344,072 413,854,566,578 451,925,719,263 411,581,115,124
Bills purchased and discounted 7.04 12,157,600,114 11,637,238,819 12,157,600,114 11,637,238,819
466,319,944,186 425,491,805,397 464,083,319,377 423,218,353,943

Amount in Taka
2018 2017 2018 2017
Maturity Grouping of Loans and Advances
7.01
(excluding Bills purchased and discounted)
Loans and advances are repayable: 29,866,017,745 31,186,831,527 29,866,017,745 31,186,831,527
Repayable on demand 11,535,769,685 2,793,065,466 11,535,769,685 2,793,065,466
Not more than 3 months 173,723,332,096 163,071,175,171 171,486,707,287 160,797,723,718
More than 3 months but not more than 1 year 111,441,791,762 89,917,062,917 111,441,791,762 89,917,062,916
More than 1 year but not more than 5 years 127,595,432,784 126,886,431,497 127,595,432,784 126,886,431,497
More than 5 years 454,162,344,072 413,854,566,578 451,925,719,263 411,581,115,124
Loans and Advances (In and outside
7.02 Bangladesh) including bills purchased and
discounted
In Bangladesh 7.02.01 463,519,363,010 423,377,121,976 461,282,738,201 421,103,670,522
Outside Bangladesh 7.02.02 2,800,581,176 2,114,683,421 2,800,581,176 2,114,683,421
466,319,944,186 425,491,805,397 464,083,319,377 423,218,353,943
7.02.01 In Bangladesh
Loan 397,775,590,757 357,949,955,641 397,775,590,757 357,949,955,641
Cash Credit 30,299,265,078 30,205,834,652 30,299,265,078 30,205,834,652
Overdraft 23,631,360,041 23,152,592,028 23,631,360,041 23,152,592,028
Portfolio Loan to Investors 2,236,624,809 2,273,451,454 - -
Bills purchased and discounted 9,576,522,325 9,795,288,201 9,576,522,325 9,795,288,201
463,519,363,010 423,377,121,976 461,282,738,201 421,103,670,522
7.02.02 Outside Bangladesh
Loan 59,194,110 66,906,240 59,194,110 66,906,240
Cash Credit 1,460,076 3,231,244 1,460,076 3,231,244
Overdraft 158,849,201 202,595,319 158,849,201 202,595,319
Bills purchased and discounted 2,581,077,789 1,841,950,618 2,581,077,789 1,841,950,618
2,800,581,176 2,114,683,421 2,800,581,176 2,114,683,421
7.03 Loans, cash credits and overdrafts
Loan 7.03.01 397,834,784,867 358,016,861,881 397,834,784,867 358,016,861,881
Cash Credit 7.03.02 30,300,725,154 30,209,065,896 30,300,725,154 30,209,065,896
Overdraft 7.03.03 23,790,209,242 23,355,187,347 23,790,209,242 23,355,187,347
Portfolio Loan to Investors 7.03.04 2,236,624,809 2,273,451,454 - -
454,162,344,072 413,854,566,578 451,925,719,263 411,581,115,124
7.03.01 Head-wise Loans, Cash Credits and Overdrafts:
Inside Bangladesh:
Loans
Demand Loan 2,172,773 335,910,770 2,172,773 335,910,770
Small Loan 115,766,832 388,983,239 115,766,832 388,983,239
House Building Loan (General) 2,615,501,705 583,960,723 2,615,501,705 583,960,723
Staff Loan 7.03.01.1 62,536,113,869 61,087,913,982 62,536,113,869 61,087,913,982
Special Small Loan Program 31,825,921 175,030,282 31,825,921 175,030,282
Loan Under S.B Industrial Credit
35,732,514,069 37,568,156,765 35,732,514,069 37,568,156,765
Scheme(Project)
Loan under External Credit Program 86,253,183 90,352,639 86,253,183 90,352,639
Working Capital to Industries. (Hypo) 32,180,878,963 30,876,904,440 32,180,878,963 30,876,904,440
Working Capital to Industries.( Pledge) 2,716,069,717 2,680,461,836 2,716,069,717 2,680,461,836
Sonali credit 120,191,453 115,330,087 120,191,453 115,330,087
Loan under'SB Agro Based Industrial Cr.Scheme 13,452,067,982 13,607,188,844 13,452,067,982 13,607,188,844
Working Capital to Agro based Ind. (Hypo) 10,517,055,242 9,635,483,434 10,517,055,242 9,635,483,434
Working Capital to Agro based Ind..( Pledge) 7,587,345,503 7,605,375,442 7,587,345,503 7,605,375,442
Agricultural Loan 47,325,522,775 44,620,102,386 47,325,522,775 44,620,102,386
268
Amount in Taka
2018 2017 2018 2017
Micro Credit (SFL Scheme plus RSTL Scheme) 12,191,214,799 12,181,814,665 12,191,214,799 12,181,814,665
Loan under Imported Merchandise(LIM) 2,341,514,489 2,307,322,463 2,341,514,489 2,307,322,463
Loan against Trust Receipt 43,148,705,457 35,536,818,039 43,148,705,457 35,536,818,039
Forced Loan against Back to Back L/C 24,165,004,775 24,565,140,359 24,165,004,775 24,565,140,359
Loan for L/C under WES. 136,339 136,339 136,339 136,339
Loan against Inland Bills 442,956,012 809,756,646 442,956,012 809,756,646
Current Account Barter (Debit Balance) 932,606,463 932,606,463 932,606,463 932,606,463
Bridge Finance 3,039,036,649 2,808,525,428 3,039,036,649 2,808,525,428
Small Business Loan 1,626,847,509 1,460,416,597 1,626,847,509 1,460,416,597
Lease Finance 94,563,048 94,466,048 94,563,048 94,466,048
Personal Loan 47,072,270,707 36,176,764,935 47,072,270,707 36,176,764,935
Term Loan to Freedom Fighter 18,469,977,034 10,934,082,503 18,469,977,034 10,934,082,503
Education Loan - 24,260,856 - 24,260,856
Foreign Education Loan Program 818,522 932,737 818,522 932,737
SME Finance(Term Loan to Service) 528,023,953 572,526,826 528,023,953 572,526,826
SME Finance(Term Loan Industries) 100,338,534 338,909,394 100,338,534 338,909,394
SME Finance (Working Capital to
20,101,931,557 18,270,066,278 20,101,931,557 18,270,066,278
Ind.Ser.Tre.)
Special Loan - Advance rent
70,746,170 64,254,196 70,746,170 64,254,196
(Interest Bearing)
Term Loan to Banks & NBFIs 2,000,000,000 1,500,000,000 2,000,000,000 1,500,000,000
Forced Loan A/C-EDF 502,299,451 - 502,299,451 -
Rural Housing Finance - Sonali Neer A/C 19,265,784 - 19,265,784 -
Loan Against Food Procurement Bill A/C 5,908,053,518 - 5,908,053,518 -
397,775,590,757 357,949,955,641 397,775,590,757 357,949,955,641
Outside Bangladesh:
Loan
Demand Loan 35,412,285 40,518,205 35,412,285 40,518,205
Small Loan 1,323,850 - 1,323,850 -
House Building Loan 22,457,975 26,388,035 22,457,975 26,388,035
59,194,110 66,906,240 59,194,110 66,906,240
Total Loans 397,834,784,867 358,016,861,881 397,834,784,867 358,016,861,881
7.03.01.1 Staff Loan
Staff House Building Loan 58,649,766,123 57,178,790,056 58,649,766,123 57,178,790,056
Staff Loan 3,886,347,746 3,909,123,926 3,886,347,746 3,909,123,926
62,536,113,869 61,087,913,982 62,536,113,869 61,087,913,982
7.03.02 Cash Credits:
In Bangladesh
Cash Credit General (Hypo) 9,664,507,014 9,715,514,560 9,664,507,014 9,715,514,560
Cash Credit General (Pledge) 16,031,651,806 15,814,334,860 16,031,651,806 15,814,334,860
Packing Cash Credit 4,603,106,258 4,675,985,232 4,603,106,258 4,675,985,232
30,299,265,078 30,205,834,652 30,299,265,078 30,205,834,652
Outside Bangladesh:
Cash Credit 1,460,076 3,231,244 1,460,076 3,231,244
Total Cash Credit 30,300,725,154 30,209,065,896 30,300,725,154 30,209,065,896
7.03.03 Overdrafts etc.:
Overdraft Loan (In Bangladesh) 23,631,360,041 23,152,592,028 23,631,360,041 23,152,592,028
23,631,360,041 23,152,592,028 23,631,360,041 23,152,592,028
Overdraft Loan (Outside Bangladesh) 158,849,201 202,595,319 158,849,201 202,595,319

Total Overdrafts etc. 23,790,209,242 23,355,187,347 23,790,209,242 23,355,187,347

Amount in Taka
2018 2017 2018 2017
7.03.04 Portfolio Loan to Investors
Opening balance 2,273,451,454 2,329,445,855 - -

Add: Charged apply during the year 231,114,215 96,744,271 - -
Add: Loan disbursed during the year 394,425,434 1,066,566,355 - -
Less: Loan recovered during the year (662,366,294) (1,219,305,027) - -
Total Portfolio Loan to Investors 2,236,624,809 2,273,451,454 - -
7.04 Bills Purchased and Discounted (excluding treasury bills)
Payable inside Bangladesh 9,576,522,325 9,795,288,201 9,576,522,325 9,795,288,201
Payable outside Bangladesh 2,581,077,789 1,841,950,618 2,581,077,789 1,841,950,618
12,157,600,114 11,637,238,819 12,157,600,114 11,637,238,819
7.04.01 Bill Discounted and Purchased
In Bangladesh
Payment against Documents (PAD) 7,237,122,625 7,456,091,363 7,237,122,625 7,456,091,363
Inland Bills Purchased 2,339,399,700 2,339,196,838 2,339,399,700 2,339,196,838
9,576,522,325 9,795,288,201 9,576,522,325 9,795,288,201
Outside Bangladesh
Bill Purchased /Negotiated (Documents) 708,386,779 177,340,843 708,386,779 177,340,843
Foreign Bills Purchased/Negotiated (Clean) 52,261,638 64,937,757 52,261,638 64,937,757
Foreign Bills Purchased/Negotiated
1,676,752,025 1,599,672,018 1,676,752,025 1,599,672,018
(Documents)
Foreign Bills Purchased/Negotiated
143,677,347 - 143,677,347 -
(Documents) of Overseas Branches
2,581,077,789 1,841,950,618 2,581,077,789 1,841,950,618
7.04.02 Maturity grouping bills purchased and discounted
Bills purchased and discounted
Not more than 1 Month 7,477,487,918 3,997,486,914 7,477,487,918 3,997,486,914
More than 1 month but not more than 3 Months 2,164,957,666 1,533,756,633 2,164,957,666 1,533,756,633
More than 3 months but not more than 6 Months 1,594,984,724 657,465,547 1,594,984,724 657,465,547
More than 6 Months 920,169,806 5,448,529,725 920,169,806 5,448,529,725
12,157,600,114 11,637,238,819 12,157,600,114 11,637,238,819
7.05 Net Performing loans and advances / Investments
Gross loans and advances / investments 466,319,944,186 425,491,805,397 464,083,319,377 423,218,353,943
Non-performing loans and advances / investments (121,883,400,000) (149,302,400,000) (121,883,400,000) (149,302,400,000)
344,436,544,186 276,189,405,397 342,199,919,377 273,915,953,943
7.06 Loans and advances / Investments on the basis of significant concentration excluding bills purchased and discounted
Advances to allied concerns of directors - -
Advances to Chief Executive and other Senior Executives 6,436,651 7,568,987
Advances to the Customers Group (Amounting more than 10 % of bank's total Capital) 88,186,776,123 198,647,023,537
Other Customers 301,196,392,620 151,838,608,618
Advance to Staff 62,536,113,869 61,087,913,982
451,925,719,263 411,581,115,124
270
Amount in Taka
2018 2017 2018 2017
Number of clients, with amount of outstanding and classified loans to whom loans and advances sanctioned more
7.07
than 10% of Paid up capital
Disclosures on Large loan i.e. Loan sanctioned to any individual or enterprise or any organization of a group amounting
to 10% or more of the Bank’s total capital and classified amount therein and measures taken for recovery of such loan
have been furnished as under.
No .of Client 19 13
Paid up Capital 45,300,000,000 47,683,784,914

10% of total capital 4,530,000,000 4,768,378,491
Measures taken for recovery of Classified Loan
Bank as a whole takes following steps to recover its classified loans and advances
a) Sending letters and remind to customers.
b) Recovery cell including top management level holds discussion with the clients to recover the loans.
c) Maintain special recovery arrangement through loan fair, client gathering, recovery campaign,etc.
d) Legal proceedings and quick settlement.
e) Providing incentives to employee for cash recovery from classified and written-off loans.
During the year 2018, there are large amount of outstanding and classified loans, to whom loans and advances
7.07(a)
sanctioned more than 10% of paid up capital of the bank.
Summary of Borrower are shown below :
Outstanding Classified Classification
Name of the Borrower % of Total Loan
amount amount status
Beximco Group 17,455,375,000 - UC, SMA 3.76%
Hall Mark Group 17,130,226,369 17,130,226,369 BL,BLW 3.69%
T & Brothers Group 4,902,653,057 4,902,653,057 BL 1.06%
Thermex Group 8,930,798,000 - UC 1.92%
Bangladesh Chemical Industries Corp. 15,438,459,160 - UC 3.33%
B. A. D. C. 15,622,272,624 - UC 3.37%
Bangladesh Sugar & Food Ind.Cor.Bsfic 8,706,991,913 - UC 1.88%
Total 88,186,776,123 22,032,879,426 19%
Amount in Taka
2018
Name of the Borrower
Non Funded
Funded Loan Total Loan Status of Loan
Loan
7.07(b) Details about the Group / Single Borrower
A. Group Borrower
Beximco Group
UC=319,000,000
Beximco Ltd. 13,176,289,000 319,000,000 13,495,289,000
SMA= 13,176,289,000
SMA=545,810,000
M/s Beximco Synthetics Ltd. 903,707,000 6,845,000 910,552,000
UC=364,742,000
UC=375,900,000
M/s Beximco Fashions Limited 36,632,000 375,900,000 412,532,000
SMA= 36,632,000
GMG Airlines Ltd. 2,567,137,000 - 2,567,137,000 UC=2,567,137,000
Sinepukur Ceramic Ltd. 771,610,000 82,048,000 853,658,000 UC=853,658,000
17,455,375,000 783,793,000 18,239,168,000
Hall Mark Group
UC 4,080,212,071
M/S Hall Mark Fashion Limited 3,431,742,132 4,080,212,071 7,511,954,203
BL 3,431,742,132
M/S Max Spinning Mills 5,256,038,600 - 5,256,038,600 BLW=5,256,038,600
M/S Anowara Spinning Mills 4,743,558,400 - 4,743,558,400 BLW=4,743,558,400
M/s Wall-Mart Fashion Limited 1,700,451,311 - 1,700,451,311 BLW=1,700,451,311

Amount in Taka
2018
Non Funded
Loan
M/s Islam Fashion Ltd - 1,182,063,735 1,182,063,735 UC=1,182,063,735
M/s Don Apparels Ltd - 894,786,922 894,786,922 UC=894,786,922
UC=842,526,976
M/s Farhan Fashion Ltd 2,630,920 842,526,976 845,157,896
BL=2,630,920
M/s Mahmud Apparels Ltd - 791,175,604 791,175,604 UC=791,175,604
M/s Hall Mark Spinning Mills Ltd 724,200,477 - 724,200,477 BL=724,223,527
UC=192,106,217,
M/s Hall Mark Design Wear Limited 395,151,078 192,106,217 587,257,295
BL=395,151,078
BLW=238,235,821
M/s Boby Fashion Ltd 238,235,821 17,054,537 255,290,358
UC=17,054,537
M/s Hall Mark Denim Composite Ltd 128,926,798 - 128,926,798 BLW=128,926,798
M/s Boby Flatbed Printing Ltd 114,107,820 - 114,107,820 BL=114,107,820
M/s Hall Mark Accessories Ltd 82,721,345 - 82,721,345 BL=82,721,345
M/s Hall Mark Style Ltd 71,123,997 - 71,123,997 BLW=71,123,997
M/s Boby Denim Composite Ltd 70,434,740 - 70,434,740 BLW=70,434,740
M/s Perfect Embroidery Ltd 46,252,176 - 46,252,176 BL=46,252,176
M/s Hall Mark Knit Composite Ltd 44,156,437 - 44,156,437 BLW=44,156,437
M/s Jishan Knit Composite Ltd 41,952,985 - 41,952,985 BL=41,952,985
M/s Hall Mark Knitting & Dyeing Ltd 29,408,207 - 29,408,207 BLW=29,408,207
M/s Hall Mark Packaging Ltd 9,133,125 - 9,133,125 BLW=9,133,125
17,130,226,369 7,999,926,062 25,130,152,431
T & Brothers Group
UC=1,611,832,723
M/s T & Brother Knit Composite Ltd 2,231,486,654 1,611,832,723 3,843,319,377
BL=2,231,486,654
M/s Exper Take Ltd 1,756,916,409 - 1,756,916,409 BL=1,756,916,409
UC=514,381,651
M/s Dress Me Fashions Ltd 780,899,994 514,381,651 1,295,281,645
BL=780,899,994
LNS Accessories 133,350,000 - 133,350,000 BL=133,350,000
4,902,653,057 2,126,214,374 7,028,867,431
Thermex Group
Thermax Check Fabrics Ltd. 2,717,024,000 140,939,000 2,857,963,000 UC=2,857,963,000
Indigo Spinning Ltd. 2,692,031,000 204,136,000 2,896,167,000 UC=2,896,167,000
M/s Thermax Melange Spinning Mills Ltd. 1,824,464,000 371,694,000 2,196,158,000 UC=2,196,158,000
Thermax Knit Yarn Ltd 1,351,379,000 430,617,000 1,781,996,000 UC=1,781,996,000
Thermax Spinning Limited 345,900,000 - 345,900,000 UC=345,900,000
8,930,798,000 1,147,386,000 10,078,184,000
Sub Total 48,419,052,426 12,057,319,436 60,476,371,862
B. Single Borrower
Roopur NNP Project - 858,933,200,000 858,933,200,000 UC
Electricity Generation Company of
- 5,603,557,000 5,603,557,000 UC
Bangladesh (EGCB) Ltd
B-R Powergen Ltd - 7,873,408,971 7,873,408,971 UC
Bangladesh Chemical Industries
15,438,459,160 12,681,862,952 28,120,322,112 UC
Corporation
Bangladesh Agricultural Development
15,622,272,624 9,015,413,837 24,637,686,461 UC
Corporation (BADC)
Bangladesh Road Transport Corporation - 4,682,288,000 4,682,288,000 UC
Bangladesh Air Force - 7,223,008,123 7,223,008,123 UC
Bangladesh Railway - 8,802,059,589 8,802,059,589 UC
Bangladesh Rural Development Board - 5,725,234,091 5,725,234,091 UC
Bangladesh Water Development Board - 78,476,596,352 78,476,596,352 UC
Bangladesh Coast Guard - 4,606,000,000 4,606,000,000 UC
Bangladesh Petroleum Corporation - 6,205,496,000 6,205,496,000 UC
272
Amount in Taka
2018
Non Funded
Loan
Bangladesh Rural Electrification Board - 11,514,824,329 11,514,824,329 UC
Bangladesh Sugar & Food Ind. Cor. (BSFIC) 8,706,991,913 - 8,706,991,913 UC
Director General Of Food - 12,048,834,327 12,048,834,327 UC
Sub-total 39,767,723,697 1,033,391,783,571 1,073,159,507,268
Grand Total (A+B) 88,186,776,123 1,045,449,103,007 1,133,635,879,130

7.07.01 Restructured Loan
In line with BRPD circular No. 04/2015, Bangladesh Bank allowed the Bank through vide letter no. BRPD(P-
1)/661/13(Cha)/2015-6468; dated: 30/08/2015 and BRPD(P-1)/661/13(Cha)/2015-5621; dated 30/07/2015 respectively
to restructure the loans and advances of borrowers named M/s Beximco Limited and M/s Modern Steel Mills Limited.
The details are mentioned below:
Restructured
Name of the Borrower Payment Tenure
Amount
1. Beximco Limited
(i) Demand Loan -
(ii) Term Loan 13,176,288,956 6 years for demand
Sub Total 13,176,288,956 loan and 12 years for
2. Modern Steel Mills Limited term loan along with
(i) Demand Loan - 1 year moratorium
(ii) Term Loan 3,530,420,149 period
Sub Total 3,530,420,149
Grand Total 16,706,709,105
No. of Amount in Taka % of Total Loan

Particulars
Branches 2018 2017 2018 2017
7.08 Geographical Area-wise Loans and Advances
In Bangladesh 7.08.01
Urban 701 364,252,168,903 78.49 77.74

329,001,324,307
Rural 512 99,467,969,739 21.43 22.16
93,766,955,990
Sub Total 1213 463,720,138,642 422,768,280,297 99.922 99.894
Outside Bangladesh 7.08.02

Overseas 2 363,180,735 450,073,646 0.078 0.106
Total 1215 464,083,319,377 423,218,353,943 100 100
Head office is included in Urban
7.08.01 In Bangladesh (GM's office & District wise)
Barishal GM's Office

Barishal 36 5,875,634,404 4,808,407,420 1.266 1.136
Patuakhali 20 4,016,258,738 3,465,301,520 0.865 0.819
Bhola 10 1,102,923,289 938,464,958 0.238 0.222
Pirojpur 10 1,669,147,971 1,402,603,502 0.360 0.331
Sub Total 76 12,663,964,402 10,614,777,400 2.729 2.508
Chattogram GM's Office

Chattogram North 27 6,140,901,049 4,403,739,634 1.323 1.041
Chattogram South 28 12,604,487,325 13,374,566,134 2.716 3.160
Rangamati 23 3,351,140,415 2,644,037,097 0.722 0.625


Particulars
Branches 2018 2017 2018 2017
Bandarbon 7 903,886,992 819,904,844 0.195 0.194
Cox's Bazar 10 2,237,417,584 2,124,760,567 0.482 0.502
Patiya 13 1,084,063,291 1,036,063,535 0.234 0.245
Sub Total 108 26,321,896,656 24,403,071,811 5.672 5.766
Cumilla GM's Office
Brahmanbaria 24 2,732,462,071 2,381,900,024 0.589 0.563
Chandpur 20 2,134,436,761 1,926,897,923 0.460 0.455
Cumilla 35 6,055,071,679 5,267,975,804 1.305 1.245
Feni 17 1,711,248,885 1,591,059,340 0.369 0.376
Noakhali 28 3,463,788,413 3,331,462,365 0.746 0.787
Laxmipur 12 2,121,409,212 2,031,856,343 0.457 0.480
Sub Total 136 18,218,417,022 16,531,151,799 3.926 3.906
Dhaka GM's Office

Dhaka Corp. 125 224,666,122,101 203,354,599,963 48.411 48.050
Gazipur 23 3,333,149,608 2,852,771,587 0.718 0.674
Munshiganj 17 1,649,147,492 1,542,937,066 0.355 0.365
Narayanganj 19 3,045,836,169 7,771,420,292 0.656 1.836
Narsingdi 20 3,181,215,724 2,730,431,885 0.685 0.645
Manikganj 11 1,456,415,040 1,314,117,771 0.314 0.311
Sub Total 215 237,331,886,134 219,566,278,564 51.140 51.880
Faridpur GM's Office
Chuadanga 19 2,964,199,832 2,661,956,476 0.639 0.629
Faridpur 23 6,254,720,766 5,816,221,868 1.348 1.374
Kushtia 22 4,116,561,358 3,820,933,978 0.887 0.903
Madaripur 17 2,235,108,629 1,843,833,714 0.482 0.436
Gopalgonj 12 1,278,505,463 1,011,934,058 0.275 0.239
Rajbari 12 1,173,857,887 1,061,692,655 0.253 0.251
Sub Total 105 18,022,953,934 16,216,572,749 3.884 3.832
Khulna GM's Office
Jashore 35 5,086,839,690 3,685,355,221 1.096 0.871
Jhenaidah 23 6,424,535,242 5,699,554,238 1.384 1.347
Khulna 24 25,922,441,476 25,659,052,009 5.586 6.063
Satkhira 17 2,005,681,036 1,737,580,071 0.432 0.411
Bagerhat 14 2,080,998,890 1,775,236,719 0.448 0.419
Narail 11 1,726,991,493 1,451,859,029 0.372 0.343
Sub Total 124 43,247,487,827 40,008,637,287 9.319 9.453
Mymensingh GM's Office
Jamalpur 19 6,922,930,301 6,708,431,185 1.492 1.585
Kishoregonj 17 2,505,410,088 2,344,931,057 0.540 0.554
Mymensingh 25 6,138,540,291 5,239,674,277 1.323 1.238
Tangail 30 4,554,124,967 4,062,323,843 0.981 0.960
Netrokona 14 4,369,386,776 3,739,731,902 0.942 0.884
Sherpur 9 2,735,376,713 2,588,456,352 0.589 0.612
Sub Total 114 27,225,769,137 24,683,548,616 5.867 5.832
Rajshahi GM's Office
Bogura 32 6,094,499,777 5,478,495,227 1.313 1.294
Naogaon 19 3,231,514,898 2,646,710,755 0.696 0.625
Pabna 18 3,144,417,167 2,613,628,406 0.678 0.618
Rajshahi 23 6,884,789,303 6,484,774,795 1.484 1.532
Sirajganj 21 2,729,790,991 2,753,878,335 0.588 0.651
Chapai Nawabganj 8 1,826,059,828 1,496,150,388 0.393 0.354
Joypurhat 8 3,359,026,522 2,915,859,616 0.724 0.689
Natore 13 5,463,141,536 4,914,550,667 1.177 1.161
Sub Total 142 32,733,240,022 29,304,048,189 7.053 6.924
274

Particulars
Branches 2018 2017 2018 2017
Rangpur GM's Office
Dinajpur 32 7,922,923,706 6,790,665,801 1.707 1.605
Gaibandha 16 6,370,862,114 5,865,438,275 1.373 1.386
Kurigram 16 4,754,409,855 3,820,067,939 1.024 0.903
Rangpur 19 7,897,624,419 6,853,947,444 1.702 1.619
Thakurgaon 21 9,456,755,891 8,300,487,007 2.038 1.961
Nilphamari 10 4,043,822,215 3,278,276,941 0.871 0.775
Sub Total 114 40,446,398,200 34,908,883,407 8.715 8.248
Sylhet GM's Office

Moulvibazar 22 1,607,835,762 1,464,505,709 0.346 0.346
Sylhet 32 2,247,559,902 2,008,506,416 0.484 0.475
Habiganj 13 1,522,998,338 1,251,469,765 0.328 0.296
Sunamganj 12 2,129,731,306 1,806,828,585 0.459 0.427
Sub Total 79 7,508,125,308 6,531,310,475 1.618 1.543
Total 1213 463,720,138,642 422,768,280,297 100 100
7.08.02 Outside Bangladesh

Kolkata & Siliguri 2 363,180,735 450,073,646 0.078 0.106
Total Loans & Advances 1215 464,083,319,377 423,218,353,943 100 100
Head office is included in Number of Branches and Total Loans & Advances
7.08.03 Divisional Office wise
In Bangladesh
Dhaka-1 119 187,889,182,738 175,683,287,962 40.49 41.51
Dhaka-2 96 49,442,703,396 43,882,990,602 10.65 10.37
Barishal 76 12,663,964,402 10,614,777,400 2.73 2.51
Chattogram 108 26,321,896,656 24,403,071,811 5.67 5.77
Cumilla 136 18,218,417,022 16,531,151,799 3.93 3.91
Faridpur 105 18,022,953,934 16,216,572,749 3.88 3.83
Khulna 124 43,247,487,827 40,008,637,287 9.32 9.45
Mymensing 114 27,225,769,137 24,683,548,616 5.87 5.83
Rajshahi 142 32,733,240,022 29,304,048,189 7.05 6.92
Rangpur 114 40,446,398,200 8.72 8.25

34,908,883,407
Sylhet 79 7,508,125,308 6,531,310,475 1.62 1.54
1213 463,720,138,642 422,768,280,297 99.92 99.89
Outside Bangladesh
Kolkata & Siliguri 2 363,180,735 450,073,646 0.09 0.11
Total 1215 464,083,319,377 423,218,353,943 100 100
Amount in Taka
Particulars
2018 2017
7.09 Details of Provision required and held for loans and advances:
A. Required Provision for loans and advances:
For Classified Loan 40,106,938,329 35,439,686,982
For Loan against which writ has been filed 3,939,000,000 3,424,600,000
For Unclassified Loan 5,223,300,000 2,170,200,000
49,269,238,329 41,034,486,982

Amount in Taka
Particulars
2018 2017
B. Provision Made for loans and advances:
For Classified Loan including writ 44,045,938,329 38,864,286,982
For Unclassified Loan 5,223,300,000 2,788,700,000
49,269,238,329 41,652,986,982
C. Provision Surplus/(Deficit){A-B}
For Classified Loan including writ - -
For Unclassified Loan - 618,500,000
- 618,500,000
% of Total Loan Amount in Taka

Particulars
2018 2017 2018 2017
7.09.01 Classification of advances as per Bangladesh
Bank circular
Unclassified
Standard including staff loan 68.01% 62.64% 315,622,838,642 265,105,180,297
Special Mention Account (SMA) 5.65% 1.98% 26,213,900,000 8,360,700,000
73.66% 64.62% 341,836,738,642 273,465,880,297
Classified
Substandard 1.73% 2.32% 8,050,800,000 9,816,600,000
Doubtful 0.84% 1.74% 3,897,400,000 7,344,400,000
Bad / Loss 23.69% 31.22% 109,935,200,000 132,141,400,000
26.26% 35.28% 121,883,400,000 149,302,400,000
Overseas branches 0.08% 0.11% 363,180,735 450,073,646
100.00% 100.00% 464,083,319,377 423,218,353,943
7.10 Particulars of required provision for loans and advances / investments Status
Base for Required Provision
Particulars provision Rate (%)
2018 2018 2017
A. General provision
Standard & SMA 7.10a
i) HF, LP and Restructured Loans 2,205,000,000 2.00% 44,100,000 41,585,656
ii) CF (Other than HF & LP) 46,872,000,000 5.00% 2,343,600,000 678,323,156
iii) Agri & Micro 16,900,000,000 2.50% 422,500,000 496,072,666
iv) Small Medium Enterprise Financing 22,720,000,000 0.25% 56,800,000 28,971,634
v) Others 235,630,000,000 1.00% 2,356,300,000 925,246,889
Sub Total 5,223,300,000 2,170,200,000
B. Specific provision Status
Sub-standard
i) Short term Micro Credit 2,046,435,089 5.00% 102,321,754 90,414,554
ii) Others 4,300,230,794 20.00% 860,046,159 759,962,439
Doubtful
i) Short term Micro Credit 1,476,523,238 5.00% 73,826,162 65,234,999
ii) Others 2,854,605,463 50.00% 1,427,302,732 1,261,207,266
Bad / Loss 37,643,441,522 100.00% 37,643,441,522 33,262,867,725
40,106,938,329 35,439,686,982
C. For Loan against which writ has been filed 3,939,000,000 3,424,600,000
Total Required Provision for Loans & Advances (A+B+C) 49,269,238,329 41,034,486,982
7.10a In response to Bank request dated 24 April 2019, Bangladesh Bank allowed forbearance through vide no- BRPD (P-1)
661/13/2019-3336 dated 29 April 2019 to maintain required provision against unclassified and classified loans & advances
including writ for the year 2018.
Accordingly Bank has calculated the required provision against unclassified and classified loans & advances including
writ adjusting the given forbearance and kept the required provision accordingly.
276
Amount in Taka
Particulars Ref. Notes Bank
2018 2017
7.11 Industry-Wise Segment of Loan and advances
Govt.of BD Food (Salt +Rice) 1,435,188,984 1,435,200,000
Barter Accounts 932,600,000 932,600,000
Sugar mill
21,843,700,000 20,742,700,000
Food Procurement 4,472,864,534 1,628,100,000
Mohinagonj Govt.food collect bill - 34,764,200,000
Rural Credit & Agri. Loan 59,516,737,573 34,804,954,000
Trading 49,859,700,000 50,917,180,000
Foreign Exchange (LTR/LIM/PAD/FBPN, etc) 10,878,181,000

30,747,100,000
Garments (Force Loan, PCC, etc) 17,124,100,000
37,349,410,000
Textile 30,756,900,000 33,307,372,000
Fish Processing 4,067,300,000 3,694,243,000
Cold Storage 3,730,600,000 3,382,140,000
House Building (General) 2,615,921,866 471,894,000
Jute 7,670,900,000 8,607,175,000
Cement - 67,367,000
Tannery 1,909,700,000 1,950,577,000
Bricks & Tiles 613,300,000 753,430,000
Engineering 125,100,000 1,189,605,000
Cottage Industries 640,300,000 141,940,000
Food Staff 5,166,300,000 6,402,890,000
Pharma (Chemical/Plastic) 233,400,000 719,289,000
Iron & Steel 6,693,300,000 7,969,539,000
Tobacco & Beverage 27,000,000 2,000,000
Paper Products/Printing Packaging 4,554,200,000 3,865,764,000
Glass & Ceramic 1,898,700,000 1,971,816,000
Aluminum & Other Metals 187,000,000 135,039,000
Others (OD/Bikalpa/Bridge Financing/IT, BPC/BSEC/ BJMC/BCIC/BTMC/FDC/
207,261,406,420 155,133,748,943
BSCIC, Overseas Branches etc.)
TOTAL 464,083,319,377 423,218,353,943
7.12 Sector wise Loans and Advances
Government 7.12.01 5,503,100,000 5,557,388,000
Other Public (Semi Govt.Autonomous) 7.12.02 72,718,100,000 63,926,632,000
Private 7.12.03 385,498,938,642 353,284,260,297
463,720,138,642 422,768,280,297
Overseas Branches 7.12.04 363,180,735 450,073,646
TOTAL 464,083,319,377 423,218,353,943
7.12.01 Government
Unclassified
Standard 3,135,300,000 3,189,588,000
SMA - -
Sub total 3,135,300,000 3,189,588,000
Classified
Sub standard - -
Doubtful - -
Bad/Loss 2,367,800,000 2,367,800,000
Sub total 2,367,800,000 2,367,800,000
Total 5,503,100,000 5,557,388,000

Amount in Taka
2018 2017
7.12.02 Other Public
Unclassified
Standard 68,467,300,000 63,317,332,000
SMA 3,634,100,000 -
Sub total 72,101,400,000 63,317,332,000
Classified
Sub standard 46,800,000 -
Doubtful 267,300,000 260,600,000
Bad/Loss 302,600,000 348,700,000
Sub total 616,700,000 609,300,000
Total 72,718,100,000 63,926,632,000

7.12.03 Private
Unclassified
Standard 244,724,580,993 192,567,502,540
SMA 21,875,457,649 14,391,457,757
Sub total 266,600,038,642 206,958,960,297
Classified
Sub standard 8,004,000,000 9,816,600,000
Doubtful 3,630,100,000 7,344,400,000
Bad/Loss 107,264,800,000 129,164,300,000
Sub total 118,898,900,000 146,325,300,000
Total 385,498,938,642 353,284,260,297
7.12.04 Overseas Branches 363,180,735 450,073,646

Total Loan and Advances 464,083,319,377 423,218,353,943
7.13 Movement of Classified Loans and Advances as a Whole

Opening Classified Loans and Advances 149,302,400,000 109,114,863,000
Less :
Cash Recovery 10,862,900,000 7,980,579,000
Written-off - -
Interest waiver 1,078,104,000 613,598,000
Re-Schedule and Re-structuring 26,839,800,000 2,318,246,000
38,780,804,000 10,912,423,000
Add: Newly Classified Loans and Advances 11,361,804,000 51,099,960,000
121,883,400,000 149,302,400,000
7.14 Particulars of Loan and Advances/Investments
i) Loans considered good in respect of which the banking company is fully secured. 275,823,870,023 253,636,836,942
ii) Loans considered good against which the banking company holds no security
39,946,425,256 16,871,688,304
other than the debtors’ personal guarantee.
iii) Loans considered good secured by the personal undertakings of one or more
27,016,082,220 14,280,192,870
parties in addition to the personal guarantee of the debtor.
iv) Loans adversely classified; provision not maintained there against - -
342,786,377,499 284,788,718,116
v) Loans due by Directors or Officers of the banking company or any of these
62,536,113,869 61,087,913,982
either separately or jointly with any other persons.
vi) Loans due from Companies or Firms in which the directors of the Banking
Company have interests as Director(s), Partner(s) or Managing agent(s) or - -
incase of private companies as member(s).
278
Amount in Taka
2018 2017
vii) Maximum total amount of advances, including temporary advances made at
any time during the year to directors or managers or officers of the bank or 62,536,113,869 61,087,913,982
any of them either severally or jointly with any other persons.
viii) Maximum total amount of advances, including temporary advances granted
during the year to the companies or firms in which any of the directors of
- -
the bank are interested as partners or managing agent or, in case of private
companies as members.
ix) Due from other banking companies - -
x) Amount of classified loans on which interest has not been charged - -
a) Increase/(Decrease) in Provision (214,048,653) (417,142,160)
Amount of Loan written off from Provision 303,617,671 428,637,001
Amount realized against Loan previously written off 89,569,018 11,494,841
b) Amount of provision kept against loan classified 38,650,238,329 38,864,286,982
c) Interest creditable to the Interest suspense a/c 35,155,472,514 30,515,671,919
xi) Written-off Loans as per Bangladesh Bank BRPD Circular no -02 dated 13,
January 2003.
Opening amount of written off loan 71,826,237,871 72,213,300,000
Less Amount realized during the year 945,481,000 387,062,129
Add Amount of written off Loan during the current year - -
Closing Amount of written off loans 70,880,756,871 71,826,237,871
xii) Written-off Loans as per Bangladesh Bank BRPD Circular no -02 dated 13,
January 2003.
Cumulative amount of written off loans 84,292,300,000 84,292,300,000
Various steps have been taken to realise the written off loan and proper records are being maintained.
Amount in Taka
Ref.
Note
2018 2017 2018 2017
8.00 Fixed Asset including Premises,
Furniture & Fixture
(A) Cost
In Bangladesh:
Premises 31,452,686,600 31,435,487,436 31,452,686,600 31,435,487,436
Building con. 737,029,651 707,762,085 737,029,652 707,762,085
Furniture 1,085,039,466 1,040,132,749 1,071,559,703 1,026,894,266
Electric Installation 1,012,862,209 913,513,444 955,025,270 855,292,017
Computer Software 297,986,748 336,716,069 295,069,148 219,120,512
Computer Hardware 2,030,436,864 1,785,755,516 2,024,903,968 1,894,966,602
Type Writer Machine 5,650,162 5,692,692 5,650,162 5,692,692
Motor Car & Other Vehicle 453,959,700 311,685,159 448,959,700 306,510,069
Library 11,249,010 10,139,270 11,249,010 10,139,270
Sub-Total(In Bangladesh) 37,086,900,410 36,546,884,420 37,002,133,213 36,461,864,949
Overseas Branches:
Kolkata Branch 16,920,707 15,157,918 16,920,707 15,157,918
Siliguri Branch 949,019 769,058 949,019 769,058
Sub-Total (Overseas Branches) 17,869,727 15,926,976 17,869,726 15,926,976
Total Cost Value 37,104,770,137 36,562,811,396 37,020,002,939 36,477,791,925
(B) Accumulated Depreciation

In Bangladesh:
Premises 376,505,547 343,280,720 376,505,547 343,280,720
Furniture 646,214,953 581,755,780 633,498,780 568,760,470
Electric Installation 751,874,457 646,651,026 696,078,159 629,842,429

