Annual Report 2020

YEAR OF
EXCELLENCE
During the COVID 19 outbreak in last year, the whole world suffered
immensely while Bangladesh, being vaccinated too early by our visionary
leader, started to recover in different sectors of the economy. In line with
the sustainable development process that the country is going through,
Sonali Bank Limited also steps towards the premium advancement through
its vibrant performance in consecutive years and declares the year as “Year
of Excellence”. Both these outstanding dedications have been symbolized in
the cover with the rising sun over the mountain peak.
The arranged logo of the bank over the podium represents the organizations’
top position with glittering indicators in the banking sector. The bank is
determined to accomplish the desired benchmark through suitable strategy
by combating the future challenges.
KEY ACHIEVEMENT 2020
(Figure in Tk. Million except stated otherwise)
+ 524 + 4,427
Net Profit Operating Profit
2020 2019 2020 2019

3,234 2,710 21,527 17,100
+ 99,998 + 35,207
Deposit Loans & Advances
2020 2019 2020 2019

1,258,786 1,158,788 586,233 551,026
+ 118,633 + 129,304
Total Assets Total Investment
2020 2019 2020 2019

1,591,234 1,472,601 629,691 500,387
Validity of Surveillance Rating

CREDIT As Government Supported Bank
STATIC
RATING Without Govt. Supported Bank
Outlook
-4,320 -1.95%
Classified Loan Rate of Classified Loans
2020 2019 2020 2019

107,674 111,994 18.37% 20.32%
+ 1.16% + 0.01%
Earning Per Share Return on Asset (ROA)
2020 2019 2020 2019

7.14% 5.98% 0.21% 0.20%
+ 0.29% + 1.15%
Return on Equity (ROE) Return on Investment (ROI)
2020 2019 2020 2019

4.21% 3.92% 7.13% 5.98%
Upto November 2021 Upto June 2020

Long Term Short Term Long Term Short Term
AAA ST-1 AAA ST-1
A ST-2 A ST-2
Stable Stable
TABLE OF
CONTENTS
ORGANIZATIONAL Chairman and Managing
INFORMATION Director’s Message
08 Letter of Transmittal 48 Message from the Chairman
09 Notice of the 14th Annual General Meeting 52 CEO & Managing Directors’ Message
10 Corporate Vision and Mission
12 Core Values Corporate

13 Ethical Principles
Governance
14 Strategic Objectives of SBL 58 Directors’ Report
15 Statement of Forward Looking Approach 92 Corporate Governance
16 Corporate Profile 105 Certificate with Compliance Report on CG
19 Group Corporate Structure Compliance Report with BSEC Notification on

106
CG
20 Corporate Organogram
117 CEO and CFO’s Declaration to the Board
22 Milestones
118 Directors’ Responsibility for FR and IC
24 List of Chairman
119 Report of the Audit Committee
25 List of Managing Directors & CEOs of SBL
Note from the Chairman of Risk Management
26 SBL at a Glance 122
Committee
Board of Directors and STAKEHOLDERS

Management profile INFORMATION
28 Board of Directors & its committees
124 Stakeholders and Shareholders Information
34 Directors’ Profile
126 Redressing to Shareholders’ Observations
44 Management Team
129 Comparative Financial Highlights of SBL
130 Graphical Presentations
MANAGEMENT REVIEW
133 Key Financial Data and Ratios of SBL AND OTHER INFORMATION
Profitability, Dividend, Performance and
138 190 Management Discussion and Analysis
Liquidity Ratio
139 Segment wise Presentation 196 Awards and Recognition
140 Statement of Value Addition and its Distribution 198 Products and Services of SBL
142 Market Value Added Statement 201 Media Highlights 2020
143 Financial Calendar 2020 and 2021 202 Photo Gallery
144 Credit Rating
Auditors’ Report and

RISK MANAGEMENT AND Financial Statements
CONTROL ENVIRONMENT
211 Consolidated Financial Statements-SBL
146 Report on Core Risk Management

217 Financial Statements-SBL(Solo)
154 BASEL-III Compliance Report
331 Financial Statements- Sonali Investment Ltd.
154 Market Disclosures under Piller-III
360 Financial Statements- Islamic Banking Window
363 Sonali Exchange Co. Inc (SECI)

Sustainability Analysis and
Integrated Reporting
ADDITIONAL
173 Report on Sustainable Banking
INFORMATION
176 Report on Human Resources
377 Domestic Branches of SBL
180 Report on Financial Inclusion
390 SBL Remittance Network with World Map
182 Customer Care
392 Overseas Branches of SBL
185 Citizen Charter
392 Representative Branches of SBL
186 Report on Corporate Social Responsibility
Government Transactions and Works Related to 393 Branches of Sonali Bank (UK) Ltd.
187
Social Responsibility 394 Branches of SECI, USA
188 Contribution to National Economy

396 List of Acronyms
397 Standard Disclosure Index
401 SBL Branch Network

YEAR OF EXCELLENCE
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, 2020.
Dear Sir(s),
We are pleased to enclose herewith a copy of the Annual Report 2020 along with the Audited Financial Statements
(Consolidated and Solo) of Sonali Bank Limited for the year ended 31 December, 2020 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. Ataur Rahman Prodhan)
CEO & Managing Director
8
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Annual Report 2020

YEAR OF EXCELLENCE
OUR VISION
Socially committed leading banking

institution with global presence.
10
OUR MISSION
Dedicated to extend a whole range of
quality products that support divergent
needs of people aiming at enriching their
lives, creating value for the stakeholders
and contributing towards socio-
economic development of the country.
Annual Report 2020

YEAR OF EXCELLENCE
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 responssible for their activities and will remain
Everyone must ensure adherence to ethical practices of
accountable to their respective superior for accomplishment
banking.
of tasks.
OBJECTIVITY TRANSPARENCY
All persons will have definite objective in carrying out Information to be kept open for all so athat stakeholders can
their tasks. have proper ideas about the activities of the Bank.
INTEGRITY TEAM WORK

Protection and safeguard of national and customer’s Open communication, discussion and interaction amongst
interest are vital elements for societal trust. the employees would ensure unification of acitons and efforts
towards achiving the common goal(s).
EXCELLENCE SELF RELIANCE

Excellent performance and effectiveness are pre- Each employee will have ownership attitude towards the Bank
conditions to ensure quality service to the large customer and self confidence in his work for the betterment of the Bank.
base of the Bank.
COMMITMENT INNOVATION
Every employee is committed to work upto the expected New and innovative products are the needs of the time which
level to ensure satisfaction of valued customers. continuous aciton oriented researches are being carried out.
12
ORGANIZATIONAL INFORMATION
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 use of sources, the prevention of the unjustified competition
investments and savings by playing an intermediary role among the banks, provide services to the customers with
between the parties in society that supply funds and demand uncompromising integrity, protect privacy and confidentiality
funds respectively, also aims the principles of profitability and
of customer information, prevent money laundering and
productivity stipulates the requirement that they have to work
in accordance with the Ethical Principles in the professional fraudulent activities, demonstrate work place respect, banks
and organizational fields. are to regulate their relations not only among themselves
but also with the other stake holders and employees in
Setting off from the expansion of the banking system, the
improvement of the quality of banking services, the optimal concordance with the Ethical Principles.
Annual Report 2020

YEAR OF EXCELLENCE
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 and unbanked Improving corporate governance through strengthening good
population of the country through providing banking corporate culture, motivation, training and supervision in all
services to under-served areas with the scaling up of levels of management.
various pilot initiatives.
Developing Human Resource Management System to

Gaining competitive advantages by lowering overall cost
motivate and retain the human resources and transform
compared to that of competitors.
human resources to human capital through proper training in
every aspects of working area.
Retaining our top leadership position by providing quality by sector, size, economic purpose and geographical location
customer services. and expand need based retail and SME/Microfinance/Women
entrepreneur financing
Investing in the thrust and priority sectors of the Cost control optimization at all levels of operation by ensuring
economy. budgetary control and maximizing revenue through quality
services and product diversification.
Providing impeccable and progressively better customer Ensuring strong internal control and compliance culture
services through introducing changed technologies. through establishing strong control environment and sound
compliance within the Bank.
Being excellent in serving the cause of least developed Developing sound and effective risk management culture
community and areas. within the Bank to safe guard the banking assets and protect
the interest of the dipositors and other stake holders.
Improving of deposit mix by maintaining share of low Ensure dedicated service to the government as an exchequer
cost and no cost deposit in total deposit as well funded and government transactions (government receipts and
business. payments) in order to achieve expected economic growth.
14
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.
z Highest degree of ICT inclusion. z Changes in CRR and SLR of the banks as well
z Engagement of talented employees. as increase of provision requirements resulting
z Exclusive human resource development reduction of ROA and ROE
efforts. z Fluctuation in international prices of essentials
z Exclusive business re-engineering. which influences the oscillation in foreign
z Customer service improvement. exchange market.
z Efficient internal control system. z Compliance issues raised by the International
z Improvement of internal work environment. Forums which are likely to affect the export
z Establishment of risk based management
growth in the industrial sectors.
system.
z Adequate internally generated capital. z Changes in the demand for deposit, loan,
and investment products and other financial
As any projection or forecast, forward-looking statements services in the markets we serve.
are inherently susceptible to uncertainty and changes in z The outcome of pending or threatened
circumstances. The company’s actual results may vary litigation, or of other matters before regulatory
materially from those expressed or implied in its forward- agencies, whether currently existing or
looking statements. Important factors that could cause the commencing in the future.
Bank’s actual results to differ materially from those in its
z Environmental conditions that exist or may
forward-looking statements include government regulation,
economic, strategic, political and social conditions and the
exist on properties owned by, leased by, or
following factors: mortgaged to the Company.
z Changes in accounting principles, policies,
z Changes in the monetary and fiscal policies practices and guidelines in line with IFRS and
of the Government, including policies of the BB requirements.
Department of the Treasury and Bangladesh z Changes in credit ratings or in our ability to
Bank. access the capital markets along with other
z Changes in interest rates, which may affect economic, competitive, governmental,
net income, prepayment penalty income,
regulatory, technological, and geopolitical
mortgage banking income, and other future
cash flows, or the market value of our assets, factors affecting our operations, pricing and
including our investment securities. services.
z Changes in capital management policies z Priority of government and the regulator.
of the Bank including use of derivatives to z Status of ICT inclusion.
mitigate our interest rate exposure. z Inclusion of new generation human resources.
z Changes in corporate tax structure along with z The changed banking requirements of the
legislation and regulation of VAT on banking customer.
services. z Peer Bank’s forward movements.
Annual Report 2020

YEAR OF EXCELLENCE
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. Ziaul Hasan Siddiqui
CEO & Managing Director Mr. Md. Ataur Rahman Prodhan
Head of Risk Management Mr. Md. Idris
Head of ICC Mr. Imran Ahmed
Chief Financial Officer Mr. Subhash Chandra Das, FCA, FCMA
Chief Information Technology Officer Mohammad Rezwan Al Bakhtiar
Chief Audit Officer Mr. Imran Ahmed
Company Secretary Mr. Tauhidul Islam
DOMESTIC NETWORK
No. of Branches 1224
No. of Urban Branches 523
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 732
No. of AD Branches 48
No.of Corporate Branches (incl. LO) 32
No. of Computerized Branches 1224
No. of Core Banking System Branches 1224
No. of Administrative Office 74
No. of ABB Operated Branches 1224
No. of RMS+ Operated Branches 1224
No. of SMS Banking Operated Branches 1224
+
No. of Islamic Window 74
No. of Head Office Divisions 47
16
OVERSEAS NETWORK
No. of Branches 02
Location of Branches Kolkata (India), Siliguri (India).
No. of Correspondence 684
No. of Representative Offices 03 (02 in KSA and 01 in Kuwait)
ATM Booths (own) 125
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: [email protected]
Sonali Investment Limited Borak-Biz Center (1th Floor& 2nd Floor)
70 Dilkusha Road, Dhaka 1000
Phone: 88-02-9568777, PABX: 9556940, 7170001 Ext.101
E-mail: [email protected], [email protected]
ASSOCIATES
Sonali Bank (UK) Ltd. 29-33 Osborn Street, London E1 6TD, U.K.
Phone: 00-44-(0)20-7877-8200 (Switch Board)
:00-44-(0)20-7877-8231 (Direct)
Fax:00-44-(0)20-7377-9924
E-mail: [email protected]
Sonali Intellect Limited 35, Kamal Ataturk Avenue,
Abedin Tower, 7th Floor,
Banani Commercial Area, Dhaka-1213
No. of Employee 18918
CORPORATE RATING STATUS
Surveillance Rating with Government Long-term: AAA, Short-term: ST-1
Support
Surveillance Rating without Government Long-term: A, Short-term: ST-2
Support
Phone PABX +88-02-9550426-31, 33, 34, +88-02-9552924
Fax 88-02-9561410, 88-02-9552007
SWIFT Code BSONBDDH
Email [email protected]
[email protected]
[email protected]
[email protected]
Website www.sonalibank.com.bd
Annual Report 2020

YEAR OF EXCELLENCE
LEGAL ADVISORS OF SBL

01 Begum Hosne Ara Begum 02 Mr. Khaled Bin Shahriar
Haque Law Chamber (2nd floor), Suit no: 906 (9th floor),
Jiban Bima Bhaban, H.M.Siddiqui Mension, 55/A,
121, Motijheel C/A, Dhaka. Purana Paltan, Ramna, Dhaka.
Mob: 01711522775 Phone: 02-9574376
03 Mohammad Shafiqul Islam 04 Mr. Fayez Ahmed

Room no:105 (Anex Extension Bhaban), Room no: 227, Supreme Court Bar Bhaban,
Supreme Court Lawyers Association, Dhaka. Dhaka-1000.
Mob: 01711583269 Mob: 01711440304
05 Md. Rokonuzzaman
Suit no: 404 (3rd floor), Ibrahim Mension,
11, Purana Paltan, Dhaka.
Mob: 01715330077
AUDITOR OF SBL
ACNABIN
Chartered Accountants
BDBL Bhaban (Level-13), 12 Karwan Bazar C/A, Dhaka, Bangladesh.
Tel: +88-02-41020030, Fax: +88-02-41020036
TAX ADVISOR OF SBL
Akhter Zamil and Co.
Ibrahim Mansion (1st Floor), Room No. 207, 11, Purana Paltan, Dhaka-1000.
Telephone: 88 02 7124898
E-Mail: [email protected]
CREDIT RATING COMPANY OF SBL
Credit Rating Information and Services Limited(CRISL)
Nakshi Homes (1st, 4th & 5th Floor)
6/1/A, Segunbagicha
Dhaka -1000.
LAW CONSULTANT
Md. Barekuzzaman
18
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
Annual Report 2020

YEAR OF EXCELLENCE
CORPORATE
ORGANOGRAM
Board of Directors
Chairman, Directors
Executive Committee CEO & Managing
Audit Committee Director
Risk Management Committee
DMD DMD DMD
Chief
Chief
Chief Audit GM GM Information
Officer (CAO) GM Financial GM Technology
GM Officer (CFO) GM
Officer (CITO)
AUDIT & AGRO-BASED INTERNATIONAL CENTRAL INFORMATION

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

GENERAL LOAN IT DIVISION
INSPECTION MANAGEMENT ACCOUNTS WELFARE &
ADVANCES RECOVERY (INFRASTRUCTURE
DIVISION-2 DIVISION - 1 DIVISION TRANSPORT
(OTHER THAN CORPORATE DIVISION (GAD) DIVISION (LRD) IT)
BRANCHES )
(FRONT OFFICE) (PAYMENT) DIVISION (EWTD)
EXTERNAL INDUSTRIAL TREASURY GOVT. HUMAN

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

RISK IT DIVISION
AUDIT MEDIUM RECONCILIATION RESOURCE
MANAGEMENT (IT PROCUREMENT
COMPLIANCE ENTERPRISE DIVISION (RD) MANAGEMENT
DIVISION (RMD) & MAINTENANCE)
DIVISION DIVISION (SME) DIVISION (HRMD)
FOREIGN INFORMATION
SECURITY, IT RISK
EXCHANGE AUDIT MICRO CREDIT
MANAGEMENT &
AND INSPECTION (MCD)
DIVISION (MCD) FRAUD CONTOL
DIVISION (FEAID) DIVISION
CONTROL & Law Chief Medical MIS &

MONITORING RURAL CREDIT
Consultant Officer STATISTICS
DIVISION DIVISION (RCD)
DIVISION (MSD)
(CMD)
GMO
GMO, GMO
GMO, GMO, Chattogram GMO
GMO, GMO
GMO, GMO
GMO,
DHAKA-1 DHAKA-2 (CHITTAGONG) KHULNA SYLHET RAJSHAHI
106 Br 106 Br. 109 Br. 123 Br 80 Br. 143 Br
PO: PO: PO: PO: PO: PO:

Bangabandhu Avenue Dhaka West (Ramna), CTG-North, Khulna; Sylhet; Rajshahi; Pabna;
(Dhaka Central), Dhaka East (Motijheel), CTG-South, Jashore; Moulvibazar; Bogura;
Dhaka South (Sadarghat)
, Mirpur, Narayanganj,
Patiya-CTG, Jhenaidah (Magura); Habiganj Sirajganj;
Gazipur, Narsingdi Munshiganj
Rangamati Satkhira Naogaon; Natore
(Kh hh i)
RO: Manikganj RO: - RO: Cox's Bazar; RO: Bagerhat; RO: Sunamganj RO: Joypurhat,
Bandarban Narail Chapai Nawabganj;
DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br:
Wage Earners'; BWAPDA Corp; Agrabad Corp; Khulna Corp; Darga Gate Corp; Rajshahi Corp;
Dilkusha Corp; Foreign Exch; Laldighi Corp; Daulatpur Corp;
Sadarghat Corp; Shilpa Bhaban;
Wage Earners'-Ctg AGM Corp Br: AGM Corp Br:
PM's Office; Dhaka Cantt.;
DU Corp Br; Dhanmondi;
AGM Corp Br : Sylhet Corp(AGM) Bogura Corp(AGM)
Hotel Sheraton Chawk Bazar; Jashore Corp(AGM)
(InterContinental) Narayangonj Corp
Corp Branch.
20
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 CEO & MANAGING Sonali Bank Limited

Secretary DIRECTOR'S
COMPANY AFFAIRS AND SECRETARIAT Your Trusted Partner in Innovative Banking
BOARD DIVISION (CABD)
Corporate Organogram
DMD DMD
SBL Offices/Branches
Head Office Divisions : 47
Principal (GM) GM, GM Office (GMO) : 11
GM GM TRAINING Local Office
Principal Office (PO) : 46
DIVISION (TD) GM, Regional Office (RO) : 16
Recovery-LO
Local Office Br. : 1
BRANCHES COMMON
Sonali Bank GM, GM Headed Corporate Br. : 2
CONTROL SERVICES BB Avenue
DIVISION (BCD) DIVISION (CSD) Staff College DGM Headed Corporate Br. : 24
Corp Br :
AGM Headed Corporate Br. 5
6 SBTI Training
AGM Headed Br. : 59
BUSINESS
ESTABLISHMENT
&
Institutes) :
CTG, Mymensingh,
GM, SPO Headed Br. : 375
DEVELOPMENT Ramna Corp
DIVISION (BDD)
ENGINEERING Khulna, Rajshahi,
Bogura, Cumilla.
PO Headed Br. : 543
DIVISION (EED) Br :
SO Headed Br. 218
OVERSEAS Br:
Foreign Br. : 2
FOREIGN SECURITY AND
GM
REMITTANCE
PROTOCOL DIVISION
(SPD)
Kolkata Br
Kolkata Br, India
I ndia
Sonali
Total Branches : 1,226
MANAGEMENT Chief Security Siliguri Br, India
Investment
DIVISION (FRMD) Officer (CSO)
Representative Ltd (Subsidiary of Sonali Investment Limited : 1
MONEY LAUNDERING
Office: SBL) SECI, USA : 1
4 Branches =
PUBLIC & TERRORISM
FINANCING
Riyadh-KSA;
Motijheel Main Br;
Sonali Bank (UK) Limited : 1
RELATIONS Jeddah-KSA;
DIVISION (PRD)
PREVENTION
Kuwait Paltan; Uttara; SBL, Representative Offices : 3
DIVISION (MLTFPD)
(ex MLTFPVD)
Mirpur. Khulna
Sonali Bank Ltd. Manpower:

Sonali Exchange
CARDS
VIGILANCE AND
COMPLAINT Company Inc.
GM CEO & MD : 1
Sonali
DIVISION (CD) MANAGEMENT
DIVISION (VCMD)
((SECI),
SECI ), USA
(Subsidiary of SBL) Bank(UK)Ltd
DMD : 5
9 Branches:
Manhattan;
(Subsidiary of GM & eq. : 30
Jackson Heights; Astoria;
SBL) DGM & eq. : 146
ISLAMIC
BANKING
Atlanta; Michigan;
Paterson; Jamaica; 2 Branches =
AGM & eq. : 372
DIVISION (IBD) Ozone Park; Bronx. London Main Br.; SPO
SPO &&eq. : 11,274
274
1 Booth: Brooklyn.
Birmingham. PO & eq. : 2,793
SO & eq. : 5,346
Officer & eq. : 12,937
Total Manpower : 22,904
GMO
GMO, GMO
GMO, GMO, GMO
GMO, GMO
GMO,
RANGPUR Cumilla MYMENSINGH FARIDPUR Barishal
116 Br. 139 Br. 118 Br. 106 Br. 78 Br.
PO: PO: PO: PO: PO:

Rangpur; Dinajpur; Cumilla; Mymensingh; Faridpur; Barishal
Gaibandha; Chandpur; Tangail; Madaripur (Shariatpur); (Jhalakathi);
Thakurgaon (Panchagarh); Brahmanbaria; Kishoreganj; Kushtia; Patuakhali
Kurigram(Lalmonirhat) Noakhali; Feni Jamalpur Chuadanga( Meherpur) (Barguna)
RO: Nilphamari RO: Laxmipur RO: Sherpur; RO: Rajbari; RO: Pirojpur;
Netrokona Gopalganj Bhola
DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br: DGM Corp Br:
Rangpur Corp; Cumilla Corp Mymensingh Corp Faridpur Corp ---
AGM Corp Br: AGM Corp Br:

Dinajpur Barishal Corp
Corp(AGM) (AGM)
Annual Report 2020

YEAR OF EXCELLENCE
MILESTONES
1972 1974 1985 1989
Commencement Inauguration of 1st computer
of banking
operatrion of million Bank
Sonali Bank
First agency
transactions
First annual report
1973 1980 1986

Foreign remittance
million
2007 2009 2010 2012

Implementation of
commencement
of business of
Sonali Bank Retail Banker in
SMS Banking
Sonali Bank
Islami Banking
Implementation of Strongest Bank in

RMS+ Software
Asian Banker
Collecting Bank
2011
million
2008 2009 to 2013

million
ICMAB Best
22
1990 1994 2001 2006
Sonali Bank
2005
1993 1999
million
Foreign remittance
2013 2015 2017 2019

1st position in Annaul
Performance
Agreement (APA)
Financial Institute of 2018-29 by the
Core Banking Financial Institutions
Division.
Achieved Center for
Non-Residance
Bangladesh (NRBs)
Award.
2014 2018 2020

Achieved Highest Achieved the ICMAB
Operating Pro�t Best Corporate Award.
(20257.37 million) Achieved Highest
2016 in Overall Banking
Sector.
Operating Pro�t
(21526.93 million)
Achieved Highest in Overall Banking
Net Pro�t Sector.
trillion
(2264.21 million) Achieved Highest
Operation being Among all State Owned Net Pro�t
Commercial Banks in (3234.35 million)
Bangladesh. Among all State Owned
Best Corporate Commercial Banks in
Bangladesh.
Annual Report 2020

YEAR OF EXCELLENCE
LIST OF
CHAIRMANS
Sl. Managing Director and Chairman, Sonali Bank Tenure
01 Mr. G. M. Chowdhury 29.03.1972 – 26.03.1973
02 Mr. A. K. N. Ahmed 27.03.1973 – 17.11.1974
03 Mr. S. A. Chowdhury (Current Charge) 18.11.1974 – 24.01.1975
04 Mr. K. A. Rashid 25.01.1975 – 12.03.1981
Sl. Chairman, Board of Directors, Sonali Bank Tenure
01 Mr. A. M. Zahiruddin Khan (MP) 15.04.1981 – 31.03.1982
02 Mr. S. A. Khair 19.05.1982 – 04.12.1985
03 Mr. Chowdhury A. K. M. Aminul Haque 14.01.1986 – 30.03.1986
04 Mr. Keramat Ali 20.04.1986 – 09.04.1989
05 Major General (Retd.) M. Shamsul Haque (MP) 23.04.1989 – 24.05.1990
06 Mr. Md. Abdur Rahim (MP) 04.06.1990 – 25.11.1990
07 Mr. Md. Akhtar Ali 26.12.1990 – 30.06.1991
08 Mr. Iqbal Mahmud 04.08.1991 – 12.02.1996
09 Mr. A. N. M. Eusuf 28.02.1996 – 06.08.1996
10 Mr. M. Asafuddowlah 03.09.1996 – 03.08.1998
11 Mr. Mohammed Farashuddin 08.09.1998 – 18.11.1998
12 Mr. A. I. Aminul Islam 14.12.1998 – 14.06.2000
13 Mr. Muhammed Ali 27.06.2000 – 31.07.2001
14 Professor Dr. Amirul Islam Chowdhury 09.08.2001 – 07.08.2002
15 Mr. B. M. M. Mozharul Huq, NDC 12.08.2002 – 20.04.2003
16 Professor Mahbub Ullah 22.08.2003 – 19.04.2006
17 Mr. A. B. Mirza Md. AzizulIslam 19.04.2006 – 12.12.2006
18 Mr. Ali Imam Majumder 14.12.2006 – 16.11.2007

Sl. Chairman, Board of Directors, Sonali Bank Limited Tenure
01 Mr. Ali Imam Majumder 17.11.2007 – 09.09.2009
02 Mr. Quazi Baharul Islam 14.09.2009 – 27.12.2012
03 Dr. A H M Habibur Rahman 27.12.2012 -19.04.2015
04 Mr. Md. Fazle Kabir 05.05.2015-20.03.2016
05 Mr. Mohammad Muslim Chowdhury, Chairman (Acting) 21.03.2016-25.07.2016
06 Mr. Md. Ashraful Moqbul 26.07.2016–30.07.2019
07 Mr. Ziaul Hasan Siddiqui 28.08.2019 – Till Date
24
CEO & MANAGING DIRECTORS

OF SBL
Sl. Name Designation Tenure
Administrators / Managing Directors of Sonali Bank
01 Mr. M. Fazlur Rahman Administrator 16.12.1971 - 28.03.1972
02 Mr. G. M. Chowdhury Managing Director 29.031972 – 26.03.1973
03 Mr. A. K. N. Ahmed Managing Director 27.03.1973 – 17.11.1974
04 Mr. S. A. Chowdhury (Current Charge) Managing Director 18.11.1974 – 24.01.1975
05 Mr. K. A. Rashid Managing Director 25.01.1975 – 02.06.1979
06 Mr. S. A. Chowdhury (Current Charge) Managing Director 05.06.1979 – 31.07.1979
07 Mr. K. A. Rashid Managing Director 01.08.1979 – 12.03.1981
08 Mr. Abul Hashem (Current Charge) Managing Director 13.03.1981 – 02.05.1981
09 Mr. M. Ijadur Rahman Managing Director 03.05.1981 – 05.09.1983
10 Mr. Lutfar Rahman Sarker Managing Director 06.09.1983 – 01.01.1985
11 Mr. Ashraful Haque Managing Director 02.01.1985 - 31.07.1986
12 Mr. Shah Md. Afanur (Current Charge) Managing Director 01.08.1983 - 09.08.1986
13 Mr. A. A. Qureshi Managing Director 10.08.1986 - 01.10.1988
14 Mr. M.M.Nurul Haque (Current Charge) Managing Director 02.10.1988 - 18.04.1989
15 Mr. M. Ahsanul Haque Managing Director 19.04.1989 – 01.08.1996
16 Mr. Kh.Monjur Murshid (Current Charge) Managing Director 02.08.1996 - 02.08.1996
17 Mr. A. Q. Siddiqui Managing Director 03.08.1996 – 18.02.1997
18 Mr. Khandkar Ibrahim Khaled Managing Director 18.02.1997 – 03.11.1997
19 Mr. Mahbubur Rahman Khan Managing Director 03.11.1997 – 02.11.1999
20 Mr. Mahammad Hussain Managing Director 03.11.1999 – 02.01.2000
21 Mr. Md. Yusuf Ali Hawlader (Acting) Managing Director 03.01.2000 – 05.01.2000
22 Mr. Md. Enamul Haque Choudhury Managing Director 06.01.2000 – 15.05.2001
23 Mr. S. A. Chowdhury Managing Director 16.05.2001 - 12.11.2001
24 Mr. Rabiul Hossain Managing Director 12.11.2001 – 08.07.2004
25 Mr. M. Tahmilur Rahman Managing Director 09.07.2004 – 16.11.2006
26 Mr. Md. Amanullah (Additional) Managing Director 17.11.2006 – 16.12.2006
27 Mr. S. M. Aminur Rahman Managing Director 17.12.2006 – 14.11.2007
CEO & Managing Directors of Sonali Bank Limited
01 Mr. S. M. Aminur Rahman Managing Director & CEO 15.11.2007 – 25.01.2008
02 Mr. Mohammad Humayun Kabir(Additional) Managing Director & CEO 26.01.2008 - 27.01.2008
03 Mr. S. A. Chowdhury Managing Director & CEO 28.01.2008 – 27.01.2010
04 Mr. Kazi Fakhrul Islam (Additional) Managing Director & CEO 28.01.2010 – 19.05.2010
05 Mr. Mohammad Humayun Kabir Managing Director & CEO 20.05.2010 – 19.05.2012
06 Mr. Mohammad Atiqur Rahman (Additional) Managing Director & CEO 20.05.2012 – 16.06.2012
07 Mr. Pradip Kumar Dutta Managing Director & CEO 17.06.2012 - 16.06.2016
08 Mr. Ataur Rahman Prodhan (Additional) Managing Director & CEO 17.06.2016 – 23.08.2016
09 Mr. Md. Obayed Ullah Al Masud CEO & Managing Director 24.08.2016- 23.08.2019
10 Mr. Md. Ataur Rahman Prodhan CEO & Managing Director 28.08.2019- Till Date
Annual Report 2020

26
SONALI BANK LIMITED
AT A GLANCE
(Tk. in million)
Capital
YEAR OF EXCELLENCE
Loans and Classified Foreign Operating Manpower Manpower No of Authorized Paid up

Year Deposit Import Export Net Profit Adequacy
Advances Loans remittance Profit (Officer) (Staff) Branches Capital Capital
Ratio
2020 1258786 586233 107674 165550 25160 129056 21527 3234 10.02 16738 2180 1226 60000 45300
2019 1158788 551026 111994 255965 25666 111483 17100 2710 10.09 17245 2364 1224 60000 45300
2018 1097666 464166 121883 257020 32503 102781 20257 2264 10.10 14671 2600 1215 60000 45300
2017 1064311 423218 149302 1155300 28494 82292 11955 7092 10.35 15308 2993 1211 60000 41300
2016 1031608 384538 109115 134328 36882 105922 4251 1516 10.33 18793 1410 1209 60000 38300
2015 866012 346346 86849 200599 45432 124798 8651 587 10.08 19401 2699 1207 60000 38300
2014 778043 337554 86437 300143 63525 127652 8547 6055 12.24 19554 2892 1204 60000 31200
2013 685895 343451 103769 195892 62967 132862 2971 3580 7.59 19653 3237 1203 20000 11250
2012 599294 378147 125975 287288 87408 116866 11036 (24959) (0.94) 20088 3295 1200 20000 11250
2011 533192 345991 61588 307479 80878 101538 12391 9957 12.60 18596 3342 1196 20000 11250
2010 478134 286098 68315 164043 74143 104378 8489 (975) 10.80 17989 2851 1187 20000 9000
2009 406152 254023 69834 96864 64442 102609 2311 3490 14.60 18091 3415 1183 20000 9000
2008 364386 231167 72677 151465 79390 103445 1617 2311 12.61 11507 10332 1182 20000 9000
2007 328997 206348 92014 76497 78046 92178 4247 974 12.47 11769 10773 1183 10000 9000
2006 302303 241029 58901 67763 79695 98449 3006 (36276) (16.32) 12118 11155 1183 10000 5000
2005 277079 227001 51126 118528 64092 75482 3964 208 4.06 12380 11553 1183 10000 3272
2004 252234 168283 47654 85239 57213 76680 953 158 4.65 12732 11718 1186 10000 3272
2003 230339 155198 49664 52577 47907 65535 540 106 5.08 12260 12455 1186 10000 3272
2002 222222 156113 52863 52940 41503 66098 910 159 5.07 12380 12857 1221 10000 3272
2001 215541 141993 54399 41419 43809 50090 491 82 5.02 12728 13025 1291 10000 3272
2000 197381 133281 51507 50822 44211 47935 797 132 - 12171 13875 1293 10000 3272
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
(Tk. in million)
Capital
Loans and Classified Foreign Operating Manpower Manpower No of Authorized Paid up
Year Deposit Import Export Net Profit Adequacy
Advances Loans remittance Profit (Officer) (Staff) Branches Capital Capital
Ratio
1997 136062 85451 39009 32040 33158 24092 132 132 - 11629 14496 1313 10000 3272
1996 123835 76116 30867 29505 26284 19810 248 248 - 8716 17527 1313 10000 3272
1995 110833 65830 25081 41872 20998 19781 716 716 - 8667 17551 1310 10000 3272
1994 101411 53893 21245 28368 18818 18809 613 613 - 8736 16941 1307 10000 3272
1993 84685 53631 21600 13136 12140 15385 20 20 - 8149 17487 1303 10000 3272
1992 76678 48693 17567 13294 10557 14984 45 45 - 8285 16477 1300 10000 2427
1991 68766 45218 11971 12234 10668 13756 17 17 - 7661 17450 1296 10000 2427
1990 57392 44311 - 16980 12559 13180 51 51 - 7608 17650 1291 10000 2427
1989 52214 41868 - 20190 11335 11846 52 52 - 7480 18222 1285 200 55
1988 45795 35277 - 17271 9703 11305 160 160 - 7337 18507 1276 200 55
1987 39629 29808 - 16563 7531 11356 164 164 - 7148 18441 1262 200 55
1986 35572 29272 - 14465 6835 10300 459 459 - 7363 18522 1254 200 55
1985 34576 27541 - 13514 7290 8501 499 499 - 6080 19191 1245 200 55
1984 27031 22123 - 9721 6151 9081 552 552 - 6099 18321 1233 200 30
1983 20497 17011 - 9796 5841 11022 505 505 - 5253 16084 1214 50 30
1982 15961 16832 - 9432 5675 8343 481 481 - 3931 13776 1055 50 30
1981 11927 11856 - 8182 4701 5101 232 232 - 3947 13940 1031 50 30
1980 10967 9626 - 10926 4648 4206 177 177 - 18183 1011 50 30
1979 8388 6756 - 7908 4051 5773 96 96 - 13481 843 50 30
1978 5996 4833 - 3632 3363 3885 64 64 - 11744 709 50 30
1977 4662 3625 - 2951 2336 1805 98 98 - 10135 600 50 30
1976 3844 2419 - 2175 1649 777 91 91 - 8556 450 50 30
1975 3329 2151 - 2741 912 442 97 81 - 6989 400 50 30
1974 2278 1677 - 2163 663 189 40 31 - 6294 359 50 30
1973 2103 1290 - 703 525 216 25 21 - 5760 306 50 30
1972 1731 854 - 43 22 - 05 02 - 4708 274 50 20
Annual Report 2020

YEAR OF EXCELLENCE
BOARD OF
DIRECTORS
Ziaul Hasan Siddiqui Md. Fazlul Haque

Chairman Director (Retired on 03.06.2021)
A.B.M Ruhul Azad A. K. M. Kamrul Islam FCA, FCS

Director (Joined on 15.06.2021) Director
28
BOARD OF DIRECTORS AND THEIR PROFILE
Ishtiaque Ahmed Chowdhury Dr. Daulatunnaher Khanam Md. Mofazzal Husain

Director Director Director
Molla Abdul Wadud Professor Dr. Mohammad Kaykobad Md. Ataur Rahman Prodhan
Director Director (Joined on 25.08.2020) CEO & Managing Director
Annual Report 2020

YEAR OF EXCELLENCE
COMPOSITION OF COMMITTEES
OF THE BOARD OF DIRECTORS
Executive Committee
Sl. Name Status with the Bank Status with the Committee
01 Mr. Ziaul Hasan Siddiqui Chairman Chairman
Director
02 Mr. Md. Fazlul Haque Member
(Retired on 03.06.2021)
03 Mr. Md. Mofazzal Husain Director Member
04 Mr. Molla Abdul Wadud Director Member
05 Mr. Md. Ataur Rahman Prodhan CEO & Managing Director Member
Audit Committee
01 Mr. A.K.M. Kamrul Islam FCA, FCS Director Chairman
02 Mr. Ishtiaque Ahmed Chowdhury Director Member
03 Dr. Daulatunnaher Khanam Director Member
04 Professor Dr. Mohammad Kaykobad Director Member

01 Mr. Ishtiaque Ahmed Chowdhury Director Chairman
Director
(Retired on 03.06.2021)
Composition of Shariah Supervisory Committee

Sl. Name Status with the Committee
01 Professor Dr. Muhammad Abdur Rashid Chairman
02 Mr. Md. Mofazzal Husain Member
03 Mr. Md. Ataur Rahman Prodhan Member
04 Deputy Managing Director-1 Member
05 Mr. Md. Abdul Awwal Sarkar Member
06 Mufti Mohammad Muhibbullahil Bakee Member
07 Dr. Md. Ruhul Amin Rabbani Member
30
EXECUTIVE
COMMITTEE
Ziaul Hasan Siddiqui Md. Fazlul Haque

(Retired on 03.06.2021)
Md. Mofazzal Husain Molla Abdul Wadud Md. Ataur Rahman Prodhan
Director
(Retired on 03.06.2021)
05 Mr. Md. Ataur Rahman Prodhan CEO & Managing Director Member
Annual Report 2020

YEAR OF EXCELLENCE
AUDIT
COMMITTEE
A.K.M. Kamrul Islam FCA, FCS Ishtiaque Ahmed Chowdhury
Dr. Daulatunnaher Khanam Professor Dr. Mohammad Kaykobad
32
RISK MANAGEMENT
COMMITTEE
Ishtiaque Ahmed Chowdhury Md. Fazlul Haque

(Retired on 03.06.2021)
Dr. Daulatunnaher Khanam Md. Mofazzal Husain Professor Dr. Mohammad Kaykobad
Director
(Retired on 03.06.2021)
Annual Report 2020

YEAR OF EXCELLENCE
Ziaul Hasan Siddiqui

Chairman
Mr. Ziaul Hasan Siddiqui joined as Chairman of the Board of bank Ltd. He was an advisor to Prime Bank Limited and was
Directors of Sonali Bank Limited on 22 August, 2019. He is an independent director of Union Capital Ltd., Summit Power
the former Deputy Governor of Bangladesh Bank. Ltd., and Summit Purbanchal Power Co. Ltd. Before joining
as Chairman of Sonali Bank Limited, Mr Siddiqui was CEO
Mr. Ziaul Hasan Siddiqui has track-record of successfully
of IOF (IGW Operators Forum). He taught Microeconomics,
developing customized financial and management strategies
Macroeconomics, Financial Institutions and Markets at BRAC
to meet the needs of bank on the basis of continuous
University, Northern University, University of Asia Pacific
analysis of economic trends. He has strong ability to
and Australian Catholic University in Sydney. He is also the
quickly understand an organization; evaluate business
Chairman of the Sonali Investment Limited. He also lectured
and investment opportunities prevailing in the market and
at Bangladesh Public Administration Training Centre,
leverage those based on organizational strengths. He is
Defence Services Command and Staff College and National
equally savvy to ensure business growth and diversification.
Defence College.
Mr. Siddiqui has highly successful and results-driven
Mr. Siddiqui obtained his MPA (Masters in Public
exposure in the financial sector with more than 35 years
Administration) degree from Harvard University (USA)
of comprehensive versatile Central Bank experience. Mr.
and MA degree in Economics from Dhaka University. He
Siddiqui started his career with Bangladesh Bank in 1976. He
enhanced his professional expertise by participating in a
served as Deputy Governor of Bangladesh Bank for more
number of foreign training courses including ones from
than 5 years with specialization in monetary policy, foreign
Ohio State University, World Bank, IMF and ADB. Besides
exchange policy and reserve management. He also served
having professional diploma in Banking (DAIBB), Mr. Siddiqui
as Head of Financial Intelligence Unit (FIU) of Bangladesh
has completed Training and Assessment Certificate Course
tasked with the responsibility of upgrading Anti Money
from Australia.
Laundering (AML) regime to international standard and
formulating strategies for Combating Financing of Terrorism Late Rahim Uddin Siddiqui, father of Mr.Siddiqui was a
(CFT). He played a key role in making Taka convertible for renowned Journalist of many prominent National Dailies
current account transaction, moving from fixed to floating of the country, including the Daily Azad, Ittefaq, Millat etc
exchange regime, sovereign rating of Bangladesh and and died a premature death while working as a class one
drafting the Guidelines for Foreign Exchange Transaction. gazetted officer (information officer). Late Julekha Siddiqui,
mother of Mr. Siddiqui was a homemaker. Mr. Siddiqui’s wife
He was the Managing Director of Security Printing Press
Mrs. Bilu Siddiqui, is a Grade-A singer of Bangladesh Betar
Corporation Bangladesh Ltd. and a member of the APG
and BTV. She also performs in different TV channels. Mr.
Steering Committee representing South Asian Countries. He
Siddiqui is blessed with a daughter and a son. Both of them
also acted as the Chairman of Bangladesh Commerce Bank
live in Australia.
Ltd., Board member of Karma Sangsthan Bank Ltd. and AB
34
Md. Fazlul Haque

Director (Retired on 03.06.2021)
Md. Fazlul Haque, Additional Secretary, has been appointed as Upazila Nirbahi Officer at Feni Sadar and Banshkhali under
as Director of Sonali Bank Limited on December, 2015 Chittagong District and Additional District Magistrate in
while he was working in Bank and Financial Institutions Rangamati Hill District.
Division of Ministry of Finance. Mr. Haque enjoyed various
Mr. Haque completed his MBA in 2005. He obtained his
positions at the national level such as the Project Director of
M.Sc. and B.Sc.(Honours) degrees in Agricultural Economics
Bangladesh Trade Policy Support Program (BTPSP), the Joint
from Bangladesh Agricultural University, Mymensingh. He
Secretary (Relief) of the Ministry of Disaster Management
has undergone a number of professional trainings at home
and Relief (MoDMR), the Secretary of Bangladesh Jute
and abroad. Working as Assistant Commissioner (Land) he
Mills Corporation, the Director Administration and Director
published a book on land matters named Namzari (Mutation).
Finance in Civil Aviation Authority of Bangladesh and the
Deputy Secretary at the Ministry of Establishment. He visited Cambodia, Sweden, London, China, South Korea,
Japan, Singapore, Pakistan, Sri Lanka, India, Indonesia,
Md. Fazlul Haque is a career civil servant and started his
Ethiopia, Malaysia, USA, UAE and Saudi Arabia for the purpose
career in the administrative service of Bangladesh. The first
of Training, knowledge sharing on Administration, Disaster
date of his joining in the service was 21st January, 1986
Management, Social Protection Activities, Public Policies and
(BCS 1984 Batch) as Assistant Commissioner at Chittagong
Religious Prayers.
Collectorate. At the field level, he worked as Assistant
Commissioner (Land), at Raozan and Hathazari, Upazila Md. Fazlul Haque was born on 10th August, 1960 in a
Magistrate at Boalkhali under Chittagong District. He worked respectable muslim family in the District of Jamalpur.
Annual Report 2020

YEAR OF EXCELLENCE
A.B.M Ruhul Azad

Director (Joined on 15.06.2021)
Md. A.B.M Ruhul Azad was appointed as a Director of the Administration. He was promoted as Joint Secretary in 2013
Board of Directors, Sonali Bank Limited on 15 June, 2021. and promoted as Additional Secretary in 2017.
He is also an active member of Executive Committee and
Mr. Azad obtained his B.Sc. (Honors) degree in Agricultural
Risk Management Committee of the Board of Directors of
Science from Sher-E-Bangla Agricultural University, Dhaka.
Sonali Bank Limited. He has been working as the Additional
He also obtained MSS degree in Government and Politics.
Secretary of Financial Institutions Division of Ministry of
Finance, Government of the People’s Republic of Bangladesh Mr. Azad has participated in different international
since October 23,2018. conferences and meetings as a member of Bangladesh
delegation. Mr. Azad had the opportunity to participate
Mr. Azad is respected for his innovative ideas, concepts and
various training, workshop and seminar held in different
various challenging endeavors in Management & Public
countries of the world such as India, South Korea, Singapore,
Administration. Mr. Azad enjoyed various positions at the
Thailand, Vietnam, China, Netherlands, Austria, Belgium,
national level such as Additional Secretary of Ministry of
Switzerland, France, Turkey, Italy and USA. He also completed
Youth and Sports, Director of Bangladesh Krira Shikkha
training program on “Public Administration Development
Pratisthan (BKSP), Deputy Director of National Housing
Program on Public Policy, Service Delivery and Negotiations”
Authority (NHA) and Deputy Secretary, Ministry of Industries.
from Duke University, North Carolina, USA. He has a special
A. B. M Ruhul Azad is a career Civil Servant and started his training on Intellectual Property Right System.
career of as an officer of BCS 8th Batch (1986).The first
A. B. M Ruhul Azad was born on 1st January, 1963 in a
date of his joining in the service was 20 December 1989.
respectable muslim family in the District of Narsingdi. He is
During the early stage of his career Mr. Azad worked in
married to Ms. Mirza Morsheda Mahbub. They are blessed
different position of Bangladesh Ansar. In 2006 Mr. Azad
with two sons.
was appointed as the Deputy Secretary of Ministry of Public
36
A.K.M. Kamrul Islam FCA, FCS

Director
Mr. A.K.M. Kamrul Islam was appointed as a Director to the Mr. Islam was an active member and elected Director
Board of Directors of the Bank on 22 December 2016. He is of Dhaka Chamber of Commerce and Industry (DCCI)
the Chairman of the Audit Committee of the Bank. He is a for 2005-07 and 2016-2018. He is currently Senior Vice
partner of Islam Aftab Kamrul & Co. Chartered Accountants. President of DCCI. He also has been elected as the Director
He has special expertise in Assurance & Auditing, Taxation of Japan Bangladesh Chamber of Commerce and Industries
and Financial Consultancy Services. (JBCCI) for the period of 2016-2018. He is President of the
Accounting Alumni, University of Dhaka and Life Member of
Mr. Islam became Chartered Accountants and fellow
Transparency International Bangladesh Chapter.
member of the Institute of Chartered Accountants of
Bangladesh (ICAB) in 1993. He is also a fellow and associate Mr. Islam is respected for his innovative ideas, concepts
member of many National and International Professional and various challenging endeavors in business sectors and
Bodies. social works in Bangladesh. He has 29 years of professional
experience.
Mr. Islam is a fellow member of Institute of Chartered
Secretaries of Bangladesh (ICSB); associate member of Mr. Islam graduated with Honors and Masters in Accounting
Information System Audit and Control Association (ISACA), from Dhaka University. He visited India, Pakistan, Nepal,
USA and International Institute of Internal Auditors, Florida, Bhutan, Japan, China, Thailand, Singapore, Malaysia,
USA; life member of Bangladesh Economic Association Netherlands, Belgium, Germany, Saudi Arabia etc.
since 1997; member of Bangladesh Society for Total Quality
Mr. Islam, son of late Alhaj A.K.M. Tajul Islam and late Hasne
Management (BSTQM); founder member of Intellectual
Ara Islam, was born in Comilla on 14 January 1959. He is
Property Association of Bangladesh (IPAB) and Chairman of
married to Mrs. Syeda Kaniz Fatema who is a housewife.
Mashnoons Limited.
They have two daughters.
Annual Report 2020

YEAR OF EXCELLENCE
Ishtiaque Ahmed Chowdhury

Director
Mr. Ishtiaque Ahmed Chowdhury, has been nominated as situational leadership approach and can pursue tough goals
the Director of the Board of Directors of Sonali Bank Limited in any market scenario.
on September 19, 2018. Prior to this, he was the Managing
He is a dreamer, humanitarian, organizer and an art
Director & CEO of Trust Bank Limited.
connoisseur. He is involved in Rotary Club and held position
Having started his career with Rupali Bank Limited as of President of Jahangirnagar, Dhaka unit of Rotary District.
Probationary Officer in 1977, Mr. Chowdhury gained He is also Treasurer of Combat Hunger Project Committee of
grounded experiences in many fields ranging over rural Rotary International District. He is a member of Uttara Club,
banking, SME banking, Wholesale Banking and Client Kurmitola Golf Club, and Childhood Cancer Foundation,
Acquisition that helped him make remarkable turnaround Dhaka. He is presently Executive Member of Association
of loss incurring branches into profitable ones within target of Bankers Bangladesh (ABB). He is a “Tax Card” holder, a
time. very prestigious status provided by NBR for 2011-2013.
Mr. Chowdhury has also won the 13th Rapport Award for
Mr. Chowdhury spent half of his career time in AB Bank
Excellence in Human Resource Development-2013.
Limited, the first private commercial bank of the country,
from 1984 through 2002. He headed major corporate With a distinctive academic track record, he passed S.S.C
branches of the Bank including Kawran Bazar, Uttara, and and H.S.C in 1968 and 1970 respectively. He holds MSS
Motijheel Corporate Branch. He also worked in Financial degree with Honors in Political Science and Law from the
Control department of the Bank for almost four years. University of Dhaka. He is a DiplomaEd Associate of Institute
He won the best manager award and appreciation for his of Bankers, Bangladesh.
outstanding performance at the Bank.
Mr. Chowdhury visited many countries for official purpose
Over the last 29 years, Mr. Chowdhury’s career evolved as a as well as personal pleasure. He participated in a good
well rounded banker with adequate exposures in Strategic number of professional trainings, workshops, and seminars
Risk Management, Revenue Growth, Client Acquisition, and at home and abroad. He participated in a certificate course
Operations Management. titled ‘Value Creation in Banking and Strategic Management
in INSEAD (Business School for the world) frame sponsored
Mr. Chowdhury believes in inclusive banking and has Always
by Standard Chartered Bank from October 29 to November
put efforts to bring banking services to the doorstep of
01, 2015.
people at large. He strongly holds that a banker has to be
trustworthy and dedicated towards serving people in order Mr. Chowdhury was born in Sylhet in 1953. His father was
to uplift their livelihood and socio economic status. a member of Assam Legislative Council of British Period
in Assam, India. Mr. Chowdhury is married to Syeda Latifa
He has also proven to be an effective team player and
Ishtiaque. Their only son, Chowdhury Ahmed Tausif Ishtiaque
can get things done by ensuring coherent and integrated
has graduated from Institute of Business Administration (IBA),
management atmosphere. He is one of the proponents of
University of Dhaka and is now working in HSBC Bangladesh.
38
Dr. Daulatunnaher Khanam

Director
Dr. Daulatunnaher Khanam has been director of Sonali Bank Dr. Khanam took part in international training programs,
Limited since January 13, 2019. Prior to this, she was the workshops and seminars in USA, UK, Japan, Malaysia,
Deputy Managing Director of Bangladesh House Building Singapore, Thailand, Tunisia and Turkey. She participated in
Finance Corporation. many training programs at home as well.
Dr. Khanam started her banking career as Senior Officer in Dr. Khanam authored important text books of Economics
Bangladesh Krishi Bank in 1984. Right from the beginning for Higher Secondary students and Bangladesh Studies for
she applied herself to excel as a professional banker. As a graduate students that have become very popular among
result, she rose steadily through ranks to become the Deputy the students and teachers. She has serious publications to
Managing Director in 2018. During her long career, she held her credit on various economic topics in prestigious journals
various important positions in the bank. at home and abroad.
Dr. Khanam has a distinguished academic career. She Dr. Khanam is a life member of Bangladesh Economic
graduated from Jahangirnagar University with honours in Association and Economic Association of Jahangirnagar
Economics in 1981 and completed her MSc in 1983 from University and Associate member of Bangladesh Society for
the same University. One year after she had joined BKB, She Training & Development Center, Dhaka.
received a scholarship of the Indian government for Ph.D
She was born in a respectable Muslim family in 1959 in the
in Economics in Banaras Hindu University, Banarasi, India.
district of Kishoregonj. She is married to Mr. Md. Shamsul
Her dissertation topic was ‘Role of Institutional Finance in
Kabir Khan and is blessed with two daughters and one son.
Agricultural Development of Bangladesh.’ She was awarded
Ph.D degree in 1990.
Annual Report 2020

YEAR OF EXCELLENCE
Md. Mofazzal Husain

Director
Mr. Md Mofazzal Husain, former Director of Janata Bank image in the banking arena.
Limited and Managing Director of Rajshahi Krishi Unnayan
Mr. Husain received extensive training on banking related
Bank was appointed as a Director of Board of Directors of
subjects both at home and abroad. He participated in a
Sonali Bank Limited on 13 May, 2019.
Nashville, Tennessee, USA & Citicorp School of Banking,
He is a member of Audit Committee and Risk Management New York, USA in 1993 organized under joint collaboration
Committee of the Board of Directors of Sonali Bank Limited. of FSRP (Financial Sectors Reforms Program) & USAID. He
also visited Japan, Hong Kong, Thailand, India, United Arab
He obtained MBA degree from the Institute of Business
Emirates, Oman, Saudi Arabia, Germany, Switzerland and
Administration (IBA), University of Dhaka in 1977.
programs/seminars and for other purposes.
Mr.Husain has more than 36 (Thirty six) years of core
Specially relating to Banking, Finance and Management as
banking experience with increasing responsibilities in career
a Resource Person/Guest Speaker in Training Institutes of
commenced with Sonali Bank Limited as Senior the rank of
Mr. Husain is /was associated with various socio-cultural
Managing Director of Rajshahi Krishi Unnayan Bank on 26
organizations of National and International level, viz: Lions
July 2012. He retired on 01 October 2015.
Clubs International District 315A Bangladesh, Lions Club
Mr. Husain worked in Agrani Bank for about 9 years of Dhaka, Bangladesh Cricket Board, Nazrul Academy,
(from September 2003 to July 2012) in the capacity of Shimanta Granthagar, Khelaghar etc.
General Manager and Deputy Managing Director with full
Mr. Husain, son of Late Dr. Afsar Ali and Late Rahima Khatun,
satisfaction of the policy level management and operational
was born on 01 October 1955 in Tangail, Bangladesh. He
management covering most of the areas of bank.
is Married to Mrs. Zeenat Sultana who is a housewife. They
During his long banking career he proved himself as an have been blesses with two daughters , Mahsina Tabassum
outstanding & honest banker with strong personality & clean and Ishrat Tabassum and a son, Jamael Tanveer.
40
Molla Abdul Wadud

Director
Mr. Molla Abdul Wadud joined as a Director of Sonali Bank He is also one of the members of the Audit Committee and
Limited on 30July, 2019. He is a formerGeneral Manager and the Risk Management Committee of the Board of Directors
Company Secretary of Bakhrabad Gas Distribution Company of Sonali Bank Limited.
Limited (BGDCL).
Mr. Molla Abdul Wadud completed his graduation in
Mr. Molla Abdul Wadud has highly successful and results- Commerce from the University of Chittagong. Along with
driven exposure in the Gas sector. He is respected for graduation, he also obtained LL.B. degree from the same
his innovative ideas, concepts and various challenging university. He also completed Masters in commerce form
endeavors in the Gas sector of Bangladesh. He has more Dhaka University. He enhanced his professional expertise by
Administration. He has exceptional ability of organizing participating in a number of in-country and foreign training
by ensuing coherent and integrated management courses during his career including Integrity Management in
atmosphere. He has shown his prudence in drafting cases of Organisations, Training of trainers etc. He visited Malaysia,
the company. He was also served as compliance standard. Thailand and Saudi Arabia for the purpose of training and
religious prayers.
Mr. Molla Abdul Wadud started his career in Bakhrabad Gas
sraey 23 gniruD .5891 ni detimiL ynapmoC noitubirtsiDtenure Mr. Wadud, Son of Late Shamsul Haque Molla and Meherun
of professional experience in gas sector, he Deputy Nessa Khanom, was born in Narsingdi on 02 June, 1958. He
General Manager, Company Secretary and General Manager is married with Mrs. Mahinoor Akter Chowdhury and blessed
of Bakhrabad Gas Distribution Company Limited (BGDCL). with two daughters.
Annual Report 2020

YEAR OF EXCELLENCE
Professor Dr. Mohammad Kaykobad

Director
Dr. Kaykobad was appointed as a Director of the Board 2008 from which Bangladesh received 22 medals including
of Directors, Sonali Bank Limitedon 25 August,2020.He 4 silver medals. He was the Chief Judge of IIT Kanpur Asia
received M.S.(Hons.) in Engineering from OMEI, now Odessa Region Site of ICPC in 2010, 2011 and 2013. He received
State Maritime University, in 1979. In 1982 he received an the outstanding coach award of ICPC in 2002 at Honolulu,
M.Eng. Degree from AIT, Thailand, and a Ph.D from the Hawaii, only Senior Coach award recipient at the World Finals
Flinders University of South Australia in 1988. Dr. Kaykobad is of ICPC held at St. Petersburg, Russia in 2013, and ICPC
a Fellow of Bangladesh Academy of Sciences(BAS). Foundation Life time coach award in 2019 at Porto, Portugal.
He was also awarded a gold medal by Bangladesh Physics
Dr. Kaykobad was a Professor at CSE Department, BUET Olympiad for his contributions to Olympiad movement. Dr.
since 1997, and served as its Head during 1996-1999. He Kaykobad was recognized as distinguished alumnus in 2008
served as Dean of the Faculty of EEE, BUET for two years. by his alma mater The Flinders University of South Australia.
He is now a Distinguished Professor, CSE Department, BRAC He was invited in the prestigious Heidelberg Laureate Forum,
University. Dr. Kaykobad also served as a professor at CSE 2014, and participated there. Dr. Kaykobad is a frequent
Department, Kyung Hee University, South Korea, and at NSU, visitor of schools, colleges and universities of the capital and
Bangladesh. outside.
Dr. Kaykobad has published over 50 research articles in Dr. Kaykobad was a Visiting Professor at the CSE Department,
international journals of repute. He authored, coauthored or the Chinese University of Hong Kong, at Kyung Hee
edited 15 books. Many of these books are for inspiring young University, Korea, ANU and Monash University, Australia
students develop either programming or mathematics skill and Amritapuri University, India. In year 2005 the President
or for developing patriotism. He was a guest co-editor of of the country presented him with a Gold Medal awarded
the proceedings of International Conference on Computer by Bangladesh Computer Society for his contribution to
and Information Technology (ICCIT 2009) published by computer programming culture in the country. In year 2006
Academy Publisher. He won BAS Gold Medal for physical sciences in the senior
He was a co-chair of the workshop WALCOM, 2016 held group which was awarded by the Prime Minister of the
at Kathmandu, proceedings of which was published by country. Dr. Kaykobad is a member of the Executive Council
the famous publisher Springer. He is also a coeditor of of Bangla Academy.
the book on “Technical Challenges and Design Issues Dr. Kaykobad has been playing active role in the
in Bengali Language Processing”.Professor Md. Zafar Iqbal computerization of both public and private enterprises.
and he were entrusted with the responsibility of editing/ He worked as a Director of Dhaka and Chittagong Stock
rewriting 6 text books of SSC level by the Ministry of Exchanges for many years. Currently he is an independent
Education. director of Dhaka Stock Exchange. Dr. Kaykobad is a member
Dr. Kaykobad was the Organizing Chair of the first ever of Academic Council and Syndicate of several universities.
International Computer conference ICCIT held in the soil of Dr. Kaykobad was also member of Investigation Team of
Bangladesh. He was also the Chair of the Steering Committee multimillion dollar cyber heist from Bangladesh Bank, and
for Workshop on Algorithms (WALCOM). He is a frequent was the convener of Administrative team constituted by the
column writer in National Dailies authoring over 400 articles, Government to investigate into Question leaking of public
most of which are related to education of the country. He examinations.
has been one of the pioneers in introducing Mathematics Dr. Kaykobad was born on 1 May, 1954 at village Jabra,
Olympiad, Olympiad in Informatics and Science Olympiad in District Manikganj. He is married to Saleha Sultana Kaykobad
Bangladesh. He has been leading Bangladesh IOI team since and has two sons.
42
Md. Ataur Rahman Prodhan

Mr. Md. Ataur Rahman Prodhan has been CEO & Managing Aftab Uddin Prodhan and also a high school (Amanatullah
Director of Sonali Bank Limited since August 28, 2019. Prior Prodhan secondary school) in the name of his grandfather
to this, he was CEO & Managing Director of Rupali Bank Late Amanatullah Prodhan.
Limited, which was preceded by his brief stint as Managing
He has been elected as a member of the Senate of Dhaka
Director of Probashi Kollyan Bank.
University in 2018, commanding highest ever votes in the
Mr. Prodhan is a man with distinctive vision, dynamism, history of Senate election. He was born in the district of
commitment & innovative ideas. He also has an illustrious Lalmonirhat in 1960. His hobby is travelling, swimming and
banking career. He joined Sonali Bank as Financial Analyst reading books.
in 1984 and rose steadily through the ranks to become the Chairman:
Deputy Managing Director in May, 2015. During his long
career, he held many important executive roles, including Bangladesh Foreign Exchange Dealers Association (BAFEDA)
be the ultimate of corporate banking, given its sheer size and Primary Dealers Bangladesh Limited (PDBL)
range of businesses and services. He had also been CEO of Sonali Intellect Limited.
Sonali Bank (UK) Limited, situated in London, from March,
Vice-Chairman:
2012 through May, 2015. As Deputy Managing Director, he
held the positions of Head of HR and Head of Credit, among Institute of Bankers, Bangladesh (IBB)
others, successfully till he became Managing Director of Industrial and Infrastructure Development Finance Company
Probashi Kollyan Bank. Limited (IIDFC).
A consummate professional, Mr. Prodhan earned laurels and Director:
appreciations from the authority all through his career for
Sonali Exchange Co. Inc., New York
his extra ordinary performances. His hands-on approach has
Padma Bank Limited
resulted in capturing numerous success for expanding the
Investment Corporation of Bangladesh (ICB)
business of the Bank.
Sonali Investment Limited
Mr. Prodhan graduated with honors and completed his Central Depository Bangladesh Limited (CDBL).
M.Com. in Management from Dhaka University in 1980 and Member:
1981 respectively. He took part in many training programs
and seminars at home and abroad. Governing Board, Bangladesh Institute of Bank Management
(BIBM)Finance Committee, Dhaka University.
A profound philanthropist, Mr. Prodhan is engaged in many
humanitarian activities. He is a Rotarian and the past president
of Rotary Lalmonirhat. As Executive member of activities for
that region. He established a primary school (Aftab Uddin
Prodhan govt. primary school) in the name of his father Late
Annual Report 2020

YEAR OF EXCELLENCE
CEO & MANAGING DIRECTOR

DEPUTY MANAGING DIRECTORS
Md. Afzal Karim Md. Zahidul Haque Md. Abdul Mannan

(Joined BHBFC as Managing Director) (Joined Probashi Kollyan Bank
as Managing Director)
Md. Murshedul Kabir Md. Idris
44
MANAGMENT TEAM
GENERAL
MANAGERS
Mohammad Modasser Hasan Md. Abdul Mazid Md. Jahangir Alam
Subhash Chandra Das Mohammad Rezwan Al Bakhtiar Imran Ahmed (CAO)

FCA, FCMA (CFO) (CITO)
Annual Report 2020

YEAR OF EXCELLENCE
DEPUTY
GENERAL MANAGERS
SL. SL.
NAME NAME
NO NO
1. MR. MD. ABDUL WAHAB 36. MR. MD. RAFIQUL ISLAM
2. MR. MD ABU SAYED 37. MR. MD. AMINUL ISLAM
3. MR. ABUL KALAM MD. FAZLUL HOQUE 38. MR. ZAHIDUL ISLAM MOLLA
4. MR. SYED MONZURUL ISLAM 39. MRS. MAKSUDA AKHTER ROSY
5. BEGUM MAHBUBA AHSAN 40. MR. MD. MOHIUDDIN BUIYAN
6. MR. MD. MOHSIN 41. MR. SWAPAN KUMAR DAS
7. BEGUM SALMA HALEEM 42. MR. SHAHIDA KHANAM
8. MR. BABUL MD. ALAM 43. MR. MD. SHAFIQUL ISLAM
9. MR. MD. BILLAL HOSSAIN 44. MR. MD. MATIAR RAHMAN SARKER
10. MR. MD. REZAUL KARIM 45. MR. MD. NAZRUL ISLAM
11. MR. MD. KABIR HUSAIN 46. MR. A.K.M.SHAMSUL ISLAM
12. MR. MD. HARUN-OR-RASHID 47. MR. SHANTANU GANGAPHADHY
13. MR. MD. SIRAJUL ISLAM 48. MR. MD. ARSHAD HOSSAIN
14. MR. MD. MONIRUZZAMAN 49. MR. MUNSHI ZAHIDUR RASHID
15. MR. KHOKON CHANDRA BISWAS 50. MR. MD. ABDUL MANNAN SHEAK
16. MR. TAUHIDUL ISLAM 51 MR. MD. SHAKHAWAT HOSSAIN
17. MR. SARDER MOZIBUR RAHMAN .52. MR. MD. SHAFIUL ALAM
18. MR. MIR HASAN MAHAMMAD ZAHID 53. MR. MD. SORIAT ULLAH
19. MR. MD. NURUN NABI 54. MRS. NAIMA AKHTER
20. A.K.M.SALIM AHMED 55. MR. SHAHNAZ BEGUM
21. GOPAL CHANDRA GOLDER 56. MR. MD. SAIFUL AZIZ
22. MR. MD. ABDUL QUDDUS 57. MR. PROTIVA RANI SARKER
23. MR. MD. AMINUL ISLAM 58. MR. MOHAMMAD IQBAL KABIR
24. MR. MD. ALI ASHRAF ABU TAHER 59. MR. MD. SHAJAHAN
25. MR. MD. ZAMAN MOLLA 60. MR. MOHAMMAD MONOARUL ISLAM
26. MR. GIAS UDDIN MAHMOOD 61. MR. MOHD. ROBIUL ALAM
27. MR. MD. MUSA KHAN 62. MR. MD. MONIR HOSSAIN
28. MR. MD. RASHIDUL ISLAM 63. MRS. UMME KULSUM
29. MR. ASHRAFUL HAIDER CHOWDHURY 64. MRS. BITHI AKTER
30. MR. KAZI MD. MOFIZUL ISLAM 65. MR. MD. TANGIMUL ISLAM
31. MR. MD. MIZANUR RAHMAN MAZUMDER 66. MR. MD. ISMAIL
32. MR. MD. SHAHJAHAN 67. MR. RAWSHAN JAHAN
33. MR. MD. GOLAM SIDDIQUE 68. MR. MD. ABDUL MATIN
34. MR. DULON KANTI CHAKRABORTY 69. MRS. AKLIMA ISLAM
35. MR. SAFAYET HOSSAIN PATWARY 70. MR. JAHANGIR ALAM
46
MANAGMENT TEAM
SL. SL.
NAME NAME
NO NO
71. MR. MD. YAKUB MAZUMDER 104. MR. SK. SHAHIDUL ISLAM
72. MR. MOHAMMAD FAZLUL KABIR 105. MR. MD. SHAWKAT ZAMAN
73. MR. MD. ABDUL BAREK CHOWDHURY 106. MR. MD. FAKRUL ISLAM
74. MR. ABU TAHER MD. ZAKIR HOSSAIN 107. MR. MD. JAHANGIR HOSSAIN
75. MR. MD. ZAHID IQBAL 108. MR. MD. MAHMUDUL HAQUE
76. MR. MD. SARWAR ABEDIN 109. MR. MD. ZAKIR HOSSAIN MAZUMDER
77. MR. MD. ABDUR RAZZAQUE 110. MR. MD. MOKBUL HOSSAIN
78. MR. MD. SHAHADAT HOSSAIN 111. MR. JASHIM UDDIN KHAN
79. MR. MOHAMMAD FOORKAN 112. MR. KHONDOKAR ABDUS SALAM
80. MR. MD. ABU SIDDIQUE 113. MR. MD. ASHADUZZAMAN
81. MR. MD. ATIQUR RAHMAN 114. MR. MD. KHAIRUL ALAM
82. MR. MD. REZWANUL ISLAM 115. MR. MD. MASUDUR RAHMAN
83. MR. MUHAMMAD MONIRUZZAMAN 116. MR. MD. SERAJUL ISLAM CHOWDHURY
84. MR. MD. MAHTAB HOSSAIN 117. MR. ALAMGIR KABIR CHOWDHURY
85. MR. MD. YASIN 118. MR. MD. MANIRUL HASAN
86. MR. MD. SHAH ALAM 119. MR. MD. SHAFIZ UDDIN
87. MR. EMRAN ULLAH 120. MR. DEVASREE MITRA
88. MR. F.M.MONIRUZZAMAN 121. MR. LUTHFUR RAHMAN
89. MR. GOUR NITAI BHADRA 122. MRS. RAZIA BEGUM
90. MRS. PRONOTI RANI DAS 123. MR. NURUL HAQUE
91. MR. SYED MD. TAWHIDUL HOQUE 124. MR. MD. GOLAM HASAN
92. MR. MD. ASHRAFUL ALAM 125. MR. BASHIR AHMED
93. MR. MD. NURULLAH KHAN 126. MR. MOHAMMED HOSSAIN
94. MR. MD. NAZRUL ISLAM 127. MR. MD. ALTAF HOSSAIN
95. MR. NIZAM UDDIN BHUIYAN 128. MR. BABUL HOWLADER
96. MR. SAMIR KUMAR BISWAS 129. MR. MD. AMINUR RAHMAN KHAN
97. MR. MD. OBAYDUR RAHMAN KHANDKER 130. MR. MOHAMMAD BIN KASHIM
98. MR. BASUDEB DAS 131. MR. MD. MAHFUZUR RAHMAN
99. MR. MD. NURUL ISLAM 132. MR.MD. KHAIRUL ANAM BHUIYAN
100. MR. MD. RAFIQUL ISLAM 133. MR. MD. OHIDUZZAMAN
101. MR. DIBYENDU DAS 134. MR. GOLAM MOZADDEDUR RAHMAN
102. MR. AREEF MD. TAHER 135. MR. MD. DELOWER HOSSAIN (CHIEF ENGINEER)
103. MR. MD. SHAHBIR 136. DR. MASUDA SALMA (CHIEF MEDICAL OFFICER)
Annual Report 2020

YEAR OF EXCELLENCE
MESSAGE FROM
THE CHAIRMAN

Chairman
48
MASSAGE FROM THE CHAIRMEN
wemwgjøvwniivn&gvwbiivwng Bismillahir Rahmanir Rahim
m¤§vwbZ †kqvi‡nvìvie„›` Distinguished Shareholders
Avm&mvjvgy AvjvBKzg| Assalamu Alaikum.

†mvbvjx e¨vsK wjwg‡UW Gi 14Zg evwl©K mvaviY mfvq Avcbv‡ì ¯^vMZ It is indeed a great pleasure and privilege for me to welcome
Rvbv‡bvi my‡hvM †c‡q cwiPvjbv cl©‡ì †Pqvig¨vb wn‡m‡e Avwg AZ¨šÍ Avbw›`Z you all to the 14th Annual General Meeting of Sonali Bank
Limited. On behalf of the Board of Directors including
†evaKiwQ| †mvbvjx e¨vsK wjwg‡UW-Gi cwiPvjbv cl©` Ges Avgvi wb‡Ri myself, I would like to express my cordial greetings and
c¶ †_‡K Avcbv‡ì mKj‡K RvbvB mvì m¤¢vlb I ï‡f”Qv| Avcbv‡ì extend warm felicitations to you all. It is your continued
Ae¨vnZ mg_©b I mn‡hvwMZvi Kvi‡b e¨vsK mKj P¨v‡jÄ †gvKv‡ejv K‡i support and active co-operation that enabled us to attain
mdjZvi aviv eRvq ivL‡Z mÿg n‡q‡Q| †mvbvjxe¨vsK wjwg‡UW Gi 2020 sustained success by overcoming all challenges. I feel proud
to present before you the Annual Report of the Bank for the
mv‡ji Avw_©K weeiYx mn evwl©K cÖwZ‡e`b Avcbv‡ì ch©v‡jvPbv, gZvgZ I year 2020along with the Audited Financial Statements for
Aby‡gv`‡bi Rb¨ Dc¯’vcb Ki‡Z †c‡i Avwg ‡MŠie Abyfe KiwQ| your review, comments and approval.
GB ïfÿ‡Y Mfxi kÖ×vi mv‡_ ¯§iY KiwQ RvwZi RbK e½eÜz †kL gywReyi At this gracious moment, I remember with great respect the
ingvb, ¯^vaxbZv hy‡× wbnZ 30 j‡ÿi AwaK exi knx`, exiv½bv, exi †mbvbx- Father of the Nation Bangabandhu Sheikh Mujibur Rahman,
more than three million martyrs, heroine, freedom fighters
hv‡ì i³, Z¨vM I mvnwmKZvi wewbg‡q wek¦ ìev‡i ¯^vaxb evsjv‡`‡ki
whose blood, supreme sacrifice and valour helped us to
Af~¨`q N‡U‡Q| achieve the glorious independence of Bangladesh.
2020 mv‡j êwk^K gnvgvwi K‡ivbvfvBivm (†KvwfW-19) wek^ A_©bxwZ‡Z eo The coronavirus (COVID-19), emerged as a global pandemic
ai‡bi SuywK m„wó K‡i‡Q| G gnvgvix evsjv‡`‡ki `ªæZ ea©bkxj A_©bxwZ‡ZI in 2020, poses a major risk to the global economy. This
weiƒc cÖfve †d‡j‡Q| e¨vswKs mn cÖwZwU †m±‡i Gi ÿwZKi cÖfve Abyf~Z pandemic slowed down the robust economic growth of
n‡”Q| Z‡e K‡ivbvfvBivm (†KvwfW-19) cÖv`yf©v‡ei Kvi‡Y m¤¢ve¨ êwk^K I Bangladesh in the last fiscal year. All sectors including banking
sector are facing the adverse effect of the pandemic. But
†`kxq A_©‰bwZK msKU †_‡K DËi‡Yi j‡ÿ¨ miKv‡ii M„nxZ wewfbœ Kvh©µ‡gi through the actions taken by the government, the economy
d‡j †`‡ki gvby‡li Av_©-mvgvwRK MwZkxjZv e„w×mn A_©bxwZ Ny‡i ùvov‡e is expected to overcome probable global and domestic
g‡g© Avkv Kiv hv‡”Q| crises arising due the coronavirus (COVID-19) pandemic.
K‡ivbvfvBivm (†KvwfW-19) Gi g‡aÏ mviv †`ke¨vcxQwo‡q _vKv mywekvj In the midst of coronavirus (COVID-19) pandemic, Sonali
Bank Limited, the largest state-owned commercial bank
†bUIqv‡K©i AwaKvix †`‡ki me©e„nr ivóª gvwjKvbvaxb evwYwR¨K e¨vsK, with a large branch network throughout the country, is
†mvbvjx e¨vsK wjwg‡UW Gi cÖavb j¶¨ MÖvnK I †kqvi †nvìvi‡ì m‡e©v”P providing banking services to the people from all walks of
life by ensuring best satisfaction of its customers as well
mš‘wói wbðqZv weav‡bi cvkvcvwk mgv‡Ri me©¯Í‡ii gvby‡liKv‡Q e¨vswKs †mev
as shareholders. We also remain committed to serve the
†cŠu‡Q †`qv| GKBmv‡_ RvwZ‡K †mev cÖ`v‡bi A½xKvi c~i‡Y miKvi KZ©„K nation by participating into government entrusted activities
b¨¯Í wewfbœai‡Yi mvgvwRK myi¶vg~jK Kg©Kv‡Û e¨vsK AskMÖnY K‡i Avm‡Q| for the better protection of the society. Sonali Bank granted
a special loan to Bangladesh Biman, the national flag
miKvwi wm×všÍ ev¯Íevq‡b †mvbvjx e¨vsK wjwg‡UW RvZxq cZvKvevnx evsjv‡`k carrier and Payra port following the government decision.
wegvb Ges cvqiv e›ì Gi AbyK~‡j we‡kl FY gÄyi K‡i‡Q| GQvov e„nËi Moreover, the Bank provides 37 services for free of charge
Rb¯^v‡_© miKv‡ii AwfcÖvq Abyhvqx MÖvnK‡ì‡K 37wU mvwf©m webvg~‡j¨, 14wU and 14 services at nominal charge for the greater interest
of the people in line with government aspiration. These
mvwf©m bvggvÎ g~‡j¨ w`‡q _v‡K| e¨vs‡K †ekwKQy †cÖvMÖvg nv‡Z †bqv n‡q‡Q programs have been undertaken to serve societal benefits
†h¸‡jv evwYwR¨Kfv‡e AbyK~j bv n‡jI mvgvwRKfv‡e jvfRbK| rather than commercial considerations.
Sonali Bank Limited keeps itself abreast with the real time
†mvbvjx e¨vsK wjwg‡UW me mgq e¨vswKs Kvh©µg cwiPvjbvq bZzb cÖhyw³
information, updating ideas and approaches in the areas
MÖn‡Yi j‡¶¨ AvaywbK a¨vb aviYv I me©‡kl Z‡_ï mv‡_ Zvj wgwj‡q Pj‡Z of innovation and adopting new technology. In the face of
m‡Pó| µgea©gvb cÖwZ‡hvwMZvgyjK evRv‡i Z_¨ cÖhyw³i eënvi I we¯Í…wZ Ges increasing competition, IT efficiency promotes operational
IT cø¨vUdg©‡K kw³kvjxKiY e¨vs‡Ki Kg©m¤úv`b cÖwµqv‡K mnRZi Ki‡e ease and sets a standard for quality, internal productivity
Ges mgv‡Ri wewfbœ †kªwYi MÖvnK‡ì Pvwn`v I cÖZ¨vkv c~iY Ki‡e|DwjøwLZ and improved enhanced customer service. Till date, the
Bank has also implemented Core Banking Solution (CBS)
welq¸‡jv we‡ePbv K‡i Ges wbiwew”Qbœ, wbf©i‡hvM¨, `ªæZ I ¯^íe¨‡q RbM‡Yi in all its 1224 domesticbranches to provide uninterrupted,
†`vi‡Mvovq e¨vswKs Kvh©µg †cŠu‡Q †`qvi j‡¶¨ e¨vsK B‡Zvg‡a¨ Zvi 1224wU reliable, faster and better one stop service at the doorsteps
kvLvi meKwU‡K Core Banking Solution (CBS) G DbœxZ K‡i‡Q| of customer at an affordable cost.
†KvwfW 19 cÖv`yf©v‡ei g‡a¨ †mvbvjx e¨vs‡Ki D‡jøL‡hvM¨ AR©b ÔÔ†mvbvjx During the COVID 19 outbreak in 2020, obviously the
introduction of ’’Sonali eSheba’’ and ’’Sonali eWallet’’ is a
B-†mevÕÕ I ÔÔ†mvbvjx B-Iqv‡jUÕÕ Pvjy Kiv| ÔÔ†mvbvjx B-†mevÕÕ Gi gva¨‡g shining achievement of Sonali Bank Limited. Clients can
MÖvnKiv Lye mn‡RB N‡i e‡mB GKvD›U Lyj‡Z cv‡i| GiB avivevwnKZvq open accounts even from their home through ’’Sonali
cieZ©x‡Z ÔÔ†mvbvjx B-Iqv‡jUÕÕ Pvjy Kiv nq hvi gva¨‡g MÖvnKiv †h‡Kvb mgq eSheba’’. Subsequently, the bank introduced ’’Sonali
†h‡Kvb wnmv‡e †jb‡`bmn wewfbœ wej, cixÿvi wd, U¨v·mn mKj †jb‡`b eWallet’’. This wallet helps the clients to make transactions
m¤úbœ Ki‡Z cv‡i| to any accounts, pay the bills and taxes etc.
MÖvgxY Rbc‡` Drcv`bgyLx Kg©KvÛ Ges Kg©ms¯’vb m„wó Avgv‡ì cÖavb j¶¨| Our main thrust, therefore, is rural development through
G j‡ÿ¨ K…wl/cjøx FY Lv‡Z e¨vsK KZ©„K ch©vß FY weZiY Kiv n‡q‡Q employment generation and productive activities in rural
Bangladesh. From this consideration, Sonali Bank Limited
Annual Report 2020

YEAR OF EXCELLENCE
Ges G Lv‡Z eZ©gv‡b w¯’wZi cwigvY 4,660.69 †KvwU UvKv| GRb¨ e¨vsK has redesigned the operational strategy by prioritizing credit
allocation to micro, small and medium size productive
thrust †m±i e‡j we‡ewPZ gvB‡µv †µwWU, ¯§j GÛ wgwWqvg G›UvicÖvBR
enterprises which have been considered as the thrust and
Ges me©vwaK g~j¨ ms‡hvRbkxj Drcv`bkxj Lv‡Z FY e›Ub c×wZ cyYwe©b¨vm most valued sector in the economy. In Agricultural/Rural
credit, sufficient amount has been disbursed and total
K‡i A_©vqb Ki‡Q| D‡jøwLZ LvZmg~‡n e¨vs‡Ki FYw¯’wZi cwigvY h_vµ‡g outstanding stood at Tk. 46,606.90 million. Till 2020, total
1,219.75 †KvwU Ges 7,131.09 †KvwU UvKv| GB me AMÖvwaKvicÖvß LvZmg~n outstanding in Micro Credit and SME sectors stood at Tk.
12,197.50 and 71,310.90 million respectively. These priority
RvZxq Av‡q Ae`vb ivLvi cvkvcvwk `vwi`ªmxgvi bx‡Pi RbM‡Yi Rxebgvb sectors are playing special role in contributing to our
Dbœq‡bI we‡kl f~wgKv ivL‡Q| national income as well as upgrading the quality of life of
our people living under poverty level.
G eQ‡i †mvbvjx e¨vsK wjwg‡UW 2,152.69 †KvwU UvKv cwiPvjb gybvdv During the year, Sonali Bank Limited earned operating profit
amounting to Tk. 21,526.93 million, highest in the banking
(hv †`‡ki e¨vswKs †m±‡ii g‡a¨ m‡e©v”P) Ges MZ eQ‡ii 271.00 †KvwU sector of Bangladesh and also achieved a positive net
UvKv AwZµg K‡i 323.43 †KvwU UvKv bxU gybvdv AR©b K‡i‡Q| 2020 profit amounting to Tk. 3,234.35million than the previous
year. Operational efficiency, optimum utilization of fund,
mv‡j AvgvbZ msMÖn, FY/AwMÖg, †kÖwYK…Z FY Av`vq, cwiPvjb e¨q wbqš¿Y and high productivity regarding deposit collection, loans
BZ¨vw`‡Z cwiPvjb `¶Zv e„w×, Znwe‡ji m‡e©vËg eënvi I Drcv`bkxjZvi and advances, recovery from classified loan, controlling of
operating expense contributed to this surge of profit during
D”Pgvb GB gybvdv AR©b‡K m¤¢e K‡i‡Q| ZvQvov ‡gvU Av‡qi g‡a¨ wewfbœ 2019. Moreover, share on income from various service
service oriented AvqI h‡_ó cwigv‡Y e„w× †c‡q‡Q hv Avgv‡ì eëmvwqK oriented activities under total income is rising undoubtedly
which is an omen to our business growth.
cÖe„w×i Rb¨ Avkxe©v`¯îƒc|
Avw_©K AšÍfz©w³ eZ©gvb miKv‡ii Ab¨Zg Dbœqbg~jK G‡RÛv; `vwi`ª¨ Financial inclusion is high on the development agenda of
the government. Sonali Bank Limited has been working
`~ixKi‡Y Ges †`‡ki mvaviY RbM‡Yi RxebhvÎvi gvb Dbœq‡b miKv‡ii relentlessly to expand financial activities in line with this
M„nxZ c`‡¶cmg~n h_vh_fv‡e ev¯Íevq‡b †mvbvjx e¨vsK wjwg‡UW eive‡ii agenda to support the government’s initiatives designed
g‡ZvB mn‡hvwMZv K‡i hv‡”Q| MÖvg Dbœqb `vwi`ª¨ `~ixKi‡Y we‡kl fywgKv to alleviate poverty and improve the living standard of the
common people. Rural development plays a vital role in
cvjb Ki‡Z cv‡i| G ev¯ÍeZv‡K mvg‡b †i‡L †mvbvjx e¨vsK MÖv‡gi `wi`ª
eradicating poverty. The Bank has already opened 10/50/100
gvby‡li Rb¨ 10/50/100 UvKvi wnmve Pvjy K‡i‡Q Ges Avw_©K AšÍfy©w³i Taka accounts for the poor people and total number of such
AvIZvq K…lK wnmve, mvgvwRK wbivcËv †eóbx, gyw³‡hv×v, ¶z`ª Rxeb exgv, accounts reached approximately 51.42 lac namely farmer’s
†cvlvK wkí kªwgK Ges Ab¨vb¨ †kÖbx/‡ckv wfwËK wnmv‡e cÖvq 51.42 j¶ account, Social Safety Net Program, Freedom fighters,
Small Life Insurance program, RMG Sector and other A/Cs
wnmve †Lvjv n‡q‡Q| under financial inclusion program.
†h‡Kvb cÖwZôv‡bi eëmv cwiPvjb, `xN© ¯’vwqZ¡ Ges †UKmB cÖe„w×i Rb¨ Good Good Corporate Governance system is vital for efficient
and effective business operation, long term stability and
Corporate Governance Acwinvh©| †mvbvjx e¨vs‡Ki Governance
sustainable growth for any organization. The Governance
system G eë¯’vcbvi ¯^”QZv I Revew`wnZv wbwðZ Kivi cvkvcvwk cwiPvjbv system of Sonali Bank Limited is characterized by its design
cl©` I eë¯’vcbvi `vwqZ¡ I KZ©e¨ myPviæiƒ‡c e›Ub Kiv n‡q‡Q| G j‡ÿ¨ to ensure transparency and accountability at all level of
management. Three committees- Executive Committee,
wZbwU KwgwU- wbe©vnx KwgwU, AwWU KwgwU Ges Su~wK eë¯’vcbv KwgwU Kvh©Ki Audit Committee and Risk Management Committee
I `ÿZvi mv‡_ `vwqZ¡ cvj‡b cwiPvjbv cl©`‡K mn‡hvwMZv K‡i Avm‡Q| of the Board have been working to assist the Board in
discharging its responsibilities efficiently and effectively. In
gš¿Yvjq Gi mv‡_ ¯^vÿwiZ “Annual Performance Agreement” Gi accordance with “Annual Performance Agreement” signed
avivevwnKZvq m¤cÖwZ e¨vsK Zvi wbe©vnx‡ì Kvh©µ‡gi Revew`wnZv Avbq‡bi with the Ministry, the Bank has recently undertaken a similar
j‡¶¨ Abyiƒc Pzw³cÎ cÖYqb K‡i‡Q| bZzb G Z_¨ cwigvc‡Ki gva¨‡g agreement through which accountability of the executives
may be measured. Performance of the executives is judged
wbe©vnx‡ì Kvh©µg gyj¨vqb Kiv n‡”Q| by these newly designed information scale.
m¤úªwZ †mvbvjx e¨vsK wjwg‡UW evsjv‡`‡ki e¨vswKs †m±‡i me©cÖ_g ÒûB‡mj Recently Sonali Bank Limited has introduced “Whistle
Blower Policy” for the first time in the banking history of
†eøvqvi cwjwmÓ cÖeZ©b K‡i| e¨vs‡Ki mKj Kg©KvÛ `yb©xwZgy³ ivLv Ges
Bangladesh. Certainly it is very important and bold decision
ï×vPvi cÖwZôvq G cwjwm AZ¨šÍ ¸iæZ¡c~Y©, mg‡qvc‡hvMx Ges mvnmx GKwU in implementing the National Integrity and the banking
c`‡ÿc| Avgiv Rvwb, †h †Kvb ai‡Yi Awbqg cÖwZ‡iv‡a m‡e©v”P mZK©Zv, activities corruptionless. We are aware that strong vigilance
`vwqZ¡kxjZv I Revew`wnZvg~jK eë¯’vcbv Ges m‡e©v”P gvÎvi DrKl©Zv is a must to guard against leakage and to achieve highest
excellence through responsibility and accountability. In
AR©‡bi j‡¶¨ Af¨šÍixY wbqš¿Y I cwicvjb eë¯’v kw³kvjx Kivi †Kvb order to ensure responsible and accountable management
weKí †bB| `vwqZ¡kxjZv, h_vh_ Revew`wnZv I m‡e©v”P mš‘wó wbwðZ Kivi system and highest degree of excellence, steps have been
j‡¶¨ Internal Control and Compliance Mechanism †K cybM©Vb taken to restructure and modernize the Internal Control
and Compliance Mechanism to safeguard the safety and
I AvaywbKvq‡bi c`‡¶c †bqv n‡q‡Q hv e¨vsK, Zvi Kgx©, AvgvbZKvix I
soundness of the bank, its employees, depositors and
†kqvi‡nvìvi‡ì ¯^”QZv I wbivcËv wbwðZ Ki‡e| shareholders.
†UKmB Dbœq‡bi Rb¨ `¶ I †hvM¨ gvbem¤ú` AZ¨šÍ ¸iæZ¡c~Y©| KviY e¨vs‡Ki Qualified and competent human resource is crucial for
sustainable growth. Success of the Bank may be achieved
mdjZv Zvi Kg©xevwnbxi `¶Zv, Ávb I Drcv`bkxjZvi Dci wbf©i K‡i| by improving skills, knowledge and productivity of the
50
MASSAGE FROM THE CHAIRMEN
gvbem¤ú` Dbœq‡b Z_v Kgx©‡ì m¶gZv e„w×‡Z e¨vs‡Ki wewb‡qvM D‡jøL‡hvM¨ employees. Keeping this in view, the Bank invests remarkably
in human resources development for capacity building. The
cwigv‡Y e„w× Kiv n‡q‡Q| g‡bvej, m„RbkxjZv I `jMZ cÖ‡Póvi gva¨‡g goal is to empower staff and create a culture that encourages
and rewards commitment, creativity and team work in order
wbqZ cwieZ©bkxj MÖvn‡Ki cÖZ¨vkv c~i‡Y e¨vsK Kg©KZ©v I Kg©Pvix‡ì
to respond rapidly to the ever changing customer needs
m¶gZv evov‡bvB Gi cÖavb j¶¨| ZvQvov †mvbvjx e¨vsK Zvi Kgx© evwnbxi and market. SBL is offering its employees’ safe, healthy and
congenial working environment. Moreover, it endeavors
cvi¯úwiK †hvMv‡hv‡Mi Rb¨ wbivc` I my¯’ Kg©cwi‡ek wbwðZ K‡i‡Q| its best to ensure that the employees engagement is
maximized.
eëmvq `xN©‡gqv`x I †UKmB cÖe„w× AR©‡bi Rb¨ mgv‡Ri cÖwZ e„nËi Sonali Bank Limited always recognizes its wider obligation
to the society and therefore embraces the concept of
`vqe×Zvwe‡ePbvq e¨vsK wbR¯^ CSR Kg©m~wP MÖnY K‡i Avm‡Q| †h‡nZz
Corporate Social Responsibility (CSR) which is believed to
†UKmB I AšÍf~©w³g~jK cÖe„w×i Rb¨ ivóª, evRvi I mgv‡Ri g‡a¨ fvimvg¨ be fundamental to attaining the long term sustainability and
ivLv cÖ‡qvRb †m‡nZz e¨vs‡Ki vision and mission Gi mv‡_ m½wZ †i‡L business growth. Since a perfect balance among the state,
market and society is required for suitable and inclusive
cÖwZôvbwU ‡`‡ki A_©bxwZ, cwi‡ek I mvgvwRK ev¯ÍeZvi wbwi‡L Zvi eëmv growth, it operates banking activities in economically,
cwiPvjbv K‡i Avm‡Q| environmentally and socially sustainable manner in line with
its vision and mission.
Rjevqy cwieZ©b †_‡K D™¢~Z ûgwKi d‡j AskxR‡bi ¯^v_© myi¶vq e¨vsK The Bank is responding strategically to create sustainable
m‡PZbfv‡e evsjv‡`k e¨vs‡Ki wb‡`©kbvi Av‡jv‡K MÖxb e¨vswKs Kvh©µg value for the stakeholders since grave menace posed by
cwiPvjbv Ki‡Q| MÖxb e¨vswKs Kg©KvÛ myôyfv‡e cwiPvjbvi wbwgË †ek wKQy climate change. Various steps have been taken to ensure
green banking. These include green financing, creating
c`‡¶c MÖnY Kiv n‡q‡Q| hvi g‡a¨ i‡q‡Q meyR A_©vqb, Kgx©evwnbxi g‡a¨ awareness among employees for efficient use of water,
cvwb, we`y¨r I KvMR eënv‡ii wel‡q m‡PZbZv ˆZix Ges B‡Kv-wm‡÷g electricity and paper, giving preference to preservation of
msi¶‡Y mn‡hvMx evwbwR¨K LvZmg~n‡K A_©vq‡bi †¶‡Î AMÖvwaKvi †`qv| eco-system while financing commercial projects and re-use
m¤cÖwZ MÖxb e¨vswKs Gi m¤¢ve¨Zv I Gi Dc‡hvwMZv cÖvwßi Rb¨ evsjv‡`k of equipments. In order to harness the potentiality of the
green banking, a separate unit named “Sustainable Finance
e¨vs‡Ki cwjwm †gvZv‡eK e¨vs‡Ki wi¯‹ g¨v‡bR‡g›U wWwfk‡bi Aax‡b
Unit” under the Risk Management Division has been formed
“Sustainable Finance Unit” MVb Kiv n‡q‡Q| in line with the policy directives of Bangladesh Bank.
Avwg Avkv Kwi, fwel¨‡Z †`ke¨vcx we¯Í…Z †bUIqvK©, `ÿ Kg©xevwnbx I Looking towards the future & playing on our own strength,
Avgv‡ì eëmvwqK mybv‡gi gva¨‡g Avgiv Avgv‡ì mdjZvi †¶Î¸‡jv we have all the key success factors, necessary to scale
up, aiming at attaining brand of quality among our wider
Av‡iv cÖmvwiZ Ki‡Z mÿg n‡ev| e¨vswKs †m±‡i Avgv‡ì eëmvwqK mybvg, network to negotiate the course of change. We can do
†`ke¨vcx kvLv Ges D™¢vebx ‡cÖvWv±mgy‡ni Dcw¯’wZi Kvi‡Y Avgv‡ì c‡¶ it well by our well recognized market presence with a
mdj nIqv Am¤¢e wKQy bq| strong product portfolio, well established brand image and
countrywide network.
e¨vsK cwiPvjbvi †¶‡Î Avgvi mnKgx© cwiPvjK‡ì mvwe©K mn‡hvwMZv I Let me take the opportunity to thank my fellow Directors,
who have given me their generous co-operation and
mg_©b `v‡bi Rb¨ Avwg Zuv‡ì‡K AvšÍwiKfv‡e abëv` RvbvB| GQvovI support with great personal commitments. My words of
e¨vs‡Ki wmBI GÛ g¨v‡bwRs wW‡i±i I wb‡ew`ZcÖvY Kg©xevwnbxi A½xKvi, thanks go to the CEO and Managing Director, all of our
officials, staff members for their commitment, loyalty and
AvbyMZ¨ I AvšÍwiK Ae¨vnZ mn‡hvwMZvi Rb¨ RvbvB Awfev`b| sincerity along with continued support and co-operation.
Avwg evsjv‡`k miKv‡ii we‡klZt A_© gš¿Yvj‡qi Avw_©K cÖwZôvb wefvM, I would like to express my sincere gratitude to the
evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ Kwgkb,Awdm Ae Government of Bangladesh specially the Financial
Institutions Division of Ministry of Finance, Bangladesh Bank,
`¨v ‡iwR÷ªvi Ae R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m Ges ÷K G·‡PÄ Gi
Bangladesh Securities and Exchange Commission, Office
cÖwZ Zv‡ì Ae¨vnZ mg_©b I civgk©`v‡bi Rb¨ AvšÍwiK K…ZÁZv Ávcb of the Registrar of Joint Stock Companies and Firms, the
KiwQ| DrK‡l©i wkL‡i †cŠuQvi j‡¶¨ Avgv‡ì cÖ‡Póvi cÖwZ hviv mn‡hvwMZv Stock Exchange for their continued support and guidance.
Ae¨vnZ †i‡L‡Qb, cwiPvjbv cl©‡ì c¶ †_‡K †m mKj MÖvnK I c„ô‡cvlK I would also like to express my thanks to all of our valued
Ges ïfvbya¨vqx‡ì cÖwZ Avwg AvšÍwiK K…ZÁZv Rvbvw”Q| ZvivB Avgv‡ì clients, patrons, well-wishers and shareholders on behalf of
Aby‡cÖiYv I kw³i Drm| the Board. They are our source of inspiration and strength.
cwi‡k‡l ej‡Z PvB, fwel¨‡ZI Avgiv Avgv‡ì m‡e©v”P cÖqvm wb‡e`‡bi While concluding, we reaffirm our good intention to remain
“Your Trusted Partner in Innovative Banking” at all time to
gva¨‡g “Your Trusted Partner in Innovative Banking” wn‡m‡e come and remain committed to be with you all in innovative
Avcbv‡ì cv‡k _vK‡Z PvB| ways to add values to our work.
gnvb Avjøvn&Avgv‡ì mnvq †nvb Ges Zuvi ingZ Avgv‡ì mK‡ji Dci ewl©Z May almighty Allah help us all and shower eternal blessings
†nvK| upon all of us.
(wRqvDj nvmvb wmwÏKx) (Ziaul Hasan Siddiqui)

†Pqvig¨vb Chairman
cwiPvjbv cl©` Board of Directors
†mvbvjx e¨vsK wjwg‡UW Sonali Bank Limited
Annual Report 2020

YEAR OF EXCELLENCE
FROM THE DESK

OF CEO AND
MANAGING
DIRECTOR

52
CEO AND MANAGING DIRECTOR'S MASSAGE
wemwgjøvwni ivn&gvwbi ivwng Bismillahir Rahmanir Rahim
m¤§vwbZ †kqvi‡nvìvie„›` Distinguished Shareholders
Avm&mvjvgy AvjvBKzg| Assalamu Alaikum.
Avwg AwZkq Avbw›`Z I †MŠievwš^Z †eva KiwQ †h, †`‡ki me©e„nr evwYwR¨K It is a great privilege and honor for me to have the opportunity
to present and record my observation on the performance
e¨vsK †mvbvjx e¨vsK wjwg‡UW Gi 2020 mv‡ji eëmvwqK AR©‡bi Dci of Sonali Bank Limited, the largest commercial bank of
Avgvi ch©‡e¶Y Avcbv‡ì Kv‡Q Zz‡j aivi my‡hvM †c‡qwQ| GRb¨ Avwg Bangladesh, for the year 2020. I would like to express my
heartfelt thanks and gratitude to our valued customers,
Avgv‡ì MÖvnK, mn‡hvMx I ïfvbya¨vqx‡ì Zuv‡ì Ae¨vnZ mg_©b, mn‡hvwMZv
partners and well wishers for their active and continuing
Ges Avgv‡ì cv‡k _vKvi Rb¨ AvšÍwiK abëv` Rvbv‡Z PvB| support, co-operation and strong association with us.
2020 mv‡j e¨vs‡Ki AR©b Zz‡j aivi Av‡M Avwg eZ©gvb ‰ewk^K I evsjv‡`k Before reflecting on the Bank’s performance in 2020,
it would be relevant to present a snapshot of global and
A_©bxwZi w`‡K Av‡jvKcvZ Ki‡Z PvB| Bangladesh economy.
2020 Gi ïiæ‡Z Avwef©Z
~ êwk¦K gnvgvwi †KvwfW 19 wek¦ A_©bxwZ‡Z eo The coronavirus (COVID-19), which has emerged as a global
pandemic, poses a major risk to the global economy. As a
ai‡Yi Szwu K m„wó K‡i‡Q| Gi cÖfv‡e wek¦ A_©bxwZ‡Z g›`v †`Lv w`‡q‡Q Ges GB result of the pandemic, the global economy is anticipated to
g›`v 2008-2009 mv‡ji Avw_©K g›`v‡KI Qvwo‡q †h‡Z cv‡i e‡j aviYv Kiv contract in a much worse way than during the 2008-2009
financial crises. In the World Economic Outlook (WEO)
n‡”Q| Z‡e ivóª I AvšÍRv© wZK ms¯’vmg~n KZ©K
„ Avw_©K cÖ‡Yv`bvmn wewfbœ bxwZ October 2020, International Monetary Fund (IMF) projected
mnvqZv cÖ`v‡bi d‡j wek¦ A_©bxwZi cÖew„ × 2020 mv‡ji 4.4% n‡Z 2021 mv‡j that the global economic growth would contract sharply
by 4.4 percent in 2020 downgrading from -3.0 percent
5.2 kZvs‡k DbœxZ n‡Z cv‡i| †KvwfW 19 Gi `ªæZ e¨vcK we¯Ívi I Gi d‡j projection made in April 2020, WEO. The global economy
is projected to grow by 5.2 percent in 2021 as the economic
A_©‰bwZK Kg©KvÛ ¯’wei nIqvq DbœZ †`kmg~‡ni A_©‰bwZK cÖew„ × 2020 mv‡j
activity normalizes, helped by policy support. In advanced
6.1 kZvs‡k †b‡g G‡m‡Q| GQvov mvgwMÖKfv‡e weKvkgvb evRvi I Dbœqbkxj economies, growth is expected to slow to - 6.1 percent
in 2020 due to slowdown in economic activity as a result
A_©bxwZi †`kmg~‡ni cÖew„ × 2020 mv‡j 3.3 kZvs‡k †b‡g Avm‡e e‡j cÖ‡ÿcb of rapid and widespread growth of COVID-19. Moreover,
Kiv n‡q‡Q| Overall, the group of emerging market and developing
economies, growth is forecasted at 3.3 percent in 2020.
evsjv‡`‡ki A_©bxwZ MZ GK `k‡KiI †ekx mgq a‡i w¯’wZkxj cÖew„ ×i nvi The Bangladesh economy has been able to maintain
a‡i ivL‡jI êwk¦K gnvgvwii Kvi‡Y evsjv‡`k cwimsL¨vb ey¨‡ivi me©‡kl wnmve sustained economic growth over the last decade though
according to the final estimate of BBS, the GDP growth
Abyhvqx 2019-2020 A_©eQ‡i wRwWwc cÖew„ × ùvwo‡q‡Q 5.24 kZvsk| 2018- stood at 5.24 percent in 2020 which was 8.15 percent in
2019 A_©eQ‡i wRwWwc cÖew„ × n‡qwQj 8.15 kZvsk| 2019-2020 A_©eQ‡i 2019. Per capita GDP and per capita national income stood
respectively at US$ 1,970 and US$ 2,064 in FY2019-20, up
gv_vwcQz wRwWwc I gv_vwcQz RvZxq Avq c~ee© Z©x eQi n‡Z 142 I 155 gvwK©b by US$ 142 and US$ 155 from the previous fiscal year. In
Wjvi e„w× †c‡q h_vµ‡g 1,970 I 2,064 gvwK©b Wjv‡i ùvwo‡q‡Q| G mg‡q FY2019-20, the inflation rate stood at 5.65 percent. Recently
Bangladesh has been successfully graduated to the status
g~j¨ùxwZi nvi ùvwo‡q‡Q 5.65 kZvsk| m¤úªwZ evsjv‡`k wb¤œ Av‡qi †`k n‡Z of a lower middle income country (LMIC) from low income
wb¤œ ga¨g Av‡qi †`‡k DbœxZ n‡q‡Q| cÖevmx evsjv‡`kx KZ©K
„ A_© †cÖi‡Yi †ÿ‡Î country (LIC). Remittance reserve stood at US$ 43.17 billion
due to introduction of 2 percent incentives on remittances
2% bM` cÖ‡Yv`bvi eë¯’v Pvjy Kivq ê‡`wkK gy`vª i wiRvf© 43.17 wewjqb gvwK©b sent by NRBS. Alongside financial incentives, various
Wjv‡i DcbxZ n‡q‡Q| Avw_©K cÖ‡Yv`bvi cvkvcvwk †KvwfW 19 mswkøó c‡Yï activities including policy support such as reduction of
import duty on COVID-19 related products, policy support
Avg`vbx ïé n«vm, e¨vswKs Lv‡Z Zvij¨ e„w×i j‡ÿ¨ bxwZ mnvqZvmn wewfbœ to increase liquidity in the banking sector has been provided.
Kvh©µg MÖnY Kivq A_©bxwZ Ny‡i ùvov‡e g‡g© Avkv Kiv hv‡”Q| As a result of these actions taken by the government, the
economy is expected to turn around.
Sonali Bank conducts its business to provide services to
†mvbvjx e¨vsK †`‡k Ges we‡`‡k Zvi eëmvwqK Kg©Kv‡Ûi gva¨‡g †`‡ki
the customers and society at large and thus maximizes
mKj ¯Í‡ii RbMY‡K †mev cÖ`vb K‡i P‡j‡Q Ges b¨vqm½Zfv‡e ¯^”QZv I values for its stakeholders in a fair, transparent and ethical
ˆbwZKZvi mv‡_ †÷K‡nvìvi‡ì Rb¨ me©vwaK Dc‡hvwMZv wbwðZ K‡i _v‡K| way. Profit maximization is not the sole objective of the
Bank. Along with profit earning we are committed to make
ïay gybvdv AR©bB e¨vs‡Ki GKgvÎ j¶¨ bq; gybvdv AR©‡bi mv‡_ †UKmB
positive contribution to the economy and the society as a
Dbœq‡bi gva¨‡g †`‡ki Av_©-mvgvwRK Dbœqb wbwðZ K‡i mgv‡R BwZevPK whole in a sustainable manner. That is why, besides earning
Ae`vb ivLvI †mvbvjx e¨vs‡Ki GKwU j¶¨| G Kvi‡YB †mvbvjx e¨vsK profit, Sonali Bank is proud to bear the responsibility of
implementing various welfare programs and initiatives of
memgqB gybvdv Avni‡Yi cvkvcvwk mvwe©K †mevi gvb e„w×mn miKvi KZ©„K
the government, thereby becoming the inseparable partner
Awc©Z Ges miKv‡ii AvbyK‚‡j¨ m~wPZ wewea Av_©-mvgvwRK Kg©Kv‡Û f‚wgKv of the noble work of the government intended to uplift the
Annual Report 2020

YEAR OF EXCELLENCE
ivL‡Z A½xKvive×| G me Kg©KvÛ †_‡K †h `„k¨gvb Avq nq Zv evwYwR¨K socio-economic condition of the poor. The visible return
`„wóf½x‡Z Drmvne¨ÄK bv n‡jI mvgvwRK jvf-¶wZi we‡ePbvq D”PZi Avq from these services may not be encouraging from business
standpoint, but the return is high from the social-cost
m„wóKvix e‡j we‡ePbv Kiv nq| benefit perspective.
†KvwfW 19 gnvgvwiRwbZ D™¢~Z cwiw¯’wZ‡Z e¨vsK Zvi Kg©KZ©v-Kg©Pvix‡ì Sonali Bank Limited gives utmost priority to keep employees
g‡bvej Aÿzbœ †i‡L eëmv cwiPvjbvi w`‡K we‡kl ¸iæZ¡ cÖ`vb K‡i| G j‡ÿ¨ psychological strength in achieveing its business goal in
COVID 19 pandemic. The Bank provided adequate PPEs,
e¨vsK Zvi Kg©KZ©v-Kg©Pvix‡ì g‡a¨ ch©vß wcwcB, gv¯‹, n¨vÛ m¨vwbUvBRvi
masks, hand sanitizer for its all employees and ordered
mieivn K‡i Ges h_vh_ kvwiixK `yiZ¡ eRvq †i‡L Kg©m¤úv`‡b kvLv¸‡jv‡K all controlling offices and branches to maintain physical
wb‡`©k cÖ`vb K‡i hv A`¨vewa ejer i‡q‡Q| MÖvnK‡ì `ªæZ I gvbm¤§Z †mev distance while performing their duties which is still going
cÖ`v‡bi j‡¶¨ †mvbvjx e¨vsK Gi mKj Kg©xi Rb¨ wbivc`, my¯’ I AvšÍwiK on. In order to provide better and faster services to the
customers, SBL is offering each employee safe, healthy and
Kg©cwi‡e‡ki eë¯’v K‡i‡Q| mKj kvLvq bvix Kg©KZ©v-Kg©Pvix I MÖvnK‡ì congenial working environment. In all branches, a separate
Rb¨ Avjv`v I cwi”Qbœ †mwb‡Ukvb Ges mKj Kvh©vjq I kvLvi Kg©KZ©v- and Clean sanitation system for its female employees and
Kg©Pvix‡ì Rb¨ Rxevbygy³ ¯^v¯’¨m¤§Z my‡cq cvwb mieiv‡ni eë¯’v Kiv n‡q‡Q| clients along with supply of pure hygienic drinking water
during office hours for all the employees has been arranged.
Z`ycwi e¨vs‡Ki me©vZ¥K cÖ‡Póv _v‡K GUv wbwðZ Kiv †hb Kg©xevwnbxi mv‡_ Moreover, it endeavors its best to ensure that the employees
eëmv‡qi m¤ú„³Zv me©vwaK nq| engagement with the business is maximized.
†mvbvjx e¨vsK wjwg‡UW GeQi eëmv‡q D‡jøL‡hvM¨ cÖmvi NUv‡Z m¶g n‡q‡Q| Sonali Bank Limited achieved substantial growth during the
year under review. The operating profit of the Bank stood
2020 mv‡j e¨vs‡Ki cwiPvjb gybvdv n‡q‡Q 2,152.69 †KvwU UvKv| K÷ Ae at Tk. 21,526.90 million in 2020. The cost of Fund stood at
dvÛ 5.23% Gi m‡šÍvlRbK ch©v‡q i‡q‡Q| cwiPvjb `¶Zv e„w×, Kvw•LZ a reasonable rate of 5.23% in 2020. Operational efficiency,
lower cost of fund resulting from improved deposit mix,
AvgvbZ wgkªY, cwiPvjb Avq Ges bb-dv‡ÛW Avq e„w×i Kvi‡Y GB gybvdv minimization of operating cost and increase in non-funded
AR©b m¤¢e n‡q‡Q| ZvQvov †gvU Av‡qi g‡a¨ wewfbœ service oriented income have contributed to the higher profit. Besides, a
substantial amount of income is generated from various
AvqI G cÖe„w×‡Z fywgKv †i‡L‡Q| services introduced.
†KvwfW 19 gnvgvwii Kvi‡Y 2020 mv‡j A_©bxwZi axiMwZi g‡aÏ AvgvbZ Amid sluggishness of the economy in 2020 due to COVID
19, the Bank’s deposit grew by more than 8.63% amidst
e„w×i nvi kZKiv 8.63 fvM| D‡jøwLZ mg‡q e¨vs‡Ki Avgvb‡Zi cwigvY fierce competition banking sector during 2020. Deposits
1.26 wUªwjqb UvKv| D‡jøL¨, 2016 mv‡j e¨vs‡Ki Avgvb‡Zi cwigvY 1.00 of the bank stood at Tk. 1.26 trillion. In 2016, Sonali Bank
made a history by reaching a milestone of accumulating
wUªwjqb UvKv AwZµg K‡i‡Q-GwU evsjv‡`‡ki e¨vswKs BwZnv‡m GKwU
deposits over one trillion taka, an accomplishment that
gvBjdjK| G hver e¨vsK Avgvb‡Zi H Ae¯’vb a‡i †i‡L‡Q Ges Avgvb‡Zi the banking sector never witnessed before. Since then, the
Bank has held the position of deposit tightly with gradual
cwigvb DË‡ivËi e„w× cv‡”Q| Avgv‡ì Dci m¤§vwbZ MÖvnK‡ì AwePj Av¯’vi
increase. The success of deposit mobilization was due to
d‡jB AvgvbZ msMÖ‡ni G mvdj¨| MÖvnK‡ì †`vi‡Mvovq mvkÖqx g~‡j¨ DbœZ our customers’ unflinching trust in us. We are introducing
latest technology, multiple delivery channels and enhancing
†mev `ªæZ †cuŠ‡Q †èvi j‡¶¨ me©vaywbK cÖhyw³ cÖeZ©b, eûwea †Wwjfvix P¨v‡bj
our capacity to take our services to the customers’ reach at
Pvjy I m¶gZv e„w×i cÖ‡Póv Ae¨vnZ i‡q‡Q| m¤§vwbZ MÖvnK‡ì µgea©gvb an affordable cost. We are emphasizing on the introduction
Pvwn`v c~i‡Yi j‡¶¨ Zv‡ì iæwP I cÖZ¨vkv Dc‡hvMx cvBKvix I LyPiv cÖWv± of tailor made and innovative wholesale and retail products
to satisfy the growing and divergent needs of the valued
D™¢ve‡bi KvR Ae¨vnZ i‡q‡Q| customers.
In loans and advances, the bank registered 6% positive
FY I AwMÖ‡gi cwigvY 2019 mv‡ji 55,102.63 †KvwU UvKv n‡Z 2020
growth in 2020, raising the total outstanding to Tk.
mv‡j 58,623.27 †KvwU UvKvq DbœxZ n‡q‡Q| G‡¶‡Î e¨vsK †Kvb wbw`©ó 586,232.72 million from Tk. 551,026.29 million of the last
year. The bank continued to grow and diversify its portfolios
MÖvnK Ges cÖwZôvb †Kw›`ªK bv nIqvi j‡¶¨ eûgyLx MÖvnK wfwËK Gwiqv M‡o in 2020 to have a diversified customer base. The whole
†Zvjvi w`‡K g‡bv‡hvM w`‡q‡Q| G j‡¶¨ Avw_©K I mvgvwRKfv‡e jvfRbK portfolios were planned to avoid loan concentrations and
other principles of sound lending were followed to keep
†¶Î¸‡jv‡K cÖvavb¨ †`qv n‡”Q| we‡klZt A_©bxwZ‡Z thrust sector the credit risk in the minimum. The plans for financing
e‡j we‡ewPZ Drcv`bkxj †mvbvjx e¨vsK gvB‡µv †µwWU, ¯§j GÛ wgwWqvg in thrust sectors like micro credit and small and medium
industries, that are considered to be the growth engine of
G›UvicÖvBR Lv‡Z A_©vq‡b cÖvavb¨ w`‡”Q| G‡Z F‡Yi SuywK Kwg‡q Avq e„w×i the economy, were executed. It produced more income
by reducing the portfolio risk. As a result, maximum social
gva¨‡g mvgvwRK Dbœq‡bi mv‡_ Avkvbyiƒc Avw_©K cÖvwßiI m¤¢vebv _v‡K|
benefit is reaped along through expected financial return.
2020 mv‡j †KvwfW 19 gnvgvwii g‡aÏ ‡kÖYxK…Z FY †_‡K Avgiv me©‡gvU Amid COVID 19 breakout in 2020, we recovered Tk.
1,050.15 †KvwU UvKv Av`vq Ki‡Z mÿg n‡qwQ| d‡j †kªYxK…Z F‡Yi 10,501.50 million from classified loan. Consequently the
nvi 2019 mv‡ji 20.32% †_‡K wKQzUv n«vm †c‡q 2020 mv‡j 18.37% rate of classified loan dropped down to 18.37% in 2020
which was 20.32% in 2019. We have to keep the rate of
n‡q‡Q| Avgv‡ì‡K GB nvi 10% G bvwg‡q Avb‡Z n‡e| wbtm‡›`‡n G
54
cwiw¯’wZ Avgv‡ì Rb¨ bZzb P¨v‡jÄ| Avgiv GI Rvwb cÖwZwU P¨v‡jÄ AwgZ Non Performing Loans (NPL) to a satisfactory level of
m¤¢vebvi my‡hvM wb‡q Av‡m| P¨v‡jÄ‡K m¤ú‡` iƒcvšÍwiZ Kivi j‡¶¨ h_vh_ 10%. This has posed a significant challenge to us indeed
and to overcome the problem appropriate strategies have
†KŠkj B‡Zvg‡a¨ MÖnY Kiv n‡q‡Q Ges cÖ‡qvRbxq w`K wb‡`©kbv Avgv‡ì `¶ already been worked out and necessary instructions and
Kg©xevwnbxi wbKU †cuŠ‡Q †`qv n‡q‡Q| cvidiwgs m¤ú` m„Rb I e„w×i j‡¶¨ guidance have been provided to all levels of managers.
All our branches have been instructed to extend all out
e¨vs‡Ki mKj kvLv‡K me©vZ¥K cÖ‡Póv †Rvi`vi Kivi wb‡`©k †`qv n‡q‡Q Ges efforts towards creating and enhancing performing assets.
djvdj gwbUwis Gi Rb¨ my`„p gwbUwis eë¯’v B‡Zvg‡a¨ cÖeZ©b Kiv n‡q‡Q| A robust monitoring mechanism has also been put in place
to monitor the results.
e¨vsK ¯^”Q wb‡qvM cÖwµqv AbymiY Ges †gav wfwËK wj½ mgZvi Dci †Rvi Sonali Bank follows transparent recruitment process and
stresses on gender equality based on merit. High quality,
w`‡q _v‡K| †UKmB Dbœq‡bi Rb¨ `¶ I †hvM¨ gvbem¤ú` AZ¨šÍ ¸iæZ¡c~Y©, intelligent and competent human resources are crucial for
KviY e¨vs‡Ki mdjZv Zvi Kg©xevwnbxi `¶Zv, Ávb I Drcv`bkxjZvi Dci continued growth and success of a bank. Success of the
bank could be achieved by improving skills, knowledge
wbf©i K‡i| G we‡ePbvq cÖwk¶Y Kg©m~wP I Kg©kvjvi Av‡qvRb Kiv nq hv‡Z and productivity of the employees. Keeping this in view we
Zviv RvZxq I AvšÍR©vwZK e¨vswKs †¶‡Î me©‡kl D™¢veb I weKv‡ki mv‡_ emphasize on the human resource development through
continuous training, seminars and symposiums to create a
cwiwPZ nevi cvkvcvwk Ávb I `¶Zvq mg„× n‡q DV‡Z cv‡i| Kg©xevwnbx talent pool especially in the managerial cadre. The Bank has
hv‡Z ch©vß AwfÁZvi gva¨‡g †kqvi‡nvìvi‡ì Dc‡hvwMZv MÖvnK‡ì mš‘wó been trying to ensure that employees involve themselves
in the running of business with adequate professional
AR©‡b fywgKv ivL‡Z cv‡i e¨vsK †m †Póv Pvwj‡q hv‡”Q| experience which in turn benefit shareholders and add
value to colleagues and help create customer satisfaction.
†h‡Kvb cÖwZôv‡bi eëmv cwiPvjb, `xN© ¯’vwqZ¡ Ges †UKmB cÖe„w×i Rb¨ Good corporate governance system is vital for efficient
and effective business operation, long term stability and
cÖvwZôvwbK mykvmb Acwinvh©| †mvbvjx e¨vs‡Ki Governance system G sustainable growth for any organization. The governance
system of Sonali Bank Limited is characterized by its design
eë¯’vcbvi ¯^”QZv I Revew`wnZv wbwðZ Kivi cvkvcvwk cwiPvjbv cl©` I
to ensure transparency and accountability at all levels of
eë¯’vcbvi `vwqZ¡ I KZ©e¨ myPviæiƒ‡c e›Ub Kiv n‡q‡Q| e¨vs‡Ki h_vh_ management. It also ensures that duties and responsibilities
are appropriately segregated between the Board and
functioning Gi Rb¨ GKwU myweb¨¯Í I Kvh©Ki cwiPvjb c×wZ (good Management so that sufficient check and balance are
provided to enable professionals to run the business
corporate governance) Acwinvh©| evsjv‡`k e¨vs‡Ki bxwZgvjvi effectively and also to protect interests of shareholders and
depositors alike. Effective corporate governance is critical
Av‡jv‡K myweb¨¯Í cwiPvjb cÖwµqv ev c×wZ wbg©v‡Yi Rb¨ Avgiv AvšÍwiKfv‡e
to the proper functioning of the bank. Bangladesh Bank, in
†Póv K‡i hvw”Q| e¨vs‡Ki AUzU ¯^v¯’¨ Ges MÖvnK I ‡kqvi‡nvìvi‡ì Av¯’v line with the Basel Committee, provided us a framework
within which we are operating to achieve robust and
e„w×i wbwgË Avgiv GKwU cÖej I m¦”Q SzuwK eë¯’vcbv I wm×všÍ MÖnY cÖwµqv transparent risk management and decision-making and, in
doing so, promote customer confidence and uphold the
cÖwZwôZ Ki‡Z mÿg n‡qwQ| mvgwMÖK K‡c©v‡iU mykvmb KvVv‡gvi GKwU Ask safety and soundness of our bank. Our policy stresses
the importance of risk governance as part of our overall
wnmv‡e SzuwK wbqš¿Y eë¯’v‡K Av‡iv DbœZ Kivi Rb¨ my‡hvM¨ cwiPvjbv cl©‡ì
corporate governance framework and promotes the values
wbe©vnx, SzuwK I AwWU KwgwU mvejxjfv‡e KvR Ki‡Q| 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 ‡mvbvjx e¨vsK me©`v SBL is aware of the adverse effect of climate change and
mRvM Ges G †cÖw¶‡Z MÖxb e¨vswKs Kvh©vejx eûgyLx K‡i‡Q hv Af¨šÍixY cwi‡ek various steps have been taken to ensure green banking.
eë¯’vcbv †_‡K ïiæ K‡i wMÖb A_©vqb ch©šÍ we¯Í…Z| cwi‡ek evÜe e¨vswKs Our green banking activities cover multiple areas which
include both in-house environment management and
eë¯’vi weKvk, g~j¨vqb I eë¯’vcbvi Rb¨ GKRb Ea©Zb wbe©vnx‡K `vwqZ¡ green financing. There is a green banking unit to develop,
cÖ`vb Kiv n‡q‡Q| wbqwgZ wMÖb e¨vswKs Kvh©vejx cl©‡ì wi¯‹ g¨v‡bR‡g›U evaluate and administer eco-friendly banking system. Green
KwgwU‡K AewnZ Kiv n‡”Q| FY MÖnxZvi g~j¨vq‡b evsjv‡`k e¨vs‡Ki ERM banking activities are being notified to the Risk Management
Committee of the Board on regular basis. Sonali Bank has
Ges G m¤úwK©Z Acivci wb‡`©kbvi Av‡jv‡K Credit risk methodology incorporated environmental and climate change risk as part
Gi Ask wn‡m‡e Environmental and climate change risk AšÍf©y³ of the existing credit risk methodology to asses a borrower
in line with Bangladesh Bank ERM (Environment Risk
Kiv n‡q‡Q| e¨vsK cÖZ¨¶ I c‡iv¶fv‡e cwi‡ek-evÜe Kg©Kv‡Û A_©vqb K‡i
Management) guide-lines and related instructions. The Bank
Avm‡Q| is funding directly and indirectly in eco-friendly activities.
cwieZ©bkxj mg‡qi mv‡_ Zvj wgwj‡q Pjvi wbwgË †mvbvjx e¨vsK wjwg‡UW Sonali Bank Limited has made substantial investment for
the development of the ICT infrastructure, vast automation
e¨vcK A‡Uv‡gkb Kg©m~wP Ae¨vnZ †i‡L‡Q Ges GhverKv‡j m‡e©v”P cwigvY of unheard of magnitude, cyber security, manpower
Annual Report 2020

YEAR OF EXCELLENCE
A_© wewb‡qvM K‡i‡Q| Zxeª cÖwZ‡hvwMZvi gy‡LI e¨vsK Kv‡Ri ¸YMZ development and research to keep itself abreast with the
changing needs of the time. In the face of increasingly
gv‡bi Dbœqb, Af¨šÍixY Drcv`bkxjZv e„w×, MÖvnK †mevi gv‡bvbœqb fierce competition, the bank has been continuously
Ges Kv‡Ri ¯^”QZv wbwðZ Kivi j‡¶¨ me©vaywbK cÖhyw³ cÖ‡qv‡Mi Aweivg striving towards bringing technology driven banking
services, convenience and satisfaction to its customers. It
cÖ‡Póv Pvwj‡q hv‡”Q| wbiwew”Qbœ, wbf©i‡hvM¨, `ªæZ I ¯^íe¨‡q RbM‡Yi helps standardize the quality of work, internal productivity
and improved customer service. The Bank has already
†`vi‡Mvovq one stop customer service Kvh©µg †cŠu‡Q †`qvi j‡¶¨ implemented international standard robust Core Banking
B‡Zvg‡a¨ e¨vs‡Ki mKj kvLv‡K AvšÍR©vwZK gvbm¤úbœ Core Banking Solution (CBS) system in all branches in order to provide
uninterrupted, reliable, faster and instant one stop customer
Solution (CBS) G †bUIqv‡K©i AvIZvq wb‡q Avmv n‡q‡Q| service at an affordable cost.
`vwqZ¡kxj K‡c©v‡iU cÖwZôvb wn‡m‡e †kqvi‡nvìvi, †`‡ki A_©bxwZ, mgvR, Sonali Bank Limited as a responsible corporate citizen is
fully aware of its responsibility about how its operational
Kg©xevwnbx I cwi‡e‡ki Dci e¨vs‡Ki Kvh©µ‡gi AwfNv‡Zi wel‡q e¨vsK activities impact its shareholders, the economy, its
c~Y©gvÎvq m‡PZb Av‡Q| ˆbwZKZvi mv‡_ eëmvwqK Kvh©µg cwiPvjbv, eëmv employees, the society and the environment. Conducting
business in an ethical way, creating opportunities for
I A_©‰bwZK cÖe„w×i my‡hvM m„wó, RbM‡Yi AvKv•Lv c~iY, cwi‡e‡ki cÖwZ business and economic growth, empowering people to
j¶¨ †i‡L A_©vqb Ges mgv‡Ri `yt¯’ gvby‡li cÖwZ mnvqZvi nvZ cÖmvwiZKiYB fulfill their aspirations, ensuring protection of environment
while financing business and supporting the distressed
†mvbvjx e¨vs‡Ki mvgvwRK `vqe×Zvi g~j j¶¨| Avgiv wek¦vm Kwi, `vwqZ¡kxj people of the society are at the heart of the corporate
AvPiY †`‡ki A_©‰bwZK I mvgvwRK Dbœq‡bi mv‡_ IZ‡cÖvZfv‡e RwoZ Ges social responsibility of Sonali Bank Limited. We believe that
responsible conducts are directly correlated with economic
GRb¨ m~PbvjMœ †_‡K e¨vsK wewea mvgvwRK I Rbwn‰Zlx Kg©m~wP ev¯Íevq‡b
and social development of the country. Sonali Bank Limited
c_ cÖ`k©bKvixi fzwgKv cvjb K‡i Avm‡Q| e¨vsK wk¶v, µxov, ¯^v¯’¨, gvbe has been playing a pioneering role in implementing various
social and philanthropic programs. Education, sports,
m¤ú` Dbœqb, cÖK…wZ msi¶Y, mvgvwRK m‡PZbZv e„w×, `yt¯’ gvby‡li cybe©vmb,
healthcare, human resources development, conservation
kxZvZ©‡ì gv‡S DòZv m„wói cÖqv‡m K¤^j weZiY Ges gvbweK wech©‡q wewfbœ of nature, creation of social awareness, rehabilitation of
distressed humanities, distributing blankets amongst the
Kg©m~wP nv‡Z †bqvi gva¨‡g mvgvwRK I Rbwn‰Zlx Kg©m~wP cwiPvjbv K‡i
cold affected people are some of the important areas where
Avm‡Q| the bank carries out its social and philanthropic activities.
2020 mv‡j Avgvi mnKg©xe„›` Kg©`¶Zv I ‡ckv`vwi‡Z¡i cÖwZdjb NwU‡q The year 2020 was a demanding year in many respects
and a testament to the talent and professionalism of all
P¨v‡jÄ †gvKv‡ejv K‡i wewfbœ †¶‡Î DrK‡l©i bwRi ¯’vcb K‡i‡Qb| Avwg my colleagues who successfully met its challenges along
Avgvi mnKg©x‡ì K‡Vvi cwikªg, `¶Zv I A½xKv‡ii Rb¨ abëv` Rvbv‡Z the way. I would like to take this opportunity to extend
my thanks to my colleagues for their efforts. I render my
PvB| e¨vsK-‡K Afxô j‡¶¨ †cuŠQvi AwfhvÎvq w`K wb‡`©kbvi f~wgKv cvj‡bi humble thanks and indebtedness to the Board of Directors
of the Bank by whose able direction and prudent guidance,
Rb¨ e¨vs‡Ki cwiPvjbv cl©`‡K RvbvB K…ZÁZv I AvšÍwiK abëv`| m‡e©vcwi, our efforts met with success. In addition, I am gratified
A_© gš¿Yvj‡qi Avw_©K cÖwZôvb wefvM, evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR for their earnest co-operation. I also express my sincere
thanks and deep gratitude to Finance Division and Financial
GÛ G·‡PÄ Kwgkb Ges Ab¨vb¨ wbqš¿K ms¯’v‡K Avgv‡ì eëmvq cwiPvjbvq Institution Division of the Ministry of Finance, Government
of the Peoples Republic of Bangladesh, Bangladesh Bank,
mn‡hvwMZv, civgk© I mg_©b`v‡bi Rb¨ abëv` I K…ZÁZv RvbvB| Avwg
Bangladesh Securities & Exchange Commission and other
Avkv Kwi †h, DwjøwLZ mKj †÷K‡nvìvi‡ì mg_©b I mn‡hvwMZv eZ©gv‡bi regulatory bodies for their continued support and guidance.
I also expect that their all out support will continue in the
b¨vq mvg‡bi w`b¸‡jv‡ZI Ae¨vnZ _vK‡e| years to come.
Avgvi `„p wek¦vm †h, G ch©šÍ AwR©Z `„pZv I MwZB n‡e 2021 mv‡j Avgv‡ì We are entering into 2021 with our resilience and the
momentum that we have gained so far. We also have with
m½x| Avgv‡ì AmvaviY `jMZ cÖ‡Póv, AMÖvwaKvi wfwËK Kvh©µg Ges us an excellent team, a shared set of priorities and proven
mdjZvi AZxZ †iKW©B Avgv‡ì‡K Av‡iKwU mdjZvi eQi Dcnvi †`‡e| track record of good performance and with all these, we do
look forward to yet another year of success.
gnvb Avjøvn& Avgv‡ì mnvq †nvb| May Almighty Allah help us.
(†gvt AvZvDi ingvb cÖavb) (Md. Ataur Rahman Prodhan)
wmBI GÛ g¨v‡bwRs wW‡i±i CEO & Managing Director
56
Annual Report 2020

YEAR OF EXCELLENCE
DIRECTORS’
REPORT TO THE
SHAREHOLDERS
wemwgjøvwni ivn&gvwbi ivwng Bismillahir Rahmanir Rahim

m¤§vwbZ †kqvi‡nvìvie„›` Esteemed Shareholders
Avmmvjvgy AvjvBKzg| Assalamu Alaikum.
†mvbvjx e¨vsK wjwg‡UW Gi 14Zg evwl©K mvaviY mfvq Avcbv‡ì‡K We feel very honoured and privileged to have the opportunity
to welcome you to the 14th Annual General Meeting (AGM)
¯^vMZ Rvbv‡Z †c‡i Avgiv AZ¨šÍ Avbw›`Z| 2020 mv‡j e¨vs‡Ki eëmv of Sonali Bank Limited. We express our sincere gratitude to
cwiPvjbvi †ÿ‡Î Ae¨vnZ mg_©b I Drmvn †`qvi Rb¨ Avcbv‡ì mevB‡K all of you for your continued support and patronization in
Avgiv AvšÍwiKfv‡e abëv` I K…ZÁZv Ávcb KiwQ| Avcbv‡ì ch©v‡jvPbv carrying out the business of our Bank in 2020. We present
herewith the audited Financial Statements and the Auditors’
I we‡køl‡Yi Rb¨ Avgiv GLv‡b e¨vs‡Ki 31 wW‡m¤î 2020 ZvwiL wfwËK Report for the year ended 31 December 2020 for your kind
wbixwÿZ Avw_©K weeiYxmn wbixÿv cÖwZ‡e`b Dc¯’vcb KiwQ| perusal and consideration.
iv‡óªi e„nËg evwYwR¨K e¨vsK wn‡m‡e †mvbvjx e¨vsK wjwg‡UW me©¯Í‡ii MÖvn‡Ki Registered as Public Limited Company on 3 June 2007,
e¨vswKs myweav wbwðZKiYmn hy‡Mvc‡hvMx wbZ¨bZzb †cÖvWv± D™¢ve‡bi gva¨‡g Sonali Bank Limited (SBL), the state-owned and the largest
commercial bank in the country, has been operating and
†`‡ki †UKmB Dbœq‡b ¸iæZ¡c~Y© f~wgKv ivL‡Q| gvbm¤§Z MÖvnK †mev cÖ`v‡bi serving the nation by providing innovative banking services
j‡ÿ¨ bZzb wfkb I wgkb wb‡q G e¨vsK 3 Ryb, 2007 Zvwi‡L cvewjK and solutions to people from all walks of life and thereby
wjwg‡UW †Kv¤úvbx wn‡m‡e wbewÜZ nq | contributing to sustainable development of the country.
e¨vs‡Ki cvidi‡gÝ g~j¨vq‡bi j‡ÿ¨ G cÖwZ‡e`‡b †mvbvjx e¨vsK wjwg‡UW Gi The activities of the Bank and its operational performance
2020 mv‡ji eëmvwqK Kvh©µg Ges djvd‡ji mv‡_ 2019 mv‡ji Zzjbvg~jK in 2020 as compared to those in 2019 have been presented
in this report. The financial statements for the year ended
Ae¯’v Zz‡j aiv n‡q‡Q| Avw_©K cÖwZ‡e`bmg~n cÖ¯‘‡Zi mgq B›Uvib¨vkbvj 31 December 2020, prepared in accordance with the
wdb¨vwÝqvj wi‡cvwU©s ÷vÛvW© (AvBGdAviGm) mn Ab¨vb¨ wbqš¿YKvix ms¯’vi International Financial Reporting Standards (IFRS) and in
wb‡`©kvejx cwicvjb Kiv n‡q‡Q| DwjøwLZ wb‡`©kvejx cwicvjb K‡i 31 compliance with the regulatory requirements of the country,
wW‡m¤î, 2020 mv‡ji cÖ¯‘ZK…Z Avw_©K weeiYxmg~n GB cÖwZ‡e`‡bi mv‡_ have been annexed to the report. Before presenting the
mshy³ Av‡Q| e¨vs‡Ki Avw_©K Ae¯’vi wek` wPÎ Dc¯’vc‡bi c~‡e© 2020 mv‡ji details of the Bank’s performance in the year under review,
we would like to give you a snapshot of the performance
wek¦ A_©bxwZi cvkvcvwk evsjv‡`‡ki A_©bxwZi wKQz ¸iæZ¡c~Y© ‡cÖÿvc‡Ui of the world economy and Bangladesh economy in 2020
mvims‡ÿc Dc¯’vcb Kiv n‡jv| in key areas.
wek¦ A_©bxwZ 2020 World Economic Scenario 2020

wek¦e¨vcx †KvwfW 19 Gi msµgb Ges Gi †_‡K m„ó FYvZ¡K cÖfv‡e 2020 The world economy has witnessed unprecedented
disruptions in economic activities in 2020 caused by
mv‡j DbœZ I Dbœqbkxj mKj †`kB Z_v wek¦ A_©bxwZ Afvebxq evavi m¤§yLxb COVID-19 both in the developed and the developing
58
DIRECTORS' REPORT
n‡q‡Q| djk&ªywZ‡Z ‡`k¸‡jvi `vwi`ª¨ `~ixKib Ges Kg©ms¯’vb m„wói cÖ‡Póv countries which will impede efforts in reducing poverty and
generation of employment opportunities. It has impacted a
e¨vnZ n‡q‡Q hv RbM‡Yi Rxeb I RxweKvi Dci weiƒc cÖfve †d‡j‡Q| 2020 great toll on the lives and livelihood of the people in these
countries. The outbreak of COVID-19 pandemic and its
mv‡j †KvwfW 19 Gi cÖv`yf©ve wek¦ A_©bxwZi Dci FYvZ¡K cÖfve †d‡j‡Q|
massive adverse effects have pushed the global economic
‡KvwfW 19 Gi Giƒc weiƒc cÖfvemn hy³ivóª I Px‡bi g‡a¨ 2019 Gi cÖ_gv‡a© growth into negative in 2020. Economic activities also
suffered a setback in the face of longstanding rising tensions
evwbR¨ I ïé wel‡q m„ó `xN©¯’vqx D‡ËRbvi †cÖwÿ‡Z wek¦ A_©‰bwZK Kg©KvÛ originating from trade and tariff issues between the USA
and China. This sluggish trend started during the first half of
evavMÖ¯’ n‡q‡Q hv 2020 mv‡jI Pjgvb wQj| cvkvcvwk †`k I †m±i wfwËK 2019 and continued more or less throughout the year 2020.
Against this backdrop, a combination of country and sector
wKQz wbqvgK êwk¦K Kg©Kv‡Ûi MwZaviv‡K wKQzUv evavMÖ¯’ K‡i‡Q| 2019
specific factors further reduced expectation in economic
mv‡ji 3.2% Gi ¯^vfvweK cÖe„w×i ci 2020 mv‡j †mwU 2.8% G †b‡g activities. After recording a moderate growth rate of around
3.2 percent in 2019 global growth rate came down to 2.8
G‡m‡Q hv 2008-09 mv‡ji ci me©wb¤œ| †KvwfW 19 Gi cÖv`yf©v‡e DbœZ I percent in 2020. This growth rate is perhaps the lowest since
2008-09. With the adoption of various stimulus packages both
Dbœqbkxj †`kmg~n KZ©„K wewfbœ cÖ‡Yv`bv c¨v‡KR MÖn‡Yi Kvi‡Y 2021 mv‡j in the developed and the developing countries to minimize
the cost of COVID-19, the world economy is projected to
êwk¦K A_©‰bwZK cÖe„w× 6% G DbœxZ n‡Z cv‡i hv 2022 mv‡j 4.6% n‡Z
depict a significantly positive outcome in 2021 at 6.0 percent
cv‡i e‡j aviYv Kiv n‡”Q| which may be moderated to 4.6 percent in 2022.
AvšÍR©vwZK gy`ªv Znwej KZ©©„K cÖKvwkZ Iqvì© B‡Kv‡bvwgK AvDUjyK, RyjvB According to the World Economic Outlook Update July
2021 published by the International Monetary Fund, the
2021 Abymv‡i DbœZ we‡k¦ A_©‰bwZK cÖe„w× 2019 mv‡ji 1.6% n‡Z 2020
growth rate in the advanced economies declined by 4.6
mv‡j 4.6% Ges hy³iv‡óªi A_©‰bwZK cÖe„w× 2019 mv‡ji 2.2% n‡Z 2020 percent in 2020 from a growth rate of 1.6 percent in 2019.
mv‡j 3.5% n«vm †c‡q‡Q| Z‡e aviYv Kiv n‡”Q, 2021 I 2022 mv‡j In the United States it has declined by 3.5 percent in 2020
hy³iv‡óª h_vµ‡g 7.0% I 4.9% e„w× †c‡q e¨vcK cÖe„w× AwR©Z n‡e| 2020 from a moderate rate of 2.2 percent in 2019. It has been
projected to grow by a robust growth of 7.0 percent and
mv‡j cÖe„w×i wb¤œMvgxZvi KviY wn‡m‡e †KvwfW 19 Gi cÖv`yf©v‡ei cvkvcvwk 4.9 percent in 2021 and 2022 respectively. The slowdown
mv¤úªwZK mg‡q †NvwlZ evwYR¨ bxwZmn hy³ivóª KZ©„K Pxb n‡Z Avg`vwb c‡Yï is partly due to the spillover effects of trade measures
Dci ïév‡iv‡ci K_v D‡jøL Kiv hvq| including the tariffs imposed on the US imports from China.
Aciw`‡K BD‡iv AÂ‡ji †`kmg~‡n †fv³vi mÿgZv n«vm I eëmvqx‡ì The growth rate in Euro area slowed more than expected
as a combination of factors weighed on activity across the
g‡bvfve cwieZ©b, Rvg©vbx‡Z wW‡Rj PvwjZ evn‡bi be¨bxwZ cÖeZ©‡bi †ÿ‡Î countries which included among others, weakening of
mgq‡ÿcb Ges Avw_©K bxwZi AwbðqZv‡nZz cÖe„w×i nvi AcÖZ¨vwkZfv‡e consumer and business sentiments, delays associated with
the introduction of new fuel emission standards for diesel
axiMwZ‡Z GwM‡q‡Q| 2017 mvj cieZ©x D‡jøL‡hvM¨ A_©‰bwZK Kg©KvÛ powered vehicles in Germany and fiscal policy uncertainties.
m¤úvw`Z n‡jI AvšÍ-BD‡iv AÂ‡ji BD‡iv gy`ªv wfwËK †`kmg~‡ni g‡a¨ Following a significant pickup in economic activities in 2017
exports from Euro area countries softened considerably
cvi®úwiK eëmvwqK `ye©jZvi Kvi‡b ci¯ú‡ii g‡a¨ ißvwb e¨vcKfv‡e n«vm because of weak intra-euro-area trade which exacerbated
poor business sentiments across the currency area. Growth
cvq| BD‡iv AÂ‡ji e„nr A_©bxwZ mg„× †`k Rvg©vbx, dªvÝ, BZvwj I
rate in major Euro area countries like Germany, France,
†¯ú‡bi cÖe„w× 2020 mv‡j gvivZ¥Kfv‡e n«vm †c‡q‡Q| BD‡iv AÂ‡ji mvgwMÖK Italy, Spain slowed down significantly in 2020. As a group,
growth rate in Euro area has declined by 6.5 percent in
A_©‰bwZK cÖe„w× 2019 mv‡ji 1.3% n‡Z 2020 mv‡j 6.5% n«vm †c‡q‡Q|
2020 compared to a growth of 1.3 percent in 2019. With the
†KvwfW 19 Gi Kvi‡Y wewfbœ cÖwZKvig~jK D‡`¨vM MÖnY Kivq 2021 mv‡j G adoption of proactive measures in the face of COVID-19 the
overall economic activities in the euro area are projected
AÂ‡ji cÖe„w× 4.6% e„w× †c‡q Ny‡i `vov‡Z cv‡i hv 2022 mv‡jI a‡i ivL‡e to rebound in 2021 by 4.6 percent and may remain more
e‡j avibv Kiv n‡”Q| hy³iv‡Rï A_©‰bwZK cÖe„w× 2019 mv‡j 1.4% wQ‡jv hv or less at that level in 2022. Growth rate in the UK, which
was recorded at 1.4 percent in 2019 sharply declined by 9.8
2020 mv‡j wVK 9.8% n«vm †c‡q‡Q| Z‡e Zv 2021 I 2022 mv‡j h_vµ‡g percent in 2020. It is projected to grow by a robust rate of
7.0% I 4.8% nv‡i e¨vcKfv‡e e„w× cv‡e e‡j Abygvb Kiv n‡”Q| Rvcv‡bi 7.0 percent in 2021 and may be moderated at 4.8 percent
2022. Growth rate in Japan also decelerated to 4.7 percent
cÖe„w×I 2020 mv‡ji 4.7% n«vm †c‡q‡Q hv 2021 mv‡j 2.5% Ges 2022 in 2020 which may grow 2.5 percent in 2021 and further by
mv‡j 3.0% nv‡i e„w× †c‡Z cv‡i| 3.0 percent in 2022.
D`xqgvb evRvi I Dbœqbkxj A_©‰bwZK †`kmg~n hv †gvU wek¦ cÖe„w×i 70% Growth rates in the emerging market and developing
economies accounting for over 70 percent of global growth
Gi g‡Zv, †mme †`‡ki cÖe„w× êwPÎ¨c~Y© Ges cÖwZØw›`¦Zvc~Y©| Gme †`‡ki are diverse and challenging. Overall growth rate in these
cÖe„w× 2019 mv‡ji 3.7% Gi ¯’‡j 2020 mv‡j 2.1% n«vm †c‡q‡Q| GwU countries declined by 2.1 percent in 2020 as compared to
c~‡e©i Zzjbvq 2021 mv‡j 6.3% Ges 2022 mv‡j 5.2% nv‡i e„w× cv‡e e‡j the growth rate of 3.7 percent in 2019. It is projected to
grow by a robust rate of 6.3 percent in 2021 and by 5.2
cÖ‡ÿcb Kiv n‡q‡Q| G AÂ‡ji Ab¨Zg †`k ivwkqvi A_©‰bwZK cÖe„w× 2019 percent in 2022. Economic growth in Russia, a country of
Annual Report 2020

YEAR OF EXCELLENCE
mv‡ji 2.0% n‡Z 2020 mv‡j 3.0% n«vm †c‡q‡Q hwÌ 2021 mv‡j †mwU emerging and developing Europe, declined by 3.0 percent
c~‡e©i Zzjbvq 4.4% e„w× †c‡q Ny‡i `vov‡Z cv‡i| in 2020 compared to a growth rate 2.0 percent in 2019.
Growth rate is projected to rebound by 4.4 percent in 2021.
‰ewk¦K cÖe„w×i A‡a©‡KiI †ekx AR©b Kiv D`xqgvb I Dbœqbkxj Gwkqvi The emerging and developing Asia which accounts for over
†`kmg~‡n mv¤úªwZK mg‡q cÖvq GKBiKg cÖe„w× eRvq _vK‡e| G †`k¸‡jvi half of world growth will remain more or less flat in recent
years. Growth rate in these countries marginally declined
cÖe„w× 2019 mv‡ji 5.4% n‡Z 0.9% n«vm †c‡q‡Q| cÖv°jb †gvZv‡eK c~‡e©i to 0.9 percent in 2020 as compared to a moderate growth
of 5.4 percent in 2019. It has been projected to grow
Zzjbvq cÖe„w×i GB nvi 2021 mv‡j 7.4% Ges 2022 mv‡j wKQzUv MwZ jvf
significantly by 7.4 percent in 2021 and by 5.4 percent in
K‡i 5.4% e„w× †c‡Z cv‡i| Px‡bi A_©‰bwZK cÖe„w× 2019 mv‡ji 6.0% Gi 2022. China’s economic growth rate cooled down to
stand at 2.3 percent as against 6.0 percent in 2019. In
wecix‡Z 2020 mv‡j ‡ek LvwbKUv n«vm †c‡q 2.3% n‡q‡Q| Af¨šÍixY K‡R©i China necessary domestic regulatory tightening to rein in
jvMvg †U‡b aiv I Avw_©K Kvh©µg ms‡KvP‡bi Kvi‡Y †`kxq AeKvVv‡gvq debt, constrain shadow financial intermediation and place
growth on a sustainable footing contributed to slower
wewb‡qvM axiMwZi wQj| Mvox µ‡qi †ÿ‡Î cÖ‡Yv`bvq †gqv‡`vËx‡Y©i ‡cÖwÿ‡Z domestic investment particularly in infrastructure. Spending
A‡Uv‡gvevBj wewµ n«v‡mi Kvi‡Y 2020 mv‡j `xN©¯’vqx c‡Yï †fvMe¨q on durable consumption goods in China softened with
automobile sales declining in 2020 following the expiration
mnRZi Kiv n‡q‡Q| of incentive programs for car purchases.
gvP©-†g mgqKvjxb †KvwfW 19 Gi wØZxq †XD fvi‡Zi A_©bxwZi AMÖMwZ‡K Growth prospects in India have been downgraded following
the severe second COVID-19 wave during March-May and
gvivZ¥Kfv‡e e¨vnZ K‡i‡Q hv cybiæ×vi Kiv AZ¨šÍ KwVb n‡Z cv‡i| GKB
expected slow recover in confidence from that setback.
Kvi‡b Avwkqvbf~³ 5wU †`‡ki (B‡›`v‡bwkqv, gvj‡qwkqv, wdwjwcbm, Similar dynamics are at work in the ASEAN-5 (Indonesia
Malaysia, Philippines, Thailand and Vietnam) where recent
_vBj¨vÛ Ges wf‡qZbvg) A_©‰bwZK Kg©KvÛ evavcÖvß n‡q‡Q| mvgwMÖKfv‡e infection waves are causing a drag on economic activities
D³ †`kmg~‡ni cÖe„w× 2019 mv‡ji 4.9% Gi Zzjbvq 2020 mv‡j 3.4% n«vm in these countries. Overall growth rate in ASEAN-5 countries
declined by 3.4 percent in 2020 compared to a positive
†c‡q‡Q| cÖv°jb †gvZv‡eK GmKj †`‡k 2021 mv‡j 4.3% Ges 2022 mv‡j growth rate of 4.9 percent in 2019. It has been projected
6.3% cÖe„w× AwR©Z n‡Z cv‡i| ga¨cÖvP¨ Ges ga¨ Gwkqvi †`kmg~‡n cÖe„w× to show a growth of 4.3 percent in 2021 and further by 6.3
percent in 2022. Growth in the countries in the Middle East
2019 mv‡ji 1.4% Gi n‡Z 2020 mv‡j 2.5% n«vm †c‡q‡Q| GwU 2021 and Central Asia declined by 2.5 percent in 2020 compared
I 2022 mv‡j 4% nv‡i e„w× †c‡Z cv‡i| mve mvnviv Avwd«Kvi †`kmg~‡ni to a small growth of 1.4 percent in 2019. It may grow by
about 4.0 percent both in 2021 and in 2022. Growth rates
cÖe„w× 2019 mv‡ji 3.2% n‡Z 2020 mv‡j 1.8% wb¤œMvgx n‡q‡Q| Dc‡ii in Sub Saharan African countries declined by 1.8 percent
Av‡jvPbv †_‡K cÖZxqgvb n‡”Q †h, we‡k¦i cÖvq mKj †`‡ki A_©‰bwZK cÖe„w× in 2020 in contrast to the growth of 3.2 percent in 2019.
It appears from the above discussion that growth rates
2019 mv‡ji Zzjbvq 2020 mv‡j n«vm †c‡jI 2021 I 2022 mv‡j cybivq in almost all the countries significantly declined in 2020
MwZ jvf Ki‡e| compared to those in 2019 and are projected to grow in
2021 and in 2022.
wek¦ evRv‡i †fvM¨cY¨ we‡kl K‡i R¡vjvbx †Z‡ji g~j¨ 2020 mv‡jI wb¤œMvgx Commodity prices (particularly oil) in the world market in
2020 have been showing a declining trend. On the other
aviv Ae¨vnZ ivL‡jI †Zj ewnf©©~Z LvZ EaŸ©gyLx i‡q‡Q| ‡Z‡ji gyj¨ 2019 hand, non-fuel prices were showing increasing trend. Oil
mv‡ji 10.2% n«v‡mi ¯’‡j 2020 mv‡j 32.7%% n«vm †c‡q‡Q hwÌ prices declined by 32.7 percent in 2020 compared to a
decline of 10.2 percent in 2019. It may significantly increase
‡mwU 2021 mv‡j my¯úófv‡e 56.6% e„w×i m¤¢vebv i‡q‡Q| Ab¨w`‡K †Zj by 56.6 percent in 2021. Non fuel prices increased by
ewnf©~Z LvZ 2019 mv‡ji 0.5% e„w×I wecix‡Z 2020 mv‡j 6.7% e„w× 6.7 percent in 2020 compared to a small increase of 0.5
percent in 2019. As a result, consumer prices have increased
†c‡q‡Q| dj¯îƒc DbœZ, D`xqgvb I Dbœqbkxjmn mKj †`‡kB †fvM¨c‡Yï across the advanced and the emerging market and
developing economies in 2020. In advanced economies
`vg e„w× †c‡q‡Q| DbœZ A_©bxwZi †`kmg~‡n Zv 2019 Gi 1.4% Gi Zzjbvq
it has increased by 1.7 percent in 2020 compared to 1.4
2020 mv‡j 1.7% e„w× †c‡q‡Q hv 2021 I 2022 mv‡j h_vµ‡g 2.4% percent in 2019. It has been projected to grow further by
2.4 percent and 2.1 percent in 2021 and 2022 respectively.
I 2.1% nv‡i e„w× cv‡e e‡j avibv Kiv n‡”Q| Aciw`‡K, †fwbRy‡qjv On other hand, consumer prices in emerging market and
e¨ZxZ D`xqgvb I Dbœqbkxj †`kmg~‡n †fvM¨c‡Yï `vg 2019 I 2020 mv‡j developing economies excluding Venezuela remained flat
at 5.1 percent in 2019 and in 2020. It may marginally go up
5.1% G w¯’i wQj hv 2021 mv‡j mvgvb¨ e„w× †c‡q 5.4% G DbœxZ n‡Z cv‡i| by 5.4 percent 2021.
wek¦ evwY‡Rï (cY¨ I †mev) cÖe„w× 2020 mv‡j wb¤œMvgx aviv Ae¨vnZ †i‡L‡Q| World trade (goods and services) volume has registered a
declining trend in 2020. It has come down to 8.3 percent
gyjZt hy³ivóª I Px‡bi ga¨Kvi evwbR¨hy‡×i Kvi‡b GwU 2019 mv‡ji 0.9% in 2020 compared to 0.9 percent in 2019. This is due to
n‡Z 2020 mv‡j 8.3% n«vm †c‡q‡Q hwÌ †mwU 2021 I 2022 mv‡j h_ the escalation of trade war between the USA and China
and imposition of tariffs. But it is projected to grow by 9.7
vµ‡g 9.7% I 7% e„w× cv‡e e‡j cÖ‡ÿcb Kiv n‡q‡Q| percent and by 7.0 percent in 2021 and in 2022 respectively.
60
DIRECTORS' REPORT
evsjv‡`‡ki A_©bxwZ 2020 Bangladesh Economic Scenario 2020

mv¤úªwZKKv‡j evsjv‡`‡ki A_©bxwZ mvgwMÖKfv‡e mvgwóK A_©‰bwZK In recent years, Bangladesh economy has witnessed
w¯’wZkxjZv, gy`ªvùxwZi nvi n«vm, ê‡`wkK gy`ªv gRy‡ì D×©MwZ, my` nvi sustained macroeconomic stability, deceleration in
inflation rate, rising trend in foreign exchange reserves
wb¤œMvgx ivL‡Z mÿg n‡q‡Q| evsjv‡`k cwimsL¨vb ey¨‡iv (weweGm) Gi wnmve and declining interest rate. According to the estimates
released by the Bangladesh Bureau of Statistics (BBS), the
Abyhvqx 2019-20 A_©eQ‡i evsjv‡`‡ki A_©bxwZ 5.2% cÖe„w× AR©b K‡i‡Q
economy of Bangladesh grew by 5.2 percent during FY20
hv 2018-19 A_©eQ‡ii 8.2% Gi Zzjbvq D‡jøL‡hvM¨ cwigv‡b Kg| c~e©eZ©x which is significantly lower than 8.2 percent FY19. The
economic growth during the last few years was very robust
A_©eQi¸‡jv‡Z evsjv‡`‡ki e¨vcK cÖe„w× AwR©Z n‡jI 2019-20 A_©eQ‡ii in Bangladesh but with the advent of COVID-19 pandemic
†klv‡a© ïiæ nIqv †KvwfW 19 gnvgvwii Kvi‡b †`‡ki A_©‰bwZK AMÖMwZ which started during last quarter of FY20 adversely affected
the overall economic performance of the country. Following
gvivZ¥Kfv‡e e¨vnZ nIqvq A_©bxwZi cÖwZwU Lv‡Z Kg cÖe„w× AwR©Z n‡q‡Q| the negative impacts of COVID-19, all major sectors of the
Gi g‡aÏ evsjv‡`k `wÿY Gwkqvi g‡a¨ m‡e©v”P cÖe„w× AR©b K‡i‡Q| †KvwfW economy registered a lower growth. Even in the face of
this, the growth rate in Bangladesh in FY20 was the highest
19 Gi GB AwfNvZ 2020 mv‡j 8.2% Gi cÖe„w× AR©b Ges g~j¨ùxwZ 5.5 in the South Asian region. The outbreak of COVID-19 has
also created serious challenge in attaining growth at 8.2 and
Gi g‡a¨ a‡i ivLv‡K P¨v‡j‡Äi m¤§yLxb K‡i‡Q|
inflation rate at 5.5 percent in FY20.
‡KvwfW 19 Gi cÖv`yf©ve †`‡ki A_©bxwZi wewfbœ †m±‡i AcÖZ¨vwkZ gvÎvq The Performance in different sectors of the economy was
Lvivc cÖfve †i‡L‡Q| hwÌ †iwgU¨vÝ Ges wkí Drcv`b wRwWwc cÖe„w×i mv‡_ below expectation generated from the negative impacts
of COVID-19. But the growth in remittance and industrial
mgvb Zv‡j Pjgvb wQj| gvP© 2020 G †`‡k K‡ivbv fvBivm Gi msµgb production index was in line with the growth target of
wPwýZ nIqvi mv‡_ mv‡_B Gi msµgb †iv‡a miKvi 26 gvP© 2020 n‡Z GDP. With the identification of corona virus in Bangladesh
in March 2020 and to contain its spread, government
30 †g 2020 ch©šÍ mvaviY QzwU †NvlYv K‡i| Gi d‡j A_©eQ‡ii Aewkó
announced a national general holiday from 26 March to
mg‡q A_©‰bwZK Kg©KvÛ e¨vcKfv‡e n«vm cvq| A_©bxwZi wewfbœ †m±‡ii 30 May 2020. As a result of this, overall economic activities
cÖe„w× we‡kølb Ki‡j †`Lv hvq, wRwWwci GK-Z„Zxqvs‡ki AwaKvix wkíLvZ during the rest of the periods significantly declined. If
we analyze the growth rates of different sectors of the
2019-20 A_©eQ‡i 6.5% cÖe„w× AR©b K‡i‡Q hv MZeQ‡ii 12.7% cÖe„w×i economy, we see that industry sector which constitutes
Zzjbvq A‡bK bx‡P Ae¯’vb Ki‡Q| wRwWwc‡Z K…wlLv‡Zi Ae`vb 13.3% about more than one third of GDP grew by 6.5 percent in
FY20. But this was far below the growth rate of 12.7 percent
n‡jI G A_©eQ‡i 3.1% cÖe„w× AR©b K‡i‡Q hv c~e©eZ©x eQ‡i wQj 3.9%| in the last year. The agricultural sector which contributes
K…wli DcLvZmg~‡n cÖe„w× n«vm cvIqvq mvgwMÖKfv‡e K…wlLv‡Zi cÖe„w× n«vm about 13.3 percent to GDP in Bangladesh grew at a lower
rate of 3.1 percent in FY20 compared to 3.9 percent in the
†c‡q‡Q| wRwWwc‡Z ‡mevLvZ 51.3% Gi Askx`vi| †KvwfW 19 gnvgvwii
previous year. The growth rate in the agricultural sector
g‡aÏ G †m±i 5.2% cÖe„w× AR©b K‡i‡Q hwÌ Av‡Mi A_©eQ‡i G nvi declined due to moderation of growth in all sub-sectors of
wQj 6.8%| ¯^v¯’¨ I mvgvwRK LvZ 10.0% Ges Ab¨vb¨ A_©‰bwZK ms¯’vmg~n agriculture. In the face of COVID-19 pandemic, the services
sector contributing about more than half of GDP (51.3
9.5% Ae`v‡bi gva¨‡g ‡mevLv‡Zi cÖe„w×‡Z fzwgKv †i‡L‡Q| Avgv‡ì g‡b percent in FY20), grew by 5.2 percent in FY20 as compared
ivLv ìKvi, µgea©gvb ‡UKmB A_©‰bwZK cÖe„w× evsjv‡`k‡K wb¤œ Av‡qi to 6.8 percent in the last year. Within this sector, higher
growth impulse in FY20 mainly came from health and social
†`k ‡_‡K wb¤œ ga¨g Av‡qi †`‡k DbœxZ n‡Z mnvqK n‡e| evsjv‡`k OECD work (10.0 percent) and other financial intermediation (9.5
Export Credit Eligibility Group 5 Gi Rb¨ †hvM¨Zv AR©b K‡i‡Q| percent). It is to be noted here that a steady and a sustained
`wÿY Gwkqvq ïaygvÎ fvi‡Zi Ae¯’vb evsjv‡`‡ki Dc‡i Ges Ab¨vb¨ economic growth is necessary for graduation from LDC
to lower middle income country (LMIC). Bangladesh has
cÖwZ‡ekx †`kmg~n evsjv‡`‡ki Zzjbvq A‡bK wb‡P Ae¯’vb Ki‡Q| evsjv‡`k also qualified for OECD Export Credit Eligibility Group 5
c~‡e©i K‡qK eQ‡ii g‡Zv GeviI Ba3 (Moody’s) Ges BB- (Standard & which is only below India but ahead of all other South Asian
neighbors. Bangladesh achieved Ba3 (Moody’s) and BB-
Poor’s) †iwUs AR©b K‡i‡Q| evsjv‡`k Uvbv 4_© ev‡ii gZ Fitch Rating (Standard and Poor’s) for stable outlook for the last several
†_‡K w¯’wZkxj cÖe„w× Ges gReyZ ê‡`wkK w¯’wZi Rb¨ BB- †iwUsI AR©b years. Bangladesh also achieved BB- rating for stable growth
rate and strong external balances from Fitch Ratings for the
K‡i‡Q| Avkv Kiv hv‡”Q evsjv‡`k 2030 mvj ev Zvi Av‡MB D”P ga¨g
fourth time. Bangladesh is expecting to reach the status of
Av‡qi †`‡k cwiYZ n‡e| upper middle country (UMIC) by 2030 or earlier.
A_©‰bwZK Kg©Kv‡Û MwZkxjZv Avbq‡bi j‡ÿ¨ evsjv‡`k miKvi I evsjv‡`k With a view to revamping economic activities the
government and the Bangladesh Bank took various
e¨vsK eëmv cwiPvjbvi Rb¨ Zvij¨ e„w× Ges evRv‡i FY weZi‡Yi wewea measures in the financial sector in FY20 by providing
adequate liquidity and loanable funds in the market by
D‡`¨vM MÖnb K‡i‡Q| G¸‡jvi g‡a¨ K¨vk wiRvf© †iwkI, e¨vsK †iU, †i‡cv ensuring un-interrupted business operations. Such policy
measures include but are not limited to cash reserve ratio,
I wifvm© †i‡cv, Uvg© †i‡cv cÖbqb I GwW †iwkI e„w×KiY Ges Bb‡f÷‡g›U bank rate, repo and reverse repo rates, introduction of
term repo and extension of advance to deposit ratio (ADR)
Annual Report 2020

YEAR OF EXCELLENCE
†iwkI BZ¨vw` Ab¨Zg| wewfbœ †ÿ‡Î miKv‡ii GmKj mgwš^Z D‡`¨v‡Mi and investment to deposit ratio (IDR) etc. As a result of the
concerted efforts initiated by the government in different
gva¨‡g †KvwfW 19 Gi KzcÖfve †gvKv‡ejv m¤¢e n‡q‡Q Ges 2019-20 A_©eQ‡i fields to neutralize the negative impacts of COVID-19,
Bangladesh economy remained more or less stable and
5.2% Gi g‡Zv ZzjbvgyjKfv‡e fv‡jv GKwU cÖe„w× AR©b Ki‡Z mÿg n‡q‡Q|
resilient and recorded relatively a higher growth rate of 5.2
Px‡bi 2.3%, fvi‡Zi FYvZ¥K 7.3% Ges Ab¨vb¨ Avwkqvbfz³ †`kmgy‡ni percent FY20. This growth rate is much above that in China
(2.3 percent) and in India (-7.3 percent) and in other ASEAN
FYvZ¥K 3.4% Gi Zzjbvq †ek LvwbKUv Dc‡i Ae¯’vb Ki‡Q| wewfbœ Lv‡Z countries (-3.4 percent) in 2020 (World Economic Outlook
Update, IMF, July 2021, page 6). This higher growth rate was
†UKmB cÖe„w× AR©b †`‡ki GB cÖe„w× AR©‡b fzwgKv †i‡L‡Q| made possible because of sustained growth rate in all the
sectors of the economy.
evsjv‡`k e¨vsK Zvi g~`ªvbxwZ‡Z g~j¨ Ges mvgwóK `~i`„wóm¤úbœ Avw_©K In addition to price and macroeconomic and financial stability
w¯’wZkxjZv‡K jÿ¨ ivLvi cvkvcvwk AšÍf©yw³g~jK Ges cwi‡ekMZfv‡e objectives, Bangladesh Bank (BB) in its monetary policy
stance generally emphasizes inclusivity and environmental
†UKmB Kg©ms¯’vb m„wóg~jK Kvh©µg I †UKmB Dbœqb cÖe„w× †KŠkj‡K ¸iæZ¡ sustainability with a view to enhancing employment
w`‡q‡Q| G j‡ÿ¨ gy`ªvbxwZi cÖwZ‡e`b ‡gvZv‡eK 2019-20 A_©eQ‡ii Rb¨ generation activities in line with Sustainable Development
evsjv‡`k e¨vsK GKwU mveavbx, AšÍfz©w³g~jK, g~j¨ùxwZ n«vmKvix, wewb‡qvM Growth (SDG) strategy. With this end in view, BB pursued
a cautious, inclusive, inflation limiting, investment and
Ges cÖe„w× evÜe gy`ªvbxwZ †NvlYv K‡i| evsjv‡`k e¨vsK †`‡ki Avw_©K LvZ‡K
growth friendly Monetary Policy during FY20 as enunciated
cwi‡ek evÜe A_©‰bwZK Kvh©µ‡g A_©vq‡b Drmvn cÖ`vbmn Kvh©Kix c`‡ÿc in its Monetary Policy Statements. Bangladesh Bank took
MÖnY K‡i‡Q| evsjv‡`k e¨vsK KZ…©K A_©‰bwZK Kg©Kv‡Û cwi‡ekMZ †UKmB effective initiatives to involve the country’s financial sector
A_©vq‡b Avww_©K Lv‡‡Zi mswkøóZv‡K we‡kl ¸iæZ¡ †`qv n‡q‡Q| G‡ÿ‡Î K…wl I in encouraging/ promoting environmentally sustainable
financing of economic activities. Particular emphasis was
GmGgB Lv‡Zi AšÍf©yw³ we‡kl cÖvavb¨ †c‡q‡Q| miKv‡ii Dbœqb bxwZgvjv‡K assigned to Bangladesh Bank’s financial inclusion initiatives
AMÖvwaKvi w`‡q evsjv‡`k e¨vsK KZ©„K gy`ªvbxwZ I FY bxwZgvjv cÖbqY Kiv especially to agriculture and SME sectors. Bangladesh
n‡q‡Q| Bank’s monetary and credit policies consistently adopt a
stance supportive of the government’s growth objectives.
evsjv‡`‡k Broad Money Supply 2018-19 A_©eQ‡i AwR©Z 9.9% Broad money supply in Bangladesh accelerated in FY20
Ges 2019-20 Gi jÿ¨gvÎv 13.0% Gi wecix‡Z 12.7% AwR©Z n‡q‡Q| by 12.7 percent compared to 9.9 percent in FY19. This was
marginally short of the FY20 monetary program target
e¨vsK eë¯’vq cvewjK †m±‡i D”P FYcÖevn RwbZ wbU Af¨šÍixY m¤ú` e„w×i growth of 13.0 percent. The growth in broad money was
Kvi‡YB g~jZ Broad Money Supply e„w× †c‡q‡Q| e¨vsK eë¯’v †_‡K mainly driven by increase in net domestic assets (NDAs)
of the banking system. Domestic credit from the banking
Af¨šÍixY FYcÖevn 2019-20 A_©eQ‡i 13.7% e„w× †c‡jI cÖe„w×i jÿ¨gvÎv
system also recorded an increase of 13.7 percent in FY20
17.4% Zzjbvq bx‡P Ae¯’vb Ki‡Q| 2018-19 A_©eQ‡i G nvi wQj 12.4%| which was below the programmed growth of 17.4 percent
GKBfv‡e 2019-20 A_©eQ‡i c&ªvB‡fU †m±‡i FYc&ªevn 2018-19 A_©eQ‡ii for the year. The growth of domestic credit was 12.4
percent in FY19. Credit to private sector increased by 8.6
11.3% Gi Zzjbvq 8.6% e„w× †c‡jI 2019-20 Gi cÖe„w×i jÿ¨gvÎv percent in FY20 much lower than the targeted growth of
14.8% Zzjbvq wb‡¤œ Ae¯’vb Ki‡Q| †KvwfW 19 RwbZ jKWvDb _vKvq Ges 14.8 percent for the year and actual growth of 11.3 percent
in FY19. The lower growth in private sector credit may be
ZrcieZ©x mg‡q ¸YMZ F‡Yi cÖwZ e¨vsK AvMÖnx nIqvq cÖvB‡fU †m±‡i F‡Yi
partly attributable to banks’ adherence to quality credit and
cÖevn msKzwPZ n‡q‡Q| COVID -19 lockdown.
The twelve month annual average of general inflation rate
2019-20 A_©eQ‡ii evwl©K Mo g~j¨ùxwZi nv‡i GKwU EaŸ©gyLx aviv cwijwÿZ
in Bangladesh has shown an uptrend in FY20. It marginally
n‡q‡Q| g~jZ †KvwfW 19 D™¢~Z cY¨ mieiv‡ni AwbðqZvRwbZ Kvi‡b increased from 5.5 percent in FY19 to 5.7 percent in FY20.
The increasing trend in average inflation rate is mainly due
GwU 2019 Gi 5.5% n‡Z wKQzUv e„w× †c‡q 2020 G 5.7% ùvwo‡q‡Q| to uncertainties emanated from COVID-19 pandemic and
disruptions in supply chain. Increased consumer prices in the
wek¦evRv‡i †fvM¨c‡Yï g~jë„w× Ges e¨wZµgx AvenvIqvI GB g~j¨ùxwZi
world market and weather related shocks also contributed
Ab¨Zg Kvib| hwÌ Lv`¨ I †Z‡ji ewnf~©Z g~j g~j¨ùxwZ 2019 Gi 5.7% to higher trend in domestic price level. However, core
inflation (which excludes prices of food and energy) rate
Gi ¯’‡j 2020 G 5.1% G †b‡g G‡m‡Q| decreased to 5.1 percent in June 2020 from 5.7 percent in
June 2019.
cY¨, †mev I ch©Ub Pvwn`vi ¯^íZvmn wewfbœ Kvi‡b wek¦evwbR¨ ¯úófv‡e Global trade experienced a sharp decline of -11.9 percent in
2020 compared to that in the previous year due to weaker
wb¤œgyLx n‡q‡Q| GKBfv‡e, evsjv‡`‡ki ¸iæZ¡c~Y© ewntLv‡Zi m~PKmg~‡n demand for goods and services and limited cross border
2019-20 A_© eQ‡i wb¤œgyLx cÖebZv jÿ¨ Kiv hvq| ‡KvwfW 19 Gi Kvi‡b G tourism and supply dislocations. In line with this, the major
external sector indicators in Bangladesh also depicted a
mg‡q ißvwbi cwigvb c~e©eZ©x eQ‡ii Zzjbvq 16.9% n«vm †c‡q 33,674.10 downward trend during FY20. Export earnings drastically
wgwjq‡b ùvovq| Gi g‡aÏ †`‡ki †gvU ißvwbi cuvP fv‡Mi Pvi fvM ‰Zix decreased by 16.9 percent to USD 33674.1 million mainly
due to COVID-19 pandemic. Readymade garments
62
DIRECTORS' REPORT
†cvkvK Lv‡Zi `L‡j i‡q‡Q| Aciw`‡K, Avg`vwb e¨q D³ mg‡q 8.6% n«vm continued to occupy about more than four fifths of total
export receipts in Bangladesh. In the same way, during the
†c‡q 50,691 wgwjqb Wjv‡i ùvovq hv c~e©eZ©x A_©eQ‡I wQj 55,438.50
same period i.e, in FY20 total import payments also declined
wgwjqb Wjvi| G mg‡q ißvwb Avq Avg`vwb e¨‡qi Zzjbvq n«vm cvIqvq by 8.6 percent to USD50691.0 million from USD 55438.5
million in FY19. Comparatively larger decline in export
evwYR¨ NvUwZ e„w× †c‡q‡Q| evwbR¨ NvUwZi cwigvY 2018-19 Gi 15,835 receipts than import payments led to widen trade deficit in
wgwjqb gvwK©b Wjvi n‡Z 12.8% e„w× †c‡q 2019-20 G 17,861 wgwjqb FY20. The trade deficit grew by 12.8 percent to USD 17861
million in FY20 as compared to the deficit of USD 15835.0
Wjv‡i DbœxZ n‡q‡Q| †mev I cÖv_wgK Avq wnmve NvUwZ DfqB n«vm †c‡q‡Q| million in FY19. The deficit in both services account and
Aciw`‡K †m‡KÛvwi Avq 11.1% e„w× †c‡q‡Q| ewntLvZ mg~‡ni cÖfv‡e PjwZ primary income account decreased. However, secondary
income increased significantly by 11.1 percent. As a result
wnmv‡ei e¨v‡jÝ 2018-19 Gi 5102 wgwjqb Wjvi n‡Z n«vm †c‡q 2019- of all these developments in the external sector, current
account balance declined to USD 4849.0 million in FY20
20 G 4,849 wgwjqb Wjv‡i ùvwo‡q‡Q| Ab¨w`‡K g~jab I Avw_©K wnmve
which was USD 5102.0 million in FY19. But the balances
e„w× †c‡q‡Q| d‡j, mvgwMªKfv‡e e¨vjvÝ Gi DØ„Ë 2018-19 A_©eQ‡ii 179 in the capital account and financial account increased.
Thus, the net outcome all these made the overall balance
wgwjqb gvwK©b Wjv‡ii ¯’‡j 2019-20 A_©eQ‡i 3655 wgwjqb gvwK©b Wjv‡i a surplus of USD 3655.0 million in FY20 as compared to a
DbœxZ n‡q‡Q| smaller surplus of USD 179.0 million in FY19.
evsjv‡`kx cÖevmx‡ì gva¨‡g ‡cÖwiZ d‡ib †iwgU¨vÝ e¨v‡jÝ Ae †c‡g›U The inflow of inward remittances from the Bangladeshi
nationals working abroad continued to play a vital role in
Gi PjwZ wnmve kw³kvjxKi‡Y we‡kl f~wgKv cvjb Ki‡Q| †iwgU¨v‡Ýi GB strengthening the current account balance in the balance
AvšÍtcÖevn 2018-19 A_©eQ‡ii 16,419.63 wgwjqb Wjvi n‡Z 10.9% of payments. Remittances increased by 10.9 percent USD
18205.01 million in FY20 from USD 16419.63 million in FY19.
e„w× †c‡q 2019-20 A_©eQ‡i 18,205.01 wgwjqb Wjv‡i DbœxZ n‡q‡Q| Due to government incentives, simplification of sending
miKvix cÖ‡Yv`bv, †iwgU¨vÝ †cÖiY cÖwµqv mnRZi Kiv Ges AbyK~j bxwZgvjv remittance in formal channel and different supportive
policy measures regarding remittances helped expatriates
cÖeZ©‡bi d‡j GB †iwgU¨vÝ Gi cÖevn DaŸ©Mvgx n‡q‡Q| †iwgU¨vÝ cÖev‡ni to increase inflows again. To ease the formal channel,
¯^vfvweK cÖwµqv mnRxKi‡Yi j‡ÿ¨ evsjv‡`k e¨vsK ¯’vbxq e¨vs‡Ki mv‡_ Bangladesh Bank reduced the security deposit requirement
for the exchange houses abroad to establish drawing
evB‡ii G·‡PÄ nvD‡Ri wmwKDwiwU wW‡cvwR‡Ui cwigvY n«vm K‡i‡Q| we‡k¦i arrangement with local banks. At present, the commercial
wewfbœ cÖvšÍ n‡Z †iwgU¨vÝ msMÖ‡ni Rb¨ eZ©gv‡b †`‡ki evwbwR¨K e¨vsK¸‡jvi banks have 1312 drawing arrangements with more than
334 exchange houses all over the world for collecting
mv‡_ 334wU G·‡PÄ nvD‡Ri mv‡_ ‡gvU 1312wU Wªwqs G¨v‡iÄ‡g›U i‡q‡Q| remittances. Gross foreign exchange reserves held with
evsjv‡`k e¨vs‡K †gvU ê‡`wkK gy`ªvi mwÂwZ 2019 mv‡ji Ryb gv‡mi the Bangladesh Bank increased to USD 36,037 million at
the end of June 2020 which was USD 32,717 million at the
32,717 wgwjqb gvwK©b Wjvi n‡Z 2020 mv‡ji Ryb gv‡m 36,037 wgwjqb end of June 2019. This level of foreign exchange reserves
Wjv‡i DbœxZ n‡q‡Q| †`‡ki eZ©gvb GB ‰e‡`wkK gy`ªvi mwÂwZ AvU gv‡mi is good enough to cover about eight month’s equivalent of
Avg`vwb g~j¨ cwi‡kv‡ai Rb¨ ch©vß| import payments of the country.
†mvbvjx e¨vsK wjwg‡UW Gi AvZ¥cÖKvk The emergence of Sonali Bank Limited

evsjv‡`k e¨vsK (b¨vkbvjvB‡Rkb) AW©vi-1972, ivóªcwZi Aa¨v‡`k bs-26, Sonali Bank was established under the Bangladesh Banks
1972 †gvZv‡eK b¨vkbvj e¨vsK Ae cvwK¯Ívb, w` e¨vsK Ae evn&Iqvjcyi Ges (Nationalization) Order-1972, President’s Order No-26 of
w` wcÖwgqvi e¨vsK wjwg‡UW A½xf~ZKiY Ges RvZxqKi‡Yi gva¨‡g †mvbvjx 1972, through the merger and nationalization of 1) The
National Bank of Pakistan 2) The Bank of Bhawalpur Ltd.
e¨vsK AvZ¥cÖKvk K‡i| cieZ©x‡Z †Kv¤úvbx AvBb, 1994 Abyhvqx 3 Ryb, and 3) The Premier Bank Ltd. Later on, it was registered
2007 Zvwi‡L R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m G wbeÜ‡bi gva¨‡g GwU as a Public Limited Company under the Company Act,
cvewjK wjwg‡UW †Kv¤úvbx wn‡m‡e ¯^vaxbfv‡e Kvh©µg ïiæ K‡i| evsjv‡`k 1994 on 3 June 2007, with the Registrar of Joint Stock
e¨vsK KZ…©K e¨vsK †Kv¤úvbx AvBb, 1991 Abyhvqx 5 Ryb, 2007 Zvwi‡L Companies And Firms to make it operationally independent.
†mvbvjx e¨vsK wjwg‡UW ‡K e¨vswKs jvB‡mÝ cÖ`vb Kiv nq| MYcÖRvZš¿x Bangladesh Bank issued the Banking License in favour of
evsjv‡`k miKvi Ges †mvbvjx e¨vsK wjwg‡UW Gi g‡a¨ m¤úvw`Z Pzw³ the bank on 5 June 2007 under the Bank Company Act,
1991. Sonali Bank Limited took over the business of Sonali
†gvZv‡eK 15 b‡f¤î, 2007 mv‡j GKwU Vendor`s Agreement ¯^vÿ‡ii
Bank on 15 November 2007 with all assets, liabilities,
gva¨‡g †mvbvjx e¨vs‡Ki mKj m¤ú`, `vq, myweav, AwaKvi, ÿgZv, KZ©„Z¡, benefits, rights, powers, authorities, privileges, borrowing
we‡klvwaKvi, avi Ges `vwqZ¡ AwaMÖn‡Yi gva¨‡g †mvbvjx e¨vsK wjwg‡UW and responsibility as going concern under a Vendor`s
GKwU Pjgvb mZ¡v (Going Concern) wn‡m‡e cÖwZôv cvq| †`‡ki Af¨šÍ‡i Agreement signed between the Government of the People’s
i‡q‡Q 1224wU Ges †`‡ki evB‡i 2wU kvLvmn †gvU 1226wU kvLv wb‡q Republic of Bangladesh and Sonali Bank Limited. It is the
eZ©gv‡b GwU †`‡ki me©e„nr ivóªvqZ¡ evwYwR¨K e¨vsK| GQvov 46wU wcÖwÝcvj state-owned and largest commercial bank in the country.
It has 1224 local branches, 2 foreign branches, 46 Principle
Awdm, 16wU wiwRIbvj Awdm, 11wU wRGg Awdm, kvLv mg~‡ni g‡a¨ 32wU
Offices, 16 Regional Offices, 11 GM Offices, 32 Corporate
K‡c©v‡iU kvLv, 48wU GwW kvLv i‡q‡Q| †mvbvjx e¨vsK wjwg‡UW Gi 2wU Branches (including Local Office), 48 AD branches, and two
mvewmwWqvix cÖwZôvb i‡q‡Q-(1) †mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW subsidiaries named Sonali Exchange Co. Inc. (SECI), USA
(SECI), BDGmG Ges (2) †mvbvjx Bb‡f÷‡g›U wjwg‡UW (SIL), evsjv‡`k| and Sonali Investment Limited (SIL) in Bangladesh, and two
Annual Report 2020

YEAR OF EXCELLENCE
GQvov, `yÕwU G‡mvwm‡qUmI i‡q‡Q (1) †mvbvjx e¨vsK (BD‡K) wjwg‡UW Ges associates named Sonali Bank (UK) Ltd. and Sonali Intellect
(2) †mvbvjx Bb‡U‡j± wjwg‡UW| G e¨vs‡Ki wbewÜZ Awdm wVKvbv n‡jv Limited. The address of the registered office of the Bank is
35-42, 44 gwZwSj, evwYwR¨K GjvKv, XvKv, evsjv‡`k| e¨vs‡Ki cwiPvjbv 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh.
cl©` 09(bq) m`m¨ wewkó hvi cÖavb n‡jb GKRb †Pqvig¨vb| cwiPvjbv Presently the Board of Directors of the Bank consists of
09 (nine) members headed by a Chairman, who have the
cl©‡ì m`m¨MY Kg©`ÿZv I Áv‡bi Av‡jv‡K weKwkZ miKvwi Ges †emiKvwi experiences, background, and education befitting their
Lv‡Zi cÖwZwbwa| position.
evsjv‡`‡ki e¨vswKs †m±‡i †mvbvjx e¨vsK wjwg‡UW Sonali Bank Limited- In the Banking Sector
of Bangladesh
evsjv‡`‡ki Afz¨`‡qi ci n‡Z †`‡ki A_©bxwZ Ges e¨vswKs †m±‡ii weKvk After the emergence of Bangladesh, the role of Sonali Bank
Gi †ÿ‡Î †mvbvjx e¨vs‡Ki fzwgKv Ab¯^xKvh©| ZrKvjxb evsjv‡`k cybM©V‡b Limited has been crucial in the advancement of the economy
and in flourishing banking business. Since the liberation war,
Ges cieZ©x‡Z wk‡ívbœqbmn †`‡ki mvwe©K Dbœqbg~jK Kg©KvÛ Z_v eëmv Sonali Bank has been working relentlessly to implement
evwYR¨ I Avg`vbx ißvbx cÖmv‡i †mvbvjx e¨vsK miKv‡ii mn‡hvMx wn‡m‡e KvR government policies in rebuilding Bangladesh in addition to
K‡i Avm‡Q| 2020 mvj †k‡l †`‡ki e¨vswKs †m±‡ii †gvU 12,912,215.00 expansion of business, establishment of industries, import-
export etc. At the end of 2020, the amount of deposits and
wgwjqb UvKv AvgvbZ Ges 10,015,930.00 wgwjqb UvKv FY I AwMÖg Gi loans & advances of Sonali Bank Limited are Tk. 1,258,786.26
wecix‡Z †mvbvjx e¨vs‡Ki AvgvbZ Ges FY I AwMÖ‡gi cwigvY h_vµ‡g million and Tk. 586,232.72 million respectively, which are
1,258,786.26 wgwjqb Ges 586,232.72 wgwjqb UvKv, kZKiv wn‡m‡e 9.75% of total deposits of Tk. 12,912,215.00 million and 5.86%
of total loans & advances of Tk. 10,015,930.00 million of
h_vµ‡g 9.75% I 5.86%| 2020 mv‡j †mvbvjx e¨vsK ‡kÖYxK…Z FY n‡Z
the banking sector of Bangladesh. During 2020, Sonali Bank
10,501.50 wgwjqb UvKv Av`vq K‡i| †`‡ki †gvU ê‡`wkK †iwgU¨vÝ recovered Tk. 10,501.50 million from classified loans. As foe
21,741.83 wgwjqb BDGm Wjv‡ii wecix‡Z †mvbvjx e¨vsK wjwg‡UW Gi inward foreign remittance, Sonali Bank’s contribution is US$
Ae`vb 1,436.72 wgwjqb BDGm Wjvi ev 6.61%| D‡jøwLZ eQ‡i †mvbvjx 1,436.72 million which is 6.61% of total foreign remittance
of US$ 21,741.83 million of Bangladesh. Moreover, the Bank
e¨vsK AwMÖg Ki, Dr‡m Ki Ges f¨vU eve` †gvU 122,271.00 wgwjqb UvKv paid a total of Tk. 122,271.00 million in 2020 as advance tax,
miKvwi †KvlvMv‡i Rgv K‡i‡Q| tax at source and VAT to 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 cÖwZôvb Sonali Bank Limited has two 100 percent owned subsidiaries
named Sonali Exchange Co. Inc. (SECI) and Sonali
i‡q‡Q- (1) †mvbvjx G·‡PÄ †Kv¤úvwb BbK‡c©v‡i‡UW (SECI) Ges (2)
Investment Limited (SIL).
†mvbvjx Bb‡f÷‡g›U wjwg‡UW (SIL)|
†mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) Sonali Exchange Co. Inc. (SECI)
A subsidiary company, incorporated on 4 April 1994
wbDBq‡K©i †÷U wWcvU©‡g‡›Ui AvBb ‡gvZv‡eK 4 GwcÖj, 1994 Zvwi‡L †mvbvjx under the laws of the state of New York, commenced its
G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) GKwU †Kv¤úvbxiƒ‡c cÖwZwôZ nq| operations as an International Money Remitter from 12
GwU 12 wW‡m¤î 1994 ZvwiL †_‡K AvšÍR©vwZKfv‡e A_© †cÖiYKvix cÖwZôvb December 1994. At present, Sonali Exchange Co. Inc. has
wn‡m‡e Kvh©µg ïiæ K‡i| eZ©gv‡b hy³iv‡óªi 5wU A½iv‡R¨ Gi 10wU kvLv 10 branches in 5 states of the USA. The paid up capital of
i‡q‡Q| Gi cwi‡kvwaZ g~jab 9,50,000 gvwK©b Wjvi| 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¨ †mvbvjx evsK the capital market, SBL has established a wholly-owned
wjwg‡UW m¤ú~Y© wbR¯^ A_©vq‡b 2010 mv‡j Ò†mvbvjx Bb‡f÷‡g›U wjwg‡UWÕÕ subsidiary named ‘Sonali Investment Limited’ in 2010. Sonali
(SIL) bv‡g GKwU mvewmwWqvix †Kv¤úvbx cÖwZôv K‡i| 20 GwcÖj 2010 mv‡j Investment Limited was registered under the Company Act
1994 as a public company limited by shares on 20 April 2010
†Kv¤úvbx AvBb, 1994 Abymv‡i †mvbvjx Bb‡f÷‡g›U wjwg‡UW wbewÜZ nq
and commenced its operations from 22 April 2010 after the
Ges R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m Gi wbKU wbewÜZ nIqvi ci 22 company was registered with the Registrar of Joint Stock
GwcÖj 2010 ZvwiL †_‡K Gi Kvh©µg ïiæ K‡i| weGmBwm †_‡K 05 AvMó Companies and Firms. SIL received a merchant banking
2010 Zvwi‡L SIL gv‡P©›U e¨vswKs Gi jvB‡mÝ AR©b K‡i| evsjv‡`k e¨vs‡Ki license from BSEC on 5 August 2010. In accordance with
the guidelines of Bangladesh Bank, SBL has converted its
bxwZgvjvi Av‡jv‡K †mvbvjx e¨vsK wjwg‡UW Zvi gv‡P©›U e¨vswKs BDwbU‡K merchant banking unit into a separate subsidiary company
GKwU c„_K mvewmwWqvix †Kv¤úvbx wn‡m‡e †mvbvjx Bb‡f÷‡g›U wjwg‡UW under the name ‘Sonali Investment Limited (SIL)’ with the
G iƒcvšÍi K‡i| Gi jÿ¨ wQj gv‡P©›U e¨vsK wn‡m‡e c~Y© Kvh©µg cwiPvjbv objective of undertaking full-fledged merchant banking
operations, namely issue management and underwriting
Kiv hvi g‡a¨ Bmy¨ g¨v‡bR‡g›U,AvÛvi ivBwUs Ges ‡cvU©‡dvwjI g¨v‡bR‡g›U
and portfolio management. The authorized capital of the
Ab¨Zg| Gi Aby‡gvw`Z g~ja‡bi cwigvY n‡jv 5,000 wgwjqb UvKv Ges subsidiary is Tk. 5,000 million and paid up capital is Tk.
cwi‡kvwaZ g~ja‡bi cwigvY n‡jv 2,000 wgwjqb UvKv| eZ©gv‡b SIL Gi 2,000 million. At present, SIL is operating through 04 (four)
XvKvq 4wU kvLv i‡q‡Q| branches in Dhaka.
64
DIRECTORS' REPORT
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
A_© †cÖiY I Ab¨vb¨ Avw_©K †mev cÖ`v‡bi jÿ¨ wb‡q †mvbvjx †UªW GÛ wdb¨vÝ With a view to remitting money and providing other
(BD‡K) wjwg‡UW bv‡g GKwU †Kv¤úvbx 30 Ryb 1999 mv‡j cÖwZwôZ financial services to its customers, a company under the
nq| GwU cÖwZwôZ nq BD‡K †Kv¤úvbxR AvBb 1985 Abyhvqx| cieZ©x‡Z name and style Sonali Trade and Finance (UK) Limited
was incorporated on 30 June 1999 as an associate under
7 wW‡m¤î 2001 ZvwiL †_‡K wdbvwÝqvj mvwf©‡mm A‡_vwiwU, BD‡K KZ©„K the UK Companies Act 1985. Subsequently the company
†Kv¤úvbxwU‡K e¨vswKs Kvh©µg Kivi Aby‡gv`b †`q| Gi bvg cwieZ©b K‡i was allowed to commence its function as a bank from 7
December 2001 by the financial services authority of the
cieZ©x‡Z †mvbvjx e¨vsK (BD‡K) wjwg‡UW Kiv nq| cybM©V‡bi gva¨‡g
UK. The name was changed later on as Sonali Bank (UK)
MYcÖRvZš¿x evsjv‡`k miKvi Gi gvwjKvbvq 51% †kqvi Ges †mvbvjx e¨vsK Ltd. and restructured the ownership of the company with
wjwg‡UW gvwjKvbvq 49% †kqvi i‡q‡Q| †mvbvjx e¨vsK (BD‡K) wjwg‡UW 51% share capital owned by the Government of the People’s
Republic of Bangladesh and remaining 49% by Sonali Bank
Gi cwi‡kvwaZ g~ja‡bi cwigvY 61.46 wgwjqb weªwUk cvDÛ| GB †Kv¤úvbxi
Limited. The paid up capital of Sonali Bank (UK) is GBP 61.46
g~j KvR n‡jv †mvbvjx e¨vsK wjwg‡UW Ges evsjv‡`kx Ab¨vb¨ e¨vs‡Ki Gjwm million. The main functions of the associate are to advise,
we‡ji GWfvBwRs, †b‡Mvwk‡qU, Kbdvg© Ges wWmKvD›U myweav cÖ`vb Kiv| negotiate, confirm L/Cs originating from SBL and other
Bangladeshi banks and provide discount facilities against
GwU †mvbvjx e¨vsKmn Ab¨vb¨ evsjv‡`kx e¨vs‡Ki ê‡`wkK †iwgU¨vÝ eëmv
those L/Cs. The company also handles remittance business
cwiPvjbvq mnvqZv K‡i _v‡K| for SBL and other banks of Bangladesh.
†mvbvjx Bb‡U‡j± wjwg‡UW Sonali Intellect Limited

†mvbvjx Bb‡U‡j± wjwg‡UW †Kv¤úvbx AvBb, 1994 Abymv‡i 25 Rvbyqvix 2012 Sonali Intellect Limited was incorporated in Bangladesh
as a private limited company on 25 January 2012 under
ZvwiL †_‡K evsjv‡`‡k cÖvB‡fU wjwg‡UW †Kv¤úvbx wn‡m‡e ZvwjKvfy³ nq|
the Companies Act, 1994. The company commenced its
†Kv¤úvbxwU 1 †deªæqvix 2012 †_‡K eëmvwqK Kvh©µg kyiæ K‡i| Gi 51% business operations on 1 February 2012. The 51% share
†kqv‡ii gvwjKvbv aviY K‡i †cvjvwik wdbvwÝqvj †UK‡bvjwRm wjwg‡UW, capital of the company is owned by Polaris Financial
fviZ I 35% †kqv‡ii gvwjKvbv †mvbvjx e¨vsK wjwg‡UW Ges Aewkó 10% Technologies Ltd. India, 35% by Sonali Bank Limited and the
remaining 10% & 4% by Bangladesh Commerce Bank Ltd.
I 4% †kqv‡ii gvwjKvbv h_vµ‡g evsjv‡`k Kgvm© e¨vsK wjwg‡UW Ges cvš’ And Pantho Soft Ltd. respectively. The principal activities
mdU wjwg‡UW Gi| GB †Kv¤úvbxi cÖavb KvR n‡jv evsjv‡`‡ki e¨vsKmg~‡n of the company are to customize, enhance, modify and
Bb‡U‡j± †Kvi e¨vswKs mwjDkb (CBS) eënvi Dc‡hvMx, DbœZ, m¤úv`b implement intellect Core Banking Solution (CBS) 10.0
software in banks in Bangladesh.
Kiv Ges ev¯Íevqb Kiv|
†kqvi †nvìvm© BK¨zBwU Shareholders’ Equity
31 wW‡m¤î 2020 ZvwiL wfwËK e¨vs‡Ki †kqvi †nvìvm© BK¨zBwU ùvwo‡q‡Q The shareholders’ equity of the Bank stood at Tk. 85,615.61
85,615.61 wgwjqb UvKv hv 31 wW‡m¤î 2019 †Z wQj 68,192.64 wgwjqb million as on 31 December 2020 which was Tk. 68,192.64
UvKv| million in 2019.
wb¤œewY©Z ZvwiL ch©šÍ Ae¯’v Position as of
Sl. Shareholder's
µt (Tk. in million) Changes
†kqvi †nvìvm© BK¨zBwU (wgwjqb UvKvq) cwieZ©b (%) No. Equity
bs 2020 2019 %
2020 2019
1. Paid-Up Capital 45300.00 45300.00 -
1 cwi‡kvwaZ g~jab 45300.00 45300.00 -
2. Statutory reserve 13469.00 12406.20 8.62
2 mswewae× mwÂwZ 13469.00 12400.57 8.62 Other reserve and
Ab¨vb¨ mwÂwZ Ges 36494.17 22240.56 64.09 3. 36494.17 22240.56 64.09
Revaluation reserve
3
cybtg~jv¨vqb mwÂwZ 4. Retained earnings (9647.58) (11748.50) 17.80
4 wi‡UBbW Avwb©sm (9647.58) (11748.50) 17.80
Total Shareholder's Equity 85615.61 68200.62 25.55
†gvU †kqvi‡nvìvi BKz¨BwU 85615.61 68192.64 25.55
b¨vkbvj †bUIqvK© National Network

SBL has a network of branches throughout the country
miKvwi bxwZ ev¯Íevqb Ges †`‡ki A_©‰bwZK Dbœq‡bi Rb¨ †mvbvjx e¨vsK complying with the government policy and for the economic
wjwg‡UW †`ke¨vcx Zvi kvLv †bUIqvK© we¯Í…Z K‡i‡Q| †fŠMwjKfv‡e †`‡ki development of the country. All important locations,
geographically and from governmental administrative
mKj ¸iæZ¡c~Y© ¯’vbmn †`‡ki mKj Dc‡Rjv, `~ieZ©x MÖvgxY Rbc‡` †mvbvjx point of view including all Upazillas and remote rural areas
e¨vs‡Ki kvLv †bUIqvK© we¯Í„Z| `yÕwU ê‡`wkK kvLvmn 2020 mv‡j †mvbvjx of the country have been brought under the network
coverage of the Bank. Including two overseas branches,
e¨vs‡Ki †gvU kvLvi msL¨v 1,226wU hvi g‡a¨ †`‡ki Af¨šÍ‡i MÖvgxY Rbc‡` the total number of branches was 1,226 in 2020 of which
701 branches are located in rural areas and 525 branches
701wU Ges 525wU kvLv kni AÂ‡j Aew¯’Z| cÖavb Kvh©vjqmn 74wU cªkvmwbK
in urban areas. The overall functions of the branches are
Kvh©vj‡qi gva¨‡g kvLvmg~‡ni mvwe©K Kvh©µg Z`viwK Ges cwiPvjbv Kiv nq| supervised and monitored by 74 administrative offices. The
Annual Report 2020

YEAR OF EXCELLENCE
cÖavb Kvh©vj‡qi Aax‡b 47 wU wefvMmn, XvKv-1, XvKv-2, PÆMÖvg, Lyjbv, administrative structure comprises 45 divisions under Head
Office in Dhaka; 11 General Managers Offices Dhaka-1,
ivRkvnx, ewikvj, wm‡jU, iscyi, dwi`cyi, gqgbwmsn I Kzwgjøvq 11wU wRGg
Dhaka-2, Chittagong, Khulna, Rajshahi, Barisal, Sylhet,
Awdm, 46wU wcÖwÝcvj Awdm, 16wU wiwRIbvj Awdm Gi mgš^‡q cÖkvmwbK Rangpur, Faridpur, Mymensingh and Comilla; 46 Principal
Offices and 16 Regional Offices located at different parts of
KvVv‡gv MwVZ| the country.
AvšÍR©vwZK †bUIqvK© International Network

AvšÍR©vwZK evwb‡Rï †c‡g›U †m‡Uj‡g›Umn cÖevmx evsjv‡`kx‡ì ‡cÖwiZ SBL has taken various initiatives to provide direct banking
services to and channel foreign remittance from the
d‡ib †iwgU¨vÝ mviv †`‡k Zv‡ì DcKvi‡fvMx‡ì wbKU `ªæZZi mg‡q expatriate Bangladeshis spread across the globe. The Bank’s
†cÖi‡Yi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW wewfbœ ai‡Yi D‡`¨vM MÖnY K‡i‡Q| associate Sonali Bank (UK) Limited and its 02 branches
e¨vs‡Ki mn‡hvMx cÖwZôvb †mvbvjx e¨vsK (BD‡K) wjwg‡UW Zvi `yBwU kvLv facilitate foreign trade and remittance business. Its subsidiary
in the USA, Sonali Exchange Company Incorporated (SECI)
wb‡q hy³iv‡R¨ ê‡`wkK evwY‡Rï mv‡_ mv‡_ ê‡`wkK gy`ªv †cÖi‡Y mnvqZv
and its 02(two) branches and 08(eight) booths channel
K‡i Avm‡Q| hy³iv‡óª †mvbvjx G·‡PÄ †Kv¤úvbx BbK‡c©v‡i‡UW (SECI) remittance to the beneficiaries in the home country safely
02wU kvLv I 08wU ey_ wb‡q ê‡`wkK gy`ªv wbivc‡` Ges `ªæZZg mg‡qi and swiftly. SBL also has Taka Drawing Arrangement (TDA)
g‡a¨ †cÖi‡Y ¸iæZ¡cyY© f~wgKv cvjb K‡i Avm‡Q| Ab¨vb¨ e¨vsK Ges G·‡PÄ with other banks and exchanges so that people living abroad
can send their money through proper banking channels
nvD‡mi mv‡_ †mvbvjx e¨vs‡Ki Taka Drawing Arrangement (TDA) to the beneficiaries in the country. Currently, there are
Av‡Q hv‡Z K‡i cÖevmx evsjv‡`kxiv Zv‡ì †cÖwiZ A_© e¨vswKs P¨v‡b‡ji 74 Taka Drawing Agency (TDA) with Banks and exchange
gva¨‡g †`‡k Zv‡ì DcKvi‡fvMx‡ì wbKU †cÖiY Ki‡Z cv‡ib| eZ©gv‡b houses scattered across the world. Besides, the Bank has
extended customer services by establishing correspondent
we‡k¦i 74wU e¨vsK/G·‡PÄ nvD‡Ri mv‡_ Taka Drawing Arrangement relationships with a total of 684 branches/ subsidiaries
(TDA) Av‡Q| GQvov, K‡imc‡Û›U m¤ú‡K©i gva¨‡g we‡k¦i 94wU †`‡ki located in 94 countries in the world. The correspondent
684wU kvLv/mn‡hvMx ms¯’vi Øviv ê‡`wkK gy`ªv †`‡k †cÖi‡Yi eë¯’v Av‡Q| relationship has significantly increased the Bank’s foreign
exchange and trade business simultaneously. A tabular
GB m¤ú‡K©i gva¨‡g e¨vs‡Ki ê‡`wkK gy`ªv Ges ê‡`wkK evwYR¨ e„w× cv‡”Q|
presentation of foreign correspondents and branches is
wb‡¤œ †Uwe‡ji gva¨‡g d‡ib K‡imc‡Û›U Ges kvLvi Z_¨ Dc¯’vcb Kiv n‡jvt given below:
bs ‡`‡ki bvg kvLv G·‡PÄ nvDm wUwWG AviGgG Name of the Exchange
Sl. Branch TDA RMA
1. wm½vcyi 4 26 country House
2. hy³ivR¨ 2 4 26 1. Singapore 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¨ 7 8 461 12. OTHERS 7 8 461
†gvU 4 16 74 684 TOTAL 4 16 74 684
Avw_©K AšÍf©yw³KiY Financial Inclusion

miKv‡ii Avw_©K AšÍf©yw³KiY cÖKí Z¡ivwš^Z Kivi j‡ÿ¨ †mvbvjx e¨vsK With a view to assisting the government in accelerating the
financial inclusion program, SBL is working relentlessly to
wjwg‡UW Zvi wekvj †bUIqv‡K©i gva¨‡g †`‡ki kni I MÖvgxY Rbc‡ì bring poor and unbanked people under the coverage of
the banking system with its enormous branch network in
mvaviY, Mwie Ges e¨vswKs eë¯’vi evB‡ii RbMb‡K e¨vswKs †mevi AvIZvq rural and urban areas. In SBL, the total number of accounts
Avbq‡bi Rb¨ wbijmfv‡e KvR K‡i hv‡”Q| 2020 mv‡j e¨vs‡K Avw_©K under the financial inclusion program stood at 5,141,755
in 2020. Among them, the number of farmer’s accounts
AšÍf©yw³KiY cÖK‡íi AvIZvq †gvU wnmve msL¨v ùvwo‡q‡Q 51,41,755 wU| reached 1,590,734 at the end of 31 December, 2020. The
Gi g‡a¨ gvÎ 10 UvKv Rgv`v‡bi gva¨‡g †Lvjv K…lK‡ì wnmve msL¨v n‡jv farmers have been encouraged to open accounts with an
initial deposit of only Tk. 10.00. As of 31 December 2020,
15,90,734 wU| 31 wW‡m¤î 2020 ZvwiL wfwËK gyw³‡hv×v wnmve, ¯‹zj QvÎ/ the number of freedom fighters accounts, school student’s
accounts and accounts under social safety net programs
66
DIRECTORS' REPORT
QvÎx‡ì wnmve Ges mvgvwRK wbivcËv †e÷bxi AvIZvq wnmve msL¨v h_vµ‡g were 243,011, 112,106 and 2,885,656 respectively. A large
segment of the population, particularly the rural poor
2,43,011 wU; 1,12,106 wU Ges 28,85,656 wU| †`‡ki RbM‡Yi GKwU
people, poor farmers, women entrepreneurs and garment
e„nr Ask we‡kl K‡i MÖvgxY Mwie RbMY, Mwie K…lK, bvix D‡`¨v³v, †cvkvK workers have got the access to banking services through
SBL. Moreover, various innovative deposit products with
kÖwgK G e¨vs‡Ki gva¨‡g e¨vswKs †mevi my‡hvM cv‡”Q| AwaKš‘, myweav ewÂZ lucrative interest rates within the ceiling determined by
RbM‡Yi GKwU weivU eo As‡ki Rb¨ AvKl©Yxq my‡ì AvgvbZ ‡cÖvWv±m& Ges Bangladesh Bank and credit facilities with attractive rates
have been successfully launched to attract deprived
FY ¯‹xg Pvjy Kiv n‡q‡Q hv Financial Inclusion cÖwZ‡e`‡b wek`fv‡e segments of the population. Details have been presented in
the “Report on Financial Inclusion”.
Zz‡j aiv n‡q‡Q|
Information Technology and Online
Z_¨ cÖhyw³ Ges AbjvBb e¨vswKs †mevmg~n Banking Services
†mvbvjx e¨vsK wjwg‡UW mvd‡jï mv‡_ eZ©gv‡b evsjv‡`‡ki mePvB‡Z eo Sonali Bank Limited has successfully turned itself as the
largest online Bank in Bangladesh. Since the inauguration
AbjvBb e¨vs‡K iƒcvšÍwiZ n‡q‡Q| 1989 mv‡j A‡Uv‡gk‡bi hvÎv ïiæi ci of the journey towards automation in 1989, a total of 1224
†_‡K G ch©šÍ e¨vs‡Ki 1224 wU ¯’vbxq kvLvi me¸‡jvB Bb‡U‡j± CBS fzw³i domestic branches and 2 foreign branches out of 1226 are
gva¨‡g e¨vs‡Ki MÖvnK‡ì wWwRUvj c×wZ‡Z e¨vswKs †mev cÖ`vb Ki‡Q| rendering digitized banking services through Intellect CBS
software to the clients of the Bank. Moreover, a mobile
GQvov m¤úªwZ MªvnK‡ì myweavi K_v we‡ePbv K‡i ÔÔ†mvbvjx B-Iqv‡jUÕÕ,
app ’’Sonali eWallet’’, ’’Sonali eSheba’’, and transactions
ÔÔ†mvbvjx B-†mevÕÕ, ÔÔweKvkÕÕ Gi gva¨‡g †jb‡`b Pvjy Kiv n‡q‡Q| Av‡iv Av‡Q with ’’bKash’’ have been introduced considering customers’
GBPAviGgGm mdUIq¨vi, AviGgGm cøvm, GbwcGmwe, AviwUwRGm, e¨vP, need and satisfaction. The Bank also introduced HRMS
weBGdwUGb, Ab-jvBb miKvwi †jb‡`b, U¨v· mdUIq¨vi, †mvbvjx †mev, software, RMS Plus, NPSB, RTGS, BACH, BEFTN, Online
Govt. Transaction, Tax Soft., Sonali Sheba, Pension paying
†cbkb cÖ`vb mdUIq¨vi, wmwmwUwf cÖwZ¯’vcb BZ¨vw`| eZ©gv‡b mKj kvLvq Software, CCTV installation etc. At present, 1224 CBS
CBS Gi gva¨‡g MÖvnK‡ì SMS e¨vswKs myweav cÖ`vb Kiv n‡”Q| wbewÜZ branches have SMS banking service. Registered customers
MÖvnKMY Zv‡ì wnmv‡ei †jb‡`b Ges e¨vjvÝ msµvšÍ Z_¨ †gvevB‡j SMS can get their account transaction and balance through SMS.
These technology based solutions have placed our Bank in
Gi gva¨‡g Rvb‡Z cv‡ib| G mKj cÖhyw³ wbf©iZv e¨vsKwU‡K e¨vswKs Lv‡Z
a strong position in terms of technological progression in
cÖhyw³MZ DbœwZi myL¨vwZi Avm‡b AwawôZ K‡i‡Q| Z_¨cÖhyw³ ms‡hvR‡b the banking industry. Regarding IT inclusion, achievements
†mvbvjx e¨vsK wjwg‡UW Gi AR©b wb¤œiƒct of SBL are as follows:
1. †mvbvjx e¨vsK wjwg‡UW ¯’vbxq mKj kvLvq Bb‡U‡j± CBS AšÍf©zw³i 1. Sonali Bank Limited has become the largest online Bank in
gva¨‡g Ab-jvBb Kvh©µg Pvjy K‡i evsjv‡`‡ki mePvB‡Z eo AbjvBb e¨vs‡K Bangladesh by rendering online services through installing
iƒcvšÍwiZ n‡q‡Q| intellect CBS software in all of its domestic branches.
2. †mvbvjx e¨vsK wjwg‡UW G †`‡k me©cÖ_g N‡i e‡m AbjvB‡b e¨vs‡Ki 2. Sonali Bank Limited launched its own mobile app “Sonali
eSheba’’ for providing cashless banking as well as online
†h‡Kvb kvLvq wnmve †Lvjv Ges K¨vk‡jm e¨vswKs myweav cÖ`vbmn Ab¨vb¨
account opening facility at any branch of this bank for the
e¨vswKs †mev cÖ`v‡bi wbwgË wbR¯^ †gvevBj G¨vc ÔÔ†mvbvjx B-‡mevÕÕ Pvjy first time in the country.
K‡i‡Q|
3. The Bank’s own “Online Management System” has been
3. e¨vs‡Ki wbRm¦ AbjvBb eë¯’vcbvq mKj kvLvi gva¨‡g mÂqcÎ wewµ I launched for selling and encashment of savings certificates
bM`vqb Kvh©µg Pvjy Kiv n‡q‡Q| through all branches.
4. e¨vs‡Ki 105wU GwUGg ey‡_I wmwmwUwf wm‡÷g ¯’vcb Kiv n‡q‡Q| 4. The Close Circuit Television (CCTV) system has also
been installed in 105 ATM Booths.
5. 2012 mv‡j Pvjy nevi ci †_‡K GbweAvi †mvbvjx e¨vsK B-†cvU©v‡ji 5. Under the system of the NBR, Sonali Bank e-Payment
gva¨‡g U¨v·, f¨vU, Kv÷gm wWDwU Ab-jvB‡bi gva¨‡g Rgv Kiv n‡”Q| Portal, Tax, VAT and Customs duty are being paid online .
ZvQvov 15 †deªæqvwi 2015 †_‡K GB †cvU©v‡ji gva¨‡g RgvK…Z Pvjv‡bi Moreover, since 15 February 2015, printed challan copies,
made by this portal, are received at bank counters through
wcÖ‡›UW Kwc e¨vsK KvD›Uv‡i MÖnY Kiv n‡”Q| ePay Bank Counter.
6. miKvwi †KvlvMvi msµvšÍ mKj Kvh©µg †Rjv ch©v‡q e¨vs‡Ki 58wU ‡Pó 6. Reporting activities of receipt and payment of Govt.
kvLvq Ab-jvBb mdUIq¨vi Gi gva¨‡g m¤úvw`Z n‡”Q| chests are being rendered through online software in 58
chest branches at district level.
7. miKvwi †jb‡`b wm‡÷g (GTS) bvgxq B›Uvi‡bU wfwËK bZzb PvjyK…Z 7.”Government Transaction System” GTS software/program
GKwU mdUIq¨vi Gi gva¨‡g e¨vs‡Ki 643wU kvLvq miKvwi mKj †jb‡`b has been introduced in 643 Treasury branches of the Bank
m¤úbœ Kiv n‡”Q| to capture all government transactions.
8. ¯^”QZv I Revew`wnZv wbwðZ Kivi Rb¨ m¤úªwZ e¨vs‡K ÔAbjvBb Pvjvb 8. To ensure transparency and accountability, the Bank has
†fwiwd‡KkbÕ Pvjy Kiv n‡q‡Q| recently introduced “Online Challan Verification’’.
Annual Report 2020

YEAR OF EXCELLENCE
9. †iwgU¨vÝ g¨v‡bR‡g›U wm‡÷g (RMSplus) e¨vs‡Ki wbR¯^ D™¢vweZ GKwU 9. A web based software, developed in-house named
I‡qe mvBU wfwËK mdUIq¨vi| GwU eZ©gv‡b †`kxq 1224wU kvLvq ‰e‡`wkK “Remittance Management SystemPlus (RMSPlus)”, has
I †`kxq †iwgU¨vÝ MÖnY/cÖ`v‡bi †iwgU¨vÝ Avbq‡bi gva¨g wn‡m‡e eëüZ been introduced in 1224 branches for receiving foreign
remittance and receiving and making payment of Inland/
n‡”Q| Local remittance.
10. e¨vs‡Ki eëmv m¤úªmvibmn AbjvB‡bi gva¨‡g N‡i e‡m wewfbœ wkÿv 10. With a view to expansion of the bank’s business and
collecting salaries/fees/charges from different educational
cÖwZôv‡bi †eZb/wd/PvR© Av`vqKi‡Yi j‡ÿ¨ e¨vs‡Ki wbR¯^ mdUIq¨vi institutions, the Bank introduced its own software “Sonali
Payment Gateway” through which students/parents can
eënvi K‡i wkÿv_©xiv wd/PvR© cwi‡kva Ki‡Z mÿg n‡”Qb|
pay their fees/charges from home by transferring funds.
11. e¨vs‡Ki mKj kvLvq mdjfv‡e evsjv‡`k B‡jKUªwbK dvÛ UªvÝdvi 11. The Bank has successfully implemented Bangladesh
Electronic Fund Transfer Network (BEFTN) system in all the
†bUIqvK© (BEFTN) wm‡÷g Pvjy n‡q‡Q| branches.
12. e¨vs‡Ki XvKv kn‡ii 105wU kvLvq 09 Rvbyqvwi 2014 ZvwiL †_‡K 12. ‘Sonali Bank Clearing System (SBCS)’ has been deployed
AvšÍtkvLv wK¬qvwis Gi Rb¨ Ò†mvbvjx e¨vsK wbKvk c×wZ (SBCS)Ó cÖewZ©Z in 105 branches of Dhaka city for the automated inter
n‡q‡Q| branch clearing since 9 January 2014.
13. eZ©gv‡b †mvbvjx e¨vsK wjwg‡UW Gi 48wU Aby‡gvw`Z wWjvi kvLvi g‡a¨ 13. Trade finance module has already been incorporated in
43wU kvLv CBS G ms‡hvRbK…Z †UªW dvBb¨vÝ gwWDj Gi gva¨‡g eëmvwqK CBS and currently 43 out of 48 Authorised Dealer Branches
Kvh©µg cwiPvjbv Ki‡Q| of SBL are operating their business using this module.
14. Considering the easy availability and use of cell phones,
14. †mj †dv‡bi mnRjf¨Zv Ges m¤§vwbZ MÖvnK‡ì cwieZ©bkxj Avw_©K the bank has introduced SMS banking service to cater to the
cÖ‡qvRbxqZv we‡ePbvq wb‡q e¨vs‡K GmGgGm e¨vswKs †mev Pvjy Kiv n‡q‡Q| ever evolving financial needs of our esteemed customers.
†mvbvjx B-†mev I †mvbvjx B-Iqv‡jU Sonali eSheba and Sonali eWallet
2020 mv‡j †KvwfW 19 gnvgvwi PjvKvjxb mg‡q †mvbvjx e¨vsK wjwg‡UW During the COVID 19 pandemic in 2020, for the welfare
†`k I RbM‡Yi †jb‡`‡bi myweav‡_© ÔÔ†mvbvjx B-†mevÕÕ Pvjy K‡i hvi gva¨‡g of the country and the mass people Sonali Bank Limited
MÖvnKiv Lye mn‡R N‡i e‡mB GKvD›U Lyj‡Z I cwiPvjbv Ki‡Z cv‡i| GiB introduced ’’Sonali eSheba’’ through which the clients can
open accounts even from their home. Continuously the
avivevwnKZvq cieZ©x‡Z ÔÔ†mvbvjx B-Iqv‡jUÕÕ Pvjy Kiv nq| Gi gva¨‡g bank introduced ’’Sonali eWallet’’. This wallet helps the
MÖvnKiv †h‡Kvb mgq †h‡Kvb wnmv‡e ‡jb‡`bmn wewfbœ wej, cixÿvi wd, clients to make transactions to any accounts, pay the bills
U¨v· mn wewfbœ †jb‡`b m¤úbœ Ki‡Z cv‡i| and taxes etc.
ûB‡mj ‡eøvqvi Whistle Blower

m¤úªwZ †mvbvjx e¨vsK wjwg‡UW evsjv‡`‡ki e¨vswKs †m±‡i me©cÖ_g ÒûB‡mj Recently Sonali Bank Limited has introduced “Whistle
Blower Policy” for the first time in the banking history of
†eøvqvi cwjwmÓ cÖeZ©b K‡i| e¨vs‡Ki mKj Kg©KvÛ `yb©xwZgy³ ivLv Ges Bangladesh. Certainly it is very important and bold decision
ï×vPvi cÖwZôvq G cwjwm AZ¨šÍ ¸iæZ¡c~Y©, mg‡qvc‡hvMx Ges mvnmx GKwU in implementing the National Integrity and the banking
activities corruptionless. An Ombudsman has important
c`‡ÿc| ûB‡mj †eøvqvi cwjwm ev¯Íevq‡b b¨vqcvj ¸iæZ¡c~Y© f~wgKv cvjb K‡i
role in implementing Whistle Blower Policy. At present, A
_v‡Kb| e¨vs‡K eZ©gv‡b GKRb cwiPvjK b¨vqcv‡ji `vwqZ¡ cvjb Ki‡Qb| Director is in charge of the Ombudsman.
MÖxb wdb¨vÝ Green Finance

Rjevqy cwieZ©b me©‡kl `k‡K SyuwKc~Y© Riæwi wel‡q cwiYZ n‡q‡Q weavq As climate change has become a burning question over the
last decade, SBL management, fully aware of the potential
†mvbvjx e¨vsK eë¯’vcbv G wel‡q mg¨Kfv‡e mRvM i‡q‡Q Ges cÖZ¨vwkZ
risk looming large over mankind, has taken necessary steps
djvd‡ji Rb¨ cÖ‡qvRbxq eë¯’v MÖnY K‡i‡Q| evsjv‡`k e¨vs‡Ki MÖxb e¨vswKs to mitigate the risks involving this issue. Complying with
bxwZgvjv cwicvjb K‡i †mvbvjx e¨vsK cwi‡ek evÜe cÖK‡í A_©vqb Ki‡Q Bangladesh Banks’ green banking policy, SBL is financing
environment friendly projects (such as renewable energy
hv‡Z cwi‡ekMZ fvimvg¨ weivR K‡i| c‡ivÿfv‡e MÖxb dvBb¨v‡Ýi †ÿ‡Î projects, clean water supply projects, waste treatment
e¨vsK Ggb me cÖK‡í A_©vqb Ki‡Q †hLv‡b BwUwc Ges ‡mŠi we`ÿr i‡q‡Q| plant, solid waste disposal plant etc.) to ensure ecological
balance. For indirect Green Finance, the Bank is funding
GQvov e¨vs‡Ki wbR¯^ D‡`¨vM Ò†mvbvjx Av‡jvÓ Gi gva¨‡g cvewjK I cÖvB‡fU such projects which have ETP and Solar Panel. “Sonali
†m±‡ii cÖKímgy‡n mn‡hvwMZv K‡i Avm‡Q| 2020 mvj ch©šÍ †mvbvjx e¨vsK Alo” is the Bank’s initiative intended to align its efforts with
the initiatives being undertaken by both public and private
wjwg‡UW cÖZ¨ÿfv‡e wewfbœ cÖK‡í 53.60 wgwjqb UvKv A_©vqb K‡i‡Q| sectors. Till 2020, Sonali Bank Limited directly financed Tk.
B‡Zvg‡a¨ e¨vs‡Ki ¯’vbxq 1224wU kvLvi me¸‡jv‡ZB Bb‡U‡j± Ò†Kvi e¨vswKs 53.60 million in various projects. Moreover, CBS has been
installed in all 1224 domestic branches of the bank. SBL,
mwjDkb (CBS)Ó ev¯Íevqb K‡i‡Q| †mvbvjx e¨vsK wjwg‡UW cwi‡ekMZ fv‡e
from both ethical and regulatory compliance standpoint,
ÿwZKi cÖKímgy‡n A_©vqb‡K wbiærmvwnZ K‡i| does not finance any environmentally harmful projects.
68
DIRECTORS' REPORT
Bmjvgx e¨vswKs Islamic Banking

mv¤úªwZK mg‡q AwR©Z RbwcÖqZvi Kvi‡Y †mvbvjx e¨vsK wjwg‡UW Bmjvgx SBL is giving priority on Islamic Banking because of its
increasing popularity. Primarily Islami Banking was launched
e¨vswKs‡K †ek ¸iæZ¡ w`‡”Q| 29 Ryb 2010 Zvwi‡L c&ªv_wgKfv‡e 5wU kvLvq
successfully with separate windows in 5 branches on
DB‡Ûvi gva¨‡g Bmjvgx e¨vswKs Kvh©µg Pvjy Kiv nq| cieZ©x‡Z e¨vs‡Ki 29 June 2010. Subsequently, as per decision of Shariah
kixqvn mycvifvBRix KwgwU KZ©„K 64wU †Rjvq Bmjvgx e¨vswKs Qwo‡q †`qvi Supervisory Committee of the Bank, Islami banking window
has been launched in another 6 branches in 2019 and 47
wm×všÍ †gvZv‡eK evsjv‡`k e¨vs‡Ki Aby‡gv`b mv‡c‡ÿ 2019 mv‡j 6wU kvLvq branches in 2020 with the approval of Bangladesh Bank.
Ges 2020 Av‡iv 47wU kvLvq G Kvh©µg Pvjy Kiv nq| B‡Zvg‡a¨ Bmjvgx Recently ’’Islami Banking Division’’ has started its activities
with an aim to efficiently control and monitor the expansion
e¨vswKs wWwfkb Gi Kvh©µg Pvjy Kiv n‡q‡Q| G‡ÿ‡Î h‡_ó AMÖMwZi m¤¢vebv and operations of Islami Banking and facilitate branches
i‡q‡Q| eZ©gv‡b e¨vs‡Ki 58wU kvLvq Bmjvgx e¨vswKs Kvh©µg cwiPvwjZ with well researched products and training. At present, 58
Islamic windows are operating in Sonali Bank Limited.
n‡”Q|
†µwWU †iwUs Credit Rating
evsjv‡`k e¨vs‡Ki eva¨Zvg~jK Pvwn`v wn‡m‡e †mvbvjx e¨vsK wjwg‡UW Gi As per Bangladesh Bank’s mandatory requirement, the credit
†µwWU †iwUs Kvh©vw` BgvwR©s †µwWU †iwUs wjwg‡UW Øviv m¤úbœ Kiv n‡q‡Q| rating of SBL was done by the Credit Rating Information
and Services Limited(CRISL)on the basis of the audited
me©‡kl 31 wW‡m¤î 2019 ZvwiL wfwËK e¨vs‡Ki wbixwÿZ Avw_©K weeiYxmg~n Balance Sheet as of 31 December 2019 and other relevant
I Ab¨vb¨ Z‡_ï wfwË‡Z GB †iwUs m¤úbœ Kiv n‡q‡Q| DwjøwLZ †iwUs G‡RwÝ documents. The rating agency awarded the following
KZ…©K wb‡¤œv³ †iwUs cÖ`vb Kiv n‡q‡Q t ratings:
b‡fg¦i 2021 ch©šÍ Ryb 2020 ch©šÍ Upto November
Upto June 2020
Surveillance 2021
ch©‡eÿb †iwUs
`xN© †gqv` ¯^í †gqv` `xN© †gqv` ¯^í †gqv` Rating Long Short Long Short
Term Term Term Term
miKvwi c„ô‡cvlK As Government
AAA ST-1 AAA ST-1 AAA ST-1 AAA ST-1
e¨vsK wnmv‡e Supported Bank
miKvwi c„ô‡cvlKZv Without Govt.
A ST-2 A ST-2 A ST-2 A ST-2
e¨ZxZ e¨vsK wnmv‡e Supported Bank
Ae¯’v w¯’wZkxj w¯’wZkxj Outlook Stable Stable
cl©` Ges Ab¨vb¨ KwgwUi mfvmg~n Board and Other Committee Meetings
2020 mv‡j e¨vs‡Ki cwiPvjbv cl©‡ì †gvU 36wU cl©` mfv AbywôZ n‡q‡Q| A total of 36 Board meetings of the Bank were held during
the year 2020. Besides, 08 meetings of Board Executive
GQvov, 2020 mv‡j cwiPvjbv cl©‡ì wbe©vnx KwgwUi 08wU mfv, cl©` wbixÿv Committee, 08 meetings of Board Audit Committee, 07
meetings of Board Risk Management Committee were held
KwgwUi 08wU mfv, cl©` SuzwK eë¯’vcbv KwgwUi 07wU mfv AbywôZ n‡q‡Q| during the year under review.
2020 mv‡j e¨vs‡Ki cÖavb cÖavb Kvh©µgmg~n BANK’S MAIN ACTIVITIES DURING 2020
ev‡RU-2020 Budget 2020
e¨vs‡Ki cwiPvjbv cl©` KZ…©K 2020 mv‡ji evwl©K ev‡RU (g~jabx ev‡RU I The Bank’s ‘Annual Budget’ comprising capital budget and
revenue budget for the year 2020 was approved by the
ivR¯^ ev‡RU) Aby‡gvw`Z nq| ivR¯^ I g~jabx ev‡R‡Ui Aax‡b †gvU ev‡RU Board of Directors. The budget provision vis-a-vis the actual
eivÏ I cÖK…Z AR©b wb‡¤œ Dc¯’vcb Kiv n‡jv t outturn under Capital and Revenue heads are shown below:
Capital and Revenue Budget along with actual performance
g~jab I ivR¯^ ev‡R‡Ui cÖK…Z ZzjbvgyjK wPÎ
(wgwjqb UvKvq) (Tk. in million)
2020 2020 2020 2020