Amount in Taka
Ref.
Note
2018 2017 2018 2017
Computer Hardware 1,543,461,610 1,386,831,138 1,538,511,665 1,356,683,172
Type Writer Machine 5,375,490 5,388,562 5,375,490 5,388,562
Library 4,333,363 3724047 4,333,362 3,724,047
Sub-Total(In Bangladesh) 3,713,711,523 3,243,246,848 3,632,381,507 3,161,933,792
Overseas Branches:
Kolkata Branch 10,557,569 8,671,356 10,557,569 8,671,356
Siliguri Branch 487,584 439,456 487,584 439,456
Sub-Total (Overseas Branches) 11,045,153 9,110,812 11,045,153 9,110,812
Total Accumulated Depreciation 3,724,756,676 3,252,357,660 3,643,426,660 3,171,044,604
Written down value (A-B) 33,380,013,461 33,310,453,736 33,376,576,280 33,306,747,321
(Details shown in Annexure-B & C )
8.01 Movement of Fixed assets
Cost (Original)/Revaluation 36,562,811,397 36,026,120,916 36,477,791,925 35,941,318,648
Addition during the year 597,407,248 610,229,713 592,247,885 610,012,509
37,160,218,644 36,636,350,629 37,070,039,811 36,551,331,157
Less: Disposal/Adjustment during the year 59,198,295 73,539,233 50,036,871 73,539,231
37,101,020,349 36,562,811,396 37,020,002,939 36,477,791,925
Add/(less): Foreign currency gain loss 3,749,789 - - -
Less: Accumulated Depreciation 3,724,756,677 3,252,357,660 3,643,426,660 3,171,044,604
(Details shown in Annexure-B & C) 33,380,013,461 33,310,453,736 33,376,576,280 33,306,747,321
9.00 Other Asset
Income generating other assets
Investment in Shares of
9.01 - - 2,162,184,882 2,172,883,882
Subsidiary Companies
Advance Rent, Advertisement etc. 9.03 104,455,121 114,228,720 104,455,121 114,228,720
Interest, Commission and
9.04 19,342,878,199 16,505,957,498 19,303,924,968 16,479,532,107
Exchange Receivable
Prepaid Expenses 9.05 5,724,621 82,837,124 5,724,621 82,837,124
19,453,057,941 16,703,023,342 21,576,289,592 18,849,481,833
Non Income generating other assets

Stationery, Stamps and Printing
9.02 125,065,841 167,557,488 125,065,841 167,557,488
Materials in hand
Branch Adjustment 9.06 12,140,960,320 27,223,749,393 12,140,960,320 27,223,749,393
Security Deposits 5,769,048 5,140,715 - -
Advance deposit 375,255 200,000 - -
Suspense A/C 9.07 293,962,839 1,505,233,611 293,962,839 1,505,233,611
Others 9.08 105,927,621,207 110,785,892,701 105,848,921,213 110,734,540,728
118,493,754,510 139,687,773,908 118,408,910,213 139,631,081,220
137,946,812,451 156,390,797,250 139,985,199,805 158,480,563,053
9.01 Investment in Shares of Subsidiary Companies
In Bangladesh
Investment in Sonali Investment Ltd. - - 2,000,000,000 2,000,000,000
Outside Bangladesh
Investment in SECI - - 79,705,000 78,565,000
Long term loan at prevailing rate of
- - 82,479,882 94,318,882
Interest
- - 2,162,184,882 2,172,883,882
9.02 Stationery, Stamps and Printing Materials in Hand
Stamps on hand 10,742,798 12,264,246 10,742,798 12,264,246
Stationery on hand 114,323,043 155,293,242 114,323,043 155,293,242
125,065,841 167,557,488 125,065,841 167,557,488
280
Amount in Taka
Ref.
Note
2018 2017 2018 2017
9.03 Advance Rent and Advertisement etc.
Advance Rent 104,455,121 114,228,720 104,455,121 114,228,720
104,455,121 114,228,720 104,455,121 114,228,720
9.04 Interest, Commission & Exchange receivable
i) Interest receivable 16,374,899,724 13,525,308,858 16,374,899,724 13,525,308,858
ii) Commission receivable 2,929,025,244 2,954,223,249 2,929,025,244 2,954,223,249
iii) Exchange receivable - - - -
iv) Others receivable 38,953,231 26,425,391 - -
19,342,878,199 16,505,957,498 19,303,924,968 16,479,532,107
9.05 Preliminary, Formation and Organization Expenses, Renovation/development Expenses, and prepaid Expenses
Prepaid Expenses (Transferred from Adjusting A/C)
Rent - 9,647,720 - 9,647,720
Taxes - - - -
Law charges - 39,634 - 39,634
Postage and Telegram - 28,665 - 28,665
Sundries 5,724,621 73,121,105 5,724,621 73,121,105
5,724,621 82,837,124 5,724,621 82,837,124
9.06 Branch Adjustment
Debit Balance
Sonali Bank General Account Balance 5,439,895,122,141 5,139,027,478,011 5,439,895,122,141 5,139,027,478,011
Main Office Account Balance 260,847,588,982 263,804,288,220 260,847,588,982 263,804,288,220
Sonali Bank General Account (RMS+) 5,854,497,995,271 4,853,481,603,057 5,854,497,995,271 4,853,481,603,057
Sonali Bank General Account (CBS) 3,210,934,732,411 1,497,881,796,041 3,210,934,732,411 1,497,881,796,041
Settlement account Debit balance 10,434,792,736 - 10,434,792,736 -
Sonali Bank General Account (IFRMS) - 7,701,148,688 - 7,701,148,688
14,776,610,231,541 11,761,896,314,017 14,776,610,231,541 11,761,896,314,017
Less: Credit Balance

Sonali Bank General Account Balance 5,436,352,473,162 5,371,553,740,705 5,436,352,473,162 5,371,553,740,705
Main Office Account Balance 260,699,086,501 210,167,575,925 260,699,086,501 210,167,575,925
Sonali Bank General Account (RMS+) 5,814,718,513,166 4,759,920,835,945 5,814,718,513,166 4,759,920,835,945
Sonali Bank General Account (CBS) 3,210,934,732,411 1,390,421,415,043 3,210,934,732,411 1,390,421,415,043
Settlement account Credit balance 41,764,465,981 - 41,764,465,981 -
Sonali Bank General Account (IFRMS) - 2,608,997,006 - 2,608,997,006
14,764,469,271,221 11,734,672,564,624 14,764,469,271,221 11,734,672,564,624
12,140,960,320 27,223,749,393 12,140,960,320 27,223,749,393
9.06.01 Provision against Branch Adjustment (unreconciled entries)
In response to Bank request dated 24 April 2019, Bangladesh Bank allowed forbearance through vide no- BRPD (P-1)
661/13/2019-3336 dated 29 April 2019 to maintain required provision against branch adjustment (un reconciled entries)
as required as on 31 December 2018 Accordingly Bank has kept that provision.
9.07 Suspense Account
Pre-Paid Expenses - 752,841 - 752,841
Dead Stock - 137,736 - 137,736
Land and Premises - 100,000 - 100,000
Advance Recoverable - 177,835,082 - 177,835,082
Salary & Allowances - 191,130 - 191,130
Traveling Expenses - 7,833,275 - 7,833,275
Insurance - 256,800 - 256,800
Miscellaneous 293,962,839 1,318,126,747 293,962,839 1,318,126,747
293,962,839 1,505,233,611 293,962,839 1,505,233,611

Amount in Taka
Ref.
Note
2018 2017 2018 2017
9.08 Others :
Draft Payable Account (Ex-Advice) 68,907,213 93,481,526 68,907,213 93,481,526
Govt. Draft Payable Account (Ex-Advice) 2,225,330 20,789,387 2,225,330 20,789,387
Protested Bills 293,639,588 287,705,079 293,639,588 287,705,079
Wage Earners' Fund Purchased Adjustment A/C. 2,058,416,709 3,662,869,935 2,058,416,709 3,662,869,935
Agri-Loan Other Exemption A/C-2004 - - - -
Adjusting A/C Dr. Balance 841,157,809 746,802,176 841,157,809 746,802,176
Agri-Loan Interest Exemption A/C-2004 - - - -
Income Tax Deducted at Source 19,700,996,566 18,007,703,010 19,700,996,566 18,007,703,010
BRDB UCCA Crop Loans Penal Int. Exemption - - - -
BRDB UCCA Crop Loans Exemption - - - -
Employee pension fund investment 1,235,399,414 1,210,538,162 1,235,399,414 1,210,538,162
Employee PDCRB fund investment 13,668,089,921 17,523,586,220 13,668,089,921 17,523,586,220
BRDB UCCA Crop Loans Int & Penal Int.
511,283,719 511,283,719 511,283,719 511,283,719
Exemption-2007
Settlement A/C (Islami) 224,398,861 80,479,067 224,398,861 80,479,067
Loan Exemption Under Jute Sectors
5,094,543,083 5,094,543,083 5,094,543,083 5,094,543,083
Reform Proj. 94-95.
Demand Drafts purchased 657,691,925 808,760,014 657,691,925 808,760,014
Pension bills (Army) 3,756,294,543 4,212,373,790 3,756,294,543 4,212,373,790
Pension bills(Civil) 2,113,632,415 2,272,113,182 2,113,632,415 2,272,113,182
PSP/BSP Encashment 7,550,359,876 5,646,406,559 7,550,359,876 5,646,406,559
Agri Exemption A/C affected by River Erosion 99,557,837 98,760,600 99,557,837 98,760,600
UCCA Loan Remission for River Erosion - - - -
NRT A/C Dr. Balance 447,447,649 447,417,149 447,447,649 447,417,149
Intangible Assets- Valuation Adjustment - - - -
Deferred Tax assets 30,695,626,273 34,230,294,933 30,689,808,423 34,225,080,443
Frozen Fish Loan Exemption A/C - 101,773,510 - 101,773,510
Security Margin - - - -
Army Pension bill Purchased A/C (New) 9,209,752,866 7,932,615,253 9,209,752,866 7,932,615,253
Advance payment of Income Tax 6,596,916,915 5,869,653,881 6,526,323,815 5,826,323,815
Others Current assets of SECI 2,289,044 2,807,417 - -
Branch Reconstruction A/C 50,195 50,195 50,195 50,195
Preliminery Expenses - HR
11,487,463 - 11,487,463 -
Recruitment A/C
Settlement Account Debit Balance - - - -
ATM Settlement Account Debit Balance 56,433,070 - 56,433,070 -
SECI Settlement Account Debit Balance 241,545,685 - 241,545,685 -
Clearing Settlement Account Debit Balance 13,317,859 - 13,317,859 -
Other Assets of India operation 81,401,804 1,923,084,854 81,401,804 1,923,084,854
Wage Earners' Bond Encashment A/C. 694,757,576 - 694,757,576 -
Total 105,927,621,207 110,785,892,701 105,848,921,213 110,734,540,728
9.08a Employees PDCRB and Pension fund investment
In Financial Statements 2017, investment of PDCRB & Pension funds were disclosed/shown as of net basis (i.e. PDCRB &
Pension fund-Investment of PDCRB & Pension fund); but in financial statements 2018, these were shown as gross basis
instead of net basis to make it more clear. Gross basis presentation of PDCRB & Pension fund and Investment of PDCRB
& Pension fund also reflect on Other Liabilities and Other Assets of the Bank.
9.08.01 Deferred Tax assets
Opening Balance 34,230,294,933 36,272,534,834 34,225,080,443 36,268,810,679
Addition during the year 9.08.01.01 (3,534,668,660) (2,042,239,901) (3,535,272,020) (2,043,730,236)
Closing Balance 30,695,626,273 34,230,294,933 30,689,808,423 34,225,080,443
282
Amount in Taka
Ref.
Note
2018 2017 2018 2017
9.08.01.01 Deferred Tax (Assets)/ Liabilities
i) Carrying amount of Fixed Assets
a) Carrying amount at balance sheet date 33,380,013,463 33,310,453,737 33,369,751,707 33,299,931,157
Less: Land Value and building
30,295,649,652 30,722,772,404 30,295,649,652 30,722,772,404
construction Amount
Carrying value without considering land
3,084,363,811 2,587,681,333 3,074,102,055 2,577,158,753
value
b) Tax base 2,403,845,977 2,346,231,827 2,403,845,977 2,344,421,865
Taxable/(Deductible) Temporary Difference
c) 680,517,834 241,449,506 670,256,078 232,736,888
(a-b)
ii) Employees Liabilities

a) Carrying amount at balance sheet date
Provision for pension fund (1,651,110,416) (1,728,698,939) (1,651,110,416) (1,727,789,970)
Provision for PDCRB fund (15,210,314,631) (19,857,517,443) (15,210,314,631) (19,857,517,443)
Provision for Employees benefit (35,634) 35,634 (35,634) 35,634
Provision for Bonus & Exgratia (2,698,381,057) (1,632,757,066) (2,698,381,057) (1,622,414,362)
Employees Provident Fund (General
- (16,633,607,913) - (16,631,008,963)
+Contribution)
Total (19,559,841,738) (39,852,545,727) (19,559,841,738) (39,838,695,104)
b) Tax base - - - -
c) (19,559,841,738) (39,852,545,727) (19,559,841,738) (39,838,695,104)
(a-b)
iii) Provision for loan and advance

a) Carrying amount at balance sheet date - - - -
Provision for Classified loan and advances (44,045,938,329) (38,864,286,982) (44,045,938,329) (38,864,286,982)
Provision for Un-Classified loans (5,223,300,000) - (5,223,300,000) -
b) Tax base - - - -
c) (49,269,238,329) (38,864,286,982) (49,269,238,329) (38,864,286,982)
(a-b)
iv) Provision for other assets

a) Carrying amount at balance sheet date (3,928,132,668) (2,059,284,573) (3,928,132,668) (2,059,284,573)
b) Tax base - - - -
c) (3,928,132,668) (2,059,284,573) (3,928,132,668) (2,059,284,573)
(a-b)
Provision for diminishing

v)
value of investment
Carrying amount at balance
a) (1,579,536,434) - (1,579,536,434) -
sheet date
b) Tax base - - -
Taxable/(Deductible)
c) (1,579,536,434) - (1,579,536,434) -
Temporary Difference (a-b)
Provision for off balance sheet
vi)
exposure
a) (2,382,736,167) - (2,382,736,167) -
sheet date
b) Tax base - - - -
c) (2,382,736,167) - (2,382,736,167) -
Provision for other bank and
vii)
financial institution
a) (1,385,200,000) - (1,385,200,000) -
sheet date
b) Tax base - - - -
c) (1,385,200,000) - (1,385,200,000) -

Amount in Taka
Ref.
Note
2018 2017 2018 2017
viii) Provision for investment in debenture
a) Carrying amount at balance sheet date (5,944,125) - (5,944,125)
b) Tax base - - -
c) (5,944,125) - (5,944,125)
Provision for balance with
ix)
Bangladesh Bank
a) Carrying amount at balance sheet date (468,800,000) (468,800,000)
b) Tax base - -
c) (468,800,000) - (468,800,000) -
x) Total temporary difference (77,898,911,627) (80,534,667,776) (77,909,173,383) (80,529,601,039)
xi) Tax Rate ( 10% to 40%) ( 10% to 42.5%) ( 10% to 40%) 42.50%
xii) Deferred Tax assets (30,689,808,423) (34,230,294,933) (30,689,808,423) (34,225,080,442)
xiii) Prior year adjustment - - -
xiv) Closing deferred tax assets (30,689,808,423) (34,230,294,933) (30,689,808,423.00) (34,225,080,442)
xv) Opening Deferred Tax 34,230,294,933 36,272,534,834 34,225,080,443 36,268,810,679
Decrease/(Increase) of
3,534,668,660 2,042,239,901 3,535,272,020 2,043,730,236
Deferred Tax Assets/Liabilities
9.09 Provision required against Other Assets

Suspense Account 131,143,463 146,854,754 131,143,463 146,854,754
Protested Bills 293,639,588 287,705,079 293,639,588 287,705,079
Branch Adjustment (unreconciled entries) (9.06.01) 1,000,000,000 500,000,000 1,000,000,000 500,000,000
Branch Reconstruction Account 50,195 50,195 50,195 50,195
Agri Loan Exemption affected by River Erosion 99,557,837 98,760,000 99,557,837 98,760,000
BRDB UCCA Crops Loans Interest
511,283,719 511,283,719 511,283,719 511,283,719
Penal Interest Exemption A/Cs
Jute Sector Reform Project (9.09a) 1,500,000,000 1,200,000,000 1,500,000,000 1,200,000,000
Frozen Fish Loan Exemption A/C - 101,773,510 - 101,773,510
NRT A/C Dr. Balance 447,447,649 447,417,149 447,447,649 447,417,149
Others 238,700,000 - 238,700,000 -
Total 4,221,822,451 3,293,844,406 4,221,822,451 3,293,844,406
Less: Provision made (Note No. 9.10) 4,221,822,451 3,293,844,406 4,221,822,451 3,293,844,406
Surplus - - - -
9.09a Jute Sector Reform Project
Through letter no- DOS(BSS-1)1163/96/2015/821, dated 17 February 2015, Bangladesh Bank approved the Bank request to
provide Tk. 300 million provision per year against Jute Sector Reform Project (note no.9.09). Accordingly Bank has kept
that provision in 2018 and total provision kept Tk. 1500 million up to 31 December 2018.
9.10 Movement of the Provision against Other Assets
Opening balance 3,293,844,406 2,993,844,406 3,293,844,406 2,993,844,406
Less: Written- off during the year - - - -
3,293,844,406 2,993,844,406 3,293,844,406 2,993,844,406
Less: Transferred to P&L A/C - - - -
3,293,844,406 2,993,844,406 3,293,844,406 2,993,844,406
Add: Addition during the year 927,978,045 300,000,000 927,978,045 300,000,000
4,221,822,451 3,293,844,406 4,221,822,451 3,293,844,406
9.11 Provision made against other assets
Other assets 4,221,822,451 3,293,844,406 4,221,822,451 3,293,844,406
Interest reserve against BRDB UCCA Crops Loan - - - -
4,221,822,451 3,293,844,406 4,221,822,451 3,293,844,406
284
Amount in Taka
Ref.
Note
2018 2017 2018 2017
10.00 Non Banking Assets
11.00 Borrowings from other banks, financial institutions & agents
In Bangladesh 11.01 659,172,428 714,241,872 659,172,428 714,241,872
Outside Bangladesh 11.02 - - - -
659,172,428 714,241,872 659,172,428 714,241,872
11.01 In Bangladesh
Bangladesh Bank Demand Loan:
Refinance against RHFG from Bangladesh Bank 72,428 216,872 72,428 216,872
Refinance against Jute Sector from Bangladesh Bank 659,100,000 714,025,000 659,100,000 714,025,000
659,172,428 714,241,872 659,172,428 714,241,872
11.01.01 Security against borrowings from other banks,

financial institutions and agents
Secured (against bills) - - -
Unsecured 659,172,428 714,241,872 659,172,428 714,241,872
659,172,428 714,241,872 659,172,428 714,241,872
11.02 Outside Bangladesh
Overseas Branches - - - -
11.03 Maturity Grouping of Borrowing From Other Banks, Financial Institutions & Agents
Payable on demand - - - -
Repayable on within 1 month - - - -
Over 1 month but within 3 Months - - - -
Over 3 months but within 1 year - - - -
Over 1 year but within 5 years - - - -
Over 5 year but within 10 years 659,172,428 714,241,872 659,172,428 714,241,872
659,172,428 714,241,872 659,172,428 714,241,872
12.00 Deposits and other accounts
Current Deposit & Other Accounts 12.02.01(a+b) 241,660,265,805 238,868,974,602 241,757,780,406 238,954,096,706
Bills Payable 12.02.02(a+b) 13,059,176,136 12,363,905,107 13,059,176,136 12,363,905,107
Savings Deposits 12.02.03(a+b) 348,404,153,498 319,578,769,175 348,404,153,498 319,578,769,175
Fixed Deposits 12.02.04(a+b) 490,645,077,729 493,414,311,551 490,645,077,729 493,414,311,551
Total Deposits and other accounts 1,093,768,673,168 1,064,225,960,435 1,093,866,187,769 1,064,311,082,539
Deposits and other accounts

Inter bank deposits 12.01(A+B) 52,775,922,501 62,533,479,943 52,775,922,501 62,533,479,943
Other deposits 12.01(A+B) 1,041,090,265,268 1,041,090,265,268

1,001,777,602,596 1,001,777,602,596
1,093,866,187,769 1,064,311,082,539 1,093,866,187,769 1,064,311,082,539
Less: Inter Company balance eliminated 97,514,601 85,122,104 - -
Total 1,093,768,673,168 1,064,225,960,435 1,093,866,187,769 1,064,311,082,539
12.01 Deposits and other accounts
A. Payable on Demand
Deposit from banks 33,048,906,050 42,122,260,129 33,048,906,050 42,122,260,129
Other than banks 339,446,835,006 176,701,134,150 339,446,835,006 176,701,134,150
372,495,741,056 218,823,394,279 372,495,741,056 218,823,394,279
B. Other Deposits
Deposit from banks 19,727,016,451 20,411,219,814 19,727,016,451 20,411,219,814
Other than banks 701,643,430,262 825,076,468,446 701,643,430,262 825,076,468,446
721,370,446,713 845,487,688,260 721,370,446,713 845,487,688,260
Less: Inter Company balance Eliminated 97,514,601 85,122,104 - -
Total 1,093,768,673,168 1,064,225,960,435 1,093,866,187,769 1,064,311,082,539

Amount in Taka
Ref.
Note
2018 2017 2018 2017
12.02 Deposits and Other Accounts (Category wise)
Domestic Branches
Current and Contingency 12.02.1.a 240,558,894,621 237,957,111,801 240,656,409,222 238,042,233,905
Bills Payable 12.02.2.a 13,059,176,136 12,363,905,107 13,059,176,136 12,363,905,107
Savings Bank Account 12.02.3.a 348,336,597,053 319,517,575,126 348,336,597,053 319,517,575,126
Fixed Deposits 12.02.4.a 490,389,973,206 493,160,534,077 490,389,973,206 493,160,534,077
Other Deposits - - - -
1,092,344,641,016 1,062,999,126,111 1,092,442,155,617 1,063,084,248,215
Overseas Branches
Current and Contingency 12.02.1.b 1,101,371,184 911,862,801 1,101,371,184 911,862,801
Bills Payable 12.02.2.b - - - -
Savings Bank Account 12.02.3.b 67,556,445 61,194,049 67,556,445 61,194,049
Fixed Deposit 12.02.4.b 255,104,523 253,777,474 255,104,523 253,777,474
Other Deposits - - - -
1,424,032,152 1,226,834,324 1,424,032,152 1,226,834,324
Total 1,093,768,673,168 1,064,225,960,435 1,093,866,187,769 1,064,311,082,539
12.02.1.a Current and Contingency (Domestic Branches)
Current A/C (credit Balance) 219,863,128,136 218,437,122,114 219,863,128,136 218,437,122,114
Hajj Deposits 26,203,876 4,245,095 26,203,876 4,245,095
Margin on Letter of Credit 1,387,031,088 794,751,776 1,387,031,088 794,751,776
Margin on Bank Guarantee 41,631,656 59,588,820 41,631,656 59,588,820
Foreign Bank Deposit 399,187,779 388,056,953 399,187,779 388,056,953
ATM A/c. - 907,693 907,693
Current A/C Barter 5,209,831,381 4,000,753,392 5,209,831,381 4,000,753,392
Branch Sundry Deposit A/C 1,531,107,834 1,295,243,252 1,531,107,834 1,295,243,252
School Banking Scheme 447,998,988 1,068,677,775 447,998,988 1,068,677,775
Call Deposit 28,405,014 108,875,835 28,405,014 108,875,835
Foreign Currency Deposit 7,678,694,507 6,710,288,857 7,678,694,507 6,710,288,857
Unsold Balance of N.F.C.D. 168,665,196 170,356,274 168,665,196 170,356,274
Credit Balance of Loan & Advances 216,334,089 311,343,113 216,334,089 311,343,113
F. C Deposit Receipt from Bangladesh Bank 3,658,189,678 4,692,022,956 3,658,189,678 4,692,022,956
240,656,409,222 238,042,233,905 240,656,409,222 238,042,233,905
Less: Inter Company balance Eliminated 97,514,601 85,122,104 -
Total 240,558,894,621 237,957,111,801 240,656,409,222 238,042,233,905
12.02.1.b Current and Contingency (Overseas Branches) 1,101,371,184 911,862,801 1,101,371,184 911,862,801
Total 241,660,265,805 238,868,974,602 241,757,780,406 238,954,096,706
12.02.2.a Bills Payable ( Domestic Branches)
Draft Payable 2,511,001,525 2,786,611,844 2,511,001,525 2,786,611,844

Govt. Draft Payable 158,366,067 161,901,880 158,366,067 161,901,880
Payment Order 10,319,574,374 9,340,943,946 10,319,574,374 9,340,943,946
Foreign Draft/Travelers Cheque
303,688 303,688 303,688 303,688
Issued A/c.
Foreign Draft Payable A/c. 69,930,482 74,143,749 69,930,482 74,143,749
13,059,176,136 12,363,905,107 13,059,176,136 12,363,905,107
12.02.2.b Bills Payable (Overseas Branches) - - - -
Total 13,059,176,136 12,363,905,107 13,059,176,136 12,363,905,107
12.02.3.a Savings Bank Deposits (Domestic Branches) 348,336,597,053 319,517,575,126 348,336,597,053 319,517,575,126
12.02.3.b Savings Bank Deposits (Overseas Branches) 67,556,445 61,194,049 67,556,445 61,194,049
Total 348,404,153,498 319,578,769,175 348,404,153,498 319,578,769,175
286
Amount in Taka % of Total Loan

Notes Particulars
2018 2017 2018 2017
12.02.4.a Fixed Deposit (Domestic Branches)
Fixed Deposits 253,471,175,052 257,600,951,291 253,471,175,052 257,600,951,291

Special Notice deposits 108,945,486,267 86,678,909,010 108,945,486,267 86,678,909,010
Deposit Pension Scheme 11,881,381 334,275,768 11,881,381 334,275,768
Special Deposit Pension Scheme 15,775,308 115,116,632 15,775,308 115,116,632
Sonali Deposit Scheme 12,180,119,624 12,511,518,750 12,180,119,624 12,511,518,750
Education Deposit Scheme. 3,953,852,383 5,610,528,098 3,953,852,383 5,610,528,098
Medicare Deposit Scheme 18,920,262,284 22,120,690,613 18,920,262,284 22,120,690,613
Rural Deposit Schemes 1,128,079,343 1,306,322,899 1,128,079,343 1,306,322,899
Monthly Earning Schemes 4,321,751,996 12,481,452,309 4,321,751,996 12,481,452,309
Marriage Savings Schemes 3,846,603,565 3,689,030,149 3,846,603,565 3,689,030,149
Double Benefit Scheme 43,315,789,688 53,242,894,792 43,315,789,688 53,242,894,792
Triple Benefit Scheme 1,828,290,454 1,696,726,446 1,828,290,454 1,696,726,446
Millionaire Deposited Scheme 19,373,990,655 16,284,168,306 19,373,990,655 16,284,168,306
Daily Profit Scheme 191,899,984 214,201,943 191,899,984 214,201,943
Non Resident Deposit Scheme 4,522,727 107,482,509 4,522,727 107,482,509
Retirement Savings Scheme 31,969,245 190,866,047 31,969,245 190,866,047
Sonali Retirement Savings Scheme 1,697,260,397 2,139,538,872 1,697,260,397 2,139,538,872
Deposit pension payment account 5,191,081 19,871,524 5,191,081 19,871,524
Sonali krishak sanchay scheme - 184,979,156 - 184,979,156
S.B. Employees Provident Fund (General) 13,443,180,348 13,529,037,782 13,443,180,348 13,529,037,782
S.B. Employees Provident Fund (Contributory) 3,702,891,424 3,101,971,181 3,702,891,424 3,101,971,181
490,389,973,206 493,160,534,077 490,389,973,206 493,160,534,077
12.02.4.b Fixed Deposit (Overseas Branches) 255,104,523 253,777,474 255,104,523 253,777,474
Total 490,645,077,729 493,414,311,551 490,645,077,729 493,414,311,551
Amount in Taka
2018 2017
12.03 In Bangladesh (GM's Office wise)
Dhaka 01 336,364,359,340 324,245,001,738
Dhaka 02 169,269,176,161 163,421,784,008
Chattogram 153,300,569,147 149,578,194,184
Khulna 63,028,319,707 65,570,092,836
Rangpur 39,448,026,636 37,873,703,894
Faridpur 50,029,207,322 48,428,927,415
Mymensing 58,297,537,782 57,145,761,813
Sylhet 40,471,388,865 40,429,442,485
Barishal 35,592,298,741 34,993,620,931
Rajshahi 57,906,608,281 56,113,978,914
Cumilla 88,734,663,633 85,283,739,997
1,092,442,155,617 1,063,084,248,215

Total 1,093,866,187,769 1,064,311,082,539
12.03.01 Deposits and Other Accounts (Geographical Location-wise Deposits)
No. of
In Bangladesh 2018 2018 2018 2017
Branches
Urban 701 346,411,534,158 290,170,910,638 31.67 27.26
Rural 512 746,030,621,459 772,913,337,577 68.20 72.62
Sub Total 1213 1,092,442,155,617 1,063,084,248,215 99.87 99.88
Outside Bangladesh
Overseas 2 1,424,032,152 1,226,834,324 0.13 0.12
Total 1215 1,093,866,187,769 1,064,311,082,539 100 100
Head office is included in Urban.

Amount in Taka % of Total Loan

Notes Particulars
2018 2017 2018 2017
12.03.1.a In Bangladesh (GM's Office and District wise)
Dhaka GM's Office
Dhaka Corp. 126 437,443,914,278 427,064,423,004 39.99 40.13
Gazipur 22 28,757,775,400 29,055,329,534 2.63 2.73
Munshiganj 17 10,265,704,281 8,140,411,064 0.94 0.76
Narayanganj 18 9,486,081,401 6,619,890,194 0.87 0.62
Narsingdi 21 10,887,020,769 8,524,398,749 1.00 0.80
Manikganj 11 8,793,039,373 8,262,333,201 0.80 0.78
Sub Total 215 505,633,535,501 487,666,785,746 46.22 45.82
Chattogram GM's Office

Chattogram North 27 25,301,974,066 58,409,700,624 2.31 5.49
Chattogram South 28 97,828,942,303 69,747,120,410 8.94 6.55
Rangamati 23 7,371,839,641 7,056,933,166 0.67 0.66
Bandarbon 7 1,788,205,522 1,684,153,348 0.16 0.16
Cox's Bazar 10 12,615,082,906 4,694,028,464 1.15 0.44
Patiya 13 8,394,524,710 7,986,258,172 0.77 0.75
Sub Total 108 153,300,569,147 149,578,194,184 14.01 14.05
Khulna GM's Office

Jashore 35 17,961,763,986 18,203,554,663 1.64 1.71
Jhenaidah 23 9,742,720,735 9,614,966,707 0.89 0.90
Khulna 24 16,744,736,610 19,780,287,839 1.53 1.86
Satkhira 17 7,490,732,802 7,207,052,028 0.68 0.68
Bagerhat 14 6,959,038,271 6,689,215,032 0.64 0.63
Narail 11 4,129,327,303 4,075,016,567 0.38 0.38
Sub Total 124 63,028,319,707 65,570,092,836 5.76 6.16
Rangpur GM's Office

Dinajpur 32 10,441,168,558 10,316,239,014 0.95 0.97
Gaibandha 16 5,452,948,624 5,198,217,888 0.50 0.49
Kurigram 16 5,971,129,378 6,230,128,385 0.55 0.59
Rangpur 19 8,816,425,527 7,878,090,372 0.81 0.74
Thakurgaon 21 5,363,134,568 5,044,762,326 0.49 0.47
Nilphamari 10 3,403,219,981 3,206,265,909 0.31 0.30
Sub Total 114 39,448,026,636 37,873,703,894 3.61 3.56
Faridpur GM's Office

Chuadanga 19 7,930,479,902 7,706,118,194 0.72 0.72
Faridpur 23 13,458,566,290 13,554,663,417 1.23 1.27
Kushtia 22 7,697,519,748 7,840,367,003 0.70 0.74
Madaripur 17 9,840,538,059 8,623,655,156 0.90 0.81
Gopalgonj 12 6,111,979,754 6,040,981,081 0.56 0.57
Rajbari 12 4,990,123,569 4,663,142,564 0.46 0.44
Sub Total 105 50,029,207,322 48,428,927,415 4.57 4.55
Mymensingh GM's Office

Jamalpur 19 6,993,209,835 6,895,125,753 0.64 0.65
Kishoregonj 17 7,879,025,541 7,180,873,386 0.72 0.67
Mymensingh 25 14,484,683,303 13,919,391,517 1.32 1.31
Tangail 30 20,684,418,459 20,849,901,823 1.89 1.96
Netrokona 14 4,738,291,423 5,082,734,395 0.43 0.48
Sherpur 9 3,517,909,222 3,217,734,939 0.32 0.30
Sub Total 114 58,297,537,782 57,145,761,813 5.33 5.37
288
Amount in Taka
Ref.
Note
2018 2017 2018 2017
Sylhet GM's Office

Moulvibazar 22 7,904,800,170 17,289,869,431 0.72 1.62
Sylhet 32 21,618,583,360 14,472,400,869 1.98 1.36
Habiganj 13 5,510,233,498 3,860,391,509 0.50 0.36
Sunamganj 12 5,437,771,837 4,796,780,176 0.50 0.45
Sub Total 79 40,471,388,865 40,419,441,985 3.70 3.80
Barishal GM's Office

Barishal 36 17,647,284,395 17,633,636,927 1.61 1.66
Patuakhali 20 8,958,662,364 8,399,141,943 0.82 0.79
Bhola 10 4,178,873,958 4,154,061,385 0.38 0.39
Pirojpur 10 4,807,478,025 4,816,781,176 0.44 0.45
Sub Total 76 35,592,298,741 35,003,621,431 3.25 3.29
Rajshahi GM's Office
Bogura 32 11,587,538,340 11,218,867,976 1.06 1.05
Naogaon 19 5,555,259,024 5,434,920,646 0.51 0.51
Pabna 18 9,103,867,593 9,323,180,471 0.83 0.88
Rajshahi 23 11,939,345,168 11,561,879,812 1.09 1.09
Sirajganj 21 8,906,345,343 8,345,815,808 0.81 0.78
Chapai Nawabganj 8 3,295,623,129 3,134,365,105 0.30 0.29
Joypurhat 8 2,962,367,339 2,659,384,444 0.27 0.25
Natore 13 4,556,262,347 4,435,564,652 0.42 0.42
Sub Total 142 57,906,608,281 56,113,978,914 5.29 5.27
Cumilla GM's Office
Brahmanbaria 24 16,954,934,719 16,426,172,383 1.55 1.54
Chandpur 20 10,329,698,397 9,630,220,426 0.94 0.90
Cumilla 35 32,392,207,736 31,323,722,482 2.96 2.94
Feni 17 9,286,849,237 9,239,886,627 0.85 0.87
Noakhali 28 13,950,828,878 13,167,763,344 1.28 1.24
Laxmipur 12 5,820,144,667 5,495,974,735 0.53 0.52
Sub Total 136 88,734,663,633 85,283,739,997 8.11 8.01
Total 1213 1,092,442,155,617 1,063,084,248,215 99.87 99.88
12.03.2.b Outside Bangladesh
Kolkata & Siliguri 2 1,424,032,152 1,226,834,324 0.13 0.12
Total Loans & Advances 1215 1,093,866,187,769 1,064,311,082,539 100 100
Head office is included in Number of Branches and Deposits and Other Accounts.
12.04 Sector Wise Deposit Including Bills Payable
Presidency, Prime Minister Office and Judiciary 135,061,216,934 103,754,271,388
Autonomous and Semi-autonomous bodies 114,399,046,625 100,459,357,630
Other Public Sector 234,122,104,080 181,075,102,404
Banking Sector 24,694,095,071 23,755,759,450
Private Sector 584,165,692,907 654,039,757,343
1,092,442,155,617 1,063,084,248,215
Overseas Branches 1,424,032,152 1,226,834,324
1,093,866,187,769 1,064,311,082,539

Amount in Taka
Ref.
Note
2018 2017 2018 2017
12.05.a Maturity Grouping of deposits and other accounts (Including Bills Payable)
Repayable on Demand 402,115,378,292 409,235,851,172 402,115,378,292 409,235,851,172
Repayable within 1 Month 79,113,553,656 71,181,043,613 79,113,553,656 71,181,043,613
Over 1 month but within 6 Months 239,070,256,400 183,438,783,347 239,070,256,400 183,438,783,347
Over 6 months but within 1 year 172,998,145,744 163,759,785,076 172,998,145,744 163,759,785,076
Over 1 year but within 5 years 102,957,083,073 118,361,183,060 102,957,083,073 118,361,183,060
Over 5 years but within 10 years 90,461,402,915 101,547,025,745 90,461,402,915 101,547,025,745
Over 10 years 7,150,367,689 16,787,410,526 7,150,367,689 16,787,410,526
1,093,866,187,769 1,064,311,082,539 1,093,866,187,769 1,064,311,082,539
Total 1,093,768,673,168 1,064,225,960,435 1,093,866,187,769 1,064,311,082,539
12.05.b Maturity Grouping of Inter-Bank Deposits

Over 1 month but within 6 Months 1,583,277,675 - 1,583,277,675 -
Over 5 years but within 10 years - - - -
Over 10 years - - - -
Sub Total 52,775,922,501 62,533,479,943 52,775,922,501 62,533,479,943
Other Deposits
Over 1 month but within 6 Months 262,291,662,300 197,636,306,748 262,291,662,300 197,636,306,748
Over 5 years but within 10 years 90,461,402,915 176,693,776,748 90,461,402,915 176,693,776,748
Over 10 years 7,150,367,689 7,997,500 7,150,367,689 7,997,500
Sub Total 1,041,090,265,268 1,001,777,602,596 1,041,090,265,268 1,001,777,602,596
Total 1,093,768,673,168 1,064,225,960,435 1,093,866,187,769 1,064,311,082,539
12.05.c Maturity Grouping of Bills Payables

Repayable within 1 Month - - - -
Over 1 month but within 6 Months - - - -
Over 6 months but within 1 year - - - -
Over 1 year but within 5 years - - - -
Over 5 years but within 10 years - - - -
Over 10 years - - - -
13,059,176,136 12,363,905,107 13,059,176,136 12,363,905,107
Un-claimed deposits for 10 years or more held