µt bs ev‡RU LvZ Sl. No Budget Head
ev‡RU cÖK…Z Budget Actual
ivR¯^ Revenue
(K) Avq 84288.00 84777.89 (a) Income 84288.00 84777.89
01. 01.
(L) e¨q 63259.25 63252.93 (b) Expenditure 63259.25 63252.93
g~jab Capital
(K) Avq 5.00 (a) Income 5.00 -
02. - 02.
(L) e¨q 940.00 (b) Expenditure 940.00 637.48
Annual Report 2020

YEAR OF EXCELLENCE
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 wkí Dbœq‡b
the pace of industrial development through implementation
MwZ mÂv‡ii j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW 2020 mv‡j wkí Lv‡Z †gvU of government policies, nm 2020, SBL has sanctioned a
total of Tk. 35,869.60 million for term and working capital
35,869.60 wgwjqb UvKv †gqv`x I PjwZ g~jab FY gÄyi K‡i‡Q| Gi g‡a¨
loans of which 13,082 million as project loan, 21,039.00
cÖKí FY wnmv‡e 13,082.80 wgwjqb, PjwZ g~jab wn‡m‡e 21,039.00 million as working capital and 12,150.00 million in electricity
generation under private project. The loans were provided
wgwjqb Ges cÖvB‡fU †m±‡i we`y¨r Drcv`b cªK‡í 12,150.00 wgwjqb UvKv
for establishment of new industrial units and also for
gÄyi Kiv nq| bZzb wkí ¯’vcb Ges we`¨gvb wkí‡K m¤úªmvi‡Yi j‡ÿ¨ Gme expansion (BMRE) of existing potential units to expand the
industrial base in the country. Credit facilities/disbursement
A_©vqb Kiv nq| wkí cÖKí A_©vqb wefv‡Mi gva¨‡g mve©ÿwYKfv‡e wjR activities under Industrial Project Financing Division is being
dvBbvwÝsmn Ab¨vb¨ FY weZiY cÖwµqv cwiPvjbv Kiv nq| continously carried out through various Industrial Credit
Products/programs including Lease Financing.
Thermax Group Typay BFL
†KvwfW 19 Gi Kvi‡b ÿwZMÖ¯Í A_©bxwZ‡K cybivq mPj Ki‡Z gvbbxq cÖavbgš¿x Under Financial Assistance Program declared by Hon’ble
Prime Minister due to the adverse effect of COVID 19
KZ©„K †NvwlZ Avw_©K cÖ‡Yv`bvi AvIZvq wkí I mvwf©m ‡m±‡ii we‡kl FY pendamic in the economy, SBL has so far sanctioned term
myweav wn‡m‡e IqvwK©s K¨vwcUvj Lv‡Z wegvb evsjv‡`k GqvijvBÝ wjt mn loans of Tk. 12,780.80 million to Biman Bangladesh Airlines
Ltd., the national flag carrier of the country and other
Ab¨vb¨ wkí cÖwZôv‡bi AbyK~‡j we‡kl FY myweav wnmv‡e 12,780.80 wgwjqb
industries under industry and services sector. The Bank has
UvKv gÄyi Kiv n‡q‡Q| Gfv‡e e¨vsK DwjøwLZ FY gÄy‡ii gva¨‡g 2020 mv‡j thus created employment opportunities by sanctioning
the above loans to various industrial units in the year 2020.
D‡jøL‡hvM¨ msL¨K †jv‡Ki Kg©ms¯’v‡bi my‡hvM m„wó K‡i‡Q| wkí A_©vq‡bi G
These financing activities will contribute towards GDP
mKj Kvh©µg †`‡ki wRwWwc cÖe„w×‡Z D‡jøL‡hvM¨ f‚wgKv ivL‡e| growth.
2020 mv‡j GmGgB A_©vqb Kg©m¤úv`b Performance of SME Finance in 2020

evsjv‡`k e¨vs‡Ki bxwZgvjv Abymv‡i AbybœZ Ges cÖvwšÍK Rb‡Mvwôi `vwi`ª According to Bangladesh Bank guidelines, Sonali Bank Limited
emphasizes on SME financing for eliminating poverty by
we‡gvP‡b †mvbvjx e¨vsK wjwg‡UW GmGgB A_©vq‡b we‡kl ¸iæZ¡ w`‡q _v‡K|
increasing SME loan flow at economically underdeveloped
AMÖvwaKvicÖvß G FY bxwZgvjvq bvix I myweav ewÂZ D‡`¨v³v‡ì Av_©- areas and to marginal people. Setting up priority based SME
credit policy for women and underprivileged entrepreneurs,
mvgvwRK Dbœq‡b e¨vsK KvR K‡i hv‡”Q| e¨vsK wewfbœfv‡e Drcv`bKvix
the Bank has been working for the improvement of their
cÖwZôvb, eëmvqx †Mvôx, †mev cÖ`vbKvix cªwZôvb‡K GmGgB Lv‡Z †gqv`x I socio-economic condition. The Bank extended term loans
PjwZ g~jab FY cÖ`vb K‡i _v‡K| and working capital to different producers, business people
and service providers under this sector.
1) †eKvi hyeK Ges A_©‰bwZKfv‡e AbybœZ GjvKvq FY cÖevn e„w×i gva¨‡g 1) A project on “One Branch One Month One New
Entrepreneur’’ was launched in 2014 for eradication of
`vwi`ª `~ixKi‡Yi j‡ÿ¨ 2014 mvj †_‡K ÒGKwU kvLv GKwU gvm GKwU bZzb
poverty by increasing loan flow for unemployed people and
D‡`¨v³v Kg©m~wPÓ Pvjy Kiv n‡q‡Q| GB Kg©m~wPi AvIZvq 2020 mvj ch©šÍ
70
DIRECTORS' REPORT
Micro Credit in Bangladesh
†gvU 33,586 Rb GmGgB D‡`¨v³vi wecix‡Z me©‡gvU 74,401.60 wgwjqb economically underdeveloped areas. Under this project, Tk.
UvKv FY weZiY Kiv n‡q‡Q| 74,401.60 million has been disbursed to a total of 33,586
SME entrepreneurs till 2020.
2) Ò†mvbvjx Av‡jvÓ cÖK‡íi AvIZvq MÖxb e¨vswKs (†mvjvi GbvwR© Ges ev‡qv 2) A total of Tk. 53.60 million has been disbursed to the
M¨vm cø¨v›U) Lv‡Z G ch©šÍ 1,567 Rb MÖvn‡Ki AbyK~‡j e¨vsK me©‡gvU cÖvq green sectors (solar energy and biogas plants) under “Sonali
53.60 wgwjqb UvKv weZiY K‡i‡Q| Alo” project and the total number of clients stood at 1,567
as of 31 December 2020.
3) e¨vs‡K Òbvix D‡`¨v³v Dbœqb BDwbUÕÕ ¯’vcb Kiv n‡q‡Q Ges bvix 3) ’’Women Entrepreneurs Development Desk’’ has been
D‡`¨v³v‡ì Rb¨ GmGgB F‡Yi ‰ewkó¨ I my‡hvM myweav e¨vcKfv‡e cÖPv‡ii established in the bank and Brochure ’’Nipuna’’ and ’’SME
j‡ÿ¨ eªæwkDi ÒwbcybvÕÕ Ges ÒGmGgB FYÕÕ gy`ªY K‡i gvV ch©v‡q weZiY Loan’’ is distributed to the women entrepreneurs to inform
Kiv n‡”Q| ïaygvÎ 2020 mv‡j G Lv‡Z 821 Rb bvix D‡`¨v³vi AbyK~‡j them of the facilities of the scheme. In this project, the Bank
disbursed Tk. 703.60 million to 821 women entrepreneurs
weZiYK…Z F‡Yi cwigvY 703.60 wgwjqb UvKv|
in 2020.
4) GQvov K¬v÷vi m„wói gva¨‡g 2020 mv‡j 18 Rb FYMÖnxZvi AbyK~‡j cÖvq 4) Moreover, Tk. 4.00 million was disbursed to 18 clients in
4.00 wgwjqb UvKv weZiY Kiv n‡q‡Q| ‘’Cluster’’ financing of the Bank in 2020.
5) wW‡m¤î 2020 ch©šÍ GmGgB F‡Yi cwigvY ùvwo‡q‡Q 71,310.90 wgwjqb 5) Total outstanding volume of SME credit stood at Tk.
hv e¨vs‡Ki †gvU F‡Yi 12.16%| mvgwMªKfv‡e evsjv‡`k e¨vs‡Ki wb‡`©kvejx 71,310.90 million till 2020 which was 12.16% of total loan of
the bank. Overall SME activities will be geared up according
Abyhvqx fwel¨‡Z G e¨vs‡Ki GmGgB Kvh©µg Av‡iv †eMevb n‡e|
to Bangladesh Bank’s guideline.
K…wl/cjøx FY
Agricultural / Rural Credit
eZ©gv‡b G e¨vs‡K 8 wU K…wl/cjøx FY cÖKí Pvjy Av‡Q †hgb -we‡kl K„wl FY, Cÿz At present, 8 credit programs, namely Special Agricultural
Credit (SACP), Sugarcane Cultivation Credit, Pond Fisheries
Pvl FY, cyKz‡i grm¨ Pvl FY, we‡kl wewb‡qvM, K…wl FY, kl¨wenxb Addvwg©s Credit, Special Investment, Farming Credit, Non-crop Off-
FY, mvgwRK ebvqb FY, `y» Drcv`b Ges K…wÎg cwi‡blK cybtA_©vqb farming Credit, Social Forestry Credit and Refinance scheme
Annual Report 2020

YEAR OF EXCELLENCE
FY| G¸‡jvi g~j jÿ¨ n‡jv K…wl Drcv`b e„w× Kiv, Kg©ms¯’v‡bi my‡hvM m„wó for Milk Production and Artificial Insemination, are being run
by the Bank with a view to augmenting agricultural output,
Kiv Ges MÖvgxY Rb‡Mvwôi DcvR©b e„w× Kiv| G e¨vsK K…wlR Ges AK…wlR creating employment opportunities and generating income
Lv‡Z FY cÖ`vb Kvh©µg Av‡iv †Rvi`vi K‡i‡Q| evsjv‡`k e¨vs‡Ki wb‡`©kbv of the rural people. SBL intensified its efforts to extend credit
facilities to all sections of rural population under those
Abyhvqx †mvbvjx e¨vsK wjwg‡UW K…wl/cjøx F‡Y 4% †_‡K 10% mij my‡` FY various rural credit programs pertaining to agricultural and
weZiY K‡i _v‡K| ZvQvov Wvj, ˆZjexR, gmjv, fzÆv Pv‡li Rb¨ K…lK‡ì‡K off-farming activities. As per Bangladesh Bank’s instruction,
Sonali Bank Limited has been providing Agricultural/Rural
Ges `y» Drcv`b I K…wÎg cwi‡blK cybt A_©vq‡bi †ÿ‡Î 4% †_‡K 5% my‡` Credit ranging from 4% to 9% with simple interest rate.
Loans are being disbursed to the rural farmers for cultivation
FY weZiY Kiv nq| Dciš‘, e¨vsKwU bZzb GKwU FY Kg©m~Px Pvjy K‡i‡Q, hvi of pulses, oil seed, spices and maize at 4% and at 5% interest
bvg †`qv n‡q‡Q ÔAv¤ªK~Ä Dbœqb FY Kg©m~PxÕ hv 7wU †Rjvq-ivRkvnx, bIMv, rate for Refinance Scheme for Milk Production and Artificial
Insemination. Moreover, the Bank has launched a new loan
bv‡Uvi, PuvcvBbeveMÄ, VvKziMuvI, w`bvRcyi Ges mvZÿxiv AÂ‡j Av‡gi program named ‘Amrokunju Unnayan Rin Karmasuchi’ in
the seven districts, which are Rajshahi, Naogaon, Natore,
djb e„w×i Rb¨ weZiY Kiv n‡”Q| 31 wW‡m¤î 2020 wfwËK K…wl/cjøx FY
Chapainawabganj, Thakurgaon, Dinajpur and Satkhira, to
Lv‡Z F‡Yi w¯’wZ ùvwo‡q‡Q 46,606.89 wgwjqb UvKv| increase the production of mango in our country. The total
outstanding of agricultural loans stood at Tk. 46,606.89
million as on 31 December, 2020.
ÿy`ª FY Micro Credit
`vwi`ª we‡gvPb, AvZ¥Kg©ms¯’vb m„wó I MÖvgxY Av_©-mvgvwRK Dbœq‡b ÿy`ª The role of micro-credit is widely acclaimed as an effective
tool for poverty alleviation, self-employment generation and
F‡Yi f‚wgKv wekê¨vcx ¯^xK…Z I cÖkswmZ| Kv‡RB e¨vsK ÿz`ª FY Kvh©µg‡K
rural economic development. The Bank has, therefore, been
Av‡iv MwZkxj I Kvh©Kifv‡e cwiPvjbvi j‡ÿ¨ me©vZ¡K cÖ‡Póv Pvwj‡q hv‡”Q| trying its best to finance this sector. At present, as many as
eZ©gv‡b `vwi`ª `~ixKi‡Y e¨vs‡Ki cÖvq 24wU ÿz`ª FY Kg©m~wP i‡q‡Q| D³ 24 projects/programs aimed at alleviating poverty are being
financed by the Bank. These programs include, among
Kg©m~wPi g‡a¨ Av‡Q e¨vsK-GbwRI †mZzeÜ‡b e¨vcK FY Kg©m~wP, cÖwZeÜx‡ì
others, Bank-NGO Linkage Wholesale Credit Program, Loan
Rb¨ FY Kg©m~wP, ¯^wbf©i evsjv‡`k, weAviwWwe-BDwmwmG Gi wewfbœ FY, 152 Program for the Disabled, Swanirvar Bangladesh, different
wU Dc‡Rjvq GwWwei Av_©vq‡b MÖvgxY DcRxweKv cÖKí, `vwi`ª we‡gvPb mnvqZv types of credit through BRDB-UCCA, ADB financed Rural
Livelihood Project (RLP) in 152 Upazilas, Daridra Bimochan
FY Kg©m~wP, MÖvgxY ÿz`ª eëmv Ges ÿz`ª K…wl FY cÖKí, BARD (Kzwgjøv),
Shahayata Rin Karmasuchi, Rural Small Business and Small
†mvbvjx e¨vsK-AviwWG (e¸ov) BZ¨vw`| `vwi`ª we‡gvPb Ges †`‡ki Av_©- Farming Loan Scheme, BARD (Cumilla), Sonali Bank &
mvgvwRK Dbœq‡bi Rb¨ A_© mieivnKi‡Yi j‡ÿ¨ e¨vsK DwjøwLZ Kg©mw~P mg~n RDA (Bogra) etc. These were introduced by the Bank to
channelize the financial resources for poverty alleviation
Pvjy K‡i‡Q|
and socio economic development of the country.
Credit for Urban Women Micro Enterprize development Under the project titled “ Credit for Urban Women Micro
Enterprise Development (CUMED)” project, 92 branches of
(CUMED) wk‡ivbv‡g G e¨vs‡Ki 92wU kvLvq hvi g‡a¨ mKj wefvM I †Rjvi
the country including all main branches of the divisional and
cÖavb kvLvmg~n, XvKv kn‡ii Af¨šÍ‡ii g‡bvbxZ 26wU kvLv, PÆMÖvg kn‡ii district headquarters, 26 selected branches in Dhaka city,
2 branches in Chittagong city, 3 branches in Moulvibazar
Af¨šÍ‡ii 2wU kvLv, †gŠjfxevRvi †Rjvi 3wU kvLvq RvgvbZwenxb 0.50
have been disbursing loans, against the target disbursement
wgwjqb UvKv ch©šÍ FY ‡`qv n‡”Q| of Tk. 0.50 million, without collateral security.
GQvovI mviv‡`‡k ÿy`ª D‡`¨v³v Dbœqb FY Kg©m~wP ÔD‡b¥lÕ Pvjy Av‡Q| Z`ycwi Besides, the Micro Entrepreneur Development Credit
Program “Unmesh” has been rolling out all over the country.
MÖvgxY bvix‡ì‡K ¯^vej¤^x K‡i Zzj‡Z ÔRv‡Mv bvix MÖvgxY FYÓ bv‡g e¨vs‡K Moreover, in order to make the rural women self-reliant, the
bZzb GKwU FY Kg©m~Px Pvjy Kiv n‡q‡Q| e¨vsKwU mviv‡`‡k 250wU MÖvgxY Bank has introduced a new loan program named “Jago
Nari Grameen Rin” through 250 rural branches all over the
kvLvq 25,000/- UvKv ch©šÍ RvgvbZwenxb FY cÖ`vb Ki‡Q| country with a provision of collateral-free loan up to Tk.
25,000.00.
†mvbvjx e¨vsK wjwg‡UW ÒwidvBbvÝ ¯‹xg di GmGgBwc 10/- UvKv GKvD›U SBL is also disbursing loans in “Refinance Scheme for
SMEF Tk. 10.00 Account Holder” for the farmers and in
†nvìviÕÕ Gi AvIZvq K…lK‡ì Ges ÒAv`k© MÖvg Kg©m~wPÓ Gi AvIZvq `vwi`ª
“Adarsha Gram Karmasuchi” aimed at alleviating poverty at
we‡gvP‡b FY weZiY K‡i Avm‡Q| GB Kg©m~wPi AvIZvq mnR k‡Z© e¨vsK a sustainable level. The poor professionals of the rural areas
Mixe †ckvRxex‡ì RvgvbZwenxb m‡ev©”P 20,000/- UvKv ch©šÍ FY cÖ`vb are being selected as beneficiaries under this program and
provided collateral-free loan up to Tk. 20,000/- with easy
K‡i _v‡K| terms and conditions.
72
DIRECTORS' REPORT
m¤úªwZ †mvbvjx e¨vsK wjwg‡UW g~jZ ¯‹zjMvgx QvÎ/ QvÎx‡ì Rb¨ ÔevBmvB‡Kj SBL has recently launched a low interest bearing loan
program named “Bicycle Loan Scheme for School Going
FY Kg©m~wPÕ bv‡g ¯^í my‡ì GKwU FY Kg©m~Px Pvjy K‡i‡Q| ¯’vbxq Kvh©vjq Ges
Students”. This program has already been circulated in all
K‡c©v‡iU kvLv e¨ZxZ e¨vs‡Ki mKj kvLvq GB FY Kg©m~wP Pvjy Kiv n‡q‡Q| branches of Sonali Bank Limited except Local Office and all
corporate branches. This collateral free newly introduced
mnR k‡Z© RvgvbZ wenxb 15,000/-UvKv ch©šÍ ¯‹zjMvgx Mixe QvÎ/QvÎx‡ì
loan upto Tk. 15,000.00 is being provided to the poor
g‡a¨ GB FY weZiY Kiv n‡”Q| 31 wW‡m¤î 2020 ZvwiL wfwËK gvB‡µv school going students with easy terms and conditions. As
†µwWU Lv‡Z †gvU w¯’wZi cwigvb 12,197.52 wgwjqb UvKv| on 31 December 2020, micro credit of SBL stood at Tk.
12,197.52 million.
wewb‡qvM Investment Financing
G e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi g¨v‡bR‡g›U wWwfkb wewb‡qvM msµvšÍ The Treasury Management Division (TMD) of the Bank
Kvh©µg †`Lfvj K‡i _v‡K| Bnv †UªRvwi wej, eÛ, wW‡eÂvi, †kqvi Ges oversees the investment financing activities. It deals
in Treasury bills, bonds, debenture, share and related
wewb‡qvM m¤úwK©Z Kvh©vejx cwiPvjbv K‡i _v‡K| †UªRvwi wej I eÛ µq/
transactions. The Bank has engaged itself as the primary
weµ‡qi †ÿ‡Î e¨vsK cÖvBgvwi wWjv‡ii f~wgKv cvjb K‡i _v‡K| e¨vsK G LvZ dealer in buying and selling of treasury bills and bonds. In
‡_‡K 2020 mv‡j 40,289.94 wgwjqb UvKv Avq K‡i‡Q hv c~e©eZ©x eQ‡i 2020, the Bank earned Tk. 40,289.94 million which was Tk.
wQj 28,144.09 wgwjqb UvKv| 2020 mvj †k‡l e¨vs‡Ki †gvU wewb‡qv‡Mi 28,144.09 million in the previous year. The total investment
cwigvY ùvwo‡q‡Q 629,691.45 wgwjqb UvKv| cÖavb cÖavb wewb‡qvM LvZ of the Bank was Tk. 629,691.45 million at the end of 2020.
Major investments were made in Treasury Bills, Treasury
n‡jv †UªRvwi wej, eÛ, wW‡eÂvi, †kqvi BZ¨vw`| 31 wW‡m¤î 2020 wfwËK
Bonds, Special Bonds, Corporate/Private Bonds, Shares and
LvZIqvix (cvewjK Ges cÖvB‡fU) wewb‡qv‡Mi mvi-ms‡ÿc wb‡¤œ Dc¯’vcb Debentures, etc. The sector-wise (Government, Public and
Kiv n‡jv t Private) summary position of investment of the Bank as on
31 December, 2019 is shown in the table below:
31 wW‡m¤î, 2020 wfwËK LvZIqvix wewb‡qvM Sector-wise Investment as on 31

December, 2020
( wgwjqb UvKvq) (Tk. in million)
wk‡ivbvg miKvwi cvewjK cÖvB‡fU me©‡gvU
Description Government Public Private Total
evsjv‡`k e¨vsK wej - - - -
Bangladesh Bank - - - -
†UªRvwi wej 134867.14 - - 134867.14 Bill
wifvm© †i‡cv - - - - Treasury Bills 134867.14 - - 134867.14
†UªRvwi eÛ 409078.84 - - 409078.84 Reverse Repo - - - -
Treasury Bonds 409078.84 - - 409078.84
†¯úkvj eÛ/myKzK - - 5279.45 5279.45
Special Bonds - - 5279.45 5279.45
K‡c©v‡iU/cÖvB‡fU eÛ - - 53680.00 53680.00 Corporate/ - - 53680.00 53680.00
Private Bond
cÖvBReÛ - - 76.30 76.30 Prize Bond - - 76.30 76.30
wW‡eÂvi - 5.15 0.75 5.90 Debentures - 5.15 0.75 5.90
†kqvi - 913.42 20145.60 21059.02 Shares - 913.42 20145.60 21059.02
wmwKDwiwU wW‡cvwRU Security Deposit - - 9.61 9.61
- - 9.61 9.61 (Kolkata Br.)
(†KvjKvZv kvLv)
Investment - - 5088.07 5088.07
‰e‡`wkK gy`ªvq wewb‡qvM - - 5088.07 5088.07 in Foreign
Currency
‰e‡`wkK kvLv - - 547.12 547.12 Overseas - - 547.12 547.12
Branches
me©‡gvU 543945.98 918.57 84826.90 629691.45 Total 543945.98 918.57 84826.90 629691.45
gvbe m¤ú` Human Capital

¯^vaxbZvi ci G e¨vs‡Ki K‡cv©‡iU ms¯‹…wZ Ggb ch©v‡q ‡cŠu‡Q‡Q †hLv‡b The corporate culture at SBL is such that the employees
have ample incentives and opportunities and an ambience
Kg©KZ©v/ Kg©Pvixiv ¯^vaxbfv‡e KvR K‡i wb‡Ri, cÖwZôv‡bi Ges mgv‡Ri of trust that drives them to take initiative to actualize their
Dbœq‡b f~wgKv ivL‡Q| e¨vs‡Ki gvbe m¤ú` Dbœqb wefvM Kg©KZ©v‡ì e¨vswKs potential to maximize benefits for themselves as well as
Annual Report 2020

YEAR OF EXCELLENCE
wel‡q me©‡kl AMÖMwZ Ges wbqgbxwZ m¤ú‡K© mg¨K Ávb/cÖwkÿY †`qvi for the bank and the society. The HR Division of SBL takes
necessary initiatives to keep its employees informed of the
cÖ‡qvRbxq c`‡ÿc wb‡”Q| Gi d‡j e¨vs‡Ki Kg©KZ©v-Kg©Pvixiv mn‡RB
latest developments and banking rules and regulations so
MÖvnK‡ì Pvwn`v eyS‡Z mÿg nb Ges †m †gvZv‡eK `ªæZ Ges `ÿZvi mv‡_ that they can anticipate and understand the customer’s
‡mev cÖ`vb Ki‡Z mg_© nq| e¨vs‡Ki gvbe m¤ú`‡K Av‡iv Kvh©Kix Kivi needs and deliver prompt, efficient, and confident services.
As SBL professes that employees are its best assets, it has
Rb¨ †mvbvjx e¨vsK wewfbœ cÖwkÿ‡Yi D‡`¨vM MÖnY K‡i‡Q| GiB Ask wn‡m‡e invested significantly on its development and welfare. It
2020 mv‡j 7,152 Rb Kg©KZ©v- Kg©Pvix‡K wewfbœ cÖKv‡ii cÖwkÿY †`qv imparted training to as many as 7,152 employees in 2020.
As of December 2020, the total number of employees of
n‡q‡Q| 31 wW‡m¤î, 2020 wfwËK e¨vs‡Ki †jvKe‡ji msL¨v 18,918 Rb
the bank was 18,918, of which officers and staff were 16,738
hvi g‡a¨ 16,738 Rb Kg©KZ©v Ges 2,180 Rb Kg©Pvix| and 2,180 respectively.
MÖvnK †mev Customer Care
†mvbvjx e¨vsK wjwg‡UW Zvi MÖvnK‡ì KvQ †_‡K me©wb¤œ †mev g~j¨ wb‡q _v‡K| SBL takes nominal service charges from its customers. Front
DbœZ MÖvnK †mevi Rb¨ d«›U †W¯‹, bvix D‡`¨v³v †W¯‹, MÖvnK Awf‡hvM e•, desk, women entrepreneurs desk, customer complaint box
and customer care cell have been in place to ensure better
MÖvnK †mev †mj †Lvjv n‡q‡Q| avwg©K gymwjg‡ì µgea©gvb Pvwn`v c~i‡Yi
customer services. To cater to the increasing demand of a
j‡ÿ¨ e¨vsK Zvi 58wU kvLvq Bmjvgx e¨vswKs DB‡Ûv Pvjy K‡i‡Q| DbœZ
large section of the Muslim populace, SBL has introduced
MÖvnK †mev †`qvi Rb¨ Ges e¨vswKs Kvh©µg MwZkxj Ges `ÿZvi mv‡_ Islamic banking window in 58(Fifty Eight) branches. It is
m¤úv`‡bi Rb¨ mKj Kvh©µg wWwRUvj c×wZ‡Z iƒcvšÍi Kiv n‡q‡Q| digitizing its business to provide improved services to its
customers and to make its operations 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, mvaviY FY, In addition to providing conventional banking services such
as industrial finance, import and export finance, general
cjøx FY, ‰e‡`wkK gy`ªv Avbqb, `xN© †gqv`x FY BZ¨vwì cvkvcvwk †mvbvjx credit, rural credit, remittance, long term loans, the Bank
e¨vsK wjwg‡UW 51wU mvgvwRK wbivcËv †e÷bx Kg©m~wP‡Z mnvqZv Ki‡Q is assisting in implementing 51 safety net programs which
in turn are affiliated with some specialized projects of the
†h¸‡jvi mv‡_ miKv‡ii wKQz we‡klvwqZ cÖK‡íi mswkøóZv i‡q‡Q| we¯Í…Z Government. Through its wide range of rural branches,
MÖvgxY kvLvi gva¨‡g G e¨vsK cÖv_wgK Ges D”P gva¨wgK ¯Í‡i Aa¨vqbiZ QvÎ/ SBL is disbursing stipends to the students of primary and
secondary schools , army pension, old age allowance,
QvÎx‡ì g‡a¨ wkÿv e„wË, mvgwiK †cbkb, eq¯‹ fvZv, weaev fvZv, `y¯’ gwnjv widow allowance, destitute woman allowance, salaries
fvZv, ‡emiKvix ¯‹zj, K‡jR, gv`ªvmvmn †emiKvix †iwR÷ªvW© cÖv_wgK ¯‹z‡ji and allowances for non-government schools, colleges,
madrasas and non-government registered primary schools
wkÿK‡ì †eZb-fvZv cÖ`vb K‡i _v‡K| Gi cvkvcvwk wewfbœ cÖKvi BDwUwjwU as well as collecting various utility bills such as telephone
bills, gas bills, electricity bills of DESA, DESCO, REB, and
wej †hgb †Uwj‡dvb wej, M¨vm wej, ‡Wmv/‡Wm‡Kv/ AviBwe Gi we`ÿr wej,
WASA. There are 2,885,656 accounts related to the Social
Iqvmv wej msMÖn K‡i _v‡K| e¨vsK eZ©gv‡b 28,85,656 wU mvgvwRK Safety Net programs, 243,011 accounts for distributing
freedom fighters’ allowance and 2,013,088 accounts for
wbivcËv †e÷bx wnmve, 2,43,011 wU gyw³‡hv×v wnmve Ges 20,13,088 wU others. The main objective of SBL is to take banking services
Ab¨vb¨ wnmve Gi gva¨‡g wewfbœ cÖKvi fvZv cÖ`vb K‡i| e¨vs‡Ki g~j D‡Ïk¨ to the door-steps of the people. The Bank participates
in various socio-economic activities and development
n‡jv e¨vswKs †mev‡K MÖvn‡Ki †`vi †Mvovq †cŠu‡Q †`qv| GQvov e¨vsKwU wewfbœ programs as well as plays a significant role in implementing
cÖKvi Av_©-mvgvwRK Ges Dbœqbg~jK Kg©Kv‡Û AskMÖn‡Yi cvkvcvwk miKvi various plans and programs of the Government. As the state-
owned and the largest commercial bank in the country,
KZ…©K M„nxZ wewfbœ cÖKí ev¯Íevq‡b mnvqZv Ki‡Q| iv‡óªi me©e„nr evwYwR¨K SBL runs its operations striking a perfect balance between
e¨vsK wn‡m‡e ‡mvbvjx e¨vsK wjwg‡UW Gi `vwqZ¡ n‡jv †mev w`‡q Ges †ckv`vix providing almost free services to the scores of people as
well as financing the priority sectors of the government
g‡bvfve wb‡q KvR K‡i †`‡ki g‡a¨ GKwU †bZ…Z¡¯’vbxq jvfRbK cÖwZôvb as part of its commitment to nation building and making
enough profit for fostering the required growth to maintain
wn‡m‡e KvR Kiv|
its comfortable lead in the banking industry.
cuywRevRvi Kvh©µg
Capital Market Operation
†mvbvjx e¨vs‡Ki GKwU mvewmwWqvwi †Kv¤úvwb wn‡m‡e †mvbvjx Bb‡f÷‡g›U
Through its subsidiary Sonali Investment Limited (SIL),
wjwg‡UW (SIL) evsjv‡`‡ki cuywRevRv‡i ¸iæZ¡c~Y© f~wgKv cvjb Ki‡Q| SIL SBL has a significant presence in the capital market of
AvB‡bi cÖwZ AbyMZ †_‡K †ckv`vwi AvPiY Øviv g~jëvb MÖvnK‡ì DbœZgv‡bi Bangladesh. SIL ensures high quality services to our valuable
clients by its professionalism while being fully compliant with
†mev cÖ`vb Ki‡Q| ‡Kv¤úvwbwU MÖvnK ¯^v_© Ges myweav‡K AMÖvwaKvi †`qvi the laws of the land. It attaches priority to investors’ interest,
cvkvcvwk evRvi m¤úwK©Z SuzwK †_‡K MÖvnK‡ì myiÿv †`q| Gi d‡j MÖvnK‡ì their benefit and always intends to protect investors against
74
DIRECTORS' REPORT
wek¦¯Í Askx`vi n‡Z mÿg n‡q‡Q| Gi eZ©gvb Kvh©µ‡gi g‡a¨ Bmy¨ g¨v‡bR‡g›U, market related risks. This is why SIL has become a trusted
†cvU©dwjI g¨v‡bR‡g›U, AvÛviivBwUs, g~jab mnvqZv, cyuwRevRvi mswkøó partner of investors. The current activities of the company
include Issue Management, Portfolio Management,
Ab¨vb¨ †mev D‡jøL‡hvM¨| eZ©gv‡b GwU cÖavb Kvh©vjqmn 4 wU kvLv (cëb, Underwriting, Equity Participation and ancillary services
wgicyi, DËiv I Lyjbv) Øviv ˆ`bw›`b Kvh©µg cwiPvjbv Ki‡Q| cÖwZôvbwU related to the capital market. At present, Sonali Investment
Limited runs its day-to-day operations from its Head Office
gvwR©b FY wn‡m‡e 2,158.58 wgwjqb UvKv weZi‡Yi cvkvcvwk cuywRevRv‡i
and three branches located at Paltan, Uttara and Mirpur. SIL
wbR¯^ †cvU©dwjI‡Z 934.23 wgwjqb UvKv wewb‡qvM K‡i‡Q| has disbursed, so far, Tk. 2,158.58 million as margin loan and
invested Tk. 934.23 million in its own portfolio.
SuzwK eë¯’vcbv Risk Management

e¨vs‡Ki SuzwK eë¯’vcbv wefvM mKj cÖKvi SuzwK m¤úwK©Z KvR wPwýZ, wePvi- The Risk Management Division of the Bank identifies,
analyses, evaluates and supervises all risk related work
we‡kølY, g~j¨vqb Ges Z`viKx K‡i _v‡K| GKB mv‡_ evsjv‡`k e¨vs‡Ki including control/mitigation of risks as per guidelines and
wb‡`©kbv Abyhvqx cwiPvjbv cl©‡ì Aby‡gv`bµ‡g GMy‡jv wbqš¿Y Ges mgvav‡bi direction of Bangladesh Bank with the approval of the
Board of Directors. Recently, a high powered ‘Board Risk
Dcvq †ei K‡i _v‡K| m¤úªwZ evsjv‡`k e¨vs‡Ki wb‡`©kbv ‡gvZv‡eK mvwe©K
Management Committee’ comprising five members of the
SuzwK eë¯’vcbv Kvh©µg kw³kvjxKi‡Yi D‡Ï‡k¨ cwiPvjbv cl©‡ì 4 Rb Board of Directors has been formed as per the directives
of Bangladesh Bank to strengthen overall risk management
m`m¨ wb‡q cwiPvjbv cl©‡ì SuzwK eë¯’vcbv KwgwU MVb Kiv n‡q‡Q|
activities.
¸iæZ¡c~Y© SuzwKi wewfbœ ‡ÿ‡Î m‡šÍvlRbK †iwUs AR©‡bi j‡ÿ¨ cÖavb Kvh©vj‡qi The Risk Management Division has introduced a Risk
SuzwK eë¯’vcbv wefvM KZ…©K GKwU SuzwK eë¯’vcbv †PKwj÷ (RMC) Pvjy Kiv Management Checklist (RMC) for obtaining ‘satisfactory’
rating on various segments of core risks through proper
n‡q‡Q| ¸iæZ¡c~Y© SuzwK eë¯’vcbv bxwZgvjv e¨vs‡Ki mKj kvLv/ Kvh©vj‡q implementation of Core Risk Management Guidelines,
msiÿY Kiv nq| SuzwK eë¯’vcbv wefvM KZ…©K Aa©-evwl©K wfwË‡Z Òmgwš^Z which is being maintained at all offices/branches of the
SuzwK eë¯’vcbv cÖwZ‡e`bÓ Ges gvwmK wfwË‡Z ÒSuzwK eë¯’vcbv cÖwZ‡e`bÓ Bank. Risk Management Division also prepares half yearly
“Comprehensive Risk Management Report (CRMR)” and
cÖ¯‘Z Kiv nq| Gi gva¨‡g e¨vs‡Ki m¤ú`, `vq, Zvij¨ Ae¯’v I Av‡qi monthly “Risk Management Report (RMR)” to identify, analyze
mv‡_ m¤úwK©Z SuzwKMy‡jv wPwýZ Kiv, we‡kølY Kiv Ges mgvavb Kiv nq| and mitigate the risks relating to bank’s assets, liabilities,
DwjøwLZ cÖwZ‡e`bmg~n e¨vs‡Ki SuzwK eë¯’vcbv KwgwU‡Z Dc¯’vcb Kiv nq liquidity, earnings and submit it to the Risk Management
Committee of the Bank as well as to Bangladesh Bank for
Ges evsjv‡`k e¨vs‡KI †cÖiY Kiv nq| D³ wefvM KZ…©K wbqwgZfv‡e †÷ªm
its regulatory compliance. The division conducts periodic
†Uw÷s Kiv nq hvi gva¨‡g we‡kl SuzwK Dcv`vb Ges ch©vqmg~n we‡ePbvq wb‡q ‘Stress Testing’ to assess Capital to Risk-weighted Asset
wi¯‹ I‡q‡UW m¤ú‡ì wecix‡Z g~ja‡bi ch©vßZv cwigvc Kiv nq| evsjv‡`k Ratio (CRAR) of the Bank considering specific shock factors
e¨vs‡Ki mv‡_ G e¨vs‡Ki ¯^vÿwiZ MOU Gi Av‡jv‡K Ò¸iæZ¡c~Y© SuzwK and shock levels. “Core Risk Management Guidelines
Implementation Policy” has been introduced in line with the
eë¯’vcbv wb‡`©kvejx ev¯Íevqb bxwZÓ Pvjy Kiv n‡q‡Q| SuzwK eë¯’vcbv wefvM MOU signed with Bangladesh Bank. The Risk Management
KZ…©K †µwWU †iwUs, FY I AMÖx‡gi Abycv‡Zi A¯^vfvweK cwieZ©b, †kÖYxK…Z Division also reviews position of credit rating, abnormal
FY Av`vq Ae¯’v, e¨vs‡Ki mv‡_ m¤úwK©Z SuzwK Ges Af¨šÍixY wbixÿvi wbR¯^ change in AD ratio, recovery position, self-assessment
of internal control and other risk factors associated with
g~j¨vqb I ch©v‡jvPbv Kiv nq|
banking activities.
B‡Zvg‡a¨, mycvifvBwRs wiwfD cÖ‡mm (SRP) Gi AvIZvq 2017, 2018 Meanwhile, the Internal Capital Adequacy Assessment
I 2019 mvj wfwËK B›Uvibvj K¨vwcUvj GwW‡Kv‡qwm Av‡mm‡g›U cÖ‡mm Process (ICAAP) and related Supplementary Document
under Supervisory Review Process (SRP) for the year 2017,
(ICAAP) Ges Avbymw½K `wjjvw` cÖYqbc~e©K cÖwZ‡e`bmg~n evsjv‡`k e¨vs‡K 2018 and 2019 have been prepared and submitted to
†cÖiY Kiv n‡q‡Q Ges 2020 mv‡ji ICAAP Gi KvR cªwµqvaxb i‡q‡Q| Bangladesh Bank. Besides, ICAAP for the year 2020 is also
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 n‡Z G In line with Bangladesh Bank guidelines for determining
Minimum Capital Requirement (MCR) and the Capital to Risk-
e¨vsK Basel-III Gi Kvh©µg ïiæ K‡i A`¨vewa Gi wbqg cwicvjb K‡i
weighted Asset Ratio (CRAR) for banks, Basel III guidelines
e¨vs‡Ki Minimum Capital Requirement (MCR) Ges Capital to have been enforced effective from 01 January 2015. Under
Risk Weighted Asset Ratio (CRAR) Gi cwigvY wbY©q Ki‡Q| Basel- Basel-III guidelines, the Capital to Risk-weighted Asset Ratio
III bxwZgvjv †gvZv‡eK 2020 mv‡j Capital to Risk Weighted Asset (CRAR) at the end of 2020 stood at 10.02 percent compared
to 10.09 percent of the previous year against the regulatory
Ratio (CRAR) Gi cwigvY 10.02% †Z ùvwo‡q‡Q hv Zyjbvg~jKfv‡e c~e©eZ©x
requirement of minimum 10.0 percent. Core capital (Tier 1
erm‡i wQj 10.09% †hLv‡b Dfq‡ÿ‡ÎB wbqš¿Yg~jK b~¨bZg cÖ‡qvRb wQj capital) was Tk. 48,674.18 million being 7.68 percent of total
10%| g~L¨ g~jab (Tier 1 Capital) ùvwo‡q‡Q 48,674.18 wgwjqb UvKv, Risk Weighted Assets (RWA). Supplementary capital (Tier 2
hv †gvU SuywK wfwËK m¤ú` (RWA) Gi 7.68%| m¤úyiK g~jab (Tier 2 capital) stood at Tk. 14,826.68 million being 2.34 percent
of RWA.
Capital) ùvwo‡q‡Q 14,826.68 wgwjqb UvKv, hv †gvU RWA Gi 2.34%|
Annual Report 2020

YEAR OF EXCELLENCE
we¯ÍvwiZfv‡e SuywK wfwËK m¤ú` (RWA), b~¨bZg g~jab ch©vßZv (MCR) Ges The details of risk weighted assets, minimum capital
g~jab ch©vßZvi AbycvZ (CRAR) wb‡gœ Dc¯’vcb Kiv n‡jv t requirement and the capital adequacy ratio (CRAR) are
depicted below:
(Tk. in million)
Capital Adequacy Ratio*
Position as of Change
Particulars
(%)
10.35%
2020 2019
10.33%
Total risk weighted 633601.70 526242.30 20.40
assets
Tier-1 Capital 48674.18 45522.76 6.92

10.10%
10.09%
Tier-2 Capital 14826.68 7573.65 95.77

10.02%
Total Capital 63500.86 53096.41 19.60
Minimum Capital 63360.17 52624.23 20.40

requirement
Tier-1 capital 7.68% 8.65% (0.97)

adequacy ratio
Tier-2 capital 2.34% 1.44% 0.90

adequacy ratio
Total capital 10.02% 10.09% (0.07)

2020 2019 2018 2017 2016 adequacy ratio
Implementation of BASEL- III in Sonali

†mvbvjx e¨vsK wjwg‡UW G e¨v‡mj-3 ev¯Íevqb
Bank Limited
A_©‰bwZK g›`v †_‡K D‡Ëvi‡Yi j‡ÿ¨ e¨vswKs †m±‡i Gi SzuwK mnb mÿgZv To improve the banking sectors ability to absorb shocks
arising from financial and economic stress, whatever the
evov‡bvi Rb¨ evsjv‡`k e¨vsK †`‡ki mKj Zdwkwj e¨vsK¸‡jv‡K 1jv sources, thus reducing the risk of spillover from the financial
Rvbyqvix 2015 †_‡K 2019 mvj ch©šÍ av‡c av‡c e¨v‡mj-3 ev¯Íevq‡bi Rb¨ sector to the real economy, Bangladesh Bank instructed all
the scheduled banks in Bangladesh through BRPD circuler
we Avi wc wW mvK©yjvi bs-18/2014 Gi gva¨‡g wb‡`©kbv cÖ`vb Kiv n‡q‡Q| no- 18/2014 to implement BASEL-III from 1st January, 2015
êwk^K wbqwš¿Z I ch©‡eÿbg~jK bZzb GB gvbmgyn we‡klfv‡e wb‡¤œ D‡jøwLZ to 2019 phase by phase.These new global regulatory and
supervisory standards mainly addressed the following areas:
welq ¸‡jvi Dci ¸iæZ¡ Av‡ivc K‡i‡Q t
z Raise the quality level of capital to ensure
z mKj Pjgvb I Aemvqb cÖwZôv‡bi g~ja‡bi ¸bMZ gvb evwo‡q SzuwK banks are better able to absorb losses on both
a going concern and a gone concern basis;
Gov‡bv|
z Increase the risk coverage of the capital
z g~jab KvVv‡gvq SzuwK †gvKv‡ejvi mÿgZv evov‡bv| framework;
z FY I BKz¨BwU Abycv‡Z SzuwKhy³ g~jab cwigvc Kiv| z Introduce leverage ratio to serve as a backstop
to the risk-besed capital measure;
z ch©‡eÿY cÖwµqv ch©v‡jvPbvi Rb¨ bZzb bZzb gvb ˆZix Kiv ( wcjvi-2) z Raise the standards for the supervisory review
Ges process (Piller-II); and
z Public disclosures (Piller- III) etc.
z cÖwZ‡e`b cÖKv‡ki gva¨‡g mKj‡K AeMZ Kiv (wcjvi-3) BZ¨vw` |
Accordingly Sonali Bank Limited has started BASEL-III
†mvbvjx e¨vsK wjwg‡UW 1jv Rvbyqvix 2015 mvj †_‡K e¨v‡mj-3 ev¯Íevqb implementation from January, 2015 and Capital to Risk-
ïiæ K‡i‡Q Ges e¨v‡mj-3 Gi wb‡`©kbvi Av‡jv‡K SzuwKhy³ m¤ú` I g~ja‡bi weighted Asset Ratio (CRAR) of the Bank is being submitted
to Bangladesh Bank as per BASEL- III requirement.
AbycvZ (wm Avi G Avi) evsjv‡`k e¨vs‡K cÖwZ‡e`bvKv‡i †cÖiY Ki‡Q|
Recent Deposit Products
mv¤úªwZK AvgvbZ †cÖvWv±mg~n t
To mobilize more deposit, Bank has introduced several
AvgvbZ msMÖ‡ni j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW KZ©„K PvjyK…Z bZzb AvgvbZ new schemes: (a) Non-resident Deposit Scheme (NRDS) (b)
Sonali Bank Daily Profit Scheme (SBDPS) (c) School Banking
¯‹xg¸‡jv wb¤œiƒc: (K) bb-‡iwmW¨v›U wW‡cvwRU ¯‹xg (L) †mvbvjx e¨vsK
Scheme (SBS) (d) Retirement Savings Scheme (RSS) (e)
†WBwj cÖwdU ¯‹xg (M) ¯‹zj e¨vswKs ¯‹xg (N) wiUvqvi‡g›U †mwfsm ¯‹xg (O) Sonali Bank Retirement Savings Scheme (SBRSS) (f) Sonali
‡mvbvjx e¨vsK wiUvqvi‡g›U †mwfsm ¯‹xg (P) ‡mvbvjx e¨vsK wgwjIwbqvi ¯‹xg Bank Millionaire Scheme (SBMS) (g) Triple Benefit Scheme
(TBS) (h) Sonali Bank Krisok Savings Scheme (SBKSS) (i)
76 Sonali Bank Limited

DIRECTORS' REPORT
(Q) wUªcj †ewbwdU ¯‹xg (R) †mvbvjx e¨vsK K…lK †mwfsm ¯‹xg (S) gy`vivev Mudaraba Monthly Profit Scheme (MMPS) (j) Al-Wadeeah
gvš’wj cÖwdU ¯‹xg (T) Avj-Iqvw`qvn Kv‡i›U GKvD›U (U) gy`vivev †mwfsm Current A/c (AWCA) (k) Mudaraba Savings A/c (MSA) (l)
Mudaraba Special Notice Deposit A/c (MSND) (m) Mudaraba
GKvD›U (V) gy`vivev †¯úkvj †bvwUk wW‡cvwRU GKvD›U (W) gy`vivev Uvg© Term Deposit A/c (MTDA) (n) Mudaraba Hajj Saving A/c
wW‡cvwRU GKvD›U (X) gy`vivev nÀ †mwfsm GKvD›U Ges (Y) gy`vivev †mvbvjx (MHSA) (o) Mudaraba Monthly Profit Scheme (MMPS) (p)
Mudaraba Sonali Monthly Deposit Scheme(SMDS) and (q)
gvš’wj wW‡cvwRU ¯‹xg| wW‡cvwRU ¯‹xg¸‡jv Pvjy Kivi d‡j e¨vs‡Ki AvgvbZ Sonali Monthly Denmohor Deposit Scheme(SMDDS). As a
D‡jøL‡hvM¨ cwigv‡Y e„w× †c‡q‡Q| 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, 2020 ch©šÍ †mvbvjx e¨vs‡Ki 1226wU kvLvi †gvU AvgvbZ Ges SBL with its 1226 branches mobilized deposits of Tk.
1,258,786.26 million and disbursed Tk. 586,232.72 million
FY I AwMÖ‡gi cwigvY ùvwo‡q‡Q h_vµ‡g 1,258,786.26 wgwjqb UvKv as loans and advances up to 31 December, 2020. During
Ges 586,232.72 wgwjqb UvKv| e¨vs‡Ki Avq 2019 mv‡ji 76,810.20 the year 2020, total income of the Bank was Tk. 84,777.90
million, registering 10.40% increase from previous year’s
wgwjqb UvKv †_‡K 10.37% e„w× †c‡q 84,779.88 wgwjqb UvKvq ùvwo‡q‡Q| income which was Tk. 76,810.20 million. The total
expenditure stood at Tk. 63,252.95 million in 2020 showing
e¨vs‡Ki e¨q e„w× †c‡q 63,252.95 wgwjqb UvKvq ùvwo‡q‡Q hv c~e©eZ©x
an increase of 5.93 percent as against total expenditure of
eQ‡ii 59,709.78 wgwjqb UvKvi Zzjbvq 5.93% †ekx| wbU gybvdv n‡q‡Q Tk. 59,709.78 million of previous year. Net profit after tax
stood at Tk. 3,234.79 million in 2020 which was Tk. 2,710.05
3,234.79 wgwjqb UvKv hv 2019 mv‡j wQj 2,710.05 wgwjqb UvKv| million in 2019.
Avq ch©v‡jvPbv weeiYx Review of Income Statement

Review of Income Statement (Tk. in million)
2020 2019 Position as of
Sl. Changes
Types of Income (Tk. in million)
No %
2020 2019
84779.88
76810.2
1. Interest Income 31666.10 35955.02 (11.93)

40289.94
35955.02
2. Investment Income 40289.94 28144.09 43.16

31666.1
28144.09
3. Commission/
Exchange/ 12273.49 11623.39 5.59
12273.49
11623.39
Brokerage
1087.7
4. Other operating
550.35
550.35 1087.70 49.58

Interest Investment Commission/ Other Total
Income
Income Income Exchange/ operating Income
Brokerage Income 5. Total Income 84779.88 76810.20 10.37
my` Avq Interest Income

†mvbvjx e¨vsK wjwg‡UW Gi my` Avq 2019 mv‡ji 35,955.02 wgwjqb UvKv SBL’s interest income stood at Tk. 31,666.10 million in 2020
†_‡K 11.93% n«vm †c‡q 2020 mv‡j ùvwo‡q‡Q 31,666.10 wgwjqb UvKvq| from Tk. 35,955.02 million in 2019 which is 11.93 percent
lower than the previous year. Interest income decreased
evsjv‡`k e¨vsK KZ©„K 2020 mv‡j F‡Yi my`nv‡ii m‡e©v”P mxgv 9% wba©vi‡Yi
mainly due to the implementation of the highest ceiling
cvkvcvwk †kÖYxK„Z FY I AwMÖg †_‡K Av`v‡qi cwigvb n«vm cvIqvq my` Avq of interest of loans at 9% by Bangladesh Bank as well as
n«vm †c‡q‡Q| decrease of classified loan recovery in 2020.
my` e¨q Interest Expenses
2020 mv‡j e¨vs‡Ki Avgvb‡Zi Ici my` eve` e¨q c~e©eZ©x eQ‡ii Zzjbvq Interest expenses of SBL increased by 4.55 percent to Tk.
41,906.61 million in 2020 from Tk. 40,082.80 million in
4.55% e„w× †c‡q ùvwo‡q‡Q 41,906.61 wgwjqb UvKvq| 2019 mv‡j Gi
2019. Interest expenses increased mainly due to decrease
cwigvY wQj 40,082.80 wgwjqb UvKv| my`wenxb I wb¤œ myèvnx AvgvbZ n«vm of no cost and low cost deposits and increase of high cost
Ges D”P myèvnx AvgvbZ e„w× cvIqvq my` e¨q e„w× †c‡q‡Q| deposits.
wbU my` Avq Net Interest Income
2020 mvj †k‡l e¨vs‡Ki wbU my` Avq 2019 mv‡ji Zzjbvq 148.09% n«vm In 2020, net interest income of SBL decreased by 148.09
†c‡q FYvZ¡K 10,240.50 wgwjqb UvKvq ùvwo‡q‡Q| c~e©eZ©x eQ‡i Gi cwigvY percent to negative Tk. 10,240.50 million from negative
Tk. 4,127.78 million in 2019. Net interest income decreased
wQj FYvZ¡K 4,127.78 wgwjqb UvKv| g~jZt my` Avq n«vm cvIqvq wbU my` mainly due to decrease in interest income of the Bank.
Avq n«vm †c‡q‡Q|
Annual Report 2020

YEAR OF EXCELLENCE
my` ewnf‚©Z Avq Non-interest Income

Kwgkb, G·‡PÄ I Ab¨vb¨ cwiPvjb Avq Gi mgš^‡q MwVZ my` ewnf‚©Z Avq Total non-interest income comprising commission,
MZ eQ‡ii 12,711.09 wgwjqb UvKv †_‡K 0.86% e„w× †c‡q‡Q| 2020 exchange and other operating income of the Bank,
increased by 0.86 percent, stood at Tk. 12,823.84 million in
mv‡j Gi cwigvY 12,823.84 wgwjqb UvKv| 2020 compared to Tk. 12,711.09 million in 2019.
Comparison of Revenue Comparison of Revenue

2020 2019
48%
Other operating Income
Interest Income
Commission/Exchange/
Investment Income Brokerage
37%
Commission/Exchange
Investment Income
/ Brokerage
Other operating
14% Income Interest Income
1% 0% 20% 40% 60% 80% 100%
wewb‡qvM Avq Investment Income

e¨vs‡Ki wewb‡qvM n‡Z cÖvß Avq 2019 mv‡ji Zzjbvq 43.16% e„w× †c‡q Investment income of the SBL, increased by 43.16 percent,
2020 mv‡j ùvwo‡q‡Q 40,289.94 wgwjqb UvKv| 2019 mv‡j Gi cwigvY stood at Tk. 40,289.94 million in 2020 compared to Tk.
wQj 28,144.09 wgwjqb UvKv| 28,144.09 million in 2019.
cwiPvjb e¨q Operating expenses

2020 mv‡j e¨vs‡Ki cwiPvjb e¨q Gi cwigvY ùvwo‡q‡Q 21,346.34 wgwjqb Total operating expenses of the Bank during 2020 stood
UvKv; c~e©eZ©x eQ‡i Gi cwigvY wQj 19,626.98 wgwjqb UvKv| G †ÿ‡Î at Tk. 21,346.34 million which was Tk. 19,626.98 million
in 2019. This controlled increase was 8.76% which was
e„w×i nvi 8.76%| cwiPvjbv cl©‡ì mg‡qvwPZ w`Kwb‡`©kbv Ges e¨vsK
possible due to proper and timely direction of the Board of
eë¯’vcbvi wbweo Z`viwKi d‡j cwiPvjb e¨q wbqš¿‡Y ivLv m¤¢e n‡q‡Q| wb‡¤œ Directors and the management of the Bank. The summary
cwiPvjb e¨‡qi Zzjbvg~jK Ae¯’v D‡jøL Kiv n‡jv t and comparison of operating expenses is given below:
cwigvb cwieZ©b Change

weeiY Position as of
% Particulars in %
2020 2019 2020 2019
†eZb I fvZvw` 14424.17 13879.89 3.92 Salary and allowances 14424.17 13879.89 3.92
Rent,taxes,Insurance and 1110.08 1225.29 (9.40)
fvov, Ki, exgv, we`ÿr BZ¨vw` 1110.08 1225.29 (9.40) Electricity etc.
Legal Expense 34.10 41.64 (18.11)
AvBbx LiP 34.10 41.64 (18.11)
Postage, Stamp, 41.15 50.89 (19.14)
WvK, ÷¨v¤ú, †Uwj‡dvb BZ¨vw` 41.15 50.89 (19.14) Telecommunications
Stationary, Printing and 159.11 198.97 (20.03)
Qvcv I gwbnvix Ges weÁvcb e¨q 159.11 198.97 (20.03) Advertisements etc.
cÖavb wbe©vnx‡ì †eZb I wd 7.81 7.68 1.69 Chief Executive’s Salary and 7.81 7.68 1.69
fees
cwiPvjK‡ì wd 3.62 4.88 (25.82)
Director’s Fees 3.62 4.88 (25.82)
wbixÿKM‡bi wd 4.28 3.87 10.59 Auditor’s Fees 4.28 3.87 10.59
AePq, †givgZ I iÿbv‡eÿb e¨q 793.71 580.47 36.74 Depreciation, repairs and 793.71 580.47 36.74
maintenance
Ab¨vb¨ cwiPvjb e¨q 4768.31 3633.40 31.24
Other Operating Expense 4768.31 3633.40 31.24
†gvU 21346.34 19626.98 8.76 Total 21346.34 19626.98 8.76
78
DIRECTORS' REPORT
Comparison of Operating Expenses Comparison of Operating Expenses

2020 2019
67%
Other Operating Expense
Depreciation, repairs and maintenance

Salary, allowances and fees
Auditor’s Fees
Director’s Fees Rent.,taxes,Insurance,

Legal etc
Chief Executive’s Salary and fees
Stationary, Printing and… Stationary, Postage,

Stamp etc
Postage,Stamp,Telecommunications
Legal Expense Depreciation, repairs and

maintenance
Rent.taxes,Insurance and Electricity etc 5%
Salary and allowances Other Operating Expense
4% 1%
0% 20% 40% 60% 80% 100% 23%
cwiPvjbMZ djvdj Summary of operating results

2020 I 2019 mv‡ji cwiPvjbMZ djvd‡ji mvims‡ÿc wb‡¤œ Zz‡j aiv The summary of operating results with the variation between
n‡jvt the year 2020 and 2019 is given below:
(Tk. in million)
Amount Change
Particulars
2020 2019 in %
Operating Result
2020 2019 Interest income 31666.10 35955.02 (11.93)
Interest Expense 41906.61 40082.80 4.55
42873.27
Net Int. Income (10240.50) (4127.78) (148.09)

Non-Int. Income 12823.84 12711.10 0.86
36727.41
Investment Income 40289.94 28144.09 43.16

Total Operating Income 42873.27 36727.41 16.73
21 346.34
Total Operating Expense 21346.34 19626.98 8.76

1 9626.98
Profit before Provision 21526.93 17100.43 25.87

1 1 91 9.32
Provision for Loans and

9377.42
11919.32 9377.42 27.09

Advance
4265.45
3234.35
2969.91
271 0.05
2043.05
21 07.8
Provision for diminution

(884.22) 1087.69 3.60
in value of investment
Total Total Provision Other Provision For Net Profit Other Provision 5149.67 1882.22 173.60
Operating Operating for Loans Provision Taxation after
Income Expense and taxation Profit Before Taxes 5342.15 4753.10 12.38
Advance
Provision For Taxation 2107.80 2043.05 3.60
Net Profit after taxation 3234.35 2710.05 18.99
AvqK‡ii wecix‡Z cÖwfkb Provision for Income Tax

2020 mv‡ji Av‡qi wecix‡Z 505.98 wgwjqb UvKv Ki wnmv‡e cÖwfkb ivLv Provision of Tk. 505.98 million was made to meet current
year’s income tax compared to Tk. 455.44 million in the
n‡q‡Q hv c~e©eZ©x eQ‡i wQj 455.44 wgwjqb UvKv| preceding year.
Ki cieZ©x gybvdv
Profit after Tax
2020 mv‡j e¨vs‡Ki Ki cieZ©x gybvdv ùvwo‡q‡Q 3,234.35 wgwjqb UvKv| The net profit after taxation stood at Tk. 3,234.35 million in
2020 as against Tk. 2,710.05 million in 2019. The increase in
2019 mv‡j Gi cwigvY wQj 2,710.05 wgwjqb UvKv| cwiPvjb gybvdv
profit after tax is attributed to increase in operating income
e¨vcKfv‡e e„w× cvIqvq evsjv‡`k e¨vs‡Ki wb‡`©kbv †gvZv‡eK wewfbœ Lv‡Z although sufficient provisions against various segments as
ch©vß cÖwfkb msiÿ‡Yi ciI Ki cieZ©x gybvdv e„w× ‡c‡q‡Q| per directions of Bangladesh Bank have been kept.
Annual Report 2020

YEAR OF EXCELLENCE
mswewae× wiRvf© Statutory Reserve

e¨vsK †Kv¤úvbx AvBb, 1991 (ms‡kvwaZ-2018) †gvZv‡eK cwi‡kvwaZ As per the Bank Company Act, 1991 (amended in 2018), 20
g~ja‡bi mgvb bv nIqv ch©šÍ Ki c~e© gybvdvi 20% Statutory Reserve G percent of profit before tax is required to be transferred to
msi¶Y Ki‡Z nq| G eQi e¨vs‡Ki Kic~e© gybvdv n‡Z 1,068.43 wgwjqb Statutory Reserve until the balance of the same reaches to
the level of paid up capital. For this purpose, an amount of
UvKv D³ wnmv‡e msi¶Y Kiv n‡q‡Q| Tk. 1,068.43 million has been transferred to statutory
mvgvwRK `vqe×Zv Lv‡Z wiRvf© Reserve for Corporate Social Responsibility
evsjv‡`k e¨vs‡Ki MvBWjvBÝ †gvZv‡eK 2021 mv‡ji mvgvwRK `vqe×Zv In line with Bangladesh Bank Guidelines, a total of Tk. 103.71
(CSR) Lv‡Zi LiP †gUv‡bvi Rb¨ 2020 mv‡ji wbU gybvdv n‡Z 103.71 million has been kept for CSR which has been provided
from net profit after tax for the year 2021 to meet Corporate
wgwjqb UvKv G Lv‡Z msiÿY Kiv n‡q‡Q| 2020 mv‡j G Lv‡Z †gvU Li‡Pi Social Responsibility (CSR) expenses. In 2020, CSR expenses
cwigvY wQj 18.66 wgwjqb UvKv| of the Bank were Tk. 18.66 million.
CSR activities of SBL CSR activities of SBL
gybvdvi D‡jøL‡hvM¨ m~PKmgyn Significant Profitability Ratio

2020 Ges 2019 mv‡ji gybvdv wb‡`©kK mgyn wb¤œiƒc: The key profitability indicators of the SBL for the years 2020
and 2019 are highlighted below:
(In Percentage)
Summary of Oparating Result
Change
2020 2019
Amount (%)
74.60
in %
74.13
Particulars
62.65
2020 2019
53.19
Return on Investment (ROI) 7.13 5.98 1.15
Non-interest income to total

62.65 53.19 9.46
income
7.13
5.98
4.21
4.21
3.92
3.53
Cost income ratio 74.60 74.13 0.47

0.20
0.21
Return on Non-interest Cost income Profit after tax Return on Return on Profit after tax to total income 4.21 3.53 0.68
Investment income to total ratio to total income assets(ROA) equity (ROE)
(ROI) income
Return on assets (ROA) 0.21 0.20 0.01
Return on equity (ROE) 4.21 3.92 0.27
e¨v‡jÝkxU ch©v‡jvPbv Review of Balance Sheet

†gvU m¤ú` Total assets
e¨vs‡Ki m¤ú‡ì cwigvY 2019 mv‡ji 1,472,601.35 wgwjqb UvKv n‡Z Total assets of the Bank stood at Tk. 1,591,233.76 million as
on 31 December 2020 compared to that of Tk. 1,472,601.35
8.06% e„w× †c‡q 2020 mv‡j 1,591,233.76 wgwjqb UvKvq DbœxZ million as on 31 December 2019 registering a positive
growth of 8.06 percent. The increase in assets of SBL is
n‡q‡Q| cÖvBgvix wWjvi wnmv‡e wmwKDwiwU I GmGjAvi (SLR) G msi¶‡Yi largely driven by growth of deposits which are ultimately
D‡Ï‡k¨ iw¶Z ewa©Z Avgvb‡Zi Kvi‡YB m¤ú‡ì G cÖe„w× n‡q‡Q| used in holding of securities or for the SLR purpose as a
primary dealer.

e¨vs‡Ki †gvU m¤ú‡ì mvi-ms‡ÿc wb¤œiƒct A summary of assets of SBL is given below:
Summary of Assets (Tk. in million)

2020 2019
Other assets Growth

Particulars 2020 2019
Fixed assets in %
Loans and advances
Cash in Hand 7300.87 7691.43 (5.08)
Investments
Money at call and short notice Balance with

Balance with other Banks
and financial Institution
Bangladesh bank and 83801.30 101073.00 (17.09)
Balance with Bangladesh bank its agent Bank
and its agent Bank
Cash in Hand Balance with other

0% 20% 40% 60% 80% 100% Banks and financial 52308.81 87160.52 (39.99)
Institution
Cash in Hand
Money at call and
9031.30 16274.41 (44.51)
Balance with Bangladesh bank short notice
40% and its agent Bank
37% Balance with other Banks and Investments 629691.45 500386.89 25.84
financial Institution
Money at call and short notice Loans and advances 586232.72 551026.29 6.39
Investments Fixed assets 33891.29 33465.56 0.09
Loans and advances Other assets 188976.02 175523.24 7.96

1% 3%
2%
5%
12% Fixed assets Total assets 1591233.76 1472601.35 8.06
nv‡Z bM` I evsjv‡`k e¨vsK I Gi G‡R›U e¨vs‡K e¨v‡jÝ

Cash in Hand and Balances with BB and its
Agents
31 wW‡m¤î 2020 Zvwi‡L nv‡Z bM` I evsjv‡`k e¨vsK I Gi G‡R›U e¨vs‡K As on 31 December 2020, cash in hand and balances with
Bangladesh Bank and its agent banks stood at Tk. 91,102.17
e¨v‡jÝ Gi cwigvY ùvwo‡q‡Q 91,102.17 wgwjqb UvKv, hv c~e©eZ©x eQ‡ii million as against Tk. 108,764.43 million as on 31 December
2019 registering a growth of 16.24 percent. The growth in
108,764.43 wgwjqb UvKvi Zzjbvq 16.24% Kg| Gi d‡j e¨vs‡Ki bM` deposits increased the Cash Reserve Requirement (CRR)
mwÂwZi (CRR) cwigvb e„w× †c‡q G eQi 7.70% G ùvwo‡q‡Q, hv Kgc‡ÿ which should be currently maintained at 4.00 percent
and SBL has maintained 7.70 percent in the year under
4.00% ivLv eva¨Zvg~jK| ZvQvov wewfbœ †Wwjfvix P¨v‡b‡j MÖvnK‡ì Pvwn`v review. Besides, adequate cash was required to provide
uninterrupted cash services to the growing number of
†gUv‡bvi Rb¨ wbiwew”Qbœ K¨vk mieiv‡niI eë¯’v Kiv nq| we¯ÍvwiZ weeiY customers through multiple delivery channels. Details have
AwW‡UW wnmv‡ei 3 bs †bv‡U wea„Z i‡q‡Q| been given at notes#3 to the accounts.
Balance with Other Banks and Financial
e¨v‡jÝ DB_ Av`vi e¨vsKm GÛ wdb¨vwÝqvj Bbw÷wUDkb 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 msiÿ‡Yi ci
to finance loan portfolio and investments including SLR,
AwZwi³ dv‡Ûi mwVK eënvi Ges e¨vs‡Ki gybvdv e„w×i j‡ÿ¨ Ab¨vb¨ e¨vsK has been placed with other banks and financial institutions
as term deposits for optimizing the utilization of funds and
I Avw_©K cÖwZôv‡b dv‡Ûi GKwU Ask Rgv ivLv nq| †UªRvwi I evwY‡R¨
profit of the Bank. In addition, the Treasury Management
A_©vq‡bi Kvh©µg myôzfv‡e cwiPvjbvi Rb¨ e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi Division of the Bank has to maintain some special notice
deposit (SND) accounts and current deposit (CD) accounts
g¨v‡bR‡g›U wWwfkb KZ…©K †`‡k I †`‡ki evB‡i Aew¯’Z Ab¨vb¨ e¨vsK I
with other banks and financial institutions in and outside
Avw_©K cªwZôv‡b SND Ges PjwZ wnmve cwiPvjbv Kiv nq| wewb‡qvM Ges the country for smooth functioning of treasury operations
and trade finance. Because of simultaneous increase in
FY I AwMÖ‡gi e„w×RwbZ Kvi‡Y Ab¨vb¨ e¨vsK I Avw_©K c&ªwZôv‡b e¨v‡j‡Ýi
investment and loans and advances, balances outstanding
cwigvY 2019 mv‡ji 87,160.52 wgwjqb UvKv ‡_‡K 39.99% n«vm †c‡q G with other banks and financial institutions decreased to Tk.
52,308.81 million in 2020 from Tk. 87,160.52 million in 2019
eQi 52,308.81 wgwjqb UvKvq ùvwo‡q‡Q| Gi g‡a¨ 40,680.38 wgwjqb
registering a negative growth of 39.99 percent. Out of this
UvKv evsjv‡`‡ki Ab¨vb¨ e¨vsK I Avw_©K cÖwZôv‡b Ges 11,628.43 wgwjqb amount, Tk. 40,680.38 million has been kept in banks and
financial institutions in Bangladesh and the rest amount Tk.
UvKv we‡`kx e¨vs‡K iwÿZ Av‡Q| we¯ÍvwiZ weeiY AwW‡UW wnmv‡ei 4 bs
11,628.43 million has been kept in foreign banks. Details of
†bv‡U wea„Z i‡q‡Q| balance with other banks and financial institutions are given
at notes# 4 to the accounts.
Annual Report 2020

YEAR OF EXCELLENCE
gvwb GU Kj Ab kU© †bvwUk Money at Call on Short Notice

gvwb GU Kj GÛ kU© †bvwUk Gi cwigvY 2020 mv‡j ùvwo‡q‡Q 9,031.30 Money at call and short notice decreased by 44.51 percent
wgwjqb UvKv hv c~e©eZ©x eQ‡ii 16,274.41 wgwjqb UvKvi Zzjbvq 44.51% to Tk. 9,031.30 million at the end of 2020 compared to Tk.
Kg| 16,274.41 million at the end of 2019.
wewb‡qvM Investments
e¨vs‡Ki †gvU wewb‡qvM Gi cwigvY 2019 mv‡ji 500,386.89 wgwjqb The Bank’s total investments stood at Tk. 629,691.45 million
UvKv †_‡K 129,304.56 wgwjqb UvKv ev 25.84% e„w× †c‡q 2020 mv‡j in 2020 which was Tk. 500,386.89 million in 2019 showing
an increase by Tk. 129,304.56 million or 25.84 percent. The
629,691.45 wgwjqb UvKvq ùvwo‡q‡Q| Gi g‡a¨ D‡jøL‡hvM¨ n‡”Q miKvwi investments mainly include Government securities of Tk.
550,695.16 million or 87.45 percent of total investments
wmwKDwiwU Lv‡Z 550,695.16 wgwjqb UvKv wewb‡qvM, hv †gvU wewb‡qv‡Mi
maintained as a primary dealer in addition to cover SLR
87.45%| e¨vsK 13% mswewae× Zvij¨ mwÂwZi ¯’‡j 37.02% mwÂwZ requirement. In place of 13 percent SLR, SBL has maintained
37.02 percent with Bangladesh Bank which is an indication
msiÿY K‡i‡Q, hv e¨vs‡Ki kw³gËvi cwiPvqK| of the strength of the Bank.
FY I AwMÖg Loans and Advances

†mvbvjx e¨vsK K…wl, wkí, GmGgB I evwY‡Rï Drcv`bkxj I AMÖvwaKvi Loans and advances constitute the largest portion in asset
side of SBL’s Balance Sheet which was Tk. 586,232.72 million
Lv‡Z A_©vqb Ae¨vnZ †i‡L‡Q| e¨vs‡Ki †gvU m¤ú‡ì eo Ask `Lj K‡i or 36.83 percent of total assets in 2020. SBL’s loans and
Av‡Q FY I AwMÖg, hvi w¯’wZ 586,232.72 wgwjqb UvKv ev †gvU m¤ú‡ì advances increased by 6.39 percent from Tk. 551,026.29
million in 2019 to Tk. 586,232.72 million in 2020. SBL has
36.83% Ges e„w×i nvi 6.39%| e¨vs‡Ki cÖ`vbK…Z F‡Yi cwigvb 2019 continued its lending operations in productive and priority
mv‡j wQj 551,026.29 wgwjqb UvKv| RvZxq AMÖvwaKvi gyjK miKvwi, sectors covering agriculture, industry, SME, trade and
commerce. The Bank has extended credit to Government,
cvewjK I cÖvB‡fU LvZmgy‡n e¨vsK FY myweav cÖ`vb Ki‡Q| e¨vs‡Ki eZ©gvb public and private sectors in line with national priority. The
GwW †iwkI 46.57%| 2020 mvj †k‡l ‡kÖYxK…Z FY I AwMÖ‡gi cwigvY percentage of total loans and advances against total deposit
(AD ratio) is 46.57%. Details of loans and advances are given
ùvwo‡q‡Q 107,673.90 wgwjqb UvKv, hv c~e©eZ©x eQ‡i wQj 111,993.90 at notes# 7 to the accounts. The amount of classified loans
wgwjqb UvKv| bb cvidwg©s F‡Yi cwigvY 2019 mv‡ji 20.32% †_‡K n«vm and advances stood at Tk. 107,673.90 million in 2020 as
against Tk. 111,993.90 million in 2019. Percentage of non-
†c‡q 18.37% G ùvwo‡q‡Q| we¯ÍvwiZ weeiY wbixwÿZ wnmv‡ei 7 bs †bv‡U performing loans of SBL was 18.37 in 2020 which was 20.32
wea„Z i‡q‡Q| percent in 2019.
LvZ wfwËK †gvU FY I AwMÖg Composition of Total Loans and Advances

of the SBL
µ: FY I AwMÖ‡gi
2020 2019 cwieZ©b (%) Types of Loans and Change
bs LvZmgy‡ni bvg Sl. 2020 2019
Advances In %
1 K…wl 46606.89 50387.65 (7.50) Agricultural/Rural

1 46606.89 50387.65 (7.50)
Credit
2 gvB‡µv †µwWU 12197.52 12117.31 0.66
2 Micro Credit 12197.52 12117.31 0.66
3 wkí FY 70902.27 74296.59 (4.57) 3 Industrial Credit 70902.27 74296.59 (4.57)
4 K…wlwfwËK wkí cÖKí 57427.94 70603.19 (18.66) Agro-based

4 57427.94 70603.19 (18.66)
Industrial Credit
5 AvšÍR©vwZK evwYR¨ 91021.66 94602.39 (3.79) 5 International Trade 91021.66 94602.39 (3.79)
6 Gm Gg B A_©vqb 71310.90 22363.11 218.88 6 SME Finance 71310.90 22363.11 218.88
General Advance &

7 mvaviY FY I Ab¨vb¨ 186129.32 172374.25 7.98 7 186129.32 172374.25 7.98
Others
8 evsjv‡`k wegvb †jvb 50636.22 54281.80 (6.72) Bangladesh Biman

8 50636.22 54281.80 (6.72)
Loan
me©‡gvU 586232.72 551026.29 6.39 Total 586232.72 551026.29 6.39
82
DIRECTORS' REPORT
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 FY To accelerate the rate of credit growth, some new loan/
†cÖvWv±¸‡jv n‡jv: (K) evB mvB‡Kj †jvb ¯‹xg di ¯‹zj †Mvwqs ÷z‡W›Um (L) investment products were introduced by the Bank, namely
(a) Bicycle Loan Scheme for School Going Students (b)
¯§j GÛ wgwWqvg G›UvicÖvBR (GmGgB) †jvb (M) †¯úkvj ¯§j †jvb (N) Small and Medium Enterprise (SME) Loan (c) Special Small
iæivj ¯§j dvwg©s †jvb (O) †cvfvwU© Gwjwf‡qkb Gwm÷¨v›U †cÖvMÖvg (P) cÖevmx Loan (d) Rural Small Farming Loan (e) Rural Small Business
Loan (f) Poverty Alleviation Assistance Programme (g)
Kg©ms¯’vb FY cÖKí (Q) wkÿv FY (R) Rv‡Mv bvix MÖvgxY FY (S) gyw³‡hv×v Probashi Karmasangsthan Rin Prokalpo (h) Education Loan
FY (T) d‡ib GWz‡Kkb †jvb †cÖvMÖvg (U) nvDR‡nvì wWD‡iej ¯‹xg AvÛvi (i) Jago Nari Grameen Rin (j) Term loan to Freedom Fighters
(k) Foreign Education Loan Program (FELP) (l) Household
evB 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 cÖ`v‡bi gva¨‡g
extending various credit facilities to both public and private
†mvbvjx e¨vsK RvZxq A_©bxwZ‡Z we‡kl Ae`vb †i‡L P‡j‡Q| mvaviY FY sector organizations and entities. In the year 2020, the Bank
disbursed loans amounting to Tk. 45,400.00 million to the
Lv‡Z e¨vsK 2020 mv‡j †gvU 45,400.00 wgwjqb UvKv FY weZiY K‡i‡Q| private sector which was Tk. 38,907.00 million in 2019 under
2019 mv‡j FY weZi‡bi cwigvY wQj 38,907.00 wgwjqb UvKv| G Lv‡Z the general credit head. On the other hand, classified loans
under general credit amounting to Tk. 2,230.00 million have
†kÖYxK…Z FY n‡Z Av`vq n‡q‡Q 2,230.00 wgwjqb UvKv hvi cwigvY 2019 been recovered during the year which was Tk. 2,810.80
mv‡j wQj 2,810.80 wgwjqb UvKv| million in 2019. A tabular presentation shows the overall
position of General Credit of the Bank.
e¨vs‡Ki mvaviY FY Lv‡Zi mvwe©K Ae¯’v wb¤œiƒct A tabular presentation shows the overall position of General
Credit of the Bank.
cwieZ©b Change
µ: bs wk‡ivbvg 2020 2019 Sl. Particulars 2020 2019
(%) In %
1 †gvU w¯’wZ 158750 142860 10.01 1 Total Outstanding 158750 142860 10.01
2 †gvU weZiY 45400 45770 (0.81) 2 Total Disbursement 45400 45770 (0.81)
3 †gvU Av`vq 2230 6010 (62.90) 3 Total Recovery 2230 6010 (62.90)
K…wlwfwËK wkí FY cÖKí Agro-based Industrial Finance Program

mvwe©Kfv‡e †`‡ki †UKmB Av_©-mvgvwRK Dbœq‡bi j‡ÿ¨ †`‡ki K…wl Lv‡Zi To ensure the country’s agricultural development as well as
overall socio-economic sustainability, Sonali Bank Limited
Dbœq‡b †mvbvjx e¨vsK wjwg‡UW K…wlwfwËK wkí FY cÖK‡íi Aax‡b K…wlwfwËK
has extended credit facilities to the agro-based industries
wk‡í FY myweav cÖ`vb Ki‡Q| 2020 mv‡j G Lv‡Z e¨vsK me©‡gvU 4,203.80 under agro-based industrial sector financing scheme.
In the year 2020, SBL disbursed Tk. 4,203.80 million and
wgwjqb UvKv FY weZiY K‡i‡Q Ges Ae‡jvcbmn wewfbœ K…wlwfwËK cÖKímgyn
recovered Tk. 1,523.90 million including write-off loans
n‡Z 1,523.90 wgwjqb UvKv Av`vq K‡i‡Q| Av_©-mvgvwRK Dbœq‡b e¨vsK from different agro-based projects. The Bank is extending
project loans on simple terms and conditions through 120
Zvi mywbw`©ó 120wU kvLvi gva¨‡g mnR k‡Z© cÖKí FY cÖ`vb Ki‡Q| ZvQvov
designated branches for improvement of socio-economic
e¨vs‡Ki cÖvq mKj kvLv n‡Z G cÖK‡íi wkí Lv‡Z PjwZ gyjab FY weZiY conditions. Besides, working capital loans to industries are
Kiv n‡”Q| Zvi g‡a¨ we‡RGgwmÕi Aax‡b 5wU RyU wgj I 21wU †emiKvix RyU also being disbursed by almost all the branches throughout
the country. It may be mentioned that a large amount of
wgj I RyU w¯úwbs wg‡j D‡jøL‡hvM¨ cwigvY FY weZiY Kiv n‡q‡Q| 2020 loan has been disbursed to 5 jute mills under BJMC and
mvj ch©šÍ G Lv‡Z FY w¯’wZi cwigvb 57,427.94 wgwjqb UvKv| 21 private jute mills and jute spinning mills. The amount of
outstanding loan stood Tk. 57,427.94 million in 2020.
†kÖYxK…Z FY Av`vq Kvh©µg Classified Loan Recovery Program

2020 mv‡j e¨vs‡Ki †kÖYxK…Z F‡Yi cwigvY ùvwo‡q‡Q 107,673.90 The amount of classified loans stood at Tk. 107,673.90
million which is 18.37 percent of the Bank’s total loan of Tk.
wgwjqb UvKv A_©vr e¨vs‡Ki †gvU FY I AwMÖg 586,232.72 wgwjqb UvKvi 586,232.72 million as on 31 December, 2020. The amount
18.37%| 2019 mv‡j †gvU 551,026.29 wgwjqb UvKvi FY I AwMÖ‡gi of the classified loan was Tk. 111,993.90 million (20.32
percent of bank’s total loan) against total outstanding loans
g‡a¨ 111,993.90 wgwjqb UvKv ev 20.32% †kÖYxK…Z wQj| †kÖYxK…Z I and advance of Tk. 551,026.29 million in 2019. The amount
Annual Report 2020

YEAR OF EXCELLENCE
Ae‡jvcbK…Z FY n‡Z 2020 mv‡j Av`v‡qi cwigvY h_vµ‡g 10,501.50 of recovery against classified and written off loans in 2020
wgwjqb UvKv Ges 544.40 wgwjqb UvKv| eQ‡ii ïiæ‡ZB Av`vj‡Zi evwn‡i are Tk. 10,501.50 million and Tk. 544.40 million respectively.
The Bank made all out efforts to recover non-performing
Av‡cvm idvi wfwË‡Z Av`vq, ewa©Z my` gIKzd myweav Ges evsjv‡`k e¨vs‡Ki loans by strengthening recovery measures like outside
cwjwm I A_© gš¿Yvjq Gi MvBWjvBÝ †gvZv‡eK wiwmwWDjKi‡Yi gva¨‡g court settlement, extending interest exemption facilities and
rescheduling as per Bangladesh Bank policies and Ministry
bb-cvidwg©s †jvb n‡Z Av`v‡qi Kvh©µg †Rvi`vi Kiv nq| wb‡¤œ wewfbœ
of Finance’s guidelines. Table below shows the status of
Av`vj‡Zi gva¨‡g 2020 I 2019 mvj ch©šÍ wewfbœ F‡Yi wecix‡Z gvgjvi litigation in 2020 and in 2019 against the defaulters and the
Ae¯’v Zz‡j aiv n‡jvt amount recovered against classified loans:
gvgjvi Ae¯’v Litigation Status

gvgjvi msL¨v gvgjvi msL¨v Outstanding of Outstanding of Disposal /
2020 mv‡j Av`vq suits as on 2020 suits as on 2019 Recovery in 2017
µ: 2020 2019 Sl.
Name of the
Av`vj‡Zi bvg Court
bs
msL¨v cwigvb msL¨v cwigvb msL¨v cwigvb Number Amount Number Amount Number Amount
1 A_©FY Av`vjZ 4484 236936.90 3981 209385.50 442 44058.70 1 Artharin Adalat 4484 236936.90 3981 209385.50 442 44058.70
2 mvwU©wd‡KU Av`vjZ 14556 782.10 13978 738.00 1209 60.80 2 Certificate Adalat 14556 782.10 13978 738.00 1209 60.80
3 ‡`Dwjqv Av`vjZ 01 1.10 01 1.10 -- - 3 Dewlia Adalat 01 1.10 01 1.10 -- -
4 Ab¨vb¨ Av`vjZ 977 40490.40 882 39683.30 59 45.20 4 Other Adalat 977 40490.40 882 39683.30 59 45.20
me©‡gvU 20018 278210.50 18842 249810.90 1710 44164.70 Total 20018 278210.50 18842 249810.90 1710 44164.70
`vq‡`bvi mvi ms‡ÿc

Summary of Liabilities
µ: Sl. Particulars 2020 2019 Growth%
wk‡ivbvg 2020 2019 cwieZ©b(%)
bs
Borrowings
Ab¨vb¨ e¨vsK I other Banks
1 Avw_©K cÖwZôvb 549.25 604.18 (9.09) 1 and financial 549.25 604.18 (9.09)
n‡Z avi institutions and
agents
2 †gvU AvgvbZ 1258786.26 1158787.78 8.63 2 Total deposits 1258786.26 1158787.78 8.63
3 Ab¨vb¨ †`bv 246282.64 245016.75 0.34 3 Other Liabilities 246282.64 245016.78 0.34
4 †gvU †`bv 1505618.16 1404408.71 7.22 4 Total Liabilities 1505618.16 1404408.74 7.22
Borrowings from other banks, Financial

Ab¨vb¨ e¨vsK, Avw_©K cÖwZôvb Ges G‡R›U n‡Z avi
Institutions and Agents
2020 mv‡j evsjv‡`k e¨vsK Gi cyb:A_©vqb Gi AvIZvq †mvbvjx e¨vsK Sonali Bank Limited has been given an amount of Tk.
wjwg‡UW‡K 549.25 wgwjqb UvKv avi †`qv n‡q‡Q| Gi g‡a¨ 549.18 549.25 million only by Bangladesh Bank for refinance in
wgwjqb UvKv cvU Lv‡Z cyb:A_©vqb Ges Aewkó UvKv RHFG †cÖv‡R‡± 2020 of which Tk. 549.18 million for refinance against jute
sector and rest of the amount for refinance against RHFG
cyb:A_©vqb Gi Rb¨ avi †`qv n‡q‡Q| GQvov †`‡ki †fZ‡i I evB‡i Ab¨
project. Except these, it has no borrowing inside or outside
†Kvb cÖwZôv‡bi wbKU e¨vs‡Ki †Kvb avi †bB| 2019 mv‡j e¨vs‡Ki av‡ii Bangladesh. The borrowed amount was Tk. 604.18 million
cwigvY wQj 604.18 wgwjqb UvKv| in 2019.
AvgvbZ Deposits
2019 mv‡ji 1,158,787.78 wgwjqb UvKv n‡Z 8.63% ev 99,998.48 The total deposit of the Bank as on 31 December, 2020
wgwjqb UvKv e„w× †c‡q 2020 mv‡j e¨vs‡Ki †gvU Avgvb‡Zi cwigvY ùvwo‡q‡Q was Tk. 1,258,786.26 million showing an increase of Tk.
99,98.48 million or 8.63 percent over 1,158,787.78 million of
1,258,786.26 wgwjqb UvKv| †gvU Avgvb‡Zi g‡a¨ mePvB‡Z ¸iæZ¡c~Y©
84
DIRECTORS' REPORT
PjwZ Avgvb‡Zi cwigvY 2019 mv‡ji 242,286 wgwjqb UvKv n‡Z 0.30% the preceding year. Most importantly, current deposit and
e„w× †c‡q 243,012 wgwjqb UvKvq DbœxZ n‡q‡Q| LvZIqvix Avgvb‡Zi other accounts stood at Tk. 243,010 million which was Tk.
242,286 million in 2019. The position of deposit, growth of
cwigvY, cÖe„w× I wgkÖY wb‡¤œ cÖ`wk©Z n‡jv| deposit and deposit mix are given below:
µ: bs LvZ 2020 2019 cwieZ©Y (%) Change

Sl. Type 2020 2019
(%)
PjwZ AvgvbZ I
1 243012 242286 0.30 Current Deposit & Other
Ab¨vb¨ 1 243012 242286 0.30
Accounts
2 wejm †c‡qej 11043 10910 1.22 2 Bills payables 11043 10910 1.22
3 mÂqx AvgvbZ 451471 387366 16.55 3 Savings Deposits 451471 387366 16.55
†¯úkvj †bvwUk Special Notice Deposit
4 166737 134843 23.65 4 166737 134843 23.65
wW‡cvwRU (SND) (SND)
wd·W wW‡cvwRU Fixed Deposits (Including
5 386523 383383 0.82 5 386523 383383 0.82
(wW‡cvwRU ¯‹xg mn) Deposit Schemes)
†gvU 1258786 1158788 8.63 Total 1258786 1158788 8.63
g~jZ †`ke¨vcx we¯Í…Z kvLv, AbjvBb †mev Pvjyi gva¨‡g MÖvnK †mevi The growth in deposits was attributed to the largest
branch network, improvement of service standard by
gv‡bvbœqb, GwUGg mvwf©m PvjyKiY Ges †iwgU¨v‡Ýi UvKv‡K wePÿYZvi mv‡_ introducing online banking, expanding ATM networks and
¯^í‡gqvw` I `xN©‡gqvw` Avgvb‡Z iƒcvšÍi Ges bZzb AvgvbZ †cÖvWv± cÖeZ©‡bi efficient channeling of remittance which was partially
converted into short and long term deposits, launching
Kvi‡YB Avgvb‡Zi G cÖe„w× N‡U‡Q| c~‡e©i eQi¸‡jvi b¨vq 2020 mv‡jI new deposit products, etc. As in the previous year, fixed
Avgvb‡Zi g~j LvZ wd·W wW‡cvwRU hvi cwigvY †gvU Avgvb‡Zi 30.71% ev deposits constituted the main component of the deposits
representing 30.71 percent of total deposits in 2020. After
386,523 wgwjqb UvKv| GQvov mÂqx Avgvb‡Zi cwigvY 451,471 wgwjqb fixed deposits, the savings deposit stood at Tk. 451,471
UvKv hv 2019 mv‡ji 387,366 wgwjqb n‡Z 16.55% e„w× †c‡q‡Q Ges million in 2020 which was Tk. 387,366 million in 2019
showing 16.55 percent growth and accounted for 35.87
GwU g~j Avgvb‡Zi 35.87%| wejm †c‡qej Ges †¯úkvj †bvwUk wW‡cvwR‡Ui percent of the total deposits. Bills payable and Special
cwigvb 2019 mv‡j wQj h_vµ‡g 10,910 wgwjqb UvKv I 134,843 wgwjqb Notice deposits stood at Tk. 11,043 million and Tk. 166,737
million respectively in 2020 which was Tk. 10,910 million
UvKv, hv 2020 mv‡j ùvwo‡q‡Q h_vµ‡g 1.22% I 23.65% e„w× †c‡q
and Tk. 134,843 million in 2019 meaning 1.22 percent and
11,043 wgwjqb I 166,737 wgwjqb UvKvq ùvwo‡q‡Q| 23.65 percent growth respectively.
Avg`vwb-ißvwb eëmv Import and Export

2020 mv‡j e¨vs‡Ki Avg`vwb I ißvwb eëmvq A_©vq‡bi cwigvY h_vµ‡g The total import and export businesses handled by the Bank
in 2020 stood at Tk. 165,550.00 million and Tk. 25,160.00
165,550.00 wgwjqb UvKv Ges 25,160.00 wgwjqb UvKv| c~e©eZ©x eQ‡i million respectively compared to Tk. 255,970.00 million and
Gi cwigvY wQj h_vµ‡g 255,970.00 wgwjqb UvKv Ges 25,670.00 Tk. 25,670.00 million respectively in 2019. The total amount
of foreign exchange transactions handling including foreign
wgwjqb UvKv| ê‡`wkK †iwgU¨vÝmn †gvU ê‡`wkK †jb‡`‡bi cwigvY 2020
remittance of the Bank for the year 2020 stood at Tk.
mv‡j ùvwo‡q‡Q 373,318.70 wgwjqb UvKv| 2019 mv‡j Gi cwigvb wQj 373,318.70 million which was Tk. 461,273.00 million in 2019.
461,273.00 wgwjqb UvKv|
Comparative Foreign Trade Position during
2020 I 2019 mv‡ji AvšÍR©vwZK eëmv‡qi ZzjbvgyjK wPÎ 2020 and 2019 :
Comparative Foreign Trade Position (Tk. in million)
2020 2019
Change
255970.00
Sl. Particulars 2020 2019

(%)
1 65550.00
1 Total Import 165550.00 255970.00 (35.32)

1 29055.60
1 1 1 483.00
2 Total Export 25160.00 25670.00 (1.99)

681 50.00
53553.10
Inward Remittance
25670.00
251 60.00
3 129055.60 111483.00 15.76

(including WES)
Outward Remittance
Total Total Inward Outward 4 53553.10 68150.00 (21.42)
Import Export Remittance Remittance
(including WES)
(including (including
WES) WES)
Total 373318.70 461273.00 (19.07)
Annual Report 2020

YEAR OF EXCELLENCE
jf¨vsk †NvlYv Dividends and Stock Dividend

Retained Earnings FYvZ¡K nIqvq c~e©eZ©x eQ‡ii b¨vq G e¨vsK KZ©„K Like in the previous year, no dividend is declared by SBL
for the year 2020 because of prevailing negative retained
2020 mv‡ji Rb¨ †Kvb jf¨vsk †NvlYv Kiv nqwb|
earning balance.
Ad-e¨v‡jÝ kxU G·‡cvRvim Off- Balance Sheet Exposures

2020 mvj †k‡l e¨vs‡Ki Off-Balance Sheet Exposures Gi At the end of 2020, total outstanding amount of off-balance
cwigvY 2019 mv‡ji 1,022,368.27 wgwjqb UvKv n‡Z mvgvb¨ n«vm sheet exposures of the Bank stood at Tk. 949,413.07 million
compared to Tk. 1,022,368.27 million for the year 2019.
†c‡q 949,413.07 wgwjqb UvKvq ùvwo‡q‡Q|
Ad-e¨v‡jÝ kxU G·‡cvRvim Gi mvims‡ÿc wb¤œiƒct The summary of off-balance sheet exposures is shown below:
cwigvb Position as of
weeiY Particulars
2020 2019 2020 2019
e¨vsK M¨vivw›U 7474.86 8012.30 Letter of guarantee 7474.86 8012.30
AcwieZ©wbq FYcÎ 936600.21 1007769.83 Irrevocable letter of credit 936600.21 1007769.83
wej di Kv‡jKkb 5338.00 6586.14 Bills for collection 5338.00 6586.14
Ab¨vb¨ KbwUb‡RwÝ `vq - - Other contingencies liabilities - -
†gvU 949413.07 1022368.27 Total 949413.07 1022368.27
HR policies are designed to long-term

`xN©‡gqv`x ‡ckvMZ `ÿZv Dbœq‡b gvbe m¤ú` cwiKíbv career growth - unleashing the hidden
potential
`xN©‡gqv`x wek¦vm I m¤úK©- G `ywU KvVv‡gv‡K wfwË K‡i e¨vswKs ‡ckvq SBL’s HR policies, based on trust and relationship, are to
†ckvMZ `ÿZv AR©‡bi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡U‡W gvbe m¤ú` Dbœqb look after people who want to make a long-term career
with the Bank because trust and relationship are built over
cwiKíbv MÖnY Kiv n‡q‡Q| e¨vs‡Ki 49 eQ‡ii †ckvMZ cwi‡ek Kg©xevwnbxi time. The corporate culture at SBL over last 49 years is such
that the members and the staff have ample opportunities to
AšÍwb©wnZ êwkó¨ cÖKv‡ki h‡_ó my‡hvM m„wó K‡i‡Q hvi gva¨‡g Zviv D‡`¨vMx take initiatives and responsibilities to unleash their hidden
n‡q Ges `vwqZ¡ wb‡q wb‡R‡ì I mgv‡Ri DbœwZi Rb¨ KvR Ki‡Z cv‡i| potential to maximize benefits for themselves and for
the society. The challenge is to maintain a business like,
e¨vsK g¨v‡bR‡g›U Ges Kg©xevwnbx h_vh_fv‡e `vwqZ¡ cvj‡bi ga¨ w`‡q committed corporate culture that matches SBL’s mission.
Achieving results and taking responsibility are important
djvdj AR©‡bi j‡ÿ¨ GKm‡½ cvi¯úwiK `vwqZ¡ mnKv‡i Kg©m¤úv`b K‡i
components of the culture we pursue, one in which
_v‡K| e¨vs‡Ki cl©` bvix cyiæl wbwe©‡k‡l Kg©`ÿZv I gvbe m¤ú` Dbœq‡bi management and staff work together and are mutually
accountable. Ensuring equal opportunities irrespective
j‡ÿ¨ †ek wKQz cÖkvmwbK bxwZ MÖnY K‡i‡Qb| Zvi g‡a¨ D‡jøL‡hvM¨ n‡jv: of gender, the Board of Directors of the Bank has already
ms‡kvwaZ AM©v‡bvMÖvg, bZzb mvwf©m iæj, ‡hvM¨Zvi wfwË‡Z c‡`vbœwZ, ¯^”Q adopted a number of administrative policies focusing on
improvement of skills and performance of human resources.
wb‡qvM I e`jx cÖwµqv, Kg©KZv©-Kg©Pvix‡ì Kj¨vY I `ÿZv AR©‡b ch©vß Notable among them includes: revised organogram, new
service rules, performance based promotion, transparent
cÖwkÿY myweav BZ¨vw`| eZ©gv‡b †mvbvjx e¨vs‡Ki †gvU Rbe‡ji cwigvY posting and transfer, employee’s welfare, training activities
18,918 Rb| Gi g‡a¨ Kg©KZ©v I Kg©Pvixi msL¨v h_vµ‡g 14,671 Rb I and skill development. Currently, SBL is having manpower
strength of 18,918 of which 14,671 are officers and 2,600 are
2,600 Rb| 2020 mv‡j e¨vsK Zvi gvbe m¤ú`‡K Drcv`bgyLx wn‡m‡e M‡o staff. In 2020, the Bank has invested Tk. 27.11 million to turn
its human resources into a productive workforce.
†Zvjvi Rb¨ 27.11 wgwjqb UvKv wewb‡qvM K‡i‡Q|
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
weMZ 2013 mv‡ji 3 b‡f¤î evsjv‡`k e¨vs‡Ki mv‡_ †mvbvjx e¨vsK With Bangladesh Bank, SBL signed a Memorandum of
Understanding (MOU) on 3 November 2013 which has
wjwg‡UW Gi AwW‡UW e¨v‡jÝkxU h_vmg‡q Dc¯’vcb, FY I AwMÖ‡gi cÖe„w× conditions for compliance such as submission of audited
wbw`©ó gvÎvq mxgve×KiY, cwiPvjb e¨q n«vmKiY, †kÖYxweb¨vwmZ F‡Yi balance sheet, limiting growth of loans and advances,
minimizing operating expenses, achievement of recovery
wecix‡Z jÿ¨ †gvZv‡eK Av`vq, FY I AwMÖ‡gi ch©vß gwbUwis wbwðZKiY, target against classified loans, ensuring proper monitoring
wi¯‹ g¨v‡bR‡g‡›Ui Dbœqb, kxl© 20 FY †Ljvwc †_‡K Av`vq Ges Ab¨vb¨ cÖfve of loans and advances, improvement of risk management,
m¤^wjZ GKwU Memorandum of Understanding (MOU) ¯^vÿwiZ nq| recovery of loans from top 20 loan defaulters and others
leverages.
86
DIRECTORS' REPORT
e¨vs‡Ki AwW‡UW e¨v‡jÝ kxU wba©vwiZ mg‡qi g‡a¨B evsjv‡`k e¨vs‡K The audited Balance Sheet of 2016 was submitted to
Dc¯’vcb Kiv n‡q‡Q| FY I AwMÖ‡gi cÖe„w× Ges cwiPvjb e¨‡qi e„w× MOU Bangladesh Bank within the deadline. The annual growth
of loans and advances and increase in operating expenses
G D‡jøwLZ mxgvi g‡a¨B mxgve× wQj| ‡kÖYxK…Z FY n‡Z Av`v‡qi cwigvY were within the limit of the memorandum. The recovery
wba©vwiZ 58,288.50 wgwjqb UvKvi ¯’‡j bM` Av`vq n‡q‡Q 4,364.20 target from classified loans in 2020 was set at Tk. 58,288.50
million but total cash recovery was Tk. 4,364.20 million and
wgwjqb UvKv Ges bM` e¨ZxZ Av`vq n‡q‡Q 6,137.30 wgwjqb UvKv|
other than cash was Tk. 6,137.30 million.
GQvov MOU G D‡jøwLZ kZ©vbyhvqx †µwWU wi¯‹ g¨v‡bR‡g›U kw³kvjxKi‡bi According to the terms and conditions of MOU, Credit
Policy, Credit Risk Management Policy and Loan Review
j‡ÿ¨ †µwWU cwjwm, †µwWU wi¯‹ g¨v‡bR‡g›U cwjwm Ges †jvb wiwfD cwjwm
Policy have been revised to improve credit risk management
ch©v‡jvPbvc~e©K ms‡kvab K‡i Ges ms‡kvwaZ cwjwm evsjv‡`k e¨vs‡K `vwLj and the revised policies have been submitted to Bangladesh
Kiv n‡q‡Q Ges Z`vbyhvqx Kvh©µg cwiPvjbv Kiv n‡”Q| ZvQvov, Ab¨vb¨ Bank. Actions set out in the policy are being implemented
accordingly. Besides, effective steps have also been taken to
†Kvi wi¯‹ Gi DbœwZK‡í Kvh©Ki eë¯’v MÖnY Kiv n‡”Q| 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 j‡¶¨ MYcÖRvZš¿x Financial Institution Division of the Ministry of Finance of the
evsjv‡`k miKvi Gi A_© gš¿Yvj‡qi Avw_©K cÖwZôvb wefvM 2015 mvj n‡Z People’s Republic of Bangladesh to achieve “Vision 2021”
ivóª gvwjKvbvaxb e¨vsK¸‡jvi mv‡_ Performance Contract cÖeZ©b K‡i| through elevating the performance of the state-owned
commercial banks of Bangladesh to a satisfactory level. The
Ryb, 2016 ch©šÍ Performance Contract wU ÒKey Performance
performance contract was named as “Key Performance
Indicators (KPIs)” bv‡g AwfwnZ wQj| cieZ©x‡Z 2016 mv‡j A_© gš¿Yvjq
Indicators (KPIs)” till June 2016. In 2016 the Finance Ministry
ÒKey Performance Indicators (KPIs)” Pzw³wUi cwie‡Z© A_©eQi
introduced a financial year based “Annual Performance
wfwËK evwl©K Kg©m¤úv`b Pzw³ (Annual Performance Agreement- Agreement (APA)” replacing the “Key Performance Indicators
APA) cÖeZ©b K‡i| (KPIs)”.
GiB avivevwnKZvq weMZ 29 RyjvB, 2020 ZvwiL A_© gš¿Yvj‡qi Avw_©K Consequently, an “Annual Performance Agreement (APA)”
cÖwZôvb wefv‡Mi mwPe g‡nv`‡qi mv‡_ †mvbvjx e¨vsK wjwg‡UW Gi wmBI GÛ was signed on dated 29th July, 2020 between the Secretary
g¨v‡bwRs wW‡i±i g‡nv`‡qi g‡a¨ 2020-21 (RyjvB,20 n‡Z Ryb,21) A_© of Financial Institution Division and the CEO & Managing
Director of Sonali Bank Limited for the Financial year 2020-
eQiwfwËK evwl©K Kg©m¤úv`b Pzw³ (Annual Performance Agreement
2021.
-APA) ¯^v¶wiZ nq|
A_© gš¿Yvj‡qi wb‡`©kbv Abyhvqx ¯^v¶wiZ Pzw³i avivevwnKZvq GKB Zvwi‡L As per the direction of the agreement, Annual Performance
Agreement (APA), 2020-2021 was signed between the CEO
A_©vr 29 RyjvB 2020 Zvwi‡L e¨vs‡Ki cÖavb Kvh©vj‡qi m‡¤§jb K‡ÿ wmBI
& Managing Director and the Deputy Managing Directors
GÛ g¨v‡bwRs wW‡i±i g‡nv`‡qi mv‡_ †WcywU g¨v‡bwRs wW‡i±iM‡Yi Ges and the General Managers of Different General Managers
†WcywU g¨v‡bwRs wW‡i±iM‡Yi mv‡_ gvV ch©v‡qi Kvh©vjqmg~‡ni †Rbv‡ij Offices, held on the same date 29th July 2020 in the
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 mv‡_ ¯^ ¯^ AvIZvaxb Continually, the General Managers signed the agreement
wcÖwÝcvj Awdm Ges AvÂwjK Kvh©vjq/kvLv cÖavb‡ì mv‡_ Annual with the head of the Principal offices, corporate branches
and Regional offices. PO & RO Heads did the same with the
Performance Agreement (APA) 2020-21 Pzw³ ¯^v¶wiZ nq|
branch Managers under their control and supervision.
D‡jøL¨, me©‡kl 2018-19 A_©eQ‡ii evwl©K Kg©m¤úv`b Pzw³i (APA) Mentionable that according to the target of Annual
jÿ¨gvÎv AR©‡bi Dci wfwË K‡i A_© gš¿Yvjq KZ©„K ÒAwZ DËgÓ gvb cÖvß n‡q Performance Agreement (APA) 2018-19, Sonali Bank
Limited achieved 1st position among all commercial
†mvbvjx e¨vsK wjwg‡UW Avw_©K cÖwZôvb wefv‡Mi AvIZvaxb mKj evwbwR¨K
banks securing “Very Good” by the Financial Institutions
e¨vsK mg~‡ni g‡a¨ cÖ_g ¯’vb AR©b K‡i| e¨vs‡Ki cl©` mfvq g~jëvb w`K Division. Appropriate and timely directions and guidelines
wb‡`©kbv Ges eë¯’vcbv KZ©„c‡ÿi wbweo Z`viwK‡Z APA 2020-21 Gi from the Board of Directors and close monitoring of the
management motivated officers to achieve targets against
mKj Kg©m¤úv`b m~P‡Ki wecix‡Z j¶¨gvÎvmg~n AR©‡bi wbwgË e¨vs‡Ki mKj
all Key Performance Indicators of APA 2020-21.
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 j¶¨gvÎvi wecix‡Z Achievement evaluation reports against the targets in
AR©b g~j¨vqb cÖwZ‡e`b cÖwZ ‰ÎgvwmK, Aa©-evwl©K Ges evwl©K wfwË‡Z various criteria are being submitted quarterly, half yearly and
annual basis in the APAMS of the Ministry of Finance as per
APAMS software G AšÍf~©³ K‡i A_© gš¿Yvj‡q ‡cÖwiZ n‡”Q| direction.
Annual Report 2020

YEAR OF EXCELLENCE
RvZxq †KvlvMv‡i Ae`vb Contribution to National Exchequer

†mvbvjx e¨vsK wjwg‡UW miKv‡ii ivR¯^ Avni‡Y ¸iæZ¡c~Y© f~wgKv cvjb K‡i Sonali Bank Limited plays an important role in assisting
the Government in revenue collection. The Bank pays tax
_v‡K| e¨vsK Zvi wbR¯^ Av‡qi Dci AvqKi I f¨vU cwi‡kva K‡i _v‡K|
and value added tax (VAT) on its own income. Besides, SBL
ZvQvov e¨vsK Zvi MÖvnK, mieivnKvix‡ì wbKU n‡Z AvnwiZ AvqKi, f¨vU collects income tax, VAT, tax at source from clients and
I Dr‡m Ki miKvwi †KvlvMv‡i Rgv K‡i _v‡K| 2020 mv‡j e¨vsK AwMÖg Ki, suppliers and deposits the same to the national exchequer.
Dr‡m Ki Ges f¨vU eve` †gvU 12,227.10 wgwjqb UvKv miKvwi †KvlvMv‡i During 2020, the Bank deposited a total of Tk. 12,227.10
million as advance tax, tax at source and VAT to the national
Rgv K‡i‡Q| c~e©eZ©x eQ‡i Gi cwigvY wQj 7,956.60 wgwjqb UvKv|
exchequer which was Tk. 9,851.60 million in 2019. In 2016,
D‡jøL¨, RvZxq ivR¯^ ‡evW© KZ©„K 2015-16 Ki eQ‡i e¨vswKs †m±‡i kxl© 5 Sonali Bank Limited was awarded one of the “Highest Tax
(cuvP) cÖwZôv‡bi GKwU nIqvq 2016 mv‡j †mvbvjx e¨vsK wjwg‡UW Òm‡e©v”P Payers” in the banking sector by National Board of Revenue
(NBR) for the assessment year 2015-16.
AvqKi cÖ`vbKvixÓ cÖwZôvb cyi¯‹vi AR©b K‡i|
(Tk. in million)
Contribution on National Exchequer Sl. Particulars 2020 2019

2020 2019 01. VAT on Commission 628.82 850.08
Tax paid on car 02. VAT on Rent on bank building 72.24 62.49
Advance tax paid

03. VAT on Various Expenses 109.96 134.86
Tax deducted at source

04. Source tax on L/C commission 89.22 54.12
Employees tax
05. Source tax on buying house 19.26 14.39
commission
Excise duty
06. Source Tax on Interest paid by bank 6531.07 3058.81

Source Tax on other than Neat & Garments…
07. Source Tax on Cash subsidy on export 107.57 65.10
Source Tax on Neat & Garments Export
08. Source Tax on Neat & Garments 107.49 103.43
Source Tax on Cash subsidy on export
Export
Source Tax on Interest paid by bank
09. Source Tax on other than Neat & 5.58 34.29
Source tax on buying house commission
Garments Export
Source tax on L/C commission

10. Excise duty 1573.82 1238.14
VAT on Various Expenses

11. Employees tax 86.49 103.88
VAT on Rent on bank building 12. Tax deducted at source 2394.97 1736.08
VAT on Commission
13. Advance tax paid 500.00 500.00
0% 20% 40% 60% 80% 100% 14. Tax paid on car 1.31 0.93
Total 12227.10 7956.60
cÖe„w×i cye©vfvm Growth Prospects

evsjv‡`‡ki e¨vswKs Lv‡Z eZ©gv‡b †`kx-we‡`kx e¨vsK¸‡jvi g‡a¨ Zxeª The banking industry in Bangladesh has been experiencing
cÖwZ‡hvwMZv cwijwÿZ n‡”Q| †cÖvWv‡±i eûgyLxKiY I e¨vswKs Lv‡Z tough competition amongst the local and foreign banks. The
banking and financing needs of the corporate, retail, SME
A‡Uv‡gk‡bi we¯Í…wZi gva¨‡g K‡c©v‡iU, wi‡UBj, GmGgB evwYR¨ I Ab¨vb¨ trade and other customers are met through diversification
MÖvnK‡ì A_©vqb I e¨vswKs myweav cÖ`vb Kiv n‡”Q| 2020 mv‡j †mvbvjx of products and extending automated banking services. The
business trend up to 31 December, 2020 shows marked
e¨vsK wjwg‡UW wW‡cvwRU AvniY, FY I AwMÖg, †iwgU¨vÝ cÖevn, wewb‡qvM
improvement in the areas of deposit mobilization, loans and
BZ¨vw` †ÿ‡Î D‡jøL‡hvM¨ AMÖMwZ mvab K‡i‡Q| mvgwMÖK P¨v‡jÄ †gvKv‡ejvi advances, outward remittance and investment as well. To
face the overall challenge, SBL is strengthening its delivery
j‡ÿ¨ e¨vsK Zvi †Wwjfvix P¨v‡bj, †UK‡bvjwR, eëmv Dbœqb, †cÖvWv‡±i
channel, adoption of technology, business promotion,
eûgyLxKiY, gvbe m¤ú` Dbœqb, kvLv †bUIqv‡K©i m‡e©v”P eënvi Ges product diversification, human resource development,
cÖvwZôvwbK mvgvwRK `vqe×Zvi g‡Zv welqMy‡jv‡K kw³kvjx Ki‡Q| MÖvnK‡ì optimum use of branch network and Corporate Social
88
DIRECTORS' REPORT
wbivc` I DbœZ GwUGg mvwf©m cÖ`v‡bi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡UW VISA Responsibility (CSR). To meet the demand of our clients,
SBL has taken membership of VISA and introduced VISA
Gi m`m¨c` MÖnY K‡i wfmv KvW© mvwf©m Pvjy K‡i‡Q| G †ÿ‡Î cÖavb Kvh©vj‡qi
cards to ensure safe and modern ATM related services. Help
KvW© wWwfkb wbiwew”Qbœ MÖvnK †mev cÖ`v‡b wb‡ew`Z| (†ní †W¯‹- †dvb bs- Desk (Phone No. 9560366, 01755583687) at Card Division,
9560366, †gvevBj bs-01755583687)| Head Office is dedicated to ensure customer service.
bZzb P¨v‡jÄmg~n Ges Zv †gvKv‡ejvq Kg©‡KŠkj Strategies Against New Challenges

†KvwfW 19 gnvgvix RwbZ wek^ A_©bxwZ `ªæZ cwieZ©‡bi Kvi‡Y e¨vsK I In the backdrop of a fast changing global economic scenario
due to the COVID-19 pandemic, the banking sector as a
Avw_©K cÖwZôvb wbZ¨ bZzb P¨v‡j‡Äi m¤§yLxb n‡”Q| Gi g‡a¨ i‡q‡Q MÖvnK whole is facing new challenges. These include among
I †÷K‡nvìvi‡ì Pvwn`v †gUv‡bv, bZzb e¨vswKs †cÖvWv± D™¢veb, Avw_©K others, meeting the demands of clients and stakeholders
at large, innovation of new banking products, channelling
m¤ú`‡K Drcv`bkxj Lv‡Z ¯’vbvšÍiKiY, gvwbjÛvwis Kvh©µg cÖwZ‡iv‡a financial resources to productive sectors, working out new
Kg©cš’v D™¢veb, `yb©xwZ cÖwZ‡iva Ges †mevi gv‡bvbœq‡b Z_¨ cÖhyw³i cÖPjb, mechanisms for combating trade based money laundering,
use of information technology to combat corruption and
cÖwZwbqZ AvMZ SzuwK jvN‡e †KŠkj cÖYqb Ges MÖvnK‡ì Pvwn`v iÿvq myôz improve service delivery, designing appropriate strategies to
mitigate emerging risks and ensuring control environment
cwi‡ek wbwðZKiY D‡jøL‡hvM¨|
to protect the interest of clients.
bZzb P¨v‡jÄ †gvKv‡ejvq †mvbvjx e¨vsK wjwg‡UW K…wl, K…wlwfwËK wkí cÖKí, To cope with these new and emerging challenges,, Sonali
Bank Limited has laid emphasis on agriculture, agro-
gvB‡µv‡µwWU, Avg`vwb cwic~iK cÖKí, GmGgB wfwËK Ges Kg©ms¯’vb
industries, import substitution projects, SME-based energy
m„wóKvix cÖKímgy‡n we‡klfv‡e bRi w`‡”Q| e¨vsK mgv‡Ri wewfbœ †kÖYxi projects and other employment generating activities. It
has launched new products for different sections of the
MÖvnK‡ì Rb¨ bZzb bZzb †cÖvWv± D™¢veb K‡i‡Q| cÖwZ‡hvwMZvgyjK evRv‡i
community. To sustain its position in the competitive
wb‡R‡ì Ae¯’vb a‡i ivLvi j‡ÿ¨ MÖvnK‡mevi gv‡bvbœq‡b B‡Zvg‡a¨ e¨vs‡Ki market, all 1224 branches of the Bank have been taken
to automation with CBS installation successfully to
1224wU 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 ÕÕ†iwgU¨vÝ based software developed in-house called “Remittance
Management System Plus’’ (RMSPlus) has been installed at
g¨v‡bR‡g›U wm‡÷g cøvm (AviGgGm cøvm)ÕÕ 1224wU kvLv‡ZB Bb÷j Kiv 1224 branches for receiving foreign remittances. Inland and
foreign remittance transactions are now carried out using
n‡q‡Q| Af¨šÍixY I ‰e‡`wkK †iwgU¨vÝ GB wm‡÷‡gi gva¨‡g cwiPvwjZ
this system. Keeping its employees morally psychologically
n‡”Q| †KvwfW19 gnvgvixRwbZ cwiw¯’wZ‡Z Kg©KZ©v-Kg©Pvix‡ì g‡bvej strong and competent during the COVID-19 pandemic,
the capacity building of employees has been identified as
Aÿzbœ †i‡L Kg©`ÿZv e„w× e¨vs‡Ki wPwýZ gyL¨ D‡`¨vM| G j‡ÿ¨ Kg©xevwnbxi
the major reform agenda. The Bank has been continuing
`ÿZv I Kg©ÿgZv e„w×i Rb¨ e¨vsK wbqZ cÖ‡Póv Pvwj‡q hv‡”Q| its efforts to improve the efficiency of employees and
effectiveness of service delivery mechanisms.
e¨vswKs eëmvq g~jab ch©vßZv AZ¨šÍ MyiæZ¡c~Y©| eZ©gv‡b e¨vs‡Ki g~jab Maintaining adequate capital is very important in banking
business. Currently there is a considerable surplus of
wKQzUv m‡šÍvlRbK ch©v‡q i‡q‡Q| g~jab m‡šÍvlRbK ch©v‡q ivLvi j‡ÿ¨ e¨vsK capital in the Bank. To maintain the surplus capital, the
bank has taken a number of steps such as bringing down
†kÖYxK…Z F‡Yi nvi GK As‡K bvwg‡q Avbv, Avq evov‡bv, Ae‡jvcbK…Z
the percentage of classified loans to a single digit, raising
FY †_‡K Av`vq, bb-dv‡ÛW eëmv n‡Z Avq e„w×mn wewfbœ Kvh©µg nv‡Z income to a satisfactory level, recovery of written-off loans,
increasing income from non funded business and so on
wb‡q‡Q| wbqZ SzuwK †gvKv‡ejvq e¨vsK MvBWjvBb cÖ`vb K‡i‡Q Ges DaŸ©Zb and so forth. To mitigate the emerging risks, the Bank has
provided guidelines for every one to follow and has been
I ga¨g ch©v‡qi wbe©vnx‡ì cÖwkÿY cÖ`vb Ki‡Q|
imparting training to senior and mid-level executives.
AwWUi wb‡qvM Appointment of Auditors

GKK dvg© wn‡m‡e GKbvweb, PvUvW© GKvD›U¨v›Um, e¨vs‡Ki 2020 mv‡ji ACNABIN, Chartered Accountants, carried out the audit of
wbixÿv Kvh©µg m¤úbœ K‡i‡Q| e¨vs‡Ki Avmbœ 14Zg evwl©K mvaviY mfvq the Bank in 2020. Audit firms will be appointed for 2021 in
2021 mv‡ji wbixÿv Kvh©µg m¤ú‡bœi Rb¨ AwWU dvg© wb‡qvM Kiv n‡e| the upcoming 14th Annual General Meeting.
Annual Report 2020

YEAR OF EXCELLENCE
K…ZÁZv ¯^xKvi Acknowledgements

e¨vs‡Ki cwiPvjbv cl©` Gi m`m¨MY e¨vs‡Ki AvgvbZKvix, FYMÖnxZv, The members of the Board of Directors of the Bank would
like to place on record their gratitude to the depositors,
c„ô‡cvlK, ïfvbya¨vqx, wbixÿK I Ab¨vb¨ ¯^v_© mswkøó‡ì wbKU Zuv‡ì
customers, patrons, well-wishers, auditors and other
Ae¨vnZ mg_©b I mn‡hvwMZvi Rb¨ K…ZÁZv Ávcb Ki‡Q| Zuv‡ì µgvMZ stakeholders for their continued support and cooperation,
mg_©b, mn‡hvwMZv I w`K wb‡`©kbvq e¨vsK G Ae¯’v‡b †cuŠQv‡Z ‡c‡i‡Q| Avgiv without which the Bank would not have been able to make
evsjv‡`k miKv‡ii we‡klZt A_© gš¿Yvj‡qi A_© wefvM I Avw_©K cÖwZôvb progress. We are also indebted to the Finance Division
and the Financial Institutions Division of the Ministry of
wefvM, evsjv‡`k e¨vsK, evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ Kwgkb, Awdm
Finance, Bangladesh Bank, Bangladesh Securities and
Ae `¨v †iwR÷ªvi Ae R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m Ges mswkøó miKvwi Exchange Commission, Office of the Registrar of Joint
ms¯’vi wbKU Zv‡ì Ae¨vnZ mg_©b I civgk© `v‡bi Rb¨ K…ZÁZv Rvbvw”Q| Stock Companies and Firms and other relevant government
agencies for their cooperation and guidance.
†KvwfW 19 gnvgvwiRwbZ P¨v‡jÄ Gi g‡aÏ e¨vs‡Ki mvwe©K DbœwZK‡í wmBI In the face of challenges of the COVID-19 pandemic,
the unrelenting and courageous efforts of the senior
GÛ g¨v‡bwRs wW‡i±i Gi †bZ…‡Z¡ wmwbqi g¨v‡bR‡g›Umn e¨vs‡Ki mKj ¯Í‡ii
management and the members of staff under the able
Kg©KZ©v-Kg©PvixM‡Yi AvšÍwiK wbijm cÖ‡Póv we‡klfv‡e cÖksmvi `vex iv‡L| leadership of the CEO & Managing Director, to bring about
overall improvement in the Bank’s business performance
deserve special appreciation.
cwiPvjbv cl©` Gi c‡ÿ On behalf of the Board of Directors
(wRqvDj nvmvb wmwÏKx) (Ziaul Hasan Siddiqui)

†Pqvig¨vb Chairman
90
DIRECTORS' REPORT
Annual Report 2020

YEAR OF EXCELLENCE
CORPORATE
GOVERNANCE
REPORT
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 2018). 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 2018) includes provisions for prior approval of
Bangladesh Bank before the appointment of new bank directors, as well as dismissal, termination or removal of any director
from the post; director’s fit & proper criteria; maximum number of directors; appointment of independent directors; etc.
l.a.1. Size of the Board of the Bank:

The number of the Board members is within the range set by the Bank Company Act-1991 (amended in 2018), 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. Ziaul Hasan Siddiqui Chairman
2 Mr. Md. Fazlul Haque Director (Retired on 03.06.2021)
3 Mr. A.B.M Ruhul Azad Director (Joined on 15.06.2021)
4 Mr. A. K. M. Kamrul Islam FCA, FCS Director
5 Mr. Ishtiaque Ahmed Chowdhury Director
6 Dr. Daulatunnaher Khanam Director
7 Mr. Md. Mofazzal Husain Director
8. Mr. Molla Abdul Wadud Director
9. Professor Dr. Mohammad Kaykobad Director(Joined on 25.08.2020)
10. Mr. Md. Ataur Rahman Prodhan CEO & Managing Director
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CORPORATE GOVERNANCE
I. a.2. Appointment of Directors:

Under section 15(4) of the Bank Company Act, 1991 (amended in 2018), 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
BanCompany Act-1991 (Amended in 2018) 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.lnformation regarding Directors:

Banks take the following steps regarding Director information:
a. Keep an updated list of bank Directors.
b. Banks send a Directors’ list to other banks or financial institutions immediately after the appointment or release of
Director.
c. Banks display a list of Directors in the website and update it on a regular basis.
I.a.6. Chairman of the Board and Chief Executive Officer:

Two separate individuals occupy the positions of the Chairman of the Board and the Chief Executive Officer. The Chairman
of the Bank is nominated by the Government and duly approved by the Board. The Board also approves the roles and
authorities of the Chairman and CEO which have been clearly defined in BRPD Circular No. 11 and 18 of 27 October 2013
and articles of association of the Bank.
I.a.7. Responsibilities of the Board of Directors

To ensure good governance in the Bank management it is essential to have specific demarcation of responsibilities and
authorities among controlling bodies over bank affairs. In the Bank Company Act, 1991 (amended in 2018) 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:
Annual Report 2020

YEAR OF EXCELLENCE
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:
a) In terms of the financial, business and administrative authorities vested upon him by the board, the CEO & MD discharges
his own responsibilities. He remains accountable for achievement of financial and other business targets by means of
business plan, efficient implementation thereof and prudent administrative and financial management.
b) The CEO & MD ensures compliance of the Bank Company Act, 1991 and other relevant laws and regulations in
discharging routine functions of the Bank.
c) At the time of presenting any memorandum in the Board Meeting or Board Committee Meeting, the CEO & MD
points out if there is any deviation from the Bank Company Act, 1991 (amended in 2013) and other relevant laws
and regulations.
d) The CEO & MD reports to Bangladesh Bank of any violation of the Bank Company Act, 1991 (amended in 2013) or
of other laws/regulations.
e) The recruitment and promotion of all staffs of the bank except those in the two tiers below him rests on the CEO
& MD. He acts in such cases in accordance with the approved service rules on the basis of the human resources
policy and sanctioned strength of employees as approved by the Board.
f) The authority relating to transfer and disciplinary measures against the staff, except those at two tiers below the
CEO & MD, rests on him, which he applies in accordance with the approved service rules. Besides, under the
purview of the human resources policy as approved by the Board, he nominates Officers for training etc.
I.c. Appointment of Chief Financial Officer (CFO) and Chief Information Technology Officer (CITO)
Mr. Subhash Chandra Das FCMA, FCA, Chief Financial Officer, is a skilled 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 Associate 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. Mohammad Rezwan Al Bakhtiar, Chief Information Technology Officer of the Sonali Bank has been appointed based on
the competency following the circular of the Bank and guidelines of the Bangladesh Bank.
I.d. Appointment of Company Secretary and Head of Internal Audit
To ensure the world’s best corporate governance practices, a high executive (General Manager) has been deployed to carry
on the secretarial functioning and another General Manager has been deployed as the Head of Internal Audit to strengthen
the overall internal control and compliance.
94
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 2020

36 (Thirty Six) Board meetings of the SBL were held in 2020. A detailed statement showing number of Board meetings held
and status of participation of the Directors is given below:
Status with the Meeting Honourium
SI. Name Attended Remarks
Bank Held Received *
1 Mr. Ziaul Hasan Siddiqui Chairman 36 36 2,88,000 -
2 Mr. Md. Fazlul Hoque Director 36 36 2,88,000 -
3 Mr. A K M Kamrul Islam, FCA,FCS Director 36 32 2,56,000 -
4 Dr. Md. Nurul Alam Talukder Director 36 7 56,000 -
5 Mr. Ishtiaque Ahmed Chowdhury Director 36 35 2,80,000 -
6 Dr. Daulatunnaher Khanam Director 36 36 2,88,000 -
7 Mr. Md. Mofazzal Husain Director 36 32 2,56,000 -
8 Mr. Molla Abdul Wadud Director 36 36 2,88,000 -
9 Professor Dr. Mohammad Kaykobad Director 36 17 1,36,000 Joined on 25.08.2020
10 Mr. Md. Ataur Rahman Prodhan CEO & MD 36 35 -
*Tk 8000.00 per meeting
II. BOARD COMMITTEES

ll.a. Executive Committee
As per the BRPD circular No. 11 of 27 October 2013, an Executive Committee has been formed with Directors for quick
decision on urgent matters and execution of routine work in between the Board meeting. Executive Committee performs
according to their terms of reference determined by the Board of Directors in line with Bangladesh Bank guidelines.
Executive Committee
2 Mr. Md. Fazlul Haque Director Member
5 Mr. Md. Ataur Rahman Prodhan CEO & MD Member
II.a.1. Organizational structure:
i. Members of the committee are nominated by the Board of Directors from themselves;
ii. The Executive Committee comprises of maximum 06 (six) members;
iii. Members are appointed for a 03 (three)-year term of office;
iv. Chairman of the Board of Directors is the Chairman of Executive Committee;
v. Company Secretary of the Bank is the Secretary of the Executive Committee.
II.a.2. Qualifications of the Members:
i. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating a
Director to the committee;
ii. Each member is capable of making valuable and effective contributions in the functioning of the committee;
iii. To perform his or her role effectively each committee member has adequate understanding of the detailed responsibilities
of the committee membership as well as the bank’s business, operations and its risks.
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YEAR OF EXCELLENCE
II.a.3. Roles and Responsibilities of the Executive Committee:

i. The Executive Committee can decide or can act in those cases as instructed by the Board of Directors that are not
specifically assigned on full Board through the Bank Company Act, 1991 and other laws and regulations.
ii. The Executive Committee can take all necessary decisions or can approve cases within power delegated by the Board
of Directors.
iii. All decisions taken in the Executive Committee should be ratified in the next Board meeting.
ll.a.4. EC Meetings in 2020
i. The Executive Committee sits anytime as it may deem fit. 08 (Eight) meetings of the Executive Committee were held in
2020. A statement on Executive Committee is given below:
Status with the Honourium

SI. Name Meeting Held Attended Remarks
Bank Received *
1 Mr. Ziaul Hasan Siddiqui Chairman 8 8 64,000 -
2 Mr. Md. Fazlul Haque Director 8 8 64,000 -
3 Dr. Md. Nurul Alam Talukder Director 8 2 16,000 -
4 Mr. Md. Mofazzal Husain Director 8 7 56,000 -
5 Mr. Molla Abdul Wadud Director 8 3 24,000
6 Mr. Md. Ataur Rahman Prodhan CEO & MD 8 8 - -
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.
Audit Committee
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
96
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
8 (eight) meetings of the Committee were held in 2020. A statement on Audit Committee is given below:
Meeting Honourium
SI. Name Status with the Bank Attended Remarks
Held Received *
1 Mr. A.K.M. Kamrul Islam FCA, FCS Director 8 6 48,000 -
2 Mr. Ishtiaque Ahmed Chowdhury Director 8 8 64,000 -
3 Dr. Daulatunnaher Khanam Director 8 8 64,000 -
4 Mr. Molla Abdul Wadud Director 8 4 32,000 -
5 Professor Dr. Mohammad Kaykobad Director 8 4 32,000 Joined on 25.08.2020
(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.
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YEAR OF EXCELLENCE
(vi ) Other Responsibilities:

1. Submits compliance report to the Board on quarterly basis on regularization of the omission, fraud and forgeries and
other irregularities detected by the internal and external auditors and inspectors of regulatory authorities;
2. External and internal auditors submits their related assessment report, if the committee solicit;
3. Performs other oversight functions as desired by the Board of Directors and evaluates the committee’s own performance
on a regular basis.
II.b.4. Head of Internal Audit’s access to Audit Committee
Head of internal control and compliance has direct access to the Audit Committee and he attends the Audit Committee
meetings regularly.
II.c. Risk Management Committee

ll.c.1. Organizational Structure:
1. Members of the committee are nominated by the Board of Directors from themselves;
2. The Risk Management Committee comprises of maximum 05 (five) members;
3. Members are appointed for a 03 (three) year term of office;
4. Company Secretary of the Bank is the Secretary of the Risk Management Committee.
As per the Bank Company Act, 1991 (amended in 2018) 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:

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.
98
iv)Storage of data & Reporting system:

Adequate record keeping & reporting system developed by the Bank management is approved by the Risk Management
Committee. The committee ensures proper use of the system. The committee minutes its proposal, suggestions and
summary in a specific format and informs the Board of Directors.
v)Monitoring the implementation of overall Risk Management Policy:
Board Risk Management Committee monitors proper implementation of overall risk management policies. They monitor
whether proper steps have been taken to mitigate all risks including lending risk, market risk, and management risk.
vi)Other responsibilities:
1. Committee’s decision and suggestions are submitted to the Board of Directors quarterly in short form;
2. Comply instructions issued time to time by the controlling body;
3. Internal & external auditors submit respective evaluation report whenever required by the committee.
II.b.4. Meetings of the Committee
Meeting Honourium
SI. Name Status with the Bank Attended Remarks
Held Received *
1 Mr. Ishtiaque Ahmed Chowdhury Director 7 7 56,000 -
2 Mr. Md. Fazlul Haque Director 7 4 32,000 -
3 Mr. Dr. Md. Nurul Alam Talukder Director 7 2 16,000 -
4 Dr. Daulatunnaher Khanam Director 7 7 56,000 -
5 Mr. Md. Mofazzal Husain Director 7 6 48,000 -
6 Mr. Molla Abdul Wadud Director 7 4 32,000 -
7 Professor Dr. Mohammad Kaykobad Director 7 3 24,000 Joined on 25.08.2020
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:
z Performance objectives: To maintain the efficiency and effectiveness of overall operating activities.
z Information objectives: To ensure the reliability, completeness and timelines of financial and management
information.
z 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.
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YEAR OF EXCELLENCE
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:
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 2020
covering the position of 31 December 2019. 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. ACNABIN, Chartered Accountants, to carry on statutory audit of the Bank for the financial year
2020. The audit firm 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 2020.
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.
100
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 2017 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
Board of Directors
Executive Audit Risk Management

Committee Committee Committee
CEO & MD
Departmental
MANCOM
Risk Management
Head of IC
C
Head of Control Head of Audit Head of Compliance
Control &
Monitoring Audit & Audit & Foreign
Inspection Inspection Exchange Audit Compliance Compliance
Division (CMD) Division-Internal Division-External
Division (AID-1) Division (AID-2) & Inspection
Compliance up to Bangladesh Bank

Audit & Inspection up to All All Ad corporate Branch Audit Compliance
Corporate Level Branch Branches branches &
(Below foreign Commercial
Corporate branches/ Compliance of Audit Com.
Branch Div. Office, Dept. foreign exchang e
Department Controlling Offices level) sub.
Audit & Foreign
Division& (GMo, Po, Ro) branches& Statutor
y
Controlling Sinsidiaries Audit Com.
Offices
(GMO, Po, Ro) Audit Cell-Local Compliance of the
Office/Corporate Others External
rest of th
e Audit Com.
branch and others
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
Annual Report 2020

YEAR OF EXCELLENCE
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.
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
102
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. 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 Credit Rating Information and Services Limited(CRISL) on the Audited Balance Sheet of 31 December, 2019 and
other relevant information. The rating agency awarded the ratings as stated here.
Annual Report 2020

YEAR OF EXCELLENCE
Surveillance Rating 2020-21 Long Term Short Term
As Government Supported Bank AAA ST-1
As Private Commercial Bank A ST-1
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 is 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
104
Compliance Certificate
on
To The Shareholders of Sonali Bank Limited
We have examined the compliance status to the Corporate Governance Code by Sonali Bank Limited for the year ended 31
December 2020. 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 were 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.
Dhaka, Bangladesh (Shiraz Khan Basak & Co)

Dated, 16 August 2021 Chartered Accountants.
Annual Report 2020

YEAR OF EXCELLENCE
COMPLIANCE STATUS OF BANGLADESH

SECURITIES AND EXCHANGE COMMISSION
GUIDELINES FOR CORPORATE GOVERNANCE
FOR THE YEAR ENDED 31 DECEMBER 2020.
Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/CMRRCD/ 2006-158/134/
Admin/80 dated 03 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969.
Compliance Status Remarks

Condition
Title
No. Not (If any)
Complied
Complied
1. Board of Directors
Board’s size: Board members shall not be less than 5 (five) and
1.1 √
more than 20 (twenty)
1.2 Independent Directors
At least one-fifth (1/5) of the total number of directors in the
1.2.a. √
company’s Board shall be independent directors;
All Board Members are nominated by the Government, holding 01 share face value
who either does not hold any share in the company or holds less
1.2.b. (i) than one percent (1%) shares of the total paid-up shares of the √
company;
who is not a sponsor of the company or is not connected with
the company’s any sponsor or director or nominated director
or shareholder of the company or any of its associates, sister
concerns, subsidiaries and parents or holding entities who holds
They are treated as Independent Director.

one percent (1%) or more shares of the total paid-up shares of
1.2.b.(ii). √
the company on the basis of family relationship and his or her
family members also shall not hold above mentioned shares
in the company: Provided that spouse, son, daughter, father,
mother, brother, sister, son-in-law and daughter-in-law shall be
considered as family members;
TK. 100.
who has not been an executive of the company in immediately
1.2.b. (iii) √
preceding 2 (two) financial years;
who does not have any other relationship, whether pecuniary
1.2.b. (iv) or otherwise, with the company or its subsidiary or associated √
companies;
who is not a member or TREC (Trading Right Entitlement
1.2.b. (v) √
Certificate) holder, director or officer of any stock exchange;
who is not a shareholder, director excepting independent
1.2.b. (vi) director or officer of any member or TREC holder of stock √
exchange or an intermediary of the capital market;
who is not a partner or an executive or was not a partner or an
executive during the preceding 3 (three) years of the concerned
1.2.b. (vii) company’s statutory audit firm or audit firm engaged in √
internal audit services or audit firm conducting special audit or
professional certifying compliance of this Code;
who is not independent director in more than 5 (five) listed
1.2.b. (viii) √
companies;
who has not been convicted by a court of competent jurisdiction
1.2.b. (ix) as a defaulter in payment of any loan or any advance to a bank or √
a Non-Bank Financial Institution (NBFI);
106

Condition
Title
No. Not (If any)
Complied
Complied
who has not been convicted for a criminal offence involving
1.2.b. (x) √ -
moral turpitude;
The independent director(s) shall be appointed by the Board and
1.2.c. approved by the shareholders in the Annual General Meeting √ -
(AGM);
The post of independent director(s) cannot remain vacant for
1.2.d. √ -
more than 90 (ninety) days;
The tenure of office of an independent director shall be for a
1.2.e. period of 3 (three) years, which may be extended for 1 (one) √ -
tenure only:
1.3 Qualification of Independent Director
Independent director shall be a knowledgeable individual with
integrity who is able to ensure compliance with financial laws, Stated in
1.3 (a) √
regulatory requirements and corporate laws and can make their CV
meaningful contribution to the business;
Business Leader who is or was a promoter or director of an
unlisted company having minimum paid-up capital of Tk. 100.00
1.3.b. (i) √
million or any listed company or a member of any national or
international chamber of commerce or business association;
Corporate Leader who is or was a top level executive not lower
than Chief Executive Officer or Managing Director or Deputy
Managing Director or Chief Financial Officer or Head of Finance
1.3.b.(ii) or Accounts or Company Secretary or Head of Internal Audit √
and Compliance or Head of Legal Service or a candidate with
equivalent position of an unlisted company having minimum paid
up capital of Tk. 100.00 million or of a listed company;
Former official of government or statutory or autonomous or
regulatory body in the position not below 5th Grade of the
1.3.b. (iii) √
national pay scale, who has at least educational background of
bachelor degree in economics or commerce or business or law;
University Teacher who has educational background in
1.3.b. (iv) √
Economics or Commerce or Business Studies or Law;
Professional who is or was an advocate practicing at least in the
High Court Division of Bangladesh Supreme Court or a Chartered
Accountant or Cost and Management Accountant or Chartered
1.3.b. (v) √
Financial Analyst or Chartered Certified Accountant or Certified
Public Accountant or Chartered Management Accountant or
Chartered Secretary or equivalent qualification;
The independent director shall have at least 10 (ten) years of
1.3.c. √
experiences in any field mentioned in clause (b);
In special cases, the above qualifications or experiences may be
1.3.d. √
relaxed subject to prior approval of the Commission.
In special cases the above qualifications may be relaxed subject
1.3. (iii) √ -
to approval of the Commission.
Duality of Chairperson of the Board of Directors and Managing
1.4 √
Director or Chief Executive Officer.
The positions of the Chairperson of the Board and the Managing
1.4.(a) Director (MD) and/or Chief Executive Officer (CEO) of the √
company shall be filled by different individuals;
The Managing Director (MD) and/or Chief Executive Officer
1.4.(b) (CEO) of a listed company shall not hold the same position in √
another listed company;
The Chairperson of the Board shall be elected from among the
1.4.(c) √
non-executive directors of the company;
Annual Report 2020

YEAR OF EXCELLENCE

Condition
Title
No. Not (If any)
Complied
Complied
The Board shall clearly define respective roles and responsibilities
1.4.(d) of the Chairperson and the Managing Director and/or Chief √
Executive Officer;
In the absence of the Chairperson of the Board, the remaining
members may elect one of themselves from non-executive
1.4.(e) directors as Chairperson for that particular Board’s meeting; √
the reason of absence of the regular Chairperson shall be duly
recorded in the minutes.
1.5 The Directors’ Report to Shareholders √
An industry outlook and possible future developments in the
1.5.(i) √
industry;
1.5.(ii). The segment-wise or product-wise performance; √
Risks and concerns including internal and external risk factors,
1.5. (iii) threat to sustainability and negative impact on environment, if √
any;
A discussion on Cost of Goods sold, Gross Profit Margin and Net
1.5. (iv) √
Profit Margin, where applicable;
A discussion on continuity of any extraordinary activities and their
1.5.(v) √
implications (gain or loss);
A detailed discussion on related party transactions along with
a statement showing amount, nature of related party, nature
1.5.(vi) √
of transactions and basis of transactions of all related party
transactions;
A statement of utilization of proceeds raised through public
1.5.(vii) √
issues, rights issues and/or any other instruments;
An explanation if the financial results deteriorate after the
1.5.(viii) company goes for Initial Public Offering (IPO), Repeat Public √
Offering (RPO), Rights Share Offer, Direct Listing, etc.;
An explanation on any significant variance that occurs between
1.5.(ix) Quarterly Financial performances and Annual Financial √
Statements;
A statement of remuneration paid to the directors including
1.5.(x) √
independent directors;
A statement that the financial statements prepared by the
management of the issuer company present fairly its state of
1.5.(xi) √
affairs, the result of its operations, cash flows and changes in
equity;
A statement that proper books of account of the issuer company
1.5.(xii). √
have been maintained;
A statement that appropriate accounting policies have been
consistently applied in preparation of the financial statements
1.5. (xiii) √
and that the accounting estimates are based on reasonable and
prudent judgment;
A statement that International Accounting Standards (IAS) or
International Financial Reporting Standards (IFRS), as applicable
1.5. (xiv) in Bangladesh, have been followed in preparation of the financial √
statements and any departure there from has been adequately
disclosed;
A statement that the system of internal control is sound in design
1.5.(xv) √
and has been effectively implemented and monitored;
A statement that minority shareholders have been protected from
abusive actions by, or in the interest of, controlling shareholders
1.5.(xvi) √
acting either directly or indirectly and have effective means of
redress;
108

Condition
Title
No. Not (If any)
Complied
Complied
A statement that there is no significant doubt upon the issuer
company’s ability to continue as a going concern, if the issuer
1.5.(xvii) √
company is not considered to be a going concern, the fact along
with reasons there of shall be disclosed;
An explanation that significant deviations from the last year’s
1.5.(xviii) operating results of the issuer company shall be highlighted and √
the reasons thereof shall be explained;
A statement where key operating and financial data of at least
1.5.(xix) √
preceding 5 (five) years shall be summarized;
An explanation on the reasons if the issuer company has not
1.5.(xx) √
declared dividend (cash or stock) for the year;
Board’s statement to the effect that no bonus share or stock
1.5.(xxi) √
dividend has been or shall be declared as interim dividend;
The total number of Board meetings held during the year and
1.5.(xxii) √
attendance by each director;
A report on the pattern of shareholding disclosing the aggregate
1.5.(xxiii) number of shares (along with name-wise details where stated √
below) held by:-
Parent or Subsidiary or Associated Companies and other related
1.5.(xxiii).(a) √
parties (name-wise details);
Directors, Chief Executive Officer, Company Secretary, Chief
1.5.(xxiii).(b) Financial Officer, Head of Internal Audit and Compliance and √
their spouses and minor children (name-wise details);
1.5.(xxiii).(c) Executives; and √
Shareholders holding ten percent (10%) or more voting interest in
1.5.(xxiii).(d) √
the company (name-wise details);
In case of the appointment or reappointment of a director, a
1.5.(xxiv) √
disclosure on the following information to the shareholders:-
1.5.(xxiv).(a) a brief resume of the director; √
1.5.(xxiv).(b) nature of his or her expertise in specific functional areas; and √

names of companies in which the person also holds the
1.5.(xxiv).(c) √
directorship and the membership of committees of the Board;
A Management’s Discussion and Analysis signed by CEO or
MD presenting detailed analysis of the company’s position
1.5.( xxv) √
and operations along with a brief discussion of changes in the
financial statements, among others, focusing on:
accounting policies and estimation for preparation of financial
1.5.( xxv) .a. √
statements;
changes in accounting policies and estimation, if any, clearly
describing the effect on financial performance or results and
1.5.( xxv) .b. √
financial position as well as cash flows in absolute figure for such
changes;
comparative analysis (including effects of inflation) of financial
performance or results and financial position as well as cash
1.5.( xxv) .c. √
flows for current financial year with immediate preceding five
years explaining reasons thereof;
compare such financial performance or results and financial
1.5.( xxv) .d. √
position as well as cash flows with the peer industry scenario;
briefly explain the financial and economic scenario of the
1.5.( xxv) .e. √
country and the globe;
risks and concerns issues related to the financial statements,
1.5.( xxv) .f. explaining such risk and concerns mitigation plan of the √
company;
Annual Report 2020

YEAR OF EXCELLENCE

Condition
Title
No. Not (If any)
Complied
Complied
future plan or projection or forecast for company’s operation,
performance and financial position, with justification thereof, i.e.,
1.5.( xxv) .g. √
actual position shall be explained to the shareholders in the next
AGM;
Declaration or certification by the CEO and the CFO to the Board
1.5.(xxvi) as required under condition No. 3(3) shall be disclosed as per √
Annexure-A;
The report as well as certificate regarding compliance of
1.5.(xxvii) conditions of this Code as required under condition No. 9 shall √
be disclosed as per Annexure-B and Annexure-C.
Meetings of the Board of Directors: The company shall conduct
its Board meetings and record the minutes of the meetings
as well as keep required books and records in line with the
1.6 provisions of the relevant Bangladesh Secretarial Standards √
(BSS) as adopted by the Institute of Chartered Secretaries
of Bangladesh (ICSB) in so far as those standards are not
inconsistent with any condition of this Code.
Code of Conduct for the Chairperson, other Board members and
1.7 N/A
Chief Executive Officer
The Board shall lay down a code of conduct, based on the
recommendation of the Nomination and Remuneration
1.7.(a) Committee (NRC) at condition No. 6, for the Chairperson of the N/A
Board, other board members and Chief Executive Officer of the
company;
The code of conduct as determined by the NRC shall be posted
on the website of the company including, among others, prudent
conduct and behavior; confidentiality; conflict of interest;
1.7.(b) N/A
compliance with laws, rules and regulations; prohibition of insider
trading; relationship with environment, employees, customers
and suppliers; and independency.
2. Governance of Board of Directors of Subsidiary Company: √
Provisions relating to the composition of the Board of the
2.(a). holding company shall be made applicable to the composition of √
the Board of the subsidiary company;
At least 1 (one) independent director on the Board of the holding
2.(b). company shall be a director on the Board of the subsidiary √
company;
The minutes of the Board meeting of the subsidiary company
2.(c). shall be placed for review at the following Board meeting of the √
holding company;
The minutes of the respective Board meeting of the holding
2.(d). company shall state that they have reviewed the affairs of the √
subsidiary company also;
The Audit Committee of the holding company shall also review
2.(e). the financial statements, in particular the investments made by √
the subsidiary company.
Managing Director (MD) or Chief Executive Officer (CEO), Chief
3. Financial Officer (CFO), Head of Internal Audit and Compliance √
(HIAC) and Company Secretary (CS).-
The Board shall appoint a Managing Director (MD) or Chief
Executive Officer (CEO), a Company Secretary (CS), a Chief
3.1.(a). √
Financial Officer (CFO) and a Head of Internal Audit and
Compliance (HIAC);
110

Condition
Title
No. Not (If any)
Complied
Complied
The positions of the Managing Director (MD) or Chief Executive
Officer (CEO), Company Secretary (CS), Chief Financial Officer
3.1.(b). √
(CFO) and Head of Internal Audit and Compliance (HIAC) shall be
filled by different individuals;
The MD or CEO, CS, CFO and HIAC of a listed company shall not
3.1.(c). hold any executive position in any other company at the same √
time;
The Board shall clearly define respective roles, responsibilities and
3.1.(d). √
duties of the CFO, the HIAC and the CS;
The MD or CEO, CS, CFO and HIAC shall not be removed from
3.1.(e). their position without approval of the Board as well as immediate √
dissemination to the Commission and stock exchange(s).
3.2. Requirement to attend Board of Directors’ Meetings √
The MD or CEO, CS, CFO and HIAC of the company shall attend
the meetings of the Board: 8 Provided that the CS, CFO and/or
3.2. the HIAC shall not attend such part of a meeting of the Board √
which involves consideration of an agenda item relating to their
personal matters.
Duties of Managing Director (MD) or Chief Executive Officer
3.3. √
(CEO) and Chief Financial Officer (CFO)
The MD or CEO and CFO shall certify to the Board that they have
3.3.(a). reviewed financial statements for the year and that to the best of √
their knowledge and belief:
these statements do not contain any materially untrue statement
3.3.(a). (i). or omit any material fact or contain statements that might be √
misleading;
these statements together present a true and fair view of the
3.3.(a). (ii). company’s affairs and are in compliance with existing accounting √
standards and applicable laws;
The MD or CEO and CFO shall also certify that there are, to the
best of knowledge and belief, no transactions entered into by
3.3.(b) the company during the year which are fraudulent, illegal or in √
violation of the code of conduct for the company’s Board or its
members;
The certification of the MD or CEO and CFO shall be disclosed in
3.3.(c) √
the Annual Report.
4. Board of Directors’ Committee √
For ensuring good governance in the company, the Board shall
√
have at least following subcommittees:
4.(i). Audit Committee √
4.(ii). Nomination and Remuneration Committee N/A
5. Audit Committee √
5.(1). Responsibility to the Board of Directors. √

The company shall have an Audit Committee as a sub-
5.1.(a) √
committee of the Board;
The Audit Committee shall assist the Board in ensuring that the
financial statements reflect true and fair view of the state of
5.1.(b) √
affairs of the company and in ensuring a good monitoring system
within the business;
Annual Report 2020

YEAR OF EXCELLENCE

Condition
Title
No. Not (If any)
Complied
Complied
The Audit Committee shall be responsible to the Board; the
5.1.(c) √
duties of the Audit Committee shall be clearly set forth in writing.
5.(2). Constitution of the Audit Committee √
The Audit Committee shall be composed of at least 3 (three)
5.(2).(a) √
members;
The Board shall appoint members of the Audit Committee
who shall be nonexecutive directors of the company excepting
5.(2).(b) √
Chairperson of the Board and shall include at least 1 (one)
independent director;
All members of the audit committee should be “financially
literate” and at least 1 (one) member shall have accounting or
5.(2).(c) √
related financial management background and 10 (ten) years of
such experience;
When the term of service of any Committee member expires
or there is any circumstance causing any Committee member
to be unable to hold office before expiration of the term of
service, thus making the number of the Committee members to
5.(2).(d) be lower than the prescribed number of 3 (three) persons, the √
Board shall appoint the new Committee member to fill up the
vacancy immediately or not later than 1 (one) month from the
date of vacancy in the Committee to ensure continuity of the
performance of work of the Audit Committee;
The company secretary shall act as the secretary of the
5.(2).(e) √
Committee;
The quorum of the Audit Committee meeting shall not constitute
5.(2).(f) √
without at least 1 (one) independent director.
5.(3). Chairperson of the Audit Committee √
The Board shall select 1 (one) member of the Audit Committee
5.3.(a) to be Chairperson of the Audit Committee, who shall be an √
independent director;
In the absence of the Chairperson of the Audit Committee, the
remaining members may elect one of themselves as Chairperson
for that particular meeting, in that case there shall be no problem
5.3.(b) √
of constituting a quorum as required under condition No. 5(4)
(b) and the reason of absence of the regular Chairperson shall be
duly recorded in the minutes.
Chairperson of the Audit Committee shall remain present in the
5.3.(c) √
Annual General Meeting (AGM):
5.4. Meeting of the Audit Committee √
The Audit Committee shall conduct at least its four meetings in a
5.4.(a) √
financial year
The quorum of the meeting of the Audit Committee shall be
constituted in presence of either two members or two third
5.4.(b) √
of the members of the Audit Committee, whichever is higher,
where presence of an independent director is a must.
5.5. Role of Audit Committee √
5.5.(a) Oversee the financial reporting process √
5.5.(b) monitor choice of accounting policies and principles √

monitor Internal Audit and Compliance process to ensure that
it is adequately resourced, including approval of the Internal
5.5.(c) √
Audit and Compliance Plan and review of the Internal Audit and
Compliance Report
112

Condition
Title
No. Not (If any)
Complied
Complied
5.5.(d) oversee hiring and performance of external auditors √
hold meeting with the external or statutory auditors for review of

5.5.(e) the annual financial statements before submission to the Board √
for approval or adoption
review along with the management, the annual financial
5.5.(f) √
statements before submission to the Board for approval
review along with the management, the quarterly and half yearly
5.5.(g) √
financial statements before submission to the Board for approval
5.5.(h) review the adequacy of internal audit function √
review the Management’s Discussion and Analysis before

5.5.(i) √
disclosing in the Annual Report
review statement of all related party transactions submitted by
5.5.(j) √
the management
review Management Letters or Letter of Internal Control
5.5.(k) √
weakness issued by statutory auditors
oversee the determination of audit fees based on scope and
5.5.(l) magnitude, level of expertise deployed and time required for √
effective audit and evaluate the performance of external auditors
oversee whether the proceeds raised through Initial Public
Offering (IPO) or Repeat Public Offering (RPO) or Rights Share
5.5.(m) √
Offer have been utilized as per the purposes stated in relevant
offer document or prospectus approved by the Commission
5.6. Reporting of the Audit Committee √
5.6.(a) Reporting to the Board of Directors √
5.6.(a) .(i). The Audit Committee shall report on its activities to the Board. √
The Audit Committee shall immediately report to the Board on

5.6.(a) .(ii). √
the following findings, if any:-
5.6.(a) .(ii).(a) report on conflicts of interests √
suspected or presumed fraud or irregularity or material defect

5.6.(a) .(ii).(b) identified in the internal audit and compliance process or in the √
financial statements
suspected infringement of laws, regulatory compliances
5.6.(a) .(ii).(c) √
including securities related laws, rules and regulations
any other matter which the Audit Committee deems necessary
5.6.(a) .(ii).(d) √
shall be disclosed to the Board immediately
5.6.(b) Reporting to the Authorities √
If the Audit Committee has reported to the Board about anything

which has material impact on the financial condition and
results of operation and has discussed with the Board and the
management that any rectification is necessary and if the Audit
5.6.(b) Committee finds that such rectification has been unreasonably √
ignored, the Audit Committee shall report such finding to the
Commission, upon reporting of such matters to the Board for
three times or completion of a period of 6 (six) months from the
date of first reporting to the Board, whichever is earlier.
5.7. Reporting to the Shareholders and General Investors √
Annual Report 2020

YEAR OF EXCELLENCE

Condition
Title
No. Not (If any)
Complied
Complied
Report on activities carried out by the Audit Committee, including
any report made to the Board under condition No. 5(6)(a)(ii)
5.7. above during the year, shall be signed by the Chairperson of the √
Audit Committee and disclosed in the annual report of the issuer
company.
6. Nomination and Remuneration Committee (NRC). -
6.1. Responsibility to the Board of Directors -
The company shall have a Nomination and Remuneration

6.1.(a). -
Committee (NRC) as a subcommittee of the Board
The NRC shall assist the Board in formulation of the nomination
criteria or policy for determining qualifications, positive attributes,
6.1.(b). experiences and independence of directors and top level -
executive as well as a policy for formal process of considering
remuneration of directors, top level executive
The Terms of Reference (ToR) of the NRC shall be clearly set
6.1.(c) forth in writing covering the areas stated at the condition No. 6(5) -
(b).
6.2. Constitution of the NRC -
The Committee shall comprise of at least three members

6.2.(a). -
including an independent director
6.2.(b). All members of the Committee shall be non-executive directors -
Members of the Committee shall be nominated and appointed

6.2.(c). -
by the Board
The Board shall have authority to remove and appoint any
6.2.(d). -
member of the Committee
In case of death, resignation, disqualification, or removal of any
member of the Committee or in any other cases of vacancies,
6.2.(e). -
the board shall fill the vacancy within 180 (one hundred eighty)
days of occurring such vacancy in the Committee
The Chairperson of the Committee may appoint or co-opt any
external expert and/or member(s) of staff to the Committee as
advisor who shall be non-voting member, if the Chairperson
6.2.(f). -
feels that advice or suggestion from such external expert and/
or member(s) of staff shall be required or valuable for the
Committee
The company secretary shall act as the secretary of the
6.2.(g). -
Committee
The quorum of the NRC meeting shall not constitute without
6.2.(h). -
attendance of at least an independent director
No member of the NRC shall receive, either directly or indirectly,
any remuneration for any advisory or consultancy role or
6.2.(i) -
otherwise, other than Director’s fees or honorarium from the
company.
6.3. Chairperson of the NRC -
The Board shall select 1 (one) member of the NRC to be

6.3.(a). Chairperson of the Committee, who shall be an independent -
director
114

Condition
Title
No. Not (If any)
Complied
Complied
In the absence of the Chairperson of the NRC, the remaining
members may elect one of themselves as Chairperson for
6.3.(b). -
that particular meeting, the reason of absence of the regular
Chairperson shall be duly recorded in the minutes
The Chairperson of the NRC shall attend the annual general
6.3.(c) -
meeting (AGM) to answer the queries of the shareholders
6.4. Meeting of the NRC -
6.4.(a) The NRC shall conduct at least one meeting in a financial year. -
The Chairperson of the NRC may convene any emergency
6.4.(b) -
meeting upon request by any member of the NRC.
The quorum of the meeting of the NRC shall be constituted in
presence of either two members or two third of the members
6.4.(c) of the Committee, whichever is higher, where presence of an -
independent director is must as required under condition No.
6(2)(h).
The proceedings of each meeting of the NRC shall duly be
6.4.(d) recorded in the minutes and such minutes shall be confirmed in -
the next meeting of the NRC.
6.5. Role of the NRC -
NRC shall be independent and responsible or accountable to the
6.5.(a) -
Board and to the shareholders
NRC shall oversee, among others, the following matters and
6.5.(b). -
make report with recommendation to the Board
formulating the criteria for determining qualifications, positive
attributes and independence of a director and recommend a
6.5.(b). .(i). -
policy to the Board, relating to the remuneration of the directors,
top level executive, considering the following:
the level and composition of remuneration is reasonable and
6.5.(b).(i).a sufficient to attract, retain and motivate suitable directors to run -
the company successfully
the relationship of remuneration to performance is clear and
6.5.(b).(i).b -
meets appropriate performance benchmarks
remuneration to directors, top level executive involves a balance
between fixed and incentive pay reflecting short and long-
6.5.(b).(i).c -
term performance objectives appropriate to the working of the
company and its goals
devising a policy on Board’s diversity taking into consideration
6.5.(b).(ii). age, gender, experience, ethnicity, educational background and -
nationality
identifying persons who are qualified to become directors
and who may be appointed in top level executive position in
6.5.(b).(iii). -
accordance with the criteria laid down, and recommend their
appointment and removal to the Board
formulating the criteria for evaluation of performance of
6.5.(b).( iv). -
independent directors and the Board
identifying the company’s needs for employees at different
6.5.(b).( v). levels and determine their selection, transfer or replacement and -
promotion criteria
developing, recommending and reviewing annually the
6.5.(b).( vi). -
company’s human resources and training policies
The company shall disclose the nomination and remuneration
6.5.(c). policy and the evaluation criteria and activities of NRC during the -
year at a glance in its annual report
Annual Report 2020

YEAR OF EXCELLENCE

Condition
Title
No. Not (If any)
Complied
Complied
7. External or Statutory Auditors √
The issuer company shall not engage its external or statutory
7.1. √
auditors to perform the following services of the company:
7.1.(i). appraisal or valuation services or fairness opinions √
7.1.(ii). financial information systems design and implementation √

book-keeping or other services related to the accounting records
7.1.(iii). √
or financial statements
7.1. ).(iv). broker-dealer services √
7.1. ).(v). actuarial services √
7.1. ).(vi). internal audit services or special audit services √
7.1. ).(vii) any service that the Audit Committee determines √

audit or certification services on compliance of corporate
7.1. (viii) √
governance as required under condition No. 9(1)
7.1.(ix) any other service that creates conflict of interest √
No partner or employees of the external audit firms shall possess
any share of the company they audit at least during the tenure
of their audit assignment of that company; his or her family
7.2. members also shall not hold any shares in the said company: √
Provided that spouse, son, daughter, father, mother, brother,
sister, son-in-law and daughter-in-law shall be considered as
family members.
Representative of external or statutory auditors shall remain
present in the Shareholders’ Meeting (Annual General Meeting
7.3. √
or Extraordinary General Meeting) to answer the queries of the
shareholders.
8. Maintaining a website by the Company √
The company shall have an official website linked with the
8.1. √
website of the stock exchange.
The company shall keep the website functional from the date of
8.2. √
listing
The company shall make available the detailed disclosures
8.3. on its website as required under the listing regulations of the √
concerned stock exchange(s)
9. Reporting and Compliance of Corporate Governance √
The company shall obtain a certificate from a practicing
Professional Accountant or Secretary (Chartered Accountant or
Cost and Management Accountant or Chartered Secretary) other
9.1. than its statutory auditors or audit firm on yearly basis regarding √
compliance of conditions of Corporate Governance Code of the
Commission and shall such certificate shall be disclosed in the
Annual Report.
The professional who will provide the certificate on compliance
9.2. of this Corporate Governance Code shall be appointed by the √
shareholders in the annual general meeting
The directors of the company shall state, in accordance with
9.3. the Annexure-C attached, in the directors’ report whether the √
company has complied with these conditions or not.
116
CEO AND CFO’S

DECLARATION TO THE BOARD
Date: 30 June, 2021
The Board of Directors

Sonali Bank Limited
35-42, 44 Motijheel Commercial Area,
Dhaka, Bangladesh.
Subject: Declaration on Financial Statements for the year ended on 31 December 2020.
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. SEC/CMRRCD/ 2006-158/134/
Admin/80 dated 03 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare
that:
(1) The Financial Statements of Sonali Bank Limited Limited for the year ended on 31 December 2020 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable
in the Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order
for the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in
its financial statements;
(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and
procedures of the Company were consistently followed; and
(6) The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and
there exists no material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern.
In this regard, we also certify that: -
(i) We have reviewed the financial statements for the year ended on 31 December 2020 and that to the best of our knowledge
and belief:
(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with existing
accounting standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or its members.
Sincerely yours,
(Md. Ataur Rahman Prodhan) (Subhash Chandra Das FCMA, FCA)

CEO & Managing Director Chief Financial Officer (CFO)
Annual Report 2020

YEAR OF EXCELLENCE
DIRECTORS’ RESPONSIBILITY
FOR FINANCIAL STATEMENTS
Proper Financial Reporting Adequate Internal Control
The Board of Director of SBL is responsible to cause In line with requirement of section 15 (C) of Bank Companies
preparation and true & fair presentation of the annual financial Act-1991 (Amended- 2018), the Board of Directors of SBL
statements of 2020 and other financial information and is entrusted to establish suitable system of Internal Control
reports contained in this annual report by the management. and Compliance (ICC). Accordingly the Board is very much
The accompanying financial statements have been prepared concerned about this. In setting out a strong internal control
in accordance with International Financial Reporting and compliance framework within the organization, the
Standards (IFRS) and Bangladesh Accounting Standards Board established Board Audit Committee and Board Risk
as espoused by the Institute of Chartered Accountants of Management Committee to ensure effective ICC in the
Bangladesh and Companies Act 1994, Banking Companies Bank as a part of oversight functioning. In addition to that,
Act 1991 (Amended-2018), rules and regulations of SBL has formed Management Committee (MANCOM) to
Bangladesh Bank and Bangladesh Securities and Exchange identify, measure, monitor and control the risks through
Rules 1987 as considered relevant and appropriate under framing required policies and procedures with the approval
the circumstances. In cases where amounts are stated of the Board of Directors.
based on estimate those are based on informed judgment
and estimate made by the management and agreed by Gripping of Banking Operational Risks
the Board of Directors. The financial information and data The policy of managing operational risk through internal
provided in this annual report is fully consistent with the control and compliance is approved by the Board taking into
financial statements. account the relevant guidelines of Bangladesh Bank. The
committee puts in place policies and procedures to identify,
While preparing the report, the Directors didn’t approve the measure, monitor and control these risks and monitors the
financial statements unless they are satisfied that they give adequacy and effectiveness of the internal control system
a true and fair view of the state of affairs of the Company based on the Bank’s established policy and procedure.
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 Independency to the Audit Committee
that the Company keeps proper accounting records that The Internal control, accounting policies and financial
disclose, with reasonable accuracy, the financial position of reporting of SBL are under direct supervision of the audit
the Company. They have driven the wheel of responsibility committee of the Board that in turn report to the Board
for safeguarding the assets of the Bank. 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
INCOME RETAINED BALANCE
STATEMENTS EARNINGS SHEET
Board audit Committee and the Board independently.
Gratis Accessibility to the External Audits
Revenues Net Income Asset
External audit of SBL has the full access to the Audit
-Expenses -Dividends -Liabilities Committee of the Board for ensuring effectiveness of
Retained Owners’ internal control procedure and reliability of financial
Net Income reporting. The Internal Control & Compliance Division of
Earnings Equity
the Bank conducts periodic audits to provide reasonable
Nothing has come to the attention of the Directors to assurance that the established policies and procedures of
indicate that the Bank will not remain a going concern for at the company were consistently followed. The auditor of the
least twelve months from the date of this statement. company ACNABIN, Chartered Accountants, have carried
out annual audit to review on the system of internal controls,
We confirm that to the best of our knowledge: as they consider appropriate and necessary, for expressing
i. The financial statements, prepared in accordance with their opinion on the financial statements. They have also
the applicable set of accounting standards, give a true examined the financial statements made available by the
and fair view of the assets, liabilities, financial position management together with all the financial records, related
and profit or loss of the Bank and the undertakings data, minutes of shareholders and board meetings, relevant
included in the consolidation taken as a whole. policies and expressed their clean opinion.
ii. Financial statements reflects the development and With best regards
performance of the business and the position of the
Bank and the undertakings included in the consolidation On behalf of the Board of the Directors
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 (Ziaul Hasan Siddiqui)
have been applied. Chairman
118
REPORT OF THE AUDIT COMMITEE
REPORT OF
THE AUDIT COMMITTEE
A.k.m. Kamrul Islam Fca, Fcs

Chairman, Board Audit Committee
The Audit Committee of the Board of Sonali Bank Limited has Key Objectives of Audit Committee
been functioning as a sub-committee appointed by the Bank’s
Board of Directors in compliance with the Bank Company z To review the financial reporting process, the
Act 1991 (amended 2018), Bangladesh Bank’s BRPD Circular system of internal control and compliance, the
No. 11 of 27 October 2013 and the relevant Notifications approach to management of financial risks, the
of Bangladesh Securities and Exchange Commission
audit process, the processes used by the Bank
(BSEC) as well as international best practices on Corporate
Governance. The primary purposes of the Audit Committee to identify, quantify and mitigate significant
are to provide independent and objective oversight of the risks to the achievement of objectives, the
accounting and financial reporting functions along with the findings of Bangladesh Bank’s processes for
internal controls of the Bank and its affiliates and to ensure
monitoring compliance under relevant laws
the objectivity of the Bank’s financial statements. The Audit
and regulations and its own code of business
Committee’s function is one of oversight and review, and it
is not required to prepare or audit the financial statements, conducts.
to define the scope of the audit, to control the Company’s z To assist the Board in discharging its oversight
accounting policies and practices, or to define the standards responsibilities by implementing relevant
used in preparing the financial statements strategies and policies.
Annual Report 2020

YEAR OF EXCELLENCE
Composition of Audit Committee adopted by the bank and ensured that the
policies are properly applied in the preparation
In compliance with Section 3.2(i) of Corporate Governance
of the Financial Statements of the Bank.
Notification issued by BSEC on 07 August 2012 and
z Review of Interim Financial Statement: The
Bangladesh Bank’s BRPD Circular No. 11 of 27 October 2013,
Audit Committee reviewed the quarterly
Board Audit Committee (AC) of Sonali Bank Limited was last
and the half yearly Financial Statements and
re-constituted with the following Board members:
ensured that authentic and reliable financial
Status Status information are incorporated in those
Name with the with the statements and in other interim reports.
Bank Committee
z Review of Financial Statements: The Audit
Mr. A.K.M. Kamrul Islam FCA, FCS Director Chairman Committee reviewed and examined the
Financial Statements of 2020 of the Bank to
Mr. Ishtiaque Ahmed Chowdhury Director Member
confirm whether all the required disclosures
Dr. Daulatunnaher Khanam Director Member and information have been incorporated in
the Financial Statements and whether the
Professor Dr. Mohammad Kaykobad Director Member Bank followed International Accounting
Standards (IAS) and International Financial
Roles and Responsibilities of Audit Committee
Reporting Standards (IFRS) adopted as
The roles and responsibilities of Audit Committee of Bangladesh Accounting Standards (BAS) and
Sonali Bank Limited have been specified by considering Bangladesh Financial Reporting Standards
the provisions of BRPD Circular No 11 of 27 October 2013 (BFRS) by the Institute of Chartered
Corporate Governance Notification issued by BSEC on 07 Accountants of Bangladesh, Bank Company
August 2012 and other best practice corporate governance Act 1991(amended 2018), Bangladesh
guidelines and standards. Bank Guidelines, the Companies Act 1994,
the Bangladesh Securities and Exchange
Meetings of Audit Committee
Commission Rules and other laws and rules
The Audit Committee of the bank held as many as 8 (Eight) applicable in Bangladesh and also Standards
meetings in 2020. In those meetings, the committee issued by the Accounting and Auditing
reviewed the findings and recommendations in the reports Organization for Islamic Financial Institutions
of the bank’s internal and external auditors and assessed the (AAOIFI), Bahrain, etc. The Committee
remedial actions taken by the management. Proceedings recommended the Financial Statements for
of the Audit Committee meetings were reported timely and the year 2020 for consideration of the Board.
regularly to the Board of Directors as well as Bangladesh
Other activities:
Bank in compliance with the DOS circular letter no. 07 of
24 April 2011. z Oversee the financial reporting process &
liquidity position of the bank at regular basis.
Major Highlights of the Audit Committee activities in
z Reviewed internal & external auditors findings
2020
on the irregularities both major & significance
During the year under review, the committee performed at different branches of the bank and
amongst others the following key functions: reference those to the Board with appropriate
z Appointment of Statutory Auditors: The Audit recommendation for decision, reviewed draft
Committee made recommendations to the & audited financial statements for the year
Board for appointing Statutory Auditors in the 2019.
Annual General Meeting. z Reviewed performance of internal audit 2020.
z Meeting with Statutory Auditors: The z Reviewed the reconciliation performance of
committee met with the statutory auditors inter branch transaction accounts and advised
for finalization of financial statements for the the management to keep it regular.
year 2020. It also looks into account the issues z Reviewed the comprehensive inspection
raised in the Management Letter and advised report on SBL by Bangladesh bank as on
the management to take appropriate remedial 31.12.2019.
actions. z Reviewed the cash holding position of
z Review of Accounting Policy: The Audit different branches & advise the management
Committee reviewed the accounting policies to ensure maintenance of optimum level of
120
REPORT OF THE AUDIT COMMITEE
cash to reduce idle cash in hand as per as core risk management guidelines and advised
practicable. the managements to implement the same
z Reviewed existing policy of ICC, Risk Grading, more effectively.
Credit Policy, Quarterly Risk Management z Reviewed the audit report of the subsidiaries
Paper etc. and made recommendation to and directing the authority to take necessary
Board for approval. action as appropriate.
z Reviewed unaudited quarterly & half yearly
Acknowledgements
financial statements of the bank for the year
2020. The Committee would like to place on record its sincere
z Monitor internal control risk management thanks and gratitude to the regulatory authorities, in
process. particular, Bangladesh Bank and the Bangladesh Securities
z Discussed and reviewed annual budget 2020 and Exchange Commission, external auditors, the Board of
& revised budget 2019 and recommended to Directors and management for their earnest support while
the board with some amendments. performing its duties and responsibilities.
z Reviewed the compliance status of audit
objections and advised the management to In conclusion, I would like to convey my sincere thanks to
ensure full compliance of regulatory, legal the members of the Committee for their invaluable support
and significant issues meticulously. and cooperation in carrying out the tasks entrusted with the
z Reviewed the audit rating by internal audit on Committee.
Anti Money Laundering of all branches for the For and on behalf of Audit Committee
year 2019.
z Discuss and reviewed the effectiveness
of annual audit plan 2020 and made
recommendation to the board for approval
with suggested amendments. (A.K.M. Kamrul Islam FCA, FCS)
z Reviewed existing risk management Chairman
procedures along with implementation of Board Audit Committee
Annual Report 2020

YEAR OF EXCELLENCE
NOTE FROM THE CHAIRMAN OF

RISK MANAGEMENT COMMITTEE
Ishtiaque Ahmed Chowdhury

Chairman, Board Risk Management Committee
Over the past decade, Bangladesh’s economy has stood The adverse effects of the pandemic are expected to exceed
on a strong footing. During this time, economic growth the 2008-2009 global financial recession. The Hon’ble
has increased on an average of 6.6 percent and crossed Prime Minister announced an incentive package of about
8.0 percent in FY2018-19. This sustained achievement of 1.2 lakh crore taka to address the global crisis and keep the
Bangladesh’s GDP growth has been praised worldwide. The country’s economy moving and bring it back on track. The
coronavirus, which has emerged as a global pandemic, poses incentive package announced is 4.3 percent of GDP. Some
a major risk to the global economy. Its effects are already of the notable activities of this package are - to provide
being observed in Bangladesh economy. There has been a special funds for export oriented industries, provide working
negative growth in import and export trade in FY2019-20. capital to affected industries and services sector enterprises
However, the growth of remittance flow has been positive and micro (including cottage industries), small and medium
with 10.87 percent growth during the fiscal year. In addition, enterprises, increase the benefits of Export Development
the current account deficit has narrowed during FY2019- Fund, increase the coverage of social safety net, direct cash
20. Moreover, the surplus of the overall balance of the BOP transfer to targeted people and creation of various funds for
significantly increased the foreign exchange reserves and as the agricultural sector. In addition to financial incentives,
on 30 June 2020, it stood at US$ 36 billion. It has grown to various measures have been taken to reduce import duty
a record US$ 40 billion in recent times. The exchange rate of on COVID-19 related health and medical products and
Taka, especially the exchange rate of Taka with the US dollar, provide policy assistance to increase liquidity in the banking
was stable. Inflation was also under control during this fiscal sector. Through implementation of this attractive and
year due to good production in the agricultural sector and timely stimulus package, the government has been able
maintaining uninterrupted supply of commodities. to play a highly effective role in employment creation and
122
REPORT OF THE RISK MANAGMENT COMMITTEE
safeguarding employment, stimulating domestic demand We have a number of ongoing initiatives that will further
and keeping economic activities moving. As a result, the enhance the risk management framework and capability of
trend in the Bangladesh economy has started a turnaround the bank. As part of this framework, in 2020, the Board’s Risk
towards the high growth trajectory. Management Committee has approved a set of principles
by conducting monthly meetings that describe the risk
In this regard Sonali Bank Limited focused on various
management culture we wish to sustain:
macro-prudential measures including intensive surveillance
on adherence to prescribed Asset-Liability Management z The Board has reviewd quarterly the large
(ALM) and Foreign Exchange Risk Management Guidelines borrower’s condition of the bank according to
to rationalize the Advance/Deposit Ratios to curb the prescribed comprehensive roadmap.
over-exuberance in lending. It has seen improved asset z The Board has reviewed all the segments
quality across our businesses with stronger origination under core risk management.
discipline and targeted growth. Loan diversification across z The Board has instructed to submit a policy/
the industry sectors and geographics increased as the
guidelines on Sahiah Audit.
bank continued to add new clients selectively. Our focus
z Board has approved IT Equipment Disposal
on embedding a sustainable risk culture and an effective
enterprise risk management approach are helping to build a
Policy of Soanli Bank Limited, Version 1.0, 2020
more resilient bank for the benefit of our employees, clients I E-mail Policy of Sonali Bank Limited, Version
and stakeholders. Keeping in mind the burning risk issues 1.0, 2020 and Internal Capital Adequacy
we have made significant progress in our work to combat Assessment Process (ICAAP).
financial crime and have increased focus on our cyber risk z The Board has reviewed Treasury Manual,
management capabilities. Risk is a shared responsibility of Liquidity Risk Management Policy, Asset
everyone in the bank and is an intrinsic part of every decision Liability Management Policy/Guidelines,
that we make. Investment Policy.
Composition of the Board of Directors Risk The Bank has multiple initiatives underway to improve
Management Committee infrastructure for compliance of risk management, exposure
management, data quality, stress testing, operational risk
In line with the circular no.11 dated 27 October, 2013 of management and reporting. We have also worked to
Bangladesh Bank, the Board of Directors Risk Management streamline and simplify our processes to serve clients better
Committee of Sonali Bank Limited was last re-constituted and drive internal efficiencies.
with the following members of the Board of Directors:
Before I conclude, I wish to extend my sincere gratitude
Status Status to my colleagues in the Risk Management Committee for
Sl Name with the with the their valuable guidance, support and contribution in carrying
Bank committee out the tasks of the Committee smoothly. I also wish to
place my sincere appreciation for the good work rendered
01 Mr. Ishtiaque Ahmed Chowdhury Director Chairman by the member of Risk Management Committee of the
Bank and the executives along-with the officers of the Risk
02 Dr. Daulatunnaher Khanam Director Member Management Division of the Bank. I am profoundly thankful
to the Chairman and other members of the Board for their
03 Mr. Md. Mofazzal Husain Director Member confidence reposed in me for steering the risk management
agenda of the Bank.
04 Dr. Mohammad Kaykobad Director Member
Risk management is a dynamic process.The Board of

Directors Risk Management Committee has responsibility
for oversight and review of prudential risks, including but (Ishtiaque Ahmed Chowdhury)
not limited to credit, country cross-border, market, pension, Chairman
capital, liquidity and funding and operational risks. The Board Risk Management Committee
Committee also reviews on key cyber risks, threats, events,
project updates and the Board’s top risk profile updates as
identified. The Committee receives regular reports on risk
management, including our portfolio trends, policies and a
standard, stress testing, liquidity and capital adequacy, and is
authorized to investigate or seek any information relating to
and activity within its terms of reference.
Annual Report 2020

YEAR OF EXCELLENCE
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 Comptroller of Auditor General of

Bangladesh Bank Bangladesh
Government and National Board of Revenue External Auditors
other regulators BSEC All business chambers
ICAB, ICMAB, ICSB
Retail customers Q-cash cardholders

Customers Rural credit customers Remittance customers
SME and corporate client Importer and exporter
Shareholders Government of the People’s Republic of Bangladesh
Management trainees and interns

Employees
Correspondent banks Maintenance and security service

providers
Suppliers and Foreign remittance agents
Service Providers Landlord of leased premises
Communities and Professionals and self-employers Graduate students

Environment Civil society Different communities
124
STAKEHOLDERS' INFORMATION
Shareholding Structure of SBL :

Number of Shares
Particulars
As at 31 December, 2020 As at 31 December, 2019
General Public - -
Government 453,000,000 453,000,000
Total 453,000,000 453,000,000
Present Shareholding Pattern

(%) of
SI. Sponsor Shareholders No. of Shares Amount in Tk.
Shareholding
1 The Government of the People's Republic of
Bangladesh: On Behalf of Secretary Finance Division
452,999,991 45,299,999,100 99.999998234
Ministry of Finance, The Government of the People’s
Republic of Bangladesh
Individual Directors nominated by the Government
2 Mr. Ziaul Hasan Siddiqui 1 100 0.00000022075
3 Mr. A.B.M Ruhul Azad 1 100 0.00000022075
4 Mr. A. K. M. Kamrul Islam FCA, FCS 1 100 0.00000022075
5 Mr. Ishtiaque Ahmed Chowdhury 1 100 0.00000022075
6 Dr. Daulatunnaher Khanam 1 100 0.00000022075
7 Mr. Md. Mofazzal Husain 1 100 0.00000022075
8 Mr. Molla Abdul Wadud 1 100 0.00000022075
9 Professor Dr. Mohammad Kaykobad 1 100 0.00000022075
10 Mr. Md. Ataur Rahman Prodhan 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:
% of Shareholding as at
SI. Particulars
31 December, 2020
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 2020 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.
Annual Report 2020

YEAR OF EXCELLENCE
Redressing to Shareholders’ Observations/ Suggestions:
In the 13th 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 Division wise deposits have been included in Financial Statements
1.
Financial Statements. since 2014.
To include division wise loans and advances Division wise loans and advances have been included in Financial
2.
into Financial Statements. Statements since 2014.
Till 31.12.2020, SBL has established its own 125 ATMs and 08 co-
To increase sufficient number of ATM Booths branded ATM Booths with a joint collaboration of Bangladesh Post
with sophisticated machines in both urban
3. Office. Furthermore, SBL card holders can also get access of their
and rural branches and urged to make the
Bank's website user friendly. cards from other booths countrywide. 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

4. AGM will be arranged subject to availability of suitable venue.
Saturday in future, if possible
Suggested for publishing and printing

of Annual Report in abridged form with Annual Report is published through the website of SBL (www.
5. important data/information and uploading sonalibank.com.bd). Mentionable here is that Annual Report of the
the detailed Annual Report in the website of previous year has been preserved in the mentioned web address.
the Bank ensuring green banking practice.
Necessary guidelines, instructions in this regard have been provided

Suggested for rendering better customer
to the branches by the Management of the Bank from time to time
6. service by the branch officials other than that
following constant supervision and monitoring from Head Office
of conventional banks.
regarding meticulous compliance of the same.
Suggested to provide adequate logistic

The Management of the Bank is heartily trying to provide adequate
support, modern technology and well
logistic support, modern technology and well decoration to all
7. decoration to all branches for compliance
branches for compliance of the Bank and improvement of customer
of the Bank and improvement of customer
services.
services.
126
(i) Present Directors of Sonali Bank Limited and their interest in the Bank :
Date of
SI. Name Present Address Appointment/ No. of Shares
Reappointment
Mr. Ziaul Hasan Siddiqui

01. - 28-08-2019 01
Chairman of the Board of Directors
02. Mr. A.B.M Ruhul Azad - 15-06-2021 01
03. Mr. A. K. M. Kamrul Islam FCA, FCS - 22-12-2016 01
04. Mr. Ishtiaque Ahmed Chowdhury - 19-09-2018 01
05. Dr. Daulatunnaher Khanam - 13-01-2019 01
06. Mr. Md. Mofazzal Husain - 13-05-2019 01
07. Mr. Molla Abdul Wadud - 30-07-2019 01
08. Professor Dr. Mohammad Kaykobad - 25-08-2020 01
09. Mr. Md. Ataur Rahman Prodhan - 28-08-2019 01
(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. Managing
SI. Name Status with SBL Status
Director, managing agent, guarantor,
employee etc.
Mr. Ziaul Hasan Siddiqui

1. Chairman of the Board of Chairman -- --
Directors
2. Mr. A.B.M Ruhul Azad Director -- --
Mashnoons Limited Chairman
Senior Vice-
Dhaka Chamber of Commerce and Industry
Chairman
(DCCI)
&Director
Mr. A.K.M. Kamrul Islam FCA,
3. Director Japan Bangladesh Chamber of Commerce
FCS
and Industries (JBCCI) Islam Aftab Kamrul & Director
Co.(Chartered Accountants)
Transparency International Bangladesh Partner

Chapter Life Member
Mr. Ishtiaque Ahmed

4. Director -- --
Chowdhury
5. Dr. Daulatunnaher Khanam Director -- --
6. Mr. Md. Mofazzal Husain Director -- --
7. Mr. Molla Abdul Wadud Director -- --
Annual Report 2020

YEAR OF EXCELLENCE
Name of the firms/companies in which

interested as proprietor, partner. Managing
SI. Name Status with SBL Status
Director, managing agent, guarantor,
employee etc.
Professor Dr. Mohammad

8. Director -- --
Kaykobad
Institute of Bankers Bangladesh (IBB) Vice-Chairman
Sonali Exchange Co. Inc., New York, USA Director
Primary Dealers Bangladesh Ltd. (PDBL) Director
Investment Corporation of Bangladesh (ICB) Director
CEO & Sonali Investment Ltd. (SIL) Director

Mr. Md. Ataur Rahman
9. Managing
Prodhan Central Depository Bangladesh Ltd. (CDBL)
Director Director
Industrial and Infrastructure Development

Director
Finance Company Ltd (IIDFC)
Bangladesh Institute of Bank Management

Director
(BIBM)
Bangladesh Foreign Exchange Dealers

Member
Association (BAFEDA)
128
COMPARATIVE FINANCIAL
HIGHLIGHTS OF SBL
(Figure in million except stated otherwise)
Particulars 2020 2019 Increase(Decrease) Change %
Income Statement
Total revenue 84780 76810 7970 10.38
Total expenses 63253 59710 3543 5.93

Operating profit 21527 17100 4246 24.83
Profit before tax 5342 4753 589 12.39
Profit after tax 3234 2710 524 19.34
Earnings per share 7.14 5.98 1.16 19.40
Asset and Liabilities
Total Assets 1591233 1472601 118632 8.06
Earning Assets 1195517 1068332 127185 11.90
Total loans and advances 586232 551026 35206 6.39
Fixed Assets including Premises, Furniture and Fixture 33891 33466 425 1.27
Total deposit 1258786 1158788 9998 8.63

Shareholders' equity 85615 68193 17422 25.55
Capital
Paid up capital 45300 45300 0 0
Capital maintained 63500 53096 10404 19.59
Risk Weighted Assets (RWA) 633601 526242 107359 20.40
Capital required 63360 52624 10736 20.40
Capital Adequacy Ratio (CAR)/Capital to Risk weighted Assets
10.02% 10.09% (0.07) (0.69)
Ratio (CRAR)
Share Information
Earnings per Share 7.14 5.98 1.16 19.69
Net Assets Value per Share (NAVPS) 189.00 150.54 38.46 25.55
Number of share (in million) 453.00 453.00 0 0
Regulatory Ratio
Cash Reserve Requirement (CRR) 13% 7.90% 5.1 64.55
Statutory Liquidity Ratio (SLR) 50.02% 41.57% 8.45 20.33
Capital Adequacy Ratio (CAR) 10.02% 10.09% (.07) (0.69)
Credit Deposit Ratio 46.57% 47.55% (0.98) (2.06)
Asset Quality
Amount of classified loans and advances 107673 111994 (4321) (3.85)

% of classified loans and advances 18.37% 20.32% (1.95) (9.60)
Required provision for loans and advances 70166 58374 11792 20.20
Annual Report 2020

YEAR OF EXCELLENCE
GRAPHICAL
PRESENTATION
Operating Profit Net Profit After Tax
(Tk. in million) (Tk. in million)
7,092
21,527
20,257
17,100
11,955
3,234
2,710
2,264
1,516
4,251
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Shareholders' Fund Earning Per Share (EPS)

(Tk. in million) (in Tk.)
85616
18.50
70137
68193
67375
65902
7.14
5.98
5.47
3.96
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Paid up Capital Capital Adequacy Ratio*

(Tk. in million)
10.35%
10.33%
45300
45300
41300
10.10%
10.09%
10.02%
38300
38300
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
130
GRAPHICAL
PRESENTATION
Total Asset Earning Asset Non Earning Asset
1591234
1195517
1472601
1068333
1306842
1256712
1200589
930841
850536
796747
404867
404269
403843
395717
376002
2020 2019 2018 2017 2016
2020 2019 2018 2017 2016
Return on Asset (ROA) Return on Investment (ROI)

0.58%
7.58%
7.29%
7.06%
7.13%
5.98%
0.21%
0.20%
0.18%
0.14%
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Net Asset Import Export Foreign Remittance

(Tk. in million) Tk. in million
Import Export Foreign Remittance
1155301
85616
70137
68193
66087
67375
257020
255965
129056
105922
165550
102781
111483
134328
92292
32503
36882
25666
25160
28495
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Annual Report 2020

YEAR OF EXCELLENCE
GRAPHICAL
PRESENTATION
Loans & Advances and Classified Loans Classified Loan Recovery
Loans & Advances Classified Loans
36757
31974
583,233
551,026
464,166
423,218
384,538
12880
10912
10501
149,302
121,883
111,994
107,674
109,115
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Deposit Rate of Classified Loan

(Tk. in million)
35.28%
1258786
1158788
1097666
28.37%
1064311
1031608
26.26%
20.32%
18.37%
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Investment Income from Investment No. of Branches

(Tk. in million)
Investment Income from Investment
629,691
1226
1224
500,387
468,881
462,577
440,921
1215
1211
1209
40,289
30,968
33,956
34,341
28,144
2020 2019 2018 2017 2016

2020 2019 2018 2017 2016
132
KEY FINANCIAL DATA & RATIOS

(Figure in million except stated otherwise)
Particulars 2020 2019 2018 2017 2016
Balance Sheet
Authorized Capital 60000 60000 60000 60000 60000
Paid up Capital 45300 45300 45300 41300 38300
Reserve Fund and Surplus 48998 22893 24837 24787 29075
Total Shareholders’ Equity 85616 68193 70137 66087 67375
Deposits 1258786 1158788 1097666 1064311 1031608
Loans And Advances 586232 551026 464166 423218 384538
Investments 629691 500387 440921 462577 468881
Fixed Assets including Premises, Furniture and Fixture 33891 33466 33377 33307 33114
Total Assets 1591233 1472601 1306842 1256712 1200590
Total Off Balance Sheet Exposure 949413 1022368 1097372 1148178 196926
Earning Assets 1195517 1068333 930841 850536 796747
Non-earning Assets 395716 404269 376002 406175 403843
Net Worth 85616 68193 70137 66087 67374
Income Statement
Interest Income 31666 35955 32708 27674 31010
Income on Investment 40289 28144 34341 33956 30968
Non-interest Income 12824 12711 11272 12723 9001
Total Income 84780 76810 78321 74353 70979
Interest Expenses 41906 40083 39001 42900 47352
Non-interest Expenses 21346 19627 19063 19498 19375
Total Expenses 63253 59710 58064 62398 66727
Net Interest Margin (NIM) 30049 24016 28048 18730 14626
Net Non-interest Expenses 8703 6916 7791 6775 10334
Operating Profit 21526 17100 20257 11955 4251
Earnings Before Provision, Depreciation and Tax 22321 17680 20811 12460 4818
Profit Before Provision and Tax 21526 17100 20257 11955 4251
Net Profit After Tax 3234 2710 2264 7092 152
Capital Matrix
Risk Weighted Assets (RWA) 633601 526242 530879 460763 451931
Total Required Capital 63360 52624 53088 46076 45193
Total Regulatory Capital Maintained 63500 53096 53617 47684 46688
Capital Surplus/(Shortfall) 141 472 529 1608 1495
Capital Adequacy Ratio (CAR) 10.02% 10.09% 10.10% 10.35% 10.33%
Core Capital Ratio 7.68% 8.65% 8.18% 8.07% 7.45%
Supplementary Capital Ratio 2.34% 1.44% 1.92% 2.28% 2.88%
Amount of Supplementary Capital 14826 7574 10208 10517 13031
Annual Report 2020

YEAR OF EXCELLENCE

Particulars 2020 2019 2018 2017 2016
Financial Ratios (%)
Operating Profit Ratio 25.39 22.26% 25.86% 16.08% 5.99%
Gross Profit Ratio 25.39 22.26% 25.86% 16.08% 5.99%
Operating Profit as a % of Average Working Fund 1.37% 1.17% 1.56% 0.98% 0.37%
Return of Assets (ROA) 0.21% 0.20% 0.18% 0.58% 0.14%
Return of Equity (ROE) 4.21% 3.92% 3.32% 10.63% 2.18%
Return on Investment (ROI) 7.13% 5.98% 7.58% 7.29% 7.06%
Return on Loan and Advance 5.57% 5.51% 5.74% 6.85% 7.14%
Return on Capital Employed 1.64% 1.42% 0.22% 1.22% 0.45%
Return on Earning Assets 0.27% 0.25% 0.24% 0.85% 0.19%
Operating Profit per Employee 1.14 0.87 1.17 0.65 0.21
Net Profit per Employee 0.17 0.14 0.13 0.39 0.08
Operating Profit per Branch 17.56 13.99 16.67 9.87 3.52
Net Interest Margin on Earning Assets(NIM) (.86)% (.41)% (.71)% (1.85)% (2.17)%
Efficiency Ratio 25.18% 25.55% 24.33% 26.22% 27.30%
Burden Ratio 0.56% 0.50% 0.60% 0.56% 0.93%
Cost of Deposit 3.32% 3.55% 3.61% 4.09% 4.84%
Yields on Loans and Advances 5.57% 5.51 5.74% 6.85% 7.14%
Interest Spread 1.1% 1.96% 2.13% 2.76% 2.30%
Cost of Fund 5.23% 5.29% 5.38% 5.95% 6.95%
Cost to Income Ratio 74.61 77.74% 74.13% 83.92% 94.01%
Debt Equity Ratio (Times) 17.58 20.59 17.63 18.02 16.82
Current Ratio (Times) 1.89 1.87 1.58 1.67 1.46
Net Asset Value per Share (NAVPS-in TK.) 189.00 150.54 154.83 160.02 175.91
Earnings per Share (EPS- In TK.) 7.14 5.98 5.47 18.50 3.96
Capital Adequacy Ratio (CAR) 10.02% 10.09 10.10% 10.35% 10.33%
Advance Deposit Ratio 46.57% 47.55% 42.43% 39.76% 37.28%
Cash Reserve Ratio / Liquidity Ratio (CRR) 13% 7.90% 7.30% 8.08% 7.22%
Statutory Liquidity Ratio (SLR) 50.02% 41.57% 38.27% 44.13% 48.50%
Foreign Exchange Business
Import 165550 255965 257020 1155301 134328
Export 25160 25670 32503 28495 36882
Foreign Remittance 129056 111483 257020 129601 147655
134

Particulars 2020 2019 2018 2017 2016
Asset Quality
Classified Loans and Advances(Non-performing Loans) 107673 111994 121883 149302 109114
Percentage of NPLs to Total Loans and Advance 18.37% 20.32% 26.26% 35.28% 28.37%
Required Provision for Unclassified Loans 12460 5358 5223 2789 3258
Required Provision for Classified Loans 57705 53016 44046 38864 39281
Total Required Provision for Loans and Adv 70165 58374 49269 41034 42539
Total Provision Maintained for Loans and Adv 70165 58374 49269 41653 42539
Provision Excess/(Shortfall) for Loans and Advances - - - 619 -
General Provision Maintained 12460 5358 5223 2789 3258
Specific Provision Maintained 57705 53016 44046 38864 39281
Required Provision for Classified Investment 178 2667 1579 571 157
Provision Maintained for Classified Investment 178 2667 1579 571 157
Required Provision for Classified Other Assets 2069 4786 4222 3294 2994
Provision Maintained for Other Assets 7250 4786 4222 3294 2994
Total Classified Assets 107673 111994 121883 149302 109114
Total Un-Classified Assets 478560 439032 342200 273916 275424
Required Provision for Contingent Liabilities 2366 2216 2383 2027 1969
Provision Maintained for Contingent Liabilities 2366 2216 2383 2027 1969
Total Provision Required 115331 69257 59313 47464 45690
Total Provision Maintained 82827 69257 59313 48082 45690
Surplus/ (Shortfall) - - - 619 -
Current Assets 522001 499062 422591 438880 388392
Current Liabilities 275643 266687 268138 262856 265545
Net Current Assets 1069232 232375 154453 176024 122847
Long Term Liabilities 1315590 1137722 968567 917768 867670
Long Term Liabilities/Current Liabilities 4.77:1 4.27:1 3.61:1 3.53:1 3.27:1
Shares Information Matrix
No. of Shares 45300000 45300000 45300000 413000000 383000000
Earnings per Share (EPS- in Tk.) 7.14 5.98 5.47 18.50 3.96
Net Asset Value per Share (NAVPS-in Tk.) 189.00 150.54 154.83 160.02 175.91
Market Price per Share Not Listed in Stock Exchange
Dividend - - - - -
Right Share Issued - - - - 7100
Other Information
No. of Branches 1226 1224 1215 1211 1209
No. of Loss Branches 29 27 93 181 233
No. of Employees 18918 19609 17271 18301 20203
No. of Foreign Correspondents 684 669 669 649 649
Annual Report 2020

YEAR OF EXCELLENCE
HORIZONTAL AND VERTICAL

ANALYSIS OPERATING
PERFORMANCE
Particulars 2020 2019 2018 2017 2016
Total Revenue 84780 76810 78321 74353 71187

Interest Expenses 41906 40083 39001 42900 47352
Administrative and Other Expenses 21346 19627 19063 19498 19375
Operating Profit 21526 17100 20257 11955 4251
Provisions including Amortization 16184 12347 14006 2381 834
Profit Before Tax 5342 4753 6251 9574 3417
Provision for taxation 2107 2043 3987 2482 1900
Profit After Tax 3234 2710 2264 7092 1516
Reserve Fund 1133 1001 1269 1918 711
EPS 7.14 5.98 5.47 18.50 3.96
Operating Performance
2020 2019 2018 2017 2016
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
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Operating Performance
Total Revenue
2016
Interest Expenses
Administrative and Other Expenses
2017
Operating Profit
Provisions including Amortization
2018
Profit Before Tax
Provision for taxation
2019
Profit After Tax
Reserve Fund
2020
EPS
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
136
HORIZONTAL AND VERTICAL

ANALYSIS BALANCE SHEET
Particulars 2020 2019 2018 2017 2016
Cash in Hand 7300 7691 5017 5113 6289

Balance With Bangladesh Bank and its Agent Bank 83801 101073 93111 82883 73793
Balance With Other Banks and FI's 52308 87161 107494 68568 38820
Money at Call and Short Notice 9031 16274 19723 22565 3586
Investments 629691 500387 440921 462577 468881
Loans and Advances 586232 551026 464166 423218 384538
Fixed Assets 33891 33466 33377 33307 33113
Other Assets 188976 175523 143033 142101 191566
Total Assets 1591233 1472601 1306842 1240332 1200589
Balance Sheet Analysis

2020 2019 2018 2017 2016
Cash in Hand
Balance with Bangladesh Bank and
its Agent Bank
Balance with Other Banks and FI's
Money at Call and Short Notice
Investment
Loans and Advances
Fixed Assets
Other Assets
Total Assets
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Balance Sheet Analysis
2016 Cash in Hand

Balance With Bangladesh Bank
and its Agent Bank
2017
Balance With Other Banks and FI's
Money at Call and Short Notice
2018
Investments
Loans and Advances
2019
Fixed Assets
Other Assets
2020
Total Assets
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Annual Report 2020

YEAR OF EXCELLENCE
GRAPHICAL PRESENTATIONS
OF PROFITABILITY, DIVIDEND,
PERFORMANCE AND
LIQUIDITY RATIO
Gross Profit Ratio Earning before Provision, Depreciation and Tax
22321
25.86%
22.26%
25.39%
20811
17680
16.08%
12460
4818
5.99%
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Current Ratio (Times) Return on Equity (ROE)
10.63%
1.87
1.89
1.67
1.58
1.46
4.21%
3.92%
2.18%
3.32%
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Return on Loans & Advances Debt Equity Ratio (Times)

20.59
7.14%
6.85%
18.02
17.58
17.63
5.74%
5.57%
5.51%
16.82
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Cost to Income Ratio Efficiency Ratio

94.01%
27.30%
26.22%
83.92%
74.61%
77.74%
74.13%
25.55%
25.18%
24.33%
2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
138
SEGMENT WISE
GRAPHICAL PRESENATIONS
Segment of Total Revenue Comparison of Segmented Capital
Series1 2019 2018
37%
45300
45300
36328
Income on Investment
22121
13469
12400
Interest Income
48%
166
119
Retained Earnings
Non Interest Income
Paid up Capital Statutory Reserve Other Reserve Asset Revaluation
Reserve
-9647
-11748
15%
Division wise Deposit Division wise Loans and Advances

6%
4% 4% 8%
2% Dhaka
5%
Dhaka
9% Barisal
Barisal
Chittagong Chittagong
7%
22% Rajshahi Rajshahi
Rangpur Rangpur
8%
Sylhet Sylhet
56%
3%
Khulna 3% 63%
Khulna
Division wise Income vs Expenses Division wise Operating Profit

Tk. in million
3%
Income Expenses 6% 5%
Dhaka
Khulna
9% Barisal
Sylhet
Chittagong
Rangpur
Rajshahi 39% Rajshahi

Chittagong Rangpur
Barisal Sylhet
Dhaka
Khulna
34%
0% 20% 40% 60% 80% 100%
4%
Industry wise Loans and Advances Sector WIse Loan & Advances
10% 78%
Industry wise Loans and
12% Advances
16% Rural Credit
2% Private
Micro Credit
Industriul Credit
Other Public
8% 12%
Agro based Industrial Credit
International Trade
SME Finance
Government
General Adnce and Others 21%
40%
1%
Annual Report 2020

YEAR OF EXCELLENCE
STATEMENT OF VALUE ADDITION

AND ITS DISTRIBUTION
This statement shows the process of generating the value and its distribution among the stakeholders of Sonali Bank Limited
through the placement and improvement of assets and operations consequently. The comparative value added statement
of the Bank for the year 2020 and 2019 is illustrated below:
Distribution of Value Distribution of Value

Particulars Addition 2020 Addition 2019
Taka in Million. In % Taka in Million. In %
a. Income from Banking Services 84,779.88 76,810.21
b. Less: Cost of Services and Supplies 48,103.63 45,297.68
c. Value Added by the Banking Services(a-b) 36,676.25 31,512.53
d. Less: Non Banking Income 1601.82 1,587.60
e. Less: Loan Loss Provisions 16,184.78 12,347.33
Value Added (c-d-e) 18,889.64 17,577.60
Distribution of Value addition:
i) To Employees as Salaries, allowances and bonuses: 14424.17 76% 13,887.57 64%
ii) To Expansion and Growth:
Statutory reserve 1,068.43 6% 950.62 5%
General Reserve 50.00 0% 50.00 -
Reserve for unwanted risk arising from Vault 15 0% - -
Retain earnings 2,100.92 11% 1,709.43 23%
Depreciation 717.34 4% 524.53 2%
Taxation 505.98 3% 455.44 2%
Amortization of Jute Sector Reform Project - - - -
Amortization of Intangible Assets - - - -
Sub Total 4,457.67 24% 3,690.02 21%
Total (i+ii) 18,889.64 100% 17,569.91 100%
Distribution of Value Addition-2020

5% 0%
8%
3% To Employees as Salaries,
3% allowances and bonuses:
Statutory reserve
General Reserve
Retain earnings
Depreciation
Taxation
81%
140
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.
2020 2019 2018 2017
Particulars Taka in Taka in Taka in Taka in
Million. Million. Million. Million.
Shareholders' Equity 85,616 68,193 70,137 66,087
Add Cumulative provision for Loans, Investment, Other Asset and
82,833 69,273 57,453 47,545
Off Balance sheet exposures
Total Invested Fund 168,449 137,466 127,590 113,632
Average shareholders' equity 77,391 69,165 68,112 66,731
Earnings
Profit after Tax 3,234 2,710 2,264 7,091
Add provision for loans and other during the year 16,184 12,347 14,006 2,380
Less Written off loan recovered during the year 550 443 945 387
Earning for the year 18,868 14,614 15,325 9,084
Average cost of equity
(based on weighted average rate of 10 years treassury bond

0.11 0.11 0.12 0.12
issued by Bangladesh Government +2% risk premium
Cost of average equity 2,011.33 1,608.00 1,839.00 1,090.08

Economic value added 16,856.67 13,006 13,486.00 7,993.92
Growth over last year 2.96 (0.045) 0.69 4.8758
Economic Value Added

16857
13486
13006
7994
1360
2020 2019 2018 2017 2016
Annual Report 2020

YEAR OF EXCELLENCE
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 453,000,000 189.00 68,192,620,000
Book Value 453,000,000 100.00 45,300,000,000
Market Value Added 453,000,000 89.00 22,894,620,000
Maintaining Liquidity
Maturity Analysis Below 1 year 1-5 years Above 5 years Total
Interest earning Assets 541,808,399,794 317,648,922,827 336,059,887,869 1,195,517,210,490
Non-interest earning Assets 121,963,799,100 168,610,866,482 105,141,888,390 395,716,553,972
Total Assets 663,772,198,894 486,259,789,309 441,201,776,260 1,591,233,764,462
Interest bearing Liabilities 1,073,309,717,562 93,038,965,219 92,986,832,068 1,259,335,514,848
Non-interest bearing Liabilities 8,710,972,345 56,543,245,667 181,028,426,402 246,282,644,414
Total Liabilities 1,082,020,689,907 149,582,210,886 274,015,258,470 1,505,618,159,262
Net Liquidity Gap (418,248,491,013) 336,677,578,423 167,186,517,790 85,615,605,200
Cumulative Gap (418,248,491,013) (81,570,912,590) 85,615,605,200 -
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 37.02% (required 19.50% of total demand and time
deposits) in December 2020.
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 2020.
Maintaining Capital Adequacy

Eligible Capital 2020 2019
Tier-1 (Core capital) 48,674.18 45,522.76
Tier-2 (Supplementary capital) 14,826.68 7,573.65
Tier-3 (eligible for market risk only) - -
Total Eligible capital 63,500.86 53096.41
Total risk weighted assets (RWA): 633,601.70 526,242.30
Capital to Risk Weighted Asset Ratio (CRAR)/ (CAR) 10.02% 10.09%
Core capital to RWA 7.68% 8.65%
Supplementary capital to RWA 2.34% 1.44%
Minimum capital requirement (MCR) 63,360.17 52,624.23
Capital surplus/(shortfall) 140.69 472.18
142
FINANCIAL CALENDER 2020

Financial Calender 2020
Events Status Date
14th Annual General Meeting Will be held on August 23, 2021
Financial Statement for the year 2020 Signed on June 30, 2021
Audited consolidated results for the 4th quarter ended 31 December 2020 Announced on June 30, 2021
Unaudited solo results for the 1st quarter ended 31 March 2020 Announced on April 30, 2020
Unaudited solo results for the 2nd quarter ended 30 June 2020 Announced on July 31, 2020
Unaudited solo results for the 3rd quarter ended 30 September 2020 Announced on October 31, 2020
Financial Calender 2021 (Proposed)
Events Status Date
15th Annual General Meeting Will be held on February 28, 2022
Financial Statement for the year 2021 Will be Signed on February 22, 2022
Will be Announced
Audited consolidated results for the 4th quarter ended 31 December 2021 February 28, 2022
on
Unaudited solo results for the 1 st quarter ended 31 March 2021 Announced on April 30, 2021
Unaudited solo results for the 2nd quarter ended 30 June 2021 Announced on July 31, 2021
Will be Announced
Unaudited solo results for the 3rd quarter ended 30 September 2021 October 31, 2021
on
Annual Report 2020

YEAR OF EXCELLENCE
CREDIT
RATING
Credit Rating Information and Services Limited(CRISL) rated Sonali Bank Limited in their report; they rated the Bank AAA
as With Government Support for long term and ST-1 for short term. They also rated the Bank A as Without Government
Support for long term and ST-2 for short term. The outlook of the rating is stable. The rating company performed the rating
surveillance based on Audited Financial Statements and other relevant information based on 31 December 2019.
Upto November 2021 Upto June 2020

Surveillance Rating
Long Short Long Short
Term Term Term Term
As Government Supported Bank AAA ST-1 AAA ST-1
Without Govt. Supported Bank A ST-2 A ST-2
Outlook Stable Stable
144
Annual Report 2020

YEAR OF EXCELLENCE
REPORT ON
CORE 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 various risks throughout its overall business activities. The major
risks are credit risk, market risk, liquidity risk and operational risk which includes IT risk. An independent Risk Governance
Structure, in line with international best practices, has been put in place, in the context of separation of duties and ensuring
independence of Risk Measurement, Monitoring and Control functions. The core aim of all process is to provide adequate
transparency and understanding of the existing and emerging risk issues and to ensure a holistic cross-risk perspective.
Risk Management Framework

Risk management process of 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 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 MANAGEMENT
TOOLS POLICY & LIMITS
GUIDELINES,PROCESS
RISK GOVERNANCE
& STANDARDS MEASURING,
MONITORING,REPORTING
STRESS TESTING
RISK APPETITE,
RISK TOLERANCE, RISKS CREDIT, MARKET,
RISK LIMIT, LIQUIDITY, OPERATIONAL,
RISK APPETITE ICT, AML,ENVIRONMENTAL,
STATEMENT OTHERS
146
RISK MANAGMENT
Risk Management Framework

Risk Governance:
The various risks across Bank is monitored and reviewed through the Executive Level Committee and the Risk Management
Committee of the Board which meets regularly. Risk Management Committee at Operational unit and Business unit level
are also in place.
BOARD’S RISK
MANAGEMENT COMMITTEE
RISK MANAGEMENT
COMMITTEE AT
MANAGEMENT LEVEL
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
Annual Report 2020

YEAR OF EXCELLENCE
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 Key Risk
appetite statement and key risk appetite measures. Together application of the Appetite
Measures
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). Risk
Appetite
The Bank’s Risk Appetite Framework combines qualitative and quantitative terms Risk
Risk Appetite
of reference to guide the Bank in determining the amount and types of risk Capacity Statement
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 risks (credit, market, liquidity, and
operational), the key risk appetite measures are supported by management level limit structures and controls. Management’s
dedicated attention to these risks creates a focus on forward looking activities that keeps the Bank within its risk appetite on
an on-going basis.
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
Measurment, TOOLS
Stress Testing,
Monitoring
RMP,CRMR
and Reporting
Policies, Procedures and Limit Structure of SBL

z Risk Management policies, procedures and limits are properly documented;
z Policies are reviewed annually or on demand basis;
z All policies and procedures are duly approved by the Board of Directors;
z Policies are assigned with full accountability and clear lines of authority for each activity and product
area;
z A compliance monitoring procedure has been deployed for all policies;
z An independent internal control unit has been formed in SBL to check internal compliance;
z 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.
148
RISK MANAGMENT
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;
Disclosure of risk reporting

Risk management activities are being reported to both internal and external controlling authorities seeking further direction
for proper and timely mitigation of risks:
Reporting to
Management
Reporting to
Board of Directors
Risk Reporting
Reporting to
Central Bank
Risk Management Paper (RMP) consisting of various data related to Credit Risk, Market Risk, Liquidity Risk and Operational
Risk from all related divisions are presented in the monthly meeting of all Risk Committee and Sub-risk Committee conducted
under the supervision of Risk Management Division (RMD). Subsequently, the RMP is submitted to the Risk Management
Committee of the Board and the decisions are communicated to relevant divisions of the bank for implementation. The
report also submitted to Bangladesh Bank on monthly basis. Bangladesh Bank also determines the status of risk management
of the bank on the basis of RMP and provides Risk Management rating bi-annually which is ultimately considered in the
CAMELS rating of the Bank.
Capital Adequacy as on 31’st Dec 2020
(Tk. in million)
Required CRAR 10% of Risk Weighted Asset
Risk Weighted Asset 63360
Minimum Capital Requirement 6336
Capital maintained 6350
Capital surplus 14
Present CRAR 10.02
Annual Report 2020

YEAR OF EXCELLENCE
Stress testing is a simulation technique to determine the reactions of different financial institutions under a set of exceptional,
but plausible assumptions. A stress test, in financial terminology, is an analysis or simulation designed to test the ability of a
given financial institution to deal during forecasted economic crisis. Instead of doing financial projection on a “best estimate”
basis, a bank or its regulators do stress testing where it looks at how robust institutions is in certain crashes a kind of “what if”
scenario analysis. This type of analysis has become increasingly widespread and has been taken up by various Governmental
bodies as a regulatory requirement on certain financial institutions to ensure adequate capital allocation to cover potential
losses incurred during extreme, but plausible events. Stress testing framework as provided by Bangladesh Bank assesses
the impact on CRAR due to minor, moderate and major level of shock in terms of credit risk, exchange rate risk, liquidity
risk, equity price risk and interest rate risk. Stress testing for credit risk assesses the impact of increase in the level of Non-
Performing Loans (NPLs) of the banks.
Comprehensive risk management report (CRMR) is prepared on half yearly basis to record 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.
Analysis of Stress Testing Result as on 31 December 2020
After Minor After Moderate After Major Shock
Individuals Shock
Shock (%) Shock (%) (%)
1 Performing loan directly downgraded to B/L: Sectoral 9.99 9.93 9.87
Concentration 1
2 Performing loan directly downgraded to B/L: Sectoral 9.96 9.85 9.73
Concentration 2
3 Increase in NPLs due to default of Top large borrowers 10.02 9.27 9.06
4 Negative Shift in NPLs categories 8.90 2.54 0.35
5 Decrease in the FSV of the Collateral 9.11 8.19 6.27
6 Increase in NPLs 8.80 6.03 2.29
7 Interest Rate 7.11 4.19 1.27
8 FEX: Currency Appreciation 9.88 9.75 9.61
9 Equity Shock 9.57 9.11 8.19
Combined Shock 3.27 (10.30) (22.13)
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
z Lending Guidelines
z Credit Assessment and ICRRS
z Approval Authority
z Segregation of Duties
z Internal Audit
B. Preferred Organizational Structure
SBL has decentralized credit risk management system. Based on delegation of power the following authority plays role in
this regard.
z Role of the Board of Directors
z Role of Senior Management
z Role of the Credit Risk Management Committee
z Organisational Structure of Credit Offcials
C. Procedural Guideline
z Credit Administration
z Credit Monitoring
z Credit Recovery
150
RISK MANAGMENT
z Other Regulations of BB Relating to Credit Risk

z Policy on Loan Classifications
z Policy on Single Borrower Exposure
z Policy For Rescheduling of Loans
z Policy For Loan Write Off
z Guidelines on Managing Core Risk in Banking
z Guidelines on Environmental Risk Management
z Restrictions on Lending to Directors of Private Banks
z Implementation of Credit Risk Grading Manual
z Prudential Guidelines for Consumer Financing and Small Enterprise Financing
z 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. 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: The responsibility of Asset Liability Management is assigned to the Treasury Management Division of this Bank.
Specifically, the balance sheet used to manage by the Asset Liability Management (ALM) desk which has established on the
Treasury Division.
STRATEGIC & BUSINESS RISK
Market Risk:
LIQUIDITY RISK
Market risk is the potential of losses to income or the value
of asset, liabilities and equity arising from changes in market
prices. Such market prices may include reference Interest REPUTATION & BEHAVIORAL RISKS

rates, Foreign Exchange rates, Traded Prices of Equity Shares Credit & Operational
Counterparty
and other commodities etc. Risk
Risk & AML
or CFT
C A P I TA
Liquidity Risk:
Interest Foreign
It generates from the failure or inability to meet current and
CO
Rate Exchange
future financial obligations by bank due to shortfall of cash Risk Rate Risk
LA
VE
NA
or cash equivalent assets. Banks are exposed to liquidity risk
DE
Q REPUTATION & BEHAVIORAL RISKS NT

where the more liquidity is generated, the greater are the UA RI S
CY K
possibility and severity of losses associated with having to RIS
K
dispose of illiquid assets to meet the liquidity demands of
depositors. However besides depositor, revealed that banks STRATEGIC & BUSINESS RISK
that make commitments to lend are exposed to the risk of
Statutory liquidity ratio of SBL Structural Liquidity Profile
Particulars Dec- 2019 Dec- 2020 Particulars Dec- 2019 Dec- 2020 Ideal Scenario
Required 5.50 % 4.00 % LDR 47.55% 46.57 % 82%-85%

CRR
Maintained 7.9 % 7.7 % MCO 9.84 % 11.56 20%
Required 13.00 % 13.00 %

SLR
Maintained 41.57 % 42.32 %
unexpected liquidity demands from their borrowers.
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.
Annual Report 2020

YEAR OF EXCELLENCE
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:
z Bank has developed, administered, and maintained an anti-money-laundering compliance policy.
z The policies have been tailored to the institution and based upon an assessment of the money laundering
risks.
z The policy address its know your customer (KYC) policy and identification procedures before opening
new accounts, monitoring existing accounts for unusual or suspicious activities.
z 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.
z There is a monitoring unit to monitor unusual/suspicious transaction which needs to be
reported to Bangladesh Bank.
z 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.
z 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.
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:
z Performance objectives: To maintain the efficiency and effectiveness of overall operating activities.
z Information objectives: To ensure the reliability, completeness and timelines of financial and
management information.
z Compliance objectives: To ensure the robust compliance with applicable laws and regulations.
152
RISK MANAGMENT
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 following risk areas:
Sl. Types of Risks Risk Area
Error in documentation
1 Residual Risk
Error in valuation of collateral
2 Evaluation of Core Risk Management Ratings of Core Risks implementation
Credit Concentration Risk

3 Credit Concentration Risk
Market Concentration Risk
Cash Reserve Ratio (CRR)

Statutory Liquidity Ratio (SLR)
4 Liquidity Risk Medium Term Funding (MTFR)
Maximum Cumulative Outflow (MCO)
Advance Deposit Ratio (ADR)
Credit Rating conducted by ECAIs

Internal Fraud
5 Reputation Risk
External Fraud
Non-Payment or Delayed payment of accepted bills
6 Settlement Risk Issues of foreign trade settlement
All types of receivables
CAMELS rating
Operating expenses
Classified loans ratio
7 Strategic Risk Recovery of classified loan
Written-off loans
Interest waiver
Cost of fund
8 Environmental & Climate change Risk Damage of assets from adverse change of environment
9 Other Material Risk Other risks that may jeopardize bank’s assets or income.
Annual Report 2020

YEAR OF EXCELLENCE
DISCLOSURE ON RISK BASED

CAPITAL UNDER BASEL III
BASEL III & MARKET DISCIPLINE
The purpose of Market discipline in the Revised Capital adequacy Framework is to complement the minimum capital
requirements and the supervisory review process. The aim of introducing Market discipline in the revised framework is to
establish more transparent and more disciplined financial market so that stakeholders can assess the position of the bank
regarding holding of assets and to identify the risks relating to the assets and capital adequacy to meet probable loss of assets.
The reports are purported to affirm the information on Minimum Capital Requirement (MCR) under pillar-I and Supervisory
Review Process (SRP) under pillar-II and ensure transparency about the capital adequacy framework, risk assessment and
mitigation methodologies, risk exposure in various spectrum so that the stakeholders of the industry can examine the risk
related compliance of the Bank.
In a nutshell the purpose of this Disclosure Report is to set out how Sonali Bank Limited complies with the Pillar-III requirements
under Basel-III. The following detailed qualitative and quantitative disclosures are prepared in accordance with guidelines on
Risk Based Capital Adequacy (Basel-III) framework by Bangladesh Bank on December 2014.
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 bank and its subsidiary companies.
Sonali Bank’s subsidiary companies are as under:
1) Sonali Investment Limited, a entirely owned subsidiary in Dhaka, Bangladesh.
2) Sonali Exchange co. Inc. (SECI), an entirely owned subsidiary in USA.
Sonali Bank’s associates companies are as under:
1) Sonali Bank (UK) Limited, 51% share capital of the company is held by the Government of the People’s Republic of
Bangladesh and the remaining 49% shares hold by Sonali Bank Limited. It is operating in London and Birmingham.
2) Sonali Intellect Limited, The ownership of the company having 51% share capital in favor of Polaris Financial Technologies
Ltd. India, 35% by Sonali Bank Limited and remaining 10% & 4% by Bangladesh Commerce Bank Ltd. and Pantho Soft Ltd.
respectively. It is operating in Dhaka, Bangladesh.
(c) Sonali Bank Limited transfers funds or regulatory capital within the group (subsidiaries & associate) as per Banking rules
and regulations with the approval of the Board / Competent Authority.
Quantitative Disclosures
The following subsidiaries & associates has included their financial

(d) (Tk. in Crore)
activities and their aggregate capital is as under:
z Sonali Investment Limited 200.00
z Sonali Exchange co. Inc. (SECI) 8.06
z Sonali Bank (UK) Limited 334.78
z Sonali Polaris FT Limited 2.63
B) Capital structure
(a) The regulatory capital under Basel-III is composed of (I) Tier-1 (Going- concern Capital) and (II) Tier-2 (Gone-concern
Capital). From regulatory capital perspective, going-concern capital is the capital which can absorb losses without
triggering bankruptcy of the Bank and gone-concern capital is the capital which will absorb losses only in a situation of
liquidation of the Bank.
154
In terms of Section 13 of the Bank Company Act, 1991 (Amended up to 2013), the terms and conditions of the main features
of all capital instruments have been segregated in terms of the eligibility criteria set forth vide BRPD Circular No. 18 dated
21 December 2014 [Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for Banks in line
with Basel III)] and other relevant instructions given by Bangladesh Bank from time to time. The main features of the capital
instruments are as follows:
Common Equity Tier 1 (CET1) Capital (Going Concern Capital):

Paid-up share capital: Issued, subscribed and fully paid up share capital of the Bank.
Statutory reserve: As per Section 24 of the Bank Company Act, 1991 (Amended up to 2013), an amount equivalent to 20% of
the profit before taxes for each year of the Bank has been transferred to the Statutory Reserve Fund.
General Reserve: General reserve created out of profit.
Retained earnings: Amount of profit retained with the banking company after meeting up all expenses, provisions and
appropriations.
Additional Tier 1 (AT1) capital: There is no Additional Tier-1 capital instrument at this moment.
Tier 2 Capital (Gone Concern Capital):
General provision: As per Bangladesh Bank directive, amount of provision maintained by Bank.
Revaluation reserves of Assets, HTM securities & HFT securities: As per Bangladesh Bank’s instruction, until 31 December 2014,
50%, 50%& 10% of revaluation reserve respectively of Banks Assets, HTM securities & HFT securities has been considered.
Revaluation Reserve (RR) based on the position as of 31 December 2014 has been adjusted @ 20% on yearly basis from 2015
to 2019 under Basel III guideline.
(b) Regulatory Capital of Sonali Bank Limited on the basis of Audited Balance Sheet of 31st December 2020 has been
calculated as per Basel-III guidelines on ‘Solo’ basis as well as ‘Consolidated’ basis as shown below.
Regulatory Capital (Tk. in Crore)

Common Equity Tier1 Capital(Going Concern Capital) : Solo Conso
Paid up capital 4530.00 4530.00
Statutory reserve 1,346.90 1346.90
General reserve 16.57 16.57
Retained earnings (964.76) (965.52)
Sub-Total 4928.71 4927.95
Regulatory Adjustments Solo Conso
Goodwill and all other Intangible Assets 61.30 61.76
Total Common Equity Tier 1 capital [A] 4867.41 4866.19
Additional Tier 1 (AT1) capital [B] - -
Tier-2 Capital (Gone Concern Capital) Solo Conso
General provision 1482.67 1482.67
Total of Tier 2 capital [C] 1482.67 1482.67
Regulatory Adjustments/Deductions from Capital. Solo Conso
Total of Deduction [D] - -
Total eligible capital [A+B+C-D] 6350.08 6348.86
Solo Tier 1 Conso Tier 1

0% 0%
% 14% % 14%
20 20
Paid up capital Paid up capital
Statutory reserve Statutory reserve
General reserve General reserve
Retained earnings Retained earnings
66% 66%
Annual Report 2020

YEAR OF EXCELLENCE
Comparison of Capital
Tier 2 Capital (Tk. in Crore)
Tier-1 Tier-2
0%
4867.41
4866.19
General Provision
Revaluation Reserve
1482.67
1482.67
100%
SOLO CONSO
C) Capital Adequacy
The Bank assesses the adequacy of its capital in terms of Section 13 (1) of the Bank Company Act, 1991 (Amended up to 2013)
and instruction contained in BRPD Circular No. 18 dated 21 December 2014 [Guidelines on ‘Risk Based Capital Adequacy for
Banks’ (Revised regulatory capital framework in line with Basel III)].
However, in terms of the regulatory guidelines, the Bank computes the capital charge / requirement as under:
i. Credit risk: On the basis of Standardized Approach; Capital Requirement Under Piller-1
ii. Market risk: On the basis of Standardized Approach; and
10%
13%
iii. Operational risk: On the basis of Basic Indicator Approach
Sonali Bank Limited is very much aware of maintaining Capital to support its Market Risk
current and future activities in view to this objective. With a view to meet-up
provision shortfall and adjustment of deferred tax assets, an Action Plan has Operational Risk
been prepared and subsequently approved by the Board. Credit Risk
The Bank has maintained Capital to Risk-weighted Assets Ratio (CRAR) of 31