15,348,138 7,997,500 15,348,138 7,997,500
by the bank as on 31 December 2018
290
Amount in Taka
Ref.
Note
2018 2017 2018 2017
13.00 Other liabilities
Domestic Branches
Provision for Classified loans including writ 13.01.a 44,045,938,329 38,864,286,982 44,045,938,329 38,864,286,982
Provision for Un-Classified loans 13.01.b 5,223,300,000 2,788,700,000 5,223,300,000 2,788,700,000
Interest Suspense 13.02 35,483,731,514 30,515,671,919 35,483,731,514 30,515,671,919
Provision against diminishing value
13.03 1,662,832,768 654,701,534 1,579,536,434 571,405,200
of portfolio Investment
Provision against Portfolio Loan 389,011,538 389,011,538 - -
Provison for employee benefits 35,634 35,634 35,634 35,634
Liability for employees benefit
13.04 1,651,110,416 1,727,789,970 1,651,110,416 1,727,789,970
(Pension fund)
Liability for employees benefit
13.05 15,210,314,631 19,857,517,443 15,210,314,631 19,857,517,443
(PDCRB fund)
Provision for Income Tax 13.06 5,146,922,141 4,669,540,896 5,080,480,345 4,628,610,397
Provision for other assets 09.09 4,221,822,451 3,293,844,406 4,221,822,451 3,293,844,406
Provision for debenture
5,944,125 56,944,125 5,944,125 56,944,125
(Public and Private)
Provision for Balance with BB 468,800,000 468,800,000 468,800,000 468,800,000
BB Refinance Scheme for SML of Tk. 10 - 5,613,750 - 5,613,750
BB Refinance Scheme for SME
79,139 395,707 79,139 395,707
(Ren. Energy/Solar Energy)
Employees Tax Deducted at source 10,344,438 1,177,606 10,344,438 1,177,606
Interest Payable (For Fixed Deposit) 4,753,368,382 4,765,228,992 4,753,368,382 4,765,228,992
Interest Payable for other Deposit 2,815,960,860 3,580,280,617 2,815,960,860 3,580,280,617
Income Receivable in advance 642,300 35,147,692 642,300 35,147,692
Expenses payable A/C 269,948,796 238,850,231 269,948,796 238,850,231
Exporters' Foreign Currency
7,458,028,981 102,970,733 7,458,028,981 102,970,733
Retention Quota
Provision against Off Balance Sheet
2,382,736,167 2,026,979,403 2,382,736,167 2,026,979,403
Exposure
Provision for Exgratia/Bonus etc. 13.07 2,698,381,057 1,622,414,362 2,698,381,057 1,622,414,362
Foreign Correspondent Charges 1,771,680 325,101 1,771,680 325,101
Adjusting Account Credit Balance 3,655,137 - 3,655,137 -
Foreign Currency Fund Purchased A/C 1,792,991,995 3,717,842,828 1,792,991,995 3,717,842,828
Provision for NOSTRO A/C 10,006,174 11,367,981 10,006,174 11,367,981
Vocational Women's Cr.Scheme
256,353 256,353 256,353 256,353
Guarantee Fund
Agricultural Guarantee Against
19,562,612 19,562,612 19,562,612 19,562,612
I.D.A. Credit -724 B.D.
Industrial Cr. Guarantee Claims
1,834,493 1,834,493 1,834,493 1,834,493
received Fund
Bangladesh Bank Cr.Guarantee Fee
178,997 178,997 178,997 178,997
I.D.A Cr. - 825 B.D.
BSCIC Service Charges
4,881,123 4,881,123 4,881,123 4,881,123
I.D.A Credit -825 B.D.
Revolving fund against
37,240,733 37,240,733 37,240,733 37,240,733
I.D.A. Credit -725 B.D.
Sundry Deposits (H.O) 3,918,406,798 3,565,516,514 3,918,406,798 3,565,516,514
Interest Subsidy Account 3,585,618 3,585,618 3,585,618 3,585,618
SPL A/C's Proceeds of Import
787,657 787,657 787,657 787,657
Documents Dr.of F.C( NBP)
Special accounts surplus Proceeds
8,479 8,479 8,479 8,479
of Import Goods
Unclaimed Dividend (NBP) 149,578 149,578 149,578 149,578
AST-CIDA Guarantee Fund for MCDSF. 45,312 45,312 45,312 45,312
Mother Club Women's Credit
2,554,409 2,554,409 2,554,409 2,554,409
Guarantee Fund
Loan from IDA Credit No. 765 BD. 56,824,870 56,824,870 56,824,870 56,824,870

Amount in Taka
Ref.
Note
2018 2017 2018 2017
Sirajganj Integrated Rural
39,249,546 38,624,865 39,249,546 38,624,865
Development Fund
Provision for Salary - 38 - 38
Rebate A/C of Term Loans to NBFI 350,452 350,452 350,452 350,452
Provision for rebate on good borrowers 28,810,000 28,810,000 28,810,000 28,810,000
I.D.A. Credit -3917 B.D. 224,119,541 224,119,541 224,119,541 224,119,541
Portfolio Margin Deposit Control 41,006,815 29,273,205 - -
Remittance Payable to Beneficiary 102,836,062 86,998,084 - -
Other provision of Indian operation - 689,257 - 689,257
Provision for loss of Sonali (UK) Ltd. - 115,328,674 - 115,328,674
VOSTRO Accounts Balance 13.08 422,530,087 238,143,684 422,530,087 238,143,684
Payable for Client Sale 3,219,893 8,506,527 - -
Others liabilities of subsidiary 452,105,710 486,081,555 - -
Refinance fund for Milk Product and
184,642,500 120,242,500 184,642,500 120,242,500
Artificial Inse. Scheme-RCD
B.B Refinance Scheme (200 Core)
192,000,000 20,000,000 192,000,000 20,000,000
for Jute Sector
E-challan statement account 739,999 - 739,999 -
ATM Settlement account credit balance 28,157,506 - 28,157,506 -
Provison for other bank's and
1,385,200,000 - 1,385,200,000 -
financial institution
Clearing Settlement account credit
17,806,474 - 17,806,474 -
balance
142,876,770,270 124,486,034,580 141,738,852,122 123,361,936,838
Overseas Branches
Other Liabilities of Overseas Branch 193,011,795 2,009,029,017 193,011,795 2,009,029,017
Reserve Fund of Kolkata Branch 248,224,601 227,857,490 248,224,601 227,857,490
441,236,396 2,236,886,507 441,236,396 2,236,886,507
143,318,006,666 126,722,921,087 142,180,088,518 125,598,823,345
13.01 Accumulated Provision for Loans and Advances
a) Provision for Classified loans Including writ
Balance at the beginning of the period 38,864,286,982 39,281,429,142 38,864,286,982 39,281,429,142
Less: Loans written off which fully Provided for 303,617,671 428,637,001 303,617,671 428,637,001
38,560,669,311 38,852,792,141 38,560,669,311 38,852,792,141
Add: Recovery Loans which was Written off earlier 89,569,018 11,494,841 89,569,018 11,494,841
38,650,238,329 38,864,286,982 38,650,238,329 38,864,286,982
Add: Specific Provision made during the year 5,395,700,000 - 5,395,700,000 -
44,045,938,329 38,864,286,982 44,045,938,329 38,864,286,982
Less: Recovered and Provision which no more
- - - -
required
Add: Net Charge on Profit Loss Account - - - -

Balance at the end of the year 44,045,938,329 38,864,286,982 44,045,938,329 38,864,286,982
b) Provision for Un-Classified loans

Less: Loans written off which fully Provided for - - - -
2,788,700,000 3,257,500,000 2,788,700,000 3,257,500,000
Add: Recovery from the Previous Written Off Loans - - - -
2,788,700,000 3,257,500,000 2,788,700,000 3,257,500,000
Add: Special Provision made during the year 2,434,600,000 2,434,600,000
5,223,300,000 3,257,500,000 5,223,300,000 3,257,500,000
Less: Recovered and Provision which no more required - - - -
5,223,300,000 3,257,500,000 5,223,300,000 3,257,500,000
Add: Net Charge on Profit Loss Account - (468,800,000) - (468,800,000)
292
Amount in Taka
Ref.
Note
2018 2017 2018 2017
13.02 Interest Suspense
Balance at the beginning of the period
Interest Reserve 30,513,144,490 24,848,165,789 30,513,144,490 24,848,165,789
Interest Reserve Penal Interest 2,527,429 6,515,273 2,527,429 6,515,273
30,515,671,919 24,854,681,062 30,515,671,919 24,854,681,062
Add: Amount transferred to "Interest Suspense"
- - - -
Account during the year
Interest Reserve Penal Interest 787 25,421 787 25,421
6,584,845,553 7,143,317,083 6,584,845,553 7,143,317,083
Less: Amount Recovered in "Interest Suspense"
account during the year
Interest Reserve Penal Interest 881,762 4,013,265 881,762 4,013,265
1,616,785,958 1,482,219,845 1,616,785,958 1,482,219,845
Less: Amount written off during the year
Interest Reserve - 106,381 - 106,381
Interest Reserve Penal Interest - - - -
- 106,381 - 106,381
Balance at the end of the period
Interest Reserve Penal Interest 1,646,454 2,527,429 1,646,454 2,527,429
35,483,731,514 30,515,671,919 35,483,731,514 30,515,671,919
13.03 Provision against diminishing value of portfolio Investment

Balance at the beginning of the period 654,701,534 240,196,334 571,405,200 156,900,000
Add: Additional during the year 1,008,131,234 414,505,200 1,008,131,234 414,505,200
Portfolio Investment 1,662,832,768 654,701,534 1,579,536,434 571,405,200
Debenture - - - -
Balance at the end of the year 1,662,832,768 654,701,534 1,579,536,434 571,405,200
13.04 Liability for employees benefit ( Pension fund)

Opening Balance
Sonali Bank Ltd. Employees Pension fund 1,727,789,970 1,816,621,071 1,727,789,970 1,816,621,071
Transfer/Adjustment made during the year
Sonali Bank Ltd. Employees Pension fund - - - -
Less: Payment made during the year
Sonali Bank Ltd. Employees Pension fund 423,549,440 411,625,430 423,549,440 411,625,430
Add: Creation during the year and prior year adjustment
Sonali Bank Ltd. Employees Pension fund 346,869,886 322,794,329 346,869,886 322,794,329
Closing Balance
Sonali Bank Ltd. Employees Pension fund 1,651,110,416 1,727,789,970 1,651,110,416 1,727,789,970
Provision Required 1,651,110,416 1,727,789,970 1,651,110,416 1,727,789,970

Provision Maintained 1,651,110,416 1,727,789,970 1,651,110,416 1,727,789,970
Provision Surplus/(Deficit) - - - -
13.05 Liability for employees benefit ( PDCRB fund)
Opening Balance
Sonali Bank Ltd. Employees PDCR Benefit fund 19,857,517,443 26,725,283,732 19,857,517,443 26,725,283,732
Transfer/Adjustment made during the year
Sonali Bank Ltd. Employees PDCR Benefit fund - - - -
Less: Payment made during the year

Amount in Taka
Ref.
Note
2018 2017 2018 2017
Add: Creation during the year and prior year
adjustment
Closing Balance
Provision Required 15,210,314,631 19,857,517,443 15,210,314,631 19,857,517,443
Provision Maintained 15,210,314,631 19,857,517,443 15,210,314,631 19,857,517,443
Provision Surplus/(Deficit) - - - -
13.06 Provision for Income Tax

Balance at the beginning of the year 4,669,540,896 4,213,267,934 4,628,610,397 4,189,972,376
Less: Payment during the year 2,942,116 16,570,381 - -
Add : Amount transferred during the year 480,323,361 472,843,343 451,869,948 438,638,021
Add : Income tax on Indian operation - - - -
13.07 Provision for Bonus/ Exgratia

Opening Balance 1,622,414,362 1,252,134,880 1,622,414,362 1,252,134,880
Less: Payment during the year 1,575,724,776 1,184,768,051 1,575,724,776 1,184,768,051
Add: Realized during the year 101,691,471 5,047,533 101,691,471 5,047,533
Add: Made during the year 2,550,000,000 1,550,000,000 2,550,000,000 1,550,000,000
13.07 VOSTRO Accounts Balance
Sl. As at 31 December 2018

Particulars
No. Foreign Currency FC amount Exchange rate Amount in Taka
1 Myanmar Foreign Trade Bank, Myanmar EURO 116,456 95.25 11,092,667
2 Office Account EURO 10,782 95.25 1,027,003
3 Sonali Bank Ltd Kolkata USD 19,568 83.90 1,641,723
4 The Jammu & Kashmir Bank Ltd. USD 25,158 83.90 2,110,798
5 Myanmar Investment & Com. Bank USD 396,175 83.90 33,239,157
6 Office Account USD 137,019 83.90 11,495,967
7 Export Development Bank Ltd. USD 116 83.78 9,719
8 Bank of Ceylon, Srilanka USD 3,557 83.91 298,473
9 Sonali Bank (UK) Ltd. GBP 3,411,480 106.00 361,614,579
Total 4,120,311 422,530,087
Amount in Taka
Ref.
Note
2018 2017 2018 2017
14.00 Share Capital 45,300,000,000 41,300,000,000 45,300,000,000 41,300,000,000
14.01 Authorized Capital

600,000,000 ordinary shares of Taka 100 each 60,000,000,000 60,000,000,000 60,000,000,000 60,000,000,000
14.02 Issued, subscribed and fully paid up Capital

453,000,000 ordinary shares of Taka 100 each
45,300,000,000 41,300,000,000 45,300,000,000 41,300,000,000
The entire amount of the paid up capital has been subscribed by the Government of the People’s Republic of Bangladesh
but each Director of the Bank is the holder of one symbolic Share of taka one hundred.
294
Amount in Taka
Ref.
Note
2018 2017 2018 2017
14.03 Capital To Risk Weighted Assets Ratios (CRAR)
In terms of section 13(2) of Bank Company Act, 1991 and Bangladesh Bank BRPD circular no. 09 dated 31 December
2008 and BRPD circular no. 18 dated 21 December 2014, required capital of the Bank at the close of business on 31
December 2018 was Taka 53,087,860,000.00 as against core capital of Taka 43,409,029,336.00 and supplementary
capital of Taka 10,207,736,167.00 i.e. a total capital of Taka 53,616,765,503.00 has been maintained, thereby showing a
surplus of capital/equity of Taka 528,905,503.00 at the year end:
Total risk weighted assets including
530,974,300,000 463,843,000,000 530,878,600,000 460,762,900,000
off-balance sheet items
Required capital @ 10% of risk weighted assets 53,097,430,000 46,384,300,000 53,087,860,000 46,076,290,000
Capital held:
Tire 1 Capital 14.03.02 43,281,037,143 36,981,478,367 43,409,029,336 37,166,684,914
Tier 2 Capital 14.03.03 10,207,736,167 10,517,100,000 10,207,736,167 10,517,100,000
Total Eligible Regulatory Capital (Tier 1 and 2) 53,488,773,310 47,498,578,367 53,616,765,503 47,683,784,914
Total capital surplus 391,343,310 1,114,278,367 528,905,503 1,607,494,914
CRAR/ CAR Based on Basel-III/ (II) Framework 10.07% 10.24% 10.10% 10.35%
14.03.01 Capital requirement Required Held Held Held Held
Tier - I (Minimum CET-1 @ 4.5%) 5.5% 8.15% 7.97% 8.18% 8.07%
Tier - II ( Maximum up to 4% of
the total RWA or 88.89% of CET-1
4.5% 1.92% 2.27% 1.92% 2.28%
whichever is higher applicable from
01 January 2015)
Total 10.0% 10.07% 10.24% 10.10% 10.35%
14.03.02 Tier 1 Capital

A. Common Equity Tier 1 (CET1) Capital
(Going-Concern Capital)
Paid up capital 45,300,000,000 41,300,000,000 45,300,000,000 41,300,000,000
Statutory reserve 15.00 11,449,953,229 10,199,682,014 11,449,953,229 10,199,682,013
Other reserve 117,000,000 117,000,000 117,000,000 117,000,000
Retained earnings (13,585,916,086) (14,635,203,647) (13,457,923,893) (14,449,997,099)
Share money deposit - - - -
General Reserve
Sub-total 43,281,037,143 36,981,478,367 43,409,029,336 37,166,684,914
Less : Deferred tax asset 14.03.2a - - - -

Total 43,281,037,143 36,981,478,367 43,409,029,336 37,166,684,914
B. Additional Tier-1 Capital

Non-cumulative irredeemable preference shares - - - -
Instruments issued by the banks that meet the
- - - -
qualifying criteria for AT1
Others (if any item approved by Bangladesh Bank) - - - -
- - - -
Less: Regulatory Adjustments from
14.03.2b - - - -
AT-1 Capital
- - - -
Total Tier 1 Capital (A+B) 43,281,037,143 36,981,478,367 43,409,029,336 37,166,684,914
14.03.03 Tier 2 Capital
Tier 2 Capital (Gone-concern Capital)
General provision maintained against unclassified
7,606,036,167 5,313,800,000 7,606,036,167 5,313,800,000
loans and off-balance sheet exposures
Assets revaluation reserve 13,008,400,000 10,748,000,000 13,008,400,000 10,748,000,000
Revaluation Reserve for HTM securities - 1,991,300,000 1,991,300,000
Revaluation Reserve for Equity - 269,000,000 - 269,000,000
20,614,436,167 18,322,100,000 20,614,436,167 18,322,100,000
Less: 80% Revaluation Reserves for
7,805,000,000 7,805,000,000
Fixed Assets, Securities 10,406,700,000 10,406,700,000
Total Tier 2 Capital 10,207,736,167 10,517,100,000 10,207,736,167 10,517,100,000

Amount in Taka
Ref.
Note
2018 2017 2018 2017
14.03.2a As per Bank request dated 24 April 2019, Bangladesh Bank allowed forbearance through vide no- BRPD (P-1) 661/13/2019-
3336 dated 29 April 2019 to adjust deferred tax assets against Common Equity Tier-1( CET-1) Capital for the year 2018.
Bank has complied that instruction accordingly.
14.04 Risk Weighted Assets (RWA) (Taka in Crore)
Consolidated Bank
Particulars
2018 2017 2018 2017
Credit Risk
i) On-Balance Sheet Exposure 38,295.38 35,097.35 38,328.82 34,900.16
ii) Off Balance Sheet Exposure 1,557.61 1,496.08 1,557.61 1,496.08
Market Risk 6,710.92 4,338.22 6,707.24 4,265.16
Operational Risk 6,533.52 5,452.65 6,494.19 5,414.89
Total Risk Weighted Assets (A+B+C) 53,097.43 46,384.30 53,087.86 46,076.29
14.05 Minimum Capital Requirement Under Basel III

Consolidated Bank
Particulars
2018 2017 2018 2017
A. Eligible Capital :
1. Common Equity Tier 1 (CET1) Capital (Going-
43,281,037,143 36,981,478,367 43,409,029,336 37,166,684,914
concern capital )
2. Tier 2 Capital (Gone-concern Capital) 10,207,736,167 10,517,100,000 10,207,736,167 10,517,100,000
3. Tier-3 (eligible for market risk only) - - - -
4. Total Eligible Capital (1+2+3) : 53,488,773,310 47,498,578,367 53,616,765,503 47,683,784,914
B. Total Risk Weighted Assets (RWA): 530,974,300,000 463,843,000,000 530,878,600,000 460,762,900,000
C. Capital Adequacy Ratio (CAR) (A4 / B)*100 10.07% 10.24% 10.10% 10.35%
D. Core Capital to RWA (A1 / B)*100 8.15% 7.97% 8.18% 8.07%
E. Supplementary Capital to RWA (A2 / B)*100 1.92% 2.27% 1.92% 2.28%
F. Minimum Capital Requirement (MCR) 53,097,430,000 46,384,300,000 53,087,860,000 46,076,290,000
Consolidated Bank
Particulars
2018 2017 2018 2017
14.06 Ratio (As per Basel III requirement)
Capital Related Ratio
CRAR 10.07% 10.24% 10.10% 10.35%
Leverage Ratio 2.90% 2.54% 2.91% 2.56%
Liquidity Related Ratio

Liquidity Coverage Ratio 112.63% 196.34%
Net Stable Funding Ratio 115.56% 101.27%
14.06.1 Details about Ratio

a) Capital to Risk-weighted Asset Ratio
Total Eligible Capital
CRAR (Bank)=
Credit RWA+Market RWA+Operational RWA
= 53,616,765,503
530,878,600,000
= 10.10%
53,488,773,310
CRAR (Consolidated) =
530,974,300,000
= 10.07%
296
b) Leverage Ratio
Tier 1 Capital (after relate deductions)
LR=
Total Exposure (after relate deductions)
43,409,029,336
LR (Bank) =
1,491,893,580,000
= 2.91%
43,281,037,143
LR (Consolidated)=
1,492,824,380,000
= 2.90%
c) Liquidity Coverage Ratio
Stock of quality liquid assets
LCR = Total net cash outflows over the next 30
calendar days
458,715,935
=
407,279,855
= 112.63%
d) Net Stable Funding Ratio
Available amount of stable funding (ASF)
NSFR=
Required amount of stable funding (RSF)
891,875,359
=
771,773,061
= 115.56%
14.07 Details about Shareholding
As at 31 Dec
Name of Shareholders Amount @ 100
2018
Government of the People's Republic of Bangladesh represented by
452,999,992 45,299,999,200
Finance Secretary, Ministry of Finance
Mr. Md. Ashraful Moqbul 1 100
Mr. Md. Fazlul Haque 1 100
Mr. Md. Mahboob Hossain 1 100
Mrs. Sabera Aktari Jamal 1 100
Mr. Muhammed Asadullah 1 100
Mr. A K M Kamrul Islam FCA, FCS 1 100
Dr. Md. Nurul Alam Talukder 1 100
Mr. Ishtiaque Ahmed Chowdhury 1 100
Total 453,000,000 45,300,000,000
14.08 Name of Directors and their Shareholding
Sl. Name of the Directors Status Amount @ 100

Chairman &
1 Mr. Md. Ashraful Moqbul 100
Director
2 Mr. Md. Fazlul Haque Director 100
3 Mr. Md. Mahboob Hossain Director 100
4 Mrs. Sabera Aktari Jamal Director 100
5 Mr. Muhammed Asadullah Director 100
6 Mr. A K M Kamrul Islam FCA, FCS Director 100
7 Dr. Md. Nurul Alam Talukder Director 100
8 Mr. Ishtiaque Ahmed Chowdhury Director 100
Total 800

Amount in Taka
Ref.
Note
2018 2017 2018 2017
15.00 Statutory Reserve
Opening Balance 10,199,682,013 8,284,876,284 10,199,682,013 8,284,876,284
Add: Transferred during the year (20% of pre-tax profit) 1,250,271,216 1,914,805,729 1,250,271,216 1,914,805,729
Closing Balance 11,449,953,229 10,199,682,013 11,449,953,229 10,199,682,013
16.00 Other Reserves

Reserve for Unforeseen Loss 16.01 47,000,000 47,000,000 47,000,000 47,000,000
Reserve for CSR 16.02 70,000,000 70,000,000 70,000,000 70,000,000
117,000,000 117,000,000 117,000,000 117,000,000
16.01 Reserve for Unforeseen Loss
Transfer to Reserve for Unforeseen losses - - - -
47,000,000 47,000,000 47,000,000 47,000,000
16.02 Reserve for CSR
Distribution during the Period (19,010,101) (8,937,328) (19,010,101) (8,937,328)
Transfer to Reserve for CSR 19,010,101 3,126,795 19,010,101 3,126,795
70,000,000 70,000,000 70,000,000 70,000,000
17.00 Revaluation Reserve

Revaluation of investment 17.01 5,231,908,567 7,424,851,415 5,231,908,567 7,424,851,415
Assets Revaluation Reserve 17.02 21,495,933,277 21,495,933,277 21,495,933,277 21,495,933,277
26,727,841,844 28,920,784,692 26,727,841,844 28,920,784,692
17.01 Revaluation of investment
Revaluation Reserve for
17.01.01 691,732,699 677,158,887 691,732,699 677,158,887
Held to Maturity (HTM)
Revaluation Reserve for
17.01.02 4,540,175,868 6,747,692,528 4,540,175,868 6,747,692,528
Held for Trading (HFT)
Balance at the end of the period 5,231,908,567 7,424,851,415 5,231,908,567 7,424,851,415
17.01.01 Revaluation Reserve for Held to Maturity (HTM)

Add: Gain on Revaluation of Gain/(Loss) 14,573,812 (1,656,275) 14,573,812 (1,656,275)
Balance at the end of the period 691,732,699 677,158,887 691,732,699 677,158,887
17.01.02 Revaluation Reserve for Held for Trading (HFT)
Add: Gain on Revaluation of Gain/(Loss) (2,207,516,660) (4,796,232,665) (2,207,516,660) (4,796,232,665)
17.02 Assets Revaluation Reserve

Addition during the year - - - -
Adjustment of Goodwill - - - -
18.00 Surplus in Profit and Loss Account/Retained Earnings

Balance at the beginning of the period (14,635,203,648) (13,307,148,815) (14,449,997,099) (13,051,604,275)
Profit during the year

Net Profit After Tax 2,321,338,777 7,161,158,032 2,264,214,113 7,091,660,386
Transfer to Reserve for CSR (19,010,101) (3,126,795) (19,010,101) (3,126,795)
Transfer to statutory reserve (1,250,271,216) (1,914,805,729) (1,250,271,216) (1,914,805,729)
1,052,057,460 5,243,225,508 994,932,796 5,173,727,862
Total Retained Surplus (13,583,146,188) (8,063,923,307) (13,455,064,303) (7,877,876,413)
298
Amount in Taka
Ref.
Note
2018 2017 2018 2017
Intangible Assets- Valuation
- (6,572,120,687) - (6,572,120,687)
Adjustment A/C
Currency transaction differences 89,692 840,346 - -
Adjustment of investment in
(2,859,590) - (2,859,590) -
associate (SB UK Ltd)
Balance at the end of the period (13,585,916,086) (14,635,203,648) (13,457,923,893) (14,449,997,099)
In terms of the decision taken in the meeting in the Ministry of Finance held on 24/03/2008, an amount Tk. 65,743,207,158
is to be amortized against profit to adjust the intangible Assets (Goodwill) created for Accumulated loss of previous years
out of Which Tk 65,743,207,158 was amortized up to 2017. In order to adjust the total amount within 10 years equally
rest of the balance of Tk. 0.00 in 2017.
19.00 Contingent Liabilities & Commitments
Letters of guarantee 19.01 5,883,424,909 3,329,652,912 5,883,424,909 3,329,652,912
Irrevocable Letters of Credit 19.02 1,139,460,108,558 1,084,431,849,024 1,139,460,108,558

1,084,431,849,024
Bills for collection 19.03 7,056,551,048 5,388,279,735 7,056,551,048 5,388,279,735
1,097,371,824,981 1,148,178,041,205 1,097,371,824,981 1,148,178,041,205
Significant amount of irrevocable L/C has been incurred in 2017 because of opening a special L/C amounting to
Tk. 96.246 crores in favor of Ministry of Power, Energy and Mineral Resources, Government of the republic of Bangladesh
for Ruppur Nuclear power plant.
19.01 Letters of guarantee
Claims lodged with the bank company, which is not recognized as loan;
Money for which the bank is contingently liable in respect of guarantee issued favoring:
Directors or officers - - -
Government 2,545,319,955 1,805,564,876 2,545,319,955 1,805,564,876
Banks and other financial institutions 6,442,363 25,957,149 6,442,363 25,957,149
Others - - -
Domestic 3,327,282,376 1,485,189,856 3,327,282,376 1,485,189,856
Overseas 4,380,215 12,941,031 4,380,215 12,941,031
5,883,424,909 3,329,652,912 5,883,424,909 3,329,652,912
19.02 Irrevocable Letters of Credit
(i) Government
Domestic 1,080,757,459,596 1,080,757,459,596
1,133,587,091,877 1,133,587,091,877
Overseas - - - -
1,080,757,459,596 1,133,587,091,877 1,080,757,459,596 1,133,587,091,877
Less: Margin - - - -
Sub Total 1,080,757,459,596 1,133,587,091,877 1,080,757,459,596 1,133,587,091,877
(ii) Bank and Other Financial Institutions

Domestic 2,794,301 822,565,024 2,794,301 822,565,024
Overseas - - - -
2,794,301 822,565,024 2,794,301 822,565,024
Sub-total 2,794,301 822,565,024 2,794,301 822,565,024
(iii) Others
Domestic 3,510,967,084 4,777,291,789 3,510,967,084 4,777,291,789
Overseas 160,628,043 273,159,868 160,628,043 273,159,868
3,671,595,127 5,050,451,657 3,671,595,127 5,050,451,657
Sub Total 3,671,595,127 5,050,451,657 3,671,595,127 5,050,451,657
Total of (i+ii+iii) 1,084,431,849,024 1,139,460,108,558 1,084,431,849,024 1,139,460,108,558

Amount in Taka
Ref.
Note
2018 2017 2018 2017
19.03 Bills for collection
Payable in Bangladesh 19.03.01 2,261,040,043 1,444,198,376 2,261,040,043 1,444,198,376
Payable outside Bangladesh 19.03.02 4,795,511,005 3,944,081,359 4,795,511,005 3,944,081,359
7,056,551,048 5,388,279,735 7,056,551,048 5,388,279,735
19.03.01 Payable of Inland Bills (Divisional office-wise)

Dhaka-1 1,034,805,908 1,015,643,810 1,034,805,908 1,015,643,810
Dhaka-2 1,038,701,132 153,165,797 1,038,701,132 153,165,797
Chattogram 118,314,549 1,244,000 118,314,549 1,244,000
Khulna 65,240,733 270,167,048 65,240,733 270,167,048
Cumilla - - - -
Faridpur - - - -
Rajshahi 3,977,721 3,977,721 3,977,721 3,977,721
Rangpur - - - -
Barishal - - - -
Sylhet - - -
Mymensing - - -
2,261,040,043 1,444,198,376 2,261,040,043 1,444,198,376
19.03.02 Payable of Foreign Bills (Divisional office-wise)

Dhaka-1 1,693,057,797 2,189,649,527 1,693,057,797 2,189,649,527
Dhaka-2 197,349,714 624,686,331 197,349,714 624,686,331
Chattogram 2,905,103,494 1,122,686,501 2,905,103,494 1,122,686,501
Khulna - 7,059,000 - 7,059,000
Cumilla - - - -
Faridpur - - - -
Rajshahi - - - -
Rangpur - - - -
Barishal - - - -
Sylhet - - - -
Mymensing - - - -
Overseas Branches - - - -
4,795,511,005 3,944,081,359 4,795,511,005 3,944,081,359
20.00 Income Statement
Income:
Interest, discount and similar income 20.01 65,111,384,321 65,111,384,321
59,844,723,440 59,844,723,440
Dividend Income 1,328,342,121 1,091,393,479 1,328,342,121 1,091,393,479
Fees, commission and brokerage 20.02 10,599,874,776 11,698,157,694 10,599,874,776 11,698,157,694
Gains less Losses arising from dealing securities - - - -
Gains less Losses arising from investment securities - - - -
Gains less Losses arising from dealing in
500,626,304 704,003,551 500,626,304 704,003,551
foreign currencies
Income from non-banking assets - - - -
Other operating income 25.00 257,654,178 313,418,188 257,416,484 312,120,496
Profit less Loss on interest rate changes - - - -
77,797,881,700 73,651,696,352 77,797,644,006 73,650,398,660
Expenses:
Interest, fee and commission 38,886,811,677 38,886,811,677

42,899,799,505 42,899,799,505
Losses on loans and advances/Assets
- 6,574,320,716 - 6,574,320,716
(Intangible Assets)
Administrative expenses 20.03 14,984,932,571 15,526,838,531 14,984,932,571 15,526,838,531
Other operating expenses 3,524,144,624 3,527,930,772 3,524,144,624 3,527,930,772
Depreciation on banking assets 507,679,409 443,539,861 507,679,409 443,539,861
57,903,568,281 68,972,429,385 57,903,568,281 68,972,429,385
300
Amount in Taka
Ref.
Note
2018 2017 2018 2017
20.01 Interest, discount and similar income
Interest income 33,036,563,286 27,674,490,306 33,036,563,286 27,674,490,306
Interest income on treasury bills, reverse repo, bonds 31,528,838,468 29,661,789,415 31,528,838,468 29,661,789,415
Interest on debenture 545,982,567 2,508,443,719 545,982,567 2,508,443,719
65,111,384,321 59,844,723,440 65,111,384,321 59,844,723,440
20.02 Fee, commission and brokerage
Fee 220,311,632 132,753,775 220,311,632 132,753,775
Commission 10,379,563,144 11,565,403,919 10,379,563,144 11,565,403,919
10,599,874,776 11,698,157,694 10,599,874,776 11,698,157,694
20.03 Administrative expenses
Salaries and allowances 13,573,885,693 14,191,050,179 13,573,885,693 14,191,050,179
Rent, Taxes, Insurance, Electricity etc. 1,102,372,828 1,023,543,967 1,102,372,828 1,023,543,967
Legal expenses 56,205,246 52,296,007 56,205,246 52,296,007
Postage, Stamps, Telecommunication etc. 57,740,263 72,331,158 57,740,263 72,331,158
Stationery, Printing, Advertisement etc. 177,046,937 167,881,378 177,046,937 167,881,378
Managing Directors' salary and fees 7,574,562 9,059,719 7,574,562 9,059,719
Directors' fees 6,238,750 7,434,289 6,238,750 7,434,289
Auditors' fees 3,868,292 3,241,834 3,868,292 3,241,834
14,984,932,571 15,526,838,531 14,984,932,571 15,526,838,531
21.00 Interest Income

On Loan and Advances 21.01 23,823,236,771 24,363,692,561 23,743,617,363 24,277,749,635
Interest on balance with other
21.02 6,476,267,513 2,779,158,766 6,473,540,352 2,777,934,168
banks and financial institutions
Interest received from foreign banks 21.03 63,278,118 32,385,698 63,278,118 32,385,698
Others 21.04 2,392,439,629 545,129,164 2,391,071,853 544,225,207
Interest Income of Indian operation 36,796,600 42,195,598 36,796,600 42,195,598
32,792,018,631 27,762,561,787 32,708,304,286 27,674,490,306
Less: Interest Income transferred to Interest
- - - -
Suspense A/C
32,792,018,631 27,762,561,787 32,708,304,286 27,674,490,306
21.01 Loan and Advances:

Loans
On Demand 13,328,651 18,174,947 13,328,651 18,174,947
On Small Loan 337,498 9,901,951 337,498 9,901,951
On House Building Loan (General) 114,428,147 43,723,615 114,428,147 43,723,615
On House Building Loan (Staff) 2,236,471,390 2,233,962,674 2,236,471,390 2,233,962,674
On Other Staff Loan 134,935,140 146,776,535 134,935,140 146,776,535
On Loan Under SBICS (Project) 862,537,442 1,615,679,384 862,537,442 1,615,679,384
On External Credit 454,460 6,935,788 454,460 6,935,788
On Working Capital to Industries -Hypo 1,197,045,663 2,094,560,152 1,197,045,663 2,094,560,152
On Working Capital to Industries -Pledge 136,189,954 158,417,968 136,189,954 158,417,968
On Loan Under SB Agro based Ind. Credit Scheme 426,040,888 636,469,692 426,040,888 636,469,692
On Working Capital to Agro based Ind. -Hypo 783,346,368 711,099,404 783,346,368 711,099,404
On Working Capital to Agro based Ind. -Pledge 537,540,173 367,704,262 537,540,173 367,704,262
On Agricultural Loan 2,465,893,103 2,393,682,527 2,465,893,103 2,393,682,527
On Micro Credit 525,759,824 527,603,358 525,759,824 527,603,358
On Loan against Imported Merchandise (LIM) 23,533,269 9,279,882 23,533,269 9,279,882
On Loan Against Trust Receipts (LTR) 1,626,898,582 2,126,661,396 1,626,898,582 2,126,661,396
On Force Loan against Back to Back L/C 641,902,476 547,277,413 641,902,476 547,277,413
On Bridge Finance 311,914,556 284,804,371 311,914,556 284,804,371
On Small Business Loan Scheme 121,409,609 104,061,208 121,409,609 104,061,208
On Special Small Loan Program 5,731,149 15,502,033 5,731,149 15,502,033
On Education Loan 884 1,767,360 884 1,767,360
On Foreign Education Loan 14,822 37,941 14,822 37,941
On Sonali Credit 18,992,521 17,327,174 18,992,521 17,327,174

Amount in Taka
Ref.
Note
2018 2017 2018 2017
On Lease Finance - 842,260 - 842,260
On SME Finance(WC to Ind. Serv. Trad.) 1,510,254,577 1,697,919,769 1,510,254,577 1,697,919,769
On SME Finance 48,303,233 147,177,523 48,303,233 147,177,523
On Loan against Inland Bills 60,163,176 199,666,975 60,163,176 199,666,975
On Term Loan to Freedom Fighter 1,084,957,010 675,351,492 1,084,957,010 675,351,492
On Small Trading Loan - 79,263 - 79,263
Interest on portfolio loan to investors 79,619,408 85,942,926 - -
On personal loan 5,107,526,503 4,188,377,587 5,107,526,503 4,188,377,587
On Term Loan to Bank and NBFI 120,719,178 13,796,042 120,719,178 13,796,042
On Special Loan - Interest Bearing
8,133,936 7,286,761 8,133,936 7,286,761
Advance Rent
On Rural Housing Finance - Sonali Neer A/C 155,255 - 155,255 -
On EDF Loan Account 148,882,775 - 148,882,775 -
On Loan against Bank Gurantee A/C 55,625 - 55,625 -
On Long Term Loan to Subsidiary Company (SECI) 941,463 - 941,463 -
Sub-total 20,354,418,708 21,087,851,633 20,274,799,300 21,001,908,707
Cash Credit
On Cash Credit General-Hypo 764,115,412 954,618,312 764,115,412 954,618,312
On Cash Credit General-Pledge 463,988,328 247,950,213 463,988,328 247,950,213
On Packing Cash Credit 52,223,716 45,503,261 52,223,716 45,503,261
Sub-total 1,280,327,456 1,248,071,786 1,280,327,456 1,248,071,786
Overdraft
On Overdraft Loan 2,028,617,485 1,819,223,667 2,028,617,485 1,819,223,667
Sub-total 2,028,617,485 1,819,223,667 2,028,617,485 1,819,223,667
Bills Discounted & Purchased
On Payment against Document 151,136,620 200,179,286 151,136,620 200,179,286
On Foreign Bills Purchased/Discounted-Clean - 7,988,575 - 7,988,575
On Foreign Bills Purchased/Documentary-
8,736,502 377,614 8,736,502 377,614
Documentary
Sub-total 159,873,122 208,545,475 159,873,122 208,545,475
23,823,236,771 24,363,692,561 23,743,617,363

24,277,749,635
21.02 Interest on balance held with other banks and financial institutions
Interest on FDR with Other Bank 6,473,540,352 2,777,934,168 6,473,540,352 2,777,934,168
Interest on STD with Other Bank 2,727,161 1,224,598 - -
6,476,267,513 2,779,158,766 6,473,540,352 2,777,934,168
21.03 Interest received from foreign banks

On B.H.W. Foreign Bank 63,278,118 32,385,698 63,278,118 32,385,698
63,278,118 32,385,698 63,278,118 32,385,698
21.04 Others Interest income
On Advance Rent - 122,145 - 122,145
On Interest Recovered from Interest Suspense A/c 1,616,785,958 12,707,639 1,616,785,958 12,707,639
Interest Income from SECI 1,367,776 903,957 - -
On Other Interest Income - - - -
On Money at Call 774,285,895 531,395,423 774,285,895 531,395,423
2,392,439,629 545,129,164 2,391,071,853 544,225,207
22.00 Interest paid on deposits and borrowings etc.
Interest on Deposits 22.01 38,789,200,643 42,783,893,252 38,789,200,643 42,783,893,252
Interest paid on Borrowings 22.02 50,189,244 49,484,595 49,731,770 46,105,346
Interest on others 22.03 47,879,264 41,486,943 47,879,264 41,486,943
Interest on Foreign Banks Account 87,929,523 - 87,929,523 -
Interest paid on Deposit and
26,364,669 28,313,964 26,364,669 28,313,964
borrowings of Indian operation
39,001,563,343 42,903,178,754 39,001,105,869 42,899,799,505
302
Amount in Taka
Ref.
Note
2018 2017 2018 2017
22.01 Interest paid on Deposits

Fixed deposits 12,663,217,424 13,644,449,005 12,663,217,424 13,644,449,005
Savings deposits 8,894,975,093 8,360,851,052 8,894,975,093 8,360,851,052
Short term deposits 3,173,639,093 2,890,797,845 3,173,639,093 2,890,797,845
Deposit pension scheme 730,373 2,132,657 730,373 2,132,657
S.B Special deposit & pension scheme 256,252 1,932,625 256,252 1,932,625
Staff Provident fund 1,885,335,679 1,824,952,895 1,885,335,679 1,824,952,895
Foreign currency deposits 100,726,101 87,730,090 100,726,101 87,730,090
Sonali Deposit Scheme 920,077,663 955,437,446 920,077,663 955,437,446
Education Deposit scheme 309,635,398 560,723,121 309,635,398 560,723,121
Medicare Deposit Scheme 1,445,955,902 2,510,600,056 1,445,955,902 2,510,600,056
Rural Deposit Scheme 73,809,300 78,870,961 73,809,300 78,870,961
Monthly Earning Scheme 776,968,571 2,312,870,356 776,968,571 2,312,870,356
School Banking Scheme 23,243,833 16,809,247 23,243,833 16,809,247
Double Benefit Scheme 5,953,835,945 7,262,716,610 5,953,835,945 7,262,716,610
Daily Profit Scheme 9,439,741 19,249,590 9,439,741 19,249,590
Triple Benefit Scheme 215,606,111 656,215,758 215,606,111 656,215,758
Millionaire Deposit Scheme 1,796,061,887 1,116,532,987 1,796,061,887 1,116,532,987
Retirement Saving Scheme 4,393,455 13,489,129 4,393,455 13,489,129
SB Retirement Saving Scheme 248,932,944 171,155,574 248,932,944 171,155,574
Non Resident Deposit Scheme 157,185 563,027 157,185 563,027
Sonali Krishak Saving Scheme - 1,497,842 - 1,497,842
Marriage Saving Scheme 292,202,693 294,315,379 292,202,693 294,315,379
38,789,200,643 42,783,893,252 38,789,200,643 42,783,893,252
22.02 Interest paid on Borrowings