December 2020 on the basis of ‘solo’ and ‘Consolidated’ which is 10.02% and
10.00% respectively as against the minimum regulatory requirement of 10%. This 77%
has been calculated considering forbearance allowed by Bangladesh Bank.
Common Equity Tier-I (CET-1) and Minimum Tier-1 Ratio to RWA ratio including Capital Conservation Buffer for ‘solo’ is 7.68%
as well as ‘consolidated’ is 7.67% against the minimum regulatory requirement of 4.50% and 6.00% respectively. Tier-2 ratio
for ‘solo’ is 2.34% as well as ‘consolidated’ is 2.34%. Maximum limit of Tier-2 Capital (Tier-2 capital can be maximum up to 4%
of the total RWA or 88.89% of CET1, whichever is higher).
Capital Conservation Buffer for the year 2020 is 0.02% as ‘solo’ and 0.00% as ‘consolidated’.
(Tk. in Crore)
Solo Consolidated
(a) Capital Requirement for Credit Risk 4884.72 4882.94
(b) Capital Requirement for Market Risk 622.15 629.09
(c) Capital Requirement for Operational Risk 829.15 835.07
(d) Capital to Risk Weighted Assets Ratio (CRAR) 10.02% 10.00%
(e) Common Equity Tier-1 to RWA Ratio 7.68% 7.67%
(f) Tier-1 Capital to RWA Ratio 7.68% 7.67%
(g) Tier-2 Capital to RWA Ratio 2.34% 2.34%
(h) Capital Conservation Buffer 0.02% 0.00%
(i) Available Capital under Pillar 2 Requirement - -
Note: In response to Bank request Bangladesh Bank deferred the Bank from maintaining required provision against
Unclassified and Classified Loans & Advances including Other Assets, Balance with Bangladesh Bank & Balance with Other
Bank and NBFI amounting BDT 3250.41 Crore and from adjustment of deferred tax assets amounting BDT 2750.04 Crore
against Common Equity Tier-1 (CET-1) and Tier-2 capital through BB letter vide no- DOS (CAMS) 1157/01(II)-C/2021-2789
dated 29 June 2021 for the year 2020.
156
D) Credit Risk
Credit risk is the potential loss that may arise from a borrower’s failure to repay a loan or meet its obligation in accordance
with agreed term. Banks are very much prone to credit risk due to its core activities i.e. lending to corporate, SME, individual,
another bank/ FI.
As per relevant Bangladesh Bank guidelines, the Bank defines the past due and impaired loans and advances for strengthening
the credit discipline and mitigating the credit risk of the Bank. The impaired loans and advances are defined on the basis of
(i) Objective / Quantitative Criteria and (ii) Qualitative judgment. For this purposes, all loans and advances are grouped into
four (4) categories namely- (a) Continuous Loan (b) Demand Loan (c) Fixed Term Loan and (d) Short-term Agricultural &
Micro Credit.
According to the instructions of Bangladesh Bank, all Loans & Advances are classified into four segments. These are:
1. Special Mention Account (SMA)
2. Substandard (SS)
3. Doubtful (DF)
4. Bad / loss (BL)
Sonali Bank follows strictly all the regulations provided by Bangladesh Bank while calculating the above.
CL
Types of Loans Classification Status Period for Classification
SL#
SMA (>2<3) Month
SS (≥3<9) Month
1 (past due)
DF (≥9<12) Month
BL ≥12 Month
SMA (>2<3) Month
SS (≥3<9) Month
2 Demand Loan
DF (≥9<12) Month
BL ≥12 Month
SMA (>8<9) Month
SS (≥9<15) Month
3 Fixed Term Loan
DF (≥15<18) Month
BL ≥18 Month
SMA (>8<9) Month
SS (≥9<15) Month
4 Short Term Agricultural & Micro Credit
DF (≥15<18) Month
BL ≥18 Month
(ii) Approaches followed for specific and general allowances:
Rate of Provision Requirement
Unclassified Classified
Types of Loans & Advances Standard SMA SS DF BL
Short Term Agricultural Credit 1% - 5% 5% 100%
Consumer Financing
Other than Housing Finance & Loans to Professionals to
2% 2% 20% 50% 100%
setup business
Housing Finance 1% 1% 20% 50% 100%
Loans to Professionals to setup business 2% 2% 20% 50% 100%
Medium Enterprise Financing 0.25% 0.25% 20% 50% 100%
CMS Financing 0.25% 0.25% 5% 20% 100%
Loans to Brokerage House/ Merchant Bank/ Stock Dealers 2% 2% 20% 50% 100%
All other Credit 1% 1% 20% 50% 100%
Mentionable that, all interest accrued is credited to interest suspense account instead of crediting the same to income
account if the loan is classified as sub-standard and doubtful. However, charging of interest is discontinued when the loan
is classified as bad/loss.
Annual Report 2020

YEAR OF EXCELLENCE
Credit Risk (Continued)

(iii) Discussion of the Bank’s credit risk management policy:
The salient features of SBL credit risk management policy and procedures are as under:
z Credit policy approved by the Board: The Board approves the Credit Risk Management Policy of SBL
for ensuring the best practice in credit risk management and maintaining quality of assets. The credit
policy/manual has been put in place in compliance with Bangladesh Bank’s guidelines on credit risk
management and other rules & regulations circulated by BB from time to time.
z Credit approval is delegated properly: Authorities are properly delegated ensuring check and balance in
credit operation at every stage i.e. screening, assessing risk, identification, management and mitigation
of credit risk as well as monitoring, supervision and recovery of loans with provision for early warning
system.
z Independent credit risk Management Division: There is an independent Credit Division (Credit Risk
Management Division) to assess credit risks and suggest the mitigation procedures & techniques while
processing the credit proposals by the Corporate Banking Division for approval.
z Separate credit Administration Division: A separate credit administration division confirms that perfected
security documents are in place before disbursement. SBL is continuing a unique process of rechecking
security documentation by a second legal advisor other than the lawyer who vetted it originally.
z Independent credit Monitoring & recovery Division and Management recovery committee: An
independent and fully dedicated Credit Monitoring & Recovery Division monitors the performance
and recovery of loans, identify early signs of delinquencies in portfolio and take corrective measures
including legal actions to mitigate risks, improve loan quality and to ensure timely recovery of loans.
z Credit operations are subject to independent internal Audit: Internal Control & Compliance Division
independently verifies and ensures, at least once in a year, compliance with approved lending guidelines,
Bangladesh Bank guidelines, operational procedures, adequacy of internal control, documentation and
overall Credit Risk Management System.
z Reporting to Board/ executive committee/risk Management committee: Overall quality, performance,
recovery status, risks status, adequacy of provision of loan portfolio are regularly reported to the Board
of Directors/ Executive Committee/ Risk Management Committee of the Board for information and
guidance.
Above all, the Risk Management Division is regularly guiding the Credit Risk Management Division (s) on increasing the
collateral coverage, product/sector specific diversification of credit exposures, single borrower exposures limit, large loan
portfolio ceiling as stipulated by Bangladesh Bank, improving the asset quality, conducting credit rating of the borrowers to
minimize the capital charge against credit risk of the Bank. Adequate provision is maintained against classified loans as per
Bangladesh Bank Guidelines. Status of loans is regularly reported to the Board of Directors/ Risk Management Committee
of the Board.
Sonali Bank Limited has its own Credit Risk Management guideline interms of Core Risks Management guidelines of
Bangladesh Bank. The Bank also follows other instructions/guidelines of Bangladesh Bank in this regard. Sonali Bank Limited
constantly monitors, reviews and analyses its credit portfolio with a view to improving ability of credit portfolio, minimizing
potential losses and ensuring efficient credit process.
To manage the Non-Performing Loans (NPL), Sonali Bank Limited has a comprehensive remedial management policy, which
includes a framework of controls to identify weak credits and monitoring of these accounts constantly.
(b) Total gross credit risk exposures broken down by major types of credit exposure.
(Tk. in Crore)
On Balance Sheet Solo Consolidated
Cash Credit General (Hypo) 508.01 508.01
Cash Credit General (Pledge) 78.32 78.32
Packing Cash Credit 440.96 440.96
Overdrafts Loan 2184.75 2146.09
Demand Loan 1.65 1.65
Small Loan 7.59 7.59
General House Building Loan 637.80 637.80
Staff House Building Loan 5820.20 5820.20
158
On Balance Sheet Solo Consolidated

Staff Loan 376.06 376.06
House Building Loan (Govt.Employees) 76.28 76.28
Special Loan Programme 1.17 1.17
Special Term Loan against Fund Received from BB for Workers' Salary of
18.77 18.77
Export Oriented Industries Under Covid-19
Loan under SB Industrial Credit Scheme 3422.54 3422.54
Loan under External Credit Program 3.65 3.65
Working Capital to Industries (Hypo) 3449.67 3449.67
Working Capital to Industries (Pledge) 214.40 214.40
Working Capital Under Stimulus Pack for Indus & Serve for COVID-19 1095.31 1095.31
Sonali Credit 25.92 25.92
Loan Under SB Agro Based Industrial Scheme 818.69 818.69
Working Capital to Agro Based Industry (Hypo) 741.39 741.39
Working Capital to Agro Based Industry (Pledge) 340.72 340.72
Agricultural Loan 4660.69 4660.69
Agri. Loan Disbursed at conce.Intt. Rate against COVID-19 186.56 186.56
Agri. Loan Against Special Stimulus Refinance Sch. For COVID-19 100.20 100.20
Micro Credit 1219.75 1219.75
Micro Credit Loan Under B.B Revolving Refi.Sch.for COVID-19 1.27 1.27
LIM (Loan Against Imported Merchandise) 188.69 188.69
LTR (Loan Against Trust Receipt) 4576.55 4576.55
Forced Loan 2458.93 2458.93
Loan for L/C under WES 0.01 0.01
Loan against Inland Bills 16.57 16.57
Current Account Barter (Debit Balance) 93.26 93.26
Bridge Finance 299.29 299.29
Small Business Loan Sceme 119.26 119.26
Lease Finance 2.63 2.63
Consumer Loan 8003.42 8003.42
Term Loan to Freedom Fighter 1925.20 1925.20
Special F.C Term Loan to Bangladesh Biman 5063.62 5063.62
Foreign Education Loan Program 0.08 0.08
SME Finance (Term Loan Service) 3137.67 3137.67
SME Finance (Term Loan to Industries) 38.15 38.15
SME Finance (Working Capital Wind) 3955.27 3955.27
SME Loan Under BB Revolving Re-Finance for COVID-19 309.07 309.07
Bills Discounted and Purchased 1327.19 1327.19
Special Loan-Advance Rent (Interest Bearing) 10.14 10.14
Term Loan to Banks & NBFIs 200.00 200.00
Forced Loan A/C EDF 250.61 250.61
Rural Housing Finance-Sonali Neer A/C 15.23 15.23
Loan against Food Procurement Bill A/C 165.15 165.15
Long term loan at prevailing rate of Interest (SECI) 5.52 0.00
Bai Muazzal- House Hold Durable Scheme IW 29.44 29.44
Portfolio Loan to Investors 215.86
Total 58623.27 58623.27
Annual Report 2020

YEAR OF EXCELLENCE

Off-Balance Sheet Exposure Solo Consolidated
Letter of Guarantee 747.49 747.49
Irrevocable Letters of Credit 93660.02 93660.02
Bills for Collection 533.80 533.80
Other - -
Total 94941.31 94941.31
(c) Geographical distribution of exposures, broken down in significant areas by major types of credit exposure.
(Tk. in Crore)
Inside Bangladesh Solo Consolidated Division wise Loans and Advances
1) Dhaka-1 Division 25742.98 25914.66
8%
2) Dhaka-2 Division 5905.61 5905.61 1%
3) Barisal Division Dhaka
1538.67 1538.67 8%
4) Chittagong Division 3025.42 3025.42 Barisal
5) Comilla Division 1976.13 1976.13 Chittagong
7%
6) Faridpur Division 2113.80 2113.80 Rajshahi
7) Khulna Division 4892.32 4892.32
Rangpur
8) Mymensingh Division 3021.66 3021.66 9%
9) Rajshahi Division 4309.33 4309.33 Sylhet
10) Rangpur Division 5143.00 5143.00 3% 64%
11) Sylhet Division 909.42 909.42 Khulna
Outside Bangladesh
Kolkata &Siliguri 44.93 44.93
Total 58623.27 58794.95
(d) Industry or counterparty type distribution of exposures, broken down by major types of credit exposure.
(Tk. in Crore) Industry wise Loans and Advances
Industry Name Solo Consolidated
6%
1) Agricultural / Rural Credit 4947.45 4947.45
14% Industry wise Loans and
2) Micro Credit 1221.02 1221.02 18% Advances
Rural Credit
3) Industrial Credit 8185.57 8185.57 2%
Micro Credit
Agro-based Industrial
4) 1900.80 1900.80 Industriul Credit
Credit 9% 4%
Agro based Industrial Credit

5) International Trade 9401.53 9401.53
International Trade
6) SME Finance 7615.50 7615.50
SME Finance
7) General Advance & Others 25351.40 25523.08
General Adnce and Others
Total 58623.27 58794.95
47%
(e) Residual contractual maturity breakdown of the whole portfolio, broken down by major types of credit exposure.
(Tk. in Crore)
Solo Consolidated
On demand 5383.81 5383.81
Not more than 3 months 2182.25 2182.25
More than 3 months but not more than 1 year 17514.14 17685.82
More than 1 year but not more than 5 years 14307.76 14307.76
More than 5 years 17891.55 17891.55
Total 57279.51 57451.19
160

(Tk. in Crore)
Bills purchased and discounted Solo Consolidated
Not more than 1 month 803.03 803.03
More than 1 month but not more than 3 months 47.10 47.10
More than 3 months but not more than 6 months 450.58 450.58
More than 6 months 43.05 43.05
Total 1343.76 1343.76
(f) Major counterparty wise amount of impaired loans
Loans and advances on the basis of significant concentration including bills

Solo Conso
purchased and discounted
Advances to allied concerns of Directors - -
Advances to Managing Directors andother Senior Executives 6.71 6.71
Advances to customer group(amounting more than 10% of banks total capital)
Other customers 18001.70 18001.70
Advance to staff 34421.23 34592.91
Total 6193.63 6193.63
Sector wise loans and advances Solo Consolidated

Government 722.81 722.81
Other Public 12469.52 12469.52
Private 45430.94 45602.62
Total 58623.27 58794.95
Government Solo Consolidated
Unclassified 486.03 486.03
Classified 236.78 236.78
Sub Total 722.81 722.81
Other public Solo Consolidated
Classified 44.47 44.47
Sub Total 12469.52 12469.52
Private Solo Consolidated
Classified 10486.14 10486.14
Sub Total 45430.94 45602.62
Classification wise loan-advs. and Provision Solo Consolidated
Standard 43408.90 43580.58
SMA 4446.98 4446.98
Sub Total 47855.88 48027.56
Classified Solo Consolidated
Substandard (SS) 847.18 847.18
Doubtful (DF) 410.41 410.41
Bad and Loss (BL) 9509.80 9509.80
Sub Total 10767.39 10767.39
Annual Report 2020

YEAR OF EXCELLENCE
Sector WIse Loan & Advances

75%
Private
Other Public
Government
24%
1%

g) Movement of NPA and Provisions
Note: In response to Bank request Bangladesh Bank deferred the Bank from maintaining required provision against
Unclassified and Classified Loans & Advances including Other Assets, Balance with Bangladesh Bank & Balance with Other
Bank and NBFI amounting BDT 3250.41 Crore and from adjustment of deferred tax assets amounting BDT 2750.04 Crore
against Common Equity Tier-1 (CET-1) and Tier-2 capital through BB letter vide no- DOS (CAMS) 1157/01(II)-C/2021-2789
dated 29 June 2021 for the year 2020.
(Tk. in Crore)
Solo Consolidated
Gross Non Performing Assets (NPAs) 10767.39 10767.39

Non Performing Assets (NPAs) to Outstanding Loans & advances 18.37% 18.31%
Movement of Non Performing Assets (NPAs) (Loans & advances) Solo Consolidated
Opening balance 11199.39 11199.39
Additions 618.15 618.15

Reductions 1050.15 1050.15
Closing balance 10767.39 10767.39
Movement of specific provisions for NPAs (Loans & advances) Solo Consolidated
Opening balance 5301.64 5301.64
Add: Provisions made during the period 481.81 481.81
Less: Loan write-off Which fully provided for 16.96 16.96
Add: Recovery loans which was written-off earlier 0.02 0.02
Closing balance 5766.51 5766.51
e) Equities: Disclosures for Banking Book Positions

The major portion of the Bank’s holding of equity exposure is mainly with the purpose of capital gain. The quoted shares are
valued both at cost price and market price basis. However, the un-quoted shares are valued at their cost price.
(a) “Solo Basis” the Bank has equity exposure in Banking Book consisting of listed shares of 153 companies and unlisted
shares of 13 companies.
“Consolidated Basis” the Bank has equity exposure in Banking Book consisting of listed shares of 233 companies and
unlisted shares of 13 companies.
Market value of allotted securities has been determined on the basis of the value of securities at the last trading day of the
year. The non-listed investments in securities are shown at cost.
162
(b) Value disclosed in the balance sheet of investments, as well as the fair value of that equity at cost price and market price
has been disclosed as under:
Investment in shares at cost price :
(Tk. in Crore)
Solo Consolidated
Quoted and Un-quoted shares 2014.56 2049.24

Quoted shares 778.93 813.61
Un-quoted shares 1235.63 1235.63
Investment in shares as market price ;

1839.54 1874.22
Quoted and Un-quoted shares
Quoted shares 603.91 638.59

Un-quoted shares 1235.63 1235.63
f) Interest rate risk in the banking book (IRRBB)

Interest rate risk in the banking book reflects the shocks to the financial position of the Bank including potential loss that the
Bank may face in the event of adverse change in market interest rate. This has an impact on earning of the Bank through net
interest earning as well as on market value of equity or net worth.
(a) The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including assumptions
regarding loan prepayments and behavior of non-maturity deposits and frequency of IRRBB measurement.
Interest rate risk is the potential impact on the Bank’s earnings (Net Interest Income- NII) and net asset values due to changes
in market interest rates. Interest rate risk arises when the Bank’s principal and interest cash flows (including final maturities),
for both On and Off-balance sheet exposures, have mismatched re-pricing dates. The amount at risk is a function of the
magnitude and direction of interest rate changes and the size and maturity structure of the mismatch position. The portfolio
of assets and liabilities in the banking book sensitive to interest rate changes is the element of interest rate risk.
To manage this risk in the banking book, bank considers the impact of interest rate changes on both assets and liabilities,
and its particular features including, among other things, terms and timing. Changes in interest rates affect both the current
earnings (earning perspective) as well as the net worth of the Bank (economic value perspective). SBL periodically computes
the interest rate risk on the banking book that arises due to re-pricing mismatches in interest rate sensitive assets and
liabilities. For computation of the interest rate mismatches the guidelines of Bangladesh Bank are followed. Details relating
to re-pricing mismatches and the interest rate risk thereon are placed to the ALCO regularly.
(b) The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including assumptions
regarding loan prepayments and behavior of non-maturity deposits and frequency of IRRBB measurement.
(Rate Sensitive Assets & Rate Sensitive Liabilities)
as on 31 December 2020
More
8 days- 3-12
Particulars TOTAL Call 2-7 days 1-3 Month 1-5 Years than 5
1 Month Months
years
Fund Placement with
3,218.08 - 60.00 93.00 526.00 2,422.63 101.93 14.52
Banks & NBFIs
Money at Call & Short
903.13 903.13 - - - - - -
Notice
Investment in Govt.-
60,290.55 100.00 944.83 2,265.32 8,437.36 9,767.91 21,838.57 16,936.56
Securities
Other Investments 3,034.50 - - - - 2,105.90 382.18 546.42
Annual Report 2020

YEAR OF EXCELLENCE
More
8 days- 3-12
Particulars TOTAL Call 2-7 days 1-3 Month 1-5 Years than 5
1 Month Months
years
Loans and Advances* 47,514.04 177.08 767.03 2,870.24 9,425.32 12,637.19 13,129.73 8,507.45
Bills Purchased &
1,306.13 13.98 62.33 397.53 832.29 - - -
discounted
Reverse REPO - - - - - - - -
Total RSA 116,266.42 1,194.18 1,834.19 5,626.09 19,220.97 26,933.63 35,452.40 26,004.95
Borrowings: From
(5,100.15) - - - - - (5,045.22) (54.93)
Bangladesh Bank
Money at Call & Short
- - - - - - - -
Notice
Deposits** (100,181.63) (4,659.62) (1,315.43) (4,999.82) (23,395.93) (36,579.64) (22,802.38) (6,428.80)
REPO - - - - - - - -
Total RSL (105,281.77) (4,659.62) (1,315.43) (4,999.82) (23,395.93) (36,579.64) (27,847.60) (6,483.73)
NET MISMATCH 10,984.65 (3,465.44) 518.77 626.27 (4,174.96) (9,646.02) 7,604.80 19,521.23
CUMULATIVE NET
(3,465.44) (2,946.67) (2,320.41) (6,495.36) (16,141.38) (8,536.58) 10,984.65
MISMATCH

* Excluding Provision for Non-Performing Loans of Tk. 5,284.70 crore and Interest Suspense of Tk. 4,443.96 crore.
** Excluding Non-Performing bearing demand deposits of Tk. 24,070.14 crore.
g) Market risk
Market risk arises due to changes in the market variables such as interest rates, foreign currency exchange rates,
equity prices and commodity prices. The financial instruments that are held with trading intent or to hedge against various
risks, are purchased to make profit from spreads between the bid and ask price are subject to market risk. SBL is exposed to
market risk mostly stemming from Government Treasury Bills and Bonds, Shares of listed Public Limited Companies,
foreign currency etc.
(i) Views of Board of Directors (BOD) on trading / investment activities
The Board approves all policies related to market risk, set limits and reviews compliance on a regular basis. The objective is to
provide cost effective funding to finance assets growth and trade related transactions. The market risk covers the followings
risks of the Bank’s balance sheet:
i) Interest rate risk;
ii) Equity price risk;
iii) Foreign exchange risk; and
iv) Commodity price risk
(ii) Methods used to measure market risk
As per relevant Bangladesh Bank guidelines, Standardized Approach has been used to measure the Market Risk for capital
requirement for trading book of the Bank. The total capital requirement in respect of market risk is the aggregate capital
requirement calculated for each of the risk sub-categories. For each risk category minimum capital requirement is measured
in terms of two separately calculated capital charges for “specific risk” and “general market risk” as under:
Component of Capital charged For Market risk

Market risk General Market risk Specific Market risk
Interest Rate Risk Applied -
Equity Price Risk Applied Applied
Foreign Exchange Risk Applied -
Commodities Price Risk N/A
164
(iii) Market risk management system

The Treasury Division of the Bank manages market risk covering liquidity, interest rate and foreign exchange risks with
oversight from Assets- Liability Management Committee (ALCO) comprising senior executives of the Bank. ALCO is chaired
by the Managing Director. ALCO meets at least once in a month.
The Risk Management Division also reviews the market risk parameters on monthly basis and recommends on portfolio
concentration for containing the RWA.
(iv) Policies and processes for mitigating market risk
There are approved limits for credit deposit ratio, liquid assets to total assets ratio, maturity mismatch, commitments for both
on-balance sheet and off-balance sheet items and borrowing from money market and foreign exchange position. The limits
are monitored and enforced on a regular basis to protect against market risks. The exchange rate committee of the bank
meets on a daily basis to review the prevailing market condition, exchange rate, foreign exchange position, and transactions
to mitigate foreign exchange risks.
(Tk. in Crore)
The capital requirements for: Solo Consolidated

Interest rate risk; 308.04 308.04
Equity position risk; 120.78 127.72
Foreign exchange risk; 193.33 193.33
Commodity risk Nil Nil
Total Requirement 622.15 629.09
h) Operational risk
Operational risk is the risk which may arise directly or indirectly due to failure or breakdown of system, people, and process.
This definition includes legal risk, but excludes strategic and reputation risk. The bank manages these risks through a control
based environment in which processes are documented, authorization is independent, and transactions are reconciled and
monitored.
(i) Views of Board of Directors (BOD) on system to reduce Operational Risk
The policy for operational risks including internal control and compliance risk is approved by the Board in line with the
relevant guidelines of Bangladesh Bank. Audit Committee of the Board directly oversees the activities of Internal Control and
Compliance Division (IC&CD) to protect against all operational risks.
As a part of continued surveillance, the management committee (MANCOM), Risk Management Committee (at the
management level), independent Risk Management Division regularly reviews different aspects of operational risk. The
analytical assessment was reported to the Board/ Risk Management Committee/Audit Committee of the Bank for review
and formulating appropriate policies, tools & techniques for mitigation of operational risk.
(ii) Performance gap of executives and staffs
SBL has a policy to provide competitive package and best working environment to attract and retain the most talented
people available in the industry. SBL’s strong brand image plays an important role in employee motivation. As a result, there
is no significant performance gap.
(iii) Potential external events
Like other peers, SBL operates its business with few external risk factors relating to the socio-economic condition, political
atmosphere, regulatory policy changes, natural disaster etc. based on the overall perspective of the country. Potential
external events and related downside risk, namely, political impasse, damage of Bank’s delivery channel including ATM, fear
of theft/ robbery in banks vaults, compliance/adjustment due to changes of regulatory policy stance, laws & regulations etc.
are managed to keep within tolerable limit.
(iv) Policies and processes for mitigating operational risk
The policy for operational risks including internal control and compliance risk is approved by the Board taking into account
relevant guidelines of Bangladesh Bank. A policy guideline on Risk Based Internal Audit (RBIA) System is in operation. As
per RBIA, branches with high risk status and subjected to more frequent audit by Internal Control and Compliance Division
(IC&CD). IC&CD directly reports to Audit Committee of the Board.
Annual Report 2020

YEAR OF EXCELLENCE
Currently, SBL are using some models or tools for mitigating operational risk such as Self Assessment of Anti-fraud Internal
Control; Quarterly Operational Report (QOR) and Departmental Control Function Check List (DCFCL) in line with the
Bangladesh Bank’s relevant Instructions and recommendations. It is required to submit the statement on Self Assessment of
Antifraud Internal Control to Bangladesh Bank on quarterly rest.
In addition, there is a Vigilance Cell established in 2009 to reinforce the operational risk management of the Bank. Bank’s
Anti- Money laundering activities are headed by CAMLCO and their activities are devoted to protect against all money
laundering and terrorist finance related activities. The newly established Central Customer Service & Complaint Management
Cell was also engaged in mitigating the operation risks of the Bank. Apart from that, there is adequate check and balance at
every stage of operation, authorities are properly segregated and there is at least dual control on every transaction to protect
against operational risk.
Operational Risk (Continued)
(iv) Approach for calculating capital charge for operational risk
The Bank follows the Basic Indicator Approach (BIA) in terms of BRPD Circular No. 18 dated 21 December2014 [Guidelines
on ‘risk Based capital Adequacy for Banks’ (revised regulatory capital framework in line with Basel III)]. The BIA stipulates the
capital charge for operational risk is a fixed percentage, denoted by α (alpha) of average positive annual gross income of the
Bank over the past three years. It also states that if the annual gross income for any year is negative or zero, that should be
excluded from both the numerator and denominator when calculating the average gross income. The capital charge for
operational risk is enumerated by applying the following formula:
K = [(GI 1 + GI2 + GI3) a]/n
Where:
K = the capital charge under the Basic Indicator Approach
GI = only positive annual gross income over the previous three years (i.e., negative or zero gross income if any shall be
excluded)
a= 15 percent
n = number of the previous three years for which gross income is positive.
Besides, Gross Income (GI) is calculated as “net Interest Income” plus “net non -Interest Income”. The GI is also the net result
of:
i. Gross of any provisions;
ii. Gross of operating expenses, including fees paid to outsourcing service providers;
iii. Excluding realized profits/losses from the sale of securities held to maturity in the banking book;
iv. Excluding extraordinary or irregular items;
v. Excluding income derived from insurance.
(Tk. in Crore)
Solo Consolidated
The capital requirements for operational risk. 829.15 835.07
i) Liquidity Ratio
In line with the provisions of liquidity risk management under Basel III, Bangladesh Bank on the basis of the relevant guideline
of Bank for International Settlements (BIS) has identified the (i) Liquidity Coverage Ratio (LCR); (ii) Net Stable Funding Ratio
(NSFR); and (iii) Leverage under the purview of ‘Liquidity’ ratio vide BRPD Circular No. 18 dated 21 December 2014 and DOS
Circular No. 1 dated 1 January 2015.
(i) Views of Board of Directors (BOD) on system to reduce Liquidity Risk
The Board of Directors reviews the liquidity risk of the Bank on quarterly rest while reviewing the Quarterly Financial
Statements, Stress Testing Report etc. Besides, the Chairman of the Board also reviews the liquidity position while reviewing
the management information system (MIS) report on monthly basis. Upon reviewing the overall liquidity position along
with the outlook of SBL funding need, investment opportunity, market/industry trend, the Board takes its strategic decision
regarding deposits, funding, investments, loans as well as interest rates polices etc.
166
The Board of SBL always strives to maintain adequate liquidity to meet up Bank’s overall funding need for the huge retail
depositors, borrowers’ requirements as well as maintain regulatory requirements comfortably.
(ii) Methods used to measure Liquidity Risk
In order to measure liquidity risk various methods are being used which are as follows:
z GAP analysis is being done regularly that deals with the mismatch of assets and liabilities in different time
buckets like 0-30 days, 31-90 days, 91-180 days, 181-270 days, 271-365 days and
Liquidity Ratio (Continued)
beyond 1 year. In monthly ALCO paper, SBL show this GAP analysis based on which different strategic decisions are taken in
order to reduce liquidity risk that may arise due to the mismatch between assets and liabilities.
z Cash flow forecasting is another technique to measure liquidity risk that may arise due to future cash
flow mismatch. In our monthly ALCO paper we show this cash flow forecasting
(iii) Liquidity risk management system
In SBL, at the management level, the liquidity risk is primarily managed by the Treasury Division (Front Office) under oversight
of ALCO which is headed by the Managing Director along with other senior management. Apart from the above, Risk
Management Division also monitors & measures the liquidity risk in line with the Basel III liquidity measurement tools,
namely, LCR, NSFR, Leverage Ratio. RMD addresses the key issues and strategies to maintain the Basel III liquidity ratios to
the respective division (s) on regular interval.
(iv) Policies and processes for mitigating Liquidity Risk
The Asset-Liability (ALCO) policy leads the process & procedures for mitigation of liquidity risk of SBL.
ALCO works under specific Terms of References (functions) approved by the Board.
Treasury Division (Front Office) and ALM desk under regular supervision of Top Management reviews the overall liquidity
position of SBL and takes appropriate strategy, process in line with the industry position for managing liquidity risk of the
Bank.
(Amount in Taka)
Liquidity Coverage Ratio 539.08%

Net Stable Funding Ratio (NSRF) 100.45%
Stock of High quality liquid assets 63,05,17,807
Total net cash outflows over the next 30 calendar days 1,16,96,26,354
Available amount of stable funding 1,12,99,75,420

Required amount of stable funding 1,12,49,37,806
j) Leverage Ratio
Leverage is an inherent and essential part of modern banking business. In other words, banks are highly leveraged
organizations which facilitate leverage for others. Leverage, in simple terms, is the extent to which a bank funds its assets
with borrowings rather than capital. More debt relative to capital means a higher level of leverage.
(i) Views of BOD on system to reduce excessive leverage
The Board of Directors of SBL primarily views on the growth of On and Off balance sheet exposures commensurate with
its expected capital growth so that the excessive leverage is reduced. Within the On-balance components, again, the Board
emphasizes on the growth of the prime component i.e. the loans and advances and maintaining good asset quality so as to
maximize the revenue as well as the capacity to generate capital internally (in the form of retained earnings) to trade-off the
excessive leverage supposed to be caused by asset growth.
(ii) Policies and processes for managing excessive On and Off balance sheet leverage
First and foremost, Bank’s policy is to maintain the Leverage Ratio (Tier 1 capital as proportion to total adjusted On and Off
balance sheet asset) well above the regulatory requirement. To this end, the striking components of balance sheet, namely,
the deposits & borrowing, loans & advances, other liquid assets (treasury bills, bonds, fund placements) are analyzed on
monthly basis.
Annual Report 2020

YEAR OF EXCELLENCE
Leverage Ratio (Continued)

Measures are taken to contain the growth of overall size of balance sheet (On and Off balance sheet exposures aggregately)
considering short term outlook of the industry indicators as well as possible growth of equity (Tier 1 capital) of the Bank on
quarterly rest.
With regard to managing the excessive leverage, the regulatory stance through the monetary policy initiatives i.e. the scope
of expected business potential (growth), estimated money supply, inflation, resulting the estimated overall liquidity of the
industry as well as the Bank in particular is also considered.
(iii) Approach for calculating exposure/Leverage
The exposures of balance sheet representing the overall position of the Bank as of the reporting date are calculated and
presented in terms of applicable relevant accounting standards, i.e., IASs (BASs), IFRSs (BFRSs), etc.
The accounting values of assets and liabilities are also presented and measured at gross. Netting of assets and liabilities are
also made where permitted in compliance with the respective accounting standards and the regulatory instruction.
For calculating “leverage”, SBL follows the ‘Leverage Ratio’ approach/method as suggested by Bangladesh Bank.
(Amount in Taka)
Solo Consolidated
Leverage Ratio 2.80% 2.80%
On balance sheet exposure 15,33,52,83,12,865 15,34,70,34,18,902
Off balance sheet exposure 2,06,52,37,60,000 2,06,52,37,60,000
Regulatory Adjustment made to Tier1 Capital 61,30,00,000 61,76,00,000
Total exposure 17,39,43,90,72,865 17,40,60,95,78,902
k) Remuneration
a) Information relating to the bodies that oversee remuneration.
(i) Name of the bodies that oversee remuneration
At the management level, primarily the Human Resources Division oversees the ‘remuneration’ in line with its HR management
strategy/policy under direct supervision and guidance of Management Committee (MANCOM) of the Bank.
(ii) Composition of the main body overseeing remuneration
The MANCOM is headed and chaired by the Managing Director & CEO of the Bank; along with other members of top
executive management (Deputy Managing Directors) and the Heads of different functional divisions of Head Office. Head of
Human Resources Division acts as the Member Secretary of the MANCOM of SBL.
(iii) Mandate of the main body overseeing remuneration
The mandate of the Management Committee (MANCOM) as the main body for overseeing the Bank’s remuneration is to
review the position of remuneration and associated matters and recommend to the Board of Directors for approval of its
restructuring, rearrangement and modification commensurate with the industry best practices as per requirement.
Remuneration (Continued)
(iv) External consultants whose advice has been sought, the body by which they were commissioned, and in what areas
of the remuneration process.
The Bank has no External Consultant permanently regarding ‘remuneration’ and its process. However, experts’ opinion may
have been sought in case to case basis regarding income tax matter, lawyers’ opinion for settlement of employees’ dues in
case of death, penalty etc. if required, by the management.
(v) A description of the scope of the bank’s remuneration policy (e.g. by regions, business lines), including the extent to
which it is applicable to foreign subsidiaries and branches.
The Bank does not differentiate the ‘Pay Structure’ and ‘employee benefits’ by regions. However, variation in remuneration is
i000n practice based on nature of job/business line/activity primarily bifurcated for the employees who are directly recruited
by the Bank and the headcounts/employees explored through outsourcing service providers as per rule. As of 31 December
2020, the Bank had two foreign subsidiaries and two branches outside Bangladesh.
(vi) A description of the types of employees considered as material risk takers and as senior managers, including the
number of employees in each group.
168
We consider the members of the senior management, branch managers and the employees engaged in different functional
divisions at Head Office (except the employees involved in internal control, risk management and compliance) as the material
risk takers of SBL.
b) Information relating to the design and structure of remuneration processes.
(i) An overview of the key features and objectives of remuneration policy.
Remuneration and other associated matters are guided by the Bank’s Service Rule as well as instruction, guidance from the
Board from time to time in line with the industry practice with the objectives of retention/hiring of experienced, talented
workforce focusing on sustainable growth of the Bank.
(ii) Whether the remuneration committee reviewed the bank’s remuneration policy during the past year, and if so, an
overview of any changes that was made.
Human Resources Division under guidance of MANCOM, the Board and senior management reviews the issues of
remuneration & its associated matters from time to time.
(ii) A discussion of how the bank ensures that risk and compliance employees are remunerated independently of the
businesses they oversee.
The risk and compliance employees are carrying out the activities independently as per specific terms of references, job
allocated to them.
Regarding remuneration of the risk and compliance employees, Human Resources Division does not make any difference
with other mainstream/ regular employees and sets the remuneration as per the prevailing rule of the Bank primarily governed
by the employees’ service rule of the Bank.
c) Description of the ways in which current and future risks are taken into account in the remuneration processes.
(i) An overview of the key risks that the bank takes into account when implementing remuneration measures.
The business risk including credit/default risk, compliance & reputational risk are mostly considered when implementing the
remuneration measures for each employee/group of employee. Financial and liquidity risk are also considered.
(ii) An overview of the nature and type of the key measures used to take account of these risks, including risks difficult
to measure.
Different set of measures are in practice based on the nature & type of business lines/segments etc. These measures are
primarily focused on the business target/goals set for each area of operation, branch vis-à-vis the actual results achieved
as of the reporting date. The most vital tools & indicators used for measuring the risks are the asset quality (NPL ratio), Net
Interest Margin (NIM), provision coverage ratio, credit-deposit ratio, cost-income ratio, growth of net profit, as well the
non-financial indicators, namely, the compliance status with the regulatory norms, instructions has been brought to all
concerned of the Bank from time to time.
(iii) A discussion of the ways in which these measures affect remuneration.
While evaluating the performance of each employee annually, all the financial and non-financial indicators as per pre-
determined set criteria are considered; and accordingly the result of the performance varies from one to another and thus
affect the remuneration as well.
(iv) A discussion of how the nature and type of these measures has changed over the past year and reasons for the
change, as well as the impact of changes on remuneration.
No material change has been made during the year 2020 that could the affect the remuneration.
d) Description of the ways in which the bank seeks to link performance during a performance measurement period
with levels of remuneration.
(i) An overview of main performance metrics for bank, top-level business lines and individuals.
The Board sets the Key Performance Indicators (KPIs) while approving the business target/budget for each year for the Bank
and business lines/segments. The management sets the appropriate tools, techniques and strategic planning (with due
concurrence/approval of the Board) towards achieving those targets. The most common KPIs are the achievement of loan,
deposit and profit target with the threshold of NPL ratio, cost-income ratio, cost of fund, yield on loans, provision coverage
ratio, capital to risk weighted asset ratio (CRAR), ROE, ROA, liquidity position (maintenance of CRR and SLR) etc.
(ii) A discussion of how amounts of individual remuneration are linked to bank-wide and individual performance.
The remuneration of each employee is paid based on her/his individual performance evaluated as per set criteria. And,
accordingly, the aggregate amount of remuneration of the Bank as a whole is linked/ impacted to the same extent.
Annual Report 2020

YEAR OF EXCELLENCE
(iii) A discussion of the measures the bank will in general implement to adjust remuneration in the event that performance
metrics are weak. This should include the bank’s criteria for determining “weak” performance metrics.
The Bank follows remuneration process as per set criteria with no in general adjustment in the event of weak performance
metrics/scorecard.
e) Description of the ways in which the bank seek to adjust remuneration to take account of longer-term performance.
(i) A discussion of the bank’s policy on deferral and vesting of variable remuneration and, if the fraction of variable
remuneration that is deferred differs across employees or groups of employees, a description of the factors that
determine the fraction and their relative importance.
The Bank pays variable remuneration i.e. annual increment based on the yearly performance rating on cash basis with the
monthly pay. While the value of longer term variable part of remuneration i.e. the amount of provident fund, gratuity fund
are made provision on aggregate/individual employee basis; actual payment is made upon retirement, resignation etc. as
the case may be, as per rule.
(ii) A discussion of the bank’s policy and criteria for adjusting deferred remuneration before vesting and (if permitted by
national law) after vesting through claw back arrangements.
Not Applicable.
f) Description of the different forms of variable remuneration that the bank utilizes and the rationale for using these
different forms.
(i) An overview of the forms of variable remuneration offered (i.e. cash, shares and share-linked instruments and other
forms. A description of the elements corresponding to other forms of variable remuneration (if any) should be
provided.
The Bank pays variable remuneration on cash basis (i.e. direct credit to the employee Bank account and/or Payment Order/
Cheque), as the case may be, as per rule/practice.
(ii) A discussion of the use of the different forms of variable remuneration and, if the mix of different forms of variable
remuneration differs across employees or groups of employees), a description the factors that determine the mix
and their relative importance.
The following variable remuneration has been offered by SBL to its employees:
Annual Increment
Bank provides annual increments based on performance to the employees with the view of medium to long term strategy
and adherence to Sonali Bank values.
g) Number of meetings held by the main body overseeing remuneration during the financial year and remuneration
paid to its member
Due to COVID-19 situation, only 01 (One) meeting of the Senior Management Team (SMT) which was previously named as
Management Committee (MANCOM) could be held in the year 2020. All the members of SMT are from the core banking
area/operation of the Bank. No remuneration was paid to the members of the Management Committee for attending the
meeting.
h)
i) Number of employees having received a variable remuneration award during the financial year.
The following Number of Employees was received a variable remuneration during the year 2020:
Particulars Numbers
Number of employees having received a variable remuneration award during the year 2020 NIL
ii) Number and total amount of guaranteed bonuses awarded during the financial year.
The following Number of Employees was received a variable remuneration during the year 2020:
number of employees Total amount

Particulars (In Unit) of guaranteed bonuses (In Million Taka)
Guaranteed bonuses awarded during the year 2020 NIL NIL
170
iii) Number and total amount of sign-on awards made during the financial year.
There was no severance payment during the year.
iv) Number and total amount of severance payments made during the financial year.
There was no severance payment during the year.
i)
i) Total amount of outstanding deferred remuneration, split into cash, shares and share-linked instruments and other
forms.
Not Applicable.
ii) Total amount of deferred remuneration paid out in the financial year.
No deferred remuneration paid in the year 2020.
j) Breakdown of amount of remuneration awards for the financial year to show:
i) Fixed and variable remuneration paid in 2020 are as follows:
Tk. in million
Particulars Amount
Fixed pay (Including Bonus) 16,092.95
Variable pay N/A
Total fixed and variable pay
(ii) Deferred and non-deferred (paid during the year).
Tk. in million
Particulars Amount
Deferred N/A
Non-deferred 16,092.95
iii) Different forms used (cash, shares and share linked instruments, other forms).
z Remuneration is paid on cash basis (i.e. direct credit to the employee Bank account and/or Payment
Order/Cheque), as the case may be, as per rule/practice.
k) Quantitative information about employees’ exposure to implicit (e.g. fluctuations in the value of shares or performance
units) and explicit adjustments (e.g. claw backs or similar reversals or downward revaluations of awards) of deferred
remuneration and retained remuneration:
i) Total amount of outstanding deferred remuneration and retained remuneration exposed to ex post explicit and/or
implicit adjustments.
Not Applicable
ii) Total amount of reductions during the financial year due to ex post explicit adjustments.
Not Applicable
iii) Total amount of reductions during the financial year due to ex post implicit adjustments.
Not Applicable
Annual Report 2020

YEAR OF EXCELLENCE
172
REPORT ON
SUSTAINABLE
BANKING
SBL’s sustainability ethos is one that is deeply embedded in z Promote peaceful and inclusive societies for
the overall business strategy and therefore intrinsic to the sustainable development.
way in which the Bank conducts its business. Sustainability z Corporate infrastructure and culture in the
is at the very core of the Bank’s corporate strategy.By institution.
integrating social and environmental responsibility into
core business processes and stakeholder management, Green Strategic Planning: Green Strategic Planning has
the Bank recognizes its ability to achieve the ultimate goal prepared and approved by the Board. It was circulated vide
of creating both social and corporate value. By integrating Head Office circular letter no. 683, RMD circular letter no.
sustainability into a bank’s business strategy and decision 09, date-15.07.2015.
making processes, institutions can support environmentally
or socially responsible projects, innovative technologies Sustainable Finance Unit
and sustainable enterprises. Sonali Bank Limited, as the As green environment has a positive effect on environment,
leading bank, is also considering the two aspects into its Sonali Bank Limited expands its hand to the environment
core business through the integration of environmental and friendly activities as per regulatory guidelines. A separate
social considerations into product design, mission policy sustainable finance unit has been established to implement
and strategies. diversified measures such as green financing, create
consciousness among the people, less consumption of
Mission of Sonali Bank Limited water, electricity and paper, and encourage financing
z Mission of Sonali Bank Limited in achieving commercial projects that supports ecological balance to
a sustainable economy incorporates the make SBL an environment responsive biggest commercial
strategy and policy of the government which bank. To reduce the pressure over electricity, SBL is
inaugurating new branches which are capable of getting
includes:
more sunlight and fresh air during office hours.
z Poverty alleviation through contributing in
socio-economic development of the country.
z Achieve food security by promoting Number of Amount
Sl. Projects
sustainable agriculture and by enhancing Projects (TK.in Million)
facilities in transactions of the farmers.
z Support quality education and facilitate the 1 Solar Panel 1556 45.00
school going students.
z Create awareness of its employees and the 2 ETP 01 847.15
valued clients for pollution free Bangladesh.
z Sustainable and gradual positive financial 3 Pet Bottle 01 8.70
growth through financing established and
promising sectors. 4 Bio Degradable Products 01 22.45
z Uphold customer care and responsible
financial services. 5 E Bricks - 179.13
z Build balanced and green Bangladesh
by protecting forests and by combating Total 1559 1102.43
desertification.
Annual Report 2020

YEAR OF EXCELLENCE
Sustainable Developments GOAL:
NO QUALITY GENDER
POVERTY EDUCATION EQUALITY
We show our customers that we are on their

side through service excellence, supporting
financial wellbeing, good customer DECENT WORK AND REDUCED PARTNERSHIPS
outcomes and advocacy, and digital ECONOMIC GROWTH INEQUALITIES FOR THE GOALS
OUR
innovation.
CUSTOMERS
QUALITY DECENT WORK AND REDUCED
EDUCATION ECONOMIC GROWTH INEQUALITIES
We are rebuilding trust and our reputation

by engaging proactively and openly with
government and regulators, investing
PARTNERSHIPS
in communities and education, and FOR THE GOALS
OUR
rolemodelling reconciliation.
COMMUNITY
GOOD HEALTH GENDER DECENT WORK AND
AND WELL-BEING EQUALITY ECONOMIC GROWTH
We motivate our people through leadership

and engagement, by promoting health,
wellbeing, diversity and inclusion, and by REDUCED
INEQUALITIES
PARTNERSHIPS
FOR THE GOALS
OUR providing training and career development.

PEOPLE
AFFORDABLE AND RESPONSIBLE CLIMATE
CLEAN ENERGY CONSUMPTION ACTION
AND PRODUCTION
We deliver sustainble financial performance

through strong conduct, culture,
governance, accountability, remuneration PARTNERSHIPS
FOR THE GOALS
OUR and responsible business practices.

SHAREHOLDER
Digital Banking: Till December 2020, achievement of this bank in online banking is as follows:
A) Online Banking:
Number of Total Number of Any Number of CBS

Branches Branch Banking Branches
1224 Branches 1224
1224
No of Total No. of Branches

Accounts Powered by Solar
2,14,43,905 Energy
45
174
REPORT ON SUSTAINABLE BANKING
Incorporation of Environmental Risk into Credit Risk renewable energy, pulp and paper, sugar and distillery,
Management: construction and housing, engineering and basic metals,
Sonali Bank Limited has incorporated environmental chemicals (fertilizers, pesticides and pharmaceuticals),
and climate change risk as part of the existing credit risk rubber and plastic industry, hospital/clinic, chemical trading,
methodology prescribed to assess a borrower in line with brick manufacturing, ship breaking, jute and jute goods etc.
Bangladesh Bank ERM guideline and related instructions. We are developing tools for rating the business that are
Bank use environmental risk rating (EnvRR) for facilitating being well financed and properly monitored. Our policy
elements of credit risk arising from environmental issues discourages financing red category or other environmentally
and regulatory compliance as well. Environmental risk is hazard projects.
a facilitating element of credit risk. So Sonali Bank Limited
integrated environmental risk management with credit risk Social Impact of Sustainable Banking: With our material
management in all aspects. issues in mind, we have identified the SDGs that are most
relevant to our business and stakeholders.
On receiving the proposal for financing, Bank conduct a
preliminary environmental risk review using Environmental Employees and Talent Management: In order to be the best
Due-Diligence (EDD) checklists. There is a general EDD retail and commercial Bank for our customers, we have to
checklist, ten sectors EDD checklists and a guidance begin with our employees. If they feel proud of belonging
matrix. Bank determines the environmental risk rating (low, to SBL and are more committed, they will be able to earn
moderate and high) of any project on the basis of checklist. the lasting loyalty of our customers. SBL endeavors to attract
In-house Environmental Management: By the in-house and retain the best talent, and wants its professionals to be
motivated, committed and fairly paid. SBL employees share
environmental management system, to prevent the water,
the corporate culture focusing on fulfillment of its purpose,
paper, electricity and fuel wastage and using them efficiently
helping people and businesses prosper, and consistently
a “Green Office Guide” including “few instructions” was issued
doing things in a simple, personal and fair way.
in the Head Office Circular Letter- 411 (Risk Management
Department Circular letter – 03) of 23 September 2012. Year Total Courses Total Trainees
According to the instruction, every office and branches were
ordered to estimate the inventory of water, paper, electricity 2020 406 6319
and fuel and keep that under a certain limit. 2019 1068 23067
Green Marketing: Marketing of products and to provide 2018 798 15121
services to the customers, we try to highlight the merits
and demerits of the products. Simultaneously, we are taking 2017 460 17015
under consideration the project (funded and to be funded) 2016 578 10867
whether that is safe and risk free for environment at the time
of granting the loans. Knowledge: Training is one of the key tools for professional
development at SBL. With a staff college including 05 (Five)
Staff Training, Creating Consumer Awareness, And Green training institutes, BIBM, Bangladesh Bank training academy
Banking Activities: In line with environmental law, we are and other training institutes, Sonali Bank Limited provided
inspiring people to run their business and financial activities training to 6319 officers through 406 training courses in
using the inventories properly and involving them to save 2020.
the environment. Sonali Bank Staff College is gradually
Community Investment: SBL also contributes to economic
organizing training sessions on green banking.
and social development through initiatives and programs
Publishing and Promoting Projects under taken: We are
that support the community. At SBL, we believe that the
reporting about our green banking activities to Bangladesh
most rewarding investment is investing for the society. We
Bank on quarterly basis in the prescribed form of the
Bangladesh Bank. are driven by our purpose to sustain and ensure growth by
making profit for the stakeholders. We believe in creating
Developing Sector Specific Environmental Policy: SBL also
long-lasting value for our clientele, stakeholders, and
follows Bangladesh Bank Environmental Risk Management
(ERM) guidelines, Environmental Coservation Act- 1995 employees and above all for the community we operate in.
(ECA 1995), Environmental Conservation Rules (ECR 1997)
Tax Contribution: SBL contributes economically and
and other relevant guidelines. We develop Sector Specific
socially to the countries in which it operates by paying all
Environmental Policies for different environmental sensitive
sectors such as agriculture, agro business (poultry and dairy), direct taxes and withholding indirect taxes from third parties,
agro farming, leather (tannery), fishery, textile and apparels, collaborating fully with the local tax authorities.
Annual Report 2020

YEAR OF EXCELLENCE
REPORT ON
HUMAN RESOURCES
Human resource development is regarded as one of the z Ensure employees welfare and positive
integral parts in Sonali Bank limited. It is important to utilize attitude amongst them .
human capital more efficiently to achieve institutional goals
z Ensure better working environment for the
as it is easy to make proper distribution of other assets of the
employees.
institution through skilled and capable manpower. We have
z Raise awareness of current workplace
a pool of talented and skilled workforce. We also focus on
their career development by nominating them for different legislation.
training, seminar and workshop both home and abroad. The Board of Directors and the management team of Sonali
In the year of 2020, the Human Resource Development Bank Limited always emphasize on appointing talents,
Division (HRDD) made a significant progress towards developing human and technical skills of the employees so
assembling resilient organization by focusing on strategic that the organization can get optimum output by utilizing
personnel planning, flair attraction and management and
limited workforce. In viewing, a supernumerary posts, an
in leadership development by sustainable resourcing of
innovative area of operation, performance and merit based
significant roles. The HRDD of Sonali Bank Limited performs
promotion, right man in right place posting policy are among
the following key roles:
the few initiatives which were approved and implemented
z Facilitate the process of recruiting appropriate
by SBL authority in 2020. A tabular presentation of the
candidates for the organization.
designation-wise number and gender of the staffs are given
z Identifies and meets the training requirements
of existing staffs. below:
2020
Designation
Male Female Total
CEO & Managing Director 1 - 1
Deputy Managing Director 4 - 4
General Manager/equivalent 5 - 5
Deputy General Manager/equivalent 124 14 138
Assistant General Manager/equivalent 325 45 370
Senior Principal Officer/equivalent 1087 177 1,264
Principal Officer/equivalent 2248 513 2,761
Senior Officer/equivalent 4631 1274 5,905
Officer/equivalent 5161 1129 6,290
Junior Officer/equivalent 42 4 46
Assistant Officer Grade-1/equivalent 428 16 444
Supporting Staff Grade-1 316 11 327
Assistant Officer Grade-2/ SS Gr-2 830 55 885
Supporting Sub Staff Grade-1/2/3 398 - 398
Local Based Officer (Overseas Branches, Sonali Bank UK Limited, SECI,
49 - 49
Sonali Bank Representative Offices)
Local Based Staff (Overseas Branches, Sonali Bank UK Limited, SECI,
31 - 31
Sonali Bank Representative Offices)
Total 15,680 3,238 18,918
In percentage 82.9% 17.1% 100.0%
176
REPORT ON HUMAN RESOURCES
Recruitment and Posting SBL, recruitment is inevitably required. The HRDD of the
Bank has been consistently recruiting manpower at different
Recruitment is the apparent stair to fill up the vacancies,
as every employee consequently retires from the job after grades and tire to meet the vacancies as desired. More over
completion of the tenure (59/60 years) at a normal course. In to ensure the transparency and accountability, transfer/
order to cope with the growing demand of banking products posting is also a regular phenomenon is done by Human
and services and to operate new branches and divisions of Resource Management Division of SBL, accordingly.
List of recruitment from 2016 to 2020 in different grades are given below:
Law Senior Officer/

CFO CITO CAO CSO
Year Consultant Officer/ Officer Cash/ Total
(Contractual) (Contractual) (Contractual) (Contractual)
(contractual) Equivalent Equivalent
2020 1 - 1 - 1 425 878 1,306
2019 - - - - - 1,148 2,721 3,869
2018 - - - 1 - 65 496 562
2017 - 1 1 - 1 89 11 103
2016 - - - - - - 3 3
HRDD has sent requisition to Bankers Selection Committee who are helping to drive the banking business forward.
(BSC), Bangladesh Bank for recruitment of 9,543 Senior
To ensure the Security of Head Office/ Controlling Offices/
Officer/Officer & equivalent posts (Dec-2019 based). In
Branches/ATM Booths/ Pledge Godowns by the embodied
2020, total 1303 fresh new talents were added into the
Ansar we signed Memorandum of Understanding (MOU)
workforce of SBL while 3(three) GM/DGM level contractual
with Bangladesh Ansar & VDP authority.
posts were filled by specialist and experienced candidates
Impact of employees to the Bank is given below:
Description of Years 2020 2019 2018 2017 2016 2015
Total number of employees 18918 19609 17271 18301 20203 22100
Total number of branches 1226 1224 1215 1212 1209 1207
Employee per branch(nos) 16 16 14 15 17 18
Deposit per employee (million Tk.) 66.54 59.09 63.33 58.16 51.06 39.18
Investment per employee (million Tk.) 64.27 53.62 52.61 48.40 42.24 34.13
Operating profit per employee (million Tk.) 1.14 0.87 1.17 0.65 0.21 0.39
Salaries and allowances per employee (million Tk.) 0.76 0.71 0.80 0.78 0.71 0.43
Mr. Ziaul Hasan Siddiqui, Chairman of SBL, inaugurated the Training certificate handed over by Mr. Ataur Rahman Prodhan,
Foundation course CEO & Managing Director of SBL
Annual Report 2020

YEAR OF EXCELLENCE
Training and Development Last but not the least, to enhance the knowledge and skills
of the employees of the Bank, there is a central library which
The Human Resource Development Division (HRDD) of is located at the 7th floor of Sonali Bank Limited, Head
Sonali Bank Limited took necessary initiatives to impart Office, Motijheel, Dhaka. The library is enriched with 10,988
fundamental knowledge as well as the latest developments
books on Banking, Foreign trade, Computer, Management,
and banking rules and regulations to the employees so
Accounting, Commercial and industry law, Agriculture and
that they could understand the customer’s demands and
industry finance, Economics, Religion and literature and
deliver prompt and efficient services. To make the above
goals successful, SBL has one Staff College in Dhaka and other contemporary books and journals. Various foreign
six training institutes across the country. Apart from these journals like the Economist, the Times, the Newsweek, the
institutions, training programs and workshops for the Reader’s Digest and other famous local and international
employees were carried by Bangladesh Institute of Bank journals and papers are available at the library. In 2020, total
Management (BIBM), Bangladesh Bank Training Academy One thousand books bought on various topics.
(BBTA), National Academy for Planning & Development
(NAPD) and other organizations throughout the year 2020.
Employee’s perks and privileges
The number of courses and trainees undergone various SBL is very sincere to the welfare of its employees. In 2019, the
training programs during 2016 to 2020 are presented in the Board of Directors of the Bank approved 3 (three) incentive
following table: bonuses- each equivalent to “Basic Salary”, recreation leave
along with one month basic salary for every three years
Year Number of courses Number of trainees after of service to all of its permanent employees. Provident
fund facility, gratuity fund, death cum retirement benefits,
2020 266 7,152
leave encashment, two festival bonuses, bangla new year
2019 796 12,775 allowance, employee house building loan scheme, motor
cycle loan scheme, car loan scheme for the executives,
2018 709 11,133 computer loan scheme, recognition and monetary award
for brilliant results by the children of the employees, children
2017 730 11,822
education allowance, honorarium for passing Banking
2016 578 10,867 Diploma examination are provided to the employees.
In 2020, 5(Five) officials participated various foreign training/ Occupational health, safety and
workshops/seminars organized by renowned global environment
organizations. Some of those are: The Board and the management of SBL sincerely believe in
1. Dun & Bradstreet South Asia Middle East Limited, safety, health security at work place that is a prerequisite for
Colombo, Sri Lanka. sound state of mind of employees for delivering satisfactory
services to the customers. That is why SBL takes necessary
2. State Bank Institute of Leadership (SBIL), West Bengal,
actions for ensuring healthy and safe workplace for the
Kolkata, India
employees. All the branches, regional offices and divisions
of head office are well decorated having sufficient open
spaces. A team with logistics supports and services headed
by Chief Security Officer (CSO) is especially assigned to visit
regularly monitoring cleanliness, safety measures and others
applicable at every branch. In order to ensure the sound
health of the employees, a team of experienced physician
headed by the Chief Medical Officer is working both home
and oversees branches for free medical services as and
when required.
Succession Planning
Sonali Bank Staff College SBL possesses a sound HR policy covering succession
planning to carefully avoid the problems of leadership
vacuum under any circumstances. We have also developed
a more robust and efficient approach to our succession
planning, better aligned to global best practices. This enables
us to make the most of our existing talent and strengthen
our business continuity. The HRD Division has formulated
and implemented an efficient succession planning for
professional employee management. Various trainings and
workshops on managerial and leadership skills are imparted
to the employees so that it can be ensured about the
availability of experienced and competent employees who
Bangladesh Institute of Bank Management are prepared to assume responsible roles.
178
REPORT ON HUMAN RESOURCES
Human Resource Accounting the decisions involving the recruitment, development,

compensation and replacement of human resources on
Human Resource Accounting is the process of identifying
and reporting investment made in the human resources of a value for money can be taken accurately. SBL regularly
an organization. It is done to furnish the value information for follow-up and looks into some important areas of Human
making proper and effective management decisions about Resource Accounting for mathematical and co-relational
acquiring, allocating, developing and maintaining human understanding on the main business factors. The total value
resources in order to achieve cost effective organizational of Human Capital has been ascertained by present value of
objectives. Soon after the recruitment and the process of
future earning model (Lev and Schwartz) at Tk. 215,667 in the
making the officers competent by imparting adequate
training, Human Capital Accounting (HCA) is done so that year 2020 and Tk. 220,130 in 2019.
The following table projects the age-group wise value in 2020 and 2019.
Grade 2020 2019
Per Capita Value
Age Group No. of employees Total Value No. of employees Total Value
18 yrs-29 yrs 3.70 3262 12069 3577 9837
30 yrs-39 yrs 10.15 8742 88731 7528 72795
40 yrs-49 yrs 13.55 2591 35108 3564 47294
50 yrs-59 yrs 18.45 4323 79759 4940 90204
Total 18918 215667 19609 220130
Reward and Motivation distribute the manpower of SBL, the HRD Division has
taken initiative to update the organogram which will
Sonali Bank Limited has a strong culture of rewarding and ensure fair distribution of manpower throughout its
motivating the employees such as Best Manager Award, branches and offices.
Letter of Appreciation for outstanding performance, financial
reward for classified loan recovery, fulfilling deposit and II. To bring performance measurement and perform
profit target etc. The meritorious children of the employees ensures that it has a right number and kinds of people
are awarded Chairman’s Award, MD and CEO’s Award and at the right places at the right time capable of effectively
and efficiently completing assigned task to achieve its
General Award for bright performance in SSC and HSC
organizational objectives. SBL has also a HR Plan which
examinations. Various financial honoriums are given to the
aims at ensuring optimal employment and justified
employees for innovative products generation and passing
distribution of manpower throughout its branches and
Banking Diploma examination.
offices as per organogram. To simplify the prevailing HR
Our Priorities for 2021 practices adopting the modern technology and best
practices SBL is set to review the existing policies.
I. One of the plans in 2021 is to train up the employees
on our refreshed Position Statements. The HRD Division III. To bring performance measurement and performance
is planning some effective processes by which our based incentive related activities of HRM;
employees can easily cope up with the Core Banking
IV. Training need analysis and process development;
Solutions (CBS) and can bring pace in banking activities.
There is a massive plan to introduce technology and V. Preparation of training and development roadmap;
digital education modules for developing prompt and
VI. Improvement of service benefits;
dynamic service. Training modules related to BASEL-III,
employee tax, green banking is to get priority. SBL has VII. Improvement of HR policies and procedures;
also a HR Plan which aims at expanding its business
area and creating more employment opportunities. To VIII. Adoption of HR Accounting System.
Annual Report 2020

YEAR OF EXCELLENCE
REPORT ON
FINANCIAL INCLUSION
Financial inclusion means providing facilities to access of z Access of all households to a full range of
the un-banked people and firms to the range of financial financial services at a reasonable cost and
services timely and also adequate credit for low income time.
people at a reasonable cost. For overall economic growth
z Extension of banking services and products to
and sustainable economic development, financial inclusion
plays a vital role in achieving goals of the government in any un-banked and underprivileged people.
developing country. As a developing country, most of our z Being responsive and support quickly to the
poor, illiterate people and also people of remote area lack government’s growth strategy and Bangladesh
access to financial activities like savings, credit, insurance Bank’s policy.
etc. Unbelievable that these people are still remained un- z Include different classes of people through
banked at the age of 21st century which is called the age introducing new products.
of information technology. So, we have a large scope
z Financing in agriculture, SMEs and environment
to embrace the wide range of un-banked people to the
mainstream of regular banking operations. According to the friendly activities.
recent development theories, the greater financial inclusion z “School Banking” is introduced to make the
we have, the better positive impact on the lives of the poor habit of savings by the students of school from
and disadvantaged segment can be achieved. their early age.
An inclusive financial system thus indicates that appropriate z Financing higher education and overseas
financial inclusion is multi dimensional in nature offering employment to take the country ahead in the
quality financial services in a convenient way, extending near future.
access to all segments of the population with equal z Good governance by clear regulation and
opportunities and reducing inequalities in an economy. industry performance standards.
Being the largest commercial Bank, Sonali Bank Limited is z Financial and institutional sustainability to
also offering diversified products to attract the people of
ensure stability and certainty of return of
different cultures and testes in line with Bangladesh Bank
guidelines. investment.
SBL’s goal for financial inclusion Status of financial inclusion in SBL

To ensure steady and fair economic growth by a wide range Sonali Bank Limited is the leading bank by progressing
of financial inclusion, following prior policies has been successfully towards the goal of its financial inclusion
developed. program. Some of these are as follows:
Number of Accounts Till Number of Accounts Till

Sl.no. Name of program
2020 2019
1. Farmer’s Account 15,90,734 1,554,737
2. Social Safety Net 28,85,656 2,626,563
3. Freedom Fighters A/C 2,43,011 228,715
4. School Banking A/C 1,12,106 64,402
5. Small Life Insurance Program 18,748 19,815
6. RMG Sector A/C 347 795
7. Others A/C 2,91,153 973,601
Total 51,41,755 5,468,628
Farmers account higher deposit rate and free of maintenance charge or

service charge. Moreover, a deposit product named “Sonali
As agriculture is the lifeline of our economy, government
Krishak Shanchay Scheme (SKSS)” of Tk. 50, 100 & 200 at
gives highest priority for the facilities of the farmers. Sonali
Bank Limited has absolute support towards the development a compound interest rate of 9% has been introduced for
program of the government. In SBL, farmers can open farmers. As a result, total number of farmers account stood
a saving account with an initial deposit of Tk. 10.00 at at 1,590,734 in 2020.
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REPORT ON FINANCIAL INCLUSION
Social Safety Net Program z Provides credit facilities to SME entrepreneurs,

agricultural and other rural and urban farm
Sonali Bank Limited is the pioneer of implementing the Social and non-farm productive activities throughout
Safety Net Program which targets at taking the un-banked the country.
people of the society under the gigantic branch coverage of z For the physically and mentally disabled people,
the Bank through its diversified products to meet the needs SBL has taken comprehensive programs.
of the people. Number of accounts under this program was
2,885,656 in 2020 which was 2,626,563 in 2019. Recent steps taken by SBL
Freedom Fighters Account SME Women Entrepreneur’s Development Unit has been set
up at Head Office and all field level Controlling Offices of
SBL takes pride of being a helpful hand of the Freedom
this Bank.
Fighters of the country as they are the hero of our Liberation
War, 1971. The Freedom Fighters get special allowances z Necessary guidelines have been issued to
from the government through this Bank. Moreover, the Branches/ field level controlling offices for
Bank offers loan facilities with a lower interest rate. As per disbursement of Cluster based SME Loan.
December 2020, the total number of Freedom Fighters z Introduced Online Banking, Any Branch
account was 243,011. Banking and SMS Banking to attract every
School Banking class of people.
z Successfully launched projects named
To make the habit of savings by the students of school and “BICYCLE LOAN”, “Adarsha Gram Karmashuchi”,
college from their early age, Bangladesh Bank introduced
z “UNMESH”, “JAGO NARI” for the students, poor
“School Banking” guidelines. As per BB guidelines, Sonali
farmers and female entrepreneurs respectively
Bank Limited has come forward with all out effort to make
with easy terms and conditions.
this program successful. The account holders of this
z Relax the policies for the un-banked poor and
program get better interest rate. Till the end of 2020, total
School Banking account stood at 112,106.
disadvantaged people.
z Agricultural credit policies have been relaxed
Others for stimulating financial inclusion.
As a part of financial inclusion, SBL has facilities to open z Farmers account opened with Tk. 10.00 are
account for other sections of the people such as (a) Hindu encouraged with higher interest rate and free
religious welfare trusts, destitute people affected by cyclone of maintenance charge or service charge.
Aila, employment program for the very poor, rehabilitation z Government subsidies are channeled to
program under Ministry of Religion and Cleaners of Dhaka the landless and poor people through these
North and South City Corporation, (b) Small Life Insurance accounts.
Program and (c) RMG Sector. z Introduced different deposit schemes and
credit facilities to include different classes of
Fair
people.
To create awareness among people about the products and z Financing higher education and overseas
services of financial sector, to introduce banking services employment.
at national level and to make the people banked this bank z Going to launch project for daily and
participated in various fair in 2020. construction labours.
Loans and Advances: The poor and simple people of our country are engaged
SBL’s agricultural credit policies for the farmers have been mostly with different microfinance institutions or co-
relaxed for a sustainable financial inclusion to impose a operatives. As they are not entertained with banking facilities
greater impact over our economy. The Bank successfully around them, they are not satisfied in their transactions with
launched projects like “UNMESH”,”JAGO NARI” for the those institutions. SBL is trying to cover the major portion
poor farmers and female entrepreneurs. Besides these, a of these people under the umbrella of formal banking
new product named “BICYCLE LOAN” upto Tk. 15,000/- at practices by taking different policies of inclusion. A wide
a simple interest rate of 9% for the students of Class-6 to ranging plan has been undertaken to connect the overseas
Class-10 has been launched successfully. employees with their relatives living in the country so that
Role of SBL in enhancing financial inclusion people at villages can come in contact with the mainstream
of banking and thus the reserve of foreign currency increase
z Being the helping hand of the Governments
satisfactorily. Therefore, to make the growth of our economy
inclusive growth strategy, SBL has taken
more inclusive and sustainable, SBL’s policies are targeting at
financial Inclusion as utmost priority for
creating employment opportunities and thus accelerating
accelerating economic growth.
z SBL has extended lending to the under-served/ the income of the people to keep the machine on of our
un-served economic sectors. economy.
Annual Report 2020

YEAR OF EXCELLENCE
CUSTOMER
CARE
Customer service has great significance in banking industry. get agricultural loans from all of our rural branches at a
A customer can be defined as a potential user of bank low interest rate. They deserve it because they have made
services. So, a customer can be defined as: our country food-sufficient and saved foreign currency
through reducing the demand for food import. SBL has
1. A person or entity that maintains an account or has a
243,011 accounts of the freedom fighters as a result of given
business relationship with a bank or without having an
emphasis on the freedom fighters. The freedom fighters are
account maintains a relationship with a bank.
also getting special loan facility upto Tk. 300,000. The Bank
2. One on whose behalf the account is maintained. also delivers the services of govt. allowances to different
levels of the destitute people.
3. A person or entity connected with a financial transaction
and Service standard
4. One who have different motives for coming into the Customer relationship management is the most efficient
bank i.e. to make a query or others. approach in maintaining and creating relationships with
In the course of daily business transactions, a banker comes customers. Development of this type of bonding drives the
in contact with quite a number of people who come to business to new levels of success. Service standard maintains
deposit money or to cash cheques or to avail loan facility a level of consistency that allows both side standings and their
or for any inquiry. Some of these people maintain subsisting expectations. It is worth mentioning that service standards
relationship with the bank, while in some cases it is a one off alleviate uncertainty from the process and provide clients
affairs perhaps never to be repeated again. with a set of commitments that can be referred to while
evaluating an organization’s performance. Organizations,
Branch network and products exceeding these standards, obtain client satisfaction, public
perception and overall service performance. The behavioral
Sonali Bank Limited (SBL) has been engaged in wide range of relationship is important from the view point of responsibility
services through its 1224 branches inside the country to cater and humanity, particularly for the customers who do not
the needs to all classes of people. Only SBL has branches maintain account with the bank but buy miscellaneous
in every upazilla of the country to take banking services to services like Demand Drafts, Mail Transfer of money or
the doorsteps of common people. The Bank has introduced payment of electric bill, gas bill, opening and renewal
the highest number of products to meet the ever increasing of various licenses, passport fees etc. SBL delivers these
demands of the people. services with good manners, courtesy, kindness, sympathy
and co-operation. By helping to solve a customer’s problem,
Implementation of Inclusive policy undoubtedly makes a good impression on the customer that
SBL has the highest number of accounts under the financial adds competitive advantage to the Bank. As a result of better
inclusion policy taken by Bangladesh Bank and focuses service standard, SBL’s non-funded income is increasing day
on the majority of our population including the farmers, by day.
the freedom fighters and under-privileged people of the
society. The Bank gives special attention to the farmers Sonali eSheba and Sonali eWallet
by giving opportunity to open a bank account at the cost During the COVID 19 pandemic in 2020, for the welfare
of Tk. 10.00 without any service charge by which they can of the country and the mass people Sonali Bank Limited
avail government assistance in a transparent way. Now, introduced ’’Sonali eSheba’’ through which the clients can
the number of this account stands 1,590,734. They also
182
RELPORT ON CUSTOMER CARE
open accounts even from their home. Continuously the has been redesigned. Written complaint can
bank introduced ’’Sonali eWallet’’. This wallet helps the be dropped at branch complaint box, by
clients to make transactions to any accounts, pay the bills calling at the number of the Bank’s complaint
and taxes etc. centre which is 9586431, fax no-7115519
and through Bank’s email address which is:
Digitalized banking [email protected]. All complaints
Keeping pace with the present digitalized world, SBL has are lodged and actions are duly taken. Bank
introduced Core banking system, Mobile banking, SMS has mandated and has been able to redress
banking, Online Any Branch Banking (ABB), RMS plus etc. to a majority of the customer grievances within
make the operations more efficient which is subsequently the shortest possible time. All ATM related
improving our service to the valued customers and clients. complaints of Bank customers are redressed
We are integrating our IT systems and simplifying automation within the Bangladesh Bank prescribed time.
to increase efficiency, ensure a healthy environment and
free up our frontline staffs. This enables them to spend more
time with our clients and customers. Digitization has also Bangladesh Bank
allowed us to simplify our application and documentation Hotline for customer’s complaint:
processes, making it easier and faster for new customers Head Office:
to open an account with us. Core Banking Solution (CBS)
Dial 16236
software has been implemented in 1,224 branches to
Fax : 0088-02-9530273
integrate the activities, ease the banking functions, prevent
E-mail : [email protected]
fraud and forgery and above all better customer service.
Products proposition strategies

Sonali Bank Limited invests in product propositions and
digital capabilities across our brands and divisions, to deliver
Customer Friendly Initiatives
the products to our customers need through the channels During 2019-2020, due to COVID 19, slow investment/
they prefer, while improving efficiency and customer consumption, constrained food production, high inflation,
service. The Bank invested in products and services for our distress in several industry and infrastructure sectors such
customers, while further reducing costs and improving as textile, chemicals, iron and steel, food processing,
efficiency through our simplification program. construction, telecom etc. affected the growth of our
economy. Major initiatives were taken by the Bank towards
Front desk customer service catalyzing investment and growth, to facilitate the flow of
credit to critical sectors of the economy including agriculture,
SBL is always concerned the needs, demands and priorities
infrastructure, micro, small and medium enterprises, housing
of customers. To make their banking easy with us, there is a
and exports to reduce customer distress/pain points and
front desk customer service system to provide information
to raise the level of customer satisfaction. These initiatives
and supports.
include:
Customer Service
Process innovations
Our vision unambiguously spells out the centricity of the
customer in the Bank’s business strategies and operations. z Relationship management platform was
A multi-tiered structure of committees is constantly strengthened across business verticals-
reviewing existing services and suggesting improvements. Accounts Management teams for corporate,
Important issues raised by these Committees and action premier banking services for high net worth
taken thereon, as well as analysis of the consolidated data customers, relationship managers for SMEs.
for customer grievances for all circles are placed before the z Touch-points with customers were expanded
Customer Service Committee of the Board every quarter, through opening of branches and increasing
to identify common systemic and policy issues that require Customer Service Points, BC outlets in remote
rectification. The Bank has a well defined and documented areas.
Grievance Redressal Policy which provides for: z Cluster models were introduced at all currency
z A complaint box has been set in every branch chest branches for efficient cash management
of our bank so that any aggrieved customer at semi-urban/rural areas.
can complain in a written document which
Technology upgrades
would be addressed by the managers and
high-ups. SBL has taken initiatives to bring all its branches under core-
z According to Bangladesh Bank guidelines, banking system. With this end in view, Sonali-Polaris, a Indian
there is hotline for customer’s complaint sophisticated and upgraded core banking software (CBS) has
address which is displayed on the visible place been adopted and all branches are now in the process of
in every branch. The display contains the conversion to it in the course of time. SBL has brought 1222
following information: (100%) branches under CBS program.
z Bank’s Head Office based Complaint cell
Annual Report 2020

YEAR OF EXCELLENCE
z ATM : At present, the Bank has 125 ATM Help desk and Women entrepreneur desk
booths. Sonali Bank’s ATM cardholders enjoy
the access to the ATMs and POS all over To extend support to the customers and especially to
the entrepreneurs, there is a help desk and a women
Bangladesh. SBL has recently launched VISA
Credit Card, Debit Card and prepaid card for entrepreneur desk in every branch. The functions of these
tax payment. The Bank introduced co-branded desks are to assist the customers by providing necessary
ATM services with Bangladesh Post Office. information.
z Online and SMS Banking: At present, 1224
branches of SBL are included in the Online Foreign Remittance
Any Branch Banking (ABB) network. SMS
SBL’s own in-house software “Remittance Management
Banking service is running in 1224 branches.
The Bank is seriously working on connecting System Plus” (RMS+), having the feature of paying foreign
all branches in the Real-time Online Banking remittance instantly over the counter, is being implemented
network gradually. at all branches. This web based software provides digital
z BACH: BACH minimizes fraud and forgery, services to the expatriates through its unique advantage
reduces cheque carrying and clearing cost as of sending confirmation message to the mobile phone of
well as payment processing time dramatically.
the remitter/beneficiary. The Bank has also arranged to pay
It also ensures faster and secured payment
and settles payment of all cheques of whole foreign remittance through Western Union, Transfast, IME
country under a single head of the Bangladesh Malaysia, Express Money.
Bank. With a view to making clearing activities,
Bangladesh Automated Clearing House
Islamic Banking
(BACH) has been setup at Local office of the SBL is giving priority on Islamic Banking because of its recent
Bank. Clearing activities in automated system popularity in the banking sector. Islamic Banking Division of
are executed through BACPS (Bangladesh
the Bank, is running its business succesfully in 58(fifty eight)
Automated Cheque Processing System) from
this centre. Fund transfer activities from all branches of the Bank.
branches of the Bank with other banks are Citizen Charter
being operated through Bangladesh Electronic
Fund Transfer Network (BEFTN). To ensure proper customer service, citizen charter has been
hanged on the wall at the visible place of customers at Head
Online CIB services
Office and branches as per the directive of the regulator.
To create a disciplined environment for borrowing, the
By reading it customers can be well aware of the services
automated CIB service provides credit related information
for prospective and existing borrowers. With this improved and products that the Bank is supposed to render to its
and efficient system, risk management will be more effective. stakeholders.
SBL furnishes credit information to CIB database 24/7 round
the year; and they can access credit reports from CIB online.
184
RELPORT ON CUSTOMER CARE
CITIZEN CHARTER
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 (SBS),
Deposit Account
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.
Inland and Foreign
A web-based software named Remittance Mangement System Plus (RMSplus), developed in

Remittance house, has been deployed at 1224 branches for receiving 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
Receipt of Utility Bill
Company, Gas 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
Loans and Advances Loan, Consumers Credit, Special 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
Interest Rates on
charged on General Advances, Agricultural Loan, Rural Credit, Micro Credit, Agro-based Industrial
Loans and Advances
Loan, Other Industrial Project 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
Social Responsibilities for disabled students, allowances for distressed disables, honourarium for freedom fighters,
rehabilitation program 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
Government
732 nominated branches of the Bank. Besides, payments are made against Govt. cheques and
Transactions
bills in 480 branches among the said branches of the Bank.
At present, a total of 1224 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
Plans for established to implement Online Real Time Core Banking (ORTB) in the Bank. Any Branch
Computerization Banking (ABB) at 1224 branches and SMS banking started at 1224 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
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 collection, receipt of money for Hajj, receipt of
Other Services 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.
Annual Report 2020

YEAR OF EXCELLENCE
REPORT ON
CORPORATE
SOCIAL
RESPONSIBILITY
(CSR)
Sonali Bank Limited as a leading state owned commercial bank in the country has been playing an important role in
implementing social and philanthropic programs to help disadvantaged people of the country. Our corporate responsibility
programs and initiatives support the bank’s strategy to deliver balanced and sustainable outcomes for our customers,
community and people. Sonali Bank believes that it has a solemn duty to make sustainable social change in the lives
of the less fortunate and underprivileged members of the society. Our bank always places the interest of the common
man, especially the most marginalised, at its core. Its CSR activities are widespread and deep-rooted and have made true
difference in the lives of thousands from the underserved and downtrodden communities. CSR is a continuing commitment
of our Bank for developing the quality of life of the community and society as a whole.
Its fields of activities here cover from education to health to infrastructure development both in urban and remote rural
areas. The Bank extends stipends to students of SSC and HSC level as well as higher studies such as medical or engineering
discipline selected on the basis of merit to help to pursue their academic career so as to enable them to grow up to serve
the nation with their knowledge and expertise in the future. Sonali Bank also contributes to the construction of educational
institutes and Clinics and extends help in procuring apparatus for treatment in different hospitals and similar organizations.
During winter seasons, the bank distributes blankets to cold hit people under its CSR programme. Besides, it has extended
assistance to numerous organizations to create awareness on issues pertinent to social advancement.Sonali Bank Limited
has donated Tk. 19.00 million in the year 2018, Tk. 47.60 million in the year 2019 andv Tk. 19.00 million lac in the year 2020
under corporate social responsibility to different persons and organizations. The amount of CSR disbursement in last three
years are given bellow:
Year wise contribution

Category Total
2020 2019 2018
Education 9.30 9.80 3.80 22.90
Health 5.90 13.20 6.50 25.60
Rural Infrastructure Development - 0.50 0.30 0.80
Disaster Management 1.20 10.00 5.00 16.20
Sports - 0.10 - 0.10
Literary, Art and Cultural activities - 0.20 - 0.20
Social Welfare 2.30 10.50 3.40 16.20
Research and Development 0.30 - - 0.30
Environment - - - -
Capacity Building - - - -
Development of Underprevileged people, Environment e.t.c - 3.30 - 3.30
Total 19.00 47.60 19.00 85.60
186
REPORT ON CORPORATE SOCIAL RESPONSIBILITY(CSR)
GOVERNMENT TRANSACTIONS
AND WORKS RELATED TO SOCIAL
RESPONSIBILITY
Sonali Bank Limited the largest state owned commercial bank of Bangladesh since the war of liberation has been launching
various innovative financial activities relate to self-reliance that leads to national development. Now, Sonali Bank works
side by side with present Government for successful implementation of MDG and SDG along with ongoing Digitalization
Program.
Sonali Bank is the only scheduled bank in Bangladesh that accomplishes treasury functions with its 732 Government
nominated branches alongside Bangladesh Bank having been so authorized vide Treasury Rules. Besides, all sorts of
Government payments and receipts in the style of cheques and bills are taken place by this bank and reports its thereof to
the Bangladesh Bank and CGA. At present, Government nominated branches for treasury functions is 732. The total turnover
takes place in 2020 are amounting to the tune of Tk. 36,22,370.80 million.
Moreover, Sonali Bank in consideration of Corporate Social Responsibility works in the midst of socially & economically
disabled and destitute masses of the society viz old aged, widow, divorcee, insolvent allowances in the style of paying
subsidies in accordance with the direction of Government. The apex portions of the 41 subsidies disburse without financial
consideration. The bank also embellish with making pension payment to the civil and military officials. It is to be noted that
Sonali Bank is committed to ensure fast and smooth services to its clients and stake-holders by rendering quality services
to every nook and corner of the country. Bank also performs treasury functions through GTS software in all of its 732
Treasury Branches. It is also to be noted that a new GTS software are being developed with a view to deposit the chalan
in online whereby a depositor from any place or from any bank at his own will and be benefitted thereof. Sonali Bank now
provides a new gateway to the Police department for updating Police Verification in real time. To ensure transparency and
accountability, Sonali Bank recently introduced “Online Chalan Verification” through web portal www.cga.gov.bd from any
place of the world. It is a pleasure to express that all socially committed allowances are being computerized and are to be
disbursed through online to the selected beneficiaries in a very recent days.
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-2 108
03 Mymensing 108
04 Sylhet 108
05 Comilla 108
Indicates District Total Number of Branches
06 Chittagong 108 Indicates GM Headed Branch (3 in Dhaka City)
07 Barisal 108
08 Khulna 108
1. Local Office
09 Dhaka-1 108 2. Bangabandhu Avenue Corp.
10 Dhaka-1 108 3. Ramna Corp.
11 Dhaka-1 108
TOTAL 1226
Annual Report 2020

YEAR OF EXCELLENCE
CONTRIBUTION
TO NATIONAL ECONOMY
Financial Support in Industrial, SMEs, Agro and other sectors
With a view to achieving economic goals and accelerating the pace of industrial development through implementation of
government policies, SBL has sanctioned loans for establishment of new industrial units and also for expansion (BMRE) of
existing potential units to expand the industrial base in the country. The Bank has thus created employment opportunities
by sanctioning the above loans to various industrial units in the year 2019 which will contribute towards GDP growth. The
Bank extended term loans and working capital to different producers, business people and service providers under SME
financing. As per Bangladesh Bank’s instruction, Sonali Bank Limited has been providing Agricultural/Rural Credit among the
rural farmers ranging from 4% to 10% with simple interest rate. The Bank has been trying its best to provide funding support
to micro-credit sector for poverty alleviation, self-employment generation and rural economic development. At present, as
many as 24 projects/programs aimed at alleviating poverty are being run by the Bank.
Contribution to National Exchequer
Sonali Bank Limited plays an important role in assisting the Government in revenue collection. The Bank pays tax and value
added tax (VAT) on its own income. Besides, SBL collects income tax, VAT, tax at source from clients and suppliers and
deposits the same to the national exchequer. During 2020, the Bank deposited a total of Tk. 12,227.10 million as advance
tax, tax at source and VAT to the national exchequer which was Tk. 7,956.60 million in 2019. In 2016, Sonali Bank Limited
has been awarded one of the “Highest Tax Payers” in banking sector by National Board of Revenue (NBR) for the assessment
year 2015-16.
Sl. Particulars 2020 2019

01. VAT on Commission 628.82 850.08
02. VAT on Rent on bank building 72.24 62.49
03. VAT on Various Expenses 109.96 134.86
04. Source tax on L/C commission 89.22 54.12
05. Source tax on buying house commission 109.26 14.39
06. Source Tax on Interest paid by bank 6531.07 3058.81
07. Source Tax on Cash subsidy on export 107.57 65.10
08. Source Tax on Neat & Garments Export 107.49 103.43
09. Source Tax on other than Neat & Garments Export 5.58 34.29
10. Excise duty 1573.82 1238.14
11. Employees tax 86.49 103.88
12. Tax deducted at source 2394.97 1736.08
13. Advance tax paid 500.00 500.00
14. Tax paid on car 1.31 0.93
Total 12227.10 7956.60
Financial Inclusion
With a view to assisting the government in accelerating financial inclusion program, SBL is working relentlessly to bring
simple, poor and unbanked people under the coverage of banking system with it’s enormous branch network in rural and
urban areas. Total number of accounts under financial inclusion program stood at 5,141,755 in 2020.
Salaries to Staff
Till December 2020, the number of total employees of Sonali Bank Limited was 18,918. Tk. 14,424.17 million was paid to the
employees as salaries and allowances and from the salaries, Tk. 86.49 million was paid as income tax from the employees.
Green Economy
Complying with Bangladesh Banks’ green banking policy, SBL is financing environment friendly projects named renewable
energy projects, clean water supply projects, waste treatment plant, solid waste disposal plant etc. to ensure ecological
balance. For indirect Green Finance, Bank is funding such projects which have ETP and Solar Panel. “Sonali Alo” is the
Bank’s initiative intended to align its efforts with the initiatives being undertaken by both public and private sectors. In 2020,
Sonali Bank Limited directly financed Tk. 75.40 million in various projects. Moreover, CBS has been installed in all 1,224 local
branches of the Bank.
188
CONTRIBUTION TO NATIONAL ECONOMY
Annual Report 2020

YEAR OF EXCELLENCE
MANAGEMENT
DISCUSSION
AND ANALYSIS
Global Economic Situation down the robust economic growth of Bangladesh in the
just concluded fiscal year. But it is a matter of optimism
The coronavirus (COVID-19), which has emerged as a that foreign exchange reserve of Bangladesh has increased
global pandemic, poses a major risk to the global economy. remarkably during this world economic recession. All the
Protecting lives and allowing health care systems to cope central banks in the world maintains foreign exchange
with required quarantine, isolation, lockdown etc. have reserves as asset reserve to tackle financial disaster
severely limited economic activity resulting the global management, import payments, safeguard against local
economy is anticipated to contract in a much worse way currency devaluation, strengthen monetary policy, budget
than during the 2008-2009 financial crises. In the World implementation maintaining confidence in the market,
Economic Outlook (WEO) April 2021, International Monetary to supply funds in large development projects, to ensure
Fund (IMF) projected that the global economic growth foreign debts payment. In respect of foreign exchange
would contract sharply by 4.4 percent in 2020 and grow reserve, at present Bangladesh stands 44th in the world and
by 6.0 percent in 2021 as the economic activity normalises, 2nd in South Asia.
helped by policy support.
By placing highest priority to the lives and livelihood, health
At present, the risk factors of world economy are: worldwide security, employment, commerce and trade, investment and
pendamic due to COVID 19, crisis in global business, rise agriculture, an amount of Tk. 6,03,681.00 Crore budget has
in food and commodity prices and sluggish economy been passed for the fiscal year 2021-2022. According to the
in Euro area for a long time. In advanced economies, the data of Bangladesh Bureau of Statistics (BBS) though the
consequent stagnation of economic activity has led to a GDP growth rate reduced to 5.24 percent in FY 2019-2020
slowdown in economic growth. Among emerging markets than the previous year, the GDP growth rate has increased
and developing economies, all countries face a health crisis, to 6.10 percent in FY 2020-2021. The GDP growth rate is
severe external demand shock, tightening in global financial projected to be 7.2 percent in FY 2021-2022.
conditions, and a plunge in commodity prices, which will
have a severe impact on economic activity in commodity According to the provisional data of BBS, among three broad
exporters. In addition, oil exporting countries will face sectors of the country, the growth of agriculture sector was
problems as the falling of oil prices. 3.11 percent in FY2019-2020 which was 3.92 percent in the
previous fiscal year. During the same time, the growth of
Turning the global economy around in 2021 depends on industry and service sectors stood 6.48 percent and 5.32
how quickly the pandemic can be brought under control percent respectively which were 12.67 percent and 6.78
and build consumer and investor confidence. To this end, percent respectively in the previous fiscal year. In FY2019-
countries are implementing various financial and stimulus 2020, the contributions of agriculture, industry and service
programmes to revive the world economy by improving the sectors were 13.35 percent, 35.36 percent and 51.30 percent
health system and by providing public health services. But respectively which were 13.65 percent, 35.00 percent and
it may fade over time as the vaccine coverage will expand 51.35 percent respectively in the previous fiscal year. Per-
everywhere by the end of 2022. capita GDP and income stood USD 1970 and USD 2227
respectively in FY 2020-2021 which were USD 1828 and USD
Bangladesh Economic Scenario 2064 respectively the previous year
During the last decade, Bangladesh has witnessed GDP To achieve higher growth, inflation control is considered
growth rate from 6 per cent to 8 percent consistently. The as one of the major challenges. The inflation rate stood
global novel Corona Virus (Covid-19) pandemic has slowed 5.4 percent in FY2020-2021. Due to coronavirus (Covid-19)
190
MANAGMENT DISCUSSION AND ANALYSIS
pandemic induced effects, the global economic activities 33.67 Bn in the previous fiscal year. While the total imports
have slowd down. As a result, inflation has decreased world- stood USD 58.63 Bn during July 2020 to May 2021 which
wide. Due to this global pandemic, disruptions in food was USD 49.98 Billion in FY 2019-2020.
production and supply caused may increase of inflation in
Bangladesh has achieved an outstanding development
the upcoming days. In this perspective, as the overall inflation
in poverty alleviation during the last decade because of
in Bangladesh dominated by food inflation, economists
successive all-out endeavours of the government and
suggest that special attention is required to offset the food
the execution of multifarious development activities
inflation.
of government and non-government organizations. In
To tackle the economic recession, to ensure sufficient order to attain the desired targets of poverty alleviation,
liquidity in financial sector, Bangladesh Bank cut repo rate the government provides special priority in social safety
from 6 percent to 5.25 percent. The central of the country net programs. For this purpose, Bangladesh has already
also cut cash reserve requirement (CRR) from 5.5 percent to formulated ‘National Social Security Strategy (NSSS). A
4.5 percent on daily basis and 5 percent on bi-weekly basis in total of Tk. 1,07614 crore has been allocated against social
the first phase and again slashed down the rate to 4 percent safety net in FY2021-2022 which was Tk.95,574 crore in FY
where banks have to maintain 3.5 percent on daily basis 2020-2021.The allocated amount is 3.11 percent of total
and 4 percent on bi-weekly basis in second phase. Besides, GDP of FY2021-2022. The poverty and malnutrition rates
Bangladesh Bank has increased the advance deposit ratio are projected to decline to 9.7 percent and 10 percent
(ADR) and Investment Deposit ratio (IDR) by 2 percent to respectively by 2030. Besides, the government is working
87 percent and 92 percent respectively so that banks can on achieving sustainable development targets in health
improve the liquidity position and simultaneously facilitate sector and sufficient allocations have been kept to human
private sector credit facility. development related sectors like education and technology,
health and family planning, women and children, culture,
Due to the effects of world-wide outbreak of coronavirus
labour and employment.
pandemic, trade dispute between China and USA, slump in
oil price, the pace of the world trade got slow down from To keep the country’s economy afloat in the face of the
the very beginning of 2020. As a consequence, the foreign ongoing pandemic, the government has announced
trade of Bangladesh has also slowed down marginally. But stimulus packages where special fund for export oriented
with the onset of 2021, the pace of world trade has bounced industries, working capital facility for affected industries and
back. service sectors, working capital facility for small (including
cottage industry) and medium enterprises, enhancement
The export of processed agricultural products grew by 19.27
of export development fund, enlargement of social safety
percent in FY2020-2021 which was negative 5.16 percent
net and funds for agricultural sector are mentionable. With
due to the outbreak of coronavirus pandemic in FY 2019-
the end in view to overcome probable global and domestic
2020. Income from the export of agricultural products stood
crises arisen due the coronavirus (Covid-19) pandemic, the
Tk.102.81 crore which was Tk.40.27 crore only 10 years back.
economy is expected to turn around through the actions
It can be projected that the demand of the processed foods
taken by the government.
would rise in the upcoming days.
The export of bicycle increased by 58 percent in FY 2020- Banking Sector Situation in Bangladesh
2021 which was 1.66 percent in FY2019-2020. Apart from Banking sector in Bangladesh has been playing an important
this, home textile goods under the sector of textile increased role in promoting economic development of the country
by 49.17 percent in FY 2020-2021 which was 10.90 percent in and extending financial services to the general people. It
FY2019-2020. The export of readymade garments products consists of 59 banks contributing to about 3.0 percent to
stood USD 2856 crore during July 2020 to May 2021 which GDP with 10,286 bank branches in June 2020 has been
was USD 2570 crore in FY2019-2020. showing resilience in the face of vulnerability and instability
Besides, the demand for synthetic yarns was increasing in the world financial system. Out of these branches, about
around the globe much earlier. Being environment friendly, 52 percent are located in the urban areas and the rest in
the demand of synthetic yarn instead of cotton is rising day rural areas in June 2020. But about ten years ago i.e, in June
by day. With the emergence of corona virus that demand has 2010 the situation was just the opposite of this. For example,
boosted further. With this perspective of the global demand, the share of urban branches was 43 percent in that year.
the investment has been increased in this sector. With the The share of urban bank branches increased because of
increasing demand of the brands and client enterprises, creation of new pouroshabhas in the country. The share of
the readymade garments production of artificial yarns has urban deposits and advances which stood at 79 percent and
increased in Bangladesh. 90 percent in June 2020 was 87 percent and 92 percent in
June 2010 respectively.
Due to Covid-19 pandemic, the export of leather and leather
goods stumbled in FY2019-2020 but it bounced back in the Recently, Bangladesh Bank has adopted some prudential
next year. During the past FY 2020-2021 reigned by Covid-19, policies and regulatory measures to help the banking sector
Shoe export stood USD 91.42 crore. According to the 10-year in its quest to attain sustainability. The central bank has
data of Export Promotion Bureau (EPB), the export proceeds also renewed its emphasis on risk management operations
were USD 33.55 crore. in banks, periodic review of stability of the individual bank
within the gamut of the whole banking system, doing
Total export earnings in FY2020-2021 stood USD 38.75 Bn exercise on stress testing, monitoring fraud/forgeries in
which was 15.10 percent more than the earnings of USD banks and strengthening internal control and compliance
Annual Report 2020

YEAR OF EXCELLENCE
for ensuring corporate governance in the banking system. Deposit

In addition, emphasis was also laid down on the re-fixation
The total deposit of the Bank as on 31 December, 2020
of educational qualification of CEOs, policy for off-shore
was Tk. 1,258,786.26 million showing an increase of Tk.
banking operation of banks, policy for investment in long
99,998.48 million or 8.63 percent over 1,158,787.78 million of
term infrastructure projects and policy to give incentive to the preceding year. Total deposit comprising current deposit
the good borrowers etc. and other accounts stood at Tk. 242,286 million which
Performance Review of Sonali Bank Limited was Tk. 245,109 million in 2018. As on previous year, fixed
deposits constituted of the main component of the deposit
Significant Achievements at a glance item that was 383,383 million or 33.08 percent of total
deposit in 2019. After fixed deposits, savings deposits stood
The Bank always strives to achieve meaningful financial at Tk. 387,366 million in 2019 which was Tk. 349,044 million
performance. Strong capital base, wide branch network, in 2018 meaning 10.98 percent growth and accounted for
innovative products, quality services, customer satisfaction 33.42 percent of the total deposit. Bills payable of the Bank
and their reliability, support from stakeholders etc. are stood at Tk. 10,910 million in 2019 which was Tk. 13,059
helping the Bank to make significant performance. The million 2018. SBL employs its best efforts to increase the
major achievements of SBL in 2020 are: proportion of low/no cost deposit and to achieve an ideal
deposit mix.
z SBL achieved operating profit of Tk. 21,526.93
million in 2020 which was Tk. 17,100.43 Investment
million 2019. Net profit after taxation stood at
There was a significant change in the investment of SBL. The
Tk. 3,234.35 million in 2020 which was highest total investment of the Bank stood at Tk. 629,691.45 million
among the state owned commercial banks of at the end of 2020 which was Tk. 500,386.89 million in 2019.
the country as against Tk. 2,710.05 million in Major investments were made in the form of Treasury Bills,
2019. Treasury Bonds, Special Bonds, Reverse Repo, Call Loan,
z Total assets of the Bank stood at Tk. Term Deposit, Shares and Debentures etc.
1,591,233.76 million as on 31 December 2020
compared to that of Tk. 1,472,601.35 million as Investment Income
on 31 December 2019. This is to be delightfully Total investment income of the Bank as on 31 December,
mentioned that this is the highest amount of 2020 was Tk. 40,289.94 million against Tk. 28,144.09 million
assets that a commercial Bank has reached of the previous year.
ever.
z The bank is maintaining the uptrend of its Classified Loan and Recovery
deposit successfully. In the reporting year, The amount of classified loan stood at Tk. 107,673.90 million
deposit of the bank stood at Tk. 1,258,786.26 which was 18.37 percent of the Bank’s total loan as on 31
million against Tk. 1,158,787.78 million in 2019 December, 2020. The amount was Tk. 111,993.90 million
with an increase of 5.76%. (20.32 percent of Bank’s total loan) as on 31 December,
z All of its 1,224 local branches are rendering 2019. The amount of recovery against classified and written
digitalized banking services through CBS to the off loan in 2020 was Tk. 10,501.50 million and Tk. 550.10
clients of the Bank. These branches have been million respectively.
operating SMS banking service. Registered Capital Adequacy
customers can get their account transaction
and balance through SMS. As or 31 December 2020, Bank’s Capital to Risk-weighted
z During 2020, the Bank deposited Tk. 12,227.10 Asset Ratio (CRAR) has stood at 10.02% which is 0.02% higher
million as Tax, VAT, Excise Duties, and Source than regulatory requirement of 10.00%. The maintenance of
the regulator’s minimum capital requirement came through
Taxes etc. to the national exchequer which
the prudent management of overall assets of the Bank. As part
was Tk. 7,956.60 million in 2019. of capital management, the Bank emphasized on increasing
z Extended Corporate Governance and CSR rated exposures. Total assets of the Bank increased by 8.06%
activities. in 2020. This is to be mentioned that total assets of the Bank
z Providing real time online banking through crossed Tk. 1.00 trillion in 2015 which set a record in the
Core Banking Software with a world class history of a commercial bank in Bangladesh. In 2016, total
technology platform. deposits of the Bank also crossed the landmark of Tk. 1.00
trillion and in the reporting year, the Bank has maintained the
Analysis of Operating and Net Profit uptrend of the deposit flow.
The total operating profit of SBL stood at Tk. 21,526.93
million in 2020 against Tk. 17,100.43 million in 2019. Whereas
Credit Rating
operating expense was Tk. 21,346.34 million in 2020 which Credit Rating Information and Services Limited(CRISL) rated
was Tk. 19,626.98 million in 2019. On the other hand, net Sonali Bank Limited in their report; they rated the Bank AAA
profit registered at Tk. 3,234.35 million in 2020 against Tk. as With Government Support for long term and ST-1 for short
2,710.05 million in 2019. term. They also rated the Bank A as Without Government
192
Support for long term and ST-2 for short term. The outlook Ecology and Green Banking
of the rating is stable. The rating company performed the
rating surveillance based on Audited Financial Statements Ecology and green banking has become a social awareness
and other relevant information based on 31 December 2019. in the present world. SBL insists on going green to help the
environment through its Online Banking, Mobile Banking
Principal Activities and the idea of socially responsible investment funds for
sustainable project finance activities. Online banking which
Core Banking Solution (CBS) reduces the use of paper and carbon footprint, saving daylight
through proper entrance of sunlight and air which reduce
The Bank has successfully installed Core Banking Solution
the use of electricity. Investment in eco friendly business
(CBS) in all of its 1,224 local branches by using new
projects are important and easy aspect of green banking. A
technologies and innovative services to make banking easier
truly green bank will reduce its carbon footprint by building
and simpler. At present, the Bank takes the pride of being
more efficient premises and branches; implementing more
the largest online bank in Bangladesh. It has also taken
efficient operational procedures to promote sustainable
initiatives to make the Bank totally IT driven and to achieve
banking and increasing their investments in environment
full automation. A web based in house developed software
sensitive industries.
named ‘Remittance Management System Plus” (RMS
plus) has been deployed at 1,224 branches for receiving SBL’s Green Banking practices are connected with both
foreign remittance and receipt and payment of inland/local internal operation and product ecology. Product ecology is
remittance through RMS plus. We are also providing SMS concerned with the impacts of the banks on the environment
Banking, VISA Credit & Debit card facilities, ATMs, Phone used by the clients. Green Banking is engaged in creating
Banking, Q-Cash, Bangladesh Automated Clearing House socially responsible investment funds and sustainable project
(BACH), Bangladesh Electronic Fund Transfer Network finance activities. SBL is concerned with the welfare of its
(BEFTN) to our customers smoothly. employees and customer’s satisfaction, benefits, wages and
the Bank’s environmental standing. The Bank is putting a
SME Financing combined effort on switching to more environment friendly
practices i.e Online Banking, reducing wastage of paper and
The Bank is emphasizing the activities relating to the
electricity, using solar power and energy saving bulb, saving
promotion of sustainable economic development and
day light during office hours and being more conscious
taking keen interest for providing overall service with
about employee travel policies.
the coordination of modern technologies and expert
professionals in the SME sector considering the same as Benefits of Online Banking include less paperwork, less mail
center of economic development. As a leading commercial etc. which all have a positive impact on the environment. The
bank in the country, SBL is contributing the economic environment and the banking Industry both are benefited
progress by creating employment opportunities for mass when the customers of a bank start using Online Banking,
unemployed people through financing small and medium SMS Banking and Mobile Banking services. SBL aims at
industry, trade and service sector. In this case, the Bank is firmly introducing changes in operational areas in future to adopt
committed to create quality SME customers, patronize and more environment friendly procedures. The progress of our
develop them through equal management besides providing
current banking system towards a fully electronic and Online
utmost importance to acquire quality assets. Moreover, the
Bank is accelerating the sustainable development of rural Banking will further reduce the operational cost and will be
economy of the country by investing the micro and cottage beneficial for our customers.
industry and giving special attention to the neglected and
un-banked female entrepreneurs as well as trying to connect Ethical Banking
them to the mainstream of economic development by
Banks and the policies they pursue have an impact on the
offering diversified loan products. Considering economic
development of the country, the Bank is ignoring net spread community around them. Their impact has two dimensions:
and investment operational cost. SBL regularly participate the way they operate i.e. internal operations and the types
SME promotional activities such as SME Fair, Road Show, of companies they finance. SBL takes care of both the
Open SME Loan Disbursement and Exchange of views with dimensions in its operation. Many ethical issues such as
the entrepreneurs organized by Bangladesh Bank, SME
the environmental conduct of customers are now part
Foundation, Business Associations and Chambers. The Bank
also arranges Bankers Entrepreneurs meeting at field based of standard risk assessment and prudent banking. It is
controlling offices and premises. becoming increasingly common practice for banks to have
guidelines for their staff on the major ethical issues they
Islamic Banking cover. SBL has been trying to follow the Equator Principles,
Because of Muslim dominant people of Bangladesh, Islamic a set of guidelines developed by the banks for managing
banking, based on Shariah, is getting popularity in the country. social and environmental issues related to the financing of
SBL has also started banking business based on Islamic
development projects.
Shariah since June 29, 2010 to provide their ever increasing
demands. In order to efficiently operate Islamic banking, a Treasury Operation
Shariah Supervisory Committee has been constituted with
country’s famous Islamic thinkers, economists and bankers. Treasury operation is one of the core functions of SBL.
A new department namely “Islamic Banking Division’’ has Treasury Management Division (TMD) is responsible for fund
been created to enhance the activities.
Annual Report 2020

YEAR OF EXCELLENCE
management, i.e, maintaining adequate cash balances to as the part of CSR. Further, the Bank has a plan to establish
meet day to day requirements and deploying surplus funds a hospital and an international standard school and college
from operations. It is also responsible for maintenance of under CSR. SBL has always been paying respect to social
reserve requirements (Cash Reserve Ratio and Statutory and public welfare rather than orbiting around maximization
Liquidity Ratio). It has now evolved as a profit center with its of profit. SBL energizes from implementation of every single
own trading and investment activities and has a pioneer role opportunity of serving the nation regardless of the magnitude
of leadership in building stable Inter Bank Money Market and of the frame.
Foreign Exchange Market in Bangladesh.
Human Resource Development
Capital Market Operation Skilled manpower is the pre-requisite of success in any
SBL has a significant presence in the capital market of organization. Every human being has unique latent qualities
Bangladesh through its subsidiary Sonali Investment Limited in him/her though the qualities remain unexplored most
(SIL). Obtaining license from BSEC, SIL commenced its of the time. If the latent qualities of a newly appointed
operation on 14 September, 2009 as Merchant Banking employee are exposed and can be trained up in a proper
Unit under Treasury Management Division (TMD) of Sonali way, one can be turned into an asset for the organization.
Bank Limited. Subsequently, the merchant banking unit had The aim of Human Resources Division of SBL is to take
been registered with Registrar of Joint Stock Companies initiatives to explore the unexplored latent qualities in our
and Firms (RJSC) as a full fledged subsidiary of SBL on April manpower and provide them with proper training which
22, 2010 as SIL. The authorized and paid up capital of the includes on Job and off Job training, attending different
company stands at Tk. 6,000.00 million and Tk. 2,000.00 seminars and conferences related to skill development,
million respectively. Being fully compliant with the laws of job rotation and time to time counseling. Besides, the Bank
the land, SIL ensures high quality services to our valuable recruited Probationary Officers and Senior Officers to meet
clients through its professionalism. It attaches priority to the changing business needs and ever increasing demand of
investors’ interest, their benefit and always intends to protect prompt customer service of the clients.
investors against market related risks. This is why SIL has
Asset Liability Management
become a trusted partner of investors. The current activities
of the company include Issue Management, Portfolio Asset Liability Management (ALM) is the most important
Management, Underwriting, Equity Participation and function of Bank Management derived from an independent
ancillary services related to the capital market. At present, unit within Treasury Management Division of SBL. The
Sonali Investment Limited runs its day to day operation by its function of ALM is the architecture of Bank’s Balance Sheet
Head office and four branches located at Paltan, Uttara and by assessment of current scenario and projection of future
Mirpur. The company has a plan to open new branches at possibilities. As a part of core risks management in Banking,
other divisional towns in future. Bangladesh Bank has introduced basic guidelines for
managing assets and liabilities of banks in Bangladesh. In line
Foreign Correspondent Bank
of Bangladesh Bank guidelines of Asset liability management
SBL has established correspondent relationship with 684 (ALM) and related circulars, SBL facilitates smooth functioning
branches of 463 banks located in 92 countries to facilitate of asset liability management and controlling the Balance
business with foreign countries. This correspondent Sheet risks.
relationship has significantly increased bank’s foreign
exchange and trade business simultaneously. As a result, the
Risk Management
clients of SBL have been receiving prompt and satisfactory Like any other business, there are various risks inherent in
services all over the world. banking business as well. But the risks in banking business are
complex and multi-dimensional. These necessitate structural
Corporate Social Responsibility
development and the implementation of risk management
As a leading state owned commercial bank in the country, strategies in the banking sector. Bangladesh Bank has
SBL extend its hands of cooperation to the destitute people identified 6 (six) core risk areas relating to banking operations
who are largely affected by natural disaster and calamities. and issued necessary guidelines for those areas. These are:
The Bank also provides scholarship to the poor but (a) Credit Risk (b) Asset and Liability/Balance Sheet Risk (c)
meritorious students for their higher studies every year. The Foreign Exchange Risk (a) Money Laundering Risk (e) Internal
Bank has donated funds for rehabilitation of the employees Control and Compliance Risk (f) Information Technology
affected in Rana Plaza Tragedy and earthquake affected Risk and 01 (one) supplementary Risk - Environmental
people in Nepal in the recent past. Besides, SBL takes part in and Climate Change Risk. The Risk Management Division
many socio economic activities, cultural and sports events
194
identifies, analyses, evaluates and supervises all risk related z Steps to strengthen relationship with
works including control/mitigation measure of risk as per customers and pay more attention on client
guidelines and direction of the Bangladesh Bank with the satisfaction, loyalty and retention.
approval of the Board of Directors. A high powered ‘Risk z Special programs for business like ‘Seba-Mash’,
Management Committee’ comprising five members of the ‘Grahok-Somabesh’, ‘Remittance Pokkho’ etc.
Board of Directors has been working as per the directives z To present innovative and new deposit and
of Bangladesh Bank to strengthen overall risk management investment products to the customers.
activities.
Some factors may cause actual results to differ and some
Outlook for 2021 may significantly deviate from the outlook for 2021. Some
of the factors that may affect the business environment are
The overall growth performance of the Bangladesh economy
given below:
was stable during 2010 till 2019 at above 6.00 percent due
to macroeconomic stability, lower inflation rate, and higher z Changes in the general economic condition
production in the industry and service sector. The current resulting from natural calamities and political
account balance in the balance of payments is expected to disturbances.
be benefited from lower oil prices in international market. z Changes in government policy issues.
Within the scenario, the financial sector in Bangladesh still z Increase in corporate tax rate.
expects to record a steady growth. To make 2021 another z Increase in CRR and SLR of the banks.
successful year, SBL is ready to accept the challenges of 2021 z Withdrawal of incentive given to some thrust
with new visionary zeal to achieve the common objectives sectors which may make the projects slowly
of the Bank and hence the year 2021 will definitely be a moving.
challenging for everyone at SBL. To achieve success in the z Directives to reduce the lending rates to
year, SBL has undertaken the following short term strategies finance essential items.
side by side with midterm and long term strategies: z Increase in provisioning requirement may
reduce the ROA and ROE.
z Initiative will be taken to invest in strategically
z Reducing the margin ratio for investment
important in innovative areas which will focus
accounts.
on delivering stronger value added offers to
z Volatility in interest rate.
our clients.
z Volatility in capital market arising from
z Steps to accelerate the number of VISA
speculations.
enabled credit card holders along with further
z Compliance issues raised by the international
expansion of ATM services.
forums which are likely to affect the export
z Integrated approaches through multi-
growth.
dimensional and customized promotional
z Rise in international prices of essentials which
programs to gear up entire foreign trade
may lead to volatility in Foreign Exchange
including wage earners’ remittance.
Market.
z Pragmatic steps to bring the SME under the
z International embargo/unrest may adversely
main stream of investment which will facilitate
affect remittances and trade.
creating employment opportunities for a large
z Adverse media reporting.
section of population.
z Formulation of an integrated CSR and Green
financing policy.
Annual Report 2020

AWARDS &
RECOGNITIONS
ICMAB Best Corporate Award 2018
Sl. Name of Award Awarded by Year

1 ICMAB Best Corporate Award 2019 Institute of Cost and Management Accountants, Bangladesh 2020
2 Annual Performance Agreement Award 2018-2019 Financial Institutions Division, Ministry of Finance 2019
4 Award in Foreign Remittance Collection Centre for the Non-Residence Bangladeshis (NRBs) 2019
5 Bangladesh Bank Remittance Award Bangladesh Bank 2018
6 Bangladesh Bank Remittance Award Bangladesh Bank 2017
8 Highest Tax Payer in Banking Sector National Board of Revenue 2016
9 Best Financial Institute of the Year Arthokontho Business Award 2013
10 Best Brand Award Bangladesh Brand Forum 2013
11 Strongest Bank in Bangladesh The Asian Banker 2012
12 Highest Remittance Collecting Bank The Industry 2012
14 Award in Foreign Remittance Collection Centre for the Non-Residence Bangladeshis (NRBs) 2012
16 Best Retial Banker in Bangladesh The Asian Banker 2010
19 ICMAB Best Corporate Award Institute of Cost and Management Accountants, Bangladesh 2008

AWARDS & RECOGNITIONS
ICMAB Best Corporate Award 2019
Annual Report 2020

YEAR OF EXCELLENCE
PRODUCTS AND
SERVICES OF SBL
Deposits
Time Deposits
1 Fixed Deposits
2 Special Notice Deposits (SND)
3 Deposit Pension Scheme
4 Sonali Bank Special Deposit and
Pension Scheme
5 Savings Deposits
6 Non-Resident Foreign Currency
Deposit (NFCD) and Resident Foreign
7
Currency Deposit(RFCD) Account
ATM A/C Loans and
8
9
Sonali Deposit Scheme
Education Deposit Scheme
Advances
10
11
Medical Deposit Scheme
Rural Deposit Scheme
General
12
13
Monthly Earning Scheme
Marriage Savings Scheme
Advances
14 Double Benefit Scheme 1 Cash Credit: General-Hypothecation
15 Sonali Bank Daily Profit A/C 2 Cash Credit: General Pledge
16 Non-Resident Deposit Scheme 3 Demand Loan
17 School Banking Scheme 4 Overdraft
18 Retirement Savings Scheme 5 Small Loan
19 Sonali Bank Retirement Savings 6 House Building Loan (General)
Scheme
20 Triple Benefit Scheme
21 Sonali Bank Millionaire Scheme 9 Special Small Loan Programme
22 Sonali Krishok Savings Scheme (SKSS) 10 Small Business Loan Scheme
11 Lease Finance
12 Probashi Karma-sangsthan Rin
Industrial Credit Prokalpa
13 Term Loan to Freedom Fighters
1 Loan under Sonali Bank 14 Personal Loan
Industrial Credit Scheme 15 Education Loan
2 Laon under External 16 Foreign Education Loan
Credit Programme Programme
3 Working Capital to
4
Industries-Hypothecation
Working Capital to Industries-Pledge Rural Credit
5 SME Finance A/C
1 Loan Under Sonali Bank Agro-based
(Term Loan to Services)
Industrial Cr. Scheme
6 SME Finance A/C
2 Working Capital to Agro-based
(Term Loan to Industries)
Industries-Hypo.
7 SME Finance A/C (Working Capital
3 Working Capital to Agro-based
to Industries and Trading)
Industries-Pledge
4 Agricultural Credit
5 Micro Credit
198
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
6 Sonali Bank Employees Pension
Fund
Demand
7 Sonali Bank Employees Pension and
Death Cum Retirement Benefit Fund
8
9
Drafts Payable
Govt. Drafts Payable Deposits
10 Payment Orders Issued
1 Current Deposits
11 Foreign Drafts/Travellers Cheque
2 Call Deposits
Issued
3 Foreign Currency Deposits
12 Foreign Correspondents Charges
4 Convertible Tk. A/C
13 Foreign Drafts Payable
5 Foreign Bank's Deposits
6 Exporter's Foreign Currency
Financial Retention Quota
Services International
Sl. Inland Remittance Trade Finance
1 Demand Draft (DD)
2 Telephonic Transfer (TT) 1 Loan Against Imported
3 Mail Transfer (MT) Merchandise (LIM)
2 Loan Against Trust Receipt
4 E-Wallet
3 Forced Loan against Back to Back
5 RTGS
Letter of Credit
6 Sonali Payment Gateway
4 Packing Credit
5 Loan Against L/C Under WES
Sl. Foreign Remittance 6 Foreign Bills Purchased/
Negotiated-Clean
1 Western Union
7 Foreign Bills Purchased/
2 IME
Negotiated-Documentary
3 Trans-fast
8 Payment Against Document (PAD)
4 Spot Cash
9 Inland Bills Purchased
5 Xoom Paypal
6 SAMBA
7 Hello Paisa South Africa
8 RIA Financial Services
Annual Report 2020

YEAR OF EXCELLENCE
Other Services
A. Utility Bills
1 Electricity Bills Collection of
PDB, REB, DESCO and DPDCL.
2 Bills Collection of
Titas Gas Company.
3 Bills Collection of WASA.
4 Telephone Bills Collection of BTCL.
B. Payment
Islamic Banking 1 Salary and allowances for the
Deposits teachers of 5.00 ( ve) lac private

Educational institution.
2 Old age allowances.
1 Al-Wadeeah Current 3 Allowances to 60,000 bene ciaries
Account (AWCA) of Sta Benevolent Board.
2 Mudaraba Savings Account (MSA) 4 Freedom Fighters remuneration
3 Mudaraba Special and allowances.
Notice Deposit (MSND) 5 Widows, Divorcees and destitute
4 Mudaraba Term Women allowances.
Deposit Account (MTDA) 6 Allowances to the poor mother.
5 Mudaraba Hajj 7 Allowances of the disabled people.
Deposit Scheme (MHDS) 8 Allowances
6 Mudaraba Monthly to the Acid Burnt Women.
Pro t Scheme (MMPS) 9 Stipend /scholarship
7 Sonali Monthly to the disabled students.
Deposit Scheme (SMDS)
C. Collection
Loans and 1 e-challan
Advances 2
3
Land Development tax.
Excise duty
4 VAT
Islamic Banking 5 Source Tax
Investment 6 Travels Tax
7 Hajj Deposit
1 Bai-Murabaha 8 Jakat Fund
2 Bai-Muajjal 9 City Corporation Tax
3 Bai-Salam 10 Information delivery in accordance
4 Hire Purchase with section 111 (F), Income Tax
Under Shirkatul Meelk Ordinance, 1984.
5 Bai-Istisna'a 11 Activities related
to Local Government.
12 ASYCUDA/Online Customs Duty
Collection
200
MEIDA HIGHLIGHTS OF SBL
MEDIA HIGHLIGHTS
OF SBL
Annual Report 2020

PHOTO
GALLERY
Floral wreath placed by Honorable Chairman and CEO Honorable Chairman and CEO & Managing Directors’
& Managing Director at the portrait of the Father of the presence at Milad & Dua Mahfil during the National
Nation Bangabandhu Shaikh Mujibur Rahaman. Mourning Day.
Inauguration ceremony of Online Travel Tax Collection. Chairman of SBL Mr. Ziaul Hasan Siddiqui and CEO
& Managing Director Mr. Md. Ataur Rahman Prodhan
handing over the key of an AC bus to BSMMU Vice-
chancellor Professor Kanak Kanti Barua.
Blood Donation Program held at Local Office, Sonali Agreement signing ceremony with BUET.
Bank Limited.

PHOTO GALLERY
COVID-19 assistance to Bangladesh Police by the CEO & Press conference with the journalists by the CEO &
Managing Director of Sonali Bank Limited. Managing Director of Sonali Bank Limited.
The CEO & Managing Director exchanging views with MOU signing ceremony with BTCL.
the AD branches of SBL.
MOU signing ceremony with BTV. Agreement signing ceremony with Govt. Madrashah-E-
Alia, Dhaka.
Annual Report 2020

YEAR OF EXCELLENCE
INDEPENDENT
AUDITOR’S REPORT
TO THE SHAREHOLDERS
OF SONALI BANK LIMITED
Report on the Audit of the Consolidated Separate Financial Statements section of our report. We are
independent of the Group and the Bank in accordance with
and Separate Financial Statements the International Ethics Standards Board for Accountants’
Opinion Code of Ethics for Professional Accountants (IESBA Code),
Bangladesh Securities and Exchange Commission (BSEC)
We have audited the consolidated financial statements of and Bangladesh Bank, and we have fulfilled our other ethical
Sonali Bank Limited and its subsidiaries (the “Group”) as well responsibilities in accordance with the IESBA Code and the
as the separate financial statements of Sonali Bank Limited Institute of Chartered Accountants of Bangladesh (ICAB) Bye
(the “Bank”), which comprise the consolidated and separate Laws. We believe that the audit evidence we have obtained is
balance sheets as at 31 December 2020 and the consolidated sufficient and appropriate to provide a basis for our opinion.
and separate profit and loss accounts, consolidated and
separate statements of changes in equity and consolidated Key Audit Matters
and separate cash flows statement for the year then ended, Key audit matters are those matters that, in our professional
and notes to the consolidated and separate financial judgment, were of most significance in our audit of the
statements, including a summary of significant accounting consolidated and separate financial statements of the current
policies and other explanatory information. period. These matters were addressed in the context of our
In our opinion, the accompanying consolidated financial audit of the consolidated and separate financial statements
statements of the Group and separate financial statements of as a whole, and in forming our opinion thereon, and we do
the Bank give a true and fair view of the consolidated financial not provide a separate opinion on these matters. For each
position of the Group and the separate financial position of matter below our description of how our audit addressed
the Bank as at 31 December 2020, and of its consolidated the matter is provided in that context.
and separate financial performance and its consolidated and We have fulfilled the responsibilities described in the auditor’s
separate cash flows for the year then ended in accordance responsibilities for the audit of the financial statements
with International Financial Reporting Standards (IFRSs) as section of our report, including in relation to these matters.
explained in note 2.
Accordingly, our audit included the performance of
Basis for Opinion procedures designed to respond to our assessment of the
We conducted our audit in accordance with International risks of material misstatements of the financial statements.
Standards on Auditing (ISAs). Our responsibilities under These results of our audit procedures, including the
those standards are further described in the Auditor’s procedures performed to address the matters below, provide
Responsibilities for the Audit of the Consolidated and the basis for our audit opinion on accompanying financial
statements.
1) Measurement of provision for loans and advances

See notes # 7.00 and 7.09 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
The process for estimating the provision for loans, We tested the design and operating effectiveness of key
advances and leases portfolio associated with credit controls focusing on the following:
risk is judgmental, significant and complex. While
estimating such provision certain judgmental factors z Credit appraisal, loan disbursement procedures,
need to be considered including: monitoring and provisioning process;
z Identification of loss events, including early
z Future business performance of the warning and default warning indicators; and
borrower;
z Reviewed quarterly Classification of Loans (CL).
z Key assumptions relating to further
business performance of the borrower; Our substantive procedures in relation to the provision for
z Market value of the collateral; loans and advances portfolio comprised the following:
z Ability to repossess collateral; and
z Recovery rates.
204
FINANCIAL STATEMENTS OF SBL
Furthermore, these provisions are processed manually z Reviewed the adequacy of the general
that deals with voluminous data extracted from the and specific provisions in line with related
IT system of the Bank and following the instructions Bangladesh Bank guidelines;
of Bangladesh Bank issued time to time. Due to high z Assessed the methodologies on which the
level of judgment involved and using some manual provision amounts are based, recalculated the
process in estimating the provision for loans and provisions and tested the completeness and
advances, we considered this to be a key audit matter. accuracy of the underlying information;
At year end the Group and the Bank reported total z Evaluated the appropriateness and presentation
of disclosures against relevant accounting
gross loans and advances of BDT 587,949 million
standards and Bangladesh Bank guidelines;
(2019: BDT 553,128 million) and provision as required
z Evaluated the balances of loans and advances
by Bangladesh Bank for loans and advances of BDT and provisions of overseas branches whether
70,166 million (2019: BDT 58,373 million) those are properly incorporated in the gross
balances thereon; and
z Finally, we compared the amount of provision
requirement as determined by Bangladesh
Bank inspection team to the actual amount of
provision maintained.
2) Valuation of treasury bill and treasury bond
See notes #6 and 17.01 to the consolidated and separate financial statements
The classification and measurement of T-Bill and We assessed the processes and controls put in place by the
T-Bond require judgment and complex estimates. Bank to identify and confirm the existence of treasury bills
and bonds.
In the absence of a quoted price in an active market,
the fair value of T-Bills and T-Bonds is determined using We obtained an understanding, evaluated the design and
complex valuation techniques which may take into tested the operating effectiveness of the key controls over
consideration direct or indirect unobservable market the treasury bills and bonds valuation processes, including
data and complex pricing models which require an controls over market data inputs into valuation models,
elevated level of judgment. model governance, and valuation adjustments.
We tested a sample of the valuation models and the inputs
used in those models, using a variety of techniques, including
comparing inputs to available market data.
Finally, we assessed the appropriateness and presentation
of disclosures against relevant accounting standards and
Bangladesh Bank guidelines.
3) Impairment assessment of unquoted investments
See note #6.02 to the consolidated and separate financial statements
In the absence of a quoted price in an active market, We have assessed the processes and controls put in place
the fair value of unquoted shares and bonds, by the Bank to ensure all major investment decisions are
especially any impairment is calculated using valuation undertaken through a proper due diligence process. We
techniques which may take into Consideration direct tested a sample of investments valuation as at 31 December
or indirect unobservable market data and hence 2020 and compared our results to the recorded value.
requires an elevated level of judgment.
Finally, we assessed the appropriateness and presentation
Due to high level of judgment and assumption involved of disclosures against relevant accounting standards and
in evaluating the impairment assessment of unquoted Bangladesh Bank guidelines.
shares, we considered this to be a key audit matter.
4) Measurement of deferred tax assets
See note #9.08.01 to the consolidated and separate financial statements
The Group and Bank have recognized deferred tax We obtained an understanding of the Group and Bank’s key
assets for deductible temporary difference that it controls over the recognition and measurement of deferred
believes are recoverable. tax assets (DTA) and the assumptions used in estimating the
Group’s future taxable income.
The recoverability of recognized deferred tax assets
is in part dependent on the bank’s ability to generate We also assessed the completeness and accuracy of the
future taxable profits sufficient to utilize deductible data used for the estimations of future taxable income.
temporary differences.
Annual Report 2020

YEAR OF EXCELLENCE
We have determined this to be a key audit matter, due We involved tax specialists to assess key assumptions,
to the inherent uncertainty in forecasting the amount controls, recognition and measurement of DTA’s.
and timing of future taxable profits and the reversal of
temporary differences where significant judgement is Finally, we assessed the appropriateness and presentation of
involved. disclosures against IAS 12 Income Taxes.
The Group and the bank have reported deferred tax

assets BDT 27,508 million (2019: BDT 29,109 million)
as at 31 December 2020.
5) Revaluation of property, plant and equipment (Assets Revaluation Reserve)

See notes #17.02 to the consolidated and separate financial statements
The Bank in prior year has undertaken revaluation of We assessed the process of revaluation previously taken by
its fixed assets. As a result of this revaluation exercise, the Bank.
an amount of BDT 21,495 million (in 2011 revalued
We reviewed revaluation report of the independent valuer
by Taka 12,026 million and lastly in the year 2013 by
along with relevant documents and applied our judgment to
Taka 9,469 million) is recognized as the fair value
see whether the fair value is still relevant.
gain in revaluation reserve as at 31 December 2020.
Determination of fair value in absence of any quoted We checked related accounting treatments of fair value gain
price and active market require significant judgment. and associated deferred tax as recognized by the Bank.
6) Legal and regulatory matters
We focused on this area because the Bank and We obtained an understanding of the Group and the Bank’s
its subsidiary (the "Group") operate in a legal and key controls over the legal compliance.
regulatory environment that is exposed to significant
We enquired to those charged with governance to obtain
litigation and similar risks arising from disputes and
their view on the status of all significant litigation and
regulatory proceedings. Such matters are subject to
regulatory matters.
many uncertainties and the outcome may be difficult
to predict. We enquired of the Bank's internal legal counsel for all
significant litigation and regulatory matters and inspected
These uncertainties inherently affect the amount
internal notes and reports.
and timing of potential outflows with respect to the
provisions which have been established as other We assessed the methodologies on which the provision
contingent liabilities. amounts are based, recalculated the provisions, and
tested the completeness and accuracy of the underlying
Overall, the legal provision represents the Group's and
information.
the Bank's best estimate for existing legal matters that
have a probable and estimable impact on the Group's We also assessed the Bank's provisions and contingent
financial position. liabilities disclosure.
7) Carrying value of investments in subsidiaries and associate by the Bank
See note # 9.01 to the consolidated and separate financial statements
The Bank has invested in equity shares of its We have reviewed management’s analysis of impairment
subsidiaries namely Sonali Exchange Co. Inc. USA, assessment and recoverable value calculation of subsidiaries
Sonali Investment Limited and associate namely Sonali in accordance with IAS 36, Impairment of Assets.
Bank (UK) Ltd. and Sonali Intellect Limited. As at 31
The group and the bank has recognized Sonali Bank (UK)
December 2020 the carrying value of these investment
Limited as associate as per IAS 28- Investment in Associates
in Sonali Exchange Co. Inc. USA is BDT 80.56 million
and Joint Ventures. But the bank still has pending regulatory
(2019: BDT 80.66 million), Sonali Investment Limited
final decision regarding recognition either as associate or as
is BDT 2,000 million (2019: BDT 2,000 million) Sonali
subsidiary. With the investment recognition criteria as per IAS
Bank (UK) Ltd. is BDT 3,348 million (2019: BDT 3,248
28, we reviewed the activities and investment considering as
million) and Sonali Intellect Limited is BDT 26.25
associate as per supporting provided by the management.
million (2019: BDT 26.25 million).
In particular, our discussion with the Management were
The Bank is required to perform impairment test of
focused on the continued appropriateness of the value in use
investment in subsidiaries when impairment indication
model, the key assumption used in the model, the reasonably
exists.
possible alternative assumptions, particularly where they had
the most impact on the value in use calculation.
206
The impairment testing is considered to be a key audit In particular, our discussion with the Management were
matter due to the complexity and judgements required focused on the continued appropriateness of the value in use
in determining the assumptions to be used to estimate model, the key assumption used in the model, the reasonably
the recoverable amount which is higher of fair value possible alternative assumptions, particularly where they had
less costs to sell and value in use. the most impact on the value in use calculation.
Management has conducted impairment assessment
and calculated recoverable value of its subsidiaries for
Sonali Exchange Co. Inc. USA and Sonali Investment
Limited and associates namely Sonali Bank (UK) Ltd
and Sonali Intellect Limited in accordance with IAS 36,
Impairment of Assets.
8) Recognition of Interest Income from loans

Recognition of interest income from loans and We tested the design and operating effectiveness of key
advances has significant and wide influence on controls over Recognition and measurement of interest on
financial statements. loans and advances.
Recognition and measurement of interest income has We have performed test of operating effectiveness on
investment of complex IT environment. automated control in place to measure and recognize
interest income.
We identify recognition of interest income from loans
and advances as a key audit matter because this is one We have also performed substantive procedure to check
of the key performance indicators of the bank and whether interest income is recognized completely and
therefore there is an inherent risk of fraud and error accurately.
in recognition of interest by management to meet
We assessed the appropriateness and presentation of
specific targets or expectations.
disclosures against relevant accounting standards and
9) Loans and Advances
Loans and advances are the vital component of We tested the design and operating effectiveness of key
financial statements of the bank. Income of the bank is controls focusing on credit appraisal, loan disbursement
primarily reliant on the portfolio of loans and advances. procedures and monitoring process of loans and advances.
Management performance is highly dependent on
We performed procedures to check whether the bank has
the target achievement of loans and advances. Loan
ensured appropriate documentation as per Bangladesh
disbursement requires robust documentation followed
bank regulations and Bank’s policy before disbursement
by approval from appropriate level of authority.
of loans and advances. In addition, we have performed
We identified loans and advances as a key audit matter procedures to check whether the loans and advances is
because there is an inherent risk of fraud and error in recorded completely and accurately and that are existed at
disbursement of loans and advances by management the reporting date.
to meet specific targets or expectations.
We also performed the detailed test to confirm that the
balances of branches outside Bangladesh were correctly
incorporated in gross balances of loans and advances.
Moreover, we assessed the appropriateness and presentation
of disclosures against Bangladesh Bank guidelines.
10) IT systems and controls
Our audit procedures have been focused on IT We tested the design and operating effectiveness of the
systems and controls due to the pervasive nature and bank’s IT access controls over the information systems that
complexity of the IT environment, the large volume are critical to financial reporting.
of transactions processed in numerous locations daily
We tested IT general controls (logical access, changes
and the reliance on automated and IT dependent
management and aspects of IT operational controls). This
manual controls.
included testing that requests for access to systems were
appropriately reviewed and authorized.
Annual Report 2020

YEAR OF EXCELLENCE
We have focused on master data management, We tested the Group’s periodic review of access rights. We
user access management and developer access to also inspected requests of changes to systems for appropriate
the production environment and changes to the IT approval and authorization. We considered the control
environment. Among others, these are key to ensuring environment relating to various interfaces, configuration and
operating effectiveness of manual with automated other application layer controls identified as key to our audit.
control as well as fully automated control systems. Where deficiencies were identified, we tested compensating
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.
11) Impact of COVID-19 on financial reporting

The effects of the COVID-19 pandemic have significant Detailed substantive tests were conducted in order to
global implications for economies, markets and mitigate the additional risks of material misstatements
businesses, including volatility and possible material due to the impact of COVID-19. Testing the Bank’s and
uncertainties. The operations of the Bank itself have Group’s ability to function as a going concern by reviewing
been affected due to the restrictions brought about profitability, liquidity and operations, we performed detailed
by the COVID-19 pandemic. There is an increasing analytical procedures on the financial statements of the
probability that assertions and estimates related to Bank, including but not limited to variance and common size
reporting may be materially impacted due to impact analysis of balances. We have evaluated the appropriateness
of financial market volatility, deteriorating credit or and sufficiency of the Management’s explanations for the
liquidity concerns, government interventions, and deviations amongst balances and ratios of current year
disruptions in production and supply chain, among to that of the comparative. We analyzed the disclosures
other matters. provided by the Bank to rationalize the impact of COVID-19
on financial statements, and checked their appropriateness
and sufficiency. We also checked that all COVID-19 impacts
are accurately reflected in the financial statements, and
disclosed in their entirety of magnitude to the financial
statements as a whole; and scrutinize that the impacts of
events after the reporting period, and ensure their true and
fair reflection and disclosure in the financial statements. Our
testing did not identify any issues with regards to impact of
COVID-19 on financial reporting. Moreover the bank has
maintained @1% Special General Provision COVID-19 in
addition to the general provision as per Circular Number 56
dated 10 December 2020 (Note# 13.01.01).
Other Matter information identified above when it becomes available

and, in doing so, consider whether the other information is
The consolidated financial statements of the Group and materially inconsistent with the financial statements or our
also separate financial statements of the Bank as at and for knowledge obtained in the audit or otherwise appears to be
the year ended 31 December 2019 were audited by us and materially misstated.
Aziz Halim Khair Choudhury, Chartered Accountants jointly
and expressed an unmodified opinion on those financial When we read the annual report, if we conclude that there
statements on 30 June 2020. is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Other information
Responsibilities of Management and
Management is responsible for the other information. The
other information comprises all of the information in the
Those Charged with Governance for
Annual Report other than the consolidated and separate the Consolidated and Separate Financial
financial statements and our auditor’s report thereon. The Statements and Internal Controls
Annual Report is expected to be made available to us after
the date of this auditor’s report. Management is responsible for the preparation and fair
presentation of the consolidated financial statements of the
Our opinion on the consolidated and separate financial Group and also separate financial statements of the Bank in
statements does not cover the other information and we do accordance with IFRSs as explained in note 2, and for such
not express any form of assurance conclusion thereon. internal control as management determines is necessary to
In connection with our audit of the consolidated and separate enable the preparation of consolidated and separate financial
financial statements, our responsibility is to read the other statements that are free from material misstatement, whether
208
due to fraud or error. The Bank Company Act, 1991 and expressing an opinion on effectiveness of the
the Bangladesh Bank Regulations require the Management Group’s internal control.
to ensure effective internal audit, internal control and risk
z Evaluate the appropriateness of accounting
management functions of the Bank. The Management is
also required to make a self-assessment on the effectiveness policies used and the reasonableness of
of anti-fraud internal controls and report to Bangladesh Bank accounting estimates and related disclosures
on instances of fraud and forgeries. made by management.
In preparing the consolidated and separate financial z Conclude on the appropriateness of
statements, management is responsible for assessing management’s use of the going concern basis
the Group’s and the Bank’s ability to continue as a going of accounting and, based on the audit evidence
concern, disclosing, as applicable, matters related to going obtained, whether a material uncertainty
concern and using the going concern basis of accounting
unless management either intends to liquidate the Group
exists related to events or conditions that
and the Bank or to cease operations, or has no realistic may cast significant doubt on the Group’s
alternative but to do so. and the Bank’s ability to continue as a going
Those charged with governance are responsible for concern. If we conclude that a material
overseeing the Group’s and the Bank’s financial reporting uncertainty exists, we are required to draw
process. attention in our auditor’s report to the related
disclosures in the consolidated and separate
Auditor’s Responsibilities for the Audit of financial statements or, if such disclosures
the Consolidated and Separate Financial are inadequate, to modify our opinion. Our
Statements conclusions are based on the audit evidence
Our objectives are to obtain reasonable assurance about obtained up to the date of our auditor’s report.
whether the consolidated and separate financial statements However, future events or conditions may
as a whole are free from material misstatement, whether cause the Group and the Bank to cease to
due to fraud or error, and to issue an auditor’s report that continue as a going concern.
includes our opinion. Reasonable assurance is a high level z Evaluate the overall presentation, structure
of assurance but is not a guarantee that an audit conducted and content of the consolidated and separate
in accordance with ISAs will always detect a material financial statements, including the disclosures,
misstatement when it exists. Misstatements can arise from and whether the consolidated and separate
fraud or error and are considered material if, individually financial statements represent the underlying
or in the aggregate, they could reasonably be expected to transactions and events in a manner that
influence the economic decisions of users taken on the basis achieves fair presentation.
of these consolidated and separate financial statements. z Obtain sufficient appropriate audit evidence
regarding the financial information of the
As part of an audit in accordance with ISAs, we exercise
entities or business activities within the Group
professional judgment and maintain professional skepticism
to express an opinion on the consolidated
throughout the audit. We also:
financial statements. We are responsible for
z Identify and assess the risks of material the direction, supervision and performance of
misstatement of the consolidated and separate the group audit. We remain solely responsible
financial statements, whether due to fraud or for our audit opinion.
error, design and perform audit procedures We communicate with those charged with governance
responsive to those risks, and obtain audit regarding, among other matters, the planned scope and
evidence that is sufficient and appropriate to timing of the audit and significant audit findings, including
provide a basis for our opinion. The risk of not any significant deficiencies in internal control that we identify
detecting a material misstatement resulting during our audit.
from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, We also provide those charged with governance with a
intentional omissions, misrepresentations, or statement that we have complied with relevant ethical
the override of internal control. requirements regarding independence, and to communicate
z Obtain an understanding of internal control with them all relationships and other matters that may
relevant to the audit in order to design reasonably be thought to bear on our independence, and
audit procedures that are appropriate in the where applicable, related safeguards.
circumstances, but not for the purpose of From the matters communicated with those charged with
Annual Report 2020

YEAR OF EXCELLENCE
governance, we determine those matters that were of most (iii) financial statements for the year ended 31 December
significance in the audit of the financial statements of the 2020 of two subsidiaries, namely Sonali Exchange Co.
current period and are therefore the key audit matters. We Inc. USA and Sonali Investment Ltd. have been audited by
describe these matters in our auditor’s report unless law or United Financial CPA P.C, Certified Public Accountants
regulation precludes public disclosure about the matter or and Anil Salam Idris & Co., Chartered Accountants
when, in extremely rare circumstances, we determine that a respectively who have expressed unmodified audit
matter should not be communicated in our report because opinion. The results of the subsidiary have been properly
the adverse consequences of doing so would reasonably be reflected in the consolidated financial statements;
expected to outweigh the public interest benefits of such
communication. (iv) in our opinion, proper books of account as required by
law have been kept by the Group and the Bank so far as
Report on other Legal and Regulatory it appeared from our examination of those books;
Requirements
(v) the records and statements submitted by the branches
In accordance with the Companies Act, 1994, the Securities
have been properly maintained and consolidated in the
and Exchange Rules 1987, the Bank Company Act, 1991 and
financial statements;
the rules and regulations issued by Bangladesh Bank, we also
report that: (vi) the consolidated balance sheet and consolidated profit
and loss account together with the annexed notes dealt
(i) we have obtained all the information and explanations
with by the report are in agreement with the books of
which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due account and returns;
verification thereof; (vii) the expenditures incurred were for the purpose of the
(ii) to the extent noted during the course of our audit Bank’s business for the year;
work performed on the basis stated under the Auditor’s (viii) the consolidated financial statements of the Group and
Responsibilities for the Audit of the Consolidated and the Separate Financial Statements of the bank have been
Separate Financial Statements section in forming the drawn up in conformity with prevailing rules, regulations
above opinion on the consolidated financial statements
and accounting standards as well as related guidance,
of the Group and the Separate Financial Statements
circulars issued by Bangladesh Bank;
of the bank and considering the reports of the
Management to Bangladesh Bank on anti-fraud internal (ix) provision as required by Bangladesh Bank has been
controls and instances of fraud and forgeries as stated accounted for loans & advances, investments and other
under the management’s responsibility for the financial assets which are, in our opinion, doubtful of recovery;
statements and internal control:
(x) the information and explanations required by us have
(a) internal audit, internal control and risk management been received and found satisfactory;
arrangements of the Group as disclosed in the
(xi) we have reviewed over 80% of the risk weighted assets
financial statements appeared to be materially
adequate; of the Bank covering 60 branches as well as Head Office
and spent over 6,237 person hours for the audit of the
(b) nothing has come to our attention regarding bank; and
material instances of forgery or irregularity or
administrative error and exception or anything (xii) Capital to Risk-weighted Asset Ratio (CRAR) as required
detrimental committed by employees of the Group by Bangladesh Bank has been maintained during the
and its related entities (other than matters disclosed year.
in these financial statements);
Signed for & on behalf of

ACNABIN
Md Moniruzzaman FCA
Date: 30 June 2021 Partner
ICAB Enrollment No. 787
Place: Dhaka
DVC: 2106300787AS842829
210
Sonali Bank Limited and its Subsidiaries

Consolidated Balance Sheet
As at 31 December 2020
2020 2019
Particulars Notes
Taka Taka
PROPERTY AND ASSETS
Cash
Cash in Hand (Including Foreign Currencies) 7,428,996,911 7,815,153,994
Balance with Bangladesh Bank and its agent Bank(s) (Including 83,801,297,347 101,072,999,337
Foreign Currencies)
3.00 91,230,294,258 108,888,153,331
Balance with other Banks & Financial Institutions
In Bangladesh 40,680,382,215 78,207,701,186

Outside Bangladesh 11,893,927,285 9,111,386,179
4.00 52,574,309,500 87,319,087,365
Money at Call on Short Notice 5.00 9,031,300,000 16,274,409,000
Investments
Government 550,695,158,356 426,936,594,330
Others 79,930,521,522 73,897,736,558
6.00 630,625,679,878 500,834,330,888
Loans and Advances
Loans, Cash Credit, Overdrafts etc. 574,511,908,573 540,146,606,603
Bills Purchased and Discounted 13,437,589,499 12,981,839,923
7.00 587,949,498,072 553,128,446,526
Fixed Asset including Premises, Furniture and Fixture 8.00 33,892,536,141 33,467,819,402
Other Assets 9.00 187,105,252,651 173,571,702,143
Non-Banking Assets 10.00 - -
Total Assets 1,592,408,870,500 1,473,483,948,655
LIABILITIES AND CAPITAL

Liabilities
Borrowing from other Banks, Financial Institutions & Agents 11.00 562,665,859 604,175,183
Deposits and Other Accounts
Current Accounts & Other Accounts etc. 242,819,548,854 242,142,019,430
Bills Payable 11,043,066,246 10,909,899,482
Savings Bank Deposits 451,471,060,424 387,366,063,760
Fixed Deposits 553,247,976,484 518,225,712,555
Other Deposits 11,888,727 -
12.00 1,258,593,540,735 1,158,643,695,226
Other Liabilities 13.00 247,644,721,131 246,137,533,500

Total Liabilities 1,506,800,927,726 1,405,385,403,910
Shareholders' Equity
Paid up Capital 14.00 45,300,000,000 45,300,000,000
Statutory Reserve 15.00 13,469,002,429 12,400,572,516
Other Reserve 16.00 165,713,816 119,378,090
Revaluation Reserve 17.00 36,328,464,917 22,121,180,839
Surplus in Profit and Loss Account/Retained Earnings 18.00 (9,655,238,388) (11,842,586,699)
85,607,942,774 68,098,544,745
Total Liabilities and Shareholders' Equity 1,592,408,870,500 1,473,483,948,655
Annual Report 2020

YEAR OF EXCELLENCE

Consolidated Balance Sheet
2020 2019
Particulars Notes
Taka Taka
Off Balance Sheet Items
Contingent Liabilities
Acceptances and Endorsements
Letters of Guarantee 7,474,857,353 8,012,301,714
Irrevocable Letters of Credit 936,600,205,509 1,007,769,830,566
Bills for Collection 5,338,003,972 6,586,137,345
Other Contingent Liabilities - -
19.00 949,413,066,834 1,022,368,269,625
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 949,413,066,834 1,022,368,269,625
Consolidated Net Asset Value (NAV) per Share 188.98 150.33
The annexed notes from 1 to 48 form an integral part of these consolidated financial statements.
Subhash Chandra Das FCMA, FCA Md. Ataur Rahman Prodhan

Chief Financial Officer CEO & Managing Director

Director Director

Chairman
This is the consolidated balance sheet referred to in our separate report of even date.

ACNABIN
Md Moniruzzaman FCA
Partner
Date: 30 June 2021 ICAB Enrollment No. 787
Place: Dhaka DVC: 2106300787AS842829
212

Consolidated Profit and Loss Account
For the year ended 31 December 2020
2020 2019
Particulars Notes
Taka Taka
Operating Income
Interest income 21.00 31,714,933,522 36,024,281,699
Interest paid on deposit and borrowing etc. 22.00 (41,917,359,748) (40,084,176,039)
Net Interest Income (10,202,426,226) (4,059,894,340)
Investment income 23.00 40,351,456,620 28,163,434,077
Commission, exchange and brokerage 24.00 12,488,534,651 11,785,474,559
Other operating income 25.00 550,852,048 1,087,855,608
53,390,843,318 41,036,764,243
Total Operating Income (A) 43,188,417,093 36,976,869,903
Operating Expenses
Salary and allowances 26.00 14,508,321,704 14,055,971,485
Rent, tax, insurance, electricity etc. 27.00 1,158,059,570 1,231,231,610
Legal expenses 28.00 36,768,592 41,762,074
Postage, stamps and telecommunication etc. 29.00 46,261,924 50,996,941
Printings, stationery, advertisements etc. 30.00 164,967,821 199,160,939
Chief Executive's salary and fees 31.00 14,164,947 9,276,394
Directors' fees 32.00 4,369,200 5,708,193
Auditors' fees 33.00 6,552,495 5,960,538
Depreciation & repair to bank's assets 34.00 795,406,035 582,371,872
Other expenses 35.00 4,821,292,878 3,634,996,816
Total Operating Expenses (B) 21,556,165,165 19,817,436,861
Profit Before Provision, Amortization and Taxes C=(A-B) 21,632,251,928 17,159,433,042
Provision for loans & advances 36.00 11,919,329,137 9,377,420,114
Provision for diminution in value of investment 37.00 (884,216,807) 1,087,688,842
Other Provision 38.00 5,153,169,873 1,884,222,185
Total Provision (D) 16,188,282,202 12,349,331,141
Total Profit/(Loss) before Taxes E =(C-D) 5,443,969,725 4,810,101,902
Provision for Taxation (F) 2,123,135,048 2,066,089,971
Current tax 13.06 522,384,698 479,628,131
Deferred tax 9.08.01 1,600,750,351 1,586,461,840
Net Profit/(Loss) after Tax G=(E-F) 3,320,834,677 2,744,011,931
Annual Report 2020

YEAR OF EXCELLENCE
Sonali Bank Limited

Consolidated Profit and Loss Account
2020 2019
Particulars Notes
Taka Taka
Appropriation:
General Reserve - -
Statutory Reserve 15.00 1,068,429,913 950,619,287
Reserve for CSR 16.02 50,000,000 50,000,000
Reserve for Unwanted Risk arising from Vault 15,000,000 -
1,133,429,913 1,000,619,287
Retained Surplus Carried Forward 2,187,404,764 1,743,392,644
Consolidated Earnings Per Share (EPS) 7.33 6.06


Director Director

Chairman
This is the consolidated Profit and loss account referred to in our separate report of even date.

ACNABIN
Md Moniruzzaman FCA
Date: 30 June 2021 Partner
Place: Dhaka ICAB Enrollment No. 787
DVC: 2106300787AS842829
214

Consolidated Cash Flow Statement
2020 2019
Particulars Notes
Taka Taka
A. Cash flows from operating activities
Interest received 71,839,930,963 63,417,775,326
Interest paid (42,197,305,680) (41,257,252,180)
Dividend Received 275,211,857 284,852,483
Fee and commission and exchange received 11,599,517,682 11,125,381,422
Recoveries of previously written-off loan & advances 526,392,195 396,700,000
Cash paid to employees (14,579,274,291) (14,136,240,853)
Cash paid to Suppliers (220,073,367) (259,409,922)
Income taxes paid (2,876,258,168) (2,260,268,634)
Cash received from other operating activities 39.00 550,852,048 1,087,855,608
Cash paid for other operating activities 40.00 (6,103,234,240) (4,946,175,099)
18,815,758,999 13,453,218,152
Changes in operating assets and liabilities
Loans & advances to customers (34,821,051,546) (86,808,502,339)
Other assets 41.00 (11,944,114,142) (31,072,116,985)
Deposits from other banks 11,673,473,189 (12,115,010,258)
Deposits from customers 88,276,372,320 73,190,193,011
Other liabilities 42.00 (14,923,589,791) 94,964,306,169
38,261,090,030 38,158,869,599
Net cash flow from operating activities 57,076,849,030 51,612,087,751
B. Cash flows from investing activities
(Purchase)/Sale of securities & bond (115,528,540,885) (64,102,366,329)
(Purchase)/sale of fixed assets (1,143,356,459) (614,240,092)
Net cash used in investing activities (116,671,897,344) (64,716,606,421)
C. Cash flows from financing activities
Proceed from share issue - -
Payments for redemption of loan capital & debt security (41,509,324) (54,997,245)
Dividends paid - -
Net cash used in financing activities (41,509,324) (54,997,245)

D. Net decrease in cash and cash equivalents (A+B+C) (59,636,557,638) (13,159,515,915)
E. Cash and cash-equivalents at beginning of the year 212,548,760,096 225,708,276,011
F. Cash and cash-equivalents at end of the year 43.00 152,912,202,458 212,548,760,096


Director Director
Date: 30 June 2021 Chairman
Place: Dhaka
Annual Report 2020

216
Consolidated Statement of Changes in Equity
(Amount in Taka)
Statutory Other Asset Revaluation Revaluation of Retained

YEAR OF EXCELLENCE
Particulars Paid up Capital Total Equity

Reserve Reserve Reserve Investment Earnings
Balance as at 01 January 2020 45,300,000,000 12,400,572,516 119,378,090 21,495,933,277 625,247,562 (11,842,586,699) 68,098,544,745
Surplus/(deficit) on account of revaluation of - - - - 14,207,284,079 - 14,207,284,079
HTM, HFT and Remeasured Securities (RMS)
Currency Conversion differences - - - - (56,453) (56,453)
Net Profit for the Year (after appropriation) - - - - - 3,320,834,677 3,320,834,677
Adjustment made for CSR during the year - - (18,664,274) - - - (18,664,274)
Transferred to Reserve for CSR - - 50,000,000 - - (50,000,000) -
Transferred to Statutory Reserve - 1,068,429,913 - - - (1,068,429,913) -
Transfer to Reserve for Unwanted Risk arising - - 15,000,000 - - (15,000,000) -
from Vault
Balance as at 31 December 2020 45,300,000,000 13,469,002,429 165,713,816 21,495,933,277 14,832,531,641 (9,655,238,388) 85,607,942,774
Balance as at 31 December 2019 45,300,000,000 12,400,572,516 119,378,090 21,495,933,277 625,247,562 (11,842,586,699) 68,098,544,745


Director Director
Chairman
Date: 30 June 2021

Place: Dhaka
Sonali Bank Limited

Balance Sheet
2020 2019
Particulars Notes
Taka Taka
PROPERTY AND ASSETS
Cash
Cash in Hand (Including Foreign Currencies) 7,300,875,335 7,691,434,742
Balance with Bangladesh Bank and its agent Bank(s) (Including 83,801,297,347 101,072,999,337
Foreign Currencies)
3.00 91,102,172,683 108,764,434,079
In Bangladesh 40,680,381,895 78,207,691,183
Outside Bangladesh 11,628,426,724 8,952,828,722
4.00 52,308,808,619 87,160,519,905
Money at Call on Short Notice 5.00 9,031,300,000 16,274,409,000
Investments
Government 550,695,158,356 426,936,594,330
Others 78,996,295,452 73,450,300,195
6.00 629,691,453,808 500,386,894,525
Loans and Advances
Loans, Cash Credit, Overdrafts, etc. 572,795,130,205 538,044,453,335
Bills Purchased and Discounted 13,437,589,499 12,981,839,923
7.00 586,232,719,704 551,026,293,258
Fixed Asset including Premises, Furniture and Fixture 8.00 33,891,294,563 33,465,560,566
Other Assets 9.00 188,976,015,085 175,523,239,044
Total Assets 1,591,233,764,462 1,472,601,350,378
LIABILITIES AND CAPITAL
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 11.00 549,250,183 604,175,183
Deposit and Other Accounts
Current Accounts & Other Accounts etc. 243,012,272,784 242,286,105,501
Bills Payable 11,043,066,246 10,909,899,482
Savings Bank Deposits 451,471,060,424 387,366,063,760
Fixed Deposits 553,247,976,484 518,225,712,555
Other Deposits 11,888,727 -
12.00 1,258,786,264,665 1,158,787,781,297
Other Liabilities 13.00 246,282,644,414 245,016,757,945
Total Liabilities 1,505,618,159,262 1,404,408,714,425
Paid up Capital 14.00 45,300,000,000 45,300,000,000
Statutory Reserve 15.00 13,469,002,429 12,400,572,516
Other Reserve 16.00 165,713,816 119,378,090
Revaluation Reserve 17.00 36,328,464,917 22,121,180,839
Surplus in Profit and Loss Account/Retained Earnings 18.00 (9,647,575,963) (11,748,495,492)
85,615,605,199 68,192,635,953
Total Liabilities and Shareholders' Equity 1,591,233,764,462 1,472,601,350,378
Annual Report 2020

YEAR OF EXCELLENCE
Sonali Bank Limited

Balance Sheet
2020 2019
Particulars Notes
Taka Taka
Off Balance Sheet Items
Letters of Guarantee 7,474,857,353 8,012,301,714
Irrevocable Letters of Credit 936,600,205,509 1,007,769,830,566
Bills for Collection 5,338,003,972 6,586,137,345
19.00 949,413,066,834 1,022,368,269,625
Other Commitments - -
Forward assets purchased and forward deposits placed - -
Undrawn formal standby facilities, credit lines and other -
commitments
Total Off Balance Sheet items including contingent liabilities 949,413,066,834 1,022,368,269,625
Net Asset Value (NAV) per Share 189.00 150.54
The annexed notes from 1 to 48 form an integral part of these financial statements.


Director Director

Chairman
This is the balance sheet referred to in our separate report of even date.

ACNABIN
Md Moniruzzaman FCA
Partner
218
Sonali Bank Limited

Profit and Loss Account
2020 2019
Particulars Notes
Taka Taka
Operating Income
Interest income 21.00 31,666,103,021 35,955,020,502
Interest paid on deposit and borrowing etc. 22.00 (41,906,606,914) (40,082,801,427)
Net Interest Income (10,240,503,893) (4,127,780,925)
Investment income 23.00 40,289,935,609 28,144,093,706
Commission, exchange and brokerage 24.00 12,273,491,482 11,623,395,915
Other operating income 25.00 550,347,411 1,087,701,782
53,113,774,502 40,855,191,403
Total Operating Income (A) 42,873,270,609 36,727,410,478
Operating Expenses
Salary and allowances 26.00 14,424,170,475 13,879,889,656
Rent, tax, insurance, electricity etc. 27.00 1,110,083,183 1,225,296,578
Legal expenses 28.00 34,104,542 41,639,440
Postage, stamps and telecommunication etc. 29.00 41,150,365 50,890,955
Printings, stationery, advertisements etc. 30.00 159,106,918 198,967,794
Chief Executive's salary and fees 31.00 7,806,871 7,682,635
Directors' fees 32.00 3,617,900 4,879,700
Auditors' fees 33.00 4,281,195 3,867,458
Depreciation & repair to bank's assets 34.00 793,706,908 580,469,556
Other expenses 35.00 4,768,310,483 3,633,399,132
Total Operating Expenses (B) 21,346,338,841 19,626,982,904
Profit Before Provision, Amortization and Taxes C=(A-B) 21,526,931,768 17,100,427,574
Provision for loans & advances 36.00 11,919,329,137 9,377,420,114
Provision for diminution in value of investment 37.00 (884,216,807) 1,087,688,842
Other provision 38.00 5,149,669,873 1,882,222,185
Total Provision (D) 16,184,782,202 12,347,331,141
Total Profit/(Loss) before Taxes E=(C-D) 5,342,149,566 4,753,096,433
Provision for Taxation (F) 2,107,800,124 2,043,048,745
Current tax 13.06 505,975,162 455,443,809
Deferred tax 9.08.01 1,601,824,962 1,587,604,936
Net Profit/(Loss) after Tax G=(E-F) 3,234,349,442 2,710,047,688
Annual Report 2020

YEAR OF EXCELLENCE
Sonali Bank Limited

2020 2019
Particulars Notes
Taka Taka
Appropriations
General Reserve - -
Statutory Reserve 15.00 1,068,429,913 950,619,287
Reserve for CSR 16.02 50,000,000 50,000,000
Reserve for Unwanted Risk arising from Vault 15,000,000 -
1,133,429,913 1,000,619,287
Retained Surplus Carried Forward 2,100,919,529 1,709,428,401
Earnings Per Share (EPS) 44.00 7.14 5.98



Director Director

Chairman
This is the consolidated balance sheet referred to in our separate report of even date.

ACNABIN
Md Moniruzzaman FCA
Partner
220
Sonali Bank Limited

Cash Flow Statement
2020 2019
Particulars Notes
Taka Taka
Interest received 71,729,522,997 63,329,237,013
Interest paid (42,186,496,393) (41,256,700,751)
Dividend Received 275,211,857 284,852,483
Fee and commission and exchange received 11,384,474,513 10,963,302,778
Recoveries of previously written-off loan & advances 526,392,195 396,700,000
Cash paid to employees (14,488,062,137) (13,957,763,648)
Cash paid to Suppliers (214,122,807) (259,125,602)
Income taxes paid 39 (2,894,962,346) (2,236,084,312)
Cash Received from Other Operating Activities 40 550,347,411 1,087,701,782
Cash Paid for Other Operating Activities (5,991,811,892) (4,935,561,802)
Cash generated from operating activities 18,690,493,398 13,416,557,942
Increase/(decrease) in operating assets and liabilities
Loans & advances to customers 41 (35,206,426,446) (86,860,493,999)
Other assets (11,845,710,106) (31,093,073,833)
Deposits from other banks 11,673,473,189 (12,115,010,258)
Deposits from customers 42 88,325,010,179 73,236,764,483
Other liabilities (15,144,981,417) 95,007,633,106
37,801,365,399 38,175,819,499
Net cash flow from operating activities 56,491,858,798 51,592,377,441
(Purchase)/Sale of securities & bond (115,041,751,178) (64,067,604,538)
(Purchase)/sale of fixed assets (1,143,076,002) (613,516,140)
Net cash used in investing activities (116,184,827,180) (64,681,120,678)
Payments for redemption of loan capital & debt security (54,925,000) (54,997,245)
Dividends paid - -
Net cash used in financing activities (54,925,000) (54,997,245)
D. Net decrease in cash and cash equivalents (A+B+C) (59,747,893,382) (13,143,740,483)
E. Cash and cash-equivalents at beginning of the year 43 212,266,473,384 225,410,213,867
F. Cash and cash-equivalents at end of the year 152,518,580,002 212,266,473,384


Director Director
Place: Dhaka
Annual Report 2020

Sonali Bank Limited
222
Statement of Changes in Equity
(Amount in Taka)

YEAR OF EXCELLENCE

Balance as at 01 January 2020 45,300,000,000 12,400,572,516 119,378,090 21,495,933,277 625,247,562 (11,748,495,492) 68,192,635,953
Surplus/deficit on account of revaluation of - - - - 14,207,284,079 - 14,207,284,079
Net Profit for the Year(after appropriation) - - - - - 3,234,349,442 3,234,349,442
Adjustment made for CSR during the year - (18,664,274) - - - (18,664,274)
Transferred to Reserve for CSR - - 50,000,000 - - (50,000,000) -
Transferred to Statutory Reserve - 1,068,429,913 - - - (1,068,429,913) -
Transfer to Reserve for Unwanted Risk arising - - 15,000,000 - - (15,000,000) -
from Vault
Balance as at 31 December 2020 45,300,000,000 13,469,002,429 165,713,816 21,495,933,277 14,832,531,641 (9,647,575,963) 85,615,605,199
Balance as at 31 December 2019 45,300,000,000 12,400,572,516 119,378,090 21,495,933,277 625,247,562 (11,748,495,492) 68,192,635,953


Director Director
Chairman
Date: 30 June 2021

Place: Dhaka
Sonali Bank Limited
Liquidity Statement, Asset and Liabilities Maturity Analysis
(Amount in Taka)
Up to 01 month 1-3 months 3-12 months 1-5 years More than 5
Particulars Total
maturity maturity maturity maturity years maturity
Assets
Cash in hand 91,102,172,683 - - - - 91,102,172,683
Balance with other banks and financial institutions - 21,176,808,459 29,967,558,977 1,019,300,000 145,141,183 52,308,808,619
Money at call on short notice 9,031,300,000 - - - - 9,031,300,000
Investments 1,272,123,422 116,475,100,000 99,112,295,598 222,207,653,400 190,624,281,388 629,691,453,808
Loans and Advances 53,838,058,443 29,852,812,521 180,548,721,561 143,077,605,715 178,915,521,465 586,232,719,704
Fixed assets including premises, furniture and fixtures 95,644,356 286,933,068 860,799,204 5,770,265,881 26,877,652,054 33,891,294,563
Other assets 342,567,889 1,967,890,987 12,578,765,367 55,999,976,232 118,086,814,610 188,976,015,085
Non-banking assets - - - - - -
Total Assets 155,681,866,793 169,759,545,035 323,068,140,706 428,074,801,228 514,649,410,700 1,591,233,764,462
Liabilities
Borrowings from Bangladesh Bank, other banks financial
institutions and agents - - - - 549,250,183 549,250,183
Deposits 547,771,548,364 117,327,848,532 408,210,320,666 93,038,965,219 92,437,581,885 1,258,786,264,665
Other accounts - - - - - -
Provision and other liabilities 68,987,665 876,442,546 7,765,542,134 56,543,245,667 181,028,426,402 246,282,644,414
Total Liabilities 547,840,536,029 118,204,291,078 415,975,862,800 149,582,210,886 274,015,258,470 1,505,618,159,262
Net Liquidity Gap (392,158,669,235) 51,555,253,957 (92,907,722,093) 278,492,590,341 240,634,152,230 85,615,605,199
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
Annual Report 2020

Place: Dhaka
YEAR OF EXCELLENCE
Sonali Bank Limited and its subsidiaries

Notes to the consolidated and separate financial statements
As at and for the year ended 31 December 2020
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 1226 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.WW
The registered office of Sonali Bank Limited is located at 35-42,44 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 731 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 58 (Fifty Eight) windows designated
in compliance with the rules of Islamic Shariah.
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 (SIL), 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.
224
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.
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 Intellect Limited, Bangladesh
Sonali Intellect Limited (hereinafter referred to as the ''Company'' of SIL) 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
Intellect Design Arena Limited, India, 35% by Sonali Bank Limited, 10% by Bangladesh Commerce Bank Ltd and
remaining 4% by Panthosoft Limited.
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 2020 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. The Bank also complied with the requirement of the following regulatory and legal
authorities:
i) The Bank Companies Act, 1991 (amended in 2018)
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 Rules, 1987
vi) Income Tax Ordinance and Rules 1984
vii) The Value Added Tax & Supplementary Duty Act, 2012
viii) The Value Added Tax & Supplementary Duty Rules, 2016
ix) Labor Act, 2006 (amended 2013) and Labor Rules 2015”
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 "available for sale" 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.
Annual Report 2020

YEAR OF EXCELLENCE
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. But as per DOS Circular no. 04, dated 24 November 2011, 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),BRPD Circular No.12 (20 August
2017), BRPD Circular No.15 ( 27 September 2017), BRPD Circular No. 01 (20 February 2018) and BRPD Circular
No. 56 (10 December 2020) 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 basis 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 elements of the
statement of changes in equity.
2.02.06 Financial instruments
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
IAS 32 cannot be made in the financial statements.
2.02.07 REPO Transactions
IFRS: As per IFRS 9, 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.
226
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 circular 14, dated 25 june 2003, 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: As per BRPD circular 14, dated 25 june 2003, 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.
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. But mostly the entity shall follow IAS 37 to
recognise off balance sheet items.
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 circular 14, dated 23 September 2012, 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).”
Annual Report 2020

YEAR OF EXCELLENCE
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 (SIL) and Sonali Exchange Co.
Inc. (SECI), USA as well as associates Sonali Bank (U.K) Ltd. and Sonali Intellect Ltd. as at 31 December 2020.
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 and Joint Ventures", the accounting
treatment regarding investment in associates have been addressed.
Conversion policy
The conversion policy of Sonali Exchange Co. Inc. and Sonali Bank (U.K) Ltd. is as follows:
Particulars Currency conversion rate SECI
For Assets & Liabilities Closing rate USD to BDT
For income & Expenses Average rate USD 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.
228
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 2020 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.
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-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 International Accounting Standards IAS
1 "Presentation of Financial Statements" and relevant guidelines of Bangladesh Bank.
2.12 Branch Accounting
The Bank has 1226 branches including two overseas branches as on 31 December 2020. 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)
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
Annual Report 2020

YEAR OF EXCELLENCE
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".
Impact of COVID-19
On 11 March 2020, the World Health Organization (WHO) declared a global pandemic due to Corona Virus
related respiratory disease, commonly known as COVID-19. To contain the spread of this disease along with
many other countries of the world, the Government of Bangladesh has also taken a number of measures such as
declaration of general holiday, enforcement of lock down, social distancing, etc. As a result of these measures,
all businesses and economic activities in the country have been adversely affected and this has also affected
the Bank. Although the business operation and profitability of the Bank have been impacted by COVID-19, but
due to the constantly changing nature of the situation and lack of certainty at present regarding how long this
situation will prevail, the potential impact of COVID-19 related matters on the Bank’s operation and financial
results cannot be reasonably assessed. The management of the Bank assessed the going concern and found
no uncertainty regarding this for the upcoming 12 (twelve) months due to COVID-19. The global economy
including Bangladesh has been seriously affected since March 2020 due to the outbreak of COVID-19 that has
caused serious disruption in Export and Import business, especially in the month of April and May 2020. As a
result, commission income has been reduced significantly during the 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.
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
230
2.16.02.03 REPO and Reverse REPO

Since 01 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).
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 and Joint Ventures'.
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.
Annual Report 2020

YEAR OF EXCELLENCE
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,
BRPD circular no. 01 dated 20 February 2018 and BRPD circular no. 56 dated 10 December 2020.
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 2020 includes bad/loss loan Taka 95,098.02
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 to All

Short term
Particulars SMEF BHs/ MBs/ other
agri- credit
Other Than SDs credit
HF LP
HF & LP
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%, as
per BRPD Circular no. 56, dated 10 December 2020 the special general provision is @ 1%.
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.
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."
232
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%
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
"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 2020."
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).
Annual Report 2020

YEAR OF EXCELLENCE
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
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 1995 as well as the year 1999. Case pending for the year 1996 to1998 and 2000 to 2015.
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.
234
2.17.04.02 Deferred tax

Deferred tax is calculated on the taxable/deductible temporary differences between tax base and carrying val-
ue of assets and liabilities as required by International Accounting Standards IAS-12: ‘Income Taxes’. Deferred
tax is not recognised for the following temporary differences:
z 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
z 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 2020."
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, CEO
& Managing Director , 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."
Annual Report 2020

YEAR OF EXCELLENCE
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.
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, BRPD
Circular no. 1 dated 20 February 2018 and BRPD Circular no. 56 dated 10 December 2020.
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 months.
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 2018) (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'.
236
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:
z it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation; or
z 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 Bangladesh 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
z Commission charged to customers on letters of credit and letters of guarantee are credited to income
at the time of effecting the transactions.
z Fee and Commission on bills discounted, purchased & others are recognized at the time of realization.
z 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.
Annual Report 2020

YEAR OF EXCELLENCE
2.19.09 Regulatory & Legal Compliance

The bank has complied with the requirement of following regulatory & legal authority:
(a) The Bank Companies Act, 1991 (Amended 2018)
(b) The Companies Act, 1994
(c) Rules, Regulation and Directives issued by Bangladesh Bank
(d) Security & Exchange Rules, 1987
(e) Security & Exchange Ordinance, 1969
(f) Security & Exchange Commission Rule, 1987
(g) The Income-Tax Ordiance and Rules ,1984
(h) The Value Added Tax & Supplementary Duty Act, 2012
(i) The Value Added Tax & Supplementary Duty Rules, 2016
(j) Labor Act, 2006 (Amended 2013) and Labor Rule, 2015
2.19.10 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.
2.19.11 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.
2.19.11.01 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 through borrowings and placement, currency swap and investing in
ii. Treasury
liquid assets such as short-term placements and corporate and government debt
securities.
Two (02) overseas branches of Sonali Bank Limited are situated at Kolkata & Siliguri
iii. Overseas Branches (Kolkata,
in India and operating banking business, money remittance etc. as per the head office
Siliguri)
instructions and other activities as permitted under the banking law of India.
Sonali Exchange Company Incorporated (SECI), USA, subsidiary company of Sonali
iv. Sonali Exchange Company
Bank Limited operates its business in USA. It performs the activities of money
Incorporated (SECI),
remittance, issue cheques, payment instruments and traveler’s cheque and other
USA
activities as permitted under the banking law of USA.
Established to do all kinds of merchant banking activities including issue management,
v. Sonali Investments Limited
underwriting, portfolio management and other transactions.
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2.19.12 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 2018) 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:
z Internal Control and Compliance Risk"
z Foreign Exchange Risk
z Credit Risk Management
z Asset Liability Management Risk
z Money Laundering Risk
z Information & Communication Technology Security Risk
z 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-II 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.
Annual Report 2020

YEAR OF EXCELLENCE
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 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 policies. 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.
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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 four 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.
Name Status in the Bank Status in the committee
No.
3 Mrs. Dr. Daulatunnaher Khanam Director Member
The risk management committee of the Board of Directors has been formed soon after the Central Bank's
instruction. The committee conducted 07 meetings in 2020 where the following issues have been discussed:
z Formulated risk management strategies, methodologies, guidelines and processes for risk
identification, risk assessment, risk controlling and monitoring.
z 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.
z Reviewed and updated all risk management policies and guidelines at least once in a year, if
necessary they will propose and place before the Board of Director for final approval.
z Evaluated, assessed and approved the record keeping and reporting system formulated by
the bank management.
z 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.
z Submitted the report of decision and recommendation made by the committee to the
Board on a quarterly basis.
z 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 688th board meeting of Sonali Bank Limited
held on 31 August 2020. The audit committee comprises of four 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
3 Mrs. Dr. Daulatunnaher Khanam Director Member
Annual Report 2020

YEAR OF EXCELLENCE
During the year 2020, the Audit Committee of the Board conducted 8 (Eight) meetings in 2020 which the
following important issues were reviewed/discussed along with others:
z Oversee the financial reporting process & liquidity position of the bank at regular basis.
z 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
2019.
z Reviewed performance of internal audit 2020.
z Reviewed the reconciliation performance of inter branch transaction accounts and advised
the management to keep it regular.
z Reviewed the comprehensive inspection report on SBL by Bangladesh bank as on 31.12.2019.
z 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.
z Reviewed existing policy of ICC, Risk Grading, Credit Policy, Quarterly Risk Management
Paper etc. and made recommendation to Board for approval.
z Reviewed unaudited quarterly & half yearly financial statements of the bank for the year
2020.
z Monitor internal control risk management process.
z Discussed and reviewed annual budget 2020 & revised budget 2019 and recommended to
the board with some amendments.
z Reviewed the compliance status of audit objections and advised the management to ensure
full compliance of regulatory, legal and significant issues meticulously.
z Reviewed the audit rating by internal audit on Anti Money Laundering of all branches for
the year 2019.
z Discuss and reviewed the effectiveness of annual audit plan 2020 and made recommendation
to the board for approval with suggested amendments.
z Reviewed existing risk management procedures along with implementation of core risk
management guidelines and advised the managements to implement the same more
effectively.
z 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 2019. The following
ratings had been awarded:
Date of
Valid till Rating Mode Long Term Short Term Outlook
Declaration
Govt. Support AAA ST-1
26-Nov-20 25-Nov-21 Without Govt. Stable
A ST-2
Support
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:
242
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:
z Board and senior management oversight,
z Sound capital assessment,
z Comprehensive assessment of risks,
z Monitoring and reporting,
z 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)
Annual Report 2020

YEAR OF EXCELLENCE
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.
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Compliance of International Accounting Standards (IASs) and International Financial Reporting Standards
2.29
(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:
IASs
Name of the IASs/IFRSs Status
/IFRSs 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
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
Financial Instruments: Presentation 32 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 Applied
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 N/A
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
Leases 16 Applied
* Subject to departure described in Note 2.02 Statement of Compliance
2.29.01 IFRS 16: Leases
IFRS 16, Lease is effective for the annual reporting periods beginning on or after 1 January 2019. IFRS 16 defines
that a contract is (or contains) a lease if the contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. IFRS 16 significantly changes how a lessee accounts for
operating leases. Under previous IAS 17, an entity would rent an office building or branch premises for several
years with such a rental agreement being classified as the operating lease would have been considered as a
balance sheet item. However, IFRS 16 does not require a lease classification test and hence all leases shall be
accounted for as on balance sheet item (except some limited exception i.e. short-term lease, leases for low-
value items).
Annual Report 2020

YEAR OF EXCELLENCE
Under IFRS 16, an entity shall be recognizing a right-of-use (ROU) asset (i.e. the right to use the 'office building,
branches, service center, call center, warehouse, etc.) and a corresponding lease liability. The asset and the
liability are initially measured at the present value of unavoidable lease payments. The depreciation of the leased
asset (ROU) and the interest on the lease liability is recognized in the profit or loss account over the lease term
replacing the previous heading ‘lease rent expenses’.
The Management is continuously assessing the recognition criteria of the components of IFRS 16 in its financial
statements covering the area of operations including the fixed assets and if found appropriate other than the
recognized area, will immediately be recognized as per the scope of IFRS 16- Leases accordingly.
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
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:
z Internal Control and Compliance (ICC);
z General Banking and Operation (GBO);
z Loans and Advances (LA); and
z Information and Communications Technology (ICT)
z General Banking and Operation (GBO);
z Loans and Advances (LA); and
z 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.
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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 these
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:
z Operational risk (people, systems, process, contractual, reputational and political)
z Exposure (financial, regulatory and customer);
z 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.
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.
Annual Report 2020

YEAR OF EXCELLENCE
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 earnings 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 30 June 2021.
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. The opening balances of fixed assets and its accumulated
depreciation was rearranged and changed by the India operation and SECI. The opening balance of fixed
assets and depreciation of the Bank were adjusted accordingly.
c) Conversion rate is calculated based on the simple average of buying and selling rate.
248
Amount in Taka
Particulars Notes Consolidated Bank
2020 2019 2020 2019
3.00 Cash
Cash in hand (Including
3.01 7,428,996,911 7,815,153,994 7,300,875,335 7,691,434,742
foreign currencies)
Balance with Bangladesh
Bank and its Agent
3.02 83,801,297,347 101,072,999,337 83,801,297,347 101,072,999,337
Bank (Including foreign
currencies)
91,230,294,258 108,888,153,331 91,102,172,683 108,764,434,079
3.01 Cash In Hand( Including foreign currencies)
Local Currency 3.01.01 6,733,529,375 7,579,055,928 6,733,529,375 7,579,055,928
Foreign Currency 3.01.02 695,467,536 236,098,066 567,345,961 112,378,814
7,428,996,911 7,815,153,994 7,300,875,335 7,691,434,742
3.01.01 Local Currency
Cash in hand 5,875,786,450 7,236,185,781 5,875,786,450 7,236,185,781
Cash with ATM A/C 303,580,528 230,112,149 303,580,528 230,112,149
Sonali VISA Transaction A/C 331,526,814 112,757,998 331,526,814 112,757,998
Islamic Banking Window 222,635,583 - 222,635,583 -
6,733,529,375 7,579,055,928 6,733,529,375 7,579,055,928
3.01.02 Foreign Currency
Foreign Currency in hand 524,230,585 102,448,695 524,230,585 102,448,695
Sonali Exchange Co. Inc 128,121,575 123,719,252 - -
Overseas Branches 43,115,376 9,930,119 43,115,376 9,930,119
695,467,536 236,098,066 567,345,961 112,378,814
Balance with Bangladesh Bank and its Agent Bank
3.02
(Including foreign currencies)
Local Currency 69,629,820,044 90,007,200,474 69,629,820,044 90,007,200,474
Foreign Currency 13,975,047,170 11,065,798,863 13,975,047,170 11,065,798,863
83,801,297,347 101,072,999,337 83,801,297,347 101,072,999,337
Mode of Deposit with Bangladesh Bank
Statutory Deposit 83,801,297,347 101,072,999,337 83,801,297,347 101,072,999,337
Non Statutory Deposit - - - -
83,801,297,347 101,072,999,337 83,801,297,347 101,072,999,337
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
accordance with the section 25 & 33 of the Bank Companies Act 1991 (Amended 2018) and subsequent MPD
Circular No. 03, 09 April 2020.
The Cash Reserve Requirement (CRR) on the bank's time and demand liabilities at the rate of 4% 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 Bangladesh 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. 3 dated 09 April 2020 of Bangladesh Bank (effective from 15 April 2020) refer to MPD
circular No. 04 dated 1 December 2010, all scheduled Banks are required to maintain a CRR minimum 3.5%
on daily basis based on weekly average demand and time liabilities of two months prior to current month (i.e.
CRR of December 2020 will be based on weekly average balance of October 2020 as per BRPD circular no. 12
dated 6 September 1998) and minimum 4% on bi-weekly basis. SBL has been maintaining its CRR on bi-weekly
basis.
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
Particulars Percentage
2020 2019
Average demand and time liabilities 1,158,963,916,000 1,111,801,851,000
Required Reserve 4.0% 46,358,557,000 59,807,836,000
Reserve held with Bangladesh Bank* (Average) 7.7% 89,600,636,000 87,611,087,000
Surplus/(Deficit) 3.7% 43,242,079,000 27,803,251,000
*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 89,600,636,000.00 which indicates that the reserve held with Bangladesh Bank is not below the required
reserve.
Amount in Taka
Particulars Percentage
2020 2019
Average demand and time liabilities 1,158,963,916,000 1,111,801,851,000
Required Reserve 13.00% 150,665,309,000 134,570,345,000

Actual Reserve held with Bangladesh Bank 50.02% 579,700,692,000 462,194,313,862
Surplus/(Deficit) 37.02% 429,035,383,000 327,623,968,862
Grand Total of CRR &SLR
Required Reserve 197,023,866,000 194,378,181,000
Actual Reserve held with Bangladesh Bank 669,301,328,000 549,805,400,862
Surplus/(Deficit) 472,277,462,000 355,427,219,862
3.03.02.1 Actual Reserve held as Statutory Liquidity Ratio

(SLR)
Cash in hand 7,034,753,558 7,691,434,742
Excess of CRR 43,242,079,000 27,803,251,000
Balance with Bangladesh Bank and its agent bank(s) - -
Unencumbered approved securities (HFT) 180,951,361,684 133,223,346,568
Unencumbered approved securities (HTM) 221,514,229,484 168,361,967,307
Remeasured Securities Account 79,572,009,388 61,962,846,334
Bangladesh Government Investment Sukuk (Ijarah
5,279,450,000 -
Sukuk)
Other Eligible Securities 42,106,808,886 63,151,467,910
579,700,692,000 462,194,313,862
Amount in Taka
2020 2019 2020 2019
In Bangladesh
Local Currency 4.01 32,180,741,503 73,371,251,186 32,180,741,183 73,371,241,183
Foreign Currency 4,242,500,000 4,836,450,000 4,242,500,000 4,836,450,000
Islamic Banking Window 4,257,140,712 - 4,257,140,712 -
40,680,382,215 78,207,701,186 40,680,381,895 78,207,691,183
Outside Bangladesh 4.02 11,893,927,285 9,111,386,179 11,628,426,724 8,952,828,722

52,574,309,500 87,319,087,365 52,308,808,619 87,160,519,905
250
4.01 Balance with other Banks and Financial Institutions

In Bangladesh :
Amount in Taka
Transaction
Particulars Consolidated Bank
Currency
2020 2019 2020 2019
Bank
AB Bank Ltd BDT - 2,000,000,000 - 2,000,000,000
Bangladesh Krishi Bank BDT - 2,000,000,000 - 2,000,000,000
Basic Bank Ltd. BDT 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000
BRAC Bank Ltd. BDT - 2,000,000,000 - 2,000,000,000
Modhumoti Bank Ltd. BDT - 900,000,000 - 900,000,000
Rupali Bank Ltd. BDT - 5,000,000,000 - 5,000,000,000
Dhaka Bank Ltd. BDT - 1,000,000,000 - 1,000,000,000
EXIM Bank Ltd. BDT - 2,000,000,000 - 2,000,000,000
Padma Bank Ltd. BDT 1,900,000,000 1,900,000,000 1,900,000,000 1,900,000,000
Midland Bank Ltd. BDT - 900,000,000 - 900,000,000
IFIC Bank Ltd. BDT - 4,200,000,000 - 4,200,000,000
ICB Islamic Bank Ltd BDT 145,142,558 145,142,558 145,142,558 145,142,558
Jamuna Bank Ltd. BDT - 1,500,000,000 - 1,500,000,000
National Bank Ltd. BDT 3,500,000,000 6,200,000,000 3,500,000,000 6,200,000,000
NRB Global bank Ltd. BDT 600,000,000 600,000,000 600,000,000 600,000,000
Mercantile Bank Ltd. BDT - 2,800,000,000 - 2,800,000,000
NRB Commerce Bank Ltd. BDT - 500,000,000 - 500,000,000
Rajshahi Krishi Unnayan
BDT 1,000,000,000 - 1,000,000,000 -
Bank (RAKAB)
National Cerdit and
BDT - 1,000,000,000 - 1,000,000,000
Commerce Bank Ltd.
Karmashangsthan Bank Ltd. BDT 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
One Bank Ltd BDT - 2,700,000,000 - 2,700,000,000
Rajshahi Krishi Unnayan Bank BDT - 1,000,000,000 - 1,000,000,000
Standard Bank Ltd. BDT - 1,000,000,000 - 1,000,000,000
Southeast Bank Ltd. BDT - 3,000,000,000 - 3,000,000,000
Meghna Bank Ltd. BDT - 700,000,000 - 700,000,000
SBL, Foreign Ex. Corp. Br. BDT 186,068,617 135,102,545 - -
Dhaka Bank Islamic
BDT 320 1,423 - -
Banking Br.
SBL Uttara Br. BDT 3,199,092 4,453,488 - -
UCBL, Bijoynagar Br. BDT - 8,580 - -
SBL Mirpur Shilpa Elaka Br. BDT 3,456,221 4,530,038 - -
South Bangla Agricultural
BDT 600,000,000 1,200,000,000 600,000,000 1,200,000,000
& Commerce Bank Ltd.
Social Islami Bank Ltd. BDT - 2,000,000,000 - 2,000,000,000
UCB Ltd. BDT - 2,000,000,000 - 2,000,000,000
Union Bank Ltd. BDT 1,250,000,000 450,000,000 1,250,000,000 450,000,000
Sub Total 12,187,866,808 51,839,238,632 11,995,142,558 51,695,142,558
Non-Bank Financial
Institutions
Bangladesh Finance &
BDT 200,000,000 200,000,000 200,000,000 200,000,000
Investment Co. Ltd.
CVC Finance Limited BDT 50,000,000 - 50,000,000 -
Bay Leasing & Investment BDT 105,000,000 110,000,000 105,000,000 110,000,000
FAS Finance & Investment Ltd. BDT 129,761,500 129,761,500 129,761,500 129,761,500
Annual Report 2020

YEAR OF EXCELLENCE
Islami Finance and

BDT 70,000,000 80,000,000 70,000,000 80,000,000
Investment Ltd.
Investment Corporation of
BDT 15,000,000,000 15,000,000,000 15,000,000,000 15,000,000,000
Bangladesh
GSP Finance Co. Ltd BDT 300,000,000 300,000,000 300,000,000 300,000,000
CAPM Venture Capital Ltd. BDT - 50,000,000 - 50,000,000
International Leasing &
BDT 189,600,000 189,600,000 189,600,000 189,600,000
Finance Service Ltd.
Meridian Finance Ltd. BDT 30,000,000 30,000,000 30,000,000 30,000,000
IPDC BDT - 400,000,000 - 400,000,000
IIDFC BDT 190,000,000 200,000,000 190,000,000 200,000,000
People's Leasing &
BDT 400,000,000 400,000,000 400,000,000 400,000,000
Financial Services Ltd.
Bangladesh Industrial Finance
BDT 200,000,000 200,000,000 200,000,000 200,000,000
Company Ltd. (BIFC)
National Housing Finance Ltd. BDT - 70,000,000 - 70,000,000
Premier Leasing & Finance Ltd BDT 421,237,125 426,737,125 421,237,125 426,737,125
Lanka Bangla Finance Ltd BDT 710,000,000 910,000,000 710,000,000 910,000,000
Lanka Alliance Finance Ltd. 50,000,000 50,000,000 50,000,000 50,000,000
Reliance Finance Ltd. BDT - 180,000,000 - 180,000,000
Fareast Finance &
BDT 150,000,000 150,000,000 150,000,000 150,000,000
Investment Company Ltd.
First Finance Ltd. BDT 150,000,000 150,000,000 150,000,000 150,000,000
DBH BDT - 550,000,000 - 550,000,000
IDLC BDT - 1,200,000,000 - 1,200,000,000
Aviva Finance Limited BDT 180,000,000 - 180,000,000 -
Strategic Finance & Inv Ltd. BDT 1,000,000,000 - 1,000,000,000 -
National Finance Ltd. BDT 50,000,000 50,000,000 50,000,000 50,000,000
Phoenix Finance Ltd. BDT 350,000,000 350 0 350,000,000 350,000,000
Uttara Finance &
BDT 260,000,000 300,000,000 260,000,000 300,000,000
Investment Ltd.
Sub Total 20,185,598,625 21,676,098,625 20,185,598,625 21,676,098,625
Total 32,373,465,433 73,515,337,257 32,180,741,183 73,371,241,183
Less: Inter Company
192,723,930 144,086,071 - -
Balance Eliminated
Grand Total 32,180,741,503 73,371,251,186 32,180,741,183 73,371,241,183
4.02 Balance Held with Foreign Banks (Outside Bangladesh)
Foreign Banks 4.02.01 9,844,308,459 7,923,310,272 9,844,308,459 7,923,310,272
Asian Clearing Union 4.02.02 526,914,692 205,787,408 526,914,692 205,787,408
Overseas Branches 4.02.03 1,257,203,572 823,731,041 1,257,203,572 823,731,041

11,893,927,285 9,111,386,179 11,628,426,724 8,952,828,722
252
4.02.01 Balance held with Foreign Bank Debit Balance

SL.No. Particulars As at 31 December 2020
Foreign
FC amount Exchange rate Amount in Taka
Currency
1 Sonali Bank (UK) Ltd. London EURO 2,680.60 103.87 278,441
2 Sonali Bank (UK) Ltd. London USD 21,005,604.00 84.80 1,781,298,395
3 Sonali Bank (UK) Ltd. London USD 4,521,187.32 84.80 383,401,658
5 Sonali Bank (UK) Ltd. London USD 682,842.08 84.80 57,905,760
9 Sonali Bank (UK) Ltd. London GBP 281,490.07 114.50 32,230,163
12 Sonali Bank (UK) Ltd. London GBP 1,577,993.73 114.50 180,677,757
13 Sonali Bank (UK) Ltd. London GBP 27.00 114.50 3,091
14 Bank Of America, NY USD 11,610.35 84.80 984,570
15 Zaire Bank, London GBP 276,433.40 114.50 31,651,182
16 Net West Plc, London USD 50,478.14 84.80 4,280,602
17 Chase Chemical Bank USD 693,634.15 84.80 58,820,939
18 Sonali Bank Ltd Kolkata USD 9,474.50 84.80 803,448
20 Bangladesh Foreign Post office USD 2,257,506.50 84.80 191,439,034
21 Standard Chartered Bank, Germany. EURO 326,269.38 103.87 33,890,546
22 Euno credito Italiana Spa. Italy EURO 199,008.05 103.87 20,671,543
23 Habib American BANK, N.Y. USD 270,638.00 84.80 22,950,400
24 Habib American BANK, N.Y. USD 5,072,723.55 84.80 430,172,537
25 JP Morgan Chase, NY USD 4,274,553.37 84.80 362,486,828
26 Standard Chartered Bank NY USD 8,123,623.59 84.80 688,892,216
27 Standard Chartered Bank NY USD 23,779,434.86 84.80 2,016,522,233
28 Mashreq Bank N.Y USD 1,695,749.77 84.80 143,801,446
29 Citi Bank N.Y USD 24,886,929.68 84.80 2,110,439,012
30 Standard Chartered Bank London GBP 605,776.52 114.50 69,360,442
31 Sonali Bank (UK) Ltd. London GBP 1,002,679.22 114.50 114,805,167
32 Dan Dansk DKK, Bank DKK 5,166.15 13.97 72,170
33 Union Bank Of Switzerland CHF 808,809.61 95.87 77,544,298
34 Bank of China Ltd CNY 55,373,145.37 12.98 719,009,218
35 Bank of Tokyo Ltd. Japan Yen 45,765,310.00 0.82 37,468,059
36 Standard Chartered Bank, Japan Yen 8,290,064.00 0.82 6,787,075
37 Al-Raji Bank, Inv SAR 4,685,123.05 22.60 105,871,599
38 Sonali Bank (UK) Ltd. London EURO 45,135.72 103.87 4,688,378
Total Debit Balance (A) 219,969,732.36 9,978,515,583
Annual Report 2020

YEAR OF EXCELLENCE
4.02.02 Balance held with Foreign Bank Credit Balance
SL. No. Particulars As at 31 December 2020
Foreign Currency FC amount Exchange rate Amount in Taka

1 Doha Bank, Qatar USD 3,231.00 84.80 273,992
2 Deutsche Bank TrustCo. NY USD 164,865.94 84.80 13,980,813
3 Net West Plc, London GBP 19,300.09 114.50 2,209,819
4 Amex Bank NY USD 14,491.88 84.80 1,228,927
5 Wells Fargo Bank NY USD 13,682.67 84.80 1,160,306
6 H.S.B.C Bank USA USD 193,457.09 84.80 16,405,374
7 Bank Of Montreal, Canada CAD 1,460.00 66.15 96,583
8 Aktif Yatirim Bank A.S Istanbul AED 0.92 22.94 21
9 H.S.B.C Bank Australia AUD 6,872.55 64.50 443,278
10 Commerz Bank Frankfurt, Germany EURO 492,388.50 103.87 51,145,821
11 BHF Bank, Germany EURO 33,142.92 103.87 3,442,652
12 Standard Chartered Bank , Singapore SGD 685,808.66 63.89 43,819,538
Total Credit Balance (B) 1,628,702.22 134,207,124
Grand Total (A-B) 218,341,030.15 9,844,308,459
4.02.03 Balance Held with Asian Clearing Union (ACU)

1 Sonali Bank Ltd Kolkata EURO 76,930.26 103.87 7,990,969
2 Myanmar Economic Bank EURO 150,000.00 103.87 15,580,935
3 Myanmar Economic Bank USD 200,000.00 84.80 16,960,220
4 Nepal Bank Ltd. Kathmandu, Nepal USD 4,263.77 84.80 361,572
5 Myanmar Foreign Trade Bank USD 227,116.31 84.80 19,259,713
6 Bank of Bhutan USD 47,279.65 84.80 4,009,366
7 Habib Metropolitan Bank Ltd. USD 1,304,100.88 84.80 110,589,189
8 Myanmar Investment & Com. Bank USD 200,000.00 84.80 16,960,220
9 Standard Chartered Bank, Karachi USD 5.48 84.80 465
10 Sonali Bank Ltd Kolkata USD 2,909,546.18 84.80 246,732,717
11 Meezan Bank Limited USD 1,029,873.68 84.80 87,334,421
12 Bank of Ceylon, Srilanka USD 13,383.14 84.80 1,134,905
Total 6,162,499.35 526,914,692
4.02.04 Balance Held with Overseas Branches of Sonali Bank Limited
1 Overseas Branches (Kolkata & Siliguri) IRS 1,087,264,181 1.1563 1,257,203,572
Total 1,087,264,181 1,257,203,572
254
Amount in Taka
2020 2019 2020 2019
4.03 Maturity Grouping of
Balance with Other Banks
& Financial Institutions
On Demand - 5,440,000,000 - 5,440,000,000
Less than three months 21,176,808,459 47,952,354,609 21,176,808,459 47,952,354,609
More than three months
30,233,059,857 32,954,853,073 29,967,558,977 32,796,285,613
but less than one year
More than one year but less
1,019,300,000 971,879,683 1,019,300,000 971,879,683
than five years
More than five years 145,141,184 - 145,141,184 -
52,574,309,500 87,319,087,365 52,308,808,619 87,160,519,905
5.00 Money at Call on Short
Notice
In Bangladesh 5.01 9,031,300,000 16,238,700,000 9,031,300,000 16,238,700,000
Outside Bangladesh 5.02 - 35,709,000 - 35,709,000
9,031,300,000 16,274,409,000 9,031,300,000 16,274,409,000
5.01 In Bangladesh
Bank
AB Bank Ltd - 1,000,000,000 - 1,000,000,000
ICB Islamic Bank Ltd. 173,200,000 173,200,000 173,200,000 173,200,000
Padma Bank Ltd 500,000,000 514,500,000 500,000,000 514,500,000
NRB Bank Ltd 100,000,000 - 100,000,000
NRB Global Bank Ltd. - 500,000,000 - 500,000,000
The City Bank Ltd. 200,000,000 1,010,000,000 200,000,000 1,010,000,000
Modhumoti Bank Ltd. 250,000,000 500,000,000 250,000,000 500,000,000
NRB Commercial Bank Ltd. 1,100,000,000 490,000,000 1,100,000,000 490,000,000
NCC Bank Ltd. - 500,000,000 - 500,000,000
DBBL 210,000,000 - 210,000,000 -
Dhaka Bank Ltd. 1,000,000,000 - 1,000,000,000 -
Rupali Bank Ltd. - 4,250,000,000 - 4,250,000,000
Standard Bank Ltd. - 400,000,000 - 400,000,000
Jamuna Bank Ltd. - 500,000,000 - 500,000,000
Midland Bank Ltd 300,000,000 700,000,000 300,000,000 700,000,000
National Bank Ltd 510,000,000 500,000,000 510,000,000 500,000,000
Bangladesh Commerce
- 50,000,000 - 50,000,000
Bank Ltd
Bank Al Falah Ltd. 600,000,000 - 600,000,000 -
Sub Total 4,943,200,000 11,087,700,000 4,943,200,000 11,087,700,000
Non-Bank Financial
Institutions
DBH - 200,000,000 - 200,000,000
BFIC 100,000,000 100,000,000 100,000,000 100,000,000
Fareast Finance 151,800,000 151,500,000 151,800,000 151,500,000
First Finance Ltd. 98,000,000 94,700,000 98,000,000 94,700,000
FAS Finance 68,600,000 68,300,000 68,600,000 68,300,000
ICB 1,500,000,000 1,990,000,000 1,500,000,000 1,990,000,000
Lanka Bangla Finance 290,000,000 280,000,000 290,000,000 280,000,000
International Leasing
259,500,000 148,600,000 259,500,000 148,600,000
Company Limited
Midas Finance Ltd. 60,000,000 60,000,000 60,000,000 60,000,000
Phoenix Finance 134,400,000 152,600,000 134,400,000 152,600,000
People Leasing 160,000,000 160,000,000 160,000,000 160,000,000
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Prime Finance and
112,900,000 105,000,000 112,900,000 105,000,000
Investment Ltd.
Reliance Finance Ltd. 127,400,000 140,000,000 127,400,000 140,000,000
Premier Leasing 157,300,000 135,900,000 157,300,000 135,900,000
BD Finance Ltd. 68,400,000 82,200,000 68,400,000 82,200,000
Bay Leasing & Investment Ltd. 100,000,000 80,000,000 100,000,000 80,000,000
CAPM Venture Capital Ltd. - 90,000,000 - 90,000,000
GSP Finance and
75,000,000 83,800,000 75,000,000 83,800,000
Investment Ltd.
Meridian Finance and
88,000,000 90,000,000 88,000,000 90,000,000
Investment Ltd.
National Finance and
40,000,000 40,000,000 40,000,000 40,000,000
Investment Ltd.
IPDC 150,000,000 190,000,000 150,000,000 190,000,000
IIDFC 120,000,000 120,000,000 120,000,000 120,000,000
CVC Finance Limited 87,100,000 - 87,100,000
Uttara Finance - 160,000,000 - 160,000,000
Union Capital 139,700,000 148,400,000 139,700,000 148,400,000
IDLC Finance - 280,000,000 - 280,000,000
Sub Total 4,088,100,000 5,151,000,000 4,088,100,000 5,151,000,000
Grand Total 9,031,300,000 16,238,700,000 9,031,300,000 16,238,700,000
5.02 Outside Bangladesh
Overseas Branches - 35,709,000 - 35,709,000
6.00 Investments
Government Securities 6.01 550,695,158,356 426,936,594,330 550,695,158,356 426,936,594,330
Other Investments 6.02 79,930,521,522 73,897,736,558 78,996,295,452 73,450,300,195
Total 630,625,679,878 500,834,330,888 629,691,453,808 500,386,894,525
6.01 Government Securities
(Considered as SLR)
Treasury Bills-Primary 6.01.01 134,867,140,485 66,270,820,381 134,867,140,485 66,270,820,381
Government Notes/Bonds/ 6.01.02
354,557,688,542
Other securities 409,078,841,521 354,557,688,542 409,078,841,521
Bangladesh Government
5,279,450,000 - 5,279,450,000 -
Investment Sukuk (Ijarah Sukuk)
Prize Bond 76,298,700 67,110,400 76,298,700 67,110,400
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 - 4,952,546,797 - 4,952,546,797
Sub Total 550,220,303,106 426,766,738,520 550,220,303,106 426,766,738,520
Total Government Securities 550,695,158,356 426,936,594,330 550,695,158,356 426,936,594,330
6.01.01 Treasury Bills-Primary
91 days Treasury Bills 91,055,027,918 39,184,435,180 91,055,027,918 39,184,435,180
5 year Treasury Bills - - - -
30 days Bangladesh Bank Bill - - - -
134,867,140,485 66,270,820,381 134,867,140,485 66,270,820,381
256
Amount in Taka
2020 2019 2020 2019
6.01.02 Government Notes/Bonds/
Other securities
2 years Bangladesh Govt.
45,103,167,552 22,842,554,000 45,103,167,552 22,842,554,000
Treasury Bond (BGTB)
83,096,018,903 83,096,018,903
Treasury Bond (BGTB) 108,613,283,749 108,613,283,749
100,516,187,629 100,350,930,784 100,516,187,629 100,350,930,784
57,673,461,471 47,825,314,970 57,673,461,471 47,825,314,970
56,122,204,120 43,464,532,885 56,122,204,120 43,464,532,885
11-13 years Treasury Bond
3,926,400,000 5,354,200,000 3,926,400,000 5,354,200,000
(BJMC)
8-15 years Treasury Bond
31,364,700,000 31,364,700,000 45,864,700,000
(BPC) 45,864,700,000
3 Years Treasury Bond
1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
(FRTB)
3-7 Years Treasury Bond
4,759,437,000 4,759,437,000 4,759,437,000 4,759,437,000
(SBL)
409,078,841,521 354,557,688,542 409,078,841,521 354,557,688,542
6.01.03 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.
Held to Maturity (HTM) 221,514,229,484 231,513,435,218 221,514,229,484 231,513,435,218
Held for Trading ( HFT) 6.01.03a 243,778,315,534 133,223,346,568 243,778,315,534 133,223,346,568
Remeasured Securities
79,572,009,388 61,962,846,334 79,572,009,388 61,962,846,334
Account
Investment Sukuk (Ijarah 5,279,450,000 - 5,279,450,000 -
Sukuk)
550,144,004,406 426,699,628,120 550,144,004,406 426,699,628,120
6.01.03a As per Bangladesh Bank Instruction, ICB share has been kept out of portfolio Investment and categorized as
HFT component. Details in Annexure-A.
6.02 Other Investments:
Ordinary Share 6.02.01 21,079,821,756 14,682,460,910 20,145,595,686 14,235,024,547
Debentures of private
755,500 755,500 755,500 755,500
sectors
Security Deposit with
9,614,791 9,692,560 9,614,791 9,692,560
Central Bank of India
Investment in foreign
5,088,066,000 5,094,000,000 5,088,066,000 5,094,000,000
currency
Private Bond 6.02.02 53,679,995,303 53,999,995,303 53,679,995,303 53,999,995,303
Sub-total 79,858,253,350 73,786,904,273 78,924,027,280 73,339,467,910
Total Other Investments 79,930,521,522 73,897,736,558 78,996,295,452 73,450,300,195
6.02.01 Ordinary Shares
Quoted-Fully paid-up-
7,789,259,906 6,908,006,707 7,789,259,906 6,908,006,707
ordinary share*
Unquoted-Fully paid-up-
12,356,335,780 7,327,017,840 12,356,335,780 7,327,017,840
ordinary share
Sonali Investment limited 934,226,070 447,436,363 - -
21,079,821,756 14,682,460,910 20,145,595,686 14,235,024,547
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Investment in Shares & Bond
Number of Market Price Cost Price
Particulars
Company 2020 2020 2019
Listed Securities 153 6,039,089,338 7,789,259,906 6,908,006,707
Non-Listed Securities 13 12,356,335,780 12,356,335,780 7,327,017,840
Total 166 18,395,425,118 20,145,595,686 14,235,024,547
Sector wise investment
Listed securities
Sector
Company 2020 2020 2019
Bank and NBFI 51 2,591,452,571 3,303,725,127 3,258,591,892
Insurance Companies 4 51,865,804 100,892,011 100,892,579
Fuel and Power Co. 21 834,325,589 1,127,615,580 803,339,045
Manufacturing & Other 77 2,561,445,374 3,257,027,187 2,745,183,192
Total 153 6,039,089,338 7,789,259,906 6,908,006,707
Non-Listed Securities
Sector
Company 2020 2020 2019
Bank and NBFI 5 1,972,510,480 1,972,510,480 1,943,194,040
Manufacturing 2 10,337,900 10,337,900 10,337,900
Others 6 10,373,487,400 10,373,487,400 5,373,485,900
Total 13 12,356,335,780 12,356,335,780 7,327,017,840
The unlisted investments are shown at cost because the fair value cannot be measured reliably.
Detail shown in Annexure-H.
6.02.02 Private bond
Prime Bank Ltd. Bond 1,200,000,000 1,300,000,000 1,200,000,000 1,300,000,000
Eastern Bank Bond 700,000,000 800,000,000 700,000,000 800,000,000
Bank Asia Bond 1,000,000,000 1,300,000,000 1,000,000,000 1,300,000,000
Mutual Trast Bank Bond 1,500,000,000 1,350,000,000 1,500,000,000 1,350,000,000
Jamuna Bank Bond 1,300,000,000 1,600,000,000 1,300,000,000 1,600,000,000
UCBL Bank Bond 900,000,000 1,100,000,000 900,000,000 1,100,000,000
SIBL Bank Bond 100,000,000 200,000,000 100,000,000 200,000,000
Standard Bank Bond 960,000,000 1,320,000,000 960,000,000 1,320,000,000
One Bank Bond 1,400,000,000 1,600,000,000 1,400,000,000 1,600,000,000
IFIC Bank Bond 600,000,000 800,000,000 600,000,000 800,000,000
Dhaka Bank Bond 1,480,000,000 1,640,000,000 1,480,000,000 1,640,000,000
Trust Bank Bond 810,000,000 1,130,000,000 810,000,000 1,130,000,000
Southeast Bank Bond 1,500,000,000 1,850,000,000 1,500,000,000 1,850,000,000
AB Bank Bond 2,000,000,000 800,000,000 2,000,000,000 800,000,000
Premier Bank Bond 1,550,000,000 1,550,000,000 1,550,000,000 1,550,000,000
Pubali Bank Bond 1,800,000,000 2,000,000,000 1,800,000,000 2,000,000,000
The City Bank Bond 1,500,000,000 1,500,000,000 1,500,000,000 1,500,000,000
Dutch Bangla Bank Bond 1,800,000,000 1,000,000,000 1,800,000,000 1,000,000,000
EXIM Bank Bond 1,800,000,000 2,000,000,000 1,800,000,000 2,000,000,000
National Bank Bond 400,000,000 500,000,000 400,000,000 500,000,000
Padma Bank Bond 900,000,000 900,000,000 900,000,000 900,000,000
Shahjalal Islami Bank Bond 750,000,000 750,000,000 750,000,000 750,000,000
Al Arafa Islami Bank Bond 500,000,000 500,000,000 500,000,000 500,000,000
Mercantile Bank Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Islami Bank Bond 2,400,000,000 2,400,000,000 2,400,000,000 2,400,000,000
Janata Bank Bond 12,000,000,000 12,000,000,000 12,000,000,000
12,000,000,000
Rupali Bank Bond 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000
258
Amount in Taka
2020 2019 2020 2019
NCC Bank Bond 500,000,000 500,000,000 500,000,000 500,000,000
First Security Islami Bank Bond 500,000,000 500,000,000 500,000,000 500,000,000
Union Bank Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Ashugonj Power Bond (Corp.) 500,000,000 500,000,000 500,000,000 500,000,000
IPDC Finance Bond 250,000,000 250,000,000 250,000,000 250,000,000
RML Zero Coupon Bond
279,995,303 359,995,303 279,995,303 359,995,303
(Corporate)
Beximco Communication Bond 3,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000
ICB Bond 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000
Lanka Bangla Finance Bond 800,000,000 - 800,000,000 -
North West Power Gen.
1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Bond (Corporate)
53,679,995,303 53,999,995,303 53,679,995,303 53,999,995,303
6.03 Classification of Statutory and Non-statutory Investment

Statutory Investment Portfolio 6.03.01 550,618,859,657 426,869,483,930 550,618,859,657 426,869,483,930
Non-Statutory Investment Portfolio 6.03.02 80,006,820,221 73,964,846,958 79,072,594,151 73,517,410,595
630,625,679,878 500,834,330,888 629,691,453,808 500,386,894,525
6.03.01 Statutory Investment Portfolio
Held to Maturity (HTM) 221,514,229,484 231,513,435,218 221,514,229,484 231,513,435,218
Held for Trading ( HFT) 243,778,315,534 133,223,346,568 243,778,315,534 133,223,346,568
Remeasured Securities A/c 79,572,009,388 61,962,846,334 79,572,009,388 61,962,846,334
Investment Sukuk 5,279,450,000 - 5,279,450,000 -
(Ijarah Sukuk)
550,618,859,657 426,869,483,930 550,618,859,657 426,869,483,930
6.03.02 Non-Statutory Investment Portfolio
Ordinary Share 6.02.01 21,079,821,756 14,682,460,910 20,145,595,686 14,235,024,547
Debentures of private sectors 755,500 755,500 755,500 755,500
Security Deposit with
9,614,790 9,692,559 9,614,790 9,692,559
Central Bank of India
Investment in foreign currency 5,088,066,000 5,094,000,000 5,088,066,000 5,094,000,000
Private Bond 6.02.02 53,679,995,303 53,999,995,303 53,679,995,303 53,999,995,303
Prize Bond 76,298,700 67,110,400 76,298,700 67,110,400
80,006,820,221 73,964,846,958 79,072,594,151 73,517,410,595
6.04 Maturity grouping of Investments as follows :

On demand 1,272,123,422 5,019,657,197 1,272,123,422 5,019,657,197
Less than three months 56,747,200,000 56,747,200,000

116,475,100,000 116,475,100,000
More than three months
99,112,295,598 52,901,624,500 99,112,295,598 52,901,624,500
but less than one year
More than one year but less
222,207,653,400 172,750,840,400 222,207,653,400
than five years 172,750,840,400
Above five years 191,558,507,458 213,415,008,791 212,967,572,428

190,624,281,388
630,625,679,878 500,834,330,888 629,691,453,808 500,386,894,525
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
7.00 Loans and advances
Loans, cash credits and overdrafts 7.03 574,511,908,573 540,146,606,603 572,795,130,205 538,044,453,335
Bills purchased and discounted 7.04 13,437,589,499 12,981,839,923 13,437,589,499 12,981,839,923
587,949,498,072 553,128,446,526 586,232,719,704 551,026,293,258
7.01 Maturity Grouping of Loans and Advances (Excluding Bills purchased and discounted)
Loans and advances are repayable:
Repayable on demand 53,838,058,443 57,017,337,684 53,838,058,443 57,017,337,684
Not more than 3 months 21,822,554,317 23,225,181,114 21,822,554,317 23,225,181,114
More than 3 months but
161,927,465,937 159,825,312,669
not more than 1 year 176,858,168,633 175,141,390,265
More than 1 year but not
143,077,605,715 118,731,281,494 143,077,605,715 118,731,281,494
more than 5 years
More than 5 years 178,915,521,465 179,245,340,373 178,915,521,465 179,245,340,373
574,511,908,573 540,146,606,603 572,795,130,205 538,044,453,335
7.02 Loans and Advances (In and outside Bangladesh) including bills purchased and discounted
In Bangladesh 7.02.01 587,555,310,649 552,812,990,131 585,783,314,276 550,642,479,181
Outside Bangladesh 7.02.02 394,187,422 315,456,395 449,405,428 383,814,077
587,949,498,072 553,128,446,526 586,232,719,704 551,026,293,258
7.02.01 In Bangladesh
Loan 493,116,282,437 425,540,511,365 493,116,282,437 425,540,511,365
Cash Credit 57,733,383,751 87,234,989,721 57,733,383,751 87,234,989,721
Overdraft 21,323,100,571 25,009,542,244 21,709,688,474 25,009,542,244
Portfolio Loan to Investors 2,158,584,276 2,170,510,950 - -
Bills purchased and discounted 13,223,959,614 12,857,435,851 13,223,959,614 12,857,435,851
587,555,310,649 552,812,990,131 585,783,314,276 550,642,479,181
7.02.02 Outside Bangladesh
Loan 41,380,809 38,982,512 96,598,815 107,340,194
Cash Credit 1,396,275 12,420,531 1,396,275 12,420,531
Overdraft 137,780,453 139,649,280 137,780,453 139,649,280
Bills purchased and discounted 213,629,885 124,404,072 213,629,885 124,404,072
394,187,422 315,456,395 449,405,428 383,814,077
7.03 Loans, cash credits and overdrafts
Loan 7.03.01 493,157,663,247 425,579,493,877 493,212,881,252 425,647,851,559
Cash Credit 7.03.02 57,734,780,026 87,247,410,252 57,734,780,026 87,247,410,252
Overdraft 7.03.03 21,460,881,024 25,149,191,524 21,847,468,927 25,149,191,524
Portfolio Loan to Investors 7.03.04 2,158,584,276 2,170,510,950 - -
574,511,908,573 540,146,606,603 572,795,130,205 538,044,453,335
7.03.01 Head-wise Loans, Cash Credits and Overdrafts:
Inside Bangladesh:
Loans
Demand Loan 1,464,307 2,127,233 1,464,307 2,127,233
Small Loan 75,928,905 103,887,004 75,928,905 103,887,004
House Building Loan (General) 6,377,963,152 5,147,650,731 6,377,963,152 5,147,650,731
Staff Loan 7.03.01.1 61,936,314,441 62,012,909,384 61,936,314,441 62,012,909,384
Special Small Loan Programe 11,717,587 17,927,192 11,717,587 17,927,192
260
Amount in Taka
2020 2019 2020 2019
Loan Under S.B Industrial
34,225,383,044 36,818,007,377 34,225,383,044 36,818,007,377
Credit Scheme (Project)
Loan under External Credit Programe 36,528,380 70,012,155 36,528,380 70,012,155
Sonali credit 259,242,343 202,748,836 259,242,343 202,748,836
Loan under'SB Agro Based
8,186,850,819 13,785,614,672 8,186,850,819 13,785,614,672
Industrial Cr.Scheme
Agricultural Loan 46,606,889,179 50,387,649,730 46,606,889,179 50,387,649,730
Micro Credit (SFL Scheme
12,197,520,101 12,117,307,930 12,197,520,101 12,117,307,930
plus RSTL Scheme)
Loan under Imported
1,886,910,694 2,025,865,022 1,886,910,694 2,025,865,022
Merchandise(LIM)
Loan against Trust Receipt 45,765,475,529 50,301,472,442 45,765,475,529 50,301,472,442
Forced Loan against Back
24,589,344,033 23,820,532,736 24,589,344,033 23,820,532,736
to Back L/C
Loan for L/C under WES. 136,339 136,339 136,339 136,339
Current Account Barter
932,606,463 932,606,463 932,606,463 932,606,463
(Debit Balance)
Bridge Finance 2,992,866,505 2,993,886,872 2,992,866,505 2,993,886,872
House Building Loan
762,768,795 261,276,486 762,768,795 261,276,486
(Govt. Employees)
Small Business Loan 1,192,579,160 1,695,663,160 1,192,579,160 1,695,663,160
Lease Finance 26,239,228 26,542,228 26,239,228 26,542,228
Personal Loan 80,034,170,640 62,604,585,159 80,034,170,640 62,604,585,159
Term Loan to Freedom Fighter 19,252,022,541 18,577,928,918 19,252,022,541 18,577,928,918
Special F.C Term Loan to
50,636,224,126 54,281,800,208 50,636,224,126 54,281,800,208
Bangladesh Biman
Foreign Education Loan Program 771,973 771,473 771,973 771,473
SME Finance(Term Loan to Service) 31,376,665,916 710,223,774 31,376,665,916 710,223,774
SME Finance(Term Loan Industries) 381,524,524 102,758,795 381,524,524 102,758,795
SME Finance (Working
39,552,712,034 21,550,133,323 39,552,712,034 21,550,133,323
Capital to Ind.Ser.Tre.)
SME Loan Under B.B
Revolving Re-Finance for 3,090,692,960 - 3,090,692,960 -
COVID-19
Working Capital under
Stimulus Pack. for Indus. & 10,953,054,369 - 10,953,054,369 -
Serv. for COVID-19
Special Term Loan against
Fund Received from B.B for
Worker's Salary of Export 187,717,167 - 187,717,167 -
Oriented Indus. Under
COVID-19
Agri. Loan disbursed at
Conce. Intt. Rate against 1,865,612,697 - 1,865,612,697 -
COVID-19
Agri. Loan against Special
Stimulus Refinance Sch.for 1,002,018,662 - 1,002,018,662 -
COVID-19
Micro Credit Loan Under
B.B Revolving Refi. Sch. for 12,650,249 - 12,650,249 -
COVID-19
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Special Loan - Advance rent
101,412,987 84,391,691 101,412,987 84,391,691
(Interest Bearing)
Term Loan to Banks & NBFIs 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000
Forced Loan A/C-EDF 2,506,114,804 532,946,775 2,506,114,804 532,946,775
Rural Housing Finance -
152,288,263 111,394,603 152,288,263 111,394,603
Sonali Neer A/C
Loan Against Food
1,651,493,441 2,259,752,654 1,651,493,441 2,259,752,654
Procurement Bill A/C
492,821,876,356 425,540,511,365 492,821,876,356 425,540,511,365
Islamic Banking Window
Bai Muazzal -House Hold
294,406,081 - 294,406,081 -
Durable Scheme
493,116,282,437 425,540,511,365 493,116,282,437 425,540,511,365
Outside Bangladesh:
Loan
Demand Loan 15,121,820 15,588,835 15,121,820 15,588,835
Small Loan - 1,187,559 - 1,187,559
House Building Loan (Staff) 26,258,989 22,206,118 26,258,989 22,206,118
Long term loan at prevailing
- - 55,218,006 68,357,682
rate of Interest (SECI)
41,380,809 38,982,512 96,598,815 107,340,194
493,157,663,247 425,579,493,877 493,212,881,252 425,647,851,559
7.03.01.1 Staff Loan
Staff House Building Loan 58,175,674,244 58,198,597,955 58,175,674,244 58,198,597,955
Staff Loan (Others) 3,760,640,197 3,814,311,429 3,760,640,197 3,814,311,429
61,936,314,441 62,012,909,384 61,936,314,441 62,012,909,384
7.03.02 Cash Credits:
In Bangladesh
Cash Credit General (Hypo) 5,078,831,317 9,485,185,407 5,078,831,317 9,485,185,407
Cash Credit General (Pledge) 783,159,268 15,585,731,895 783,159,268 15,585,731,895
Working Capital to
34,496,718,482 34,646,963,702 34,496,718,482 34,646,963,702
Industries. (Hypo)
Working Capital to
2,144,024,609 2,761,622,459 2,144,024,609 2,761,622,459
Industries. (Pledge)
Working Capital to Agro
7,413,886,223 12,682,495,109 7,413,886,223 12,682,495,109
based Ind. (Hypo)
Working Capital to Agro
3,407,159,162 7,533,044,546 3,407,159,162 7,533,044,546
based Ind. (Pledge)
Packing Cash Credit 4,409,604,690 4,539,946,603 4,409,604,690 4,539,946,603
57,733,383,751 87,234,989,721 57,733,383,751 87,234,989,721
Outside Bangladesh:
Cash Credit 1,396,275 12,420,531 1,396,275 12,420,531
Total Cash Credit 57,734,780,026 87,247,410,252 57,734,780,026 87,247,410,252
7.03.03 Overdrafts etc.:
Overdraft Loan (In Bangladesh) 21,323,100,571 25,009,542,244 21,709,688,474 25,009,542,244
21,323,100,571 25,009,542,244 21,709,688,474 25,009,542,244
Overdraft Loan (Outside
137,780,453 139,649,280 137,780,453 139,649,280
Bangladesh)
Total Overdrafts etc. 21,460,881,024 25,149,191,524 21,847,468,927 25,149,191,524
262
Amount in Taka
2020 2019 2020 2019
7.03.04 Portfolio Loan to Investors
Opening balance 2,170,510,950 2,236,624,809 - -
Add: Charged apply during the year 69,395,976 173,417,979 - -
Add: Loan disbursed during the year 342,728,613 319,701,252 - -
Less: Loan recovered
(424,051,263) (559,233,091) - -
during the year
Total 2,158,584,276 2,170,510,950 - -
7.04 Bills Purchased and Discounted (Excluding treasury bills)
Payable Inside Bangladesh 7.04.01a 13,223,959,614 12,857,435,851 13,223,959,614 12,857,435,851
Payable Outside
7.04.01b 213,629,885 124,404,072 213,629,885 124,404,072
Bangladesh
Total 13,437,589,499 12,981,839,923 13,437,589,499 12,981,839,923
7.04.01 Bill Discounted and Purchased
7.04.01a In Bangladesh
Payment against
8,164,741,650 7,327,338,555 8,164,741,650 7,327,338,555
Documents (PAD)
Loan against Inland Bills 165,738,226 236,632,923 165,738,226 236,632,923
Inland Bills Purchased 2,337,656,749 2,337,421,639 2,337,656,749 2,337,421,639
Payment against
1,130,827,216 1,393,469,845 1,130,827,216 1,393,469,845
Documents (PAD) A/C-EDF
Foreign Bills Purchased/
52,261,638 52,261,638 52,261,638 52,261,638
Negotiated (Clean)
1,372,734,135 1,510,311,251 1,372,734,135 1,510,311,251
Negotiated (Documents)
Total 13,223,959,614 12,857,435,851 13,223,959,614 12,857,435,851
7.04.01b Outside Bangladesh
Negotiated (Documents) of 213,629,885 124,404,072 213,629,885 124,404,072
Overseas Branches
Total 213,629,885 124,404,072 213,629,885 124,404,072
7.04.02 Maturity grouping bills purchased and discounted
Bills purchased and
discounted
Not more than 1 Month 8,030,258,203 8,658,167,795 8,030,258,203 8,658,167,795
More than 1 month but not
470,991,377 2,001,026,579 470,991,377 2,001,026,579
more than 3 Months
More than 3 months but
4,505,804,404 1,809,088,713 4,505,804,404 1,809,088,713
not more than 6 Months
More than 6 Months 430,535,514 513,556,836 430,535,514 513,556,836
Total 13,437,589,499 12,981,839,923 13,437,589,499 12,981,839,923
7.05 Net Performing loans and advances / Investments
Gross loans and advances / 587,949,498,072 553,128,446,526 586,232,719,704 551,026,293,258
investments
Non-performing loans and 7.09.01 (107,673,900,177) (111,993,904,839) (107,673,900,177) (111,993,904,839)
advances / investments
Total 480,275,597,895 441,134,541,687 478,558,819,527 439,032,388,419
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
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 67,089,213 112,536,821
Advances to the Customers Group (Amounting more than 10 % of Bank's
180,016,991,188 179,269,488,756
Paid up Capital)
Other Customers 330,774,735,363 296,649,518,374
Advance to Staff 61,936,314,441 62,012,909,384
572,795,130,205 538,044,453,335
7.07 Number of clients, with amount of outstanding and classified loans to whom loans and advances sanctioned
more 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 Paid up Capital and classified amount therein and measures taken for
recovery of such loan have been furnished as under.
No .of Client 19 19
Paid up Capital 45,300,000,000 45,300,000,000
10% of Paid up capital 4,530,000,000 4,530,000,000
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.
7.07(a) During the year 2020, there are large amount of outstanding and classified loans, to whom loans and advances
sanctioned more than 10% of Paid up Capital of the Bank.
Summary of Borrower are shown below :
Outstanding Classification Outstanding as

Name of the Borrower Classified amount
amount status % of Total Loan
Beximco Group 17,167,444,196 - UC, SMA 2.93%
Hall Mark Group 17,130,284,254 17,130,284,254 BL,BLW 2.92%
T & Brothers Group 4,902,643,927 4,902,643,927 BL 0.84%
Thermex Group 12,234,100,000 - UC 2.09%
Modern Steel Mills Ltd. 4,572,100,000 4,572,100,000 BL 0.78%
Bangladesh Chemical Industries Corp. 15,261,660,363 - UC 2.60%
Biman Bangladesh Airlines Ltd. 50,636,224,126 - UC 8.64%
Bangladesh Agricultural
14,437,634,322 - UC 2.46%
Development Corporation (BADC)
Bangladesh Sugar & Food Ind. Cor. 43,674,900,000 - UC 7.45%