On Bangladesh Bank Demand Loan 35,409,277 38,197,295 35,409,277 38,197,295
On Reverse Repo 14,779,967 11,287,300 14,322,493 7,908,051
50,189,244 49,484,595 49,731,770 46,105,346
22.03 Interest paid on others

Other Interest 47,879,264 41,486,943 47,879,264 41,486,943
47,879,264 41,486,943 47,879,264 41,486,943
23.00 Investments Income
Interest on Treasury Bill 465,076,474 859,279,853 465,076,474 859,279,853
Interest on Bangladesh Bill 545,982,567 2,508,443,719 545,982,567 2,508,443,719
Interest on Treasury Bond 31,061,679,536 31,061,679,536

28,801,259,205 28,801,259,205
Interest on Reverse Repo 2,082,458 1,250,357 2,082,458 1,250,357
On investment Income of Indian operation 14,166,619 12,144,491 14,166,619 12,144,491
Gain/(Loss) on disposal of securities 923,759,605 682,027,666 923,759,605 682,027,666
Dividend income & Others 1,346,374,032 1,141,607,504 1,328,342,121 1,091,393,479
34,359,121,291 34,006,012,795 34,341,089,380 33,955,798,770
24.00 Commission, Exchange and Brokerage

Commission 24.01 10,543,913,274 11,742,213,553 10,379,563,144 11,565,403,919
Exchange 24.02 500,626,304 704,003,551 500,626,304 704,003,551
Brokerage - - - -
Commission ,Exchange. & Brokerage of Indian
134,488,322 141,193,716 134,488,322 141,193,716
Operation
11,179,027,900 12,587,410,820 11,014,677,770 12,410,601,186

Amount in Taka
Ref.
Note
2018 2017 2018 2017
24.01 Commission
Commission A/C Cr. Balance
On Foreign Bills Purchased/Negotiated 17,905,602 2,170,134,988 17,905,602 2,170,134,988
On Inland DD, MT,TT Issued/Cancelled 147,226,223 184,401,842 147,226,223 184,401,842
On Inland DD Purchased 2,113,695 66,244,135 2,113,695 66,244,135
On Govt. Receives & Disbursement 5,617,389,824 4,617,737,862 5,617,389,824 4,617,737,862
On Commission on Inland L/C Opened 1,030,927,724 1,044,204,662 1,030,927,724 1,044,204,662
On Purchased & Sale of Shares/Securities 114,637,547 479,742,898 114,637,547 479,742,898
On Inland Bills & Cheque Collection 54,689,218 66,065,291 54,689,218 66,065,291
On Inland Bank Guarantee Issued 6,140,808 44,222,053 6,140,808 44,222,053
On Payment Order 267,615,032 261,297,288 267,615,032 261,297,288
On Incidental Charges & Settlement fees 2,752 107,755,690 2,752 91,457,176
On Lockers Fees, Profitable Management fees
36,196,011 30,980,479 17,388,440 18,752,669
& Other fees
On Payment of Food Procurement Bills 352,892,825 118,198,796 352,892,825 118,198,796
On Army Pension 61,803,598 55,660,966 61,803,598 55,660,966
On Civil Pension 210,988,190 175,573,711 210,988,190 175,573,711
On Foreign DD,MT,TT Issued Cancelled - 4,536,237 - 4,536,237
On Foreign L/C Opened - 446,573 - 446,573
On Others 2,517,618,391 2,282,781,181 2,372,075,832 2,134,497,871
On Savings Certificate 70,543,994 32,228,901 70,543,994 32,228,901
On BSP/PSP Account 1,580,905 - 1,580,905 -
On NID Varification Fees A/C 740 - 740 -
On Card 33,636,223 - 33,636,223 -
On E-Commerce Account 3,972 - 3,972 -
Sub-total 10,543,913,274 11,742,213,553 10,379,563,144 11,565,403,919
Less: Commission A/C Dr. Balance
On Debt Recovery Agent - - - -
Sub-total - - - -
10,543,913,274 11,742,213,553 10,379,563,144 11,565,403,919
24.02 Exchange
Exchange gain
Gain on F. Currency Transaction 448,631,887 571,209,714 448,631,887 571,209,714
Gain on F. Currency Revaluation 213,824,602 40,062 213,824,602 40,062
Gain On Foreign Bill Purchase/Negotiated 24,537,749 - 24,537,749 -
Gain on Others 220,311,632 132,753,775 220,311,632 132,753,775
Sub-total 907,305,870 704,003,551 907,305,870 704,003,551
Less: Exchange Loss
Foreign Currency Transaction 280,536,566 - 280,536,566 -
Foreign Currency Revaluation 12,876,000 - 12,876,000 -
Loss on Others 113,267,000 - 113,267,000 -
Sub-total 406,679,566 - 406,679,566 -
500,626,304 704,003,551 500,626,304 704,003,551
25.00 Other Operating Income

Profit of Islamic windows 27,084,265 11,299,613 27,084,265 11,299,613
Profit of SB UK Ltd 2,855,642 - 2,855,642 -
Profit of Sonali Polaris FT Ltd. 25,482,016 41,748,208 25,482,016 41,748,208
Rent Received - 10,319,785 - 10,319,785
Return from provision for Sonali Bank Ltd. 115,328,674 - 115,328,674 -
Sundries 86,903,581 250,050,582 86,665,887 248,752,890
257,654,178 313,418,188 257,416,484 312,120,496
304
Amount in Taka
Ref.
Note
2018 2017 2018 2017
26.00 Salary & Allowances*
Salaries (Basic Pay, House Rent & Other Allowance) 10,381,636,326 10,896,507,490 10,220,130,851 10,706,865,305
Contribution to Pension & Gratuity Fund 1,258,734,030 1,331,622,420 1,258,734,030 1,331,622,420
Bank's contribution to provident fund 290,233,227 287,443,077 290,233,227 287,443,077
Medical Attendance. 619,145,854 658,606,648 619,145,854 658,606,648
Bonus to Staff 1,082,281,807 1,103,664,056 1,082,281,807 1,103,664,056
Overtime 49,096,866 47,378,846 49,096,866 47,378,846
Salaries and allowances of Indian operation 54,263,058 55,469,827 54,263,058 55,469,827
13,735,391,168 14,380,692,364 13,573,885,693 14,191,050,179
27.00 Rent, Tax, Insurance, Electricity etc.

Rent 540,216,864 487,504,179 532,973,723 480,640,729
Taxes 22,118,071 18,722,477 22,118,071 18,722,477
Service Charge of premises 136,000 132,000 - -
Insurance 391,608,343 374,413,133 391,544,048 374,348,838
Power and electricity 146,748,836 138,823,912 146,408,583 138,445,156
Rent, taxes, insurance, electricity etc.
9,328,403 11,386,767 9,328,403 11,386,767
of India operation
1,110,156,517 1,030,982,468 1,102,372,828 1,023,543,967
28.00 Legal expenses

Law charges 56,183,331 52,200,490 56,183,331 52,200,490
Law charges of India operation 21,915 95,517 21,915 95,517
56,205,246 52,296,007 56,205,246 52,296,007
29.00 Postage, Stamps, Telecommunication
Postage &Telegram, telex and fax etc. 4,926,333 11,238,657 4,900,361 11,231,571
Stamp 8,868,846 9,783,232 8,810,046 9,740,982
Telephone 39,290,835 45,462,476 39,230,984 45,367,533
Postage, stamps, telecommunication
4,798,872 5,991,072 4,798,872 5,991,072
of India operation
57,884,886 72,475,437 57,740,263 72,331,158
30.00 Printing, Stationery, Advertisement, etc.
Stationery & printing 145,059,530 143,495,117 144,862,745 143,329,004
Advertisement 31,133,042 23,229,208 31,082,442 23,209,208
Stationery, printing and advertisement etc.
1,101,750 1,343,166 1,101,750 1,343,166
of India operation
177,294,322 168,067,491 177,046,937 167,881,378
31.00 Chief executive's salary and fees

Chief executive's salary and fees 4,800,000 4,800,000 4,800,000 4,800,000
Chief executive's salary and fees
2,774,562 4,259,719 2,774,562 4,259,719
of India operation
7,574,562 9,059,719 7,574,562 9,059,719
*Basic Salary of Managing Director and CEO Tk. 3,25,000 and Allowances Tk. 75,000 per month.
32.00 Directors' Fees & Honorarium*

Directors' fees & Honorium 6,800,500 7,896,200 6,238,750 7,429,000
Directors' fees of India operation - 5,289 - 5,289
6,800,500 7,901,489 6,238,750 7,434,289
*Each Director is paid Tk. 8,000 per meeting per attendance as per Bangladesh Bank’s BRPD Circular no.11 dated 04
October 2015.
33.00 Auditors' fees
Statutory Audit fee 3,163,625 2,765,500 3,090,625 2,672,500
Audit fee of India operation 777,667 569,334 777,667 569,334
3,941,292 3,334,834 3,868,292 3,241,834

Amount in Taka
Ref.
Note
2018 2017 2018 2017
34.00 Depreciation and Repairs at Bank's Assets
Depreciation:
A) Premises (Including Land & Building)
Premises 34,845,756 39,551,306 34,845,756 39,551,306
Building Construction - - - -
Sub-total 34,845,756 39,551,306 34,845,756 39,551,306
B) Dead stock
Furniture 73,373,470 67,454,004 72,987,091 67,034,607
Electric Installation 79,733,715 72,355,091 78,851,251 72,095,651
Computer Hardware 190,772,544 166,000,082 190,556,541 166,000,082
Type Writer Machine 30,467 90,487 30,467 90,487
Library 610,129 536,199 610,129 536,199
Sub-total 472,404,158 402,328,260 470,899,312 400,758,212
Kolkata Branch 1,886,213 3,150,309 1,886,213 3,150,309

Siliguri Branch 48,128 80,034 48,128 80,034
Sub-total 1,934,341 3,230,343 1,934,341 3,230,343
509,184,255 445,109,909 507,679,409 443,539,861
Repairs:
Repairs to Bank's Assets 46,873,828 62,203,108 45,924,839 61,633,256
Repairs to Bank's assets of India operation 324,080 240,665 324,080 240,665
Sub-total 47,197,908 62,443,773 46,248,919 61,873,921
556,382,163 507,553,682 553,928,328 505,413,782
35.00 Other expenses

Repairs to Rented Property 1,400,775 5,292,026 1,400,775 5,292,026
Consultant fees & Bank Charge 410,738 1,572,178 - -
Books and News Paper 27,110,865 25,931,596 27,053,947 25,826,416
Pay of Police guards 861,215,749 897,134,006 861,067,669 896,973,586
Motor Car Running and Maintenance 64,267,983 103,770,203 64,267,983 103,770,203
Entertainment 53,333,969 53,113,400 52,626,585 52,551,610
Sundries 524,576,027 537,681,716 524,576,027 537,681,716
Traveling Expenses & VAT Expenses 143,221,923 143,987,364 143,152,195 143,848,815
Lunch Subsidy 660,664,463 716,353,469 660,003,303 715,535,589
Donation and Subscription 25,281,310 22,337,460 25,069,690 22,153,000
Liveries to Staff 12,539,032 13,421,781 12,539,032 13,421,781
Sports 3,953,131 6,847,518 3,953,131 6,847,518
VISA-IRF 62,067 9,716 62,067 9,716
Computer Hardware Repairs &
26,261,567 26,081,095 26,261,567 26,081,095
Maintenance
Computer Software Repairs & Maintenance 150,404,398 106,223,597 150,404,398 106,223,597
Rent of Connectivity/CCTV/Internet Etc. 90,202,943 52,597,351 90,202,943 52,597,351
Training Expenses 65,324,836 44,650,234 65,324,836 44,650,234
Bangla Nabobosho Allowance 106,977,982 107,239,218 106,977,982 107,239,218
Washing Allowance 1,421,594 1,796,025 1,421,594 1,796,025
Cash Transportation 66,491,499 68,876,905 66,491,499 68,876,905
Business Development 12,611,615 12,661,057 11,964,769 11,691,820
Death relief Grant fund 40,950,000 30,700,000 40,950,000 30,700,000
Honorarium to staff 31,878,987 8,899,880 31,878,987 8,899,880
Generator Maintenance 58,233,345 60,896,131 58,233,345 60,896,131
Staff welfare 23,686,320 20,379,077 22,756,916 19,725,146
Operation & Maintenance Cost of
267,547,666 238,291,535 267,547,666 238,291,535
Executive Car Loan
306
Amount in Taka
Ref.
Note
2018 2017 2018 2017
VAT expense 1,290,254 1,526,147 - -
Recreation Expenses 157,626,229 136,676,789 157,626,229 136,676,789
Loss on disposal of Securities - 20,850,469 - 20,850,469
Other expenses of Indian operation 12,628,560 6,948,680 12,628,560 6,948,680
Conveyance 2,525,728 - 2,525,728 -
Hired Transport 34,577,201 - 34,577,201 -
NID Verification Charge 598,000 - 598,000 -
3,529,276,756 3,472,746,623 3,524,144,624 3,466,056,851
36.00 Provision for Loans and Advances
Provision for Classified Loans & Advances 5,395,700,000 - 5,395,700,000 -
Provision for Unclassified Loans and Advances 2,434,600,000 (468,800,000) 2,434,600,000 (468,800,000)
Total amount of provision made during the year 7,830,300,000 (468,800,000) 7,830,300,000 (468,800,000)
36a In response to Bank request dated 24 April 2019, Bangladesh Bank allowed forbearance through vide no- BRPD (P-1)
661/13/2019-3336 dated 29 April 2019 to maintain required provision against unclassified and classified loans & advances
including writ for the year 2018. Bank has complied that accordingly.
37.00 Provision for diminution in value of investment
Dealing securities
Quoted - - - -
Unquoted - - - -
Investment securities
Quoted 1,008,131,234 414,505,200 1,008,131,234 414,505,200
Unquoted - - - -
Debenture (Public and Private) (51,000,000) 56,944,125 (51,000,000) 56,944,125
957,131,234 471,449,325 957,131,234 471,449,325
38.00 Other provisions

Provision for other assets 927,978,045 300,000,000 927,978,045 300,000,000
Provision against Off Balance Sheet
38.01 355,756,764 57,718,653 355,756,764 57,718,653
exposure
Provision for NOSTRO A/C 343,661 1,705,468 343,661 1,705,468
Provision for Bonus & Exgratia 2,550,000,000 1,550,000,000 2,550,000,000 1,550,000,000
Provision for Balance with BB - 468,800,000 - 468,800,000
Return of provision for India operation (689,257) - (689,257) -
Provision for other bank's & financial institution 1,385,200,000 - 1,385,200,000 -
Provision for financial assistants 3,000,000 4,000,000 - -
5,221,589,213 2,382,224,121 5,218,589,213 2,378,224,121
38a In response to Bank appeal dated 24 April 2019, Bangladesh Bank allowed forbearance through vide no- BRPD (P-1)
661/13/2019-3336 dated 29 April 2019 to maintain required provision against Balance with Bangladesh Bank for the year
2018. Bank has complied that accordingly.
38b As per BRPD circular no. 14, date 23 Sep 2012, 1% provision should be maintained against off- balance sheet items except
the criteria mention in the BRPD circular no 01, date 03 January 2018. In response to Bank appeal dated 27 November
2017, Bangladesh Bank allowed forbearance through vide no- BRPD (p-1)/661/13)/2017-7860 dated 27 November 2017
to maintain required provision against L/C of Ruppur Nuclear Power plant. Bank has complied that accordingly.
39.00 Cash Received from Other Operating
Activities
Exchange - - - -
Other operating income 257,654,178 313,418,188 257,416,484 312,120,496
257,654,178 313,418,188 257,416,484 312,120,496
40.00 Cash paid for Other Operating Activities

Rent (530,411,451) (487,504,179) (523,326,003) (480,640,729)
Taxes (22,118,071) (18,722,477) (22,118,071) (18,722,477)
Insurance (391,608,343) (374,413,133) (391,544,048) (374,348,838)
Power & electricity (146,748,836) - (146,408,583) -

Amount in Taka
Ref.
Note
2018 2017 2018 2017
Rent, Taxes Insurance of Indian
(9,328,403) (11,386,767) (9,328,403) (11,386,767)
operation
Law Charges (56,165,612) (52,296,007) (56,165,612) (52,296,007)
Postage (4,897,668) (11,238,657) (4,871,696) (11,231,571)
Stamp (8,868,846) (9,783,232) (8,810,046) (9,740,982)
Telephone (39,290,835) (45,462,476) (39,230,984) (45,367,533)
Postage, Stamp, Telephone of
(4,798,872) (5,991,072) (4,798,872) (5,991,072)
Indian operation
Auditors' Fees (3,941,292) (3,334,834) (3,868,292) (3,241,834)
Advertisement (31,133,042) (23,229,208) (31,082,442) (23,209,208)
Director Fees (6,800,500) (7,901,489) (6,238,750) (7,434,289)
Repairs to Bank's Property (46,873,828) (62,203,108) (45,924,839) (61,633,256)
Repairs to rented property (1,400,775) (5,292,026) (1,400,775) (5,292,026)
Pay of Police Guards (861,215,749) (897,134,006) (861,067,669) (896,973,586)
Motor Car Running (64,267,983) (103,770,203) (64,267,983) (103,770,203)
Maintaince of Executive Car (267,547,666) (238,291,535) (267,547,666) (238,291,535)
Entertainment (53,333,969) (53,113,400) (52,626,585) (52,551,610)
Sundries (457,179,543) (537,681,716) (457,179,543) (537,681,716)
Traveling Expenses (143,221,923) (143,987,364) (143,152,195) (143,848,815)
Lunch Subsidy - (716,353,469) - (715,535,589)
Donation (25,281,310) (22,337,460) (25,069,690) (22,153,000)
Liveries to Staff - (13,421,781) - (13,421,781)
Sports (3,953,131) (6,847,518) (3,953,131) (6,847,518)
Computer Hardware Rep. (26,261,567) (26,081,095) (26,261,567) (26,081,095)
Computer Software Rep. (150,404,398) (106,223,597) (150,404,398) (106,223,597)
Rent of Connectivity/CCTV (90,202,943) (52,597,351) (90,202,943) (52,597,351)
Training Expenses (65,324,836) (44,650,234) (65,324,836) (44,650,234)
Bangla Naboborsho - (107,239,218) - (107,239,218)
Washing Allowance (1,421,594) (1,796,025) (1,421,594) (1,796,025)
Cash transportation (66,491,499) (68,876,905) (66,491,499) (68,876,905)
Generator Maintenance (58,233,345) (60,896,131) (58,233,345) (60,896,131)
VISA-IRF (62,067) (9,716) (62,067) (9,716)
Adjusting A/C - (36,995,070) - (36,995,070)
Business Development (12,611,615) (12,661,057) (11,964,769) (11,691,820)
Death Relief Grant Scheme (40,950,000) (30,700,000) (40,950,000) (30,700,000)
Recreation Expenses (157,626,229) (136,676,789) (157,626,229) (136,676,789)
Paid for CSR expenditure (19,010,101) (8,937,327) (19,010,101) (8,937,328)
Service charges of promises (136,000) (132,000) - -
VAT expense (1,290,254) (1,526,151) - -
Currency translation differences 89,692 840,346 - -
Consultant fees & Bank Charge (410,738) (1,572,178) - -
Other expenses of Indian operation (12,628,560) (6,948,676) (12,628,560) (6,948,680)
NID Verification Charge (598,000) - (598,000) -
Conveyance (2,525,728) - (2,525,728) -
Repairs to Bank's assets of Indian operation (324,080) (240,665) (324,080) (240,665)
(3,886,811,510) (4,555,616,956) (3,874,011,594) (4,542,172,566)
41.00 Increase / (Decrease) of Other Assets

Investment in SECI - - (1,140,000) (3,800,000)
Long term Loan to Subsidiary Company(SECI). - - 11,839,000 3,475,000
Stamps in hand 1,521,448 (657,382) 1,521,448 (657,382)
Stationery in hand 40,970,199 50,526,628 40,970,199 50,526,628
Advance Rent 9,773,599 33,629,207 9,773,599 33,629,207
Branch Adjustment 15,082,789,073 45,918,748,996 15,082,789,073 45,918,748,996
Suspense account 1,211,270,772 (628,819,363) 1,211,270,772 (628,819,363)
Draft Payable account (Ex-Advice) 24,574,313 13,885,730 24,574,313 13,885,730
Employee PDCRB fund investment (24,861,252) 6,356,063,643 (24,861,252) 7,697,993,025
308
Amount in Taka
Ref.
Note
2018 2017 2018 2017
Employee pension fund investment 3,855,496,299 (50,466,162) 3,855,496,299 (50,466,162)
Govt. Draft Payable Account (Ex-Advice) 18,564,057 (16,979,685) 18,564,057 (16,979,685)
Protested Bills (5,934,509) (136,006) (5,934,509) (136,006)
Wage Earners' Fund Purchased Adj. A/C. 1,604,453,226 9,141,551 1,604,453,226 9,141,551
Adjusting Account Debit Balance (97,215,223) 1,067,282,545 (97,215,223) 1,067,282,545
Settlement Account (Islamic) (143,919,794) (27,772,036) (143,919,794) (27,772,036)
Investment in foreign currency A/C - 3,323,453,500 - 3,323,453,500
Demand Drafts purchased 151,068,089 (265,718,934) 151,068,089 (265,718,934)
Pension Bill Purchased(Army) 456,079,247 255,766,151 456,079,247 255,766,151
Pension Bill Purchased(Civil) 158,480,767 102,232,803 158,480,767 102,232,803
PSP/BSP Encashment (1,903,953,317) (1,706,880,893) (1,903,953,317) (1,706,880,893)
Agri- Exemption A/C Affected By River Erosion (797,237) 1,894 (797,237) 1,894
NRT A/C Dr. Balance (30,500) 654,683 (30,500) 654,685
Army Pension Bill Purchased A/C (New) (1,277,137,613) (1,307,651,026) (1,277,137,613) (1,307,651,026)
Overseas Branches 1,841,683,050 (1,108,111,562) 1,841,683,050 (1,108,111,562)
Other receivable (12,527,840) 220,738,754 - -
Security Deposits (285,215) (248,644) - -
Advance Cover Funds - 28,945,781 - -
Others Current assets of SECI - (1,163,925) - -
Frozen Fish Loan Exemption A/C 101,773,510 - 101,773,509 -
ATM Settlement Account Debit Balance (56,433,070) - (56,433,070) -
SECI Settlement Account Debit Balance (241,545,685) - (241,545,685) -
Clearing Settlement Account Debit Balance (13,317,859) - (13,317,859) -
Wage Earners' Bond Encashment A/C (694,757,576) - (694,757,576) -
Preliminary Expenses - HR Recruitment A/C (11,487,463) - (11,487,463) -
20,074,293,497 52,266,466,247 20,097,805,552 53,359,798,665
42.00 Increase / (Decrease) of Other Liabilities

Closing other liabilities:
Provision for classified Loans (214,048,653) (417,142,160) (214,048,653) (417,142,160)
Interest Suspense 4,968,059,595 5,660,990,857 4,968,059,595 5,660,990,857
Sonali Bank Employees' PDCRB fund (76,679,554) (128,760,668) (76,679,554) (128,760,668)
Sonali Bank Employees' Pension fund (4,647,202,812) (6,867,766,288) (4,647,202,812) (6,867,766,288)
Adjusting A/C Cr. Balance 3,655,137 (192,813,407) 3,655,137 (192,813,407)
Sundry Deposits (H.O) 352,890,284 656,908,126 352,890,284 656,908,126
Provision for Bonus/Exgratia (1,474,033,305) 370,279,482 (1,474,033,305) 370,279,482
Provision for NOSTRO A/C (1,705,468) 493,325 (1,705,468) 493,325
Balance in F.C Clearing Account - (108,740) - (108,740)
Sirajganj Integrated Rural Development Fund 624,681 624,681 624,681 624,681
Foreign Currency Fund Purchased A/C (1,924,850,833) 51,328,029 (1,924,850,833) 51,328,029
Foreign Correspondent Charges 1,446,579 (1,153,404) 1,446,579 (1,153,404)
Exporter Foreign Currency Retention Quota 7,355,058,248 37,941,067 7,355,058,248 37,941,067
BB Refinance Scheme for SML of Tk. 10 (5,613,750) (2,816,250) (5,613,750) (2,816,250)
Provision for rebate on good borrowers - (21,190,000) - (21,190,000)
Provision for loss of Sonali UK Ltd. (115,328,674) - (115,328,674)
Income Receivable in Advance (34,505,392) 16,104,754 (34,505,392) 16,104,754
Asian Clearing Union (VOSTRO) 184,386,403 167,861,408 184,386,403 167,861,408
Employee tax deducted 9,166,832 153,763 9,166,832 153,763
BB Refinance Scheme for SME (Ren.
(316,568) (316,568) (316,568) (316,568)
Energy/Solar Energy)
Revolving fund against I.D.A. Credit -725 B.D. - 8,645,875 - 8,645,875
Payable for Client Sale (5,286,634) (2,106,613) - -
Others liabilities of subsidiary (36,975,845) (171,907,118) - -
Portfolio Margin Deposit Control 11,733,610 4,869,966 - -
Remittance Payable to Beneficiary 15,837,978 28,077,284 - -

Amount in Taka
Ref.
Note
2018 2017 2018 2017
Refinance fund for Milk Product and Artificial
64,400,000 120,242,500 64,400,000 120,242,500
Inse. Scheme-RCD
B.B Refinance Scheme (200 Core)
172,000,000 20,000,000 172,000,000 20,000,000
for Jute Sector
Overseas Branches (1,795,650,111) 1,191,458,309 (1,795,650,111) 1,191,458,309
E Challan Settlement A/C 739,999 - 739,999 -
ATM settlement Account Credit Balance 28,157,506 - 28,157,505 -
Provision for Salary (38) - (38) -
Clearing settlement Account Credit Balance 17,806,474 - 17,806,474 -
2,853,765,689 529,898,209 2,868,456,579 670,964,691
43.00 Cash and cash equivalents

Cash in hand (Including foreign currency) 5,016,917,890 5,112,714,589 5,016,917,890 5,112,714,589
Cash at Bank - - - -
Balance with Bangladesh Bank 93,111,121,308 82,883,273,174 93,111,121,308 82,883,273,174
Money at call on short notice 19,723,200,000 22,564,800,000 19,723,200,000 22,564,800,000
Balance held with other bank 107,792,446,613 68,872,230,477 107,494,384,469 68,568,548,406
Prize bonds in hand 64,590,200 61,275,750 64,590,200 61,275,750
225,708,276,011 179,494,293,990 225,410,213,867 179,190,611,919
44.00 Earnings per Share (EPS):
Net profit after tax 2,321,338,777 7,161,158,033 2,264,214,113 7,091,660,386
Number of ordinary shares
44.01 413,876,712 383,410,959 413,876,712 383,410,959
outstanding
Earnings per share (EPS) 5.61 18.68 5.47 18.50
44.01 Weighted average number of ordinary shares outstanding

30,000,000 Ordinary shares outstanding for
- 410,959 - 410,959
5 days (2017)
383,000,000 Ordinary shares outstanding for
- 383,000,000 - 383,000,000
365 days (2017)
413,000,000 ordinary shares outstanding for
413,000,000 - 413,000,000 -
365 days (2018)
40,000,000 ordinary shares outstanding for
876,712 - 876,712 -
8 days (2018)
413,876,712 383,410,959 413,876,712 383,410,959
45.00 Audit Committee

Audit Committee of Sonali Bank Limited has been constituted by the Board of Directors as per BRPD Circular No. 12
dated 23 December 2002 comprising the following members:
Status in Status with the
Sl. Name Educational qualification
the Bank committee
1 Mr. A.K.M Kamrul Islam FCA, FCS Director Chairman B.Com (Hons.), M.com (Accounting), FCA, FCS
2 Mr. Md. Mahboob Hossain Director Member M.Sc. (Botany)
3 Mrs. Sabera Aktari Jamal Director Member B.A (Hons.) , M.A (Economics)
4 Mr. Muhammed Asadullah Director Member B.A (Hons.) , M.A (Development Economics )
Mr. Ishtiaque Ahmed
5 Director Member M.A (Political science), LLB
Chowdhury
Duties and Responsibilities of the Audit Committee:
i) To Evaluate internal control and compliance, risk management, computerization and system of MIS of the bank
ii) To review annual financial statements of the bank and exchange views with external auditors and Bank management
in the regard.
iii) To consider if the recommendations made by internal & External Auditors are in order to develop internal control
strategy by the Bank Management.
310
iv)To review as to whether the rules and regulation made by controlling authorities like Bangladesh Bank and other
regulatory bodies are duly followed.
v) To appraise the Bank’s Board of Directors regarding Lapses and errors/ Frauds & Forgeries/ other irregularities de-
tected by internal auditors, external auditors & Bangladesh Bank inspection team and corrective measures taken for the
purpose of effective control.
During the year 2018 the Audit Committee has conducted 10 (ten) meetings in which, among others, the following
issues were discussed:
i) Comprehensive inspection reports of Bangladesh Bank including status of Compliance thereof.
ii) Inspection reports of branches/Head Office conducted by Bank's internal inspection team.
iii) Financial Statements of the Bank.
iv) Half yearly accounts of 2018 of the bank.
v) Status of compliance of different rules and regulations.

Annual financial statements have been discussed with the External Auditors in the Audit Committee meeting held on
29 April 2019.
46.00 Related Party Disclosures

Name of the Board of Directors and the entities in which they had interest as at 31 December 2018
Name of the firms/Companies in

Status
SL. which interested as proprietor, No. of
Name with the
No partner, director, managing Position Shares
Bank
agent, guarantor, employee etc.
1 Mr. Md. Ashraful Moqbul Chairman Nil Nil 1
2 Mr. Md. Fazlul Haque Director Nil Nil 1
3 Mr. Md. Mahboob Hossain Director Nil Nil 1
4 Mrs. Sabera Aktari Jamal Director Nil Nil 1
5 Mr. Muhammed Asadullah Director Nil Nil 1

Islam Aftab Karmrul & Co.
6 Mr. A K M Kamrul Islam FCA, FCS Director Partner 1
7 Dr. Md. Nurul Alam Talukder Director Nil Nil 1
8 Mr. Ishtiaque Ahmed Chowdhury Director Nil Nil 1
47.00 Related party/(ies) transaction
The bank generally carried out transactions in the ordinary course of its business at arm’s length at commercial rate as
per agreements with different related parties. The bank also renders services to the Government in various forms, which
are not quantified. However, as of the date of the financial statements the Bank had no transactions with the Director of
the Bank as a related party. During the year, the bank had some quantified transactions with the Government (Sponsor/
Share holder) as defined on BRPD Circular no14 issued by the Bangladesh Bank on 25 March 2003 are listed below:
Transaction
Status with the Related Outstanding
Name of the Related Party Related by Remarks
Party Balance
(Crore)
Concerned Department of Letter of

Government (Note-19.01) Sponsor/Share holder 254.53
the Government Guarantee
Concerned Department of Letter of

Government (Note-19.02) Sponsor/Share holder 108,075.75
the Government Credit

Transaction
Party Balance
(Crore)
Concerned Department of PSB/BSP

Jatio Shanchaya Bureau (Note-9.8) Sponsor/Share holder 755.04
the Government Encashment
Concerned Department of Pension

Government (Note-9.8.) Sponsor/Share holder 375.63
the Government bills(Army)
Pension
Concerned Department of
Government (Note: 9.8) Sponsor/Share holder 920.98 bills(Army)
the Government
New
Concerned Department of Pension
Government (Note: 9.8) Sponsor/Share holder 211.36
the Government bills(Civil)
Concerned Department of Non Funded

Power Development Board Sponsor/Share holder 7,940.79
the Government Loan

Bangladesh Petroleum Corp. Sponsor/Share holder 620.55
the Government Loan
Funded &
Bangladesh Agricultural Concerned Department of
Sponsor/Share holder 2,463.77 Non Funded
Development Corp. the Government
Loan
Concerned Department of Funded
Bangladesh Sugar & Food Ind. Corp Sponsor/Share holder 3,725.91
the Government Loan

Electric Generation Company Ltd. Sponsor/Share holder 560.35
the Government Loan
Funded &
Directorate of Food, Food Ministry Sponsor/Share holder 1,684.39 Non Funded
the Government
Loan
Department of Gas Transmission Concerned Department of Non Funded
Sponsor/Share holder 15.00
Company Limited (GTCL) the Government Loan
Department of fire service & Civil Concerned Department of Non Funded

Defense the Government Loan
Department of Disaster Concerned Department of Non Funded

Management & Relief the Government Loan
Bangladesh Textile Mills Concerned Department of Funded

Corporation (BTMC) the Government Loan

Bangladesh Betar Sponsor/Share holder 3.98
the Government Loan

National Board of Revenue (NBR) Sponsor/Share holder 76.09
the Government Loan
Bangladesh Petroleum Exploration Concerned Department of Non Funded

& Production Co. Ltd. the Government Loan

Eastern Refinery Limited Sponsor/Share holder 251.19
the Government Loan
Trading Corporation of Bangladesh Sponsor/Share holder 31.36 Funded loan
the Government
Funded &
Bangladesh Biman Sponsor/Share holder 479.02 Non Funded
the Government
Loan
Dhaka Wasa Sponsor/Share holder 15.33
the Government Loan
312
Transaction
Party Balance
(Crore)

Chattogram Port Authority Sponsor/Share holder 342.59
the Government Loan
Bangladesh Standard Control & Concerned Department of Non Funded

Testing Institute(BSTI) the Government Loan

Dhaka Unversity Sponsor/Share holder 66.58
the Government Loan
Funded &
Palli Daridro Bimochon Foundation Concerned Department of
Sponsor/Share holder 0.31 Non Funded
(PDBF) the Government
Loan
Essential Drug Co. Ltd. Sponsor/Share holder 12.34
the Government Loan

Milk Vita Sponsor/Share holder 10.96
the Government Loan

Bangladesh Bank Sponsor/Share holder 37.56
the Government Loan
Bangladesh Telecommunication Concerned Department of Non Funded

Co.Ltd.(BTCL) the Government Loan

TSP Complex Ltd. Sponsor/Share holder 0.82
the Government Loan

Bangladesh Cable Shilpa Ltd. Sponsor/Share holder 8.25
the Government Loan

Bangladesh Police Sponsor/Share holder 26.33
the Government Loan
Central Medical storage DEPO Concerned Department of Non Funded

(CMSD) the Government Loan

Bangladesh Air Force Sponsor/Share holder 722.3
the Government Loan

Karmasangsthan Bank Sponsor/Share holder 200
the Government Loan

Bangladesh Ordinance Factory Sponsor/Share holder 22.55
the Government Loan

Bangladesh Navy Sponsor/Share holder 361.20
the Government Loan

Bangladesh Coast Guard Sponsor/Share holder 460.60
the Government Loan
Bangladesh Atomic Energy Concerned Department of Non Funded

Sponsor/Share holder 85,893.32
Commission the Government Loan
Funded &
Bangladesh Chemical Industries Concerned Department of
Sponsor/Share holder 2,871.94 Non Funded
Crop. the Government
Loan
Bangladesh Railway Sponsor/Share holder 1,133.19
the Government Loan
Funded &
Bangladesh Water Dev. Board Sponsor/Share holder 573.45 Non Funded
the Government
Loan

Transaction
Party Balance
(Crore)
All Directorates & Department
(Directorate General of Defense Sponsor/Share holder 1,001.44
the Government Loan
Purchase)
Bangladesh Election Commission Sponsor/Share holder 291.34
the Government Loan

Bangladesh Jute Mills Corporation Sponsor/Share holder 143.55
the Government Loan

Rural Electrification Board Sponsor/Share holder 1,151.48
the Government Loan

Department of Environment Sponsor/Share holder 19.57
the Government Loan

B-R Powergen Limited Sponsor/Share holder 787.34
the Government Loan

Dhaka South City Corporation Sponsor/Share holder 0.80
the Government Loan
Bangladesh Road Transport Concerned Department of Non Funded

Corporation (BRTC) the Government Loan
National Telecommunication Concerned Department of Non Funded

Monetoring Center the Government Loan

Latif Buwany Jute Mills Ltd. Sponsor/Share holder 0.93
the Government Loan
Sher-e-Bangla Agricultural Concerned Department of Funded

University the Government Loan
Sonali Exchange Co. N.Y. (note 9.1) The Bank Subsidiary Company 7.97 Investment
Sonali Exchange Co. N.Y. (note 9.1) The Bank Subsidiary Company 8.25 Loan
Sonali Investment LTD. (note 9.1) The Bank Subsidiary Company 200.00 Investment
Sonali Bank (U.K.) Ltd (note 6.2) The Bank Associate 310.43 Investment
48.00 Event after the Balance Sheet date

No circumstances have arisen since the Balance Sheet date, which would require any adjustments or disclosure to be
made in the Financial Statements.
314
Annexure -A
1. Balance with Bangladesh Bank and its agent bank(s) AS on 31 December 2018
a) Local Currency
Amount in Taka
Sl. No. Particulars As per Bangladesh
As per Sonali Bank
Bank
1 Head Office 61,473,757,859 6,120,566,619
2 Local Office 20,015,128,527 13,234,011,648
3 Barishal Corporate Branch 842,870,410 253,923,365
4 Bogura Corporate Branch 2,134,034 32,578,965
5 Laldighi Corporate Branch 40,552,076 49,619,231
6 Khulna Corporate Branch 226,113,718 226,119,150
7 Rangpur Corporate Branch 164,458,856 297,942,365
8 Rajshahi Corporate Branch 201,317,753 261,209,373
9 Sylhet Corporate Branch 107,918,447 44,196,610
Total 83,074,251,681 20,520,167,326
b) Foreign Currency
Amount in Taka
Sl. No. Particulars As per Bangladesh
As per Sonali Bank
Bank
1 USD 9,989,708,798 281,753,124
2 GBP 12,227,993 12,635,391
3 EURO 33,843,285 4,579,822
4 J. YEN 1,089,550 1,073,786
Total 10,036,869,626 300,042,123
Difference appeared in between the balance as per Bangladesh Bank and Sonali Bank Ltd. due to reconciliation gap.
2.00 Investment in Government securities classified as per Bangladesh Bank's DOS circular No. 05 date 26 May 2008 and
DOS circular No. 05 date 28 January 2009.
Amount in Taka
2018 2017
a) Held to Maturity (HTM)
Bond / Other securities
2 years BGTB 2,000,360,409 4,000,723,282
5 years BGTB 46,777,624,055 40,332,973,240
10 years BGTB 57,732,314,589 56,240,333,640
15years BGTB 29,240,719,158 28,362,478,871
20 years BGTB 25,864,901,962 23,421,856,950
BJMC 5,354,200,000 5,354,200,000
25 years 42,387,500 144,140,000
BPC 46,364,700,000 46,364,700,000
3 years Treasury Bond 332,037,000 -
Public Debenture 5,147,900 5,147,900
Sub Total 213,714,392,573 204,226,553,883
Total 213,714,392,573 204,226,553,883
b) Held For Trading (HFT)

Treasury Bill
91 days Treasury Bill 6,478,844,609 13,690,851,063

Sub Total 11,388,994,623 20,776,317,173
Bond / Other securities
2 years BGTB 14,033,125,060 16,351,139,941

5 years BGTB 62,109,022,494 52,598,496,101
10 years BGTB 44,733,128,175 39,188,106,781
15years BGTB 15,516,658,461 7,696,309,848
20 years BGTB 14,769,540,485 9,460,153,090
Bangladesh Bank Bill - 69,458,108,000
Public Share-ICB 913,424,500 913,424,500
Sub Total 152,074,899,175 195,665,738,261
Total 163,463,893,798 216,442,055,434