Total 180,016,991,188 26,605,028,181 31%
264
7.07(b) Details about the Group / Single Borrower
Amount in Taka
2020
Name of the Borrower
Non Funded
Funded Loan Total Loan Status of Loan
Loan
A. Group Borrower
Beximco Group
UC=319,000,000
Beximco Ltd. 14,117,226,010 319,000,000 14,436,226,010
SMA= 14,117,226,010
UC=6,000,000
GMG Airlines Ltd. 2,501,719,531 6,000,000 2,507,719,531
SMA= 2,501,719,531
Sinepukur Ceramic Ltd. 548,498,655 - 548,498,655 UC=548,498,655
Sub Total 17,167,444,196 325,000,000 17,492,444,196
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
UC=842,526,976
M/s Farhan Fashion Ltd 2,630,920 842,526,976 845,157,896
BL=2,630,920 "
UC=192,106,217,
M/s Hall Mark Design Wear Limited 395,151,078 192,106,217 587,257,295
BL=395,151,078
M/s Jishan Knit Composite Ltd 41,952,985 - 41,952,985 BL=41,952,985
M/s Perfect Embroidery Ltd 46,252,176 - 46,252,176 BL=46,252,176
M/s Boby Flatbed Printing Ltd 114,165,705 - 114,165,705 BL=114,107,820
M/s Hall Mark Accessories Ltd 82,721,345 - 82,721,345 BL=82,721,345
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
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=724,200,477
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 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
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 Hall Mark Knit Composite Ltd 44,156,437 - 44,156,437 BLW=44,156,437
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
Sub Total 17,130,284,254 7,999,926,062 25,130,210,316
T & Brothers Group
UC=1,611,832,723
M/s T & Brother Knit Composite Ltd 2,231,482,089 1,611,832,723 3,843,314,812
BL=2,231,482,089
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 780,895,429 514,381,651 1,295,277,080
BL=780,895,429
LNS Accessories 133,350,000 - 133,350,000 BL=133,350,000
Sub Total 4,902,643,927 2,126,214,374 7,028,858,301
Thermex Group
Thermax Check Fabrics Ltd. 3,244,200,000 - 3,244,200,000 UC=3,244,200,000
Indigo Spinning Ltd. 3,612,400,000 22,100,000 3,634,500,000 UC=3,634,500,000
Thermax Melange Spinning Mills Ltd. 2,450,700,000 15,500,000 2,466,200,000 UC=2,466,200,000
Thermax Knit Yarn Ltd 2,049,900,000 - 2,049,900,000 UC=2,049,900,000
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020
Name of the Borrower
Non Funded
Funded Loan Total Loan Status of Loan
Loan
Thermax Spinning Limited 876,900,000 - UC=876,900,000
876,900,000
Sub Total 12,234,100,000 37,600,000 12,271,700,000
Total=A 51,434,472,377 10,488,740,436 61,923,212,813
B. Single Borrower
Roopur NNP Project - 708,659,200,000 708,659,200,000 -
Biman Bangladesh Airlines Ltd. 50,636,224,126 - 50,636,224,126 UC=50,636,224,126
Wet Process to Dry Process of CCCL - 6,010,282,692 6,010,282,692 -
B-R Powergen Ltd - 1,424,589,639 1,424,589,639 -
Bangladesh Chemical Industries
15,261,660,363 4,670,724,023 19,932,384,386 UC=15,261,660,363
Corporation (BCIC)
Bangladesh Agricultural Development
14,437,634,322 10,215,238,712 24,652,873,034 UC=14,437,634,322
Corporation (BADC)
Directorate General of Defense
- 8,398,437,118 8,398,437,118 -
Purchase-DGDP
Bangladesh Railway - 16,871,700,093 16,871,700,093 -
Bangladesh Power Development Board - 55,609,301,909 55,609,301,909 -
Bangladesh Water Development Board - 5,656,349,284 5,656,349,284 -
Bangladesh Petroleum Corporation (BPC) - 3,298,608,500 3,298,608,500 -
Bangladesh Rural Electrification Board
- 9,100,037,118 9,100,037,118 -
(BREB)
Bangladesh Sugar & Food Ind.Cor. (BSFIC) 43,674,900,000 10,462,439,435 54,137,339,435

UC=43,674,900,000
Directorate of Food and Food Ministry 1,651,500,000 1,226,667,588 2,878,167,588 UC=1,651,500,000
Modern Steel Mills Ltd. 4,572,100,000 - 4,572,100,000 BL=4,572,100,000
Total=B 130,234,018,811 841,603,576,111 971,837,594,922
Grand Total (A+B) 181,668,491,188 852,092,316,547 1,033,760,807,735
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.The details are
mentioned below:
Name of the Borrower Restructured Amount Payment Tenure

1. Beximco Limited
(i) Demand Loan - 6 years for demand loan and 12 years for term loan
(ii) Term Loan 14,117,226,010 along with 1 year moratorium period
Total 14,117,226,010
266
7.08 Geographical Area-wise Loans and Advances

No.of Amount in Taka % of Total Loan
Branches 2020 2019 2020 2019
In Bangladesh
Urban 701 463,164,185,279 451,174,509,442 79.01 81.88
Rural 523 122,619,128,997 99,467,969,739 20.92 18.05
Sub Total 1224 585,783,314,276 550,642,479,180 99.921 99.930
Outside Bangladesh
Overseas Branches 2 394,187,422 315,456,395 0.067 0.057
Subsudiary Company (SECI) 55,218,006 68,357,682 0.01 0.01
Total 1226 586,232,719,704 551,026,293,258 100 100
Head office is included in Urban area.
7.08.01 In Bangladesh (GM's office & District wise)

No. of
Dhaka GM's Office Branches
Dhaka (1 & 2) 125 302,426,740,838 290,671,341,201 51.588 52.751
Gazipur 23 4,012,270,001 3,695,200,546 0.684 0.671
Munshiganj 17 1,711,322,489 1,676,809,793 0.292 0.304
Narayanganj 19 3,253,852,458 3,194,316,564 0.555 0.580
Narsingdi 20 3,472,277,311 3,270,018,998 0.592 0.593
Manikganj 11 1,609,421,985 1,500,585,604 0.275 0.272
Sub Total 215 316,485,885,082 304,008,272,706 53.986 55.171
Chattogram GM's Office
Chattogram North 27 3,200,030,923 8,016,972,202 0.546 1.455
Chattogram South 29 17,524,271,477 14,007,986,615 2.989 2.542
Rangamati 23 4,584,002,888 4,051,384,582 0.782 0.735
Bandarbon 7 1,155,816,111 1,002,936,133 0.197 0.182
Cox's Bazar 10 2,507,314,607 2,357,088,328 0.428 0.428
Patiya 13 1,282,776,998 1,189,357,631 0.219 0.216
Sub Total 109 30,254,213,005 30,625,725,491 5.161 5.558
Cumilla GM's Office
Brahmanbaria 24 2,805,044,576 2,629,186,341 0.478 0.477
Chandpur 20 2,496,612,645 2,286,594,090 0.426 0.415
Cumilla 38 6,734,899,599 6,232,869,471 1.149 1.131
Feni 17 1,647,910,601 1,636,065,127 0.281 0.297
Noakhali 28 3,776,551,370 3,516,304,499 0.644 0.638
Laxmipur 12 2,300,270,684 2,221,106,983 0.392 0.403
Sub Total 139 19,761,289,475 18,522,126,510 3.371 3.361
Barishal GM's Office
Barishal 37 6,807,320,868 6,286,266,086 1.161 1.141
Patuakhali 21 4,793,711,654 4,314,837,599 0.818 0.783
Bhola 10 1,589,911,182 1,340,749,169 0.271 0.243
Pirojpur 10 2,195,722,981 1,900,803,697 0.375 0.345
Sub Total 78 15,386,666,685 13,842,656,551 2.625 2.512
Faridpur GM's Office
Chuadanga 19 3,588,247,955 3,212,155,617 0.612 0.583
Faridpur 23 6,654,259,108 6,390,486,617 1.135 1.160
Kushtia 22 4,919,373,378 4,492,821,373 0.839 0.815
Madaripur 17 2,869,309,204 2,500,554,925 0.489 0.454
Gopalgonj 12 1,725,996,287 1,414,546,974 0.294 0.257
Rajbari 12 1,380,806,889 1,248,887,283 0.236 0.227
Sub Total 105 21,137,992,822 19,259,452,789 3.606 3.495
Annual Report 2020

YEAR OF EXCELLENCE
No.of Amount in Taka % of Total Loan

Particulars Branches 2020 2019 2020 2019
Khulna GM's Office
Jashore 35 6,516,056,023 5,179,788,459 1.112 0.940
Jhenaidah 23 7,857,093,473 7,018,247,517 1.340 1.274
Khulna 24 27,453,661,496 27,104,401,636 4.683 4.919
Satkhira 17 2,665,507,316 2,342,458,202 0.455 0.425
Bagerhat 14 2,425,184,719 2,202,720,260 0.414 0.400
Narail 11 2,005,678,231 1,834,396,332 0.342 0.333
Sub Total 124 48,923,181,258 45,682,012,406 8.345 8.290
Mymensingh GM's Office
Jamalpur 19 7,253,264,507 6,976,012,460 1.237 1.266
Kishoregonj 17 2,830,071,375 2,596,463,709 0.483 0.471
Mymensingh 25 6,902,177,088 6,435,300,871 1.177 1.168
Tangail 32 5,308,670,541 4,719,350,112 0.906 0.856
Netrokona 14 4,794,810,046 4,466,525,980 0.818 0.811
Sherpur 9 3,127,637,617 2,822,542,793 0.534 0.512
Sub Total 116 30,216,631,174 28,016,195,924 5.154 5.084
Rajshahi GM's Office
Bogura 32 7,077,892,480 5,551,060,949 1.207 1.007
Naogaon 19 4,885,240,045 4,010,554,033 0.833 0.728
Pabna 18 4,343,061,912 3,597,479,907 0.741 0.653
Rajshahi 23 8,750,849,987 8,484,652,977 1.493 1.540
Sirajganj 21 4,098,333,063 3,462,564,041 0.699 0.628
Chapai Nawabganj 8 2,765,253,596 2,445,306,369 0.472 0.444
Joypurhat 8 4,303,141,603 3,809,913,617 0.734 0.691
Natore 13 6,869,551,595 6,166,889,045 1.172 1.119
Sub Total 142 43,093,324,280 37,528,420,938 7.351 6.811
Rangpur GM's Office
Dinajpur 32 10,554,530,373 8,385,600,181 1.800 1.522
Gaibandha 16 7,988,129,274 6,955,220,419 1.363 1.262
Kurigram 17 6,094,681,336 5,272,999,273 1.040 0.957
Rangpur 19 10,092,266,964 9,719,540,064 1.722 1.764
Nilphamari 10 5,350,345,426 4,510,030,011 0.913 0.818
Thakurgaon 22 11,350,005,000 10,109,850,408 1.936 1.835
Sub Total 116 51,429,958,372 44,953,240,358 8.773 8.158
Sylhet GM's Office
Moulvibazar 22 2,027,104,267 1,785,267,466 0.346 0.324
Sylhet 32 2,814,410,508 2,509,010,985 0.480 0.455
Habiganj 13 1,758,739,792 1,592,581,454 0.300 0.289
Sunamganj 13 2,493,917,556 2,317,515,602 0.425 0.421
Sub Total 80 9,094,172,123 8,204,375,507 1.551 1.489
Total 1224 585,783,314,276 550,642,479,180 99.92 99.93
7.08.02 Outside Bangladesh
Kolkata & Siliguri 2 394,187,422 315,456,395 0.067 0.057
Subsidiary Company (SECI) 55,218,006 68,357,682 0.01 0.01
Total Loans & Advances 1226 586,232,719,704 551,026,293,258 100 100
Head office & Islamic Banking Window is included in Total Loans & Advances
7.08.03 Divisional Office wise
In Bangladesh
Dhaka Division-1 119 257,429,832,941 251,144,562,736 43.91 45.58
Dhaka Division-2 96 59,056,052,141 52,863,709,970 10.07 9.59
Barishal 78 15,386,666,685 13,842,656,551 2.62 2.51
268
Chattagram 109 30,254,213,005 30,625,725,491 5.16 5.56

Cumilla 139 19,761,289,475 18,522,126,510 3.37 3.36
Faridpur 105 21,137,992,822 19,259,452,789 3.61 3.50
Khulna 124 48,923,181,258 45,682,012,406 8.35 8.29
Mymensingh 116 30,216,631,174 28,016,195,924 5.15 5.08
Rajshahi 142 43,093,324,280 37,528,420,938 7.35 6.81
Rangpur 116 51,429,958,372 44,953,240,358 8.77 8.16
Sylhet 80 9,094,172,123 8,204,375,507 1.55 1.49
1224 585,783,314,276 550,642,479,180 99.91 99.93
Outside Bangladesh
Kolkata & Siliguri 2 394,187,422 315,456,395 0.07 0.06
Subsudiary Company (SECI) 55,218,006 68,357,682 0.01 0.01
Total 1226 586,232,719,704 551,026,293,258 100 100
7.09 Details of Provision required and held for loans and advances:
Amount in Taka
Particulars
2020 2019
A. Required Provision for loans and advances:
For Classified Loan 56,792,294,264 49,077,379,222
For Loan against which writ has been filed 872,809,762 3,939,000,000
For Overseas Branches Classified Loan 40,347,571 -
For Unclassified Loan 12,458,766,241 5,357,515,747
For Overseas Branches Unclassified Loan 1,501,281 -
70,165,719,119 58,373,894,969
B. Provision Made for loans and advances:
For Classified Loan including writ 57,665,104,026 53,016,379,222
For Overseas Branches Classified Loan 40,347,571 -
For Unclassified Loan 12,458,766,241 5,357,515,747
For Overseas Branches Unclassified Loan 1,501,281 -
70,165,719,119 58,373,894,969
C. Provision Surplus/(Deficit)
For Classified Loan including writ
For Overseas Branches Classified Loan - -
For Unclassified Loan - -
Provision Surplus/(Deficit) - -
Annual Report 2020

YEAR OF EXCELLENCE
7.09.01 Classification of advances as per Bangladesh Bank circular
% of Total Loans Amount in Taka

Particulars
2020 2019 2020 2019
Unclassified
Standard (Including Staff Loan) 73.94% 70.49% 433,466,269,707 388,403,899,089
Special Mention Account (SMA) 7.59% 9.13% 44,469,766,851 50,313,032,935

81.53% 79.62% 477,936,036,558 438,716,932,024
Classified
Substandard 1.45% 2.27% 8,471,798,091 12,530,044,759
Doubtful 0.70% 0.53% 4,104,079,126 2,918,700,000
Bad/Loss 16.22% 17.52% 95,098,022,960 96,545,160,080
18.37% 20.32% 107,673,900,177 111,993,904,839
Islamic Windows (UC) 0.05% - 281,900,575 -
Overseas Branches (UC) 0.06% 0.06% 340,882,394 315,456,395
100.00% 100.00% 586,232,719,704 551,026,293,258
* Classified Portion of Loans and Advances of Overseas Branch was Correctly incorporated in to the Classified
Amount.
7.10 Particulars of required provision for loans and advances / investments status
Base for Required Provision

Particulars provision Rate (%)
2020 2020 2019
A General provision
Standard & SMA
i) Housing Finance 7,214,614,824 1.00% 72,146,148 67,650,707
ii) Loan for Professional 1,344,749,369 2.00% 26,894,987 -
iii) Consumer Financing 80,088,738,686 2.00% 1,601,774,773 2,496,500,266
iv) Short Term Agri & Micro 46,608,755,675 1.00% 466,087,557 372,983,944
v) Small Medium Enterprise Financing 46,172,371,737 0.25% 115,430,930 47,675,101
vi) Provision for BRPD 05/2019 - 6,049,989,832 -
vii) Provision for BRPD 56/2020 - 1,028,106,037 -
viii) Provision for Staff Loan 61,558,097,609 1.00% 615,580,976
ix) Others 230,592,785,716 1.00% 2,477,116,990 2,372,705,729
x) Islamic Windows 281,900,575 2.00% 5,638,011 -
xi) Overseas Branches - - 1,501,281 -
Sub Total 473,862,014,191 12,460,267,522 5,357,515,747
B Specific provision Status

Sub-standard
i) Short term Micro Credit 1,702,629,219 5.00% 85,131,461 98,537,316
ii) Others 3,168,574,397 20.00% 634,725,223 545,779,557
Doubtful
i) Short term Micro Credit 1,279,869,484 5.00% 78,421,553 67,012,314
ii) Others 497,264,363 50.00% 248,813,045 150,328,840
Bad / Loss
i) Domestic Branches 64,821,016,358 100.00% 55,732,697,476 48,215,721,195
ii) Islamic Windows 12,505,506 100.00% 12,505,506 -
Specific provision Status for Overseas Branches
Overseas Branches 40,347,571 100.00% 40,347,571 -
71,522,206,898 56,832,641,835 49,077,379,222
C For Loan against which writ has been filed 872,809,762 3,939,000,000
Total Required Provision for Loans & Advances (A+B+C) 70,165,719,119 58,373,894,969
270
7.10.01 In response to Bank's request #SBL/HO/CAD(Op)/Basel-III/Capital/680 dated 14 June 2021 to Bangladesh

Bank regarding maintenance of provisions for loans & advances for 2020, Bangladesh Bank vide its letter no-
DOS(CAMS)1157/01(II)-C/2021-2789 dated 29 June 2021 has given certain directives to the Bank to maintain
required provision against all unclassified and classified loans & advances including writ and Special General
Provision against COVID-19 as on 31 December 2020. As per said directives, the Bank has calculated the required
provision against unclassified and classified loans & advances including writ and Special General Provision against
COVID-19 for which Bank maintained provision amounting taka 7,016.57 crore by relishing deferral of taka 908.81
crore accordingly.
Amount in Taka
Particulars Notes
2020 2019
7.11 Industry-Wise Segment of Loan and advances
Govt. of BD Food (Salt & 1,435,188,984 1,435,188,984
Rice)
Barter Accounts 932,606,463 932,606,463
Food Procurement Bills 1,651,493,441 2,259,752,654
Rural Credit & Agri. Loan 61,684,690,888 62,504,957,660
Trading 61,126,700,000 53,485,100,000
Foreign Exchange (LTR/ 31,717,400,000 33,847,200,000
LIM/PAD/FBPN, etc)
Garments Industry 12,332,500,000 11,338,600,000
Textile Industry 31,854,700,000
40,399,500,000
Fish Processing 3,572,100,000 4,418,300,000
Cold Storage 4,307,800,000 3,263,200,000
Real Estate (House Building) 6,113,000,000 5,147,650,731
Jute Industry 7,454,600,000 7,947,900,000
Tannery Industry 2,006,200,000 1,906,600,000
Bricks & Tiles 875,400,000 788,100,000
Engineering 96,000,000 124,200,000
Cottage Industries 3,832,000 3,832,000
Food Staff 5,793,600,000 4,579,500,000
Pharma (Chemical/Plastic) 372,181,919 372,181,919
Iron & Ispat Industry 9,288,600,000 8,947,000,000
Tobacco & Beverage 1,456,800,000 1,456,800,000
Paper Products/Printing 4,683,500,000 4,320,600,000
Packaging
Glass & Ceramic 1,738,400,000 1,864,900,000
Aluminum & Other Metals 184,800,000 184,600,000
Others (OD/Bikalpa/Bridge Financing/IT/BPC/BSEC/ BJMC/BCIC/BTMC/ 327,005,826,009 308,042,822,847
FDC/BSCIC/BIMAN/Ov. Branches)
TOTAL 586,232,719,704 551,026,293,258
7.12 Sector wise Loans and Advances
Government 7.12.01 7,228,100,000 4,526,300,000
Other Public 124,695,200,000 132,308,100,000
7.12.02
(Semi Govt. Autonomous)
Private 7.12.03 453,686,636,735 413,876,436,863
585,609,936,735 550,710,836,863
Islamic Windows (Standard) 7.12.04 281,900,575 -
Overseas Branches (Standard) 7.12.05 340,882,394 315,456,395
TOTAL 586,232,719,704 551,026,293,258
7.12.01 Government
Unclassified
Standard 4,860,300,000 2,073,700,000
SMA - 84,800,000
Sub total 4,860,300,000 2,158,500,000
Annual Report 2020

YEAR OF EXCELLENCE
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 7,228,100,000 4,526,300,000
7.12.02 Other Public
Unclassified
Standard 124,250,500,000 123,754,300,000
SMA - 8,109,100,000
Sub total 124,250,500,000 131,863,400,000
Classified
Sub standard 111,200,000 109,900,000
Doubtful - -
Bad/Loss 333,500,000 334,800,000
Sub total 444,700,000 444,700,000
Total 124,695,200,000 132,308,100,000
7.12.03 Private
Unclassified
Standard 304,355,469,707 262,642,600,636
SMA 44,469,766,851 42,052,431,388
Sub total 348,825,236,558 304,695,032,024
Classified
Sub standard 8,360,598,091 12,420,144,759
Doubtful 4,104,079,126 2,918,700,000
Bad/Loss 92,396,722,960 93,842,560,080
Sub total 104,861,400,178 109,181,404,839
Total 453,686,636,735 413,876,436,863
7.12.04 Islamic Windows (Standard) 281,900,575 -

7.12.05 Overseas Branches (Standard) 340,882,394 315,456,395
Total Loan and Advances 586,232,719,704 551,026,293,258
7.13 Movement of Classified Loans and Advances as a Whole
Opening Classified Loans and Advances 111,993,904,839 121,883,400,000
Less :
Cash Recovery 4,364,246,000 8,203,478,000
Written-off - -
Interest waiver 747,185,000 5,300,530,000
Re-schedule, Renew 5,390,070,000 18,470,506,000
Re-structuring - -
10,501,501,000 31,974,514,000
Add: Classified Loans and Advances during the year 6,181,496,338 22,085,018,839
107,673,900,177 111,993,904,839
7.14 Particulars of Loan and Advances/Investments
i) Loans considered good in respect of which the banking company is fully 365,732,235,345 347,044,987,288
secured.
ii) Loans considered good against which the banking company holds no
security other than the debtors' personal guarantee. 60,617,750,730 54,843,896,708
iii) Loans considered good secured by the personal undertakings of one or
more parties in addition to the personal guarantee of the debtor 51,604,624,592 42,915,485,488
iv) Loans adversely classified; provision not maintained there against - -
477,954,610,668 444,804,369,484
272
v) Loans due by Directors or Officers of the banking company or any of 61,936,314,441 62,012,909,384
these 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).
vii) Maximum total amount of advances, including temporary advances made 61,936,314,441 62,012,909,384
at any time during the year to directors or managers or officers of the bank
or 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 (261,827) (272,763,474)
Less: Provision debited against interest waiver 169,615,666 277,041,191
Amount of provision released against interest waiver 169,353,839 4,277,717
b) Amount of provision kept against loan classified 57,705,451,597 53,016,379,222
c) Interest Credited to the Interest Suspense A/C 46,017,940,866 39,592,954,868
xi) Written-off Loans as per Bangladesh Bank BRPD Circular no -02 dated 13,
January 2003.
Opening amount of written off loan 70,494,285,196 70,936,965,196
Less: Amount realized (includes cash & interest waiver) during the year 550,102,000 442,680,000
Add: Amount of written off Loan during the current year - -
Closing amount of written off loans 69,944,183,196 70,494,285,196
xii) Written-off Loans as per Bangladesh Bank BRPD Circular no -02 dated 13,
January 2003.
Cumulative amount of written off loans 69,944,183,196 70,494,285,196
Note: Various steps have been taken to realise the written off loan and proper records are being maintained.
Amount in Taka
2020 2019 2020 2019
8.00 Fixed Asset including Premises, Furniture & Fixture
(A) Cost/Revaluation
In Bangladesh:
Premises 31,922,683,816 31,479,061,832 31,922,683,816 31,479,061,832
Building Constructions 332,989,773 722,759,036 332,989,774 722,759,036
Furniture 1,291,918,197 1,196,238,508 1,278,579,149 1,182,623,546
Electric Installation 1,126,297,858 1,044,301,411 1,128,313,756 1,041,586,839
Computer Hardware 2,273,724,992 2,176,758,948 2,253,341,077 2,156,538,026
Type Writer Machine 5,610,105 5,611,014 5,610,105 5,611,014
Motor Car & Other Vehicle 620,118,538 439,637,353 590,657,323 410,176,138
Library 12,553,608 12,113,766 12,553,608 12,113,766
Sub-Total 37,585,896,887 37,076,481,867 37,524,728,609 37,010,470,197
Overseas Branches:
Kolkata Branch 22,071,341 21,531,726 22,071,341 21,531,726
Siliguri Branch 2,821,109 2,730,620 2,821,109 2,730,620
Sub-Total 24,892,450 24,262,346 24,892,450 24,262,346
Intangible Assets
Computer Software 617,603,760 553,333,032 612,958,425 548,687,697
Right of Use Assets 521,907,559 - 521,907,559 -
Total Cost Value 38,750,300,655 37,654,077,245 38,684,487,042 37,583,420,240
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
(B) Accumulated Depreciation
In Bangladesh:
Premises 456,077,000 411,353,627 456,077,000 411,353,627
Furniture 764,975,296 702,366,568 751,949,774 689,249,652
Electric Installation 837,139,931 766,189,424 839,155,868 763,474,891
Library 5,554,089 4,958,187 5,554,088 4,958,186
Sub-Total 4,335,894,711 3,912,636,876 4,275,958,012 3,848,854,038
Overseas Branches:
Kolkata Branch 17,441,228 15,217,735 17,441,227 15,217,740
Siliguri Branch 2,272,819 2,098,226 2,272,819 2,098,226
Sub-Total 19,714,047 17,315,961 19,714,047 17,315,966
Depreciation of Right of Use Assets 127,778,082 - 127,778,083 -
Total Accumulated Depreciation 4,483,386,840 3,929,952,837 4,423,450,141 3,866,170,004
(C) Amortization of Intangible Assets
Total 4,857,764,515 4,186,257,843 4,793,192,480 4,117,859,674
Written Down Value on Cost &
Valuation (A-B-C) 33,892,536,141 33,467,819,402 33,891,294,563 33,465,560,566
Details Shown in Annexure-B & C.
8.01 Movement of Fixed assets
Cost (Original)/Revaluation 37,654,077,245 37,104,770,137 37,583,420,241 37,024,196,916
Addition during the year 1,580,146,455 715,507,560 1,579,822,409 715,345,799
39,234,223,701 37,820,277,697 39,163,242,649 37,739,542,716
Less: Disposal/Adjustment during the year 483,923,647 156,145,115 478,755,607 156,122,475
38,750,300,053 37,664,132,582 38,684,487,043 37,583,420,240
Add/(less): Foreign currency gain loss 602 18,932 - -
Less: Accumulated Depreciation &
4,857,764,515 4,196,332,112 4,793,192,480 4,117,859,674
Amortization
Details shown in Annexure-B & C. 33,892,536,141 33,467,819,402 33,891,294,563 33,465,560,566
8A.00 Fixed Asset including Premises, Furniture & Fixture
(A) Cost Basis
In Bangladesh:
Premises 1,863,642,731 1,419,333,147 1,863,642,731 1,419,333,147
Building Constructions 332,989,773 722,759,036 332,989,774 722,759,036
Furniture 1,291,918,197 1,196,238,508 1,278,579,149 1,182,623,546
Electric Installation 1,126,297,858 1,044,301,411 1,128,313,756 1,041,586,839
Library 12,553,608 12,113,766 12,553,608 12,113,766
Sub-Total 7,526,855,802 7,016,753,182 7,465,687,524 6,950,741,512
Overseas Branches:
Kolkata Branch 22,071,341 21,531,726 22,071,341 21,531,726
Siliguri Branch 2,821,109 2,730,620 2,821,109 2,730,620
Sub-Total 24,892,450 24,262,346 24,892,450 24,262,346
Intangible Assets
274
Amount in Taka
2020 2019 2020 2019
Total Cost Value 8,169,352,012 7,594,348,560 8,103,538,399 7,523,691,555
In Bangladesh:
Premises 352,097,559 314,201,896 352,097,559 314,201,896
Furniture 764,975,296 702,366,568 751,949,774 689,249,652
Library 5,554,089 4,958,187 5,554,088 4,958,186
Sub-Total 4,231,915,270 3,815,485,145 4,171,978,571 3,751,702,307
Overseas Branches:
Kolkata Branch 17,441,227 15,416,636 17,441,227 15,416,636
Siliguri Branch 2,272,820 2,098,226 2,272,819 2,098,226
Sub-Total 19,714,047 17,514,862 19,714,047 17,514,862
Total Accumulated Depreciation 4,251,629,317 3,833,000,007 4,191,692,618 3,769,217,169
(C) Amortization of Intangible Assets
Written Down Value on Cost Basis
3,543,345,021 3,505,043,547 3,542,103,442 3,502,784,715
(A-B-C)
Details shown in Annexure-D & E
8A.01 Movement of Fixed assets
Cost (Original)/Revaluation 7,594,348,560 7,044,842,551 7,523,691,555 6,960,075,357
Addition during the year 1,046,472,132 715,507,560 1,046,148,085 715,345,799
8,640,820,692 7,760,350,111 8,569,839,640 7,675,421,157
Less: Disposal/Adjustment
471,469,283 156,145,115 466,301,242 156,122,474
during the year
8,169,351,409 7,604,204,996 8,103,538,399 7,519,298,682
Add/(less): Foreign currency gain loss 602 18,932 - -
Less: Accumulated Depreciation &
4,626,006,990 4,099,180,381 4,561,434,956 4,016,513,967
Amortization
Details shown in Annexure-D & E 3,543,345,021 3,505,043,547 3,542,103,442 3,502,784,715
9.00 Other Asset
Income generating other assets
Investment in Shares of 9.01 3,374,024,007 3,274,726,868 5,454,585,052 5,355,381,868
Subsidiary & Associate Com.
Advance Rent,
9.03 101,001,389 66,142,235 101,001,389 66,142,235
Advertisement etc.
Interest, Commission and
9.04 20,481,550,454 20,062,010,586 20,366,271,368 20,052,342,818
Exchange Receivable
Prepaid Expenses 9.05 4,970,726 4,445,599 4,970,726 4,445,599
23,961,546,577 23,407,325,287 25,926,828,536 25,478,312,519
Non Income generating other assets
Stationery, Stamps and
9.02 122,990,228 114,424,293 122,990,228 114,424,293
Printing Materials in hand
Branch Adjustment 9.06 42,092,175,178 31,168,238,122 42,092,175,178 31,168,238,123
Security Deposits of SECI 7,676,107 5,997,676 - -
Advance deposit of SIL 300,000 300,000 - -
Suspense A/C 9.07 165,118,697 5,209,539,925 165,118,697 5,209,539,925
Others 9.08 120,755,445,864 113,665,876,840 120,668,902,446 113,552,724,184
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Details shown in Annexure-G 163,143,706,075 150,164,376,856 163,049,186,549 150,044,926,525
187,105,252,651 173,571,702,143 188,976,015,085 175,523,239,044
9.01 Investment in Shares of Subsidiary & Associate Companies
In Bangladesh
Sonali Investment Limited - - 2,000,000,000 2,000,000,000
Sonali Intellect Limited 26,250,000 26,250,000 26,250,000 26,250,000
Outside Bangladesh
Sonali Exchange Co. Inc. (USA) - - 80,561,045 80,655,000
Sonali Bank (UK) Limited 3,347,774,007 3,248,476,868 3,347,774,007 3,248,476,868
3,374,024,007 3,274,726,868 5,454,585,052 5,355,381,868
9.02 Stationery, Stamps and Printing
Materials in hand
Stamps on hand 11,404,265 11,230,068 11,404,265 11,230,068
Stationery on hand 111,585,963 103,194,226 111,585,963 103,194,226
122,990,228 114,424,293 122,990,228 114,424,293
9.03 Advance Rent and Advertisement etc.
Advance Rent (Non Interest Bearing) 101,001,389 66,142,235 101,001,389 66,142,235
101,001,389 66,142,235 101,001,389 66,142,235
9.04 Interest, Commission & Exchange
receivable
i) Interest receivable 15,888,136,018 16,463,224,438 15,888,136,018 16,463,224,437
ii) Commission receivable 4,478,135,351 3,589,118,381 4,478,135,351 3,589,118,381
iii) Others receivable 115,279,086 9,667,766 - -
20,481,550,454 20,062,010,586 20,366,271,368 20,052,342,818
9.05 Preliminary, Formation and Organization Expenses, Renovation/development Expenses, and prepaid
Expenses
Prepaid Expenses (Transferred from adjusting A/C)
Rent - - - -
Salary 4,049,096 3,878,369 4,049,096 3,878,369
Law charges - - - -
Postage 612,359 242,076 612,359 242,076
Sundries 309,271 325,154 309,271 325,154
4,970,726 4,445,599 4,970,726 4,445,599
9.06 Branch Adjustment
Debit Balance
Sonali Bank General Account Balance 6,164,655,742,084 5,734,207,753,741 6,164,655,742,084 5,734,207,753,741
Main Office Account Balance (New) 260,847,588,982 260,847,588,982 260,847,588,982 260,847,588,982
Sonali Bank General Account (RMS+) 7,474,824,783,391 6,579,182,583,987 7,474,824,783,391 6,579,182,583,987
Sonali Bank General Account (CBS) 6,359,930,353,494 4,694,587,768,787 6,359,930,353,494 4,694,587,768,787
20,260,258,467,951 17,268,825,695,497 20,260,258,467,951 17,268,825,695,497
Less: Credit Balance
Sonali Bank General
6,161,893,199,577 5,731,454,430,436 6,161,893,199,577 5,731,454,430,436
Account Balance
Main Office Account Balance (New) 260,699,086,501 260,699,086,501 260,699,086,501 260,699,086,501
Sonali Bank General
7,435,643,653,201 6,550,916,146,400 7,435,643,653,201 6,550,916,146,400
Account (RMS+)
Sonali Bank General
6,359,930,353,494 4,694,587,768,787 6,359,930,353,494 4,694,587,768,787
Account (CBS)
Settlement Account Credit Balance - 25,252 - 25,252
20,218,166,292,773 17,237,657,457,375 20,218,166,292,773 17,237,657,457,375
42,092,175,178 31,168,238,122 42,092,175,178 31,168,238,122
276
Amount in Taka
2020 2019 2020 2019
9.06.01 Provision against Branch Adjustment (Unreconciled Entries)
In response to Bank request dated 14 June 2021, Bangladesh Bank allowed deferral through vide no- DOS
(CAMS)1157/01(II)-C/2021-2789 dated 29 June 2021 to maintain required provision against branch adjustment
(unreconciled entries) as required for the year ended 31 December 2020. Accordingly Bank has maintained
the provision amounting taka 200 crore by relishing deferral of taka 747.96 crore.
9.07 Suspense Account
Pre-Paid Expenses 2,677,518 1,338,835 2,677,518 1,338,835
Dead Stock 61,292 2,774,635 61,292 2,774,635
Building Construction 540,000 320,000 540,000 320,000
Advance Recoverable 1,405,750 9,571,491 1,405,750 9,571,491
Traveling Expenses 6,692,952 140,000 6,692,952 140,000
Advance Rent 3,962,200 5,909,618 3,962,200 5,909,618
Insurance 767,396 392,050 767,396 392,050
Miscellaneous 149,011,589 5,189,093,296 149,011,589 5,189,093,296
165,118,697 5,209,539,925 165,118,697 5,209,539,925
9.08 Others :
Demand Draft Paid in Ex-Advice 54,386,228 64,033,117 54,386,228 64,033,117
Govt. Demand Draft Paid in
1,570,210 1,590,792 1,570,210 1,590,792
Ex-Advice
Protested Bills 294,663,961 293,810,361 294,663,961 293,810,361
Adjusting A/C Debit Balance 865,769,318 874,525,173 865,769,318 874,525,173
Income Tax Deducted at Source 23,832,043,223 21,437,080,878 23,832,043,223 21,437,080,878
SBL Employee Pension
1,442,642,103 1,374,681,998 1,442,642,103 1,374,681,998
fund Investment
SBL Employee PDCRB fund
4,176,259,894 7,676,259,894 4,176,259,894 7,676,259,894
Investment
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) 612,292,176 532,152,832 612,292,176 532,152,832
Loan Exemption Under Jute
5,094,543,083 5,094,543,083 5,094,543,083 5,094,543,083
Sectors Reform Proj. 94-95.
Demand Drafts Purchased 392,252,910 777,996,343 392,252,910 777,996,342
Pension Bills (Army) 3,486,261,471 3,582,856,304 3,486,261,471 3,582,856,304
Pension Bills(Civil) 244,755,579 1,282,495,379 244,755,579 1,282,495,379
Sanchaypatra Encashment A/c 10,110,246,412 8,016,594,597 10,110,246,412 8,016,594,597
Agri Exemption A/C
99,557,837 99,557,837 99,557,837 99,557,837
affected by River Erosion
Wage Earners' Bond
1,053,475,684 1,229,429,078 1,053,475,684 1,229,429,078
Encashment A/C.
NRT A/C Dr. Balance 435,775,867 447,417,149 435,775,867 447,417,149
Deferred Tax assets 9.08.01 27,508,414,082 29,109,164,433 27,500,378,525 29,102,203,487
Army Pension bill Purchased A/C New 12,090,005,145 10,710,019,282 12,090,005,145 10,710,019,282
Advance Payment of Income Tax 7,604,712,953 7,123,417,131 7,526,323,815 7,026,323,815
Preliminery Expenses - HR
47,188,984 50,856,176 47,188,984 50,856,176
Recruitment A/C
ATM Settlement Account Debit Balance 414,248,361 92,658,233 414,248,361 92,658,233
SECI Settlement Account Debit Balance 504,810,243 348,831,171 504,810,243 348,831,171
Clearing Settlement Account Debit Balance 30,238,969 16,808,156 30,238,969 16,808,156
Govt. Transaction Settlement Account
12,363,214,551 12,718,590,059 12,363,214,551 12,718,590,059
Debit Balance
Placement With Solicitation Account 164,717,013 164,717,012 164,717,013 164,717,012
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Others Current assets of SECI 118,723 9,098,393 - -
Branch Reconstruction A/C 50,195 50,195 50,195 50,195
Receivable - Exchange Rate
41 - 41 -
Fluctuation of Biman Loan
Mobile Financial Services Link
3,301 - 3,301 -
Settlement Account Debit Balance
Non-Interest Bearing Blocked Account
3,471,349,961 - 3,471,349,961 -
for COVID-19
Receivable from Govt. Under Savings
Certificate Issued to Workers of BJMC 3,542,199,340 - 3,542,199,340 -
against Retirement Benefit
Total 120,755,445,864 113,665,876,840 120,668,902,446 113,552,724,184
9.08.01 Deferred Tax assets
Opening Balance 29,109,164,433 30,695,626,273 29,102,203,487 30,689,808,423
Less: Adjustment during the year 9.08.01.01 1,600,750,351 1,586,461,840 1,601,824,962 1,587,604,936
Closing Balance 27,508,414,082 29,109,164,433 27,500,378,525 29,102,203,487
9.08.01.01 Deferred Tax (Assets)/ Liabilities
i) Carrying amount of Fixed Assets
a) Carrying amount at balance sheet 33,250,002,176 33,460,873,022 33,248,770,597 33,458,614,186
date
Less: Land Value and building 29,991,115,574 30,281,379,035 29,991,115,574 30,281,379,035
construction Amount
Carrying value without considering 3,258,886,602 3,179,493,987 3,257,655,023 3,177,235,151
land value
b) Tax base 2,451,363,433 2,438,803,940 2,456,207,427 2,438,803,940
c) Taxable/(Deductible) Temporary
807,523,169 740,690,047 801,447,596 738,431,211
Difference (a-b)
ii) Employees Liabilities
a) Carrying amount at balance sheet
date
Provision for pension fund (1,695,422,274) (1,733,812,393) (1,695,422,274) (1,733,812,393)
Provision for PDCRB fund (5,887,013,188) (9,636,966,300) (5,887,013,188) (9,636,966,300)
Provision for Employees benefit (35,634) (35,634) (35,634) (35,634)
Total (7,582,471,097) (11,370,814,327) (7,582,471,097) (11,370,814,327)
b) Tax base - - - -
c) Taxable/(Deductible) Temporary (7,582,471,097) (11,370,814,327) (7,582,471,097) (11,370,814,327)
Difference (a-b)
iii) Provision for loans and advances
a) Carrying amount at balance
- - - -
sheet date
Provision for Classified loan and
(56,857,615,093) (52,426,841,335) (56,831,450,627) (52,407,180,134)
advances
Provision for Un-Classified loans - (5,357,515,747) - (5,357,515,747)
b) Tax base - - - -
c) Taxable/(Deductible) Temporary (56,857,615,093) (57,784,357,082) (56,831,450,627) (57,764,695,881)
Difference (a-b)
iv) Provision for other assets
a) Carrying amount at balance sheet date (3,928,626,406) (1,475,487,235) (3,928,626,406) (1,475,487,235)
b) Tax base - - - -
(3,928,626,406) (1,475,487,235) (3,928,626,406) (1,475,487,235)
Difference (a-b)
278
Amount in Taka
2020 2019 2020 2019
v) Provision for diminishing value of
investment
a) Carrying amount at balance sheet date (1,783,008,468) (2,667,225,276) (1,783,008,468) (2,667,225,276)
b) Tax base - - - -
(1,783,008,468) (2,667,225,276) (1,783,008,468) (2,667,225,276)
Difference (a-b)
vi) Provision for Othr Bank's and NBFI
a) Carrying amount at balance sheet date (745,200,000) - (745,200,000) -
b) Tax base - - - -
(745,200,000) - (745,200,000) -
Difference (a-b)
vii) Provision for Off Balance Sheet Exposure
a) Carrying amount at balance sheet date - (2,216,136,167) - (2,216,136,167)
b) Tax base - - - -
- (2,216,136,167) - (2,216,136,167)
Difference (a-b)
viii) Total Temporary Difference (70,089,397,894) (74,773,330,040) (70,069,309,001) (74,755,927,675)
ix) Tax Rate ( 10% to 40%) ( 10% to 40%) ( 10% to 40%) ( 10% to 40%)
x) Deferred Tax Assets (27,500,856,617) (29,109,164,433) (27,492,821,060) (29,102,203,487)
xi) Closing Deferred Tax (27,500,856,617) (29,109,164,433) (27,492,821,060) (29,102,203,487)
Assets
xii) Opening Deferred Tax 29,109,164,433 30,695,626,273 29,102,203,487 30,689,808,423
Decrease/(Increase) of Deferred Tax 1,608,307,816 1,586,461,840 1,609,382,427 1,587,604,936
Assets/Liabilities
Less: Deferred Tax Income against 7,557,465 - 7,557,465 -
IFRS-16
Deferred Tax Liabilities 1,600,750,351 1,586,461,840 1,601,824,962 1,587,604,936
9.09 Provision Maintained against Other Assets
Cash in Hand (Obsolete
614,675 - 614,675 -
Indian Rupee)
Stamp on Hand (Obsolete) 664,850 - 664,850 -
Suspense Account 139,600,000 133,383,105 139,600,000 133,383,105
Protested Bills 294,663,961 293,810,361 294,663,961 293,810,361
Branch Reconstruction Account 50,195 50,195 50,195 50,195
Agri Loan Exemption affected by River
99,557,837 99,557,837 99,557,837 99,557,837
Erosion
BRDB UCCA Crops Loans Int.Penal
511,283,719 511,283,719 511,283,719 511,283,719
Int. Exempt. A/Cs
Jute Sector Reform Project 9.09a 2,100,000,000 1,800,000,000 2,100,000,000 1,800,000,000
NRT A/C Dr. Balance 435,775,867 447,417,149 435,775,867 447,417,149
Pension Bills (Army) 500,000,000 - 500,000,000 -
Preliminery Expenses HR Recruitment 9,500,000 - 9,500,000 -
Others 1,158,700,000 - 1,158,700,000 -
Sub Total 5,250,411,104 3,285,502,366 5,250,411,104 3,285,502,366
Branch Adjustment
9.06.01 2,000,000,000 1,500,000,000 2,000,000,000 1,500,000,000
(Unreconciled Entries)
Grand Total 7,250,411,104 4,785,502,366 7,250,411,104 4,785,502,366
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 2012 and total provision kept Tk. 2100 million up to 31 December
2020.
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
9.10 Movement of the Provision against Other Assets
Opening balance 4,785,502,366 4,221,822,451 4,785,502,366 4,221,822,451
Less: Written- off during the year - - - -
4,785,502,366 4,221,822,451 4,785,502,366 4,221,822,451
Less: Transferred to P&L A/C - - - -
4,785,502,366 4,221,822,451 4,785,502,366 4,221,822,451
Add: Addition during the year 2,464,908,738 563,679,915 2,464,908,738 563,679,915
7,250,411,104 4,785,502,366 7,250,411,104 4,785,502,366
9.11 Provision made against other assets
Other Assets 6,739,127,385 4,785,502,366 6,739,127,385 4,785,502,366
Interest reserve against
511,283,719 - 511,283,719 -
BRDB UCCA Crops Loan
7,250,411,104 4,785,502,366 7,250,411,104 4,785,502,366
10.00 Non Banking Assets - - - -
11.00 Borrowings from other banks, financial institutions & agents
In Bangladesh 549,250,183 604,175,183 549,250,183 604,175,183
Outside Bangladesh 13,415,676 - - -
562,665,859 604,175,183 549,250,183 604,175,183
11.01 In Bangladesh 11.01
Bangladesh Bank Demand Loan: 11.02
Refinance Against RHFG from
70,000 70,000 70,000 70,000
Bangladesh Bank
Refinance Against Jute Sector from
549,180,183 604,105,183 549,180,183 604,105,183
Bangladesh Bank
549,250,183 604,175,183 549,250,183 604,175,183
11.01.01 Security against borrowings from other banks, financial institutions and agents
Secured (against bills) - - - -
Unsecured 549,250,183 604,175,183 549,250,183 604,175,183
549,250,183 604,175,183 549,250,183 604,175,183
11.02 Outside Bangladesh
Sonali Exchange Co. Inc 13,415,676 - - -
Overseas Branches - - - -
13,415,676 - - -
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 562,665,859 604,175,183 549,250,183 604,175,183
562,665,859 604,175,183 549,250,183 604,175,183
12.00 Deposits and other accounts
Current Deposit & Other
12.02.01(a+b+c) 242,819,548,854 242,142,019,430 243,012,272,784 242,286,105,501
Accounts
Bills Payable 12.02.02(a+b+c) 11,043,066,246 10,909,899,482 11,043,066,246 10,909,899,482
Savings Deposits 12.02.03(a+b+c) 451,471,060,424 387,366,063,760 451,471,060,424 387,366,063,760
Fixed Deposits 12.02.04(a+b+c) 553,247,976,484 518,225,712,555 553,247,976,484 518,225,712,555
Other Deposits 12.02.05(a+b+c) 11,888,727 - 11,888,727 -
Total Deposits and other accounts 1,258,593,540,735 1,158,643,695,226 1,258,786,264,665 1,158,787,781,297
280
Amount in Taka
2020 2019 2020 2019
Deposits and other accounts
Inter Bank Deposits 12.01(A) 52,334,385,432 40,660,912,243 52,334,385,432 40,660,912,243
Other than Bank Deposits 12.01(B) 1,201,827,344,858 1,118,126,869,054 1,201,827,344,858 1,118,126,869,054
1,254,161,730,290 1,158,787,781,297 1,254,161,730,290 1,158,787,781,297
Islamic Banking Window 12.01(C) 4,624,534,374 - 4,624,534,374 -
Less: Inter Company
192,723,930 144,086,071 - -
balance eliminated
Total 1,258,593,540,735 1,158,643,695,226 1,258,786,264,665 1,158,787,781,297
A. Inter bank deposits
Payable on Demand 24,596,112,912 19,110,628,754 24,596,112,912 19,110,628,754
Other than Demand 27,738,272,520 21,550,283,489 27,738,272,520 21,550,283,489
52,334,385,432 40,660,912,243 52,334,385,432 40,660,912,243
B. Other deposits
Payable on Demand 467,520,544,505 441,562,801,619 467,520,544,505 441,562,801,619
Other than Demand 734,306,800,354 676,564,067,435 734,306,800,354 676,564,067,435
1,201,827,344,858 1,118,126,869,054 1,201,827,344,858 1,118,126,869,054
C. Islamic Banking Window 4,624,534,374 - 4,624,534,374 -
Less: Inter Company balance
192,723,930 144,086,071 - -
Eliminated
Total 1,258,593,540,735 1,158,643,695,226 1,258,786,264,665 1,158,787,781,297
12.02 Deposits and Other Accounts (Category wise)
Domestic Branches
Current and Contingency 12.02.1.a 242,549,293,651 241,330,498,829 242,742,017,581 241,474,584,900
Bills Payable 12.02.2.a 11,042,487,462 10,909,899,482 11,042,487,462 10,909,899,482
Savings Bank Account 12.02.3.a 451,299,461,994 387,304,944,552 451,299,461,994

387,304,944,552
Fixed Deposits 12.02.4.a 548,487,080,609 517,971,381,380 548,487,080,609 517,971,381,380
Other Deposits 12.02.5.a - - - -
1,253,378,323,716 1,157,516,724,242 1,253,571,047,646 1,157,660,810,313
Overseas Branches
Current and Contingency 12.02.1.b 264,978,286 811,520,601 264,978,286 811,520,601
Bills Payable 12.02.2.b 578,784 - 578,784 -
Savings Bank Account 12.02.3.b 63,376,874 61,119,208 63,376,874 61,119,208
Fixed Deposit 12.02.4.b 252,864,768 254,331,175 252,864,768 254,331,175
Other Deposits 12.02.5.b 8,883,932 - 8,883,932 -
590,682,644 1,126,970,984 590,682,644 1,126,970,984
Al-Wadeeah Current Deposits 12.02.1.c 5,276,916 - 5,276,916 -
Bills Payable 12.02.2.c - - - -
Mudarabah Savings Deposits 12.02.3.c 108,221,556 - 108,221,556 -
Mudarabah Fixed Deposit 12.02.4.c 4,508,031,106 - 4,508,031,106 -
Other Mudarabah Deposits 12.02.5.c 3,004,796 - 3,004,796 -
4,624,534,374 - 4,624,534,374 -
Total 1,258,593,540,735 1,158,643,695,226 1,258,786,264,665 1,158,787,781,297
12.02.1.a Current and Contingency (Domestic Branches)
Current Account (Credit Balance) 220,322,299,826 216,638,070,387 220,322,299,826 216,638,070,387
Hajj Deposits 41,880,707 8,036,623 41,880,707 8,036,623
Margin on Letter of Credit 1,783,907,445 2,050,012,364 1,783,907,445 2,050,012,364
Margin on Bank Guarantee 37,581,102 31,461,554 37,581,102 31,461,554
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Foreign Bank Deposit 478,632,425 415,816,059 478,632,425 415,816,059
Current Account Barter
4,316,406,332 8,477,901,458 4,316,406,332 8,477,901,458
Credit Balance
Branch Sundry Deposit A/C 3,732,400,959 2,073,083,569 3,732,400,959 2,073,083,569
Call Deposit 103,578,487 27,439,449 103,578,487 27,439,449
Exporters' Foreign Currency
8,117,311,029 8,072,463,905 8,117,311,029 8,072,463,905
Retention Quota
Foreign Currency Deposit 3,248,798,486 3,184,135,173 3,248,798,486 3,184,135,173
Non Resident F.C.D (NFCD)
170,035,011 168,768,497 170,035,011 168,768,497
& R.F.C.D Account
Sonali e-Wallet Account 2,801,404 - 2,801,404 -
Credit Balance of Loan & Advances 386,384,368 327,395,862 386,384,368 327,395,862
242,742,017,581 241,474,584,900 242,742,017,581 241,474,584,900
Less: Inter Company
192,723,930 144,086,071 - -
balance Eliminated
Total 242,549,293,651 241,330,498,829 242,742,017,581 241,474,584,900
12.02.1.b Current and Contingency 264,978,286 811,520,601 264,978,286 811,520,601

(Overseas Branches)
12.02.1.c Current and Contingency 5,276,916 - 5,276,916 -
(Islamic Banking Window)
Total 242,819,548,854 242,142,019,430 243,012,272,784 242,286,105,501
12.02.2.a Bills Payable ( Domestic Branches)
Draft Payable 2,237,389,579 2,531,316,320 2,237,389,579 2,531,316,320
Govt. Draft Payable 32,549,181 55,952,171 32,549,181 55,952,171
Payment Order 8,702,179,367 8,252,255,432 8,702,179,367 8,252,255,432
Foreign Draft/Travelers
303,688 303,688 303,688 303,688
Cheque Issued A/c.
Foreign Draft Payable A/c. 70,065,647 70,071,871 70,065,647 70,071,871
11,042,487,462 10,909,899,482 11,042,487,462 10,909,899,482
12.02.2.b Bills Payable (Overseas Branches) 578,784 - 578,784 -
12.02.2.c Bills Payable (Islamic Banking Window) - - - -
Total 11,043,066,246 10,909,899,482 11,043,066,246 10,909,899,482
12.02.3.a Savings Bank Deposits (Domestic Branches)
Savings Bank Account 450,309,844,714 386,501,041,951 450,309,844,714 386,501,041,951
Daily Profit Scheme 385,297,825 272,567,286 385,297,825 272,567,286
School Banking Scheme 604,319,455 531,335,315 604,319,455 531,335,315
451,299,461,994 387,304,944,552 451,299,461,994 387,304,944,552
12.02.3.b Savings Bank Deposits (Overseas Branches) 63,376,874 61,119,208 63,376,874 61,119,208
12.02.3.c Savings Bank Deposits 108,221,556 - 108,221,556 -
(Islamic Banking Window)
Total 451,471,060,424 387,366,063,760 451,471,060,424 387,366,063,760
12.02.4.a Fixed Deposit (Domestic Branches)
Fixed Deposits 283,261,833,358 280,736,092,713 283,261,833,358 280,736,092,713
Special Notice deposits 166,737,270,718 134,842,868,221 166,737,270,718 134,842,868,221
Deposit Pension Scheme 11,106,999 11,790,201 11,106,999 11,790,201
Special Deposit Pension Scheme 13,656,771 14,216,365 13,656,771 14,216,365
Sonali Deposit Scheme 10,250,567,017 11,434,392,575 10,250,567,017 11,434,392,575
Education Deposit Scheme. 2,998,986,224 3,425,549,215 2,998,986,224 3,425,549,215
Medicare Deposit Scheme 16,141,846,670 17,354,739,851 16,141,846,670 17,354,739,851
Rural Deposit Schemes 736,436,146 925,146,755 736,436,146 925,146,755
282
Amount in Taka
2020 2019 2020 2019
Monthly Earning Schemes 551,782,003 1,872,347,317 551,782,003 1,872,347,317
Marriage Savings Schemes 2,980,073,312 3,410,067,417 2,980,073,312 3,410,067,417
Double Benefit Scheme 20,185,662,810 21,382,160,814 20,185,662,810 21,382,160,814
Triple Benefit Scheme 2,214,849,728 2,012,964,995 2,214,849,728 2,012,964,995
Millionaire Deposite Scheme 25,853,895,699 21,870,842,001 25,853,895,699 21,870,842,001
Non Resident Deposit Scheme 6,260,632 4,728,669 6,260,632 4,728,669
Retirement Savings Scheme 19,991,187 27,884,968 19,991,187 27,884,968
Sonali Bank Retirement Savings
1,346,701,064 1,424,467,777 1,346,701,064 1,424,467,777
Scheme
Deposit Pension Payment
4,953,024 4,331,244 4,953,024 4,331,244
Account
Shadheen Sanchay Scheme 237,155,916 91,428,834 237,155,916 91,428,834
S.B.Employees General Provident Fund 14,520,198,490 12,633,852,125 14,520,198,490 12,633,852,125
S.B. Employees Contributory Provident
413,852,842 4,491,509,324 413,852,842 4,491,509,324
Fund
548,487,080,609 517,971,381,380 548,487,080,609 517,971,381,380
12.02.4.b Fixed Deposit (Overseas Branches) 252,864,768 254,331,175 252,864,768 254,331,175
12.02.4.c Fixed Deposit (Islamic Banking 4,508,031,106 - 4,508,031,106 -
Window)
Total 553,247,976,484 518,225,712,555 553,247,976,484 518,225,712,555
12.02.5.a Other Deposits (Domestic Branches) - - - -
12.02.5.b Other Deposits (Overseas Branches) 8,883,932 - 8,883,932 -
12.02.5.c Other Deposits (Islamic Banking 3,004,795 - 3,004,795 -
Window)
Total 11,888,727 - 11,888,727 -
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
Particulars No.of Branches
2020 2019
12.03 In Bangladesh (GM's Office wise)
Dhaka Division-1 119 337,464,051,443 328,396,605,170
Dhaka Division-2 96 230,132,166,539 196,922,055,020
Chattagram 109 172,415,510,200 178,986,851,856
Khulna 124 73,062,299,596 64,194,057,234
Rangpur 116 48,774,278,854 42,724,496,371
Faridpur 105 62,789,083,242 52,627,847,310
Mymensingh 116 69,198,464,668 60,695,683,207
Sylhet 80 46,134,959,633 41,999,681,924
Barishal 78 39,514,415,561 35,938,702,566
Rajshahi 142 68,983,345,194 62,219,054,696
Cumilla 139 105,102,472,715 92,955,774,959
1224 1,253,571,047,646 1,157,660,810,313
Islamic Banking Window 4,624,534,374 -
Overseas Branches 2 590,682,644 1,126,970,984
Total 1226 1,258,786,264,665 1,158,787,781,297
No.of Amount in Taka % of Total Deposit

12.03.01 Deposits and Other Accounts (Geographical Location-wise Deposits)
In Bangladesh
Urban 701 935,768,556,731 714,927,375,670 74.34 61.70
Rural 523 317,802,490,915 442,733,434,643 25.25 38.21
Sub Total 1224 1,253,571,047,646 1,157,660,810,313 99.59 99.90
Overseas Branches 2 590,682,644 1,126,970,984 0.05 0.10
Total 1226 1,258,786,264,665 1,158,787,781,297 100 100
Head office is included in Urban
12.03.1.a In Bangladesh (GM's Office and District wise)
Dhaka GM's Office
Dhaka (1&2) 126 486,751,795,580 453,672,077,722 38.67 39.15
Gazipur 22 33,491,695,019 31,752,855,186 2.66 2.74
Munshiganj 17 12,679,961,223 10,177,361,238 1.01 0.88
Narayanganj 18 10,111,925,262 8,805,790,716 0.80 0.76
Narsingdi 21 13,864,129,965 11,735,117,812 1.10 1.01
Manikganj 11 10,696,710,933 9,175,457,516 0.85 0.79
Sub Total 215 567,596,217,982 525,318,660,190 45.09 45.33
Dhaka GM's Office
Chattogram GM's Office
Chattogram North 27 22,672,223,529 34,665,912,811 1.80 2.99
Chattogram South 29 116,885,015,834 114,876,909,051 9.29 9.91
Rangamati 23 9,263,724,063 8,457,545,467 0.74 0.73
Bandarbon 7 2,431,832,539 2,070,405,792 0.19 0.18
Cox's Bazar 10 12,548,131,628 10,980,470,986 1.00 0.95
Patiya 13 8,614,582,609 7,935,607,750 0.68 0.68
Sub Total 109 172,415,510,200 178,986,851,856 13.70 15.45
Khulna GM's Office
Jashore 35 18,566,706,469 14,044,766,115 1.47 1.21
Jhenaidah 23 11,795,065,350 10,597,039,533 0.94 0.91
Khulna 24 19,748,713,928 19,713,456,927 1.57 1.70
284

Satkhira 17 8,422,682,748 7,883,753,867 0.67 0.68
Bagerhat 14 9,602,015,939 7,386,431,437 0.76 0.64
Narail 11 4,927,115,162 4,568,609,356 0.39 0.39
Sub Total 124 73,062,299,596 64,194,057,234 5.80 5.54
Rangpur GM's Office
Dinajpur 32 12,342,802,464 10,686,738,039 0.98 0.92
Gaibandha 16 6,904,349,559 6,115,569,803 0.55 0.53
Kurigram 16 7,518,685,091 6,589,167,796 0.60 0.57
Rangpur 21 11,204,975,589 9,874,521,862 0.89 0.85
Nilphamari 10 4,142,629,695 3,583,054,301 0.33 0.31
Thakurgaon 21 6,660,836,455 5,875,444,569 0.53 0.51
Sub Total 116 48,774,278,854 42,724,496,371 3.87 3.59
Faridpur GM's Office
Chuadanga 19 9,683,923,143 8,290,283,019 0.77 0.72
Faridpur 23 16,798,112,348 13,771,777,441 1.33 1.19
Kushtia 22 9,722,852,777 8,547,677,518 0.77 0.74
Madaripur 17 12,935,799,603 9,955,232,405 1.03 0.86
Gopalgonj 12 7,362,001,849 6,443,144,975 0.58 0.56
Rajbari 12 6,286,393,523 5,619,731,952 0.50 0.48
Sub Total 105 62,789,083,242 52,627,847,310 4.99 4.54
Mymensingh GM's Office
Jamalpur 19 7,750,805,077 7,085,438,876 0.62 0.61
Kishoregonj 17 9,494,830,371 8,237,591,379 0.75 0.71
Mymensingh 25 17,039,349,480 15,390,151,456 1.35 1.33
Tangail 32 24,732,143,949 21,294,521,556 1.96 1.84
Netrokona 14 5,719,975,776 4,995,405,295 0.45 0.43
Sherpur 9 4,461,360,017 3,692,574,646 0.35 0.32
Sub Total 116 69,198,464,668 60,695,683,207 5.50 5.24
Sylhet GM's Office
Moulvibazar 22 9,582,366,576 8,457,231,213 0.76 0.73
Sylhet 32 23,517,450,317 22,062,894,928 1.87 1.90
Habiganj 13 6,320,100,121 5,697,355,840 0.50 0.49
Sunamganj 13 6,715,042,619 5,782,199,942 0.53 0.50
Sub Total 80 46,134,959,633 41,999,681,924 3.67 3.62
Barishal GM's Office
Barishal 37 19,779,727,120 17,935,606,908 1.57 1.55
Patuakhali 21 9,841,335,817 8,754,792,647 0.78 0.76
Bhola 10 4,455,366,368 4,270,752,781 0.35 0.37
Pirojpur 10 5,437,986,256 4,977,550,230 0.43 0.43
Sub Total 78 39,514,415,561 35,938,702,566 3.14 3.10
Rajshahi GM's Office
Bogura 32 14,092,614,433 10,273,788,020 1.12 0.89
Naogaon 19 6,781,880,343 5,980,921,390 0.54 0.52
Pabna 18 11,090,337,255 9,791,771,226 0.88 0.85
Rajshahi 23 14,566,388,805 15,114,247,256 1.16 1.30
Sirajganj 21 10,237,542,493 9,713,126,929 0.81 0.84
Chapai Nawabganj 8 3,877,326,728 3,542,739,016 0.31 0.31
Joypurhat 8 2,954,880,728 2,792,399,058 0.23 0.24
Natore 13 5,382,374,409 5,010,061,801 0.43 0.43
Sub Total 142 68,983,345,194 62,219,054,696 5.48 5.37
Annual Report 2020

YEAR OF EXCELLENCE

Cumilla GM's Office
Brahmanbaria 24 20,656,987,057 18,418,964,620 1.64 1.59
Chadpur 20 11,949,417,588 10,736,077,001 0.95 0.93
Cumilla 38 38,974,467,044 34,604,964,778 3.10 2.99
Feni 17 10,894,236,179 9,448,943,137 0.87 0.82
Noakhali 28 15,720,850,161 13,682,564,647 1.25 1.18
Laxmipur 12 6,906,514,687 6,064,260,777 0.55 0.52
Sub Total 139 105,102,472,715 92,955,774,959 8.35 8.02
Total 1224 1,253,571,047,646 1,157,660,810,313 99.59 99.87
12.03.2.b Outside Bangladesh
Overseas Branches 2 590,682,644 1,126,970,984 0.05 0.10
Total Deposits and Other
1226 1,258,786,264,665 1,158,787,781,297 100 100
Accounts
Head office is included in Number of Branches and Deposits and Other Accounts
Amount in Taka
Particulars
2020 2019
12.04 Sector Wise Deposit Including Bills Payable
Presidency, Prime Minister Office and Judiciary 112,495,554,965 141,525,203,070
Autonomous and Semi-autonomous bodies 136,289,903,552 127,032,083,809
Other Public Sector 222,847,191,209 268,826,055,200
Banking Sector 52,334,384,722 35,932,567,473
Private Sector 729,604,013,198 584,344,900,761
1,253,571,047,646 1,157,660,810,313
Overseas Branches 590,682,644 1,126,970,984
1,258,786,264,665 1,158,787,781,297
Amount in Taka
2020 2019 2020 2019
12.05.a Maturity Grouping of deposits and other accounts (Including Bills Payable)
Repayable on Demand 492,116,657,417 460,673,430,373 547,771,548,364 460,673,430,373
Repayable within 1 Month 126,428,849,966 106,432,844,948 117,327,848,532 106,432,844,948
Over 1 month but within 6 Months 261,156,909,160 249,313,209,180 258,764,350,209 249,313,209,180
Over 6 months but within 1 year 186,559,794,791 166,985,799,012 149,445,970,457 166,985,799,012
Over 1 year but within 5 years 93,872,372,382 85,993,335,731 93,038,965,219 85,992,754,613
Over 5 years but within 10 years 85,888,280,915 79,186,245,103 86,197,168,140 79,186,245,103
Over 10 years 12,763,400,035 10,202,916,950 6,240,413,745 10,203,498,068
1,258,786,264,665 1,158,787,781,297 1,258,786,264,665 1,158,787,781,297
192,723,930 144,086,071 - -
Eliminated
Total 1,258,593,540,735 1,158,643,695,226 1,258,786,264,665 1,158,787,781,297
12.05.b Maturity Grouping of Inter-Bank Deposits
Over 6 months but within 1 year 5,233,636,325 4,066,091,224 5,233,636,325 4,066,091,224
Over 5 years but within 10 years - - - -
Over 10 years - - - -
Sub Total 52,334,385,432 40,660,912,243 52,334,385,432 40,660,912,243
286
Amount in Taka
2020 2019 2020 2019
Other Deposits
Over 6 months but within 1 year 162,919,707,788

181,326,158,467 162,919,707,788 181,326,158,467
Over 5 years but within 10 years 85,888,280,915 90,095,563,467 85,888,280,915 90,096,144,585
Over 10 years 12,763,400,035 10,203,498,068 12,763,400,035 10,203,498,068
Sub Total 1,206,451,879,233 1,118,126,869,054 1,206,451,879,233 1,118,126,869,054
192,723,930 144,086,071 - -
Eliminated
Total 1,258,593,540,735 1,158,643,695,226 1,258,786,264,665 1,158,787,781,297
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 - - - -
11,043,066,246 10,909,899,482 11,043,066,246 10,909,899,482
Un-claimed deposits for 10 years
or more held by the bank as on 31 4,643,561 5,259,154 4,643,561 5,259,154
December 2020
13.00 Other liabilities

Domestic Branches
Provision for Classified
13.01.a 57,705,451,597 53,016,379,222 57,705,451,597 53,016,379,222
loans including writ
Provision for Un-Classified loans 13.01.b 12,460,267,522 5,357,515,747 12,460,267,522 5,357,515,747
Interest Suspense 13.02 46,374,146,765 39,948,231,425 46,020,213,019 39,595,224,908
Provision against diminishing
13.03 1,866,304,803 2,750,521,610 1,783,008,468 2,667,225,276
value of Investment in Share
Provision against Portfolio Loan 389,011,538 389,011,538 - -
Liability for employees
13.04 1,695,422,274 1,733,812,393 1,695,422,274 1,733,812,393
benefit ( Pension fund)
Liability for employees
13.05 5,887,013,188 9,636,966,300 5,887,013,188 9,636,966,300
benefit ( PDCRB fund)
Provison for employee benefits 35,634 35,634 35,634 35,634
Provision for Income Tax 13.06 6,110,187,428 5,622,217,457 6,041,899,316 5,535,924,154
Provision for Other assets 09.09 7,250,411,104 4,785,502,366 7,250,411,104 4,785,502,366
Provision for debenture (Public and Private) 5,944,126 5,944,125 5,944,125 5,944,125
Provision for Balance with Bangladesh Bank 468,800,000 468,800,000 468,800,000 468,800,000
BB Refinance Scheme for
79,139 79,139 79,139 79,139
SME (Ren. Energy/Solar Energy)
BB Refinance Scheme for S.M.L
744,750 - 744,750 -
of Tk.10 A/C Holders
Provision for Salary 50,463 - 50,463 -
Employees Tax Deducted at source 7,677,518 10,051,255 7,677,518 10,051,255
Interest Payable ( For Fixed Deposit) 4,724,505,965 5,229,179,506 4,724,505,965 5,229,179,506
Interest Payable (For other Deposit) 1,310,609,860 1,258,338,853 1,310,609,860 1,258,338,853
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Income Receivable in advance 396,904 419,319 396,904 419,319
Expenses payable A/C 350,373,411 177,860,356 350,373,411 177,860,356
Provision for Off Balance Sheet
2,366,415,302 2,216,136,167 2,366,415,302 2,216,136,167
Exposure
Provision for Bonus/Ex-gratia 13.07 2,563,542,979 2,180,591,339 2,551,251,687 2,169,769,115
Provision for Start-Up Fund 32,700,000 - 32,700,000 -
Foreign Correspondent Charges 648,188 1,838,277 648,188 1,838,277
Adjusting Account Credit Balance 3,655,137 3,655,137 3,655,137 3,655,137
Provision for NOSTRO A/C 10,010,305 10,010,305 10,010,305 10,010,305
Interest Bearing FC Repayable to
50,452,179,322 54,233,838,116 50,452,179,322 54,233,838,116
Bangladesh Bank
Vocational Women's Cr.Scheme
256,353 256,353 256,353 256,353
Guarantee Fund
Agricultural Guarantee Against I.D.A.
19,562,612 19,562,612 19,562,612 19,562,612
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 I.D.A Credit -825 B.D. 4,881,122 4,881,123 4,881,122 4,881,123
Revolving fund against I.D.A. Credit -725 B.D. 37,240,733 37,240,733 37,240,733 37,240,733
Sundry Deposits (H.O) 10,666,036,489 9,569,358,493 10,666,036,490 9,569,358,493
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 of
8,479 8,479 8,479 8,479
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 Cr.Guarantee Fund 2,554,409 2,554,409 2,554,409 2,554,409
Loan from IDA Credit No. 765 BD. 56,824,870 40,770,750 56,824,870 40,770,750
Sirajganj Integrated Rural
40,488,334 39,872,211 40,488,334 39,872,211
Development Fund
Rebate A/C of Term Loans to NBFI 350,452 350,452 350,452 350,452
Provison for Other Bank's and
745,200,000 745,200,000 745,200,000 745,200,000
Financial Institutions
I.D.A. Credit -3917 B.D. 224,119,540 224,119,541 224,119,540 224,119,541
Portfolio Margin Deposit Control 43,814,309 23,010,134 - -
Remittance Payable to Beneficiary 81,784,999 63,374,284 - -
VOSTRO Accounts Balance 13.08 70,746,334 84,915,164 70,746,334 84,915,164
Expenses Payable for SIL Client Sale & Others 27,295,387 7,513,251 - -
Others liabilities of subsidiary Company SIL 140,291,937 8,158,507 - -
Others liabilities of subsidiary
161,720,525 95,940,787 - -
Company SECI
Refinance fund for Milk Product and
94,755,000 179,402,500 94,755,000 179,402,500
Artificial Inse. Scheme-RCD
E-Challan statement account 2,936,535 401,537 2,936,535 401,537
ATM Settlement account credit balance 61,677,352 49,688,121 61,677,352 49,688,121
Clearing Settlement account credit balance 41,246,955 17,805,414 41,246,955 17,805,414
18,901,970,230 36,545,050,320 18,901,970,229 36,545,050,320
Credit Balance
MCD Loan Settlement Account Credit Balance 1,648,943 1,635,881 1,648,943 1,635,881
288
Amount in Taka
2020 2019 2020 2019
Sanchaypatra Sales Account 8,343,399,150 8,458,127,529 8,343,399,150 8,458,127,529
Imprest A/C-Received from B.B
1,886,859 442,226,499 1,886,859 442,226,499
against W.E.R Account
Security Deposit of SIL 229,814 229,814 - -
Security Deposit of SECI 118,723 118,860 - -
Lease Liability against IFRS-16 404,932,399 - 404,932,399 -
Travel Tax Online Transaction (LO) Account 116,000 - 116,000 -
Travel Tax Central Recovery Account 140,250 - 140,250 -
E-Passport Central Recovery Account 347,300 - 347,300 -
4,477 - 4,477 -
Settlement A/C Credit Balance
Repayable to B.B against Stimulus Fund
Received for Worker's Salary ofExport 209,805,286 - 209,805,286 -
Oriented Industries Under COVID-19
Interest Suspense Account for COVID-19 888,216,631 - 888,216,631 -
Repayable to B.B for Fund Received
UnderAgri. Loan against Special Stimulus 222,947,000 - 222,947,000 -
RefinanceScheme (RCD) for COVID-19
FET Settlement Account Credit Balance 1,835,249,307 61,394,387.49 1,835,249,307 61,394,387
245,377,971,969 245,766,685,387 244,015,895,252 244,645,909,831
Overseas Branches
Other Liabilities 1,335,389,342 165,437,669 1,335,389,342 165,437,668
Reserve Fund 192,167,998 205,410,445 192,167,998 205,410,445
1,527,557,340 370,848,114 1,527,557,340 370,848,113
Other Liabilities 739,191,822 - 739,191,822 -
Total 247,644,721,131 246,137,533,500 246,282,644,414 245,016,757,945
13.01 Accumulated Provision for Loans and Advances
a) Provision for Classified loans Including writ
Balance at the beginning of the period 53,016,379,222 44,045,938,329 53,016,379,222 44,045,938,329
Less: Provision debited against interest waiver 169,615,666 277,041,191 169,615,666 277,041,191
52,846,763,556 43,768,897,138 52,846,763,556 43,768,897,138
Add: Provision credited against Debit
261,827 4,277,717 261,827 4,277,717
TRA from Branchs
52,847,025,383 43,773,174,855 52,847,025,383 43,773,174,855
Add: Specific Provision (including
4,818,078,643 9,243,204,367 4,818,078,643 9,243,204,367
Islami Win.) made during the year
Add: Overseas Branches 40,347,571 - 40,347,571 -
Closing Balance at the end of the period 57,705,451,597 53,016,379,222 57,705,451,597 53,016,379,222
b) Provision for Un-Classified loans
Less: Loans written off which fully
- - - -
Provided for
5,357,515,747 5,223,300,000 5,357,515,747 5,223,300,000
Add: Recovery from the Previous
- - - -
Written Off Loans
5,357,515,747 5,223,300,000 5,357,515,747 5,223,300,000
Add: Provision made during the year 6,073,144,457 134,215,747 6,073,144,457 134,215,747
Add: Transferred to Unclassified Loans
- - - -
against Writ Loans
11,430,660,204 5,357,515,747 11,430,660,204 5,357,515,747
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Less: Recovered and Provision which
- - - -
no more required
11,430,660,204 5,357,515,747 11,430,660,204 5,357,515,747
Add: Net Charge on Profit Loss Account - - - -
Add: Overseas Branches 1,501,281 - 1,501,281 -
Sub Total 11,432,161,485 5,357,515,747 11,432,161,485 5,357,515,747
Special General Provision against
1,028,106,037 - 1,028,106,037 -
COVID-19
Sub Total 1,028,106,037 - 1,028,106,037 -
Special General Provision against COVID-19 has been maintained as per Bangladesh Bank, BRPD circular letter
no.56 dated 10 December 2020.This amount is included with the total Provision on Un-classified loans and
advances under note-13.01(b).
13.02 Interest Suspense
Balance at the beginning of the period
Interest Suspenses 39,945,961,385 35,856,000,189 39,592,954,868 35,482,085,060
Interest Suspenses Penal Interest 2,270,040 1,646,454 2,270,040 1,646,454
39,948,231,425 35,857,646,643 39,595,224,908 35,483,731,514
Add: Amount transferred to "Interest
- - - -
Suspense" Account during the year
Interest Suspenses Penal Interest 2,113 637,653 2,113 637,653
7,867,642,273 7,306,103,170 7,844,082,987 7,306,103,170
Less: Amount Recovered in "Interest Suspense" account during the year
Interest Suspenses Penal Interest - 14,067 - 14,067
1,441,726,932 3,215,518,388 1,419,094,875 3,194,609,776
Less: Amount written off during the year
Interest Suspenses - - - -
Interest Suspenses Penal Interest - - - -
- - - -
Closing Balance at the end of the period
Interest Suspenses Penal Interest 2,272,153 2,270,040 2,272,153 2,270,040
Total 46,374,146,765 39,948,231,425 46,020,213,019 39,595,224,908
13.03 Provision against diminishing value of Investment in Share
Add: Additional during the year (884,216,807) 1,087,688,842 (884,216,807) 1,087,688,842
Closing Balance at the end of the
1,866,304,803 2,750,521,610 1,783,008,468 2,667,225,276
period
13.04 Liability for Employees Pension fund

Less: Payment made during the year 308,507,450 1,854,625,646 308,507,450 1,854,625,646
Add: Addition during the year 270,117,331 1,937,327,623 270,117,331 1,937,327,623
1,695,422,274 1,733,812,393 1,695,422,274 1,733,812,393
period
Provision Required 1,695,422,274 1,733,812,393 1,695,422,274 1,733,812,393
Provision Maintained 1,695,422,274 1,733,812,393 1,695,422,274 1,733,812,393
Provision Surplus/(Deficit) - - - -
13.05 Liability for Employees PDCR Benefit fund
290
Amount in Taka
2020 2019 2020 2019
Balance at the beginning of
9,636,966,300 15,210,314,631 9,636,966,300 15,210,314,631
the period
Less: Payment made during the year 7,567,876,124 16,007,646,116 7,567,876,124 7,128,921,902
Add: Addition during the year 3,817,923,013 10,434,297,785 3,817,923,013 1,555,573,571
Provision Required 5,887,013,188 9,636,966,300 5,887,013,188 9,636,966,300
Provision Maintained 5,887,013,188 9,636,966,300 5,887,013,188 9,636,966,300
Provision Surplus/(Deficit) - - - -
SBL Employees PDCR Benefit fund Debit Balance and Credit Balance has rectified this year which was wrongly
posted as on 2019
13.06 Provision for Income Tax
Less: Adjustment for Excess Provision 453,936 - - -
Less: Payment during the year 33,960,790 4,332,815 - -
Add : Amount transferred during the
522,384,698 479,628,131 505,975,162 455,443,809
year
6,110,187,429 5,622,217,457 6,041,899,316 5,535,924,154
period
13.07 Provision for Bonus/Ex-gratia
Less: Payment during the year 1,670,805,907 1,878,010,545 1,668,774,975 1,876,003,126
Less: Return from Bonus 450,000,000 807,000,000 450,000,000 807,000,000
Add: Adjustment during the year 257,547 443,045 257,547 443,045
Add: Provision Made during the year 2,503,500,000 2,155,948,139 2,500,000,000 2,153,948,139
2,563,542,979 2,180,591,339 2,551,251,687 2,169,769,115
period
Annual Report 2020

YEAR OF EXCELLENCE
13.08 VOSTRO Accounts Balance

SL.
Particulars Foreign Amount in
No. FC amount Exchange rate
Currency Taka
Myanmar Foreign Trade Bank,
1 EURO 116,456.37 103.87 12,096,661
Myanmar
2 Office Account EURO 10,782.00 103.87 1,119,958
3 Sonali Bank Ltd Kolkata USD 20,155.53 84.80 1,709,211
The Jammu & Kashmir Bank
4 USD 25,158.50 84.80 2,133,468
Ltd.
Myanmar Investment & Com.
5 USD 492,400.43 84.80 41,756,098
Bank
6 Office Account USD 137,019.87 84.80 11,619,436
7 Export Development Bank Ltd. USD 115.85 84.80 9,823
8 Bank of Ceylon, Srilanka USD 3,557.49 84.80 301,679
Total 805,646.04 70,746,334.26
Amount in Taka
2020 2019 2020 2019
14.00 Share Capital 45,300,000,000 45,300,000,000 45,300,000,000 45,300,000,000
14.01 Authorized Capital

600,000,000 ordinary shares of Taka 60,000,000,000 60,000,000,000 60,000,000,000 60,000,000,000
100 each
14.02 Issued, subscribed and fully paid up
Capital
453,000,000 ordinary shares of Taka 45,300,000,000 45,300,000,000 45,300,000,000 45,300,000,000
100 each
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.
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 2020 was Taka 63,360,170,000.00 as against core capital of Taka 48,674,181,857.62
and supplementary capital of Taka 14,826,682,823.75 i.e. a total capital of Taka 63,500,864,681.37 has been
maintained, thereby showing a surplus of capital/equity of Taka 140,694,681.37 at the year end:
Total risk weighted assets including off- 634,709,200,000 527,065,900,000 633,601,700,000 526,242,300,000
balance sheet items
Required capital @ 10% of risk weighted 63,470,920,000 52,706,590,000 63,360,170,000 52,624,230,000
assets
Capital held:
Tire 1 Capital 14.03.02 48,661,874,097 45,428,663,907 48,674,181,858 45,522,755,114
Tier 2 Capital 14.03.03 14,826,682,824 7,573,651,914 14,826,682,824 7,573,651,914
Total Eligible Regulatory Capital (Tier 1 63,488,556,921 53,002,315,821 63,500,864,681 53,096,407,028
and 2)
Total capital surplus 17,636,921 295,725,821 140,694,681 472,177,028
CRAR/ CAR Based on Basel-III/ (II) 10.00% 10.06% 10.02% 10.09%
Framework
292
14.03.01 Capital requirement Required Held Held Held Held

Tier - I (Minimum CET-1 @ 5.5% 7.67% 8.62% 7.68% 8.65%
4.5%)
Tier - II ( Maximum up to 4.5% 2.34% 1.44% 2.34% 1.44%
4% of the total RWA or
88.89% of CET-1 whichever
is higher applicable from 01
January 2015)
Total 10.0% 10.00% 10.06% 10.02% 10.09%
Amount in Taka
2020 2019 2020 2019
14.03.02 Tier 1 Capital
A. Common Equity Tier 1 (CET1) Capital (Going-Concern Capital)
Paid up capital 45,300,000,000 45,300,000,000 45,300,000,000 45,300,000,000
Statutory reserve 15.00 13,469,002,429 12,400,572,516 13,469,002,429 12,400,572,516
Other reserve 165,713,816 119,378,090 165,713,816 119,378,090
Retained earnings (9,655,238,388) (11,842,586,699) (9,647,575,963) (11,748,495,492)
Share money deposit - - - -
Sub-total 49,279,477,857 45,977,363,907 49,287,140,282 46,071,455,114
Less : Intangible Assets (Sofware) 617,603,760 548,700,000 612,958,425 548,700,000
Less : Deferred Tax Assets 14.03.2a - - - -
Total 48,661,874,097 45,428,663,907 48,674,181,858 45,522,755,114
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
- - - -
AT-1 Capital
(Shortfall Provision against NPLs) - - - -
Total Tier 1 Capital (A+B) 48,661,874,097 45,428,663,907 48,674,181,858 45,522,755,114
14.03.03 Tier 2 Capital
Tier 2 Capital (Gone-concern Capital)
General provision maintained against
unclassified loans and off-balance 14,826,682,824 7,573,651,914 14,826,682,824 7,573,651,914
sheet exposures
Assets revaluation reserve - 13,008,400,000 - 13,008,400,000
Revaluation Reserve for HTM
- - - -
securities
Revaluation Reserve for Equity - - - -
14,826,682,824 20,582,051,914 14,826,682,824 20,582,051,914
Less: 100% Revaluation Reserves for
- 13,008,400,000 - 13,008,400,000
Fixed Assets, Securities
Total Tier 2 Capital 14,826,682,824 7,573,651,914 14,826,682,824 7,573,651,914
14.03.2a As per Bank request dated 14 June 2021, Bangladesh Bank allowed deferral through vide no-
DOS(CAMS)1157/01(II)-C/2021-2789 dated 29 June 2021 not to deducted deferred tax assets against Common
Equity Tier-1 (CET-1) Capital amounting taka 2,750.04 crore as well as deferral facilities of taka 3,250.41 crore
regarding total provision as on 31 December 2020 . Bank has complied that instruction accordingly.
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
14.04 Risk Weighted Assets (RWA) (Taka in Crore)
Credit Risk
i) On-Balance Sheet Exposure 47,295.43 40,043.11 47,313.26 40,024.33
ii) Off Balance Sheet Exposure 1,533.92 1,613.06 1,533.92 1,613.06
Market Risk 6,290.87 3,683.09 6,221.51 3,632.03
Operational Risk 8,350.70 7,367.33 8,291.48 7,354.81
Total Risk Weighted Assets (A+B+C) 63,470.92 52,706.59 63,360.17 52,624.23
14.05 Minimum Capital Requirement Under Basel III (Amount in Taka)
Amount in Taka
2020 2019 2020 2019
A. Eligible Capital :
1. Common Equity Tier 1 (CET1)
48,661,874,097 45,428,663,907 48,674,181,858 45,522,755,114
Capital (Going-concern capital )
2. Tier 2 Capital (Gone-concern
14,826,682,824 7,573,651,914 14,826,682,824 7,573,651,914
Capital)
3. Tier-3 (eligible for market risk only) - - - -
4. Total Eligible Capital (1+2+3) : 63,488,556,921 53,002,315,821 63,500,864,681 53,096,407,028
B. Total Risk Weighted Assets (RWA): 634,709,200,000 527,065,900,000 633,601,700,000 526,242,300,000
C. Capital Adequacy Ratio (CAR) (A4 /
10.00% 10.06% 10.02% 10.09%
B)*100
D. Core Capital to RWA (A1 / B)*100 7.67% 8.62% 7.68% 8.65%
E. Supplementary Capital to RWA (A2
2.34% 1.44% 2.34% 1.44%
/ B)*100
F. Minimum Capital Requirement (MCR) 63,470,920,000 52,706,590,000 63,360,170,000 52,624,230,000
14.06 Ratio (As per Basel III requirement)
Capital Related Ratio
CRAR 10.00% 10.06% 10.02% 10.09%
Leverage Ratio 2.80% 2.77% 2.80% 2.77%
Liquidity Related Ratio:
Liquidity Coverage Ratio 539.08% 170.72%
Net Stable Funding Ratio 100.45% 109.08%
14.06.1 Details about Ratio
a) Capital to Risk-weighted Asset Ratio
Total Eligible Capital
CRAR (Bank) =
Credit RWA+Market RWA+Operational RWA
63,500,864,681
=
633,601,700,000
= 10.02%
63,488,556,921
CRAR (Consolidated) =
634,709,200,000
= 10.00%
294
b) Leverage Ratio
Tier 1 Capital (after relate deductions)
LR =
Total Exposure (after relate deductions)
48,674,100,000
LR (Bank) =
1,739,439,072,865
= 2.80%
48,661,900,000
LR(Consolidated) =
1,740,609,578,902
= 2.80%
c) Liquidity Coverage Ratio
Stock of quality liquid assets
LCR =
Total net cash outflows over the next 30 calendar days
630,517,807,000
=
116,962,635,400
= 539.08%
d) Net Stable Funding Ratio
Available amount of stable funding (ASF)
NSFR =
Required amount of stable funding (RSF)
1,129,975,420
=
1,124,937,806
= 100.45%
14.07 Details about Shareholding as at 31 December 2020

Name of Shareholders As at 31 Dec. 2020 Amount in Taka
Government of the People's Republic of Bangladesh represented by 452,999,992 45,299,999,200
Finance Secretary, Ministry of Finance
Mr. Ziaul Hasan Siddiqui 1 100
Mr. Md. Fazlul Haque 1 100
Mr. A K M Kamrul Islam FCA, FCS 1 100
Mr. Md. Ishtiaque Ahmed Chowdhury 1 100
Mrs. Dr. Doulatunnaher Khanam 1 100
Mr.Md. Mofazzal Husain 1 100
Mr. Molla Abdul Wadud 1 100
Prof. Dr. Mohammad Kyakobad 1 100
Total 453,000,000 45,300,000,000
Annual Report 2020

YEAR OF EXCELLENCE
14.08 Name of Directors and their Shareholding

Name of the directors Status Amount in Taka
Mr. Ziaul Hasan Siddiqui Chairman & Director 100
Mr. Md. Fazlul Haque Director 100
Mr. A K M Kamrul Islam FCA, FCS Director 100
Mr. Md. Ishtiaque Ahmed Chowdhury Director 100
Mrs. Dr. Doulatunnaher Khanam Director 100
Mr.Md. Mofazzal Husain Director 100
Mr. Molla Abdul Wadud Director 100
Prof. Dr. Mohammad Kyakobad Director 100
Total 800
Amount in Taka
2020 2019 2020 2019
15.00 Statutory Reserve
Opening Balance 12,400,572,516 11,449,953,229 12,400,572,516 11,449,953,229
Add: Transferred during the year
1,068,429,913 950,619,287 1,068,429,913 950,619,287
(20% of pre-tax profit )
Total 13,469,002,429 12,400,572,516 13,469,002,429 12,400,572,516
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 16.02 103,713,816 72,378,090 103,713,816 72,378,090
Reserve for Unwanted Risk
15,000,000 - 15,000,000 -
arising from Vault
Total 165,713,816 119,378,090 165,713,816 119,378,090
16.01 Reserve for Unforeseen Loss
Balance at the beginning of the period 47,000,000 47,000,000 47,000,000 47,000,000
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 (18,664,274) (47,621,910) (18,664,274) (47,621,910)
Transfer to Reserve for CSR against
30,000,000 - 30,000,000 -
COVID-19
Transfer to Reserve for CSR 20,000,000 50,000,000 20,000,000 50,000,000
103,713,816 72,378,090 103,713,816 72,378,090
17.00 Revaluation Reserve
Revaluation of Investment 17.01 14,832,531,640 625,247,562 14,832,531,640 625,247,562
Assets Revaluation Reserve 17.02 21,495,933,277 21,495,933,277 21,495,933,277 21,495,933,277
Total 36,328,464,917 22,121,180,839 36,328,464,917 22,121,180,839
17.01 Revaluation of investment
Revaluation Reserve for
17.01.01 775,886,973 736,054,508 775,886,973 736,054,508
Held to Maturity (HTM)
17.01.02 13,547,474,400 (162,049,450) 13,547,474,400 (162,049,450)
Held for Trading (HFT)
17.01.03 509,170,267 51,242,503 509,170,267 51,242,503
Remeasured Securities (RMS)
Balance at the end of the period 14,832,531,640 625,247,562 14,832,531,640 625,247,562
17.01.01 Revaluation Reserve for Held to Maturity (HTM)
Add: Gain on Revaluation of Gain/(Loss) 39,832,465 44,321,809 39,832,465 44,321,809
296
Amount in Taka
2020 2019 2020 2019
Balance at the end of the period 775,886,973 736,054,508 775,886,973 736,054,508
17.01.02 Revaluation Reserve for Held for Trading (HFT)
Balance at the beginning of the period (162,049,450) 4,540,175,868 (162,049,450) 4,540,175,868
Add: Gain on Revaluation of Gain/(Loss) 13,709,523,849 4,702,225,318 13,709,523,849 4,702,225,318
Balance at the end of the period 13,547,474,400 (162,049,450) 13,547,474,400 (162,049,450)
17.01.03 Revaluation Reserve for Remeasured Securities (RMS)
Balance at the beginning of the period 51,242,503 - 51,242,503 -
Add: Revaluation Gain on Remeasured
457,927,764 51,242,503 457,927,764 51,242,503
Securities (RMS)
Balance at the end of the period 509,170,267 51,242,503 509,170,267 51,242,503
17.02 Assets Revaluation Reserve
Addition during the year - - - -
Balance at the end of the period 21,495,933,277 21,495,933,277 21,495,933,277 21,495,933,277
18.00 Surplus in Profit and Loss Account/Retained Earnings
Balance at the beginning of the period (11,842,586,699) (13,585,916,086) (11,748,495,492) (13,457,923,893)
Profit during the year
Net Profit After Tax 3,320,834,677 2,744,011,931 3,234,349,442 2,710,047,688
Transfer to Statutory Reserve (1,068,429,913) (950,619,287) (1,068,429,913) (950,619,287)
Transfer to Reserve for CSR (50,000,000) (50,000,000) (50,000,000) (50,000,000)
Transfer to Reserve for Unwanted Risk
(15,000,000) - (15,000,000) -
arising from Vault
2,187,404,764 1,743,392,644 2,100,919,529 1,709,428,401
Total Retained Surplus (9,655,181,935) (11,842,523,442) (9,647,575,963) (11,748,495,492)
Currency Conversion differences (56,453) (63,257) - -
Balance at the end of the period (9,655,238,388) (11,842,586,699) (9,647,575,963) (11,748,495,492)
19.00 Contingent Liabilities & Commitments
Letters of guarantee 19.01 7,474,857,353 8,012,301,714 7,474,857,353 8,012,301,714
Irrevocable Letters of Credit 19.02 936,600,205,509 1,007,769,830,566 936,600,205,509 1,007,769,830,566
Bills for collection 19.03 5,338,003,972 6,586,137,345 5,338,003,972 6,586,137,345
949,413,066,834 1,022,368,269,625 949,413,066,834 1,022,368,269,625
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 1,383,982,054 3,119,313,285 1,383,982,054 3,119,313,285
Banks and other financial institutions 11,958,700 102,466,926 11,958,700 102,466,926
Others:
Domestic 6,073,956,206 4,786,950,603 6,073,956,206 4,786,950,603
Overseas 4,960,393 3,570,900 4,960,393 3,570,900
7,474,857,353 8,012,301,714 7,474,857,353 8,012,301,714
19.02 Irrevocable Letters of Credit
(i) Government
Domestic 918,036,894,689 990,528,540,508 918,036,894,689 990,528,540,508
Overseas - - - -
918,036,894,689 990,528,540,508 918,036,894,689 990,528,540,508
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Less: Margin - - - -
Sub Total 918,036,894,689 990,528,540,508 918,036,894,689 990,528,540,508
(ii) Bank and Other Financial Institutions
Domestic - 5,584,402 - 5,584,402
Overseas - - - -
- 5,584,402 - 5,584,402
Sub-total - 5,584,402 - 5,584,402
(iii) Others
Domestic 18,563,310,821 17,235,705,656 18,563,310,821 17,235,705,656
Overseas - - - -
18,563,310,821 17,235,705,656 18,563,310,821 17,235,705,656
Sub Total 18,563,310,821 17,235,705,656 18,563,310,821 17,235,705,656
Total of (i+ii+iii) 936,600,205,509 1,007,769,830,566 936,600,205,509 1,007,769,830,566
19.03 Bills for collection
Payable in Bangladesh
19.03.01 2,180,377,667 2,747,774,155 2,180,377,667 2,747,774,155
(Inland Bills)
Payable Outside
19.03.02 3,157,626,305 3,838,363,190 3,157,626,305 3,838,363,190
Bangladesh (Foreign Billes)
5,338,003,972 6,586,137,345 5,338,003,972 6,586,137,345
19.03.01 Payable of Inland Bills (Divisional office-wise)
Dhaka Division-1 1,770,168,941 1,361,048,060 1,770,168,941 1,361,048,060
Dhaka Division-2 253,221,721 1,085,602,332 253,221,721 1,085,602,332
Chattagram 73,790,917 109,338,623 73,790,917 109,338,623
Khulna 54,719,135 69,220,728 54,719,135 69,220,728
Cumilla - - - -
Faridpur - - - -
Rajshahi 3,977,721 3,977,721 3,977,721 3,977,721
Rangpur 24,499,232 118,586,691 24,499,232 118,586,691
Barishal - - - -
Sylhet - - - -
Mymensingh - - - -
2,180,377,667 2,747,774,155 2,180,377,667 2,747,774,155
19.03.02 Payable of Foreign Bills (Divisional office-wise)
Dhaka Division-1 1,654,500,012 3,001,274,433 1,654,500,012 3,001,274,433
Dhaka Division-2 6,531,913 81,000,196 6,531,913 81,000,196
Chattagram 1,245,946,118 563,981,204 1,245,946,118 563,981,204
Khulna - - - -
Cumilla - - - -
Faridpur - - - -
Rajshahi - - - -
Rangpur - 20,195,500 - 20,195,500
Barishal - - - -
Sylhet - - - -
Mymensingh - - - -
3,157,626,305 3,838,363,190 3,157,626,305 3,838,363,190
298
Amount in Taka
2020 2019 2020 2019
20.00 Income Statement
Income
Interest, discount and
20.01 72,066,390,142 64,187,715,776 71,956,038,630 64,099,114,208
similar income
Commission,Exchange and
20.02 12,488,534,651 11,785,474,559 12,273,491,482 11,623,395,915
brokerage
Other operating income 25.00 550,852,048 1,087,855,608 550,347,411 1,087,701,782
85,105,776,841 77,061,045,942 84,779,877,523 76,810,211,905
Expenses
Interest, fee and commission 41,917,359,748 40,084,176,039 41,906,606,914 40,082,801,427
Administrative expenses 20.03 15,939,466,251 15,600,068,174 15,784,321,450 15,413,114,217
Other operating expenses 4,821,292,878 3,634,996,816 4,768,310,483 3,633,399,132
Depreciation on banking
795,406,035 582,371,872 793,706,908 580,469,556
assets
63,473,524,913 59,901,612,900 63,252,945,755 59,709,784,332
20.01 Interest, discount and similar income
Interest income 31,714,933,522 36,024,281,699 31,666,103,021 35,955,020,502
Interest income on treasury bills,
40,351,456,620 28,163,434,077 40,289,935,609 28,144,093,706
reverse repo, bonds
Interest on debenture - - - -
72,066,390,142 64,187,715,776 71,956,038,630 64,099,114,208
20.02 Commission,Exchange and brokerage
Exchange 678,868,104 61,192,741 678,868,104 61,192,741
Commission 11,809,666,547 11,724,281,818 11,594,623,378 11,562,203,174
12,488,534,651 11,785,474,559 12,273,491,482 11,623,395,915
20.03 Administrative Expenses
Salaries and allowances 14,508,321,704 14,055,971,485 14,424,170,475 13,879,889,656
Rent, Taxes, Insurance,
1,158,059,570 1,231,231,610 1,110,083,183 1,225,296,579
Electricity etc.
Legal expenses 36,768,592 41,762,074 34,104,542 41,639,440
Postage, Stamps,
46,261,924 50,996,941 41,150,365 50,890,955
Telecommunication etc.
Stationery, Printing,
164,967,821 199,160,939 159,106,918 198,967,794
Advertisement etc.
Managing Directors' salary
14,164,947 9,276,394 7,806,871 7,682,635
and fees
Directors' fees 4,369,200 5,708,193 3,617,900 4,879,700
Auditors' fees 6,552,495 5,960,538 4,281,195 3,867,458
15,939,466,251 15,600,068,174 15,784,321,450 15,413,114,217
21.00 Interest Income
On Loan and Advances 21.01 25,410,884,179 24,756,758,671 25,368,861,313 24,694,429,533
Interest on balance with
other banks and financial 21.02 4,792,938,993 7,116,634,303 4,788,533,085 7,111,251,645
institutions
On Interest received from
21.03 58,626,008 50,933,833 58,626,008 50,933,833
foreign banks
Others Interest income 21.04 2,888,797,917 4,379,815,431 2,886,396,190 4,378,266,030
Interest Income from Overseas
27,744,473 26,104,680 27,744,473 26,104,680
Branches
33,178,991,571 36,330,246,918 33,130,161,069 36,260,985,721
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Less: Interest Income transferred to
1,464,058,048 305,965,219 1,464,058,048 305,965,219
Interest Suspense A/C
Total 31,714,933,522 36,024,281,699 31,666,103,021 35,955,020,502
21.01 Loan and Advances:
Loans
On Demand 8,103 65,373 8,103 65,373
On Small Loan 1,238,157 3,373,735 1,238,157 3,373,735
On House Building Loan (General) 494,030,041 347,250,396 494,030,041 347,250,396
On House Building Loan (Staff) 1,972,517,880 2,210,433,824 1,972,517,880 2,210,433,824
On Other Staff Loan 113,110,305 132,348,097 113,110,305 132,348,097
On Loan Under SB Industrial Credit
686,986,536 540,721,254 686,986,536 540,721,254
Scheme
On Loan Under SB Agro based Ind.
196,359,129 292,284,853 196,359,129 292,284,853
Credit Scheme
On House Building Loan
44,125,194 7,601,639 44,125,194 7,601,639
(Govt. Employees)
On Agricultural Loan 2,808,259,458 2,586,654,507 2,808,259,458 2,586,654,507
On Micro Credit 429,819,803 453,485,131 429,819,803 453,485,131
On Loan against Imported
16,968,913 18,126,368 16,968,913 18,126,368
Merchandise (LIM)
On Loan Against Trust Receipts (LTR) 2,577,051,468 2,570,035,932 2,577,051,468 2,570,035,932
On Force Loan against Back to Back L/C 269,450,663 301,695,395 269,450,663 301,695,395
On Bridge Finance - 253,242,383 - 253,242,383
On Small Business Loan Scheme 104,356,664 105,915,203 104,356,664 105,915,203
On Special Small Loan Program 749,345 1,604,007 749,345 1,604,007
On Foreign Education Loan - 2,434 - 2,434
On Sonali Credit 34,879,791 26,006,323 34,879,791 26,006,323
On SME Finance(WC to Ind.Serv.Trad.) 1,434,706,061 1,379,575,468 1,434,706,061 1,379,575,468
On SME Finance 64,042,418 54,003,023 64,042,418 54,003,023
On Term Loan to Freedom Fighter 1,270,186,006 1,259,554,463 1,270,186,006 1,259,554,463
On Foreign Currency Placement Account 24,512,881 2,636,214 24,512,881 2,636,214
On Portfolio loan to Investors 42,022,866 62,329,138 - -
On Personal loan 6,712,624,585 7,121,194,934 6,712,624,585 7,121,194,934
On Term Loan to Bank and NBFI 100,000,000 125,000,000 100,000,000 125,000,000
On Special F.C Term Loan to
1,191,015,017 275,686,259 1,191,015,017 275,686,259
Bangladesh Biman
On Investment (Placement of Best
500,000,000 23,287,678 500,000,000 23,287,678
Holdings Limited) A/C
On Special Loan - Interest Bearing
6,940,630 7,590,180 6,940,630 7,590,180
Advance Rent
On Rural Housing Finance - Sonali
9,216,634 4,676,360 9,216,634 4,676,360
Neer A/C
On EDF Loan Account 138,063,827 81,676,559 138,063,827 81,676,559
On Loan against Bank Gurantee A/C - 282,140 - 282,140
On W.C under StimulusPackage
for Industries & Services against 337,141,630 - 337,141,630 -
COVID-19
On Agricultural Loan against
Concessional Interest Rate against 18,719,963 - 18,719,963 -
COVID-19
On Agricultural Loan against Special
Stimulus Refinance Scheme for 8,561,228 - 8,561,228 -
COVID-19
300
Amount in Taka
2020 2019 2020 2019
On MCD Loan Under B.B
RevolvingRefinance Scheme for 34,630 - 34,630 -
COVID-19
On SME Loan Under B.B Revolving Re-
36,729,713 - 36,729,713 -
Finance Scheme for COVID-19
On Special Term Loan against
140,825 - 140,825 -
Worker's Salary of EOI for COVID-19
On Long term loan at prevailing rate
691,012 835,701 691,012 835,701
of Interest (SECI)
Sub-total 21,645,261,378 20,249,174,971 21,603,238,512 20,186,845,833
Cash Credit
On Cash Credit General-Hypo 357,269,713 530,020,189 357,269,713 530,020,189
On Cash Credit General-Pledge 195,145,553 316,941,342 195,145,553 316,941,342
On Working Capital to Industries
923,401,305 837,066,924 923,401,305 837,066,924
-Hypo
On Working Capital to Industries
63,357,511 153,602,840 63,357,511 153,602,840
-Pledge
On Working Capital to Agro based Ind.
526,008,149 547,957,453 526,008,149 547,957,453
-Hypo
On Working Capital to Agro based Ind.
44,290,522 86,654,980 44,290,522 86,654,980
-Pledge
On Packing Cash Credit 30,435,803 32,731,792 30,435,803 32,731,792
Sub-total 2,139,908,556 2,504,975,520 2,139,908,556 2,504,975,520
Overdraft
On Overdraft Loan 1,560,702,028 1,836,189,403 1,560,702,028 1,836,189,403
Sub-total 1,560,702,028 1,836,189,403 1,560,702,028 1,836,189,403
Bills Discounted & Purchased
On Payment against Document 40,007,995 119,215,060 40,007,995 119,215,060
On Loan against Inland Bills 13,506,905 31,207,772 13,506,905 31,207,772
On Foreign Bills Purchased/
11,497,317 15,995,945 11,497,317 15,995,945
Documentary-Documentary
Sub-total 65,012,217 166,418,777 65,012,217 166,418,777
Total 25,410,884,179 24,756,758,671 25,368,861,313 24,694,429,533
21.02 Interest on balance held with other banks and financial institutions
Interest on fund placement/FDR with
4,788,533,085 7,111,251,645 4,788,533,085 7,111,251,645
Other Bank
Interest on STD with Other Bank of SIL 4,405,908 5,382,658 - -
4,792,938,993 7,116,634,303 4,788,533,085 7,111,251,645
21.03 Interest received from foreign banks
On B.H.W. Foreign Bank 58,626,008 50,933,833 58,626,008 50,933,833
58,626,008 50,933,833 58,626,008 50,933,833
21.04 Others Interest income
On Advance Rent - - - -
On Interest Recovered from Interest
1,417,200,653 3,194,610,563 1,417,200,653 3,194,610,563
Suspense A/c
On Recoveries from Written Off Loans 526,392,195 326,960,260 526,392,195 326,960,260
On Interest Income from SECI 2,401,727 1,549,401 - -
On Money at Call and Short Notice 942,803,342 856,695,207 942,803,342 856,695,207
2,888,797,917 4,379,815,431 2,886,396,190 4,378,266,030
22.00 Interest paid on deposits and borrowings etc.
Interest on Deposits 22.01 40,582,658,785 39,625,916,764 40,582,658,785 39,625,916,764
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Interest on Borrowings 22.02 1,032,384,511 264,817,400 1,022,971,676 264,817,400
Interest on Foreign Banks
22.03 - 4,651,915 - 4,651,915
Account
Interest on others 22.04 84,297,944 166,848,939 83,644,491 166,297,510
Interest On SECI 686,546 823,183 - -
Interest on Deposit and borrowings of
191,275,357 - 191,275,357 -
Interest on Deposit and borrowings of
26,056,605 21,117,838 26,056,605 21,117,838
Overseas Branches
41,917,359,748 40,084,176,039 41,906,606,914 40,082,801,427
22.01 Interest paid on Deposits
Fixed deposits 15,564,277,891 15,368,525,859 15,564,277,891 15,368,525,859
Savings deposits 11,377,530,332 9,731,013,592 11,377,530,332 9,731,013,592
Special Notice Deposits 4,800,991,062 4,161,441,848 4,800,991,062 4,161,441,848
Deposit pension scheme 2,176,501 590,318 2,176,501 590,318
Special deposit & pension scheme 16,369 213,644 16,369 213,644
S.B Employees Provident fund 1,623,405,417 1,807,747,115 1,623,405,417 1,807,747,115
Foreign currency deposits - 276,760 - 276,760
Sonali Deposit Scheme 744,329,560 864,618,626 744,329,560 864,618,626
Education Deposit scheme 220,903,054 256,227,649 220,903,054 256,227,649
Medicare Deposit Scheme 1,168,943,506 1,296,127,776 1,168,943,506 1,296,127,776
Rural Deposit Scheme 51,266,854 65,200,905 51,266,854 65,200,905
Monthly Earning Scheme 61,336,466 191,965,580 61,336,466 191,965,580
School Banking Scheme 29,833,640 27,474,203 29,833,640 27,474,203
Double Benefit Scheme 1,948,096,941 3,104,185,690 1,948,096,941 3,104,185,690
Daily Profit Scheme 15,726,001 9,748,847 15,726,001 9,748,847
Shadheen Sanchay Scheme 9,809,861 2,104,555 9,809,861 2,104,555
Triple Benefit Scheme 271,627,393 242,546,407 271,627,393 242,546,407
Millionaire Deposit Scheme 2,282,220,238 2,025,263,184 2,282,220,238 2,025,263,184
Retirement Saving Scheme 2,421,105 3,241,495 2,421,105 3,241,495
SB Retirement Saving Scheme 167,624,782 184,791,007 167,624,782 184,791,007
Non Resident Deposit Scheme 210,217 148,596 210,217 148,596
Marriage Saving Scheme 239,911,596 282,463,107 239,911,596 282,463,107
40,582,658,785 39,625,916,764 40,582,658,785 39,625,916,764
22.02 Interest paid on Borrowings
On Bangladesh Bank Demand Loan 43,601,296 16,936,353 43,601,296 16,936,353
On Special F.C Repayable to
843,619,376 213,857,681 843,619,376 213,857,681
Bangladesh Bank
On Long Term & Short Term Loan of SIL 9,412,835 -
On Repo 135,751,004 34,023,366 135,751,004 34,023,366
1,032,384,511 264,817,400 1,022,971,676 264,817,400
22.03 Interest paid on Foreign Banks Account
Foreign Banks Account - 4,651,915 - 4,651,915
- 4,651,915 - 4,651,915
22.04 Interest paid on others
On Money at Call and Short Notice 347,222 15,192,569 347,222 15,192,569
On Subsidary Company Provident
653,453 551,429 - -
Fund
302
Amount in Taka
2020 2019 2020 2019
Interest Expenses on Lease Liability
42,566,659 - 42,566,659 -
against IFRS-16
Other Interest 40,730,611 151,104,941 40,730,611 151,104,941
84,297,944 166,848,939 83,644,491 166,297,510
23.00 Investments Income
Interest on Treasury Bill 3,810,723,253 1,838,060,700 3,810,723,253 1,838,060,700
Interest on Special Treasury Bond 30,846,467,384 25,383,056,337 30,846,467,384 25,383,056,337
Interest on Reverse Repo 13,879,843 9,199,132 13,879,843 9,199,132
Gain/(Loss) on disposal of securities 5,037,695,272 - 5,037,695,272 -
Dividend Income & Others 332,795,411 917,840,665 271,274,400 898,500,294
Investment Income from Islamic
293,506,462 - 293,506,462
Banking Window
Investment Income from Overseas
16,388,995 15,277,243 16,388,995 15,277,243
Branches
40,351,456,620 28,163,434,077 40,289,935,609 28,144,093,706
24.00 Commission, Exchange and Brokerage
Commission 24.01 11,716,760,626 11,611,185,590 11,501,717,458 11,449,106,946
Exchange 24.02 678,868,104 61,192,741 678,868,104 61,192,741
Commission & Exchange from Islamic
284,088 - 284,088
Banking Window
Commission & Exchange from
92,621,832 113,096,228 92,621,832 113,096,228
Overseas Branches
12,488,534,651 11,785,474,559 12,273,491,482 11,623,395,915
24.01 Commission
Commission A/C Cr. Balance
On Foreign Bills Purchased/Negotiated 18,116,388 20,945,153 18,116,388 20,945,153
On Inland DD, MT,TT Issued/Cancelled 89,970,288 115,871,397 89,970,288 115,871,397
On Inland DD Purchased 768,955 1,559,953 768,955 1,559,953
On Govt. Receives & Disbursement 6,276,325,119 6,048,100,894 6,276,325,119 6,048,100,894
On Inland L/C Opened 26,282,627 27,624,163 26,282,627 27,624,163
On Purchased & Sale of Shares/Securities 132,580,502 56,405,940 132,580,502 56,405,940
On Inland Bills & Cheque Collection 42,666,992 55,840,071 42,666,992 55,840,071
On Inland Bank Guarantee Issued 17,415,731 13,750,853 17,415,731 13,750,853
On Payment Order 229,278,983 269,932,530 229,278,983 269,932,530
On Sanchaypatra Sales 1,005,760,385 242,931,621 1,005,760,385 242,931,621
On Lockers Fees, Profitable
37,296,018 38,996,685 19,783,717 19,256,834
Management fees & Other fees
On Payment of Food Procurement Bills 245,703,370 305,911,963 245,703,370 305,911,963
On Army Pension 48,420,477 55,648,758 48,420,477 55,648,758
On Civil Pension 115,597,001 199,006,716 115,597,001 199,006,716
On Foreign DD,MT,TT Issued Cancelled 2,290,446 2,705,520 2,290,446 2,705,520
On Foreign DD,MT,TT Purchased/
3,985 3,174 3,985 3,174
TT.Collection
On Foreign L/C Opened 1,020,544,561 1,819,126,171 1,020,544,561 1,819,126,171
On Foreign Bills and Cheques Collection 8,085,877 3,908,355 8,085,877 3,908,355
On ForeignBank Guarantee Issued 77,309,011 31,891,690 77,309,011 31,891,690
On Wage Earners Development Bond 21,588,763 21,296,319 21,588,763 21,296,319
On NID Varification Fees A/C 1,762,522 649,941 1,762,522 649,941
On Cards 104,311,339 67,533,972 104,311,339 67,533,972
On E-Commerce Account 5,005,901 497,596 5,005,901 497,596
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
On Maintenance fees for
826,947,146 - 826,947,146 -
Different Deposit A/C
On Travel Tax 15,740 - 15,740 -
On Online Transactions 431,227,789 - 431,227,789 -
On Subsidary Company SECI 197,530,868 142,338,794 - -
On Others 733,953,843 2,068,707,361 733,953,843 2,068,707,361
Sub-total 11,716,760,626 11,611,185,590 11,501,717,458 11,449,106,946
Less: Commission A/C Dr. Balance
On Debt Recovery Agent - - - -
Sub-total - - - -
11,716,760,626 11,611,185,590 11,501,717,458 11,449,106,946
24.02 Exchange
Exchange gain
Gain on F. Currency Transaction 431,918,531 2,295,765,740 431,918,531 2,295,765,740
Gain on F. Currency Revaluation 9,034,034,246 1,912,270,831 9,034,034,246 1,912,270,831
Gain On Foreign Bill Purchase/
8,026,183 16,694,216 8,026,183 16,694,216
Negotiated
Gain on Others 281,595,864 207,054,692 281,595,864 207,054,692
Sub-total 9,755,574,824 4,431,785,479 9,755,574,824 4,431,785,479
Less: Exchange Loss
Foreign Currency Transaction 215,022,533 1,914,700,115 215,022,533 1,914,700,115
Foreign Currency Revaluation 8,579,331,364 2,111,307,132 8,579,331,364 2,111,307,132
Loss on Others 282,352,823 344,585,491 282,352,823 344,585,491
Sub-total 9,076,706,720 4,370,592,738 9,076,706,720 4,370,592,738
678,868,104 61,192,741 678,868,104 61,192,741
25.00 Other Operating Income
Profit of SB UK Ltd - 44,253,877 - 44,253,877
Profit of Sonali Intelect Ltd. 4,846,079 13,259,407 4,846,079 13,259,407
Return from Provision for Bonus 450,000,000 807,000,000 450,000,000 807,000,000
Islamic windows 102,110 95,529,025 102,110 95,529,025
Sonali Investment Limited 497,450 151,300 - -
Subsidary Company SECI 7,187 2,525 - -
Sundries 95,399,222 127,659,473 95,399,222 127,659,473
550,852,048 1,087,855,608 550,347,411 1,087,701,782
26.00 Salary & Allowances*
Salaries (Basic Pay, House Rent &
10,619,296,825 10,421,550,545 10,619,296,825 10,331,093,382
Other Allowance)
Contribution to Pension & Gratuity Fund 1,465,869,453 1,175,712,082 1,465,869,453 1,175,712,082
Bank's contribution to provident fund 179,208,072 307,732,742 179,208,072 307,732,742
Medical Allowance 724,274,869 647,352,785 724,274,869 647,352,785
Festival Bonus 1,134,924,943 1,099,670,797 1,134,924,943 1,099,670,797
Recreation Expense 139,317,209 155,448,916 139,317,209 155,448,916
Bangla Nabobarsho Allowance 111,462,099 106,364,576 111,462,099 106,364,576
Sonali Investment Limited 18,387,478 17,797,282 - -
Salaries and allowances of
49,817,004 56,514,376 49,817,004 56,514,376
Overseas Branches
14,508,321,704 14,055,971,485 14,424,170,475 13,879,889,656
27.00 Rent, Tax, Insurance, Electricity, etc.
304
Amount in Taka
2020 2019 2020 2019
Rent 458,818,141 606,660,272 458,818,141 644,137,889
Taxes 36,462,171 20,809,113 36,462,171 20,809,113
Service Charge of premises - 84,000 - -
Insurance 461,798,838 397,304,806 461,798,838 397,304,806
Power and Electricity 143,814,567 151,085,624 143,814,567 151,085,624
Sonali Investment Limited 5,749,918 5,935,032 - -
Rent, taxes, insurance, electricity etc.
9,189,467 11,959,146 9,189,467 11,959,146
of Overseas Branches
1,158,059,570 1,231,231,610 1,110,083,183 1,225,296,578
28.00 Legal expenses
Law Charges 33,645,914 38,332,662 33,645,914 41,171,969
Other Legal Expenses 417,496 347,813 417,496 347,813
Law charges of Overseas Branches 41,132 119,658 41,132 119,658
36,768,592 41,762,074 34,104,542 41,639,440
29.00 Postage, Stamps, Telecommunication
Postage 6,242,158 4,719,046 6,242,158 4,706,488
Court Fees and Stamps 5,986,780 4,994,341 5,986,780 4,973,091
Telephone 25,332,269 31,615,384 25,332,269 36,686,346
Postage, stamps, telecommunication
3,589,158 4,525,030 3,589,158 4,525,030
of Overseas Branches
46,261,924 50,996,941 41,150,365 50,890,955
30.00 Printing, Stationery, Advertisement, etc.
Stationery 119,254,294 113,313,405 119,254,294 119,038,885
Printing 13,941,157 33,710,160 13,941,157 33,710,160
Advertisement 25,104,748 45,320,392 25,104,748 45,239,521
Stationery, printing and advertisement
806,720 979,228 806,720 979,228
etc. of Overseas Branches
164,967,821 199,160,939 159,106,918 198,967,794
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 of SECI 6,358,075 1,593,759 - -
Chief executive's salary and fees of
3,006,871 2,882,635 3,006,871 2,882,635
Overseas Branches
14,164,947 9,276,394 7,806,871 7,682,635
*Basic Salary of Managing Director and CEO Tk. 3,25,000 and Allowances Tk. 75,000 per month.
32.00 Directors' Fees & Honorium*
Directors' fees & Honorium 3,617,900 4,879,700 3,617,900 4,879,700
Sonali Exchange Co. Inc 507,300 441,893 - -
Directors' fees of Overseas Branches - - - -
4,369,200 5,708,193 3,617,900 4,879,700
*Each Director is paid Tk. 8,000 per meeting per attendance as per Bangladesh Bank's BRPD Circular no.11
dated 04 October 2015.
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
33.00 Auditors' fees
Statutory Audit fee 3,450,000 3,090,625 3,450,000 3,090,625
Audit fee of Overseas Branches 831,195 776,833 831,195 776,833
6,552,495 5,960,538 4,281,195 3,867,458
34.00 Depreciation and Repairs at Bank's Assets
Depreciation:
A) Premises (Including Land & Building)
Premises 44,842,400 34,848,080 44,842,400 34,848,080
Building Construction - - - -
Sub-total 44,842,400 34,848,080 44,842,400 34,848,080
B) Dead stock
Furniture 69,638,703 64,786,211 69,374,642 64,518,905
Computer Hardware 195,759,498 207,689,366 195,428,415 207,466,761
Type Writer Machine 68,171 29,564 68,171 29,564
Library 595,902 624,824 595,902 624,824
Sub-total 413,803,679 411,701,355 412,525,963 410,384,957
C) Overseas Branches
Depreciation of Overseas Branches 2,199,185 2,076,837 2,199,185 2,076,837
Sub-total 2,199,185 2,076,837 2,199,185 2,076,837
D) Amortization of Intangible Assets
Sub-total 118,249,609 77,241,979 118,229,609 77,221,979
E) Depreciation on Right of Use
Depreciation on Right of Use against
139,544,848 - 139,544,848 -
IFRS-16
Sub-total 139,544,848 - 139,544,848 -
Total (A+B+C+D) 718,639,721 525,868,252 717,342,005 524,531,853
Repairs:
Repairs to Bank's Assets 76,173,242 55,596,640 76,173,242 55,596,640
Repairs to Bank's Assets of
191,661 341,063 191,661 341,063
Overseas Branches
Sub-total 76,766,314 56,503,620 76,364,903 55,937,703
Grand Total 795,406,035 582,371,872 793,706,908 580,469,556
34A.00 Depreciation and Repairs at Bank's Assets
Depreciation:
Premises 11,107,740 1,666,848 11,107,740 1,666,848
Building Construction - - - -
Sub-total 11,107,740 1,666,848 11,107,740 1,666,848
B) Dead stock
Furniture 69,638,703 64,786,211 69,374,642 64,518,905
Computer Hardware 195,759,498 207,689,366 195,428,415 207,466,761
Type Writer Machine 68,171 29,564 68,171 29,564
306
Amount in Taka
2020 2019 2020 2019
Library 595,902 624,824 595,902 624,824
Sub-total 413,803,679 411,701,355 412,525,963 410,384,957
C) Overseas Branches
Depreciation of Overseas Branches 2,199,185 2,076,837 2,199,185 2,076,837
Sub-total 2,199,185 2,076,837 2,199,185 2,076,837
D) Amortization of Intangible Assets
Sub-total 118,249,609 77,241,979 118,229,609 77,221,979
Total 545,360,213 492,687,020 544,062,497 491,350,622
Repairs:
Repairs to Bank's Assets 76,173,242 55,596,640 76,173,242 55,596,640
Repairs to Bank's Assets of Overseas
191,661 341,063 191,661 341,063
Branches
Sub-total 76,766,314 56,503,620 76,364,903 55,937,703
Depreciation on Right of Use against
139,544,848 - 139,544,848 -
IFRS-16
Grand Total 761,671,375 549,190,640 759,972,248 547,288,325
35.00 Other expenses
Repairs to Rented Property 25,938,277 3,108,293 25,938,277 3,108,293