316
Annexure -B
Sonali Bank Limited
Consolidated Schedule of Fixed Assets
Cost/Revaluation Depreciation
Deposals/ Foreign Deposals/ Foreign Net book
Addition Balance Charge Balance value as on
Balance as on adjustments currency Balance as on adjustments currency
Particulars during the Rate as on during the as on 31.12.2018
01.01.2018 during the translation 31.12.2018 during the translation
year 01.01.2018 year 31.12.2018
year gain/(loss) year gain/(loss)
Taka Taka Taka Taka % Taka Taka Taka Taka
A) Premises (Including Land & Building):

Premises 31,435,487,436 17,199,164 - - 31,452,686,600 2.50 343,280,720 1,620,929 34,845,756 - 376,505,547 31,076,181,053
Building Construction 707,762,085 42,128,814 12,861,248 - 737,029,651 - - - - - - 737,029,651
Sub total 32,143,249,521 59,327,978 12,861,248 - 32,189,716,251 343,280,720 1,620,929 34,845,756 - 376,505,547 31,813,210,704
B) Dead Stock:
Furniture 1,040,132,749 54,247,560 9,943,695 602,852 1,085,039,466 10.00 581,755,780 8,914,297 73,373,470 - 646,214,953 438,824,513
Electric Installation 913,513,444 109,940,455 13,738,627 3,146,937 1,012,862,209 20.00 646,651,026 (26,160,275) 79,733,715 670,558 751,874,458 260,987,752
Computer Hardware 1,900,433,473 144,348,393 14,345,002 - 2,030,436,864 20.00 1,386,831,138 34,142,072 190,772,544 - 1,543,461,610 486,975,254
Computer Software 222,038,112 76,460,960 512,324 - 297,986,748 20.00 112,233,569 1,568,734 66,808,772 - 177,473,607 120,513,141
Type Writer Machine 5,692,692 - 42,530 - 5,650,162 20.00 5,388,562 43,539 30,467 - 5,375,490 274,672
Motor Car & Other 311,685,159 145,773,958 3,499,417 - 453,959,700 20.00 163,382,006 15,984,571 61,075,061 - 208,472,496 245,487,204
Vehicle
Library 10,139,270 1,109,740 - - 11,249,010 7.00 3,724,047 813 610,129 - 4,333,363 6,915,647
Sub total 4,403,634,899 531,881,066 42,081,595 3,749,789 4,897,184,159 2,899,966,128 34,493,751 472,404,158 670,558 3,337,876,535 1,559,978,182
Total (A+B) 36,546,884,420 591,209,045 54,942,843 3,749,789 37,086,900,410 3,243,246,848 36,114,680 507,249,914 670,558 3,713,711,524 33,373,188,886
C) Dead Stock of overseas Branches:
Kolkata Branch 15,157,918 2,244,001 481,212 - 16,920,707 8,671,356 - 1,886,213 - 10,557,569 6,363,138
Siliguri Branch 769,058 204,412 24,451 - 949,019 439,456 - 48,128 - 487,584 461,435
Sub total 15,926,977 2,448,413 505,663 - 17,869,727 9,110,812 - 1,934,341 - 11,045,153 6,824,574
Grand Total 2018 36,562,811,397 593,657,458 59,198,295 3,749,789 37,104,770,137 3,252,357,660 36,114,680 509,184,255 670,558 3,724,756,677 33,380,013,463
(A+B+C)
31 December 2017 36,026,120,916 610,229,713 73,539,231 - 36,562,811,397 2,907,099,852 100,452,100 445,109,909 - 3,251,757,660 33,311,053,737
Annexure -C
Sonali Bank Limited
Schedule of Fixed Assets
Cost/Revaluation Depreciation
Disposals/ Disposals/ Net book
Balance Addition Balance Rate Balance Charge Balance value as on
adjustments adjustments
Particulars as on during the as on of as on during the as on 31.12.2018
during the during the
01.01.2018 year 31.12.2018 % 01.01.2018 year 31.12.2018
year year
Taka Taka Taka Taka Taka Taka Taka Taka Taka
A) Premises (Including Land & Building):
Premises 31,435,487,436 17,199,164 - 31,452,686,600 2.50 343,280,720 1,620,929 34,845,756 376,505,547 31,076,181,053
Building Construction 707,762,085 42,128,815 12,861,248 737,029,652 - - - - - 737,029,652
Sub total 32,143,249,521 59,327,979 12,861,248 343,280,720 1,620,929 34,845,756 376,505,547 31,813,210,705
32,189,716,252
B) Dead Stock:
Furniture 1,026,894,266 54,187,782 9,522,345 1,071,559,703 10 568,760,470 8,248,781 72,987,091 633,498,780 438,060,923
Electric Installation 855,292,017 108,656,685 8,923,432 955,025,270 20 629,842,429 12,615,521 78,851,251 696,078,159 258,947,111
Computer Hardware 1,894,966,602 144,282,368 14,345,002 2,024,903,968 20 1,356,683,171 8,728,047 190,556,541 1,538,511,665 486,392,303
Computer Software 219,120,512 76,460,960 512,324 295,069,148 20 109,176,571 1,359,336 66,788,772 174,606,007 120,463,141
Type Writer Machine 5,692,692 - 42,530 5,650,162 20 5,388,562 43,539 30,467 5,375,490 274,672
Motor Car & Other Vehicle 306,510,069 145,773,958 3,324,327 448,959,700 20 145,077,823 2,680,387 61,075,061 203,472,497 245,487,203
Library 10,139,270 1,109,740 - 11,249,010 7 3,724,046 813 610,129 4,333,362 6,915,648
Sub total 4,318,615,428 530,471,493 36,669,960 4,812,416,961 2,818,653,072 33,676,424 470,899,312 3,255,875,960 1,556,541,002
Total (A+B) 36,461,864,949 589,799,472 49,531,208 37,002,133,213 3,161,933,792 35,297,353 505,745,068 3,632,381,507 33,369,751,707
C) Dead Stock of overseas Branches:
Kolkata Branch 15,157,918 2,244,001 481,212 16,920,707 8,671,356 1,886,213 10,557,569 6,363,138
Siliguri Branch 769,058 204,412 24,451 949,019 439,456 48,128 487,584 461,435
Sub total 15,926,976 2,448,413 505,663 17,869,726 9,110,812 - 1,934,341 11,045,153 6,824,573
Grand Total 2018(A+B+C) 36,477,791,925 592,247,885 50,036,871 37,020,002,939 3,171,044,604 35,297,353 507,679,409 3,643,426,660 33,376,576,280
31 December 2017 35,941,318,648 610,012,508 73,539,231 36,477,791,925 2,827,356,844 99,852,100 443,539,861 3,171,044,604 33,306,747,321
Annual Report 2018

317
Sonali Bank Limited Annexure -D

Schedule of Tax Position
Tax assessment of Sonali Bank Ltd. has been completed upto assessment year 2002-2003 (Income year upto 2001) resulting tax
refund of Tk. 4,263,048,032 in favour of the Bank. As regards latest status of the tax assessments for the income years 2013 and
2014 these are not yet finalised by the tax department. The Bank has submitted Income Tax Returns showing profit/(loss) of Tk.
784,570,872, Tk. (4,601,723,014) for the income year 2015 and 2016 i.e. assessment years 2016-2017 & 2017 - 2018 respectively.
The loss shown by bank is inclusive of claim of Bad Debts written off and others. In the income years 1996, 1997, 1998, 2000,
2001,2004, 2005, 2006, 2007, 2008, 2009, 2010 & 2011 the tax department did not accept the claim of Bad Debt written off,
Provision for Ex-gratia, Provision for NOSTRO A/C., Provision for other Assets, Interest on securities etc. against which the bank
has filed appeal to the Honorable High Court.
Tax
Income Assessment Provision Assessment Assessed Tax Payment of Refundable/
Present Status Remarks
Year Year as per made by Liabilities Advance Tax (Payable)
Account
Reference Application
1998 1999-2000 Nil DCT Nil 442,119,323 424,971,176 Refundable
to the High Court
1999 2000-2001 Nil DCT Settled Nil 600,818,273 600,818,273 Refundable
Adjusted as
2000 2001-2002 Nil DCT Nil 870,418,795 - Demanded
to the High Court
Tax
2001 2002-2003 Nil DCT Nil 1,135,489,757 1,135,489,757 Refundable
to the High Court
2002 2003-2004 Nil DCT 898,521,314 712,587,221 185,934,093 Payable
to the High Court
2003 2004-2005 Nil DCT 2,414,610,301 588,000,560 2,071,201,174 Payable
to the High Court
2004 2005-2006 Nil DCT Nil 518,028,392 27,46,73,831 Refundable
to the High Court
2005 2006-2007 Nil DCT 378,072,785 438,169,963 60,097,178 Refundable
to the High Court
2006 2007-2008 Nil DCT 1,703,473,454 538,154,625 (1,266,536,541) Payable
to the High Court
2007 2008-2009 Nil DCT 2,010,803,744 1,218,137,968 (75,27,63,573) Payable
to the High Court
2008 2009-2010 Nil DCT 2,167,491,869 889,421,612 Payable
to the High Court. (132,53,29,527)
2009 2010-2011 Nil DCT 3,704,472,179 63,51,59,113 (254,00,43,944) Payable
to the High Court.
2010 2011-2012 Nil DCT 4,116,848,042 1,118,523,981 Payable
to the High Court. (339,21,46,471)
2011 2012-2013 Nil DCT (5,083,262,792) Payable
to the High Court. 5,836,848,604 1,368,957,252
2012 2013-2014 Nil DCT 3,306,474,128 1,459,284,890 Payable
to the High Court (2,070,846,597)
Reference Application Not yet
2013 2014-2015 Nil DCT 1,524,975,830 (2,869,107,823)
to the High Court 4,030,826,003 assessed
Not yet
2014 2015-2016 Nil DCT Appeal to CT (Appeal) 2,688,870,549
4,109,309,300 (1,578,490,789) assessed
Not yet Not Yet Not yet
2015 2016-2017 Nil DCT Not yet assessed 3,152,827,934
assessed assessed assessed
318
Sonali Bank Limited Annexure -E

Statement of Non-Income Generating Other Assets
2018 2017
A) DOMESTIC BRANCHES
Taka Taka
Stamps in hand 10,742,798 12,264,246

Stationery in hand 114,323,043 155,293,242
Advance Rent 104,455,121 114,228,720
Interest Receivable 16,374,899,724 13,525,308,858
Commission Receivable 2,929,025,244 2,954,223,249
Rent - 9,647,720
Taxes - 348,300
Law charges - 39,634
Postage and Telegram - 28,665
Sundries 5,724,621 73,121,105
Branch Adjustment 12,140,960,320 27,223,749,393
Suspense A/C 293,962,839 1,505,233,611
Income Tax Deducted at source 19,700,996,566 18,007,703,010
Drafts Payable account (Ex-Advice) 68,907,213 93,481,526
Govt. Drafts Payable Account (Ex-Advice) 2,225,330 20,789,387
Deferred Tax assets 30,689,808,423 34,225,080,443
Demand Drafts purchased 657,691,925 808,760,014
Protested Bills 293,639,588 287,705,079
BRDBUCCA Crop Loans Int. & Panel int. Exemption-2007 511,283,719 511,283,719
Branch Reconstruction A/C 50,195 50,195
Pension Bill Purchased(Army) 3,756,294,543 4,212,373,790
Pension Bill Purchased(Civil) 2,113,632,415 2,272,113,182
Army Pension Bill Purchases A/C New 9,209,752,866 7,932,615,253
PSP/BSP Encashment 7,550,359,876 5,646,406,559
Loan Exemption Under J.S Reform Proj.94-95 5,094,543,083 5,094,543,083
NRT A/C Dr. Balance 447,447,649 447,417,149
Advance Payment of Income Tax 6,526,323,815 5,826,323,815
Adjusted Account Debit balance 841,157,809 746,802,176
Wage Earners' Fund Purchased Adjustment A/C. 2,058,416,709 3,662,869,935
Agri- Exemption A/C Affected By River Erosion 99,557,837 98,760,600
Preliminery Expenses - HR Recruitment A/C 11,487,463 -
ATM Settlement Account Debit Balance 56,433,070 -
SECI Settlement Account Debit Balance 241,545,685 -
Clearing Settlement Account Debit Balance 13,317,859 -
Wage Earners' Bond Encashment A/C. 694,757,576 -
Frozen Fish Loan Exemption - 101,773,510
Total 122,613,724,923 135,570,339,169

Sonali Bank Limited, Head Office, Dhaka Annexure-F

Treasury Management Division, LCMD
Investment in Shares (Quoted) as on 31 December 2018
COST TOTAL MARKET TOTAL

PARTICULARS NO. OF
VALUE COST PRICE PER MARKET
OF INVESTMENT SHARE
PER SHARE VALUE SHARE VALUE
1 2 3.00 4=(2*3) 5.00 6=(2*5)
Bank & NBFI
1JANATAMF 1,358,288 8.08 10,979,961 4.40 5,976,467
1STPRIMFMF 207,000 38.83 8,037,293 10.80 2,235,600
ABBANK 2,678,711 57.66 154,462,377.56 12.00 32,144,532
ALARABANK 3,150,000 26.50 83,487,831.17 19.90 62,685,000
BANKASIA 3,213,297 20.94 67,290,549.52 17.70 56,875,357
BAYLEASING 574,963 113.96 65,523,266.24 20.50 11,786,742
ICBSONALI1 25,000,000 10.00 250,000,000 7.00 175,000,000
DBHISTMF 782,000 15.29 11,957,187 8.10 6,334,200
DHAKABANK 2,709,088 25.77 69,817,315.48 14.20 38,469,050
DUTCHBANGL 300,000 150.15 45,043,686.86 144.40 43,320,000
EBL 15,000,000 11.54 173,025,422.95 36.00 540,000,000
EBL1STMF 1,670,461 16.22 27,086,734 7.60 12,695,504
EXIMBANK 5,000,000 19.88 99,405,779.78 11.80 59,000,000
FIRSTSBANK 4,400,000 17.33 76,267,855.70 10.90 47,960,000
ICB3RDNRB 800,000 10.86 8,685,891 5.40 4,320,000
ICBEPMF1S1 1,000,000 14.64 14,643,199 5.40 5,400,000
ICBIBANK 5,418,100 10.00 54,181,000.00 4.80 26,006,880
IDLC 834,000 83.76 69,851,877.00 69.70 58,129,800
IFIC 2,464,000 21.59 53,193,562.37 10.90 26,857,600
IFICISTMF 1,108,186 9.98 11,058,937 4.20 4,654,381
IFILISLMFI 2,600,000 8.13 21,131,433 6.80 17,680,000
JAMUNABANK 1,744,600 20.30 35,411,275.57 17.60 30,704,960
MERCANBANK 5,040,000 25.80 130,036,654.68 18.00 90,720,000
NBL 5,604,135 26.95 151,026,160.59 9.30 52,118,456
NCCBANK 4,520,000 27.48 124,225,638.61 15.90 71,868,000
ONEBANKLTD 6,300,000 25.12 158,270,251.15 15.00 94,500,000
PFISTMF 1,400,000 7.89 11,039,650 5.30 7,420,000
PREMIERBAN 4,945,000 16.00 79,126,311.57 11.70 57,856,500
PRIME1ICBA 1,400,000 8.18 11,452,240 6.20 8,680,000
PRIMEBANK 3,400,000 24.22 82,345,982.24 18.10 61,540,000
SHAHJABANK 4,390,925 31.50 138,332,842.67 27.60 121,189,530
SOUTHEASTB 4,441,492 34.67 153,985,994.73 15.60 69,287,275
STANDBANKL 2,822,967 19.64 55,454,254.29 10.90 30,770,340
TRUSTB1MF 960,089 10.59 10,171,230 4.40 4,224,392
UCBL 5,000,000 23.88 119,376,791.76 17.60 88,000,000
UNITEDFIN 323,964 53.34 17,280,599 17.80 5,766,559
LankaBangla 4,100,000 31.71 130,020,715.00 22.90 93,890,000
UTTARABANK 2,900,000 45.89 133,086,789.20 28.50 82,650,000
UTTARAFIN 565,931 143.23 81,059,101.53 65.40 37,011,887
POPULAR1MF 1,495,442 6.69 10,000,000 4.20 6,280,856
AIBL1STMF 1,500,000 8.87 13,299,581 8.10 12,150,000
ATCSLGF 100,000 10.92 1,092,180 9.50 950,000
BRACBANK 400,000 70.24 28,096,543 72.70 29,080,000
CITYBANK 3,150,000 40.26 126,819,667 30.20 95,130,000
320

PARTICULARS NO. OF
OF INVESTMENT SHARE
1 2 3.00 4=(2*3) 5.00 6=(2*5)
GSPFINANCE 300,000 21.25 6,373,687 20.40 6,120,000
HEIDELBCEM 255,000 385.30 98,250,308 334.70 85,348,500
ICBAGRANI1 500,000 7.45 3,725,971 6.90 3,450,000
ICBAMCL2ND 250,000 7.18 1,794,882 6.40 1,600,000
ISLAMIBANK 2,000,000 28.39 56,780,325 24.20 48,400,000
NLI1STMF 2,000,000 14.75 29,497,878 13.00 26,000,000
SIBL 900,000 20.76 18,680,852 15.40 13,860,000
SEBL1STMF 1,000,000 13.78 13,782,846 12.20 12,200,000
TRUSTBANK 28,000 30.53 854,770 32.50 910,000
Sub-Total 154,005,639 3,405,883,131 2,587,208,368
Insurance
GREENDELMF 524,500 12.34 6,474,764 7.50 3,933,750
KARNAPHULI 588,915 83.75 49,320,570.97 15.80 9,304,857
PEOPLESINS 99,655 93.41 9,308,418.78 17.50 1,743,963
Sub-Total 1,213,070 65,103,753 14,982,570
Fuel and Power

DESCO 1,668,720 104.59 174,530,641.36 40.40 67,416,288
JAMUNAOIL 377,500 193.93 73,208,344.64 190.50 71,913,750
NATOXG 1,305 100.00 130,500.00 100.00 130,500
PADMAOIL 245,200 265.55 65,111,767.61 225.20 55,219,040
TITASGAS 2,000,000 41.36 82,717,932.45 36.40 72,800,000
MJLBD 945,000 100.32 94,802,395.24 99.20 93,744,000
NAVANACNG 486,558 146.49 71,277,049.16 47.60 23,160,161
POWERGRID 800,000 64.16 51,327,327.10 48.00 38,400,000
SAIFPOWER 2,000,000 29.31 58,628,477.41 21.00 42,000,000
SUMITPOWER 880,478 57.66 50,769,296.09 39.40 34,690,833
DOREENPWR 84,000 101.78 8,549,229.29 79.90 6,711,600
Sub Total 9,488,761 731,052,960 506,186,172
Manufacture & other

AFTABAUTO 2,067,436 72.55 150,000,000.00 45.90 94,895,312
APEXWEAV 51,200 10.00 512,000.00 10.00 512,000
ASHRAFTEX 364,582 10.00 3,645,820.00 10.00 3,645,820
AZADIPRINT 756 100.00 75,600.00 100.00 75,600
BCIL 2,960 100.00 296,000.00 100.00 296,000
BDCOM 1,200,000 31.55 39,747,445.57 28.70 34,440,000
BEXIMCO 1,821,721 78.37 142,764,036.28 23.50 42,810,444
DULAMIACOT 16,000 10.00 160,000.00 32.40 534,400
FBFIF 77,614,699 6.82 500,000,000.00 4.30 333,743,206
GRAMEENS2 332,692 20.13 6,696,056.78 11.90 3,959,035
LINDEBD 20,200 1,380.59 27,887,952 1,198.40 24,207,680
LR GLOBAL 5,184,672 9.64 50,000,000.00 6.90 35,774,237
MARICO 10,000 1,262.39 12,623,944 1,200.20 12,002,000
ATLASBANG 600,000 135.85 89,661,992 121.90 73,140,000
BENGALWTL 900,000 35.16 31,641,030.39 29.30 26,370,000
BGIC 513,476 69.70 35,788,825.00 20.00 10,269,520
BSCCL 400,000 101.94 40,777,806.40 93.50 37,400,000


PARTICULARS NO. OF
OF INVESTMENT SHARE
1 2 3.00 4=(2*3) 5.00 6=(2*5)
OIMEX 600,000 62.41 37,447,904 37.60 22,560,000
SPCL 1,000,000 103.03 103,026,610 94.80 94,800,000
SQUARETEXT 770,100 59.33 45,690,695.59 47.10 36,271,710
SQUAREPHARMA 1,000,000 291.70 291,703,561 254.20 254,200,000
BSRMSTEEL 1,320,000 67.58 89,205,403.40 59.90 79,068,000
BXPHARMA 1,000,000 94.10 94,101,013.87 79.10 79,100,000
FORTUNE 800,000 32.48 29,879,153.73 31.00 24,800,000
NILOYCEM 98 100.00 9,800 100.00 9,800
OLYMPIC 245,000 239.76 58,740,463.50 216.20 52,969,000
PHPMF1 422,133 7.21 3,042,637.76 4.40 1,857,385
RAKCERAMIC 1,650,000 68.74 113,414,506.82 39.00 64,350,000
ROSEHEAV 4,327 15.00 64,905.00 15.00 64,905
SAPORTL 409,285 106.80 43,709,670 25.30 10,354,911
ACI 370,562 396.83 147,050,013.00 326.20 120,877,324
ACIFORMULA 100,000 161.14 16,114,231.74 153.80 15,380,000
ALIF 2,660,000 11.88 31,596,065.10 9.10 24,206,000
AMCL(PRAN) 116,000 234.15 27,161,499 240.60 27,909,600
APOLOISPAT 2,200,000 11.91 26,192,709.76 8.20 18,040,000
ARGODENIM 73,000 27.03 1,972,984.09 26.30 1,919,900
BBS 1,700,000 33.04 56,164,181.24 28.00 47,600,000
BSC 800,000 42.02 33,617,647.99 39.00 31,200,000
BSRMLTD 1,100,000 90.94 78.20 86,020,000

100,033,288.94
ENVOYTEX 383,000 35.29 13,517,052.55 36.30 13,902,900
FARCHEM 400,000 15.36 6,142,554.19 15.30 6,120,000
FUWANGCER 400,000 13.38 5,353,187.00 13.20 5,280,000
GENNEXT 4,290,000 7.31 31,342,560.00 6.30 27,027,000
GHAIL 1,100,000 33.51 36,863,459.56 29.30 32,230,000
GP 140,000 377.51 52,851,105.33 367.30 51,422,000
GPHISPAT 1,050,000 38.24 40,152,192.40 35.00 36,750,000
IFADAUTOS 600,000 127.43 76,457,165.61 108.40 65,040,000
KEYACOSMET 1,000,000 9.89 9,891,413.14 6.60 6,600,000
LHBL 1,002,000 52.79 52,893,412.37 43.50 43,587,000
MICEMENT 60,000 77.12 4,627,122.67 69.40 4,164,000
NFML 1,000,000 14.82 14,819,967.37 11.10 11,100,000
PREMIERCEM 47,000 75.13 3,531,061.83 71.70 3,369,900
SALAMCRST 600,000 31.37 18,822,834.33 28.20 16,920,000
ORIONPHARMA 600,000 40.26 24,157,702.07 36.80 22,080,000
SHASHADNIM 350,000 66.50 23,274,792.67 60.50 21,175,000
UNIQUEHRL 500,000 56.19 28,093,810.77 52.80 26,400,000
WMSHIPYARD 531,600 22.78 12,107,777.57 19.90 10,578,840
Sub Total 123,494,499 2,937,116,624 2,231,380,428
Total Quoted 288,201,969 7,139,156,470 5,339,757,537
322

PARTICULARS NO. OF
OF INVESTMENT SHARE
1 2 3.00 4=(2*3) 5.00 6=(2*5)
Investment in Shares (Unquoted)
Bank and NBFI
Grameen Bank 30,000 100.00 3,000,000 100.00 3,000,000
IIDFC 8,794,932 3.38 29,683,820 3.38 29,683,820
Karmasangthan Bank 2,600,000 100.00 260,000,000 100.00 260,000,000
Pubali bank (former) 51,022 10.00 510,220 10.00 510,220
Farmers Bank 165,000,000 10.00 1,650,000,000 10.00 1,650,000,000
Sub Total 176,475,954 1,943,194,040 1,943,194,040
Manufacturing
Allied Pharma Ltd. 1,000,000 10.00 10,000,000 10.00 10,000,000
S. Jute Yarn & Twine 33,790 10.00 337,900 10.00 337,900
Sub Total 1,033,790 10,337,900 10,337,900
Other
Bangladesh Fund 21,300,000 100.00 2,130,000,000 100.00 2,130,000,000
BCB 1,125,000 100.00 112,500,000 100.00 112,500,000
CDBL 8,968,456 14.55 130,485,900 14.55 130,485,900
Orion Infrastructures 300,000,000 10.00 3,000,000,000 10.00 3,000,000,000
Paper Convert & Pack 5,000 100.00 500,000 100.00 500,000
Sub Total 331,398,456 5,373,485,900 5,373,485,900
Total Unquoted 508,908,200 7,327,017,840 7,327,017,840
Quoted+Unquoted 797,110,169 14,466,174,310 12,666,775,377
Required provision
Provision required on quoted share other than mutual fund 1,460,267,395
Provision required on quoted mutual fund 119,269,038
Total required provision 1,579,536,433

Sonali Bank Limited Annexure -G

Highlights on the overall activities
For the year ended 31 December 2018
SL.
2018 2017
No. Particulars
Taka Taka
1 Authorized Capital 60,000,000,000 60,000,000,000
2 Paid-up Capital 45,300,000,000 41,300,000,000
3 Total Capital (as per Capital Adequacy) 53,616,765,503 47,683,784,914
4 Capital surplus/(deficit) 528,905,503 1,607,494,914
5 Capital Adequacy Ratio 10.10% 10.35%
6 Statutory Reserve 11,449,953,229 10,199,682,013
7 Total Assets 1,306,842,319,895 1,256,711,617,362
8 Total Deposits 1,093,866,187,769 1,064,311,082,539
9 Total Investment 444,051,600,766 462,576,616,876
10 Total Contingent Liabilities and Commitments 1,097,371,824,981 1,148,178,041,205
11 Advance Deposit Ratio 42.43% 39.76%
12 Credit Deposit Ratio 83.02% 83.23%
13 Total Import 257,020,000,000 1,155,300,900,000
14 Total Export 32,502,600,000 28,494,600,000
15 Operating Profit 20,257,376,528 11,954,902,089
16 Profit after tax and provision 2,264,214,113 7,091,660,386
17 Total Loans and Advances 464,083,319,377 423,218,353,943
18 Amount of classified loans 121,883,400,000 149,302,400,000
19 Percentage of classified loans and advances 26.26% 35.28%
20 Provisions kept against classified loans 44,045,938,329 38,864,286,982
21 Provision surplus/(deficit) - 618,500,000
22 Cost of fund 5.38% 5.95%
23 Income from investment 34,341,089,380 33,955,798,770
24 Interest earning Assets 930,840,579,494 850,536,143,109
25 Non-interest earning Assets 376,001,740,401 406,175,474,253
26 Return on investment (ROI) 7.58% 7.29%
27 Return on Asset (ROA) 0.18% 0.58%
28 Return on Equity (ROE) 3.32% 10.63%
29 Earnings per Share (EPS) 5.47 18.50
30 Net assets value per share (NAVPS) 154.83 160.02
31 Price Earning Ratio N/A N/A
32 Net Operating Income per Share 48.95 31.18
324 Annual Report 2018 324

Auditor’s Report
and Financial
Statements of
Sonali Investment
Limited
for the year ended
31 December 2018


To the Shareholders of Sonali Investment Limited
Report on the Financial Statements In connection with our audit of the financial statements,
our responsibility is to read the other information identified
Opinion
above when it becomes available and, in doing so, consider
We have audited the accompanying financial statements whether the other information is materially inconsistent
of Sonali Investment Limited, which comprise the with the financial statements or our knowledge obtained in
statement of financial position as at 31 December 2018 the audit or otherwise appears to be misstated materially.
and the statement of comprehensive income, statement
Responsibilities of Management and those Charged with
of changes in equity and statement of cash flows for the
Governance for the Financial Statements and Internal
year then ended, and notes to the financial statements,
Controls
including a summary of significant accounting policies.
Management is responsible for the preparation and fair
In our opinion, the accompanying financial statements
presentation of the financial statements of the Company
of the Company give a true and fair view of the financial
in accordance with IFRSs as explained in note 2 & 3, and
position of the company as at 31 December 2018 and its
for such internal control as management determines is
financial performance & its cash flows for the year then
necessary to enable the preparation of financial statements
ended in accordance with International Financial Reporting
that are free from material misstatement, whether due to
Standards (IFRSs).
fraud or error.
Basis for Opinion
In preparing the financial statements, management is
We conducted our audit in accordance with International responsible for assessing the Company’s ability to continue
Standards on Auditing (ISAs). Our responsibilities under as a going concern, disclosing, as applicable, matters
those standards are further described in the Auditor’s related to going concern and using the going concern
Responsibilities for the audit of the financial statements basis of accounting unless management either intends to
section of our report. We are independent of the Company liquidate the Company or to cease operations, or has no
in accordance with the International Ethics Standards realistic alternative but to do so.
Board for Accountants’ Code of Ethics for Professional
Those charged with governance are responsible for
Accountants (IESBA Code), Bangladesh Securities and
overseeing the Company’s financial reporting process.
Exchange Commission (BSEC) and Bangladesh Bank,
and we have fulfilled our other ethical responsibilities Auditor’s Responsibilities for the Audit of the Financial
in accordance with the IESBA Code and the Institute of Statements
Chartered Accountants of Bangladesh (ICAB) Bye Laws.
Our objectives are to obtain reasonable assurance about
We believe that the audit evidence we have obtained is
whether the financial statements as a whole are free from
sufficient and appropriate to provide a basis for our opinion.
material misstatement, whether due to fraud or error,
Key Audit Matters and to issue an Audit report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
Key audit matters are those matters that, in our professional
not a guarantee that an audit conducted in accordance
judgment, were of most significance in our audit of the
with ISAs will always detect a material misstatement when
financial statements of the current period. These matters
it exists. Misstatements can arise from fraud or error and
were addressed in the context of our audit of the financial
are considered material if, individually or in the aggregate,
statements as a whole, and in forming our opinion
they could reasonably be expected to influence the
thereon, and we do not provide a separate opinion on
economic decisions of users taken on the basis of these
these matters.
financial statements.
Other Information
As part of an audit in accordance with ISAs, we exercise
Management is responsible for the other information. The professional judgment and maintain professional
other information comprises all of the information in the skepticism throughout the audit. We also:
Annual Report other than the financial statements and our
• Identify and assess the risks of material
Audit report thereon. The Annual Report is expected to be
misstatement of the financial statements, whether
made available to us after the date of the Audit report.
due to fraud or error, design and perform audit
Our opinion on the financial statements does not cover procedures responsive to those risks, and obtain
the other information and we do not express any form of audit evidence that is sufficient and appropriate
assurance conclusion thereon. to provide a basis for our opinion. The risk of
326
FINANCIAL STATEMENTS OF SIL
not detecting a material misstatement resulting We communicate with those charged with governance
from fraud is higher than for one resulting from regarding, among other matters, the planned scope and
error, as fraud may involve collusion, forgery, timing of the audit and significant audit findings, including
intentional omissions, misrepresentations, or the any significant deficiencies in internal control that we
override of internal control. identify during our audit.
• Obtain an understanding of internal control We also provide those charged with governance with
a statement that we have complied with relevant
relevant to the audit in order to design
ethical requirements regarding independence, and to
audit procedures that are appropriate in the
communicate with them all relationships and other
circumstances.
matters that may be thought to bear reasonably on our
• Evaluate the appropriateness of accounting independence, and where applicable, related safeguards.
policies used and the reasonableness of
accounting estimates and related disclosures
made by management. From the matters communicated with those charged with
governance, we determine those matters that were of
• Conclude on the appropriateness of most significance in the audit of the financial statements
management’s use of the going concern basis of the current period and are therefore the key audit
of accounting and, based on the audit evidence matters. We describe these matters in our Audit report
obtained, whether a material uncertainty exists unless law or regulation precludes public disclosure about
related to events or conditions that may cast the matter or when, in extremely rare circumstances, we
significant doubt on the Company’s ability to determine that a matter should not be communicated in
continue as a going concern. If we conclude that our report because the adverse consequences of doing
a material uncertainty exists, we are required to so would reasonably be expected to outweigh the public
draw attention in our Audit report to the related interest benefits of such communication.
disclosures in the financial statements or, if Report on other Legal and Regulatory Requirements
such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit In accordance with the Companies Act, 1994, the
evidence obtained up to the date of our audit Securities and Exchange Rules 1987, we also report that:
report. However, future events or conditions may (i) we have obtained all the information and
cause the Company to cease to continue as a explanations which to the best of our knowledge
going concern. and belief were necessary for the purpose of our
audit and made due verification thereof;
• Evaluate the overall presentation, structure and
content of the financial statements, including the (ii) in our opinion, proper books of accounts as
disclosures, and whether the financial statements required by law have been kept by the Company
represent the underlying transactions and events so far as it appeared from our examination of
in a manner that achieves fair presentation. those books;
• Obtain sufficient appropriate audit evidence (iii) the statement of financial position and statement
regarding the financial information of the entity of comprehensive income together with the
annexed notes dealt with the report are in
or business activities within the entity to express
agreement with the books of account and
an opinion on the financial statements. We are
returns;
responsible for the direction, supervision and
performance of the company audit. We remain (iv) the expenditures incurred were for the purpose
solely responsible for our audit opinion. of the Company’s business for the year.
Date: 18 April 2019 Dr. Jamshed S A Choudhury FCA

Dhaka Senior Partner & International Liaison Partner

Sonali Investment Limited

Statement of Financial Position
Amount in Taka
Particulars Notes 2018 2017
Assets
Non-Current Assets
Property, Plant & Equipment 4.00 1,209,822 1,755,275
Investment in Shares 5.00 412,674,574 362,694,952
Total Non-Current Assets 413,884,396 364,450,227
Current Assets:
Portfolio Margin Loan to Investors 6.00 2,236,624,810 2,273,451,454

Advance, Deposit and Prepayments 7.00 375,255 200,000
Advance Income Tax 8.00 70,593,100 43,330,066
Other Assets 9.00 5,817,851 5,214,491
Other Receivables 10.00 38,953,231 26,425,391
Cash and Cash Equivalents 11.00 97,527,448 86,300,228
Total Current Assets 2,449,891,694 2,434,921,631
Total Assets 2,863,776,090 2,799,371,858
Equity & Liabilities

Capital and Reserves
Share Capital 12.00 2,000,000,000 2,000,000,000
Retained Earnings 13.00 (135,097,548) (190,668,138)
1,864,902,452 1,809,331,862
Non-Current Liabilities
Loan from Sonali Bank limited 14.00 - -
Current Liabilities & Provision:

Portfolio Margin Deposit Control Accounts 15.00 41,006,815 29,273,205
Payable for Client Sale 3,219,893 8,506,528
Liabilities for Expenses 16.00 5,249,036 7,046,350
Other Liabilities 17.00 410,905,289 432,220,074
Provision Against Portfolio Margin Loan 18.00 389,011,538 389,011,538
Provision Against Investment in Shares 19.00 83,296,334 83,296,334
Liabilities for Income Tax 20.00 66,184,734 40,685,968
Total Current Liabilities & Provision 998,873,638 990,039,997
Total Equity and Liabilities 2,863,776,090 2,799,371,858
The annexed notes 01 to 45 form an integral part of these financial statements.
Chief Executive Officer Director Chairman
Signed in terms of our separate report of even date annexed.

Date: 18 April 2019
Aziz Halim Khair Choudhury
Dhaka
328

Statement of Comprehensive Income
Amount in Taka
Particulars Notes 2018 2017
Operating Income :
Interest Income 21.00 82,346,569 87,167,524
Interest Expenses 22.00 (457,474) (3,379,249)
Net Interest Income 81,889,095 83,788,275
Capital Gain/(Loss) on Sale of Shares (Own Portfolio) 7,924,924 39,005,659

Dividend Income 23.00 10,106,987 11,208,366
Fees and Commission Income 24.00 18,807,571 28,526,324
Other Operating Income 25.A 169,350 165,450
Total Operating Income (A) 118,897,926 162,694,075
Operating Expenses :
Salaries & Allowances 26.00 17,168,920 22,169,076
Rent, Rates, Insurance, Lighting 27.00 7,783,689 7,438,501
Postage, Telephone and Stamp 28.00 144,623 144,279
Stationery, Printing & Advertisement 29.00 247,385 186,113
Directors Fees & Honorarium 30.00 561,750 467,200
Repairs & Maintenance 31.00 948,989 569,852
Other Operating Expenses 32.00 4,897,125 5,577,251
CDBL Charges 308,007 1,205,521
Depreciation 4.02 491,807 539,454
Total Operating Expenses (B) 32,552,294 38,297,247
Non-Operating Income ( C ) 25.B 62,510 -
Profit Before Provision (A-B+C) 86,408,142 124,396,828

Provision for Loans / Investments:
Margin Loans to Investors 18.00 - -
Investment in Shares 19.00 - -
Other Provision 17.02 3,000,000 4,000,000
Total Provision for Loans / Investments 3,000,000 4,000,000
Profit Before Tax 83,408,142 120,396,828
Income Tax Expense
Current Tax Expenses 33.00 (28,440,912) (33,960,790)
Deferred Tax 34.00 603,360 1,490,336
Net Profit after Tax 55,570,590 87,926,375
Earnings per Share 35.00 0.28 0.44
The annexed notes 1 to 45 form an integral part of these financial statements.
Signed in terms of our separate report of even date annexed

Date: 18 April 2019
Aziz Halim Khair Choudhury
Dhaka


Amount in Taka
Retained
Particulars Share Capital Total Equity
Earnings
Balance as on 01.01.2018 2,000,000,000 (190,668,138) 1,809,331,862
Prior years' - - -
Net Profit after Tax - 55,570,590 55,570,590
Balance as at 31.12.2018 2,000,000,000 (135,097,548) 1,864,902,452

Amount in Taka
Retained
Particulars Share Capital Total Equity
Earnings
Balance as on 01.01.2017 2,000,000,000 (278,594,513) 1,721,405,487
Prior years' - -
Net Profit after Tax - 87,926,375 87,926,375
Balance as at 31.12. 2017 2,000,000,000 (190,668,138) 1,809,331,862

Date: 18 April 2019
Dhaka
330

Statement of Cash Flows
Amount in Taka
Cash flows from operating activities

Receipts from interest income 82,346,569 87,167,524
Receipts from other income 37,071,341 78,905,799
119,417,909 166,073,323
Payments to suppliers, employees & others (94,633,887) (60,319,268)
Net cash generated by operating activities (A) 24,784,023 105,754,055
Cash flows from investing activities
(Payments)/Receipts for property, plant and equipment 53,647 (27,670)
Payments for investment in shares (49,979,622) 126,563,298
(Increase)/Decrease in margin loan 36,826,645 55,994,400
Net cash generated by investing activities (B) (13,099,330) 182,530,028
Cash flows from financing activities
Proceeds from issue of share capital - -
Proceeds from SBL loans - (214,863,876)
Finance cost recognized in profit and loss (4,57,473) (3,379,249)
Net cash used in financing activities ( C) (4,57,473) (218,243,125)
Net increase in cash and cash equivalents (A+B+C) 1,12,27,220 70,040,959
Cash and cash equivalents at the beginning of the year 8,63,00,228 16,259,269
Cash and cash equivalents at the end of the year 9,75,27,448 86,300,228

Date: 18 April 2019
Dhaka


Notes to the Financial Statements
1.0 REPORTING ENTITY:
1.01 LEGAL STATUS AND NATURE OF THE COMPANY:
Sonali Investment Limited was registered under the Companies Act 1994 as a Public Company, Limited by shares on
22 April 2010 and commenced its operation from 22 April 2010. The Company obtained registration from Securities
and Exchange Commission as a merchant bank on 28 October 2010. As a part of restructuring program of Sonali
Bank Limited directive by the Bangladesh Bank as per BRPD Circular no. 12 on 14 October 2009, Sonali Investment
Limited has been established as a subsidiary of Sonali Bank Limited to conduct merchant banking activities and play
active role in the Capital Market of Bangladesh.
1.02
1.03 REGISTERED OFFICE:
The registered office of the Company is located at 11/A, Toyenbee Circular Road, Sara Tower (11th Floor), Motijheel
C/A, Dhaka-1000.
1.04 PRINCIPAL ACTIVITIES:
The major activities of the Company are portfolio management, margin loan account, issue management,
underwriting, equity & entrepreneurship fund consultancy and other services as required by clients.
2.00 BASIS OF PREPARATION AND PRESENTATION FINANCIAL STATEMENTS:
2.01 STATEMENT OF COMPLIANCE:
The Financial Statements have been prepared under Historical Cost Convention as a Going Concern. All expenditure
is recognized on accrual basis and all income is recognized on cash basis except for interest on Margin Loan.
2.02 REGULATORY COMPLIANCES:
As required, Sonali Investment Limited complies with the following major legal provisions in addition to the Companies
Act 1994 and other applicable laws and regulations:
a. Bangladesh Securities & Exchange Commission Rules and Regulations;
b. The Income Tax Ordinance 1984;
c. The Income Tax Rules 1984;
d. The Value Added Tax Act 1991;
e. The Value Added Tax Rules 1991;
f. Regulations & Circulars issued by Bangladesh Bank.
2.03 RISK AND UNCERTAINTIES FOR USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS:
Preparation of Financial Statements in conformity with the International Accounting Standards requires management
to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the Financial Statements and revenues and expenses during the year
then ended. Actual results could differ from those estimates. Estimates are used for Accounting of certain items such
as long term contracts, depreciation and amortization, employees benefit plans, reserves and contingencies.
2.04 FUNCTIONAL AND PRESENTATIONAL CURRENCY:
These financial statements are prepared in Bangladesh Taka (Taka/Tk.) currency, which is the company’s functional
currency. All financial information presented in Taka has been rounded off to the nearest Taka.
332
2.05 USE OF ESTIMATES AND JUDGMENT:
The preparation of these financial statements in conformity with IFRSs requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, incomes and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.
2.06 COMPONENTS OF FINANCIAL STATEMENTS:
The presentation of these financial statements is in accordance with the guidelines provided by IAS- 1: Presentation
of Financial Statements. The Financial Statements comprises:
a. Statement of Financial Position as at 31 December 2018;
b. Statement of Comprehensive Income for the year ended 31 December 2018;
c. Statement of Changes in Equity for the year ended 31 December 2018;
d. Statement of Cash Flows for the year ended 31 December 2018; and
e. Notes, comprising a summary of significant accounting policies and explanatory information.
2.07 REPORTING PERIOD:
The financial period of the company covers one year from 01 January 2018 to 31 December 2018 and is followed
consistently.
2.08 DIRECTOR’S RESPONSIBILITY ON FINANCIAL STATEMENTS:
The Board of Directors takes the responsibility for the preparation and presentation of these financial statements.
2.09 CHANGES IN ACCOUNTING POLICIES FOR FINANCIAL INSTRUMENTS:
As adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) from 01 January 2010, the Company has
applied International Accounting Standard -32, Financial Instruments : Presentation and International Accounting
Standard-39 Financial Instruments : Recognition and Measurement in accounting for financial instruments and
International Financial Reporting Standards-7 Financial Instruments : Disclosures for presentation of financial
instruments. The change in accounting policy has been applied retrospectively and had no material impact on
earnings per share for comprehensive income.
2.10 COMPARATIVE INFORMATION AND REARRANGEMENT THEREOF:
Comparative information has been disclosed for the year 2018 for all numerical information in the financial statements
and also the narrative and descriptive information where it is relevant for understanding of the current year’s financial
statements.
3.0 SIGNIFICANT ACCOUNTING POLICIES:
The accounting policies set out below have been applied consistently (otherwise as stated) to all years presented in
these financial statements.
3.01 PROPERTY, PLANT AND EQUIPMENT:
3.01.01 RECOGNITION AND MEASUREMENT:
Items of property, plant and equipment are measured at cost less accumulated depreciation less impairment loss, if
any. Cost includes expenditure that is directly attributable to the acquisition of asset.
3.01.02 SUBSEQUENT COSTS AND MAINTENANCE ACTIVITIES:
The company recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing
part of such an item when the cost is incurred, if it is probable that the future economic benefits embodied with
the item will flow to the company and the cost of the item can be measured reliably. Expenditure incurred after the
assets have been put into operation, such as repair and maintenance is normally charged off as revenue expenditure
in the year in which it is incurred. In situation where it can be clearly demonstrated that the expenditure has resulted

in an increase in the future economic benefit expected to be obtained from the use of fixed assets, the expenditure
is capitalized as an additional cost of the assets. All other costs are recognized to the profit and loss account as
expenses as incurred. All up-gradation/enhancement are generally charged off as revenue expenditure unless they
bring similar significant additional benefits.
3.01.03 SOFTWARE:
Software cost less than TK 15,000 is charged as revenue expenditure. Customized software that is integral to the
functionality of the related equipment is capitalized as part of that equipment.
3.01.04 MAINTENANCE ACTIVITIES:
The company incurs maintenance cost for all its major items of property, plant and equipment. Repair and maintenance
costs are charged as expenses when incurred.
3.01.05 DEPRECIATION:
Depreciation begins when the asset is available for use and continues until the asset is derecognized. Depreciation is
charged to amortize the cost of assets over their estimated useful lives, using reducing balance method from 2010 to
2013 and from 2014 straight line method in accordance with IAS-16 “Property, Plant & Equipment”. Half yearly basis
of depreciation is charged on the additional assets. Depreciation is charged at the rates varying from 10% to 20%
depending on the estimated useful lives of assets as under:
Category Rate of Depreciation

Furniture & Fixtures 10%
Computer & Accessories 20%
Office Equipment 20%
Motor Vehicle 20%
Air Conditioner & Generator 20%
Application of Software 20%
Interior Decoration 20%
3.02 INVESTMENT IN SHARES:
Investment in marketable ordinary shares has been shown at cost. Required provision for diminution in value of
shares as at closing of the year on an individual investment basis is made in the financial statements.
3.03 RECEIVABLES:
Other receivables at the balance sheet date are stated at amounts which are considered realizable. Specific allowance
is made for receivable considered to be doubtful of recovery.
3.04 ADVANCES, DEPOSITS AND PREPAYMENTS:
a. Advances are initially measured at cost. After initial recognition advances are carried at cost less deductions,
adjustments or charges to other account heads such as property, plant and equipment, inventory or expenses.
b. Deposits are measured at payment value.
c. Prepayments are initially measured at cost. After initial recognition prepayments are carried at cost less
charges to profit and loss account.
3.05 CASH AND CASH EQUIVALENTS:
Cash and cash equivalents include notes and coins in hand, cash at banks which are held and available for use by the
company without any restriction.
3.06 PROVISION FOR LIABILITIES:
A provision is recognized in the balance sheet when the company has a legal or constructive obligation as a result
of a past event and it is probable that an outflow of economic benefits will be required to settle the obligations in
accordance with the IAS-37 “Provisions, Contingent Liabilities and Contingent Assets”.
3.07 INCOME TAX EXPENSES:
The company is a public limited company, limited by share. As per Income Tax Ordinance, 1984, provision for Tax has
been made at the existing rate of 37.5% in respect of business income.
334
3.07.01 CURRENT TAX:
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the reporting date and any adjustment to tax payable in respect of previous years. The applicable tax rate
for the company is 37.50%. Provision for taxation has been made on the basis of the Income Tax Ordinance-1984.
3.07.02 Deferred Tax:
Deferred tax is provided for all temporary differences comprising between the tax base of assets and liabilities and
their carrying amounts in financial statements in accordance with the provision of IAS 12.Deferred tax is calculated as
per IAS -12 on conservatism method from the year 2016.
3.08 REVENUE RECOGNITION:
3.08.01 INTEREST INCOME:
In terms of the provisions of IAS-18 “Revenue”, the interest income is recognized on accrual basis.
3.08.02 INVESTMENT INCOME:
Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is also included
in investment income. Capital gain is recognized when it is realized,
3.08.03 FEES AND COMMISSION INCOME:
Fees and commission income arising on services provided by the company are recognized on cash basis.
3.08.04 DIVIDEND INCOME ON SHARES:
Dividend income on shares is recognized during the period when it is received.\
3.09 BORROWING COSTS:
Borrowing costs comprise interest expense on bank loan and other borrowings. All borrowing costs are recognized
in the profit and loss account.
3.10 STATEMENT OF CASH FLOWS:
Since the company is a subsidiary of Sonali Bank Ltd. the Cash Flow Statement has been prepared in conformity with
Bangladesh Bank Guideline to facilitate consolidation.
3.11 RELATED PARTY DISCLOSURES:
As per IAS-24 “Related Party Disclosures”, parties are considered to be related if one of the parties has the ability
to control the other party or exercise significant influence over the other party in making financial and operating
decisions. The company carried out transactions in the ordinary course of business on an arm’s length basis at
commercial rates with its related parties.

Amount in Taka
Particulars
2018 2017
4.00 PROPERTY, PLANT & EQUIPMENT
4.01 Cost:
Opening balance 30,948,383 30,920,713
Less: Disposal during the year (5,236,545) -
Add: Addition made during the year 66,025 27,670
Closing balance 25,777,863 30,948,383
4.02 Accumulated Depreciation:

Opening balance 29,193,107 28,653,654
Less: Adjustment for disposal (5,116,873) -
Add: Charged during the year 491,807 539,454
Closing balance 24,568,041 29,193,108
Written down value (4.01-4.02) 1,209,822 1,755,275
Details of assets are shown under 'Annexure-A'
5.00 INVESTMENT IN SHARES

Opening balance 362,694,952 489,258,250
Add: Investment made during the year 166,856,764 397,390,186
Less: Share sold during the year (116,877,142) (523,953,484)
Closing balance 412,674,574 362,694,952
Details of investment in share are shown under, ‘Annexure - B’
6.00 PORTFOLIO LOAN TO INVESTORS

Opening balance 2,273,451,454 2,329,445,855
Add: Charged applied during the year 231,114,215 96,744,271
Add: Loan disbursed during the year 394,425,434 1,066,566,355
Less: Loan recovered during the year (662,366,294) (1,219,305,027)
Closing balance 2,236,624,810 2,273,451,454
7.00 ADVANCE, DEPOSIT AND PREPAYMENTS

Security Deposit to CDBL 200,000 200,000
Suspense A/C 41,255 -
Advance House Rent (Uttara Branch) 1,34,000 -
Total 375,255 200,000
8.00 ADVANCE INCOME TAX

Opening balance 43,330,066 31,335,486
Add: Paid during the year 30,205,180 28,169,839
Add: Prior year adjustment - -
73,535,246 59,505,325
Less: Adjusted during the year (2,942,146) (16,175,259)
Closing balance 70,593,100 43,330,066
9.00 OTHER ASSETS

Opening balance 5,214,491 3,724,155.00
Add: Deferred Tax Assets 603,360 1,490,336.33
Closing balance 5,817,851 5,214,491.33
336
Amount in Taka
Particulars
2018 2017
10.00 OTHER RECEIVABLES

Receivable from ISTCL 27,325,343 6,386,151
Receivable from Wifang Securities 2,493,184 16,671,533
Receivable from Shahajan Securities 2,945,326 3,337,969
Receivable from Lankabangla Securities 6,126,467 -
A/C Receivable (against Assets Sales) 62,912 29,739
Total 38,953,231 26,425,391
11.00 CASH AND CASH EQUIVALENTS
Cash in hand - -
Cash at Bank 11.01 97,527,448 86,300,228
Total 97,527,448 86,300,228
11.01 CASH AT BANK
SBL, Foreign Ex. Corp. Br. (Investors STD A/C No. # 36000636) 36,334,552 12,945,144
SBL, Foreign Ex. Corp. Br. (Brokerage STD A/C No. # 36000628) 39,945,514 45,723,460
SBL, Foreign Ex. Corp. Br. (Current A/C No. # 33033589) 327,441 458,597
SBL Foreign Ex. Corp. Br., (SIL Kallyan Tahbil A/C No. # 34049584) 453,530 424,460
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000594) 5,660,344 12,838,910
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000677) 24,367 5,169
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000719) 9,727,371 7,911,992
Dhaka Bank, Islamic Banking Br., Motijheel (A/C No. # 214155434) 2,497 3,599
SBL, Uttara Br. (Investors STD A/C No. # 4000269) 2,306,353 2,240,895
SBL Uttara Br. (Current A/C No. # 1015192) 32,073 5,357
UCBL, Bijoynagar Br. (Investors A/C No. # 010713200000113) 3,384 1,106,411
UCBL, Bijoynagar Br. (A/C No. # 010711100001245) 6,966 68,116
SBL Mirpur Shilpa Elaka Br. (Investors STD A/C No. # 36000316) 2,663,458 2,542,146
SBL Mirpur Shilpa Elaka Br. (Current A/C No. # 33003627) 39,598 25,973
Total 97,527,448 8,63,00,228
12.00 SHARE CAPITAL
Authorized capital
500,000,000 ordinary shares of Tk. 10 each 5,000,000,000 5,000,000,000
Issued, Subscribed & Paid up capital

200,000,000 ordinary shares of Tk. 10 each 2,000,000,000 2,000,000,000
Total 2,000,000,000 2,000,000,000
2018 2017
Percentage Percentage
Name of the share
Designation No of of total Amount in No of of total Amount in
holders
shares share Taka shares share Taka
holdings holdings
Director
Mr. Md. Ashraful
and 1 0.0000005% 10 - - -
Moqbul
Chairman
Mr. Md. Zakir Hossain Director 1 0.0000005% 10 - - -
Mr. Md. Shamim Ahmed Director 1 0.0000005% 10 - - -
Head of Treasury,
Sonali Bank Limited
Shareholder 1 0.0000005% 10 - - -
Represented by Mr.
Biswanath Paul
CFO, Sonali Bank
Limited Represented Shareholder 1 0.0000005% 10 - - -
by Mr. Biswanath Paul
Sonali Bank Ltd.
Represented by Md. Shareholder 199,999,995 99.9999975% 1,999,999,950 199,999,995 99.9999995% 1,999,999,950
Obayed Ullah Al Masud
Md. Shaheb Ali Mridha Director - - - 1 0.0000005% 10
Md. Mahboob Hossain Director - - - 1 0.0000005% 10
Sabera Aktari Jamal Director - - - 1 0.0000005% 10
Afzal Hossain Director - - - 1 0.0000005% 10
Yusuf Ali Director - - - 1 0.0000005% 10
Total 200,000,000 100% 2,000,000,000 200,000,000 100% 2,000,000,000

Amount in Taka
Particulars
2018 2017
13.00 Retained Earnings
Opening Balance (190,668,138) (278,594,513)
Add: Adjustment for the prior period - -
Add: Profit after tax during the year 55,570,590 87,926,375
Closing balance (135,097,548) (190,668,138)
14.00 LOAN FROM SONALI BANK LIMITED

Opening balance - 214,863,876
Add: Loan received during the year - 140,500,000
Less: Loan repaid during the year - (355,363,876)
Closing balance - -
* The loan has been provided by Sonali Bank Limited (Holding Company) for operation of activities of merchant banking
and investment in portfolio margin loan. The interest amount shall be repaid quarterly each year as per agreement with
Sonali Bank Limited.
* Interest rate of Khandakalin Rin is 9%
* The Loan has been fully paid along with interest and cancelled sanction as per decesion of the Board of Directors of
the Company.
15.00 PORTFOLIO DEPOSIT CONTROL ACCOUNTS

Opening balance 29,273,205 24,403,239
Add: Deposit during the year 249,053,662 507,893,904
Less : Withdrawal/Fund use during the year (237,320,051) (503,023,938)
Closing balance 41,006,815 29,273,205
* Portfolio Deposit Control Accounts consists of the credit balance of investors deposit accounts.
16.00 LIABILITIES FOR EXPENSES

Salaries & allowances - -
Pension fund 1,146,365 908,969
Contributory provident fund 3,444,672 2,598,950
Office Rent - 2,180,000
Audit fees 73,000 73,000
Tax consultant fees - 200,000
Legal Expenses 100,000 200,000
Printing & stationery - 120,000
Electric bill 15,000 15,000
Telephone bill 15,000 18,500
Paper bill 15,000 10,000
Office Equipement 20,000
Generator maintenance 50,000 -
Service Charge - 42,000
Sundries 220,000 100,000
VAT Payable 50,000 401,931
Provision for CDBL charge 100,000 150,000
Internet bill - 10,000
Repairs & Maintenance (Computer Hardware) - 15,000
Lunch Subsidy - 3,000
Total 5,249,036 7,046,350
338
Amount in Taka
Particulars
2018 2017
17.00 OTHER LIABILITIES

Payable to ISTCL 18,587,495 6,718,735
SIL kallyan tahabil 414,026 407,635
Payable to Wifang Securities 2,755,372 17,293,035
Payable to Shahjahan Securities 2,338,879 1,387,111
Payable to Lankabangla Securities 1,834,931 -
Security deposit 229,814 -
Interest suspense a/c 17.01 373,915,129 396,070,854
Provision for Incentive Bonus 17.02 10,829,643 10,342,704
Total 410,905,289 432,220,074
17.01 Interest Suspense Account

Opening balance 396,070,854 396,071,186
Add: Provision made during the year (Interest waiver-2011 calcelled) 485,789 -
Less: Adjusted for Interest waiver of Affected small Investors (22,641,514) (332)
Closing balance 373,915,129 396,070,854
* Interest on Portfolio Margin Loan of Equity Loss Accounts has been transferred to Interest Suspense A/C
17.02 Provision for Incetnive Bonus

Opening balance 10,342,704 6,342,704
Add: Provision made during the year 3,000,000 4,000,000
Less: Paid during the year (2,513,061)
Closing balance 10,829,643 10,342,704
18.00 PROVISION FOR PORTFOLIO MARGIN LOAN

Opening balance 38,90,11,538 389,011,538
Add: Provision made during the year - -
Closing balance 389,011,538 389,011,538
* Required provision is made as per BSEC directives dated 28 December 2016.
19.00 PROVISION FOR INVESTMENT IN SHARES

Opening balance 83,296,334 83,296,334
Add: Provision made during the year - -
Closing balance 83,296,334 83,296,334
* Required provision is made as per BSEC directives dated 28 December 2016.
20.00 LIABILITIES FOR INCOME TAX

Opening balance 40,685,968 22,900,437
Add: Provision made during the year 33.00 28,440,912 33,960,790
69,126,880 56,861,227
Less: Adjusted during the year (2,942,146) (16,175,259)
Closing balance 66,184,734 40,685,968
21.00 INTEREST INCOME

Interest on portfolio loan to investors 79,619,408 85,942,926
Interest on Bank deposits 2,727,161 1,224,598
82,346,569 87,167,524
Less: Transfer to interest suspense a/c - -
Total 82,346,569 87,167,524
* Interest on Portfolio Margin Loan of Equity Loss Accounts has been transferred to Interest Suspense A/C

Amount in Taka
Particulars
2018 2017
22.00 INTEREST EXPENSE

Interest on Long Term Loan - -
Interest on Khandakalin Rin - 2,996,079
Interest on Provident Fund 457,474 383,170
Total 457,474 3,379,249
23.00 DIVIDEND INCOME

Dividend from Securities 10,106,987 11,208,366
Dividend from EEF Project - -
Total 10,106,987 11,208,366
24.00 FEES AND COMMISSION INCOME

Portfolio management fee 12,954,774 10,801,345
Settlement fee 4,523,942 16,298,514
EEF consultancy fee 270,000 1,080,000
Issue management fee 750,000 240,000
Underwriting commission 250,000 75,000
IPO Application processing fee 58,855 31,465
Total 18,807,571 28,526,324
25.00 OTHER INCOME 231,860 165,450

25.A OTHER INCOME
Documentation charge 94,000 61,000
Sale of account opening form 3,850 4,450
Account closing charges 71,500 100,000
Total 169,350 165,450
25.B OTHER INCOME

Gain/(Loss) on Sale of fixed Assets-Interior Decoration & AC 144,000 -
Gain/(Loss) on Sale of fixed Assets-Furniture & Fixture (79,672) -
Previous year adjustment (1,818)
Total 62,510 -
26.00 SALARIES & ALLOWANCES

Salaries & allowances 15,255,916 20,097,490
Festival Bonus 1,377,338 1,628,566
Honorarium (Diploma) 30,000 7,500
Overtime 505,666 435,520
Total 17,168,920 22,169,076
27.00 RENT, RATES, INSURANCE & LIGHTING

Office Rent (HO, Mirpur, Uttara) 7,243,141 6,863,450
Utilities 19,800 26,400
Insurance 64,295 64,295
Electric Bill 320,453 352,356
Service charge of premises 136,000 132,000
Total 7,783,689 7,438,501
340
Amount in Taka
Particulars
2018 2017
28.00 POSTAGE, TELEPHONE AND STAMPS
Postage 25,972 7,086
Telephone bill 59,851 94,943
Stamp 58,800 42,250
Total 144,623 144,279
29.00 PRINTING, STATIONERY & ADVERTISEMENT

Printing and stationery 196,785 166,113
Advertisement and publicity 50,600 20,000
Total 247,385 186,113
30.00 DIRECTORS FEES & HONORARIUM
Directors fees 516,750 407,200
Honorarium (Chairman of the Board) 45,000 60,000
Total 561,750 467,200
31.00 REPAIR AND MAINTENANCE

Car maintenance 272,919 323,982
Generator maintenance 145,210 107,767
Office Equip./Software maintenance 530,860 138,103
Total 948,989 569,852
32.00 OTHER OPERATING EXPENSES

Traveling and conveyance 69,728 138,549
Entertainment expenses 707,384 561,790
Newspapers and periodicals 56,918 105,180
Bank charge 111,531 121,317
Lunch subsidy 661,160 817,880
Audit fees (Annual Accounts Audit) 73,000 93,000
Legal expenses 41,200 90,340
Subscriptions 211,620 184,460
Computer software & accessories (including internet & Intranet bill) 596,811 969,237
VAT expenses 1,290,254 1,526,147
Tax consultant fees (50,000) 155,000
Security Guard Payment 148,080 160,420
CSR (As per High Court Order) 50,035
Miscellaneous expenses 929,404 653,931
Total 4,897,125 5,577,251
* Miscellaneous expenses comprises Iftar subsidy, light refreshment, water bill etc.
33.00 INCOME TAX EXPENSES

Tax on Income from investment in share (Capital Gain) @10% 792,492 3,900,566
Tax on other income @ 37.5% 25,617,646 27,818,551
Tax on Dividend Income @ 20% 2,021,397 2,241,673
Tax on sale of fixed assets @ 15% 9,376
Provision made for current year 28,440,912 33,960,790
Total 28,440,912 33,960,790
34.00 Deferred Tax (Assets)

Opening balance 5,214,491 3,724,155
Add: Provision made during the year 603,360 1,490,336
Closing balance 5,817,851 5,214,491

Amount in Taka
Particulars
2018 2017
35.00 EARNINGS PER SHARE (EPS)

Basic earnings per share:
Net Profit after tax 55,570,590 87,926,375
Number of ordinary shares outstanding 200,000,000 200,000,000
Earnings per share 0.28 0.44
36.00 RELATED PARTY TRANSACTION
Name of the Transaction During Transaction During

Relationship Types of transactions
parties the year the year
Sonali Bank Holding Company Long term borrowing - -
Limited Khandakalin rin - -
37.00 RECEIPTS FROM OTHER INCOME

Capital gain/ (loss) on sale of shares (own portfolio) 7,924,924 39,005,659
Dividend income 10,106,987 11,208,366
Fees and commission income 18,807,571 28,526,324
Other income 231,860 165,450
Total 37,071,341 78,905,800
38.00 PAYMENTS TO SUPPLIERS, EMPLOYEES AND OTHERS

Total operating expenses (32,552,294) (38,297,247)
(Decrease)/Increase in portfolio deposit control accounts 11,733,610 4,869,966
(Decrease)/Increase in Payable for Client sale (Adjusting Account) (5,286,635) (2,106,612)
(Decrease)/Increase in other liabilities (21,314,786) (217,504,060)
(Decrease)/Increase in liabilities for expenses (1,797,314) 3,610,314
Income taxes Paid during the year (30,205,180) (28,169,839)
Decrease/(Increase) in other receivables (12,527,840) 220,738,754
Increase/Decrease in other provision (3,000,000) (4,000,000)
Decrease/(Increase) in advance, deposit and prepayments (175,255) -
Depreciation 491,807 539,454
Total (94,633,887) (60,319,268)
39.00 DIRECTOR FEES

As per decision of the Board remuneration was paid to the Directors .
40.00 EVENTS AFTER REPORTING PERIOD

There is no event after the balance sheet date.
41.00 STATUS OF TAX ASSESSMENT OF THE COMPANY
The Company has submitted Income Tax Return for the year 2010 to DCT showing total income of Tk 53,142,899
and Tax amounting Tk. 17,674,025 has been paid before submission of Return. DCT settled the income tax case with
an additional income tax claim for Tk. 4,434,098. The company has appealed against the claim. The Commissioner of
Taxes(Appeal) settled the appeal case on 21 August 2013 with reduced to Tax amount Tk. 4,420,163. The company has
appealed to the Taxes Appellate Tribunal Division against the claim. The Commissioner of Taxes(Tribunal) rejected the
appeal case on 26 August 2015. The company has decided to go to High Court Division against the Commissioner of
Taxes (Appeal) decision.
The Company has submitted Income Tax Return for the year 2011 to DCT showing total income of Tk 81,584,399.
Tax amounting Tk. 30,433,875 has been paid before submission of Return. DCT settled the income tax case with an
additional income tax claim for Tk. 549,784. The Company was paid the such amount.
342
and payable tax Tk 7,943,390. Tax amounting Tk. 22,080,941 has been paid before submission of the said Return.
The company has claimed the excess amount of Tk.19,121,429 for refund. DCT settled the income tax case with an
additional income tax claim for Tk. 121,816,431. The company was appealed to Commissioner of Taxes (Appeal) against
the claim. The Commissioner of Taxes (Appeal) rejected the appeal on 22 October, 2015. The company appealed to
the Taxes Appellate Tribunal Division against the claim and as per order of the Taxes Appellate Tribunal, Benches-5,
the appeal is sent back on remad to the learned CT(A) concern with direction do dispose of the appeal on merit after
allowing the assessee an opportunity of being heard. As the appeal is remanded other ground have became redounded.
and payable tax Tk 14,586,099.Tax amounting Tk. 3,887,397 has been paid with an adjustment of Tk. 19,121,429 from
previous year (2012) before submission of the said Return. DCT settled the income tax case with an additional income
tax claim for Tk. 2,69,29,313. The company was appealed to Commissioner of Taxes (Appeal) against the claim. The
Commissioner of Taxes (Appeal) rejected the appeal on 23 November, 2016. The company appealed to the Taxes
Appellate Tribunal Division against the claim and as per order of the Taxes Appellate Tribunal, Benches-5, the appeal is
sent back on remad to the learned CT(A) concern with direction do dispose of the appeal on merit after allowing the
assessee an opportunity of being heard. As the appeal is remanded other ground have became redounded.
and payable tax Tk 16,175,259.Tax amounting Tk. 16,175,259 has been paid before submission of the said Return. DCT
settled the income tax case with an additional income tax claim for Tk. 2,36,03,267. The company was appealed to
Commissioner of Taxes (Appeal) against the claim. The Commissioner of Taxes (Appeal) rejected the appeal on 28
June, 2017. The company has appealed to the Taxes Appellate Tribunal Division against the claim.
and payable tax Tk 29,42,146.20.Tax amounting Tk. 32,97,238 has been paid before submission of the said Return.
DCT settled the income tax case with an additional income tax claim for Tk. 40,84,906. The company has appealed
to Commissioner of Taxes (Appeal) against the claim.The Commissioner of Taxes (Appeal) revised DCT oreder on 23
April, 2018. As per revised DCT order DCT settled the income tax case with revised additional income tax claim for Tk.
30,04,938. The company has appealed to the Taxes Appellate Tribunal Division against the claim on August 28, 2018.
The Company has submitted Income Tax Return for the year 2016 to DCT showing total income of Tk. 8,749,959 and
payable Tax of Tk. 4,332,815. Tax amounting Tk. 4,332,815 has been paid before submission of the said Return.
42.00 CAPITAL COMMITMENT

There is no capital commitment as at 31 December 2018.
43.00 CONTINGENT LIABILITIES

There is no contingent liability as at 31 December 2018.
44.00 CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS DEBT

There is no claim against the company not acknowledged as debt at 31 December 2018.
45.00 GENERAL:
i) The expenses, irrespective of capital or revenue nature, accrued/due but not paid have been provided for in the books
of the company.
ii) Previous year’s figure has been changed where necessary to confirm the current year’s profit.

344
Schedule of Fixed Assets
Annexure-A
Cost Depreciation Written down value
Sl. No. Category of Assets Opening Purchased Disposal Rate Charged Adjustment
Total as on Opening Total as on As on As on
balance as during the during during for Disposal

31.12.2018 balance 31.12.2018 31.12.2018 31.12.2017
on 01.01.18 year the year the year Assets
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11=(5-10) 12
1 Furniture & Fixture 2,557,936 - 421,350 2,136,586 10% 1,605,639 255,794 301,678 1,559,755 576,831 952,297
2 Computer & Accessories 5,466,871 66,025 - 5,532,896 20% 4,733,942 216,003 - 4,949,945 582,951 732,929
3 Motor Vehicle 5,000,000 - - 5,000,000 20% 4,999,999 - - 4,999,999 1 1
4 Office Equipment 396,543 - - 396,543 20% 396,527 - - 396,527 16 16
5 Air Conditioner & Generator 7,636,054 - 903,930 6,732,124 20% 7,636,024 9 903,930 6,732,103 21 30
6 Application of Software 2,917,600 - - 2,917,600 20% 2,847,600 20,000 - 2,867,600 50,000 70,000
7 Interior Decoration 6,973,379 - 3,911,265 3,062,114 20% 6,973,376 1 3,911,265 3,062,112 2 3
Total Assets 30,948,383 66,025 5,236,545 25,777,863 29,193,107 491,807 5,116,873 24,568,041 1,209,822 1,755,276

Portfolio of Investment in Shares
Annexure-B
Cost of Investment Market Value of Investment
Market Unrealized
Sl. No of Cost per Cost of No of
Company Name Market Value of Gain/Loss
No. Share Share Investment Share
Price Investment (Tk)
Held (Tk) (Tk) Held
(Tk)
A. Quoted Share :
1 ACI Formulations Ltd. 50,000 210.22 10,510,980.00 50,000 153.80 7,690,000.00 (2,820,980.00)
2 Aftab Automobiles 43,500 53.39 2,322,606.23 43,500 45.90 1,996,650.00 (325,956.23)
3 Asian Tiger Sandhani Life GF 361,983 11.12 4,024,946.74 361,983 9.50 3,438,838.50 (586,108.24)
4 Bay Leasing & Inv.Ltd. 127,575 56.04 7,148,959.38 127,575 20.50 2,615,287.50 (4,533,671.88)
5 Beximco Pharma 45,000 114.57 5,155,791.00 45,000 79.10 3,559,500.00 (1,596,291.00)
6 BRAC Bank Ltd. 60,000 72.05 4,323,156.00 60,000 72.70 4,362,000.00 38,844.00
7 BSRM Limited 42,327 88.70 3,754,439.91 42,327 78.20 3,309,963.58 (444,476.33)
8 BSRM Steels Ltd. 131,450 90.35 11,876,276.79 131,450 59.90 7,873,855.00 (4,002,421.79)
9 Dafodil Computers 4,500 43.57 196,063.20 4,500 43.60 196,200.00 136.80
10 First BD. Fixed Income Fund 48,059 6.21 298,576.15 48,059 4.30 206,653.70 (91,922.45)
11 Generation Next Fashions Ltd. 220,000 7.47 1,642,624.00 220,000 6.30 1,386,000.00 (256,624.00)
12 Glaxo SmithKline 4,347 2,103.50 9,143,905.92 4,347 1,450.20 6,304,019.40 (2,839,886.52)
13 Golden Harvest Agro Ind Ltd. 151,056 30.09 4,545,243.38 151,056 29.30 4,425,940.80 (119,302.58)
14 GPH ispat ltd. 179,197 40.83 7,317,437.49 179,197 35.00 6,271,881.00 (1,045,556.49)
15 Grameen MF-2 280,000 11.92 3,337,331.20 280,000 11.90 3,332,000.00 (5,331.20)
16 GrameenPhone Ltd. 23,000 489.43 11,256,982.40 23,000 367.30 8,447,900.00 (2,809,082.40)
17 Hamid Fabrics Ltd. 179,275 34.84 6,245,466.00 179,275 23.20 4,159,180.00 (2,086,286.00)
18 Heidelberg Cement 36,884 556.95 20,542,680.25 36,884 334.70 12,345,074.80 (8,197,605.45)
19 ICB AMCL Sonali Bank MF 18,615 8.60 160,094.21 18,615 7.00 130,305.00 (29,789.21)
20 IDLC Finance Ltd. 35,000 77.46 2,711,060.77 35,000 69.70 2,439,500.00 (271,560.77)
21 IFAD Autos Limited 47,640 109.27 5,205,727.33 47,640 108.40 5,164,176.00 (41,551.33)
22 Jamuna Bank Limited 2,342 17.12 40,099.30 2,342 17.60 41,219.20 1,119.90
23 Jamuna Oil 46,715 203.00 9,483,003.15 46,715 190.50 8,899,207.50 (583,795.65)
24 LafargeHolcim Bangladesh Limited 267,000 81.32 21,713,240.30 267,000 43.50 11,614,500.00 (10,098,740.30)
25 LankaBangla Finance 67,500 23.37 1,577,520.00 67,500 22.90 1,545,750.00 (31,770.00)
26 Linde Bangladesh Ltd. 5,300 1,459.98 7,737,884.88 5,300 1,198.40 6,351,520.00 (1,386,364.88)
27 Mercantile Bank Ltd. 504,936.00 18.93 9,560,727.22 504,936 18.00 9,088,848.00 (471,879.22)
28 MJL BD. Ltd. 74,825 97.67 7,307,821.53 74,825 99.20 7,422,649.92 114,828.39
29 NCC Bank 20,000 17.43 348,696.00 20,000 15.90 318,000.00 (30,696.00)
30 NLI FIRST MUTUAL FUND 14,100 14.45 203,775.52 14,100 13.00 183,300.00 (20,475.52)
31 Oimex Electrode Ltd. 0 9.09 0.91 0 37.60 3.76 2.85
32 One Bank Limited 850,177 24.99 21,244,163.55 850,177 15.00 12,752,655.00 (8,491,508.55)
33 Padma Oil 175,478 283.77 49,795,242.58 175,478 225.20 39,517,645.60 (10,277,596.98)
34 Pragati Insurance 25,792 36.10 931,074.15 25,792 27.90 719,596.80 (211,477.35)
35 RAK Ceramics 277,508 52.30 14,513,610.37 277,508 39.00 10,822,812.00 (3,690,798.37)
36 Shahjibazar Power 10,300 114.41 1,178,382.40 10,300 94.80 976,440.00 (201,942.40)
37 Southeast Bank 172,500 18.59 3,207,554.00 172,500 15.60 2,691,000.00 (516,554.00)
38 Southeast Bank 1st MF 241,845 14.04 3,395,338.10 241,845 12.20 2,950,509.00 (444,829.10)
39 Square Pharma 45,475 291.94 13,276,007.68 45,475 254.20 11,559,745.00 (1,716,262.68)
40 The ACME Laboratories 10,000 92.45 924,476.80 10,000 85.90 859,000.00 (65,476.80)
41 Titas Gas T&D Co.Ltd. 355,810 69.03 24,559,908.17 355,810 36.40 12,951,484.00 (11,608,424.17)
42 Trust Bank 1st MF 372,238 5.31 1,975,222.64 372,238 4.40 1,637,847.20 (337,375.44)
43 United Finance Limited 161,700 24.99 4,041,066.00 161,700 17.80 2,878,260.00 (1,162,806.00)
44 Uttara Bank Ltd. 270,000 46.50 12,555,972.22 2,70,000 28.50 7,695,000.00 (4,860,972.22)
45 Uttara Finance 15,077 73.29 1,104,988.75 15,077 65.40 986,035.80 (118,952.95)
Sub Total (A) 332,396,125 244,117,954.06 (88,278,170.52)

Annexure-B
Cost of Investment Market Value of Investment
Market Unrealized
Sl. No of Cost per Cost of No of
Company Name Market Value of Gain/Loss
No. Share Share Investment Share
Price Investment (Tk)
Held (Tk) (Tk) Held
(Tk)
B. Unquoteed Share :
1 Aman Cotton Fibrous Limited 3,139 40.00 125,560.00 3,139.00 42.10 132,151.90 6,591.90
2 Appollo Ispat Limited 198,275 18.76 3,719,925.00 198,275.00 8.20 1,625,855.00 (2,094,070.00)
3 Arian Chemicals(Pvt.Plac) 500,000 10.00 5,000,000.00 500,000.00 10.00 5,000,000.00 0.00
4 Bashundhara Paper Mills Ltd. 21,613 80.00 1,729,040.00 21,613.00 83.80 1,811,169.40 82,129.40
5 BD. Submarine Cable Co. 34,763 123.36 4,288,194.57 34,763.00 93.50 3,250,340.50 (1,037,854.07)
6 Beacon Pharma 140,000 24.57 3,439,365.00 140,000.00 16.20 2,268,000.00 (1,171,365.00)
7 CVO Petrochemical Ltd. 8,925 526.46 4,698,631.67 8,925.00 154.50 1,378,912.50 (3,319,719.17)
8 Delta Life Ins. 111,295 127.56 14,196,289.47 111,295.00 109.80 12,220,191.00 (1,976,098.47)
9 Familytex (BD) Limited 144,703 15.26 2,207,898.99 144,702.60 4.80 694,572.48 (1,513,326.51)
10 Fiber Shine Ltd.(Pvt.Plcemnt) 200,000 10.00 2,000,000.00 200,000.00 10.00 2,000,000.00 0.00
11 Genex Infosys Limited 10,467 10.00 104,670.00 10,467.00 0.00 0.00 (104,670.00)
12 Golden Son Limited 99,488 34.31 3,413,017.73 99,488.00 10.70 1,064,521.60 (2,348,496.13)
Indo-Bangla Pharmaceuticals
13 3,532 9.09 32,107.27 3,531.80 31.10 109,838.98 77,731.71
Limited
14 Intraco Refueling Station Limited 5,866 9.52 55,870.00 5,866.35 26.80 157,218.18 101,348.18
15 Kattali Textile Limited 11,577 9.09 105,242.73 11,576.70 25.30 292,890.51 187,647.78
16 M.L. Dyeing Limited 7,248 8.33 60,400.00 7,248.00 29.70 215,265.60 154,865.60
17 Prime Finance 120,000 73.82 8,858,366.37 120,000.00 9.50 1,140,000.00 (7,718,366.37)
18 Rupali Life Insurance 158,000 95.62 15,107,818.38 158,000.00 89.60 14,156,800.00 (951,018.38)
19 S.S. Steel Limited 13,492 10.00 134,920.00 13,492.00 0.00 0.00 (134,920.00)
20 Silva Pharmaceuticals Limited 9,194 10.00 91,940.00 9,194.00 30.10 276,739.40 184,799.40
21 SK Trims & Industries Limited 11,090 9.09 100,820.00 11,090.20 46.30 513,476.26 412,656.26
22 Union Capital 270,541 23.49 6,356,040.52 270,540.90 12.40 3,354,707.16 (3,001,333.36)
23 VFS Thread Dyeing Limited 7,742 9.09 70,380.00 7,741.80 57.80 447,476.04 377,096.04
24 Esquire Knit Composite Limited 41,669 45.00 1,875,105.00 41,669.00 45.00 1,875,105.00 0.00
25 Runner Auto Mobile 14,411 75.00 1,080,825.00 14,411.00 75.00 1,080,825.00 0.00
26 ADNTEL 18,968 30.00 1,426,021.70 18,968 30.00 569,040.00 (856,981.70)
Sub Total (B) 80,278,449.40 52,110,126.51 (23,786,371.19)
Total (A+B) 412,674,574.00 296,228,080.57 (112,064,542.25)
346
Financial
Statements of
Islamic Banking Unit
Sonali Bank Limited
for the year ended
31 December 2018

SONALI BANK LIMITED

Balance Sheet
31 December 2018 31 December 2017

Particulars
Taka Taka
PROPERTY AND ASSETS
Cash in hand 73,123,806 42,314,596
Cash in hand (including foreign currency) - -
Balance with Bangladesh Bank and its agent bank(s)
73,123,806 423,14,596
(including foreign currency)
Balance with other banks and financial institutions 899,932,296 411,062,868
In Bangladesh 899,932,296 411,062,868

Outside Bangladesh
"Placement with other banks and financial institutions

45,000,000 25,000,000
Investments in share & Securities"
Government 45,000,000 250,00,000
Others - -
Investments 247,833,598 170,355,763
General Investment etc 247,833,598 170,355,763
Bill purchased and discounted
Fixed assets including premises,furniture and fixtures

Other assets : 211,791,255 44,027,378
Non- banking assets
Total Assets 1,477,680,955 692,760,605

LIABILITIES
Placement with other banks and financial institutions and agents
1,093,072,067 558,095,671
Deposits and other accounts
Mudaraba Savings Deposites 167,502,395 68,745,156
Mudaraba Term Deposits 846,212,692 414,775,888
Other Mudaraba Deposits 19,923,542 14,614,533
Al-wadeeah currents deposits 1,726,381 5,694,408
Mudaraba Monthly Profit Scheme 43,882,997 47,446,134
Bills payable 13,824,060 6,819,552
Other liabilities 384,608,888 134,664,934

Deferred tax liabilities/(Assets)
Total Laibilities 1,477,680,955 692,760,605
Capital/Shareholder's Equity
Paid up Capital
statutory Reserve
Revalution gain/loss Account/Retained Earnings - -
Other Reserve
Surplus in P/L A/C/Retained Earnings
Total shareholder's Equity
Total Laibilities and Shareholder's Equity 1,477,680,955 692,760,605
348
FINANCIAL STATEMENTS OF ISLAMIC BANKING
SONALI BANK LIMITED

Balance Sheet

Particulars
Taka Taka
OFF- BALANCE SHEET ITEMS - -

Contingent Liabilities - -
Acceptances and Endorsements - -
Letters of Guarantee - -
Irrevocable Letters Credit - -
Bill for Collection - -
Otheer Cntingent Liabilities - -
Other Commitments - -
Documentary credits and short term trade- related transactins - -
Forward assets purchased and forward deposits placed - -
Other commitments - -
Total Off- Balance Sheet items including contingent liabilities - -

SONALI BANK LIMITED

Profit & Loss Account

Particulars
Taka Taka
Operating Income
Investment Income 68,318,468 32,073,140
Profit paid on deposits 41,542,805 21,763,070
Net Investment Income 26,775,663 10,310,070
Income from investment in shares/securities - -

Commission,exchange and brokerage 294,837 984,488
Other operating income 13,765 5,055
Total Operating income(A) 27,084,265 11,299,613
Operating Expenses
Salary and allowances - -
Rent,taxes,insurance,electricity etc. - -
Legal expenses - -
Postage,stamp,telecommunication etc. - -
Stationery,printings, advertisements etc. - -
Chief Executive's salary and fees - -
Director's fees & expenses - -
Shariah supervisory committee's fees & expenses - -
Auditor's fees - -
Charges on loan losses - -
Depreciation and repair of bank's assets - -
Zakat expenses - -
Other expenses - -
Total Operating expenses(B) - -
Profit/Loss before provision(C=A-B) 27,084,265 11,299,613
Provision for investment
Specific provision - -
General provision - -
Provision for off-balance sheet expoures - -
Provision for diminution in value of investments - -
Other provisions - -
Total provision(D) - -
Total Profit/Loss befor taxes (E=C-D) 27,084,265 11,299,613
350
SONALI
EXCHANGE
CO. INC.
(A wholly owned subsidiary
of Sonali Bank Limited)
Financial Statements
31 December, 2018

UNITED FINANCIAL CPA P.C.

Certified Public Accountants
122 East 42nd Street, Suite 2100
New York, NY 10168
Tel.(212) 661 2315; Fax (212) 983 5276

To the Board of Directors and Stockholders of
Sonali Exchange Co., Inc.
We have audited the accompanying balance sheet of on a test basis, evidence supporting the amounts and
Sonali Exchange Co. Inc. (a New York Corporation) as disclosures in the financial statements. An audit also
of December 31, 2018, and the related statements of includes assessing the accounting principles used a
income, retained earnings, and cash flows for year then significant estimate made by management, as well as
ended.These financial statements are the responsibility evaluating the overall financial statement presentation. We
of the Company’s management. Our responsibility is to believe that our audit provides a reasonable basis for our
express an opinion on these financial statements based on opinion.
our audit.
In our opinion, the financial statements referred to above
We conducted our audit in accordance with generally present fairly, in all material respects, the financial position
accepted auditing standards. Those standards require of Sonali Exchange Co. Inc., as of December 31,2018,
that we plan and perform the audit to obtain reasonable and the results of its operations and its cash flows for the
assurance about whether the financial statements are free year then ended in conformity with generally accepted
of material misstatement. An audit includes examining, accounting principles.
New york
January 24, 2019
352
FINANCIAL STATEMENTS OF SECI
SONALI EXCHANGE CO. INC.

(A wholly owned subsidiary of Sonali Bank Limited)
Balance Sheet
For the year ended December 31, 2018
(See accompanying auditor’s report)
2018
Assets :
$
Current Assets :
Cash in Bank 3,552,435
Other Current Assets 27,283
Total Current Assets : 3,579,718
Fixed Assets, net(note 3) 26,548
Security deposits 68,761
Total Assets 3,675,027
Liabilities and Stockholder’s Equity

Current Liabilities :
Advance Cover funds 412,885
Remittance payable to beneficiary 1,225,698
Other Liabilities 11,755
Total Current Liabilities : 1,650,338
Long Term Liabilities (note 5) 990,000
Total Liabilities 2,640,338
Total stockholder’s equity 1,034,689
Total Liabilities and Stockholder’s Equity 3,675,027
The accompanying notes are an integral part of these financial statements.


Stockholder’s Equity
2018
Stockholder’s Equity :
$
Common stock, par value $100 per share
Authorized 10,000 shares; issued and outstanding 9,500 shares (note 7 and notes 8) 950,000
Retained Earnings beginning of the year 66,041
Net income for the year ended 18648
Retained Earnings 84,689
Total Stockholder’s Equity : 1,034,689
Commitment (note 4)

Statement of Income and Retained Earnings
2018
Revenue :
$
Commission / Fees Income 330,285
Certification Fees 70
FX Commission/Gain 1,416,086
Refunds - Allowances -
Interest Income 16,412
Total Revenue 1,762,853
Expenses:
General and Administrative expenses :
New York, California, New Jersey, Michigan, 1,744,055
and Georgia office expenses (note 6)
Total 1,744,055
Operating income before taxes 18798
Income Taxes :
State Taxes (150)
Net Income (loss) 18648
Retained Earnings at the beginning of the period 66,041
Retained Earnings at the end of the year 84,689
354

Statement of Cash Flow
2018
Cash flows from operating activities:
$
Net Income 18648
Adjustments to reconcile net income to net cash
Provided by (used in) operating activities :
Petty Cash -
Depreciation 13,059
Receivable from Head Office 6,664
Other Liabilities -
Payable to Sonali Bank (135,545)
Payroll Liabilities 649
Remittance payable 173,727
Net cash provided by operating activities 77,202
Cash flow from Investing Activities : -
Fixed assets (16,014)
Security Deposit (6,600)
Net Cash Provided from Investing Activities (22,614)
Financing activities :
Shareholder’s Notes Payable (160,000)
Net Cash Provided from financing activities (160,000)
Net increase and (Decrease) in cash (105,412)
Cash at beginning of the period 3,657,847
Cash at the end of the year 3,552,435


Notes to Financial Statements
(1) Organisation
Sonali Exchange Co., Inc. (the Corporation) is a wholly owned subsidiary of Sonali Bank Ltd.(the parent).The corporation
was incorporated on April 4,1994 under the law of the State of New York . The Corporation was licensed on October 17,
1994 by the State of New York State Department of Financial Services and commenced operations as an international
money transmitter from December 12, 1994. The Corporation is licensed in the State of New York, Georgia, Maryland,
Michigan, and New Jersey.
(2) Summary of significant Accounting Policy
a. Depreciation:
Depreciation of the furniture and fixtures, security system, leasehold improvements and computer equipments are
provided over five years and seven years on the straight-line basis.
b. Taxes:
Income taxes have been calculated as per federal, state and municipal rules. Deferred taxes have not been provided since
there are no timing differences at this time.
c. Accounting Method:
The Financial Statements of the Company are prepared on the accrual basis of the accounting and in accordance with
accounting principles Generally Accepted the United State of America (US. GAAP)
(3) Fixed assets :
2018
$
Furniture 135,199
Security system 20,350
Computer Equipments 171,365
Organization costs 88,059
Leasehold improvements 288,118
Total 703,091
Accumulated depreciation (676,543)
Net assets 26,548
(4) Commitment:
The Corporation has agreed to a license agreement with its sole stockholder which permits it to use the name “Sonali”,
and to have the benefit of certain management and advertising services unique to the sole shareholder. In exchange for
receiving those benefits, the corporation is required to provide a secured interest over all its property, goods and chattels
including but without limitation the security deposit, money transmitter’s licenses, and all goods costs and all acquired
property, goods, and chattels to secure all the present and future liabilities and obligations of this License. As a result of
this agreement and initial inception of the business, transactions have occurred with related parties.These transactions
are not quantified in the financial statements.
(5) Promissory Note:
On September 28, 1994 the Corporation issued a promissory note on demand to Sonali Bank Limited (the Parent) for
$500,000.The Company made final payment on this note on December 2015. During the year 2010,the corporation
borrowed $1,250,000 from the Parent and signed promissory notes. As of December 31,2018 the Corporation owes
$990,000 on principal balance. Sonali Bank( the parent) agreed to charge interest on the principal balance of the note at
rate of 1%.
(6) General and administrative expenses:
New York, Maryland ,New Jersey, Michigan, and Georgia.
2018
Total : $1,744,055
(7) Amendment of the article of the certification of incorporation:
356
Sonali Exchange Co., Inc. was authorized to have the aggregate number of shares 2,500 each having a par value of
$100. On the 18th Board Meeting, Board of Directors agreed to amend 5th article of the certificate of incorporation and
to increase the aggregate number of shares to 10,000 each having a par value of $100. On November 20, 1997, the
Corporation filed amendment to Secretary of State of New York.
(8) Stockholders Equity:
In September 2010,the Corporation sold additional 2,500 shares for $250,000 to the Parent Bank. During 2011,the
Corporation sold additional 1,500 to the parent Bank for $150,000.
(9) Board of Directors :
Following persons are the Board of Directors of the Corporation
Mr. Md. Ashraful Moqbul,Chairman of Sonali Bank Ltd.
Chairman
Mr.Md. Obayed Ullah Al Masud,CEO and Managing Director of Sonali Bank Ltd.,
Director
Mr. Nazem A. Choudhury
Director
Mr. Md. Zahurul Islam, President and CEO ,Sonali Exchang Co., Inc.
Director( Ex Officio)

DOMESTIC BRANCHES OF
SONALI BANK LIMITED
Sl. CORPORATE BRANCHES 12 TEJGAON INDUSTIAL AREA
1 LOCAL OFFICE, DHAKA 13 REGISTRATION COMPLEX
2 BANGABANDHU AVENUE CORP., DHAKA 14 NCTB
3 RAMNA CORP., DHAKA 15 BANGO BHABAN
4 WAGE EARNERS’ CORP., DHAKA 16 RAJUK BHABAN
5 SHILPA BHABAN CORP., DHAKA 17 KRISHI BHABAN
6 DILKUSHA CORP., DHAKA 18 NAGAR BHABAN
7 FOREIGN EXCHANGE CORP., DHAKA 19 KAKRAIL
8 B-WAPDA BHABAN CORP., DHAKA 20 SEGUN BAGICHA
9 SADARGHAT CORP., DHAKA 21 SONARGAON ROAD
10 DHAKA CANTT. CORP., DHAKA 22 SUPREME COURT
11 DU CAMPUS CORP., DHAKA
12 HOTEL SHERATON CORP., DHAKA PRINCIPAL OFFICE : DHAKA SOUTH
13 DHANMONDI CORP., DHAKA 1 AGLA
14 PM OFFICE CAORP., DHAKA 2 ARMANITOLA
15 CHAWKBAZAR CORP., DHAKA 3 ATIBAZAR
16 NARAYANGONJ CORP., NARAYANGONJ 4 BABUBAZAR
17 MYMENSINGH CORP., MYMENSINGH 5 CHURAIN
18 AGRABAD CORP., CHITTAGONG 6 D.C.HALL
19 LALDIGHI CORP., CHITTAGONG 7 DISTILARY ROAD
20 WAGE EARNERS’ CORP., CHITTAGONG 8 FARASHGANJ
21 COMILLA CORP., COMILLA 9 JOYPARA
22 KHULNA CORP., KHULNA 10 KALAKOPA
23 DOULATPUR CORP., KHULNA 11 KALATIA
24 JESSORE CORP., JESSORE 12 KERANIGANJ
25 RAJSHAHI CORP., RAJSHAHI 13 MITFORD ROAD
26 BOGRA CORP., BOGRA 14 LAXMI BAZAR
27 RANGPUR CORP., RANGPUR 15 NAWABGANJ
28 DINAJPUR CORP., DINAJPUR 16 NAYABAZAR
29 BARISAL CORP., BARISAL 17 NAZIRABAZAR
30 SYLHET CORP., SYLHET 18 PALAMGANJ
31 DARGAGATE CORP., SYLHET 19 POSTAGOLA
32 FARIDPUR CORP., FARIDPUR 20 RUHITPUR
21 NAZIM UDDIN ROAD
GENERAL MANAGER’S OFFICE 22 RASULPUR BAZAR
DHAKA-1 23 NORTH SOUTH SARAK
PRINCIPAL OFFICE : BANGABANDHU DHAKA CENTRAL
24 PANGAON ICT BR.
1 BAITUL MOKKARRAM
2 BANANI
PRINCIPAL OFFICE: NARSHINGDI
3 BANANI BAZAR
1 BELABOO
4 BARIDHARA
2 DANGA
5 BANGA BANDHU JATIO STADIUM
3 GHORASAL
6 FARMGATE
4 GORADIA
Sl. NAME OF BRANCH
5 MADHABDI
7 GULSHAN
6 MONOHARDI
8 GULSHAN NEW NORTH CIRCLE
7 NARAYANPUR BAZAR
9 KAWRAN BAZAR
8 NARSINGDI
10 MOHAKHALI
9 PALASH
11 SONARGAON HOTEL
358
ADDITIONAL INFORMATION
10 PANCHDONA
3 BAWANINAGAR
11 PUTIA
4 DAYAGONJ
12 RAIPURA
5 FAKIRAPOOL
13 RAMPUR BAZAR
6 GORAN
14 SAIDABAD
7 JATRABARI
15 SATIRPARA
8 KHILGAON
16 SHIBPUR
9 MALIBAGH
17 BHAKHAN NAGAR
10 RAMPURA
18 COURT BUILDING
11 SHAHJAHANPUR
19 BELTALI BAZAR
12 BASHABO
20 PORADIA BAZAR
13 KAMALAPUR RAILWAY STATION ICD
21 HATIRDIA BAZAR
14 SAIDABAD BUS TERMINAL
15 AWLAD HOSSAIN MARKET
PRINCIPAL OFFICE: GAZIPUR
16 VIKARUNNISSA NOON SCHOOL
1 STATION ROAD
17 ISHWAR CH.STREET
2 BSIC INDUSTRIAL AREA
18 NOWABPUR ROAD
3 TONGI
19 WARI
4 TONGI BAZAR
5 B.A.R.I.
PRINCIPAL OFFICE: DHAKA WEST
6 B.R.R.I
1 PUBLIC SERVICE COMMISSION
7 BHAWAL JAMALPUR
2 GANA BHABAN
8 BOF GAZIPUR CANTONMENT
3 GREEN ROAD
9 GAZIPUR COURT BUILDING
4 KALLYANPUR
10 JOYDEVPUR
5 MANIK MIAH AVENUE
11 KALIAKOIR
6 COLLEGE GATE
12 KALIGANJ
7 B.I.S.E.
13 KAPASIA
8 B.M.E.B.
14 PUBAIL BAZAR
9 B.U.E.T.
15 RAJENDRAPUR CANTONMENT
10 NEW MARKET
16 BARMI BAZAR
11 JHIKATALA
17 SREEPUR THANA HEAD QUARTER
Sl. NAME OF BRANCH
18 GAZIPUR SADAR UPAZILLA COMPLEX
12 LALMATIA
19 SHAFIPUR ANSAR ACADEMY COMPLEX
13 MOHAMMADPUR BAZAR
20 SINGSREE BAZAR
14 JATIO SANGSHAD BHABAN
21 JATIO BISWABIDDALAYA
15 SATMASJID ROAD
22 B.B.SK.MUJIB KRISHI BISWABIDDALAYA
16 BAJME KADERIA COMPLEX
17 AGARGAON
REGIONAL OFFICE: MANIKGONJ
18 AGRANI BALIKA BIDYALAYA
1 BALIRTEK BAZAR
19 HAZARIBAG BRANCH
2 DARGRAM
20 KRISHI BAZAR
3 DAULATPUR
21 LALBAG ROAD (DHAKA)
4 GHIOR
22 MOKIMKATRA
5 HARIRAMPUR
23 URDU ROAD
6 MANIKGANJ
7 MANIKGANJ UPAZILLA
PRINCIPAL OFFICE: MIRPUR
8 SATURIA
1 KURMITOLA
9 SHIVALAYA
2 NEVAL HEAD QUARTER
10 SINGAIR
3 UTTARA MODEL TOWN
11 CHANDAHAR
4 SHAHJALAL INTERNATIONAL AIRPORT
5 IBRAHIMPUR
GENERAL MANAGER’S OFFICE
6 CUSTOM HOUSE BRANCH,KURMITOLA
DHAKA-2
PRINCIPAL OFFICE: DHAKA EAST 7 UTTARKHAN BRANCH
1 BADDAH 8 ASHULIA BAZAR BR.
2 MOGH BAZAR 9 AMIN BAZAR

10 DHAMRAI GENERAL MANAGER’S OFFICE

11 MIRPUR SECTION-1 MYMENSINGH
PRINCIPAL OFFICE : MYMENSINGH
12 NAYARHAT
1 MATHSHA GABESHANA INSTITUTE
13 PATC (SAVAR)
2 ASIM BAZAR
14 KALAMPUR BAZAR
3 BALIA BAZAR
15 MIRPUR CANTONMENT
4 BHALUKA
16 MIRPUR SECTION-12
5 CHAR NILOKHIA
17 SAVAR
6 FULBARIA
18 SAVAR CANTONMENT
7 GAFFARGAON
19 BEGUM ROKEYA SHARANI
8 GAYESPUR
20 MIRPUR SHILPA ELAKA
9 GOURIPUR
21 DHAKA RAPTANI PRAKRIAKARAN ALAKHA
10 HALUAGHAT
11 ISWARGONJ
PRINCIPAL OFFICE: NARAYANGONJ
12 KESHORGONJ BAZAR
1 ARAIHAZAR
13 MUKTAGACHA
2 GODNAIL
14 MYMENSINGH
3 FATULLAH
15 MYMENSINGH BUSINESS CENTRE
4 DHARMAGANJ
Sl. NAME OF BRANCH
5 DHUPTARA
16 NANDAIL
6 GOPALDI BAZAR
17 PADURBARI
7 KURIPARA
18 PHULPUR
8 LADIES BRANCH
19 BINA
9 MADANGANJ
20 SHIBGONJ
Sl. NAME OF BRANCH
21 TARERGHAT
10 MUGRAPARA
22 TRISHAL
11 NABIGANJ
23 DOBAURA
12 NARAYANGANJ DOCK YARD
24 TARAKANDA
13 NETAIGANJ
25 JATIO KOBI KAZI NAZRUL ISLAM UNI.
14 PUNCHRUKHI
15 RUPGANJ
PRINCIPAL OFFICE : JAMALPUR
16 SONARGAON
1 BAKSHIGONJ
17 TARABOO BAZAR
2 BSCI INDUSTRIAL ESTATE
18 BANDAR BRANCH
3 CHAPARKONA
4 DEWANGONJ BAZAR
PRINCIPAL OFFICE: MUNSHIGONJ
5 DEWANGONJ SUGAR MILL
1 BALURCHAR
6 HAZRABARI
2 BASAIL
7 ISLAMPUR
3 BHABERCHAR
8 JAMALPUR
4 DIGHOLI BAZAR
9 JAMALPUR BAZAR
5 GAZARIA
10 BARO MASJID ROAD
6 MAWYA
11 MADERGONJ
7 HALDIA BAZAR
12 MEDICAL ROAD
8 KEYAIN
13 MELANDAH
9 MUNSHIGANJ
14 NANDINA
10 REKABIBAZAR
15 SANANDABARI
11 SHEKHAR NAGAR
16 SHARISHABARI
12 SIRAJDEE KHAN
17 SHARISHABARI THANA HEAD QUARTER
13 SREE NAGAR
18 SREEPUR KUMARIA BAZAR
14 SYEDPUR
19 JAMUNA SAR KARKHANA
15 TALTALA
16 TONGIBARI
PRINCIPAL OFFICE: KISHORGONJ
17 SUKHBASHPUR
1 AUSTAGRAM
2 BAJITPUR
360
3 BHAIRAB 5 NAYANI BAZAR

4 CHAYSHUTI 6 SREEBORDI
5 DOMRAKANDA 7 SURJADI BAZAR
6 HOSSAINPUR 8 KORTIMARI BAZAR
7 ITNA 9 RAJIBPUR
8 KALIACHAPRA 10 ROWMARI
9 KARIMGONJ 11 KORTIMARI BAZAR
10 KATIADI
11 KISHOREGONJ REGIONAL OFFICE : NETROKONA
12 KULIARCHAR 1 ATPARA
13 MITAMAIN 2 BARHATTA
14 NIAMATPUR 3 DURGAPUR
Sl. NAME OF BRANCH 4 KALMAKANDA
15 NIKLY 5 KENDUA
16 PAKUNDIA 6 KHALIAJHURI
17 TARAIL 7 LEPSIA
8 MADAN
PRINCIPAL OFFICE : TANGAIL 9 MADANPUR
1 BARATI BAZAR 10 MOHANGONJ
2 BASHAIL 11 NETROKONA
3 BHUAPUR 12 PURBADHALA
4 DELDUAR 13 THAKURKONA BAZAR
5 DHANBARI 14 HOGLA BAZAR
6 DIST. HEAD QUARTER
7 FALDA BAZAR GENERAL MANAGER’S OFFICE
8 GHATAIL FARIDPUR
PRINCIPAL OFFICE : FARIDPUR
9 GOBINDASHI
1 ALFADANGA
10 GOPALPUR
2 BHANGA
11 GORAI
3 BISWA ZAKIR MANJIL
12 KALIHATI
4 BOALMARI
13 KENDUA BAZAR
5 SADAR UPAZILLA COMPLEX
14 BALLA BAZAR
6 CHAR BHADRASAN
15 LADIES BRANCH
7 COURT BUILDING
16 LOWHATI
8 FARIDPUR
17 MIRZAPUR
9 GOALCHAMAT
18 MODHUPUR
10 HAJIGONJ
19 MOHANPUR
11 HATKRISHNAPUR
20 NAGARPUR
12 KAMARKHALI
21 NIKRAIL
13 KANAIPUR
22 PAKUTIA
14 KHALILPUR
23 SHAKHIPUR
15 MADHUKHALI
24 TANGAIL
16 MADHUKHALI U.Z.C.
25 TANGAIL BAZAR
17 NAGARKANDA
26 VICTORIA ROAD
18 SADARPUR
27 SHAHID SALAHUDDIN CANTT.GHATAIL
19 SHIRGRAM
28 NALIN BAZAR
20 TALMA
29 MOULANA BHASANI SCIENCE AND TECH.
21 TEPAKHOLA
30 GARO BAZAR
22 MOYENDA BAZAR
23 SALTHA BAZAR
REGIONAL OFFICE : SHERPUR
1 SHERPUR
PRINCIPAL OFFICE : MADARIPUR
2 JHENAIGATI
1 ANGARIA BAZAR
3 NAKHLA
2 BHEDARGONJ
4 NALITABARI

3 CHAR MUGURIA 12 AMJHUPI

Sl. NAME OF BRANCH 13 GARADOB BAZAR
4 DAMUDDYA 14 GANGNI
5 GOSAIRHAT 15 GANGNI THANA HEAD QUARTER
6 JAJIRA 16 JOREPUKURIA
7 KALKINI 17 MEHERPUR
8 KULPADDI 18 MEHERPUR COURT BUILDING
9 PAURASHAVA 19 MUJIBNAGAR
10 MADARIPUR 20 COURT BUILDING
11 MILLGATE
12 NARIA REGIONAL OFFICE :GOPALGONJ
13 RAJOIR 1 GOPALGONJ
14 SARIATPUR 2 BHATIAPARA
15 SHIBCHAR 3 BOLTALI
16 TEKERHAT 4 GHAGOIR
17 DATTAPARA BAZAR BRANCH 5 KASHIANI
6 BANOGRAM BAZAR
PRINCIPAL OFFICE : KUSHTIA 7 D.C COMPLEX
1 AMLA 8 MOKSEDPUR
2 BHERAMARA 9 PANCHURIA
3 BHERAMARA POWER STATION 10 PATGATI
4 COURT BUILDING 11 TONGIPARA
5 DAULATPUR 12 BASBARIA BAZAR
6 DOHAKULA
7 EKTERPURHAT REGIONAL OFFICE : RAJBARI
8 HALSHA 1 BAHARPUR
9 HARINARAYANPUR 2 BALIAKANDI
10 KUSHTIA SUGAR MILLS 3 BELGACHI
11 KAYA BAZAR 4 GOALUNDO
12 KHOKSHA 5 GOALUNDO UPOZILLA COMPLEX
13 KUMARKHALI 6 KASBA MAJAIL
14 KUMARKHALI UPA ZILLA COMPLEX 7 MACHPARA
15 KUSHTIA 8 PANGSHA
16 MIRPUR 9 PUNGSHA UPOZILLA COMPLEX
17 MODHUPUR BAZAR 10 RAJBARI
18 N.S.ROAD 11 RAJBARI UPOZILLA COMPLEX
19 PORADAH 12 KALUKHALI
20 SAMOSPUR
21 PASHCHIM ABDALPUR GENERAL MANAGER’S OFFICE
22 NANDALALPUR CHATTOGRAM
PRINCIPAL OFFICE : CHATTOGRAM NORTH
1 AMIN JUTE MILLS
PRINCIPAL OFFICE : CHUADANGA
2 ASADGONJ
1 ALAMDANGA
3 BAHADDARHAT
2 CHUADANGA
4 CHAKTAI
3 DAMURHUDA
5 CHATTOGRAM CANTONMENT
4 DARSANA
6 CHOWKBAZAR
5 DINGIADAH
7 COURT HILLS
6 GOKULKHALI BAZAR
8 JAMALKHAN ROAD
Sl. NAME OF BRANCH
9 KAGATIAHAT
7 HATBOALIA
10 KALURGHAT INDUSTRIAL ESTATE
8 JIBANNAGAR
11 KHATUNGONJ
9 MUNSHIGONJ
12 KURBANIGONJ
10 SAROJGONJ
13 MOHAMMAD TAKIRHAT
11 UTHALI
14 PUNCHLAISH
362
15 RAUZAN 13 LANGADU
16 CHATTOGRAM MEDICAL COLLEGE 14 LAXMICHARI
17 SIRAJUDDOWLA ROAD 15 MAHALCHARI
18 TERRI BAZAR 16 MANIKCHARI
19 NA CHOWDHURY ROAD 17 MATIRANGA
20 FAKIRHAT BRANCH 18 NANIARCHAR
21 HATHAZARI 19 NEW COURT BUILDING
22 KALUMUNSHIRHAT 20 PANCHARI
23 NANGOLMORA 21 RAJASTHALI
24 FATIKCHARI 22 RAMGARH
23 RANGAMATI
PRINCIPAL OFFICE: CHATTOGRAM SOUTH 24 GUIMARA
1 B.I.D.C.STEEL PLANT
2 BANUR BAZAR PRINCIPAL OFFICE : PATIYA
3 BHATIARY 1 ANOWARA
4 CDA MARKET 2 BANSHKHALI
5 CUSTOM HOUSE 3 BOALKHALI
6 KALIBARI 4 CHANDANAISH
7 CDA RESIDENTIAL AREA 5 DOHAZARI
8 MAJIRGHAT 6 KALARPOLE
9 MARIAMNAGAR 7 KHAN BAHADUR BAZAR
10 MIRSARAI 8 LOHAGARA
11 NEW MARKET 9 MOULVI BAZAR
12 NIZAMPUR 10 PATIYA
13 CUET Sl. NAME OF BRANCH
14 PAHARTALI MAIN ROAD 11 ROWSHANHAT
15 PORT BRANCH 12 RUSTOMHAT
16 RAILWAY BUILDING 13 SATKANIA
17 RANGUNIA
18 REAZUDDIN BAZAR REGIONAL OFFICE : COX’S BAZAR
Sl. NAME OF BRANCH 1 BADARKHALI
19 ROAZARHAT 2 CHAKARIA
20 SADARGHAT 3 COX'S BAZAR
21 SANDVIP 4 DULAHAZARA
22 SITAKUNDA 5 KUTUBDIA
23 CHATTOGRAM UREA FERTILIZER LTD. 6 MOHESHKHALI
24 SHAH AMANAT (R:) INT. AIRPORT 7 RAMU
25 MIDAGALI 8 TEKNAF
26 HALISHAHAR HOUSING ESTATE 9 UKHIYA
27 MARINE ACADEMY 10 EIDGHAH
PRINCIPAL OFFICE : RANGAMATI REGIONAL OFFICE : BANDARBAN

1 BAGAICHARI 1 ALI KADAM
2 BANARUPA 2 BANDARBON
3 BARAICHARI 3 LAMA
4 BARKAL 4 NAIKHANGCHARI
5 BELAICHARI 5 ROWANGCHARI
6 CHANDRAGHONA 6 RUMA
7 DIGHINALA 7 THANCHI
8 GHAGRA
9 JURACHARI GENERAL MANAGER’S OFFICE
10 KAPTAI COMILLA
PRINCIPAL OFFICE : COMILLA
11 KAWKHALI
1 ADDA BAZAR
12 KHAGRACHARI

2 BISE (COMILLA) 19 PAURA BIPANI BITAN

3 BARURA 20 SAGORIA BAZAR
4 BRAHMANPARA 21 SEBARHAT
5 BURICHONG 22 SENBAGH
6 CHANDINA 23 SHAHAPUR
7 CHOWDDAGRAM 24 SONAIMURI
8 COMILLA CANTONMENT 25 SONAPUR OLD TOWN
9 COURT BUILDING 26 TAMARUDDI
10 DAUDKANDI 27 ZAMINDARHAT
11 DAULATGONJ 28 HATIYA THANA PARISAD
12 DEBIDWAR
13 ELIOTGONJ PRINCIPAL OFFICE : FENI
14 GOURIPUR BAZAR 1 BAKTERMUNSHI
15 HOMNA 2 CHHAGOLNAIYA
16 KONGSHANAGAR 3 DAGAN BHUIYAN
17 KOTBARI 4 FENI
18 MURADNAGAR 5 FULGAZI
Sl. NAME OF BRANCH 6 GUTHUMA BAZAR
19 NANGALKOT 7 ISLAMPUR ROAD
20 NOYABAZAR 8 LAMUA BAZAR
21 PAYALGACHA 9 LASHKER HAT
22 RAIPUR BAZAR 10 MAHIPAL
23 RAMMOHAN BAZAR 11 MATIAGODHA
24 COMPANYGANJ BAZAR 12 MUNSHIRHAT
25 SREEKAIL 13 PANCHGACHIA
26 STATION ROAD,COMILLA 14 PARSHURAM
27 SUAGAZI 15 SADAR UPAZILA COMPLEX
28 WAPDA BUILDING,COMILLA 16 SILONIA BAZAR
29 BHARASAR BAZAR 17 SONAGAZI
30 PARAMTALA
31 MEGNA BR. PRINCIPAL OFFICE : CHANDPUR
32 COMILLA SADAR DAKKHIN UPOZILA BR. 1 ALIGANJ
33 MONOHORGONJ BR. 2 CHANDPUR
34 TITAS 3 FARAJIKANDI
4 FARIDGANJ
PRINCIPAL OFFICE: NOAKHALI 5 GAZIPUR
1 AMANULLAHPUR 6 HAIMCHAR
2 BASHURHAT 7 HAZIGANJ
3 CHAPRASHIRHAT 8 KACHUA
4 CHAR BATA 9 KHILA BAZAR
5 SUBARNA CHAR 10 NATUN BAZAR
6 CHAR MATUA 11 MOTLABGANJ
7 CHATKHIL 12 NABIPUR
8 CHAUDHURYHAT 13 KALIAPARA
9 CHAUMUHANI 14 PURANBAZAR
10 CHHAYANI BAZAR 15 RAHIMANAGAR
11 COLLEGE ROAD 16 SACHAR BAZAR
12 DAYARAMDI 17 SHAHRASTI
13 HATIYA 18 SHOLAGHAR
14 KALAMUNSHI BAZAR 19 WARUK
15 KANKIRHAT 20 SENGAR CHAR
16 KHALIFERHAT
17 MAIJDEE BAZAR
18 MAIJDEE COURT
364
PRINCIPAL OFFICE : B-BARIA 10 DHAKA DAKSHIN

1 AKHAURA 11 FENCHUGONJ SAR KARKHANA
2 ASHUGONJ 12 GOLAPGONJ
3 BANCHARAMPUR 13 GOWAINGHAT
4 BRAHMANBARIA 14 JAINTAPUR
Sl. NAME OF BRANCH 15 JAKIGANJ
5 CHANDPUR BAZAR 16 KAJAL HAOR
6 ZIA SARKARKHANA 17 KAMAL BAZAR
7 CHATALPAR BAZAR 18 KANAIGHAT
8 FANDAUK 19 KHADIMNAGAR
9 GOKARNAGHAT 20 MOHAJANPATTY
10 HARINBAR BAZAR 21 OSMANI AIRPORT
11 KOSBA 22 FENCHUGONJ
12 KUTIBAZAR 23 PIRER BAZAR
13 T.A. ROAD 24 CITY CORP.
14 MEDDA 25 STATION ROAD
15 NABINAGAR 26 SYLHET CANTONMENT
16 NASIRNAGAR 27 TAJPUR
17 NEW MARKET 28 TIKARPARA
18 RASULLABAD 29 TILLAGARH
19 RUPASDI BAZAR 30 SHAHJALAL UNIVERSITY OF SCIENCE & TEC
20 SARAIL
21 SHYMAGRAM PRINCIPAL OFFICE : MOULVIBAZAR
22 SINGERBIL 1 BARLEKHA
23 MIRASHANI 2 BHAIRABGONJ BAZAR
24 BIJOYNAGAR 3 CHANDGRAM
4 CHANDNIGHAT
REGIONAL OFFICE : LAXMIPUR 5 DIGHIRPAR BAZAR
1 BHAWANIGANJ BAZAR 6 FOREIGN EXCHANGE
2 CHANDRAGANJ 7 KADAMHATA
3 CHAR ALEXANDER 8 KAMALGONJ
4 CHAR LORENCE 9 KAMALPUR BAZAR
5 CHAR SITA 10 KULAURA
6 HAIDERGANJ 11 COURT ROAD
7 HAJIR HAT 12 MOULVIBAZAR
8 KANCHANPUR 13 MUNSHIBAZAR
9 LAXMIPUR 14 PHULARTAL BAZAR
10 RAIPUR 15 RAJNAGAR
11 RAKHALIA BAZAR 16 SARKER BAZAR
12 RAMGANJ 17 SATGAON
18 SHAHBAZPUR
GENERAL MANAGER’S OFFICE 19 SHAMSHERNAGAR
SYLHET 20 SREEMONGAL
PRINCIPAL OFFICE : SYLHET
21 TARAPASHA BAZAR
1 AMJAD ALI ROAD
22 JURI BR.
2 BAIRAGIR BAZAR
3 BALAGONJ
REGIONAL OFFICE : SUNAMGONJ
4 BEANIBAZAR
1 BISWAMVARPUR
5 BISWANATH
2 CHHATAK
6 CHARKHAI
3 DERAI
7 COMPANYGANJ
4 DHARMAPASHA
8 COURT BUILDING
5 DOWARA BAZAR
9 DAKSHIN FENCHUGONJ
6 JAGANNATHPUR
Sl. NAME OF BRANCH

7 MADHYANAGAR 29 C & B ROAD

8 SACHNABAZAR 30 TORKEY BANDAR
9 SULLAH 31 WAZIRPUR
10 SUNAMGANJ 32 MOLLAR HAT
11 TAHIRPUR 33 ARATDHAR PATTY
12 DAKKHAIN SUNAMGONJ 34 PAISARHAT
35 BARISAL UNIVERSITY
PRINCIPAL OFFICE : HABIGONJ 36 KAZIR HAT
1 AJMIRIGANJ
2 BAHUBAL PRINCIPAL OFFICE : PATUAKHALI
3 BANIYACHONG 1 AMTALI
4 CHUNARUGHAT 2 BAKULBARIA
5 HABIGANJ 3 BAMNA
6 KAKAILCHAO 4 BARGUNA COURT BUILDING
7 LAKHAI 5 BAUPHAL
8 MADHABPUR 6 BETAGI
9 NABIGANJ 7 BOGA BANDAR
10 SHAISTAGANJ 8 DASHMINA
11 ENATGONJ 9 GALACHIPA
12 CHOWDHURY BAZAR 10 KALAPARA BANDAR
13 AUSHKANDI 11 MOHIPUR
12 MOUKARAN BAZAR
GENERAL MANAGER’S OFFICE 13 NEW TOWN
BARISAL 14 PATHARGHATA
PRINCIPAL OFFICE : BARISAL
15 PATUAKHALI
1 AGAILJHARA
16 SUBIDKHALI
2 BAKERGONJ
17 ULANIA BAZAR
3 BANARIPARA
18 DUMKI
4 BARISAL CADET COLLEGE
19 PAYRA BANDAR
5 CHAKHAR
6 CHARAMUDDI
REGIONAL OFFICE : BHOLA
7 CHOWK BAZAR
1 BHOLA
8 COLLEGE ROAD
2 BORHANUDDIN
9 DHAMURIA
3 CHARFASHION
10 GOILA
4 DAULATKHAN
11 GOURNADI
Sl. NAME OF BRANCH
12 GUTHIA
5 GAZARIA
13 HALTABANDAR
6 LALMOHAN
14 HIZLA
7 MOHAJANPATTY
15 JHALAKATI COURT BUILDING
8 MONPURA
Sl. NAME OF BRANCH
9 NORTH DIGHOLDI
16 KAMARKHALI
10 TAJUMUDDIN
17 KATHALIA
18 KHANPURA
REGIONAL OFFICE : PIROJPUR
19 MEDAKUL
1 BHANDARIA
20 MEHENDIGONJ
2 ZIANAGAR
21 MULADI
3 KOWKHALI
22 NACHAN MAHAL
4 MATHBARIA
23 NALCHIRA
5 NAZIRPUR
24 NALCHITY
6 PARERHAT
25 NEAMATI BANDAR
7 PIROJPUR
26 RAJAPUR
8 SREERAMKATI
27 SAGARDI
9 SWARUPKATI
28 SHAHEBERHAT
10 TUSHKHALI
366
GENERAL MANAGER’S OFFICE 29 RUPDIA

KHULNA 30 SALUA BAZAR
PRINCIPAL OFFICE : KHULNA
31 SARSHA
1 BANIAKHALI BAZAR
32 TRIMOHONI
2 BATIAGHATA
33 ULASHI
3 BOYRA
34 KHAZURA BAZAR
4 CHALNA BAZAR
5 CUSTOM HOUSE
PRINCIPAL OFFICE : SATKHIRA
6 DAULATPUR COLLEGE ROAD
1 ASSASUNI
7 DIGHOLIA
2 BUDHATA
8 DUMURIA
3 DEBHATTA
9 K.D.A.NEW MARKET
4 GOYRAH BAZAR
10 KAZDIA
5 KUMIRA BAZAR
11 KHALISHPUR
6 JHAUDANGA
12 KHULNA SHIPYARD
7 KALAROA
13 KOYRA
8 KALIGONJ
14 PAIKGACHA
9 KAMAN NAGAR
15 PHULBARIGATE
10 KHALISHKHALI BAZAR
16 PHULTALA
11 KULIA BAZAR
17 RUPSA MARKET
12 MAGURA BAZAR
18 SHAHPUR
13 PARULIA
19 SHIROMONI INDUSTRIAL AREA
Sl. NAME OF BRANCH
20 TEROKHADA
14 SATKHIRA
21 SIR IQBAL ROAD
15 SHYAMNAGAR
16 TALA
PRINCIPAL OFFICE : JESSORE
17 BHOMRA BR. SATKHIRA
1 ALFA MILLGATE
Sl. NAME OF BRANCH
PRINCIPAL OFFICE : JHENAIDAH
2 BAGANCHRA
1 BARO BAZAR
3 BAGHERPARA
2 BARODHOPADI BAZAR
4 BARINAGAR
3 BUNAGATI BAZAR
5 BASUNDIA
4 GARAGONJ
6 BENAPOLE
5 HARINAKUNDU
7 BHATPARA
6 HATGOPALPUR
8 CHARAVITA
7 JHENAIDAH
9 CHINATOLA
8 JHENAIDAH CADET COLLEGE
10 SAGARDARI BAZAR
9 KALIGONJ
11 CHOWGACHA
10 KOLABAZAR
12 CHURAMANKATI
11 KOTCHANDPUR
13 DHALGRAM
12 LADIES BR.
14 GARIBSHAH SARAK
13 MAGURA
15 JESSORE BAZAR
14 MOBARAKGONJ SUGAR MILL
16 JESSORE CANTT.
15 MODHUPUR
17 JHIKARGACHA
16 MOHAMMADPUR
18 KARBALA ROAD
17 MOHESHPUR
19 KESOBPUR
18 NUTAN BAZAR
20 MONIRAMPUR
19 RABINARIKELBARIA
21 NARIKELBARIA
20 SAILKUPA
22 BISE
21 SHALIKHA
23 NOAPARA
22 SHEIKHPARA BAZAR
24 PAR BAZAR
23 SREEPUR
25 PURAPARA
26 R.N.ROAD
REGIONAL OFFICE : BAGERHAT
27 RAIL GATE
1 BAGERHAT
28 RAJGONJ

2 CHITALMARI BAZAR PRINCIPAL OFFICE : NAOGAON

3 FAKIRHAT 1 ABADPUKURHAT
4 GILATALA 2 ATRAI
5 GOURAMBHA BAZAR 3 BADALGACHI
6 KACHUA 4 BHANDERPUR
7 MAIN ROAD 5 BHAWANIPUR BAZAR
8 MOLLAHAT 6 DHAMOIRHAT
9 MONGLA 7 K. D. MORE
10 MORELGONJ Sl. NAME OF BRANCH
11 RAMPAL 8 MANDA
12 RAYENDA BAZAR 9 MOHADEVPUR
13 MONGLA PORT 10 MOHISHBATHAN
14 COURT BUILDING 11 MONGALBARIHAT
12 NAOGAON
REGIONAL OFFICE : NARAIL 13 NIAMATPUR
1 CHACHURI BAZAR 14 PATNITALA
2 GOBRA 15 PORSHA
3 KALIA 16 RANINAGAR
4 ZILA PARISHAD 17 SAPAHAR
5 LAXMIPASHA 18 T.T.D.C.
6 MOHAJAN BAZAR 19 TRIMOHONI
7 NARAIL
8 PIROLI BAZAR PRINCIPAL OFFICE : PABNA
9 RUPGONJ 1 ARAMBARIA
10 TULARAMPUR 2 ATGHORIA
11 LOHAGARA BAZAR 3 BAGHOIL
4 BANWARINAGAR
GENERAL MANAGER’S OFFICE 5 BERA
RAJSHAHI 6 BHANGOORA BAZAR
PRINCIPAL OFFICE : RAJSHAHI
7 CHATMOHAR
1 BAGHA
8 DASURIA
2 BHAWANIGONJ
9 EKDANTA
3 CHARGHAT
10 GOPALPUR (Z.B.)
4 DAKRA
11 ISHURDI
5 MOUGACHI BAZAR
12 JORGACHA
6 DURGAPUR
13 PABNA TRADE CENTRE
7 GODAGARI
14 PABNA
8 GREATER ROAD
15 SANTHIA
9 MOHANPUR
16 SUZANAGAR
10 MONIGRAM
17 ANANTA BAZAR
11 MOTIHAR
18 KARANJA BAZAR
12 PABA
13 POLICE ACADEMY
PRINCIPAL OFFICE : SIRAJGONJ
14 PUTHIA (RAJSHAHI)
1 BAGHABARIGHAT
15 RAJSHAHI CADET COLLEGE
2 CHANDAIKONA
16 RAJSHAHI COURT BUILDING
3 CHOWBARI
17 RAJSHAHI MEDICAL COLLEGE HOSPITAL
4 DHANGARA
18 SAPURA INDUSTRIAL ESTATE
5 ENAYETPUR
19 TANORE
6 JAMTOIL
20 RAJSHAHI RAILWAY COMPLEX
7 KAZIPUR
21 KASBA TANGRAMARY
8 KHASH KAWLIA
22 MUNDUMALAHAT
9 LAHIRI MOHANPUR
10 NAOGAON BAZAR
11 QUAMI JUTE MILLS
368
12 SHAHZADPUR 8 LALPUR
Sl. NAME OF BRANCH 9 NATORE
13 SHOHAGPUR 10 NATORE STATION BAZAR
14 SIRAJGANJ 11 FULBAGAN
15 SONAMUKHI 12 SINGRA
16 TARASH 13 NOLDHANGA HAAT
17 ULLAPARA
18 SIRAJGANJ COURT BHABAN REGIONAL OFFICE : JOYPURHAT
19 HATIKUMRUL 1 AKKELPUR
20 NATUAR PARA 2 HATIL
21 SADANANDAPUR 3 JOYPURHAT
4 JOYPURHAT EAST
PRINCIPAL OFFICE : BOGRA 5 KALAI
1 ADAMDIGHI 6 KHETLAL
2 AZIZUL HOQUE COLLEGE 7 PANCHBIBI
3 B.P.U.A 8 PUNATHAT
4 BALUAHAT
5 BOGRA BAZAR REGIONAL OFFICE : CHAPAINAWABGONJ
6 BOGRA CANTONMENT 1 BHOLAHAT
7 COLLEGE ROAD 2 CHAPAINAWABGONJ
8 DHUNAT 3 GOMASTAPUR
9 DUPCHANCHIA 4 NEW MARKET
10 DURGAPUR 5 NACHOLE
11 GABTALI 6 ROHANPUR
12 GANG NAGAR 7 SHIBGONJ
13 GOHAIL ROAD 8 SONA MASJID
14 GOHAILHAT
15 GUZIA GENERAL MANAGER’S OFFICE
16 HARIKHALIHAT RANGPUR
PRINCIPAL OFFICE : RANGPUR
17 JAMURHAT
1 BADARGONJ
18 KAHALOO
2 CHATRAHAT
19 NAMUZAHAT
3 DHAP
20 NANDIGRAM
4 GANGACHARA
21 NASHARATPUR
5 HARAGACHA
22 RANABAGHA BAZAR
6 MAHIGONJ
23 SANTAHAR
7 JAIGIRHAT
24 SHARIAKANDI
8 KACHARIBAZAR
25 SHERPUR
9 KAWNIA
26 SHERPUR ROAD
10 KHALASHPIR
27 SHIBGONJ
11 RANGPUR BAZAR
28 SONATALA
12 LALDIGHIHAT
29 TALORA
Sl. NAME OF BRANCH
30 SHAHAR PUKUR
13 MIRBAGH
31 SHAHID ZIAUR RAHMAN MEDICAL COLLEGE
14 MITHAPUKUR
15 PIRGACHA
PRINCIPAL OFFICE : NATORE
16 PIRGONJ
1 AHMEDPUR
17 RANGPUR CANTONMENT
2 BAGATIPARA
18 TARAGANJ
3 BARAIGRAM
Sl. NAME OF BRANCH
PRINCIPAL OFFICE : KURIGRAM
4 CHANCHKOIR
1 ADITHMARI
5 DAYARAMPUR
2 BARABARIHAT
6 GURUDASHPUR
3 BHURUNGAMARI
7 OLD BUS STAND

4 CHILMARI 21 HUGLI PARA .

5 FULBARI 22 PHULBARI
6 HATIBANDHA 23 PULHAT BRANCH
7 KALIGANJ 24 RANIGONJ BAZAR
8 KURIGRAM 25 SETABGONJ
9 LALMONIRHAT 26 SHEIKHPURA
10 MOHISH KHOCHA 27 STATION ROAD
11 NAGESWARI 28 SUIHARI
12 PATGRAM 29 MADDHAPARA KATHIN SHILA PRAKALPA
13 RAJARHAT 30 BARA PUKURIA KOYLAKHANI PRAKALPA
14 ULIPUR 31 SHAHID MAHBUB SENANIBASH SHAKHA
15 BURIMARI
16 KAKINA BAZAR PRINCIPAL OFFICE : THAKURGAON
1 AKHANAGAR
PRINCIPAL OFFICE : GAIBANDHA 2 ATWARI
1 BHARATKHALI 3 BALIADANGI
2 BIRATHAT Sl. NAME OF BRANCH
3 BONARPARA 4 BHAJANPUR
4 FASHITOLA 5 BODA
5 FULCHARI 6 CHOWDHURYHAT
6 GAIBANDHA 7 DEBIGONJ
7 GOBINDAGONJ 8 GOREYAHAT
8 KAMARJANI 9 HARIPUR
9 KAMDIA 10 KHOCHABARIHAT
10 D. B. ROAD 11 NEEKMARAD
11 MOHIMAGONJ 12 PANCHAGARH
12 PALASHBARI 13 PIRGONJ
13 PURANBAZAR 14 RANISANKAIL
14 SADULLAPUR 15 RUHIA
15 SHAGHATA 16 SHIBGONJ
16 SUNDARGONJ 17 TETULIA
18 THAKURGAON
PRINCIPAL OFFICE : DINAJPUR 19 THAKURGAON SUGAR MILLS
1 AFTABGONJ 20 ZABARHAT
2 BHAWANIPUR BAZAR 21 SHABDAL HAT
Sl. NAME OF BRANCH
3 BINNA KURI REGIONAL OFFICE : NILPHAMARI
4 BIRAMPUR 1 BHABANIGONJ
5 BIRGONJ 2 CHILAHATI
6 BIROL 3 DIMLA
7 CHIRIR BANDAR 4 DOMAR
8 COURT BUILDING 5 JALDHAKA
9 FARAKKABAD 6 KISHOREGONJ
10 GHORAGHAT 7 MIRGONJ
11 HAKIMPUR 8 NILPHAMARI
12 JOYNANDAHAT 9 SAIDPUR
13 KACHINIAHAT 10 SAIDPUR CANTONMENT
14 KAHAROLE
15 KHANSAMA
16 MILL ROAD
17 NAWABGONJ
18 OSMANPUR
19 PAKERHAT
20 PARBATIPUR
370
AUTHORISED DEALER BRANCHES

OF SONALI BANK LIMITED
S/N BRANCH NAME AD BR. CODE SWIFT CODE
1 AGRABAD CORPORATE, CHITTAGONG 0342 BSONBDDHAGR
2 B-WAPDA CORPORATE, DHAKA 0360 BSONBDDHBWP
3 BANGABANDHU AVENUE CORPORATE, DHAKA 0338 BSONBDDHBBA
4 BAHADDARHAT, CHITTAGONG 0367 BSONBDDHBHT
5 BOGRA CORPORATE, BOGRA 0357 BSONBDDHBOG
6 BRAHMANBARIA, BRAHMANBARIA 0375 BSONBDDHBRM
7 CHANDPUR, CHANDPUR - --
8 CHAPAINAWABGONJ, CHAPAINAWABGONJ 0363 BSONBDDHCHP
9 CHAWKBAZAR, DHAKA 0335 BSONBDDHCWK
10 CHATAK, SUNAMGONJ 0374 BSONBDDHCTK
11 COMILLA CORP., COMILLA 0350 BSONBDDHCCB
12 DARGAGATE CORP., SYLHET 0348 BSONBDDHDGT
13 DAULATPUR, KHULNA 0353 BSONBDDHDAU
14 DHAKA CANTT. CORP., DHAKA 0361 BSONBDDHCNT
15 DILKUSHA CORP., DHAKA 0332 BSONBDDHDIL
16 DINAJPUR CORP., DINAJPUR 0359 BSONBDDHDNJ
17 FOREIGN EXCHANGE CORP., DHAKA 0336 BSONBDDHFEB
18 GREEN ROAD, DHAKA 0369 BSONBDDHGRN
19 GULSHAN, DHAKA 0364 BSONBDDHGUL
20 HABIGANJ, HABIGANJ - --
21 HOTEL SHERATON, DHAKA 0370 BSONBDDHHST
22 JESSORE CORP., JESSORE 0354 BSONBDDHJSR
23 KHATUNGONJ, CHITTAGONG 0344 BSONBDDKHA
24 KHULNA CORP., KHULNA 0352 BSONBDDHKHU
25 KUSHTIA, KUSHTIA 0355 BSONBDDHKST
26 FOREIGN EXCHANGE, NARAYANGONJ 0373 BSONBDDHLAD
27 LALDIGHI CORP., CHITTAGONG 0343 BSONBDDHCTG
28 LOCAL OFFICE, DHAKA 0330 BSONBDDHLOD
29 LALMONIRHAT, LALMONIRHAT 0368 BSONBDDHLAL
30 MOULOVIBAZAR, MOULOVIBAZAR - --
31 MYMENSINGH, MYMENSINGH 0341 BSONBDDHMYM
32 NARAYANGONJ CORP., NARAYANGONJ 0339 BSONBDDHNAR
33 RAILWAY BUILDING, CHITTAGONG 0345 BSONBDDHRWB
34 RAJSHAHI CORP., RAJSHAHI 0356 BSONBDDHRAJ
35 RAMNA CORP., DHAKA 0333 BSONBDDHRAM
36 RANGPUR CORP., RANGPUR 0358 BSONBDDHRNG
37 SADARGHAT CORPORATE, DHAKA 0334 BSONBDDHSDR
38 SATKHIRA, SATKHIRA 0366 BSONBDDHSAT
39 SHILPA BHABAN CORPORATE, DHAKA 0331 BSONBDDHSLP
40 SIRAJGONJ, SIRAJGONJ - --
41 SUNAMGONJ, SUNAMGONJ 0356 BSONBDDHSNG
42 SYLHET CORPORATE, SYLHET - --
43 TEKNAF, COX’S BAZAR - --
44 WAGE EARNER'S CORPORATE, DHAKA 0337 BSONBDDHWEB
45 WAGE EARNER'S CORPORATE, CHITTAGONG 0346 BSONBDDHWEC
46 UTTARA MODEL TOWN, DHAKA 0376 --
47 PANCHAGARH, PANCHAGARH 0377 --
48 HAZRAT SHAHJALAL INTERNATIONAL AIRPORT, DHAKA 0378 --

GLOBAL REMITTANCE NETWORK

OF SONALI BANK LIMITED
2 6
10 10 4
NOTE:
1. Sonali Bank (UK) lTd. - 2 Branches in UK
2. Sonali Exchange Co. Incorporation (SECI)
Subsidiary Company of SBL - 10 Branches in USA
1. Embassy of Bangladesh, Riyadh, KSA

2. Consulate General of Bangladesh, Jeddah
SBL Representation Office 3. Embassy of Bangladesh, Kuwait, KSA
1. SBL Kolkata Branch

Overseas Branches of SBL 2. SBL Shiliguri Branch
1. Western Union 5. Merchantrade
2. X-press Money 6. Xoom Paypal
3. IME 7. RIA Financial Services
Number of Exchange Houses 4.Trans Fast 8.Hello Paisa South Africa
NOSTRO arrangement of SBL with Several countries
372
1
1
1
1
2
1
8 1
1
4 1
1 3
14 1
8
2 7 1
1
4
1
2

SONALI BANK LIMITED

OVERSEAS BRANCHES
Siliguri Branch, India Siliguri Branch, India
Wachel Molla Mansion (1 Floor),
st
White House, 304/3, Sevoke Road
8, Lenin Sarani (Dharmatala Strret) P.S. Siliguri, Dist. Darjeeling
Kolkata 700013, India. West Bengal, India.
Tel: 00-91-33-2229-7998 Tel: 00-91-0353-2520947(Off)
00-91-33-2229-3788 00-91-0353-2640800(Res)
Cell: 00919830024868 Fax: 00-91-0353-2520946
Fax: 00-91-33-2245-7407 E-mail : sonalisig@sancharnet.in.
Email: sonalibank@vsnI.net. sonalisiguri@bsnl.in
Deputy General Manager and CEO` Manager

Mohammad Modasser Hasan Md. Mahmudul Haque
SONALI BANK LIMITED

REPRESENTATIVE OFFICES
Riyadh, K.S.A. Jeddah, K.S.A.
Sonali Bank Limited Representative Office, Riyadh Sonali Bank Limited Representative Office, Jeddah
Embassy of the People’s Republic of Bangladesh Consulate General of Bangladesh
Post box # 94395, Riyadh-11693, K.S.A. Kilo-3, Makkah Road,
Tel: 009661-4195300 Post box # 31085, Jeddah-21497, K.S.A.
00966-11-4192954 Ext. 111 (Off) Tel: 00966-12-6878465 Ext-142 (Off)
00966-11-2054013 (Res) 00966-12-6321158 (Res)
Cell: 00966-542851847 Cell: 00-966-567658295
E-mail: sbro.riyadh@gmail.com Fax: 00966-2-6336480
Fax: 009661-4196909/4193555 E-mail : sbr¬jed@gmail.com
Abdul Wahab Syed Monzurul Islam

Deputy General Manager & Deputy General Manager &
Sonali Bank Representative Sonali Bank Representative
Kuwait
Sonali Bank Limited Representative Office, Kuwait
Embassy of the People’s Republic of Bangladesh
House no-11, Block No-2, Street no-29
Khaldiya, Kuwait
Tel: 00965 24913219-20; Ext: 106
00965-24913210 (Off)
Cell: 00965-65762097
Fax: 00965-24913205
E-mail:sbrkuwait@yahoo.com
374
SONALI BANK LIMITED

ASSOCIATE IN UNITED KINGDOM
Chief Executive Office, London London Main Branch
29-33 Osborn Street, London, E1 6TD, U.K. 29-33 Osborn Street, London E1 6TD, U.K.
Tel: 00-44-(0)20-7877-8200 (Switch Board) Tel: 00-44-(0)20-7877-8200 (Switch Board)
00-44-(0)20-7877-8231 (Direct) 00-44-(0)20-7877-8219 (Direct)
Fax: 00-44-(0)20-7377-9924 Fax: 00-44-(0)20-7375-3648
E-mail: enquiries@sonali-bank.co.uk E-mail: tauhidul.islam@sonali-bank.co.uk
Sarwar.hossain@sonali-bank.co.uk
Chief Executive Officer Manager

M. Sarwar Hossain Tauhidul Islam
Birmingham Branch
380, Coventry Road
Small Heath
Birmingham, B 10 0UF,U.K.
Khaldiya, Kuwait
Tel: 00-44-(0)20-7877-8200
00-44-(0)121-772-7240
Fax: 00-44-(0)121-772-8823
E-mail:birmingham@sonali-bank.co.uk
Manager
Iqbal Ahmed Chowdhury

SONALI EXCHANGE COMPANY INCORPORATED (SECI), USA

A SUBSIDIARY OF SONALI BANK LIMITED
Corporate Office, Manhattan Manhattan Branch
336 East 45th Street 8th Floor 336 East 45th Street 8th Floor
NY-10017, New York, USA NY-10017, New York, USA
Tel: 001-212-808-0790 (Office) Tel: 001-212-808-0790(Office)
Cell: 001-646-957-2283 Cell: 001-917-204-0315
Fax: 001-212-808-0791 Fax: 001-212-808-0791
E-mail: ceo@sonaliexchange.com E-mail: manhattan@sonaliexchange.com
President and CEO (Current Charge) Manager
Md. Zahurul Islam Mohammad Sadat Hossain
Brooklyn Branch Astoria Branch
474, Macdonald Avenue, 1st Floor 29-31 Newtown Avenue, Astoria
Brooklyn, NY-11218, New York, USA NY-11102, New York, USA
Tel: 001-718-853-9558(Off.) Tel: 001-718-777-7001(Off.)
Cell: 001-917-670-1215 Cell: 001-646-509-7530
Fax: 001-718-853-9568 Fax: 001-718-777-1237
E-mail: brooklyn@sonaliexchange.com E-mail: astoria@sonaliexchange.com
Manager Manager
Akhter Khondokar Hamid Shah Mahbubul Alam
Jackson Heights Branch Atlanta Branch
37-17 74th Street, Suite#2R 4897, Buford Highway, Suite #230
Jackson Heights, NY-11372, New York, USA Chamblee, Georgia GA -30341, USA
Tel: 001-718-507-6002 (Office) Tel: 001-770-936-9906 (Office)
Cell: 001- 646-371-6299 Cell: 001-678-772-2599
Fax: 001-718-507- 6295 Fax: 001-770-936-9907(off)
E-mail: jacksonhights@sonaliexchange.com E-mail: atlanta@sonaliexchange.com
Manager Manager
Md. Zahurul Islam Md. Burhan Uddin
376
Ozone Park Branch Paterson Branch
74-17, 101 Avenue, Ozone Park 436, Union Avenue, Paterson NJ-07502
New York, NY-11416, USA New Jersey, USA
Tel: 001- 347-505-8670 Tel: 001-973-595-7590 (Office)
Cell: Cell: 001-862-684-0836
Fax: 001-718-507- 6295 Fax: 001-973-595-7591
E-mail: ozonepark@sonaliexchange.com E-mail : paterson@sonaliexchange.com
Manager Manager
Abul Kashem Mohammed Kabir Faruk Ahmed Siddique
Michigan Branch Jamaica Branch
11319 Conant Street, Suite #B, Hamtramck 169-12, Hillside Avenue
MI-48212, Michigan, USA Jamaica, NY -11432, USA
Tel: 001-313-368-3845 (Off.) Tel: 001-347- 644- 5150
Cell: 001-313-455-2532 Cell: 001-347-517-1114
Fax: 001-313-368-3897 Fax: 001-347- 644- 1692
E-mail: michigan@sonaliexchange.com Email : jamaica@sonaliexchange.com
Manager Manager
Md. Nazrul Islam Md. Moniur Rahman
Bronx Branch
21-51, Starling Avenue
1st Floor, Bronx NY-10462, USA
Tel: 001-718-822-1081 (Off.)
Cell: 011-347-335-5390
Fax: 001-718-822-1083
E-mail: bronx@sonaliexchange.com

LIST OF
ACRONYMS
AD Authorized Dealer CEO Chief Executive Officer
ADB Asian Development Bank CFO Chief Financial Officer
ADP Annual Development Program CFT Combating Financing of Terrorism
ADR Alternative Dispute Resolution CIB Credit Information Bureau
AGM Annual General Meeting CRG Credit Risk Grading
ALCO Asset Liability Committee CRM Credit Risk Management
ALM Asset Liability Management CRR Cash Reserve Requirement
AML Anti Money Laundering CSR Corporate Social Responsibility
AMLC Anti Money Laundering Committee CTR Cash Transaction Report
ATA Anti- Terrorism Act DCFCL Departmental Control Function Check List
ATM Automated Teller Machine DRS Disaster Recovery System
BACH Bangladesh Automated Clearing House DSE Dhaka Stock Exchange Limited
Bangladesh Automated Cheque Processing EAS Early Alert System
BACPS
System
Branch Anti Money Laundering Compliance EDF Export Development Fund
BAMLCO
Officer
EEF Equity Entrepreneurship Fund
BAS Bangladesh Accounting Standards
EFT Electronic Fund Transfer
BB Bangladesh Bank
EGBMP Enterprize Growth Bank Modernization Project
BBTA Bangladesh Bank Training Academy
EPS Earning Per Share
Tk. Bangladesh Taka
ERM Environmental Risk management
BEFTN Bangladesh Electronic Fund Transfer Network
ERQ Exporter’s Retention Quota
BFIU Bangladesh Financial Intelligence Unit
ETPs Effluent Treatment Plants
BFRS Bangladesh Financial Reporting Standards
FBP Foreign Bills Purchased
BIBM Bangladesh Institute of Bank Management
FDI Foreign Direct Investment
BRDB Bangladesh Rural Development Board
FY Financial Year (July-June)
BRPD Banking Regulation and Policy Department
GAAP Generally Accepted Accounting Principles
BSA Bangladesh Standards on Auditing
Bangladesh Securities and Exchange GDP Gross Domestic Product
BSEC
Commission
GNI Gross National Income
Capital Adequacy, Asset Quality, Management,
CAMELS Earnings, Liquidity and Sensitivity to Market GOB Government of Bangladesh
Risk
Chief Anti Money Laundering Compliance GTS Government Transaction System
CAMLCO
Officer
HRDD Human Resources Development Division
CAR Capital Adequacy Ratio
IAS International Accounting Standard
CBS Core Banking Software
IBP Inland Bills Purchased
CDBL Central Depository Bangladesh Limited
ICandCD Internal Control and Compliance Division
CDC Central Data Centre
The Institute of Chartered Accountants of
ICAB
CDMS Core Deposit Monitoring System Bangladesh
378
The Institute of Cost and Management RMS Remmittance Management System

ICMAB
Accountants of Bangladesh
ICT Information and Communication Technology RMU Risk Management Unit
IMF International Monetary Fund ROA Return on Asset
IT Information Technology ROE Return on Equity
KSA Kingdom of Saudi Arabia ROI Return on Investment
KYC Know Your Customer RWA Risk Weighted Assets
LDR Loan Deposit Ratio SAFA South Asian Federation of Accountants
MANCOM Management Committee SBCS Sonali Bank Clearing System
MBID Merchant Banking and Investment Division SBL Sonali Bank Limited
MCR Minimum Capital Requirement SBSC Sonali Bank Staff College
MCO Maximun Cumulative Outflow SBTI Sonali Bank Training Institute
MDGs Millennium Development Goals SCB State-owned Commercial Bank
MICR Magnetic Ink Character Recognition SECI Sonali Exchange Company Incorporated
MLPA Money Laundering Prevention Act SIL Sonali Investment Limited
MSME Micro, Small and Medium Enterprise SLR Statutory Liquidity Ratio
MTMF Medium Term Macro Economic Framework SMA Special Mention Account
MVA Market Value Added SMEs Small and Medium Enterprises
NAV Net Asset Value SOE State Owned Enterprise
NCBs Nationalised Commercial Banks SREP Supervisory Review Evaluation Process
NGO Non Government Organization SRP Supervisory Review Process
NII Net Interest Income STR Suspicious Transaction Report

Society for Worldwide Interbank Financial
NPL Non Performing Loan SWIFT
Telecommunication
NRB Non Resident Bangladeshi TOR Terms of Reference
OBU Off-Shore Banking Unit TP Transaction Profile
OMIS Overview Management Information System UAE United Arab Emirates
PC Packing Credit UCCA Upazila Central Co-operative Association
PEPs Politically Exposed Persons UK United Kingdom
PMIS Personal Management Information System UN United Nations
POS Point of Sales USA United States of America
PRSP Poverty Reduction Strategy Paper VAT Value Added Tax
RBCA Risk Based Capital Adequacy WDV Written Down Value
RBIA Risk Based Internal Audit WEO World Economic Outlook
REPO Repurchase Agreement WTO World Trade Organization
RMD Risk Management Division

STANDARD DISCLOSURE INDEX

Disclosure checklist to the key sections of the Annual Report 2018
ITEM PAGE NO.
CORPORATE OBJECTIVES, VALUES AND STRUCTURE
Vision and mission 8-9
Overall strategic objectives 12
Core values and code of conduct/ethical principles 10-11
Profile of the company 14-15
Director's profiles and their representation on Board of other companies and organization chart 28-45, 135-136
MANAGEMENT REPORT AND ANALYSIS INCLUDING DIRECTOR’S REPORT/CHAIRMAN’S REVIEW/CEO AND
MANAGING DIRECTOR REVIEW ETC.
A general review of the performance of the company 2-3, 52-55, 56-60, 64-94
Description of the performance of the various activities / products / segments of the
52-60, 64-94, 137-152, 180-196, 198-203
company and group companies during the period under review
A brief summary of the business and other risks facing the organization and steps taken
80-81, 131-132, 156-177
to effectively manage such risks
A general review of the future prospects/ outlook 13, 186, 203
Information on how the company contributed to its responsibilities towards the staff
59, 90, 183-186
(including Health and safety)
Information on company's contribution to the national exchequer and to the economy 69, 74-80, 92, 195-197
SUSTAINABILITY REPORTING
Social Responsibility Initiatives (CSR) 84, 194
Environment related Initiatives 180-182
Environmental & Social Obligations 73, 195-197
Integrated Reporting 180-197
APPROPRIATENESS OF DISCLOSURE OF ACCOUNTING POLICIES AND GENERAL DISCLOSURE
Disclosure of adequate and properly worded accounting policies relevant to assets,
liabilities, income and expenditure in line with best reporting standards
Any specific accounting policies 231-257
Impairment of assets
Changes in accounting policies/changes in accounting estimates
Accounting policy on subsidiaries 325-340, 351-357
SEGMENT INFORMATION
Comprehensive segment related information bifurcating segment revenue, segment
148, 247, 267-279
results and segment capital employed
Information regarding different segments and units of entity as well as non segmental entities/units 17, 24-25, 64-94, 139-152, 164-177, 247
Segment analysis of
Segment revenue
Segment results
Turnover 148, 218-230
Operating profit
Carrying amount of net segment assets
FINANCIAL STATEMENTS
Disclosure of all contingencies and commitments 219, 225, 246, 299-300
Comprehensive related party disclosure 311-314
Disclosures of remuneration and facilities provided to the Directors and CEO & Managing Director 108, 305
Statement of financial position/balance sheet and relevant schedules
Income statement/profit and loss account and relevant schedules
Statement of changes in equity/ reserves and surplus schedule
Disclosure of types of share capital
218-357
Statement of cash flow
Consolidated financial statement
Extent of compliance with the core IAS/ IFRS or equivalent national standards
Disclosures/ contents of notes to accounts
380
ITEM PAGE NO.

INFORMATION ABOUT CORPORATE GOVERNANCE
Board of Directors, Chairman and CEO and Managing Director 28-45, 98-110
Audit committee (composition, role, meetings, attendance etc.), internal control and risk
102-103, 105-108, 128-130
management
Ethics and compliance 11, 105, 114-121
Remuneration and other committees of Board 101-105
Human capital 108, 183-186
Communication to shareholders and stakeholders 109
Information available on website www.sonalibank.com.bd
Other information 14-17, 115
Management review and responsibility 109-110, 198-203
Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports 102-104, 128-130
Any other investor friendly information 137, 142-152
RISK MANAGEMENT & CONTROL ENVIRONMENT
Description of Risk Management Framework
Risk Mitigation Methodology 80-81, 131-132, 156-177
Disclosure of Risk Reporting
Distribution of shareholding (number of shares as well as category wise e.g. promoter group etc.)
133-136
Shares held by Directors/executives and relatives of Directors/executives
Redressal of investors complaints 137
GRAPHICAL/ PICTORIAL DATA
Earnings per share
Net assets
Stock performance 139-141
Shareholders' funds
Return on shareholders' fund
HORIZONTAL/ VERTICAL ANALYSIS INCLUDING: OPERATING PERFORMANCE
(INCOME STATEMENT)
Total revenue
Operating profit
Profit before tax 145
Profit after tax
EPS
STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)
Shareholders fund
Property plant and equipment
138, 146
Net current assets
Long term liabilities/ current liabilities
PROFITABILITY/ DIVIDENDS/ PERFORMANCE AND LIQUIDITY RATIOS
Net Interest income Ratio
Profit before provisions and Tax
Price earnings ratio
138-144, 147
Capital Adequacy Ratio
Return on capital employed
Debt equity ratio
STATEMENT OF VALUE ADDED AND ITS DISTRIBUTION
Government as taxes
Shareholders as dividend
Employees as bonus/ remuneration
149-151
Retained by the entity
Market share information of company's product/ services
Economic value added

ITEM PAGE NO.

PRESENTATION OF FINANCIAL STATEMENTS
Layout of contents 4-5
Theme on the cover page 1
28-49, 53, 56, 62-63, 74-77, 84, 96-97,
Use of photographs 112-113, 122-123, 128, 131, 154-155, 178-
179, 184-185, 198, 204, 210-211
Use of charts and graphs 81-85, 90, 92, 139-141, 145-150, 166-170, 193
APPROVAL OF FINANCIAL STATEMENTS AND HOLDING AGM
Date of approval of financial statements by BoD: 29.04.2019 219
Date of 12th Annual General Meeting (20.06.2019) 7
ADDITIONAL DISCLOSURES FOR EXAMPLE
Report on sustainable banking 180-182
Human resource accounting 183-186
Report on financial inclusion 187-188
Customer care 189-191
Islamic Banking of SBL 192-193
Corporate Social Responsibility (CSR) 194
Government transactions and works related to social responsibility 195
Contribution to national economy 196-197
Awards and recognitions 204-205
SPECIFIC AREAS FOR BANKING SECTOR
Disclosure of ratings given by various rating agencies for instruments issued by / of bank
259-267
e.g. FD, CD, tier 1 perpetual bonds
Details of advances portfolio classification wise as per the direction issued by the central
167-171, 267-279
bank of the respective countries
Disclosure for non performing assets
Movement of NPA
Sector wise breakup of NPA 271-278, 292-293
Movement of provisions made against NPA
Details of accounts restructured as per regulatory guidelines 273
Maturity pattern of key assets and liabilities (ALM) 230, 258-267, 282-292
Classification and valuation of investments as per regulatory guidelines / accounting
238-243, 265-267, 320-322
Standards
Business ratio/information
Statutory liquidity reserve (ratio)
Net interest income as a percentage of working funds/operating cost
Return on average asset
Cost / income ratio
Net asset value per share
Profit per employee 138, 142-144, 258-259
Capital adequacy ratio
Operating profit as a percentage of working funds
Cash reserve ratio / liquid asset ratio
Dividend cover ratio
Gross non-performing assets to performing assets
Details of credit concentration/ sector wise exposures 267-279
The break-up of 'provisions and contingencies' included in profit and loss account 299, 307
Disclosure under regulatory guidelines 115-121, 164-177, 258-259, 294-297
Details of non-statutory investment portfolio 239, 267
Disclosure in respect of assets given on operating and finance lease 268-269
Disclosures for derivative investments 239, 264-267
Bank's network: List of branches 358-377
382
BRANCH NETWORK
WITH BANGLADESH MAP
Panchagarh
Thakurgaon Nilphamari Lalmonirhat
Kurigram
Dinajpur
Rangpur
Gaibandha
Joypurhat
Sherpur
Naoganon Sunamganj Sylhet
Jamalpur Netrokona
Bogra
Nawabganj
Mymensingh
Rajshahi
Maulvibazar
Natore Sirajganj Kishoreganj
Habiganj
Tangail
Gazipur
Pabna
Narsingdi
Dhaka-1
Kushtia Brahmanbaria
Manikganj
Meherpur
Narayanganj
Rajbari Dhaka-2
Chuadanga
Jhenaidah Munshiganj
Faridpur Comilla
Magura
Shariatpur
Chandpur Khagrachhari
Madaripur
Narail
Jessore Gopalganj
Lakshmipur Feni
Barisal
Noakhali
Rangamati
Pirojpur
Jhalokati
Khulna
Bagerhat Bhola
Chittagong
Satkhira
Patuakhali
Barguna
Bandarban
Cox's Bazar
Sonali Bank Limited GM Office Wise

Branch Network with Bangladesh Map
Serial Name of GM No. of Branches
No. Office (Including Corp.)
01 Dhaka-1 108
02 Dhaka-2 107
03 Mymensing 114
04 Sylhet 79
05 Comilla 136 Indicates District Total Number of Branches
06 Chittagong 108
Indicates GM Headed Branch (3 in Dhaka City)
07 Barisal 76
08 Khulna 124
1. Local Office
09 Faridpur 105 2. Bangabandhu Avenue Corp.
10 Rajshahi 142 3. Ramna Corp.
11 Rangpur 114
TOTAL 1213

Note
35-42,44 Motijheel Commercial Area, Dhaka-1000, Bangladesh
PABX :9550426-31, 33, 34, Fax: 88-02-9561410, 88-02-9552007
E-mail: itd@sonalibank.com.bd, SWIFT: BSONBDDH

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What is the vision and mission of the organization?

What is the vision and mission of the organization?

What are the core values of the organization?

What are the core values of the organization?

Annual Report 2018

RATING AHEAD Without Government Supported Bank

Notice of the 12th Annual General Meeting 7 Corporate Governance 98

Corporate Vision and Mission 8 Certificate with Compliance Report on CG 114

Core Values 10 Compliance Report with BSEC Notification on CG 115

Ethical Principles 11 Credit Rating 124

Statement of Forward Looking Approach 13 Directors' Responsibility for FR and IC 126

Corporate Profile 14 Report of the Audit Committee 128

Group Corporate Structure 17 Note from the Chairman of Risk Management

Graphical Presentations 139

Board of Directors & its Committees 28 Profitability, Dividend, Performance and

CHAIRMAN AND Market Value Added Statement 151

CEO & Managing Director Message 56

RISK MANAGEMENT AND AUDITORS’ REPORT AND

BASEL-III Compliance Report 164 Financial Statements-SBL (Solo) 224

SUSTAINABILITY ANALYSIS AND Financial Statements-Islamic Banking Unit 347

INTEGRATED REPORTING Financial Statements-SECI 351

Report on Sustainable Banking 180

Citizen Charter 191 Overseas Branches of SBL 374

Islamic Banking of SBL 192 Representative Branches of SBL 374

Standard Disclosure Index 380

Management Discussion and Analysis 198

Awards and Recognition 204

Products and Services of SBL 206

Media Highlights-2018 209

Photo Gallery 210

Annual Report 2018 5

All Shareholders of Sonali Bank Limited/

Sub: Annual Report for the year ended 31 December, 2018.

(Md. Obayed Ullah Al Masud)

m`m¨ wn‡m‡e D³ mfvq Avcbvi m`q Dcw¯’wZ Kvgbv Kiv nBj|

cwiPvjbv cl©` Gi Av‡`kµ‡g

(†gvt nvmvbyj evbœv)

Annual Report 2018 7

Annual Report 2018 9

The core value proposition of Sonali Bank Limited consists

Excellence Self Reliance

Ethics is a combination of moral qualities and a collection

Annual Report 2018 11

The core objectives of Sonali Bank Limited are to conduct

Developing Human Resource Management

Ensuring diversification of investment

Cost control optimization at all levels of

Ensuring strong internal control and

Developing sound and effective risk

Ensure dedicated service to the

Annual Report 2018 13

No. of ABB Operated Branches 1213

Annual Report 2018 15

LEGAL ADVISORS OF SBL

Mr. Md. Tahirul Islam Mr. Dr. A Z M Fariduzzaman

Mr. Md Mamunur Rashid Mr. Seikh Muhammad Zakir Hossain

S. F. Ahmed & Co Howladar Yunus & Co

TAX ADVISOR OF SBL

Akhter Zamil and Co.