Books and News Paper 25,259,662 26,096,896 25,170,004 26,005,721
Pay of Police guards. 906,027,752 894,284,702 902,820,906 892,728,795
Motor Car Running 27,672,234 32,270,799 27,672,234 32,270,799
Motor Car Maintenance 28,653,329 31,998,214 21,531,936 25,624,609
Hired Transport 29,845,884 34,152,087 29,845,884 34,152,087
Entertainment 52,988,206 53,562,826 52,516,814 52,800,875
Conveyance 3,046,340 3,195,987 3,046,340 3,195,987
Sundries 541,058,857 498,183,941 511,012,831 514,063,875
Traveling Expenses 101,927,701 165,714,182 97,996,116 165,382,596
Lunch Subsidy 661,142,862 640,785,275 660,585,582 640,160,635
Donation 20,000,000 20,000,075 20,000,000 20,000,075
Subscription 5,103,000 5,057,100 4,871,000 4,862,100
Liveries to Staff 8,265,860 10,410,855 8,265,860 10,410,855
Sports 6,999,275 8,570,253 6,999,275 8,570,253
VISA-IRF 92,137 43,082 92,137 43,082
Computer Hardware Repairs &
33,021,662 33,768,620 33,021,662 33,768,620
Maintenance
Computer Software Repairs &
384,875,370 205,855,365 384,257,588 204,802,002
Maintenance
Rent of Connectivity/CCTV/Internet Etc. 85,670,325 142,897,502 85,670,325 142,897,502
Training Expenses 27,108,828 104,809,827 27,108,828 104,809,827
Washing Allowance 1,348,362 1,467,560 1,348,362 1,467,560
Cash Transportation 69,661,295 69,790,376 65,387,250 65,356,132
Business Development 15,609,956 13,292,061 15,609,956 13,292,061
Death Relief Grant Scheme 34,225,000 49,500,000 34,225,000 49,500,000
Honorarium to staff 18,920,908 34,488,556 18,920,908 34,488,556
Generator Maintenance 57,517,932 61,179,195 57,517,932 61,179,195
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
NID Verification Charge 3,164,800 3,440,800 3,164,800 3,440,800
Loss on disposal of Securities 17,293,000 111,315,632 17,293,000 111,315,632
Loss on Disposal of Fixed Assets 4,010,680 74,462 4,010,680 74,462
Children Education Allowance 37,866,732 36,310,410 37,163,883 35,702,800
Operation & Maintenance Cost of
263,492,662 270,849,374 263,492,662 270,849,374
Executive Car Loan
Fees against Swift, Bankers Almanc
9,946,399 7,962,017 9,946,399 7,962,017
etc.
Overtime 41,407,068 46,815,092 41,407,068 46,815,092
Incentive for COVID-19 1,256,322,658 - 1,256,322,658 -
Consultant fees & Bank Charge of SIL 442,597 315,740 - -
CDBL Charge of Sonali Investment Ltd. 419,048 301,667 - -
VAT expense 869,895 831,126 - -
Other expenses of Overseas Branches 14,076,329 12,296,866 14,076,329 12,296,866
4,821,292,878 3,634,996,816 4,768,310,483 3,633,399,132
36.00 Provision for Loans and Advances
Provision for Classified Loans &
4,818,078,643 9,243,204,367 4,818,078,643 9,243,204,367
Advances
Provision for Unclassified Loans and
7,101,250,494 134,215,747 7,101,250,494 134,215,747
Advances
Total 11,919,329,137 9,377,420,114 11,919,329,137 9,377,420,114
36a In response to Bank's request #SBL/HO/CAD(Op)/Basel-III/Capital/680 dated 14 June 2021 to Bangladesh
Bank regarding maintenance of provisions for loans & advances for 2020, Bangladesh Bank vide its letter no-
DOS(CAMS)1157/01(II)-C/2021-2789 dated 29 June 2021 has given certain directives to the Bank to maintain
required provision against all unclassified and classified loans & advances including writ and Special General
Provision against COVID-19 as on 31 December 2020. As per said directives, the Bank has calculated the required
provision against unclassified and classified loans & advances including writ and Special General Provision against
COVID-19 for which Bank maintained provision amounting taka 7,016.57 crore by relishing deferral of taka 908.81
crore accordingly.
37.00 Provision for diminution in value of investment
Dealing securities
Quoted - - - -
Unquoted - - - -
Investment securities
Quoted (917,054,707) 1,087,688,842 (917,054,707) 1,087,688,842
Unquoted 32,837,900 - 32,837,900 -
Debenture (Public and Private) - - - -
(884,216,807) 1,087,688,842 (884,216,807) 1,087,688,842
38.00 Other provisions
Provision for Other Assets 2,464,908,738 563,679,915 2,464,908,738 563,679,915
Provision for Off Balance Sheet
150,279,135 (166,600,000) 150,279,135 (166,600,000)
Exposure
Provision for Unreconciled Entries of
- 4,131 - 4,131
NOSTRO A/C
Provision for Bonus/Ex-gratia 2,500,000,000 2,153,948,139 2,500,000,000 2,153,948,139
Provision for Start-Up Fund 32,700,000 - 32,700,000
Provision for Salary 1,782,000 - 1,782,000 -
Provision which no more Required
- (640,000,000) - (640,000,000)
against Other Banks and NBFIs
Provision which no more Required
- (28,810,000) - (28,810,000)
against Rebate on good Borrower
308
Amount in Taka
2020 2019 2020 2019
Provision for Incentive Bonus of Sonali
3,500,000 2,000,000 - -
Investment Limited
5,153,169,873 1,884,222,185 5,149,669,873 1,882,222,185
38a In response to Bank request dated 14 June 2021, Bangladesh Bank allowed deferral through vide no-
DOS(CAMS)1157/01(II)-C/2021-2789 dated 29 June 2021 to maintain required provision against Other
Assets(excluding unreconciled entries), Balance with Bangladesh Bank & Balance with Other Banks and NBFIs for
the year ended 31 December 2020. Accordingly the Bank has maintained provision amounting taka 646.45 crore
by relishing deferral of taka 1,593.65 crore.
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
Other Operating Income 550,852,048 1,087,855,608 550,347,411 1,087,701,782
550,852,048 1,087,855,608 550,347,411 1,087,701,782
40.00
Cash paid for Other Operating Activities
Rent (458,818,141) (606,660,272) (458,818,141) (644,137,889)

Taxes (36,462,171) (20,809,113) (36,462,171) (20,809,113)
Insurance (461,798,838) (397,304,806) (461,798,838) (397,304,806)
Power & electricity (143,814,567) (151,085,624) (143,814,567) (151,085,624)
Rent, Taxes, Insurance of Overseas Branches (9,189,467) (11,959,146) (9,189,467) (11,959,146)
Rent, Taxes, Insurance of SIL (5,749,918) (5,935,032) - -
Rent, Taxes, Insurance of SECI (42,226,468) (37,393,617) - -
Law Charges (36,768,592) (41,762,074) (34,104,542) (41,639,440)
Postage (6,242,158) (4,719,046) (6,242,158) (4,706,488)
Court Fees and Stamps (5,986,780) (4,994,341) (5,986,780) (4,973,091)
Telephone (25,332,269) (31,615,384) (25,332,269) (36,686,346)
Postage, Stamp, Telephone of
(3,589,158) (4,525,030) (3,589,158) (4,525,030)
Overseas Branches
Postage, Stamp, Telephone of SIL (106,875) (105,986) - -
Postage, Stamp, Telephone of SECI (5,004,684) (5,037,154) - -
Statutory Auditors' Fees (6,552,495) (5,960,538) (4,281,195) (3,867,458)
Fees Paid for Attending Board Meeting (4,369,200) (5,708,193) (3,617,900) (4,879,700)
Repairs to Bank's Property (76,173,242) (55,596,640) (76,173,242) (55,596,640)
Repairs to Bank's Property of Overseas
(191,661) (341,063) (191,661) (341,063)
Branches
Repairs to Bank's Property of SIL (401,411) (565,917) - -
Repairs to Rented property (25,938,277) (3,108,293) (25,938,277) (3,108,293)
Pay of Police Guards (906,027,752) (894,284,702) (902,820,906) (892,728,795)
Motor Car Running and Maintenance (56,325,563) (64,269,013) (49,204,170) (57,895,408)
Operation & Maintenance Cost of
(263,492,662) (270,849,374) (263,492,662) (270,849,374)
Executive Car Loan
Entertainment (52,988,206) (53,562,826) (52,516,814) (52,800,875)
Sundries (541,058,857) (498,183,941) (511,012,831) (514,063,875)
Traveling Expenses (101,927,701) (165,714,182) (97,996,116) (165,382,596)
Overtime (41,407,068) (46,815,092) (41,407,068) (46,815,092)
Donation (20,000,000) (20,000,075) (20,000,000) (20,000,075)
Subscription (5,103,000) (5,057,100) (4,871,000) (4,862,100)
Lunch Subsidy (661,142,862) (640,785,275) (660,585,582) (640,160,635)
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
Liveries to Staff (8,265,860) (10,410,855) (8,265,860) (10,410,855)
Sports (6,999,275) (8,570,253) (6,999,275) (8,570,253)
VISA-IRF (92,137) (43,082) (92,137) (43,082)
Computer Hardware
(33,021,662) (33,768,620) (33,021,662) (33,768,620)
Repairs & Maintenance
Computer Software Repairs &
(384,875,370) (205,855,365) (384,257,588) (204,802,002)
Maintenance
Rent of Connectivity/CCTV (85,670,325) (142,897,502) (85,670,325) (142,897,502)
Training Expenses (27,108,828) (104,809,827) (27,108,828) (104,809,827)
NID Verification Charge (3,164,800) (3,440,800) (3,164,800) (3,440,800)
Loss o Disposal of Securities (17,293,000) (111,315,632) (17,293,000) (111,315,632)
Loss o Disposal of Fixed Assets (4,010,680) (74,462) (4,010,680) (74,462)
Washing Allowance (1,348,362) (1,467,560) (1,348,362) (1,467,560)
Cash Transportation (69,661,295) (69,790,376) (65,387,250) (65,356,132)
Business Development (15,609,956) (13,292,061) (15,609,955) (13,292,061)
Convence (3,046,340) (3,195,987) (3,046,340) (3,195,987)
Death Relief Grant Scheme (34,225,000) (49,500,000) (34,225,000) (49,500,000)
Reserve for CSR
(50,000,000) (50,000,000) (50,000,000) (50,000,000)
Expenditure
Reserve for Risk against Vault (15,000,000) - (15,000,000) -
Fees against Swift, Bankers Almanic etc. (9,946,399) (7,962,017) (9,946,399) (7,962,017)
Generator Maintenance (57,517,932) (61,179,195) (57,517,932) (61,179,195)
Incentive for COVID-19 (1,256,322,658) - (1,256,322,658) -
Other Expenses of Overseas Branches (14,076,329) (12,296,866) (14,076,329) (12,296,866)
Service Charge of premises - (84,000)
VAT expense (869,895) (831,126) - -
Currency Conversion differences (56,453) (63,257) - -
Consultant Fees & Bank Charge of SIL (442,597) (315,740)
CDBL Charge of Sonali Investment Ltd. (419,048) (301,667) - -
(6,103,234,240) (4,946,175,099) (5,991,811,892) (4,935,561,802)
41.00
Increase / (Decrease) of Other Assets
Investment in SECI - - 93,955 (950,000)
Investment in SB-UK Limited (99,297,140) (144,178,804) (99,297,140) (144,178,804)
Stamps in Hand (174,197) (487,269) (174,197) (487,269)
Stationery in Hand (8,391,737) 11,128,818 (8,391,737) 11,128,818
Advance Rent (34,859,155) 38,312,887 (34,859,155) 38,312,887
Branch Adjustment (10,923,937,056) (19,027,277,802) (10,923,937,056) (19,027,277,802)
Suspense Account 5,044,421,228 (4,915,577,086) 5,044,421,228 (4,915,577,086)
Prepaid Expenses (525,127) 1,279,022 (525,127) 1,279,022
Employee pension fund investment (67,960,105) (139,282,584) (67,960,105) (139,282,584)
Employee PDCRB fund investment 3,500,000,000 5,991,830,027 3,500,000,000 5,991,830,027
Demand Draft Paid in Ex-Advice 9,646,889 4,874,096 9,646,889 4,874,096
Govt. Demand Draft Paid in Ex-Advice 20,582 634,538 20,582 634,538
Protested Bills (853,600) (170,773) (853,600) (170,773)
Adjusting Account Debit Balance 8,755,855 (33,367,364) 8,755,855 (33,367,364)
Wage Earners' Bond Encashment A/C 175,953,394 (534,671,502) 175,953,394 (534,671,502)
Settlement Account (Islamic) (80,139,344) (307,753,971) (80,139,344) (307,753,971)
Demand Drafts purchased 385,743,432 (120,304,418) 385,743,432 (120,304,418)
Pension Bill Purchased(Army) 96,594,833 173,438,239 96,594,833 173,438,239
Pension Bill Purchased(Civil) 1,037,739,800 831,137,036 1,037,739,800 831,137,036
310
Amount in Taka
2020 2019 2020 2019
Sanchaypatra Encashment Account (2,093,651,815) (466,234,721) (2,093,651,815) (466,234,721)
Wage Earners' Fund Purchased Adj. A/C. - 2,058,416,709 - 2,058,416,709
Preliminary Expenses - HR
3,667,193 (39,368,713) 3,667,193 (39,368,713)
Recruitment A/C
ATM Settlement Account Debit Balance (321,590,128) (36,225,163) (321,590,128) (36,225,163)
SECI Settlement Account Debit Balance (155,979,072) (107,285,486) (155,979,072) (107,285,486)
Clearing Settlement Account Debit Balance (13,430,813) (3,490,297) (13,430,813) (3,490,297)
355,375,508 355,375,508 (12,718,590,059)
Debit Balance (12,718,590,059)
Placement With Solicitation Account - (164,717,012) - (164,717,012)
NRT A/C Dr. Balance 11,641,283 30,500 11,641,283 30,500
Army Pension Bill Purchased A/C New (1,379,985,863) (1,500,266,416) (1,379,985,863) (1,500,266,416)
Receivable - Exchange Rate
(41) - (41) -
Fluctuation of Biman Loan
(3,301) - (3,301) -
Settlement Account Debit Balance
Non-Interest Bearing Blocked Account
(3,471,349,961) - (3,471,349,961) -
for COVID-19
Receivable from Govt. Under Savings
(3,542,199,340) - (3,542,199,340) -
Cert. Issued to Workers of BJMC
Current Assets of Overseas Branches (162,922,575) 56,043,738 (162,922,575) 56,043,738
Current Assets of Islamic Banking Window (118,113,687) - (118,113,687)
Current Assets SECI 8,979,670 (9,125,243) - -
Other receivable (105,611,320) 29,285,465 - -
Advance Deposits - 75,255 - -
Security Deposits (1,678,431) (228,628) - -
(11,944,114,142) (31,072,116,985) (11,845,710,106) (31,093,073,833)
42.00 Increase / (Decrease) of Other Liabilities
Closing other liabilities:
Provision for Classified Loans (127,504,987) (272,763,474) (127,504,987) (272,763,474)
Interest Suspense 6,425,915,340 4,111,493,392 6,424,988,111 4,111,493,392
Sonali Bank Employees' Pension fund (38,390,119) 82,701,977 (38,390,119) 82,701,977
Sonali Bank Employees' PDCRB fund (3,749,953,112) (5,573,348,331) (3,749,953,112) (5,573,348,331)
Sundry Deposits (H.O) 1,096,677,997 5,650,951,695 1,096,677,997 5,650,951,695
Provision for Bonus (2,117,048,360) (2,684,560,081) (2,118,517,428) (2,682,560,081)
Refinance fund for Milk Product and
(84,647,500) (5,240,000) (84,647,500) (5,240,000)
Artificial Inse. Scheme-RCD
Sirajganj Integrated Rural
616,123 622,665 616,123 622,665
Development Fund
Foreign Correspondent Charges (1,190,089) 66,597 (1,190,089) 66,597
Foreign Currency Fund Purchased A/C - (1,792,991,995) - (1,792,991,995)
Interest Bearing FC Repayable to
(3,781,658,794) 50,575,648,438 (3,781,658,795) 50,575,648,438
Bangladesh Bank
B.B Refinance Scheme (200 Core) for
- (192,000,000) - (192,000,000)
Jute Sector
Provision for Salary (1,731,537) - (1,731,537) -
Income Receivable in Advance (22,415) (222,981) (22,415) (222,981)
BB Refinance Scheme for SML of Tk. 10 744,750 - 744,750 -
Employes Tax Deducted at
(2,373,737) (293,183) (2,373,737) (293,183)
Source from Salary
Loan from IDA Credit No. 765 BD. 16,054,120 (16,054,120) 16,054,120 (16,054,120)
E-Challan Settlement Account Credit Balance 2,534,998 (338,462) 2,534,998 (338,462)
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
2020 2019 2020 2019
ATM Settlement Account Credit Balance 11,989,231 21,530,616 11,989,231 21,530,616
Clearing Settlement Account Credit Balance 23,441,540 (1,060) 23,441,541 (1,060)
(17,643,080,092) 36,545,050,320 (17,643,080,091) 36,545,050,320
Credit Balance
Sanchaypatra Sales Account (114,728,379) 8,458,127,529 (114,728,379) 8,458,127,529
MCD Loan Settlement Account Credit Balance 13,062 1,635,881 13,062 1,635,881
Imprest A/C-Received from B.B
(440,339,640) 442,226,499 (440,339,640) 442,226,499
against W.E.R Account
FET Settlement Account Credit Balance 1,773,854,919 61,394,387 1,773,854,920 61,394,387
Asian Clearing Union (VOSTRO) (14,168,830) (337,614,923) (14,168,831) (337,614,923)
Travel Tax Online Transaction (LO) Account 116,000 - 116,000 -
Travel Tax Central Recovery Account 140,250 - 140,250 -
E-Passport Central Recovery Account 347,300 - 347,300 -
4,477 - 4,477 -
Settlement A/C Credit Balance
Repayable to B.B against Stimulus
209,805,286 - 209,805,286 -
Fund Received for Worker's COVID-19
Interest Suspense Account for COVID-19 888,216,631 - 888,216,631 -
Repayable to B.B for Fund Received
222,947,000 - 222,947,000 -
UnderAgri. Loan against COVID-19
Other Liabilities of Overseas Branches 1,156,709,226 (70,388,282) 1,156,709,227 (70,388,282)
Other Liabilities of Islamic Banking Window 739,191,822 - 739,191,822 -
Lease Liability against IFRS-16 404,932,399 - 404,932,399 -
Expenses Payable for SIL Client Sale & Others 19,782,136 (2,262,398) - -
98,172,640 (2,449,420) - -
Company SIL
61,825,803 20,843,341 - -
Company SECI
Security Deposit of SECI (137) - - -
Portfolio Margin Deposit Control 20,804,175 (17,996,681) - -
Remittance Payable to Beneficiary 18,410,715 (39,461,778) - -
(14,923,589,791) 94,964,306,169 (15,144,981,417) 95,007,633,106
43.00 Cash and cash equivalents
Cash in hand (Including foreign currency) 7,428,996,911 7,815,153,994 7,300,875,335 7,691,434,742
Balance with Bangladesh Bank 83,801,297,347 101,072,999,337 83,801,297,347 101,072,999,337
Money at call on short notice 9,031,300,000 16,274,409,000 9,031,300,000 16,274,409,000
Balance held with other bank 52,574,309,500 87,319,087,365 52,308,808,619 87,160,519,905
Prize bonds in hand 76,298,700 67,110,400 76,298,700 67,110,400
152,912,202,458 212,548,760,096 152,518,580,002 212,266,473,384
44.00 Earnings per Share (EPS)
Net profit after tax 3,320,834,677 2,744,011,931 3,234,349,442 2,710,047,688
Number of ordinary shares
44.01 453,000,000 453,000,000 453,000,000 453,000,000
outstanding
Earnings per share (EPS) 7.33 6.06 7.14 5.98
44.01 Weighted average number of ordinary shares outstanding
453,000,000 ordinary shares

453,000,000 453,000,000 453,000,000 453,000,000
outstanding for 365 days (2020)
453,000,000 453,000,000 453,000,000 453,000,000
312
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:
Sl. Status in the Status with

Name Educational qualification
No. Bank the committee
B.Com (Honours) ,M.com
(Accounting), FCA, FCS
2 Mr. Ishtiaque Ahmed Chowdhury Director Member M.A (Political science), L.L.B
Ph.D (Economics),
3 Dr. Doulatunnaher Khanam Director Member
M.S.C(Economics)
Ph.D(The Flinders
University of South Australia)
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.
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
detected by internal auditors, external auditors & Bangladesh Bank inspection team and corrective measures
taken for the purpose of effective control.
During the year 2020 the Audit Committee has conducted 8 (eight) 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 2020 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 30 June 2020.
46.00 Related Party Disclosures
Name of the Board of Directors and the entities in which they had interest as at 31 December 2020
Name of the firms/Companies

Status in which interested as
No. of
SL. Name with the proprietor, partner, director, Position
Shares
No Bank managing agent, guarantor,
employee etc.
1 Mr. Ziaul Hasan Siddiqui Chairman Nil Nil Nil
2 Mr. Md. Fazlul Haque Director Nil Nil Nil
Director Mashnoons Limited Chairman 50%
3 Mr. A K M. Kamrul Islam FCA, FCS Islam Aftab Karmrul & Co.
Partner _
4 Mr. Ishtiaque Ahmed Chowdhury Director Nil Nil Nil
5 Dr. Doulatunnaher Khanam Director Nil Nil Nil
6 Mr. Md. Mofazzal Husain Director Nil Nil Nil
7 Mr. Molla Abdul Wadud Director Nil Nil Nil
8 Prof. Dr. Mohammad Kyakobad Director Nil Nil Nil
Annual Report 2020

YEAR OF EXCELLENCE
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
Outstanding
Name of the Related Party Related by Status with the Related Party Remarks
Balance
(Crore)
Sponsor/Share Concerned Department of the Letter of
Government (Note-19.01) 138.40
holder Government Guarantee
Sponsor/Share Concerned Department of the Letter of
Government (Note-19.02) 91,803.69
holder Government Credit
Jatio Shanchaya Bureau Sponsor/Share Concerned Department of the PSB/BSP
1,011.02
(Note-9.8) holder Government Encashment
Sponsor/Share Concerned Department of the Pension
Government (Note-9.8.) 348.63
holder Government bills(Army)
Sponsor/Share Concerned Department of the Pension bills
Government (Note: 9.8) 1,209.00
holder Government Army (New)
Sponsor/Share Concerned Department of the Pension
Government (Note: 9.8) 24.48
holder Government bills(Civil)
Bangladesh Power Sponsor/Share Concerned Department of the Non Funded
5,729.62
Development Board (PDB) holder Government Loan
Bangladesh Petroleum Sponsor/Share Concerned Department of the Non Funded
329.86
Corporation (BPC) holder Government Loan
Bangladesh Agricultural Sponsor/Share Concerned Department of the Funded & Non
1,553.13
Development Corp.(BADC) holder Government Funded Loan
Bangladesh Sugar & Food Sponsor/Share Concerned Department of the
4,367.49 Funded Loan
Ind. Corp holder Government
Bangladesh Steel & Engg. Sponsor/Share Concerned Department of the
38.01 Funded Loan
Corp. (BSEC) holder Government
Electric Generation Sponsor/Share Concerned Department of the Non Funded
560.35
Company Ltd. holder Government Loan
Directorate of Food, Food Sponsor/Share Concerned Department of the Funded & Non
1,463.60
Ministry holder Government Funded Loan
Biman Bangladesh Airlines Sponsor/Share Concerned Department of the
5,925.51 Funded Loan
Limited holder Government
Bangladesh Air Force Sponsor/Share Concerned Department of the Non Funded
84.98
(Note: 7.07) holder Government Loan
Bangladesh Navy Sponsor/Share Concerned Department of the Non Funded
361.20
Bangladesh Coast Guard Sponsor/Share Concerned Department of the Non Funded
394.80
Bangladesh Chemical
Sponsor/Share Concerned Department of the Funded & Non
Industries Croporation 2,632.84
holder Government Funded Loan
(BCIC)
Sponsor/Share Concerned Department of the Non Funded
Bangladesh Railway 3,199.75
holder Government Loan
Funded &
Bangladesh Water Sponsor/Share Concerned Department of the
566.61 Non Funded
Development Board holder Government
Loan
314
Transaction
Outstanding
Balance
(Crore)
Bangladesh Rural Sponsor/Share Concerned Department of the Non Funded
910.00
Electrification Board (BREC) holder Government Loan
B-R Powergen Limited Sponsor/Share Concerned Department of the Non Funded
164.79
Department of Gas
Transmission Company 15.00
Limited (GTCL)
Department of Fire Service Sponsor/Share Concerned Department of the Non Funded
3.57
& Civil Defense holder Government Loan
Department of Disaster Sponsor/Share Concerned Department of the Non Funded
12.06
Management & Relief holder Government Loan
Bangladesh Textile Mills Sponsor/Share Concerned Department of the
15.10 Funded Loan
Corporation (BTMC) holder Government
Bangladesh Betar 0.56
Wellbown Engineering Pvt. 0.10
National Board of Revenue Sponsor/Share Concerned Department of the Non Funded
76.09
(NBR) holder Government Loan
Bangladesh Petroleum
Exploration & Production 68.39
Co. Ltd.(BAPLX)
Eastern Refinery Limited 230.94
Trading Corporation of Sponsor/Share Concerned Department of the
308.60 Funded loan
Bangladesh(TCB) holder Government
Dhaka Wasa 15.33
Chittagong Port Authority 94.63
Bangladesh Standard
Control & Testing Institute 7.34
(BSTI)
Sponsor/Share Concerned Department of the
Dhaka University 93.33 Funded Loan
holder Government
Essential Drug Co. Ltd. 7.13
Milk Vita 22.98
Bangladesh Bank 30.19
Bangladesh
Telecommunication Co.Ltd. 23.42
(BTCL)
Bangladesh Cable Shilpa Sponsor/Share Concerned Department of the Non Funded
5.19
Limited holder Government Loan
Bangladesh Police 14.08
Annual Report 2020

YEAR OF EXCELLENCE
Transaction
Outstanding
Balance
(Crore)
Central Medical storage Sponsor/Share Concerned Department of the Non Funded
4.07
DEPO (CMSD) holder Government Loan
Sponsor/Share Concerned Department of the
Karmasangsthan Bank 200.00 Funded Loan
holder Government
Bangladesh Ordinance Sponsor/Share Concerned Department of the Non Funded
10.87
Factory holder Government Loan
Bangladesh Atomic Energy Sponsor/Share Concerned Department of the Non Funded
70,865.91
Commission holder Government Loan
All Directorates &
Department (Directorate Sponsor/Share Concerned Department of the Non Funded
1,767.42
General of Defense holder Government Loan
Purchase-DGDP)
Bangladesh Election Sponsor/Share Concerned Department of the Non Funded
291.34
Commission (BEC) holder Government Loan
Bangladesh Jute Mills Sponsor/Share Concerned Department of the
147.81 Funded Loan
Corporation (BJMC) holder Government
Department of Environment 8.92
Dhaka South City Sponsor/Share Concerned Department of the Non Funded
0.08
Corporation holder Government Loan
Bangladesh Road Transport Sponsor/Share Concerned Department of the Non Funded
95.36
Corporation (BRTC) holder Government Loan
National
Telecommunication 117.36
Monetoring Center
Latif Buwany Jute Mills Ltd. 0.42
Sher-e-Bangla Agricultural Sponsor/Share Concerned Department of the
83.74 Funded Loan
University holder Government
Mowlana Bhasani Science & Sponsor/Share Concerned Department of the
30.59 Funded Loan
Technology holder Government
Sundarban Gas Shilpa Ltd. 34.96
Sonali Exchange Co. N.Y.
The Bank Subsidiary Company 8.06 Investment
(note 9.1)
Sonali Exchange Co. N.Y.
The Bank Subsidiary Company 5.52 Loan
(note 7.3.1)
Sonali Investment Ltd.
(note 9.1)
Sonali Bank (U.K.) Ltd
(note 9.1)
Sonali Intellect Ltd (note 9.1) The Bank Associate 26.25 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 but COVID-19 pandemic may affect the financial activities of the Bank in
2020.
316
Sonali Bank Limited

Balance with Bangladesh Bank and its agent bank(s)
and Investment in Government securities
Annexure-A
1.00 Balance with Bangladesh Bank and its agent bank(s)
a) Local Currency
Amount in Taka
No. Particulars As per
As per
Bangladesh
Sonali Bank
Bank
1 Head Office 56,781,665,694 58,127,999,382
2 Local Office 10,033,753,171 8,447,085,433
3 Barishal Corporate Branch 104,870,010 104,870,010
4 Bogra Corporate Branch 1,053,823,176 1,072,115,196
5 Laldighi Corporate Branch 692,803,316 634,842,321
6 Khulna Corporate Branch 196,259,814 317,533,626
7 Rangpur Corporate Branch 240,310,825 256,544,210
8 Rajshahi Corporate Branch 416,162,214 416,162,214
9 Sylhet Corporate Branch 110,171,824 7,786,396
Total 69,629,820,044 69,384,938,787
b) Foreign Currency
1 USD 13,960,343,562 4,213,674,042.58
2 GBP 11,197,564 12,552,387.74
3 EURO 2,322,059 2,263,696.50
4 J. YEN 1,183,985 1,166,486.37
Total 13,975,047,170 4,229,656,613
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
Particulars
2020 2019
a) Held to Maturity (HTM)
Bond / Other securities
2 years BGTB 9,006,769,478 -
5 years BGTB 41,063,430,961 52,383,019,328
10 years BGTB 59,922,255,934 61,231,619,352
15years BGTB 37,301,331,318 32,150,845,818
20 years BGTB 33,164,756,893 28,764,465,819
9 to 13 years BJMC 3,926,400,000 5,354,200,000
8 to 15 years BPC 31,364,700,000 45,864,700,000
3 years SBL 332,037,000 332,037,000
7 years SBL 4,427,400,000 4,427,400,000
Public Debenture 5,147,900 5,147,900
3 years FRTB 1,000,000,000 1,000,000,000
Sub Total 221,514,229,484 231,513,435,218
Annual Report 2020

YEAR OF EXCELLENCE
b) Held For Trading (HFT)

Treasury Bill
91 days Treasury Bill 91,055,027,918 39,184,435,180
Sub Total 134,867,140,485 66,270,820,381
Bond / Other securities
2 years BGTB 36,096,398,075 22,842,554,000
5 years BGTB 44,508,771,077 10,697,342,613
10 years BGTB 7,928,722,864 7,096,302,855
15years BGTB 7,517,100,950 11,546,790,808
20 years BGTB 11,946,757,584 8,903,564,614
Reserve Repo
Reverse Repo - 4,952,546,797
Public Share-ICB 913,424,500 913,424,500
Sub Total 108,911,175,049 66,952,526,187
Total 243,778,315,534 133,223,346,568
(c) Remeasured Security Account
5 years BGTB 23,041,081,711 20,015,656,960
10 years BGTB 32,665,208,830 32,023,008,577
15years BGTB 12,855,029,204 4,127,678,345
20 years BGTB 11,010,689,643 5,796,502,452
Sub Total 79,572,009,388 61,962,846,334
(d) Bangladesh Government Investment Sukuk (Ijarah Sukuk)
BG Investment Sukuk (Ijarah Sukuk) 5,279,450,000 -
Sub Total 5,279,450,000 -
Grand Total 550,144,004,406 426,699,628,120
318
Consolidated Schedule of Fixed Assets
Annexure -B
Cost/Revaluation Depreciation/Amortization
Written down
Particulars Desposals/ Foreign Adjusted Desposals/ Foreign value as at
Adjusted Addition Total Rate of Charged Total
adjustments currency opening adjustments currency 31.12.2020
opening balance during the balance as at Dep. during the balance as at
during the translation balance as at during the translation
as at 01.01.2020 year 31.12.2020 (in %) year 31.12.2020
year gain/(loss) 01.01.2020 year gain/(loss)
Premises 31,479,061,832 444,309,584 687,600 - 31,922,683,816 2.50 411,353,627 119,027 44,842,400 - 456,077,000 31,466,606,817
Building Construction 722,759,036 31,039,069 420,808,331 - 332,989,773 - - - - - - 332,989,773
Sub total 32,201,820,867 475,348,653 421,495,931 - 32,255,673,590 411,353,627 119,027 44,842,400 - 456,077,000 31,799,596,590
B) Dead Stock
Furniture 1,196,238,508 104,380,157 8,700,468 - 1,291,918,197 10.00 702,366,568 7,030,136 69,638,703 161 764,975,296 526,942,902
Electric Installation 1,044,301,411 99,039,543 17,043,096 - 1,126,297,858 20.00 766,189,424 11,258,876 82,209,383 - 837,139,931 289,157,927
Computer Hardware 2,176,758,948 114,694,294 17,728,853 602 2,273,724,992 20.00 1,734,827,062 12,484,090 195,759,498 323 1,918,102,794 355,622,198
Type Writer Machine 5,611,014 - 909 - 5,610,105 20.00 5,369,812 103 68,171 - 5,437,880 172,225
Motor Car & Other
439,637,353 187,406,542 6,925,357 - 620,118,538 20.00 287,572,195 4,498,530 65,532,023 2,034 348,607,723 271,510,815
Vehicle
Library 12,113,766 439,842 - - 12,553,608 7.00 4,958,187 - 595,902 - 5,554,089 6,999,519
Sub total 4,874,660,999 505,960,378 50,398,683 602 5,330,223,297 3,501,283,249 35,271,735 413,803,679 2,518 3,879,817,711 1,450,405,586
Total (A+B) 37,076,481,867 981,309,032 471,894,614 602 37,585,896,887 3,912,636,876 35,390,762 458,646,079 2,518 4,335,894,711 33,250,002,176
C) Dead Stock of overseas Branches
Kolkata Branch 21,531,726 539,615 - - 22,071,341 15,416,636 - 2,024,592 - 17,441,228 4,630,114
Siliguri Branch 2,730,620 90,489 - - 2,821,109 2,098,226 - 174,593 - 2,272,819 548,289
Sub total 24,262,346 630,104 - - 24,892,450 17,514,862 - 2,199,185 - 19,714,047 5,178,403
D) Intangible Assets
Computer Software 553,333,032 64,532,996 262,269 - 617,603,760 20.00 256,305,006 176,941 118,249,609 - 374,377,675 243,226,086
Sub total 553,333,032 64,532,996 262,269 - 617,603,760 256,305,006 176,941 118,249,609 - 374,377,675 243,226,086
E) Right of Use Assets
Right of Use Assets - 533,674,324 11,766,765 - 521,907,559 - 11,766,765 139,544,848 - 127,778,082 394,129,477
Sub total - 533,674,324 11,766,765 - 521,907,559 - 11,766,765 139,544,848 - 127,778,082 394,129,477
Balance as at 31
37,654,077,245 1,580,146,455 483,923,647 602 38,750,300,655 4,186,456,744 47,334,468 718,639,720 2,518 4,857,764,515 33,892,536,141
December 2020
Balance as at 31
37,104,770,137 715,507,560 156,145,115 18,932 37,664,151,514 3,724,756,676 54,300,449 525,868,252 7,633 4,196,332,112 33,467,819,402
December 2019
Annual Report 2020

Sonali Bank Limited
320
Schedule of Fixed Assets
Annexure -C
YEAR OF EXCELLENCE
Written down
Particulars Desposals/ Adjusted Desposals/ value as at
Adjusted opening Addition Total Rate of Total
adjustments opening adjustments Charged 31.12.2020
balance as at during the balance as at Dep. balance as at
during the balance as at during the during the year
01.01.2020 year 31.12.2020 (in %) 31.12.2020
year 01.01.2020 year
Premises 31,479,061,832 444,309,584 687,600 31,922,683,816 2.50 411,353,627 119,027 44,842,400 456,077,000 31,466,606,817
Building Construction 722,759,036 31,039,069 420,808,331 332,989,774 - - - - - 332,989,774
Sub total 32,201,820,868 475,348,653 421,495,931 32,255,673,590 411,353,627 119,027 44,842,400 456,077,000 31,799,596,591
B) Dead Stock
Furniture 1,182,623,546 104,258,787 8,303,184 1,278,579,149 10.00 689,249,652 6,674,520 69,374,642 751,949,774 526,629,376
Electric Installation 1,041,586,839 99,039,543 12,312,626 1,128,313,756 20.00 763,474,891 6,528,406 82,209,383 839,155,868 289,157,888
Computer Hardware 2,156,538,026 114,491,617 17,688,566 2,253,341,077 20.00 1,715,131,872 12,443,803 195,428,415 1,898,116,484 355,224,594
Type Writer Machine 5,611,014 - 909 5,610,105 20.00 5,369,812 103 68,171 5,437,880 172,225
Motor Car & Other Vehicle 410,176,138 187,406,542 6,925,357 590,657,323 20.00 259,315,998 4,498,530 64,849,451 319,666,919 270,990,404
Library 12,113,766 439,842 - 12,553,608 7.00 4,958,186 - 595,902 5,554,088 6,999,520
Sub total 4,808,649,329 505,636,332 45,230,642 5,269,055,019 3,437,500,411 30,145,362 412,525,963 3,819,881,012 1,449,174,007
Total (A+B) 37,010,470,197 980,984,985 466,726,573 37,524,728,609 3,848,854,038 30,264,389 457,368,363 4,275,958,012 33,248,770,597
Kolkata Branch 21,531,726 539,615 - 22,071,341 15,416,636 - 2,024,592 17,441,228 4,630,114
Siliguri Branch 2,730,620 90,489 - 2,821,109 2,098,226 - 174,593 2,272,819 548,289
Sub total 24,262,346 630,104 - 24,892,450 17,514,862 - 2,199,185 19,714,047 5,178,403
Computer Software 548,687,697 64,532,996 262,269 612,958,425 20.00 251,689,670 176,941 118,229,609 369,742,339 243,216,086
Sub total 548,687,697 64,532,996 262,269 612,958,425 251,689,670 176,941 118,229,609 369,742,339 243,216,086
E) Right of Use Assets
Right of Use Assets - 533,674,324 11,766,765 521,907,559 - 11,766,765 139,544,848 127,778,083 394,129,476
Sub total - 533,674,324 11,766,765 521,907,559 - 11,766,765 139,544,848 127,778,083 394,129,476
Balance as at 31
37,583,420,240 1,579,822,409 478,755,607 38,684,487,042 - 4,118,058,570 42,208,095 717,342,005 4,793,192,480 33,891,294,563
December 2020
Balance as at 31
37,020,002,939 715,345,799 156,122,474 37,579,226,264 3,643,426,660 54,292,816 524,531,854 4,113,665,698 33,465,560,566
December 2019
Consolidated Schedule of Fixed Assets on Cost Basis
Annexure -D
Written down
Particulars Desposals/ Foreign Adjusted Desposals/ Foreign value as at
Adjusted Addition Total Rate of Charged Total
adjustments currency opening adjustments currency 31.12.2020
opening balance during the balance as at Dep. during the balance as at
during the translation balance as at during the translation
as at 01.01.2020 year 31.12.2020 in %) year 31.12.2020
year gain/(loss) 01.01.2020 year gain/(loss)
Premises 1,419,333,147 444,309,584 - - 1,863,642,731 2.50 314,201,896 - 37,895,663 - 352,097,559 1,511,545,173
Building Construction 722,759,036 31,039,069 420,808,331 - 332,989,773 - - - - - - 332,989,773
Sub total 2,142,092,183 475,348,653 420,808,331 - 2,196,632,505 314,201,896 - 37,895,663 - 352,097,559 1,844,534,946
B) Dead Stock
Furniture 1,196,238,508 104,380,157 8,700,468 - 1,291,918,197 10.00 702,366,568 7,030,136 69,638,703 161 764,975,296 526,942,902
Electric Installation 1,044,301,411 99,039,543 17,043,096 - 1,126,297,858 20.00 766,189,424 11,258,876 82,209,383 - 837,139,931 289,157,927
Computer Hardware 2,176,758,948 114,694,294 17,728,853 602 2,273,724,992 20.00 1,734,827,062 12,484,090 195,759,498 323 1,918,102,794 355,622,198
Type Writer Machine 5,611,014 - 909 - 5,610,105 20.00 5,369,812 103 68,171 - 5,437,880 172,225
Motor Car & Other
439,637,353 187,406,542 6,925,357 - 620,118,538 20.00 287,572,195 4,498,530 65,532,023 2,034 348,607,723 271,510,815
Vehicle
Library 12,113,766 439,842 - - 12,553,608 7.00 4,958,187 - 595,902 - 5,554,089 6,999,519
Sub total 4,874,660,999 505,960,378 50,398,683 602 5,330,223,297 3,501,283,249 35,271,735 413,803,679 2,518 3,879,817,711 1,450,405,586
Total (A+B) 7,016,753,182 981,309,032 471,207,014 602 7,526,855,802 3,815,485,145 35,271,735 451,699,341 2,518 4,231,915,270 3,294,940,532
Kolkata Branch 21,531,726 539,615 - - 22,071,341 15,416,636 - 2,024,592 - 17,441,228 4,630,114
Siliguri Branch 2,730,620 90,489 - - 2,821,109 2,098,226 - 174,593 - 2,272,819 548,289
Sub total 24,262,346 630,104 - - 24,892,450 17,514,862 - 2,199,185 - 19,714,047 5,178,403
Computer Software 553,333,032 64,532,996 262,269 - 617,603,760 20.00 256,305,006 176,941 118,249,609 - 374,377,674 243,226,086
Sub total 553,333,032 64,532,996 262,269 - 617,603,760 20 256,305,006 176,941 118,249,609 - 374,377,674 243,226,086
Balance as at 31
7,594,348,560 1,046,472,132 471,469,283 602 8,169,352,012 20 4,089,305,013 35,448,676 572,148,135 2,518 4,626,006,991 3,543,345,021
December 2020
Balance as at 31
7,045,041,451 715,507,560 156,145,115 18,932 7,604,422,828 3,635,665,101 54,300,449 517,808,096 7,633 4,099,180,381 3,505,242,447
December 2019
Annual Report 2020

Sonali Bank Limited
322
Schedule of Fixed Assets on Cost Basis
Annexure -E
YEAR OF EXCELLENCE
Written down
Particulars Adjusted Desposals/ Desposals/ value as at
Rate of Adjusted Charged
opening Addition during adjustments Total balance adjustments Total balance as 31.12.2020
Dep. opening balance during the
balance as at the year during the as at 31.12.2020 during the at 31.12.2020
(in %) as at 01.01.2020 year
01.01.2020 year year
Premises 1,419,333,147 444,309,584 - 1,863,642,731 2.50 314,201,896 - 37,895,663 352,097,559 1,511,545,173
Building Construction 722,759,036 31,039,069 420,808,331 332,989,774 - - - - - 332,989,774
Sub total 2,142,092,183 475,348,653 420,808,331 2,196,632,505 314,201,896 - 37,895,663 352,097,559 1,844,534,947
B) Dead Stock
Furniture 1,182,623,546 104,258,787 8,303,184 1,278,579,149 10.00 689,249,652 6,674,520 69,374,642 751,949,774 526,629,376
Electric Installation 1,041,586,839 99,039,543 12,312,626 1,128,313,756 20.00 763,474,891 6,528,406 82,209,383 839,155,868 289,157,888
Computer Hardware 2,156,538,026 114,491,617 17,688,566 2,253,341,077 20.00 1,715,131,872 12,443,803 195,428,415 1,898,116,484 355,224,594
Type Writer Machine 5,611,014 - 909 5,610,105 20.00 5,369,812 103 68,171 5,437,880 172,225
Motor Car & Other
410,176,138 187,406,542 6,925,357 590,657,323 20.00 259,315,998 4,498,530 64,849,451 319,666,919 270,990,404
Vehicle
Library 12,113,766 439,842 - 12,553,608 7.00 4,958,186 - 595,902 5,554,088 6,999,520
Sub total 4,808,649,329 505,636,332 45,230,642 5,269,055,019 3,437,500,411 30,145,362 412,525,963 3,819,881,012 1,449,174,007
Total (A+B) 6,950,741,512 980,984,985 466,038,973 7,465,687,524 3,751,702,307 30,145,362 450,421,625 4,171,978,571 3,293,708,954
Kolkata Branch 21,531,726 539,615 - 22,071,341 15,416,636 - 2,024,592 17,441,228 4,630,114
Siliguri Branch 2,730,620 90,489 - 2,821,109 2,098,226 - 174,593 2,272,819 548,289
Sub total 24,262,346 630,104 - 24,892,450 17,514,862 - 2,199,185 19,714,047 5,178,403
Computer Software 548,687,697 64,532,996 262,269 612,958,425 20.00 251,689,670 176,941 118,229,609 369,742,339 243,216,086
Sub total 548,687,697 64,532,996 262,269 612,958,425 251,689,670 176,941 118,229,609 369,742,339 243,216,086
Balance as at 31
7,523,691,555 1,046,148,085 466,301,242 8,103,538,399 4,020,906,840 30,322,303 570,850,419 4,561,434,956 3,542,103,442
December 2020
Balance as at 31
6,960,274,253 715,345,799 156,122,474 7,519,497,578 3,554,335,086 54,292,816 516,471,697 4,016,513,967 3,502,983,611
December 2019
Sonali Bank Limited

Schedule of Tax Position
Annexure-F
Tax assessment of Sonali Bank Ltd. has been completed and settled upto assessment year 2002-2003 (Income year upto
2001) resulting tax refund of Tk. 426,30,48,032 in favour of the Bank. As regards latest status of the tax assessments for the
income years 2018 and 2019 these are not yet finalised by the tax department. The Bank has submitted I.T. Returns showing
loss Tk . (517,51,26,999) & showing loss Tk. (1574,48,87,099) for the income year 2018 and 2019 i.e. assessment years 2019-
2020, & 2020 - 2021 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, 2002, 2003, 2004, 2005, 2006 ,2007, 2008 , 2009 , 2010 , 2011 , 2012, 2013,
2014 and 2015 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 Reference Application
to the Honorable High Court.
Detail of Tax assessment
Tax Provision
Income Assessment Assessment Assessed Tax Payment of Refundable/
as per Present Status Remarks
Year Year made by Liabilities Total Tax (Payable)
Accounts
Adjusted as
1992 1993-94 Nil DCT Settled Nil 97,895,171 - Demanded Tax
Adjusted as
Adjusted as
Adjusted as
Reference Application to Adjusted as
1996 1997-98 Nil DCT the High Court
Nil 359,391,548 - Demanded Tax
Reference Application to
Nil 442,119,323 424,971,176 Refundable
1999 2000-01 Nil DCT Settled Nil 600,818,273 600,818,273 Refundable

Nil 1,135,489,757 1,135,489,757 Refundable
89,85,21,314 712,587,221 (185,934,093) Payable
241,46,10,301 588,000,560 (1,826,609,741) Payable
Nil 518,028,392 27,46,73,831 Refundable
378,072,785 438,169,963 60,097,178 Refundable
170,34,73,454 538,154,625 (1,266,536,541) Payable
201,08,03,744 1,218,137,968 (75,27,63,573) Payable
2008 2009-10 Nil DCT the High Court.
216,74,91,869 889,421,612 (132,53,29,527) Payable
3,704,472,179 63,51,59,113 (254,00,43,944) Payable
4,116,848,042 1,118,523,981 (339,21,46,471) Payable
5,836,848,604 1,368,957,252 (508,32,62,792) Payable
3,306,474,128 1,459,284,890 (207,08,46,597) Payable
4,030,826,003 1,524,975,830 (2,869,107,823) Payable
2014 2015-16 199,401,664 DCT the High Court
927,786,216 2,688,870,549 176,10,84,333 Refundable
2015 2016-17 197,184,155 DCT the High Court
4,289,407,141 3,152,828,934 (1,146,115,391) Payable
2016 2017-18 416,118,748 DCT Appeal to Applat Tribunal 2,993,313,144 2,995,203,196 (140,948) Payable
2017 2018-19 438,638,021 DCT Appeal to Applat Tribunal 5,694,450,838 2,732,682,064 (2,961,768,774) Payable
2018 2019-20 451,869,948 DCT Not yet assessed - 2,462,805,972 - Not yet assessed
2019 2020-21 455,443,809 DCT Not yet assessed - 2,490,906,131 - Not yet assessed
Annual Report 2020

YEAR OF EXCELLENCE
Sonali Bank Limited

Statement of Non-Income Generating Other Assets
Annexure-G
2020 2019
Particulars
Taka Taka
DOMESTIC BRANCHES
Stamps in hand 11,404,265 11,230,068
Stationery in hand 111,585,963 103,194,226
Branch Adjustment 42,092,175,178 31,168,238,122
Settlement A/C (Islami) 612,292,176 532,152,832
SBL Employee PDCRB fund Investment 4,176,259,894 7,676,259,894
SBL Employee Pension fund Investment 1,442,642,103 1,374,681,998
Suspense A/C 165,118,697 5,209,539,925
Income Tax Deducted at source 23,832,043,223 21,437,080,878
Demand Draft Paid in Ex-Advice 54,386,228 64,033,117
Govt. Demand Draft Paid in Ex-Advice 1,570,210 1,590,792
Deferred Tax assets 27,500,378,525 29,102,203,487
Demand Drafts purchased 392,252,910 777,996,343
Protested Bills 294,663,961 293,810,361
BRDBUCCA Crop Loans Int. & Panel int. Exmpt.-2007 511,283,719 511,283,719
Branch Reconstruction A/C 50,195 50,195
Pension Bill Purchased (Army) 3,486,261,471 3,582,856,304
Pension Bill Purchased (Civil) 244,755,579 1,282,495,379
Army Pension Bill Purchases A/C New 12,090,005,145 10,710,019,282
Sanchaypatra Encashment Account 10,110,246,412 8,016,594,597
Loan Exemption Under J.S Reform Proj.94-95 5,094,543,083 5,094,543,083
NRT A/C Dr. Balance 435,775,867 447,417,149
Advance Payment of Income Tax 7,526,323,815 7,026,323,815
Adjusted Account Debit balance 865,769,318 874,525,173
Agri- Exemption A/C Affected By River Erosion 99,557,837 99,557,837
Preliminery Expenses - HR Recruitment A/C 47,188,984 50,856,176
ATM Settlement Account Debit Balance 414,248,361 92,658,233
SECI Settlement Account Debit Balance 504,810,243 348,831,171
Clearing Settlement Account Debit Balance 30,238,969 16,808,156
Govt. Transaction Settlement Account Debit Balance 12,363,214,551 12,718,590,059
Placement With Solicitation Account 164,717,013 164,717,012
Wage Earners' Bond Encashment A/C. 1,053,475,684 1,229,429,078
Receivable - Exchange Rate Fluctuation of Biman Loan 41 -
Mobile Financial Services Link Settlement Account Debit Balance 3,301 -
Non-Interest Bearing Blocked Account for COVID-19 3,471,349,961 -
Receivable from Govt. Under Savings Certificate Issued to Workers of BJMC against
3,542,199,340 -
Retirement Benefit
Islamic Banking Window 118,113,687 -
Others Assets of India operation 188,280,641 25,358,067
Total 163,049,186,549 150,044,926,526
324
Sonali Bank Limited

Investment in Shares (Quoted and Unquoted)
Annexure -H
Cost Value Per Market Price Total Market

Particulars No. of Shares Total Cost Value
Share per Share Value
1 2 3 4=(2*3) 5 6=(2*5)
Investment in Shares (Quoted)
Bank & NBFI

AB BANK 2,812,646 54.91 154,454,475 12.10 34,033,017
AL-ARAFA BANK 3,213,000 25.98 83,475,000 22.20 71,328,600
BANK ASIA 3,425,000 19.92 68,231,572 18.20 62,335,000
DHAKA BANK 2,986,769 23.37 69,813,196 11.90 35,542,551
DUTCH BANGLA BANK 700,000 55.66 38,962,140 65.00 45,500,000
EBL 16,500,000 10.49 173,025,423 36.20 597,300,000
MTB 295,000 25.26 7,451,754 24.10 7,109,500
EXIM BANK 5,000,000 19.88 99,411,400 11.80 59,000,000
FIRSTS BANK 5,324,000 14.33 76,278,396 9.00 47,916,000
ICBI BANK 5,418,100 10.00 54,181,000 4.30 23,297,830
IDLC 834,000 83.76 69,851,874 63.40 52,875,600
IFIC BANK 2,981,440 17.84 53,197,756 15.20 45,317,888
JAMUNA BANK 1,829,600 20.24 37,039,491 18.80 34,396,480
MERCANTILE BANK 6,085,800 21.37 130,062,237 12.70 77,289,660
NBL 6,472,775 23.33 151,031,427 7.00 45,309,425
NCC BANK 4,840,920 25.66 124,202,816 13.20 63,900,144
ONE BANK 7,276,500 21.75 158,255,995 10.60 77,130,900
PREMIER BANK 5,997,048 13.19 79,119,990 11.00 65,967,528
PRIME BANK 3,400,000 24.22 82,348,000 17.10 58,140,000
SHAHJALAL BANK 5,071,517 27.27 138,314,134 22.90 116,137,739
SOUTHEASTB 5,007,782 30.75 153,986,522 12.50 62,597,275
STANDBANKL 3,260,526 17.01 55,459,995 8.30 27,062,366
UCBL 5,775,000 20.67 119,349,996 14.10 81,427,500
UNITEDFIN 323,964 53.34 17,280,240 17.70 5,734,163
LANKA BANGLA 4,305,000 30.21 130,065,011 31.40 135,177,000
UTTARA BANK 3,638,340 36.58 133,089,775 24.00 87,320,160
UTTARAFIN 594,227 136.41 81,058,297 46.70 27,750,401
BRAC BANK 881,500 51.12 45,058,324 44.30 39,050,450
CITY BANK 3,307,500 38.34 126,819,000 24.80 82,026,000
ISLAMI BANK 2,000,000 28.39 56,780,322 26.80 53,600,000
SIBL 1,039,500 17.97 18,683,999 13.00 13,513,500
TRUST BANK 30,000 26.74 802,083 33.40 1,002,000
BAYLEASING 589,337 111.18 65,522,783 22.70 13,377,950
1JANATAMF 1,358,288 8.08 10,974,967 6.00 8,149,728
1STPRIMFMF 207,000 38.83 8,037,293 19.50 4,036,500
ICBSONALI1 25,000,000 10.00 250,000,000 8.00 200,000,000
DBHISTMF 782,000 15.29 11,956,780 7.00 5,474,000
Annual Report 2020

YEAR OF EXCELLENCE

1 2 3 4=(2*3) 5 6=(2*5)
EBL1STMF 1,670,461 16.22 27,098,487 6.70 11,192,089
ICB3RDNRB 800,000 10.86 8,686,830 6.10 4,880,000
ICBEPMF1St 1,000,000 14.64 14,640,791 7.20 7,200,000
IFICISTMF 1,108,186 9.98 11,055,006 6.10 6,759,935
IFILISLMFI 2,600,000 8.13 21,131,217 6.60 17,160,000
TRUSTB1MF 960,089 10.59 10,162,716 6.10 5,856,543
NLI1STMF 2,000,000 14.75 29,497,874 12.80 25,600,000
SEBL1STMF 1,000,000 13.78 13,782,845 11.80 11,800,000
AIBL1STMF 1,500,000 8.87 13,299,581 8.40 12,600,000
PRIME1ICBA 1,400,000 8.18 11,452,879 7.10 9,940,000
Sub-Total 162,602,815 3,294,441,687 2,580,115,421
Insurance
BGIC 513,476 69.70 35,789,277 42.60 21,874,078
GREENDELMF 524,500 12.34 6,472,330 7.70 4,038,650
KARNAPHULI 618,360 79.76 49,321,631 33.80 20,900,568
PEOPLESINS 99,655 93.41 9,308,773 50.70 5,052,509
Sub-Total 1,755,991 100,892,011 51,865,804
Fuel and Power
DESCO 1,668,720 104.59 174,531,425 34.80 58,071,456
JAMUNAOIL 570,000 180.96 103,145,650 165.50 94,335,000
NATOXG 1,305 100.00 130,500 100.00 130,500
PADMAOIL 410,006 232.44 95,302,996 205.10 84,092,231
TITASGAS 2,000,000 41.36 82,717,918 30.80 61,600,000
MJLBD 1,013,500 98.78 100,116,848 76.90 77,938,150
LINDEBD 40,000 1,319.52 52,780,602 1,281.10 51,244,000
UPGDCL 20,000 269.34 5,386,752 263.50 5,270,000
POWERGRID 800,000 64.16 51,326,651 41.80 33,440,000
SPCL 1,050,600 98.07 103,030,899 73.30 77,008,980
NAVANA CNG 486,558 146.49 71,275,881 37.10 18,051,302
SUMITPOWER 880,478 57.66 50,768,361 38.90 34,250,594
DOREENPWR 114,559 80.16 9,182,700 61.00 6,988,099
Sub Total 9,055,726 899,697,185 602,420,312
Manufacture & Others
AFTABAUTO 2,067,436 72.55 150,000,000 26.70 55,200,541

BATBC 38,000 1,051.45 39,954,921 1,180.80 44,870,400
ACMELAB 103,000 70.17 7,227,204 74.70 7,694,100.00
BBSCABLES 505,000 63.79 32,216,380 54.80 27,674,000.00
BERGERPBL 12,500 1,372.23 17,152,857 1,429.50 17,868,750.00
BSC 100,000 41.35 4,134,599 44.70 4,470,000.00
MLDYING 20,000 50.09 1,001,700 50.00 1,000,000.00
DBH 23,000 96.59 2,221,646 92.60 2,129,800.00
MPETROLEUM 85,000 166.18 14,125,122 198.00 16,830,000.00
SINOBANGLA 20,000 5.68 113,506 50.60 1,012,000.00
ROBI 271,253 10.00 2,712,530 29.80 8,083,339.40
326

1 2 3 4=(2*3) 5 6=(2*5)
SINGERBD 310,000 168.94 52,372,360 175.60 54,436,000.00
RENATA 3,500 1,042.50 3,648,930 1,106.90 3,874,150.00
APEXWEAV 51,200 10.00 512,000 10.00 512,000
ASHRAFTEX 364,582 10.00 3,645,820 10.00 3,645,820
AZADIPRINT 756 100.00 75,600 100.00 75,600
HEIDELBCEM 255,000 385.30 98,250,305 149.60 38,148,000
BCIL 2,960 100.00 296,000 100.00 296,000
BDCOM 1,113,000 28.35 31,549,998 24.00 26,712,000
BEXIMCO 1,912,807 74.64 142,771,914 57.00 109,029,999
DULAMIACOT 16,000 10.00 160,000 60.80 972,800
FBFIF 77,614,699 6.44 500,000,000 5.40 419,119,375
GRAMEENS2 332,692 20.13 6,697,090 16.80 5,589,226
LR GLOBAL MF-1 5,184,672 9.64 50,000,000 6.60 34,218,835
POPULAR1MF 1,495,442 6.69 10,000,000 5.40 8,075,387
ATLASBANG 479,800 135.85 65,180,830 109.40 52,490,120
BENGALWTL 900,000 35.16 31,641,026 17.00 15,300,000
OIMEX 759,375 49.32 37,448,999 24.30 18,452,813
SAIFPOWER 2,289,600 25.60 58,622,397 18.00 41,212,800
SQUARETEXT 840,000 55.50 46,620,713 29.80 25,032,000
SQUAREPHARMA 1,640,000 227.68 373,387,379 219.50 359,980,000
BSRMSTEEL 1,320,000 67.58 89,205,600 42.50 56,100,000
BXPHARMA 110,000 85.55 9,410,104 190.50 20,955,000
NILOYCEM 98 100.00 9,800 100.00 9,800
OLYMPIC 272,000 224.43 61,044,613 191.10 51,979,200
PHPMF1 422,133 7.21 3,043,093 5.60 2,363,945
RAKCERAMIC 1,815,000 62.49 113,419,350 26.10 47,371,500
ROSEHEAV 4,327 15.00 64,905 15.00 64,905
SAPORTL 425,656 102.69 43,711,638 31.00 13,195,336
ACI 526,900 305.06 160,738,367 246.00 129,617,400
ACIFORMULA 120,000 153.79 18,455,162 118.10 14,172,000
ALIF 3,160,080 10.00 31,600,800 7.30 23,068,584
AMCL(PRAN) 32,000 210.78 6,744,911 194.80 6,233,600
APOLOISPAT 2,266,000 11.56 26,194,960 6.50 14,729,000
ARGODENIM 80,000 25.35 2,027,698 19.70 1,576,000
BBS 1,991,000 27.30 54,354,300 17.50 34,842,500
BSRMLTD 1,100,000 90.94 100,034,000 60.20 66,220,000
ENVOYTEX 390,660 34.60 13,516,836 24.60 9,610,236
FARCHEM 154,000 12.69 1,954,400 9.80 1,509,200
FUWANGCER 310,000 13.38 4,148,730 11.70 3,627,000
GENNEXT 4,290,000 7.31 31,359,900 3.90 16,731,000
GHAIL 1,139,250 31.91 36,358,349 16.70 19,025,475
GP 290,500 301.96 87,719,090 347.10 100,832,550
GPHISPAT 1,212,750 33.10 40,147,799 30.60 37,110,150
IFADAUTOS 660,000 115.84 76,454,400 47.20 31,152,000
KEYACOSMET 1,100,000 8.99 9,889,000 6.00 6,600,000
LHBL 1,265,000 49.89 63,105,213 47.80 60,467,000
Annual Report 2020

YEAR OF EXCELLENCE

1 2 3 4=(2*3) 5 6=(2*5)
MICEMENT 60,000 77.12 4,627,122 46.40 2,784,000
PREMIERCEM 47,000 75.13 3,531,062 61.10 2,871,700
SALAMCRST 555,000 31.27 17,356,510 21.40 11,877,000
SHASHADNIM 1,050,000 38.40 40,321,728 21.60 22,680,000
UNIQUEHRL 500,000 56.19 28,093,810 39.60 19,800,000
WMSHIPYARD 611,340 19.81 12,109,848 11.70 7,152,678
Sub Total 126,091,968 2,974,494,924 2,240,334,613
Grand total 299,506,500 7,269,525,808 5,474,736,149
Special Purpose Fund (SBLSF) Holding Position as on 31-12-2020
Bank and NBFI
RUPALI BANK 12,500 22 275,616 29 358,750
NCC BANK 102,000 13 1,351,332 13 1,346,400
UTTARA BANK 280,000 18 5,063,212 24 6,720,000
BANK ASIA 160,000 16 2,593,280 18 2,912,000
Sub Total 554,500 9,283,440 11,337,150
Fuel and Power
PADMAOIL 125,721 166 20,870,440 205 25,785,377
JAMUNAOIL 323,000 151 48,773,785 166 53,456,500
SUMITPOWER 330,000 41 13,530,586 39 12,837,000
TITASGAS 1,600,000 34 54,404,864 31 49,280,000
LINDEBD 44,000 1,233 54,252,054 1,281 56,368,400
MJLBD 350,000 83 29,052,196 77 26,915,000
SPCL 20,000 73 1,467,042 73 1,466,000
UPGDCL 22,000 253 5,567,428 264 5,797,000
Sub Total 2,814,721 227,918,395 231,905,277
Manufacture & Others
ACI 58,000 236 13,690,326 246 14,268,000
ACIFORMULA 158,000 123 19,434,948 118 18,659,800
ACMELAB 70,000 70 4,900,700 75 5,229,000
MPETROLEUM 180,000 157 28,262,032 198 35,640,000
AMCL(PRAN) 10,000 184 1,836,100 195 1,948,000
RANFOUNDRY 11,515 122 1,405,944 123 1,420,951
RECKITTBEN 950 3,315 3,149,251 4,047 3,844,460
BATBC 38,000 919 34,922,380 1,181 44,870,400
BBSCABLES 132,000 52 6,892,123 55 7,233,600
BERGERPBL 50,000 1,320 66,000,675 1,430 71,475,000
GP 185,000 328 60,680,204 347 64,213,500
RENATA 4,500 933 4,198,588 1,107 4,981,050
SQUARETEXT 115,000 29 3,354,613 30 3,427,000
SQUAREPHARMA 200,000 169 33,804,380 220 43,900,000
SUB TOTAL 1,212,965 282,532,263 321,110,761
Grand total 4,582,186 519,734,098 564,353,188
Total Quoted 304,088,686 7,789,259,906 6,039,089,338
328

1 2 3 4=(2*3) 5 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 13,380,903 4.41 59,000,260 4.41 59,000,260
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
Padma Bank 165,000,000 10.00 1,650,000,000 10.00 1,650,000,000
Sub Total 181,061,925 1,972,510,480 1,972,510,480
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
Others
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
BHL 76,923,100 65.00 5,000,001,500 65.00 5,000,001,500.00
Paper Convert & Pack 5,000 100.00 500,000 100.00 500,000
Sub Total 408,321,556 10,373,487,400 10,373,487,400
Total Unquoted 590,417,271 12,356,335,780 12,356,335,780
Grand total 894,505,957 20,145,595,686 18,395,425,118
Required Provision
Provision Required on Quoted Share and Mutual Fund 1,750,170,568
Provision Required on Unquoted Share 32,837,900
Total Required Provision 1,783,008,468
Annual Report 2020

YEAR OF EXCELLENCE
Sonali Bank Limited

Highlights on the Overall Activities
Annexure - I
SL. 2020 2019

Particulars
No. Taka Taka
1 Authorized Capital 60,000,000,000 60,000,000,000
2 Paid-up Capital 45,300,000,000 45,300,000,000
3 Total Capital (as per Capital Adequacy) 63,500,864,681 53,096,407,028
4 Capital surplus/(deficit) 140,694,681 472,177,028
5 Capital Adequacy Ratio 10.02% 10.09%
6 Statutory Reserve 13,469,002,429 12,400,572,516
7 Total Assets 1,591,233,764,462 1,472,601,350,378
8 Total Deposits 1,258,786,264,665 1,158,787,781,297
9 Total Investment 629,691,453,808 500,386,894,525
10 Total Contingent Liabilities and Commitments 949,413,066,834 1,022,368,269,625
11 Advance Deposit Ratio 46.57% 47.55%
12 Credit Deposit Ratio 96.59% 90.73%
13 Total Import 165,662,000,000 255,965,200,000
14 Total Export 25,173,100,000 25,665,600,000
15 Operating Profit 21,526,931,768 17,100,427,574
16 Profit after tax and provision 3,234,349,442 2,710,047,688
17 Total Loans and Advances 586,232,719,704 551,026,293,258
18 Amount of Classified Loans 107,673,900,177 111,993,904,839
19 Percentage of Classified Loans and Advances 18.37% 20.32%
20 Provisions kept against Classified Loans 57,705,451,597 53,016,379,222
21 Provision surplus/(deficit) - -
22 Cost of Fund 5.23% 5.29%
23 Income from Investment 40,289,935,609 28,144,093,706
24 Interest Earning Assets 1,195,517,210,490 1,068,332,524,368
25 Non-Interest Earning Assets 395,716,553,972 404,268,826,010
26 Return on Investment (ROI) 7.13% 5.98%
27 Return on Asset (ROA) 0.21% 0.20%
28 Return on Equity (ROE) 4.21% 3.92%
29 Earnings per Share (EPS) 7.14 5.98
30 Net assets value per share (NAVPS) 189.00 150.54
31 Price Earning Ratio N/A N/A
32 Net Operating Income per Share 47.52 37.75
330
FINANCIAL STATEMENTS OF SIL
AUDITOR’S
REPORT TO THE
SHAREHOLDERS
OF SONALI
INVESTMENT
LIMITED
Opinion Responsibilities of Management and
We have audited the consolidated financial statements of Those Charged with Governance for
Sonali Bank Limited and its subsidiaries (the “Group”) as well the Consolidated and Separate Financial
as the separate financial statements of Sonali Bank Limited Statements and Internal Controls
(the “Bank”), which comprise the consolidated and separate
balance sheets as at 31 December 2020 and the consolidated Management is responsible for the preparation and fair
and separate profit and loss accounts, consolidated and presentation of the consolidated financial statements of the
separate statements of changes in equity and consolidated Group and also separate financial statements of the Bank in
and separate cash flows statement for the year then ended, accordance with IFRSs as explained in note 2, and for such
and notes to the consolidated and separate financial internal control as management determines is necessary to
statements, including a summary of significant accounting enable the preparation of consolidated and separate financial
policies and other explanatory information. statements that are free from material misstatement, whether
due to fraud or error. The Bank Company Act, 1991 and
In our opinion, the accompanying consolidated financial the Bangladesh Bank Regulations require the Management
statements of the Group and separate financial statements of to ensure effective internal audit, internal control and risk
the Bank give a true and fair view of the consolidated financial management functions of the Bank. The Management is
position of the Group and the separate financial position of also required to make a self-assessment on the effectiveness
the Bank as at 31 December 2020, and of its consolidated of anti-fraud internal controls and report to Bangladesh Bank
and separate financial performance and its consolidated and on instances of fraud and forgeries.
separate cash flows for the year then ended in accordance
with International Financial Reporting Standards (IFRSs) as In preparing the consolidated and separate financial
explained in note 2. statements, management is responsible for assessing
the Group’s and the Bank’s ability to continue as a going
Basis for Opinion concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
We conducted our audit in accordance with International
unless management either intends to liquidate the Group
Standards on Auditing (ISAs). Our responsibilities under
and the Bank or to cease operations, or has no realistic
those standards are further described in the Auditor’s
alternative but to do so.
Responsibilities for the Audit of the Consolidated and
Separate Financial Statements section of our report. We are Those charged with governance are responsible for
independent of the Group and the Bank in accordance with overseeing the Group’s and the Bank’s financial reporting
the International Ethics Standards Board for Accountants’ process.
Code of Ethics for Professional Accountants (IESBA Code),
Bangladesh Securities and Exchange Commission (BSEC) Auditor’s Responsibilities for the Audit of
and Bangladesh Bank, and we have fulfilled our other ethical the Consolidated and Separate Financial
responsibilities in accordance with the IESBA Code and the Statements
Institute of Chartered Accountants of Bangladesh (ICAB) Bye
Laws. We believe that the audit evidence we have obtained is Our objectives are to obtain reasonable assurance about
sufficient and appropriate to provide a basis for our opinion. whether the consolidated and separate financial statements
as a whole are free from material misstatement, whether
Annual Report 2020

YEAR OF EXCELLENCE
due to fraud or error, and to issue an auditor’s report that concern. If we conclude that a material
includes our opinion. Reasonable assurance is a high level uncertainty exists, we are required to draw
of assurance but is not a guarantee that an audit conducted attention in our auditor’s report to the related
in accordance with ISAs will always detect a material disclosures in the consolidated and separate
misstatement when it exists. Misstatements can arise from financial statements or, if such disclosures
fraud or error and are considered material if, individually are inadequate, to modify our opinion. Our
or in the aggregate, they could reasonably be expected to conclusions are based on the audit evidence
influence the economic decisions of users taken on the basis obtained up to the date of our auditor’s report.
of these consolidated and separate financial statements. However, future events or conditions may
cause the Group and the Bank to cease to
As part of an audit in accordance with ISAs, we exercise
continue as a going concern.
professional judgment and maintain professional skepticism
z Evaluate the overall presentation, structure
throughout the audit. We also:
and content of the consolidated and separate
z Identify and assess the risks of material financial statements, including the disclosures,
misstatement of the consolidated and separate and whether the consolidated and separate
financial statements, whether due to fraud or financial statements represent the underlying
error, design and perform audit procedures transactions and events in a manner that
responsive to those risks, and obtain audit achieves fair presentation.
evidence that is sufficient and appropriate to
We communicate with those charged with governance
provide a basis for our opinion. The risk of not
regarding, among other matters, the planned scope and
detecting a material misstatement resulting
timing of the audit and significant audit findings, including
from fraud is higher than for one resulting from
any significant deficiencies in internal control that we identify
error, as fraud may involve collusion, forgery,
during our audit.
intentional omissions, misrepresentations, or
the override of internal control. Report on other Legal and Regulatory
z Obtain an understanding of internal control
relevant to the audit in order to design Requirements
audit procedures that are appropriate in the In accordance with the Companies Act, 1994, we also report
circumstances, but not for the purpose of the following:
expressing an opinion on effectiveness of the
Group’s internal control. a) we have obtained all the information and explanations
z Evaluate the appropriateness of accounting which to the best of our knowledge and belief were
policies used and the reasonableness of necessary for the purpose of our audit and made due
accounting estimates and related disclosures verification thereof;
made by management. b) in our opinion, proper books of account as required by
z Conclude on the appropriateness of law have been kept by the Group and the Bank so far as
management’s use of the going concern basis it appeared from our examination of those books;
of accounting and, based on the audit evidence
obtained, whether a material uncertainty c) the statements of’financial position and statement of
exists related to events or conditions that profit or loss and other comprehensive income dealt
may cast significant doubt on the Group’s with by the report are in agreement with the books of
and the Bank’s ability to continue as a going accounts.
Firm’s Name : Anil Salam Idris & Co., Chartered Accountants

Firm’s Registration No. : 1/1/ICAB-2016(1)
Signature :
Engagement Partner Name : Abdus Salam, FCA

ICAB Enrolment No : 0289
DVC Number : 2105250289AS574589
Date: 25 May,2021
332

Statement of Financial position
Amount in Taka
Particulars Notes
2020 2019
Assets
Non-Current Assets
Property, Plant & Equipment 4.00 380,452 753,558
Investment in Shares 5.00 934,226,070 447,436,363
Total Non-Current Assets 934,606,523 448,189,921
Current Assets:
Portfolio Margin Loan to Investors 6.00 2,158,584,276 2,170,510,950
Advance, Deposit and Prepayments 7.00 300,000 300,000
Advance Income Tax 8.00 78,389,138 97,093,316
Other Assets 9.00 8,031,557 6,960,946
Other Receivables 10.00 115,279,086 9,667,766
Cash and Cash Equivalents 11.00 192,724,249 144,096,074
Total Current Assets 2,553,308,306 2,428,629,052
Total Assets 3,487,914,829 2,876,818,973
Equity & Liabilities
Capital and Reserves
Share Capital 12.00 2,000,000,000 2,000,000,000
Retained Earnings 13.00 (16,526,670) (84,068,710)
1,983,473,330 1,915,931,290
Non-Current Liabilities
Long Term Loan from Sonali Bank limited 14.01 176,502,933 -
Current Liabilities & Provision:
Short Term Loan from Sonali Bank limited 14.02 210,084,970 -
Portfolio Margin Deposit Control Accounts 15.00 43,814,309 23,010,134
Payable for Client Sale 13,924,732 957,496
Liabilities for Expenses 16.00 13,370,655 6,555,755
Other Liabilities 17.00 506,746,789 372,217,061
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 67,689,240 85,839,367
Total Current Liabilities & Provision 1,327,938,567 960,887,684
Total Equity and Liabilities 3,487,914,829 2,876,818,973
The annexed notes 01 to 44 form an integral part of these financial statements.
Chief Executive Officer Director Chairman
Signed in terms of our separate report of even date annexed.

Signature :

DVC Number : 2105250289AS574589

Date: 25 May,2021
Annual Report 2020

YEAR OF EXCELLENCE

Statement of Profit or Loss and Other Comprehensive Income
Amount in Taka
Particulars Notes
2020 2019
Operating Income :
Interest Income 21.00 46,428,775 67,711,796
Interest Expenses 22.00 (10,066,287) (551,429)
Net Interest Income 36,362,487 67,160,367
Capital Gain/(Loss) on Sale of Shares (Own Portfolio) 48,248,445 10,804,341
Dividend Income 23.00 13,272,566 8,536,030
Fees and Commission Income 24.00 17,512,301 19,739,851
Other Operating Income 25.A 143,600 98,550
Total Operating Income (A) 115,539,399 106,339,139
Operating Expenses :
Salaries & Allowances 26.00 18,387,478 17,797,282
Rent, Rates, Insurance, Lighting 27.00 5,749,918 5,935,032
Postage, Telephone and Stamp 28.00 106,875 105,986
Stationery, Printing & Advertisement 29.00 158,343 193,145
Directors Fees & Honorarium 30.00 244,000 386,600
Repairs & Maintenance 31.00 401,411 565,917
Other Operating Expenses 32.00 4,191,275 4,776,805
CDBL Charges 419,048 301,667
Depreciation 4.02 452,808 456,264
Total Operating Expenses (B) 30,111,157 30,518,698
Non-Operating Income ( C ) 25.B 353,850 52,750
Profit Before Provision (A-B+C) 85,782,092 75,873,191
Provision for Loans / Investments:
Other Provision 17.02 3,500,000 2,000,000
Total Provision for Loans / Investments 3,500,000 2,000,000
Profit Before Tax 82,282,092 73,873,191
Income Tax Expense
Current Tax Expenses 33.00 (15,810,664) (23,987,448)
Deferred Tax 34.00 1,070,611 1,143,095
Net Profit after Tax 67,542,040 51,028,839
Earnings per Share 35.00 0.34 0.26
The annexed notes I to 44 form an integral part of these financial
Chief Executive Officer Director Chairman

Signed in terms of our separate report of even date annexed.

Signature :

DVC Number : 2105250289AS574589

Date: 25 May,2021
334

Amount in Taka
Particulars Share Capital Retained Earnings Total Equity
Balance as on 01.01.2020 2,000,000,000 (84,068,710) 1,915,931,290
Net Profit after Tax - 67,542,040 67,542,040
Balance as at 31.12.2020 2,000,000,000 (16,526,670) 1,983,473,330

Amount in Taka
Particulars Share Capital Retained Earnings Total Equity
Balance as on 01.01.2019 2,000,000,000 (135,097,549) 1,864,902,452
Net Profit after Tax - 51,028,839 51,028,839
Balance as at 31.12. 2019 2,000,000,000 (84,068,710) 1,915,931,290
Annual Report 2020

YEAR OF EXCELLENCE

Statement of Cash Flows
Amount in Taka
Particulars Notes
2020 2019
Cash flows from operating activities
Receipts from interest income 46,428,775 67,711,796
Receipts from other income 79,530,761 39,231,521
125,959,536 106,943,317
Payments to suppliers, employees & others 16,276,359 (91,175,334)
Net cash generated by operating activities (A) 142,235,894 15,767,983
Cash flows from investing activities
(Payments)/Receipts for property, plant and equipment (79,702) -
Payments for investment in shares (486,789,707) (34,761,788)
(Increase)/Decrease in margin loan 11,926,674 66,113,860
Net cash generated by investing activities (B) (474,942,736) 31,352,072
Cash flows from financing activities
Proceeds from SBL loans 386,587,902 -
Finance cost recognized in profit and loss (5,252,887) (551,429)
Net cash used in financing activities ( C) 381,335,015 (551,429)
Net increase in cash and cash equivalents (A+B+C) 48,628,173 46,568,626
Cash and cash equivalents at the beginning of the year 144,096,074 97,527,448
Cash and cash equivalents at the end of the year 192,724,249 144,096,074
Date: Dhaka
25 May, 2021
336

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 20IO and commenced its operation from 22 April 20I0. The Company obtained registration from
Securities and Exchange Commission as a merchant bank on 28 October 20I0. 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.
1.2 Registered Office
Theregistered office of the Company is located at Borak Biz Center ( Ist & 2nd floor), 70, Dilkusha C/A, Dhaka.
1.3 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;
4. The Value Added Tax and Supplementary Duty Act 2012;
e. The Value Added Tax and Supplementary Duty Rules 2016;
f. Regulations & Circulars issued by Bangladesh Bank.
2.03 Rlsk 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.
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.
Annual Report 2020

YEAR OF EXCELLENCE
2.06 Components Of Financial Statements
The presentation of these financial statements is in accordance with the guidelines provided by IAS- I:
Presentationof Fina!1cial Statements. The Financial Statements comprises:
a. Statement of Financial Position as at 31 December 2020;
b. Statement of Profit and Loss or Other Comprehensive Income for the year ended 31 December 2020;
c. Statement of Changes in Equity for the year ended 31 December 2020;
d. Statement of Cash Flows for the year ended 31 December 2020; and
e. Notes, comprising a summary of significant accounting policies and explanatory information.
2.7 Reporting Period
The financial period of the company covers one year from 01 January 2020 to 31 December 2020 and is
followed consistently.
2.8 Authorisation For Issue
These financial statements are authorised for issue by the Board of Directors in its 76th Board of Directors
meeting heldon 18 May 2021.
2.9 Director's Responsibility On Financial Statements
The Board of Directors takes the responsibility for the preparation and presentation of these financial statements.
2.10 Comparative Information And Rearrangement Thereof
Comparative information has been disclosed for the year 2019 for all numerical information in the financial
statements and also the narrative and descriptive information where it is relevant for understanding of the
current rear'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 sigificant 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.
338
30.01.05 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 l6 "Property, Plant &
Equipment". Half 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,
Caegory Rate of Depreciation

Furniture & Fixtures 10%
Computer & Accessories 20%
Office Eauipment 20%
Motor Vehicle 20%
Air Conditioner & Generator 20%
Application 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.
3.3 Receivables
Olher 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 a:icordance 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.
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-I 984.
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.
Annual Report 2020

YEAR OF EXCELLENCE
3.08 Revenue Recognition

3.08.01 Interest Income
In terms of the provisions of IFRS-15 "Revenue from contract with customer", 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 par- IAS-24 “Related Party Disclosures”, parties are considered to be related if one of the parties has the ability
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.
340
Amount in Taka
Particulars
2020 2019
4.00 Property, Plant & Equipment
4.01 Cost:
Opening balance 25,777,863 25,777,863
Less: Disposal during the year (5,168,041) -
Add: Addition made during the year 121,370 -
Closing balance 20,731,192 25,777,863
4.02 Accumulated Depreciation:
Opening balance 25,024,305 24,568,041
Less: Adjustment for disposal (5,126,373) -
Add: Charged during the year 452,808 456,264
Closing balance 20,350,740 25,024,305
Written down value (Note 4.01-4.02) 380,452 753,558
Details of assets are shown under 'Annexure-A'
5.00 Investment In Shares
Opening balance 447,436,363 412,674,574
Add: Investment made during the year 939,473,200 164,417,593
Less: Share sold during the year (452,683,492) (129,655,804)
Closing balance 934,226,070 447,436,363
Details of investment in share are shown under, 'Annexure - B'
6.00 Portfolio Loan To Investors
Opening balance 2,170,510,950 2,236,624,810
Add: Charged applied during the year 69,395,976 173,417,979
Add: Loan disbursed during the year 342,728,613 319,701,252
Less: Loan recovered during the year (424,051,263) (559,233,091)
Closing balance 2,158,584,276 2,170,510,950
7.00 Advance, Deposit And Prepayments
Security Deposit to CDBL 200,000 200,000
Advance House Rent (Uttara Branch) 100,000 100,000
Total 300,000 300,000
8.00 Advance Income Tax
Opening balance 97,093,316 70,593,100
Add: Paid during the year 15,256,612 30,833,031
112,349,928 101,426,131
Less: Adjusted during the year (33,960,790) (4,332,815)
Closing balance 78,389,138 97,093,316
9.00 Other Assets
Opening balance 6,960,946 5,817,851
Add: Deferred Tax Assets 1,070,611 1,143,095
Closing balance 8,031,557 6,960,946
10.00 Other Receivables
Receivable from ISTCL 74,521,264 7,022,914
Receivable from Wifang Securities 13,067,982 664,638
Receivable from Shahajan Securities 12,148,373 1,947,802
Receivable from Lankabangla Securities 11,636,704 -
Receivable from City Brokerage 3,872,351 -
A/C Receivable (against Assets Sales) 32,412 32,412
Total 115,279,086 9,667,766
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
Particulars
2020 2019
11.00 Cash And Cash Equivalents
Cash in hand - -
Cash at Bank 192,724,249 144,096,074
Total 192,724,249 144,096,074
11.01 Cash At Bank
SBL, Foreign Ex. Corp. Br. (Investors STD A/C No. # 36000636) 58,132,152 30,425,811
SBL, Foreign Ex. Corp. Br. (Brokerage STD A/C No. # 36000628) 34,105,381 56,520,803
SBL, Foreign Ex. Corp. Br. (Current A/C No. # 33033589) 224,380 686,403
SBL Foreign Ex. Corp. Br., (SIL Kallyan Tahbil A/C No. # 34049584) 516,855 484,773
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000594) 87,614,875 35,567,563
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000677) 62,026 56,686
SBL Foreign Ex. Corp. Br. (STD A/C No. # 36000719) 5,412,948 11,360,507
Dhaka Bank, Islamic Banking Br., Motijheel (A/C No. # 214155434) 320 1,423
SBL, Uttara Br. (Investors STD A/C No. # 4000269) 3,196,915 4,439,979
SBL Uttara Br. (Current A/C No. # 1015192) 2,177 13,509
UCBL, Bijoynagar Br. (Investors A/C No. # 010713200000113) - 2,534
UCBL, Bijoynagar Br. (A/C No. # 010711100001245) - 6,046
SBL Mirpur Shilpa Elaka Br. (Investors STD A/C No. # 36000316) 3,433,041 4,471,217
SBL Mirpur Shilpa Elaka Br. (Current A/C No. # 33003627) 23,180 58,821
Total 192,724,249 144,096,074
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
2020 2019
Name of the share
Designation Percentage Percentage
holders Amount in No of Amount in
No of shares of total share of total share
Taka shares Taka
holdings holdings
Director and
Mr. Ziaul Hasan Siddique 1 0.0000005% 10 1 0.0000005% 10
Chairman
Mr. Md. Afzal Karim Director 1 0.0000005% 10 - - -
Mr. Md. Shamim Ahmed Director 1 0.0000005% 10 1 0.0000005% 10
CFO, Sonali Bank

Limited Represented by Shareholder 1 0.0000005% 10 1 0.0000005% 10
Mr. Suvash Chandra Das
Sonali Bank Ltd.
Represented by Mr. Md. Shareholder 199,999,996 99.9999995% 1,999,999,960 199,999,996 99.9999980% 1,999,999,960
Ataur Rahman Prodhan
Mr. Md. Zakir Hossain Director - - - 1 0.0000005% 10
Total 200,000,000 100% 2,000,000,000 200,000,000 100% 2,000,000,000
342
Amount in Taka
Particulars
2020 2019
13.00 Retained Earnings
Opening Balance (84,068,710) (135,097,549)
Add: Profit after tax during the year 67,542,040 51,028,839
Closing balance (16,526,670) (84,068,710)
14.00 Loan From Sonali Bank Limited -
Khandakalin Rin (Note 14.01) 210,084,970 -
Long term loan (Note 14.02) 176,502,933 -
Total 386,587,902 -
14.01 Khandakalin Rin 210,084,970 -
Opening balance - -
Add: Loan received during the year 210,084,970 -
Less: Loan repaid during the year - -
Closing balance 210,084,970 -
14.02 Long Tern Loan 176,502,933 -
Opening balance - -
Add: Loan received during the year 176,502,933 -
Less: Loan repaid during the year - -
Closing balance 176,502,933 -
*The loan has been provided by Sonali Bank Limited (Holding Company) for investment in own
portfolio. Khandakalin Rin was approved by Sonali Bank Limited as per Sanction Letter # 3072, dated
19 November 2019. Long Term Loan was approved by Sonali Bank Limited as per Sanction Letter
# 1267, dated 06 September 2020 as per Bangladesh Bank DOS Circular no. 01, dated 10 February
The interest amount shall be repaid quarterly each year as per agreement with Sonali Bank Limited."
* Interest rate of Khandakalin Rin is 6%
* Interest rate of Long Term Loan is 6%
15.00 Portfolio Deposit Control Accounts
Opening balance 23,010,134 41,006,815
Add: Deposit during the year 569,092,471 238,319,415
Less : Withdrawal/Fund use during the year (548,288,296) (256,316,096)
Closing balance 43,814,309 23,010,134
* Portfolio Deposit Control Accounts consists of the credit balance of investors deposit accounts.
16.00 Liabilities For Expenses
Pension fund 1,656,419 1,395,329
Contributory provident fund 5,546,899 4,419,477
Subscription - 20,000
Audit fees 73,000 73,000
Legal Expenses 50,000 100,000
CCTV/Internet/Intranet 101,088 225,000
House Rent (HO) 569,250 -
Service Charge (HO) 37,950 -
Electric bill 130,000 10,000
Telephone bill 10,000 15,000
Paper bill 10,000 15,000
Interest and Charge on Khandakalin Rin 2,977,311 -
Interest and Charge on Long Term Loan 1,836,089 -
Generator maintenance 15,150 22,950
Stamp and court Fee - 5,000
Sundries 100,000 50,000
Source Tax Payable 22,600 -
VAT Payable 133,900 -
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
Particulars
2020 2019
Provision for CDBL charge 100,000 100,000
P&T 1,000 5,000
Repairs & Maintenance (Computer Hardware) - 100,000
Total 13,370,655 6,555,755
17.00 Other Liabilities
Payable to ISTCL 105,253,635 5,161,128
SIL kallyan tahabil 443,732 427,739
Payable to Wifang Securities 9,250,044 991,813
Payable to Shahjahan Securities 10,375,204 1,577,827
Payable to Lankabangla Securities 11,008,274 -
Payable to City Brokerage 3,961,048 -
Security deposit 229,814 229,814
Interest suspense a/c 353,933,747 353,006,517
Provision for Incentive Bonus 12,291,291 10,822,223
Total 506,746,789 372,217,061
17.01 Interest Suspense Account
Opening balance 353,006,517 373,915,129
Add: Transfer to Interest Suspense Account 23,559,286 -
Less: Adjusted for Interest waiver of Affected small
(22,632,057) (20,908,612)
Investors
Closing balance 353,933,747 353,006,517
17.02 Provision for Incetnive Bonus
Opening balance 10,822,223 10,829,643
Add: Provision made during the year 3,500,000 2,000,000
Less: Paid during the year (2,030,932) (2,007,420)
Closing balance 12,291,291 10,822,223
18.00 Provision For Portfolio Margin Loan
Opening balance 389,011,538 389,011,538
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
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 85,839,367 66,184,734
101,650,030 90,172,182
Less: Adjusted during the year (33,960,790) (4,332,815)
Closing balance 67,689,240 85,839,367
21.00 Interest Income
Interest on portfolio loan to investors 42,022,866 62,329,138
Interest on Bank deposits 4,405,908 5,382,658
Total 46,428,775 67,711,796
22.00 Interest Expense
Interest on Provident Fund 653,453 551,429
Interest on Khandakalin Rin 7,616,746 -
Interest on Long Term Loan 1,796,089 -
Total 10,066,287 551,429
344
Amount in Taka
Particulars
2020 2019
23.00 Dividend Income
Dividend from Securities 12,992,566 8,536,030
Dividend from Grameen MF 280,000 -
Total 13,272,566 8,536,030
24.00 Fees And Commission Income
Portfolio management fee 3,813,824 9,333,340
Settlement fee 4,182,452 3,772,531
EEF consultancy fee - 105,000
Bond Arrangement Fee 9,500,000 6,500,000
IPO Application processing fee 16,025 28,980
Total 17,512,301 19,739,851
25.00 Other Income (25.A & 25.B) 497,450 151,300
25.A Other Income
Documentation charge 82,000 42,000
Sale of account opening form 4,100 1,550
Account closing charges 57,500 55,000
Total 143,600 98,550
25.B Other Income
Gain/(Loss) on Sale of fixed Assets-Interior Decoration &
353,850 52,750
AC
Total 353,850 52,750
26.00 Salaries & Allowances
Salaries & allowances 16,561,098 15,909,799
Festival Bonus 1,456,860 1,456,490
Honorarium (Diploma) - -
Overtime 369,520 430,993
Total 18,387,478 17,797,282
27.00 Rent, Rates, Insurance & Lighting
Office Rent (HO, Mirpur, Uttara) 4,942,120 5,554,834
Insurance 64,295 64,295
Electric Bill 539,753 231,903
Service charge of premises 203,750 84,000
Total 5,749,918 5,935,032
28.00 Postage, Telephone And Stamps
Postage 21,335 12,558
Telephone bill 35,940 72,178
Stamp 49,600 21,250
Total 106,875 105,986
29.00 Printing, Stationery & Advertisement
Printing and stationery 119,382 112,274
Advertisement and publicity 38,961 80,871
Total 158,343 193,145
30.00 Directors Fees & Honorarium
Directors fees 184,000 326,600
Honorarium (Chairman of the Board) 60,000 60,000
Total 244,000 386,600
31.00 Repair And Maintenance
Car maintenance 290,636 353,065
Generator maintenance 3,250 93,800
Office Equipment Maintenace 107,525 119,052
Total 401,411 565,917
Annual Report 2020

YEAR OF EXCELLENCE
Amount in Taka
Particulars
2020 2019
32.00 Other Operating Expenses
Traveling and conveyance 4,026 65,104
Entertainment expenses 411,108 649,332
Newspapers and periodicals 89,658 91,175
Bank charge 271,397 125,740
Lunch subsidy 557,280 624,640
Audit fees (Annual Accounts Audit) 73,000 73,000
Legal expenses 43,000 122,634
Subscriptions 232,000 195,000
Computer software & accessories (including internet &
617,782 1,053,364
Intranet bill)
VAT expenses 869,895 831,126
Tax consultant fees 171,200 190,000
Security Guard Payment 148,080 148,080
Miscellaneous expenses 702,849 607,610
Total 4,191,275 4,776,805
* 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% 4,824,845 1,080,434
Tax on other income @ 37.5% 8,336,306 21,199,808
Tax on Dividend Income @ 20% 2,598,513.20 1,707,206
Tax on Dividend Income of Grameen MF@ 20% 51,000
Provision made for current year 15,810,664 23,987,448
Total 15,810,664 23,987,448
34.00 Deferred Tax (Assets)
Opening balance 6,960,946 5,817,851
Closing balance 8,031,557 6,960,946
35.00 Earnings Per Share (Eps)
Basic earnings per share:
Net Profit after tax 67,542,040 51,028,839
Number of ordinary shares outstanding 200,000,000 200,000,000
Earnings per share 0.34 0.26
36.00 Related Party Transaction
Name of the Transaction Transaction
Relationship Types of transactions
parties During the year During the year
Long term borrowing 176,502,933 -
Sonali Bank Limited Holding Company
Khandakalin rin 210,084,970 -
37.00 Receipts From Other Income
Capital gain/ (loss) on sale of shares (own portfolio) 48,248,445 10,804,341
Dividend income 13,272,566 8,536,030
Fees and commission income 17,512,301 19,739,851
Other income 497,450 151,300
Total 79,530,761 39,231,521
38.00 Payments To Suppliers, Employees And Others
Total operating expenses (30,111,157) (30,518,698)
(Decrease)/Increase in portfolio deposit control accounts 20,804,175 (17,996,682)
(Decrease)/Increase in Payable for Client sale (Adjusting
12,967,236 (2,262,397)
Account)
346
Amount in Taka
Particulars
2020 2019
(Decrease)/Increase in other liabilities 134,529,728 (38,688,228)
(Decrease)/Increase in liabilities for expenses 2,001,500 1,306,719
Income taxes Paid during the year (15,256,612) (30,833,031)
Decrease/(Increase) in other receivables (105,611,320) 29,285,465
Increase/Decrease in other provision (3,500,000) (2,000,000)
Decrease/(Increase) in advance, deposit and prepayments - 75,255
Depreciation 452,808 456,264
Total 16,276,359 (91,175,334)
39.00 Director Fees
As per decision of the Board remuneration was paid to the Directors .
40.00 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 filed an
Income Tax Referrence Application to High Court Division on 26 October 2016 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.
The Company has submitted Income Tax Return for the year 2012 to DCT showing total income of Tk 26,343,997
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. CT (A) sent back to DCT as per Tribunal Order. But DCT did
not accepted for review and Revised their oreder as it is. The Company again appealed to the Commissioner
of Taxes (Appeal) against the DCT order. The Commissioner of Taxes(Appeal) did not accept the Appeal. The
company has again appealed to the Taxes Appellate Tribunal Division against the claim. The Commissioner of
Taxes(Tribunal) rejected the appeal case on 27 January 2020. The company has filed an Income Tax Referrence
Application to High Court Division on 26 January 2021 against the Commissioner of Taxes (Appeal) decision.
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. CT (A) sent back to DCT as per Tribunal Order. But DCT did not accepted for
review and Revised their oreder as it is. The Company again appealed to the Commissioner of Taxes (Appeal)
against the DCT order. The Commissioner of Taxes(Appeal) did not accept the Appeal. The company has again
appealed to the Taxes Appellate Tribunal Division against the claim. The Commissioner of Taxes(Tribunal) rejected
the appeal case on 28 November 2019. The company has filed an Income Tax Referrence Application to High
Court Division on 28 January 2021 against the Commissioner of Taxes (Appeal) decision.
Annual Report 2020

YEAR OF EXCELLENCE
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. The Commissioner of Taxes(Tribunal) rejected the appeal case on 30 May 2018. The company has filed an
Income Tax Referrence Application to High Court Division on 15 September 2019 against the Commissioner of
Taxes (Appeal) decision.
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 Commissioner of Taxes(Tribunal) rejected the appeal case on 28 August 2018.
The company has filed an Income Tax Referrence Application to High Court Division on 24 November 2020
against the Commissioner of Taxes (Appeal) decision.
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. DCT settled the income tax case with refundable of income tax for Tk. 57,659. But as per DCT oreder
they disallowance of 10 items. As such the company has appealed to Commissioner of Taxes (Appeal) against
the disallowances.
Return. DCT settled the income tax case with an additional income tax for Tk. 3,339,542. The company has
appealed to Commissioner of Taxes (Appeal) against the claims.
Return.
Return.
41.00 Capital Commitment
There is no capital commitment as at 31 December 2020.
42.00 Contingent Liabilities
There is no contingent liability as at 31 December 2020.
43.00 Claims Against The Company Not Acknowledged As Debt
There is no claim against the company not acknowledged
as debt at 31 December 2020.
44.00 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 years’ figure has been changed where necessary to confirm the current year’s profit.
348
Annexure -A
Cost Depreciation Written down value

Sl.
Category of Assets Opening Purchased Disposal Charged
No. Total as on Opening Adjustment for Total as on As on As on
balance as during the during the Rate during the
31.12.2020 balance Disposal Assets 31.12.2020 31.12.2020 31.12.2019
on 01.01.20 year year year
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11=(5-10) 12
1 Furniture & Fixture 2,136,586 121,370 397,284 1,860,672 10% 1,773,414 210,203 355,616 1,628,001 232,671 363,172
2 Computer & Accessories 5,532,896 - 40,287 5,492,609 20% 5,172,550 222,605 40,287 5,354,868 137,741 360,346
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

Air Conditioner &
5 6,732,124 - 2,088,356 4,643,768 20% 6,732,103 - 2,088,356 4,643,747 21 21
Generator
6 Application of Software 2,917,600 - - 2,917,600 20% 2,887,600 20,000 - 2,907,600 10,000 30,000
7 Interior Decoration 3,062,114 - 2,642,114 420,000 20% 3,062,112 - 2,642,114 419,998 2 2
Total Assets 25,777,863 121,370 5,168,041 20,731,192 25,024,305 452,808 5,126,373 20,350,740 380,452 753,558
Annual Report 2020

350
Portfolio of Investment in Shares
Annexure-B
YEAR OF EXCELLENCE
Cost of Investment Market Value of Investment

Unrealized
Sl. No. Company Name
No of Share Cost per Cost of No of Share Market Price Market Value of Gain/Loss (Tk)
Held Share (Tk) Investment (Tk) Held per Share (Tk) Investment (Tk)
A. Marginable Share :
1 ACI Formulations Ltd. 50,000 210.22 10,510,980 50,000 118.10 5,905,000 (4,605,980)
2 ACI LTD 27,982 243.17 6,804,334 27,982 246.00 6,883,621 79,288
3 Advent Pharma Limited 22,000 22.40 492,901 22,000 22.80 501,600 8,699
4 Aftab Automobiles 124,779 50.13 6,255,421 124,779 26.70 3,331,599 (2,923,822)
5 Apex Footwear Limited 11,172 237.55 2,653,862 11,172 220.30 2,461,192 (192,670)
6 Argon Denims Limited 180,796 22.67 4,099,376 180,796 19.70 3,561,688 (537,688)
7 Bank Asia 35,000 19.13 669,578 35,000 18.20 637,000 (32,578)
8 Bashundhara Paper Mills Ltd. 44,699 81.06 3,623,431 44,699 44.40 1,984,636 (1,638,795)
9 Bay Leasing & Inv.Ltd. 130,764 54.67 7,149,006 130,764 22.70 2,968,351 (4,180,655)
10 BBS Cables Ltd. 54,450 70.51 3,839,046 54,450 54.80 2,983,860 (855,186)
11 BRAC Bank Ltd. 23,650 59.38 1,404,382 23,650 44.30 1,047,695 (356,687)
12 BSRM Limited 42,326 88.70 3,754,486 42,326 60.20 2,548,025 (1,206,460)
13 BSRM Steels Ltd. 131,450 90.35 11,876,363 131,450 42.50 5,586,625 (6,289,738)
14 Confidence Cement 30,837 154.52 4,765,084 30,837 121.30 3,740,528 (1,024,556)
15 DBH Finance Corp. Limited 11,500 100.12 1,151,344 11,500 92.60 1,064,900 (86,444)
Unrealized
16 DESCO 35,000 38.46 1,345,992 35,000 34.80 1,218,000 (127,992)
17 Doreen Power Generations Ltd. 6,250 56.12 350,731 6,250 61.00 381,250 30,519
18 Eastern Lubricant 1,000 1,399.22 1,399,220 1,000 1,019.30 1,019,300 (379,920)
19 Esquire Knit Composite Limited 41,669 45.00 1,875,105 41,669 26.30 1,095,895 (779,210)
20 Genex Infosys Limited 95,603 60.94 5,825,825 95,603 55.00 5,258,138 (567,688)
21 GPH ispat ltd. 197,563 37.04 7,317,507 197,563 30.60 6,045,420 (1,272,087)
22 GrameenPhone Ltd. 23,000 489.44 11,257,097 23,000 347.10 7,983,300 (3,273,797)
23 Hamid Fabrics Ltd. 179,275 34.84 6,245,565 179,275 18.60 3,334,515 (2,911,050)
24 Heidelberg Cement 36,884 556.95 20,542,688 36,884 149.60 5,517,846 (15,024,841)
25 IDLC Finance Ltd. 45,000 77.05 3,467,291 45,000 63.40 2,853,000 (614,291)
26 IFAD Autos Limited 115,770 107.26 12,417,942 115,770 47.20 5,464,344 (6,953,598)
27 Jamuna Oil 30,090 198.39 5,969,462 30,090 165.50 4,979,895 (989,567)
LafargeHolcim Bangladesh
28 267,000 81.32 21,713,508 267,000 47.80 12,762,600 (8,950,908)
Limited
29 Linde Bangladesh Ltd. 5,300 1,459.98 7,737,888 5,300 1,281.10 6,789,830 (948,058)
30 Meghna Petroleum Ltd. 110,665 237.79 26,314,798 110,665 198.00 21,911,670 (4,403,128)
31 Mercantile Bank Ltd. 458,850.00 15.19 6,971,125 458,850 12.70 5,827,395 (1,143,730)
32 MJL BD. Ltd. 57,795 98.34 5,683,387 57,795 76.90 4,444,436 (1,238,951)
Nahee Aluminum Composite
33 53,928 57.43 3,097,010 53,928 47.10 2,540,009 (557,001)
Panel Ltd.
Annual Report 2020

352
Unrealized
34 NCC Bank 42,840 15.71 673,213 42,840 13.20 565,488 (107,725)

YEAR OF EXCELLENCE
35 Oimex Electrode Ltd. 0 9.09 1 0 24.30 2 2
36 Olympic Industries 17,340 215.49 3,736,510 17,340 191.10 3,313,674 (422,836)
37 One Bank Limited 981,953 21.63 21,244,160 981,953 10.60 10,408,702 (10,835,459)
38 Padma Oil 175,478 283.77 49,795,234 175,478 205.10 35,990,538 (13,804,696)
39 Pharma Aids Limited 23,637 465.64 11,006,292 23,637 474.70 11,220,484 214,191
40 Phoenix Insurance 36,060 46.61 1,680,836 36,060 44.70 1,611,882 (68,954)
41 Pioneer Insurance 5,000 76.59 382,959 5,000 75.30 376,500 (6,459)
42 Power Grid Co. 198,837 54.01 10,739,624 198,837 41.80 8,311,387 (2,428,237)
43 Premier Bank Limited 139,883 12.13 1,697,368 139,883 11.00 1,538,713 (158,655)
44 Queen South Textile Mills Ltd. 42,389 25.86 1,096,183 42,389 25.70 1,089,404 (6,778)
45 RAK Ceramics 317,358 47.22 14,986,533 317,358 26.10 8,283,044 (6,703,490)
46 Republic Insurance 10,000 57.07 570,684 10,000 55.60 556,000 (14,684)
47 Ring Shine Textiles Ltd. 101,535 8.61 874,178 101,535 6.40 649,826 (224,352)
48 Runner Automobiles Limited 9,666 71.43 690,429 9,666 50.90 491,999 (198,429)
49 Rupali Bank Limited 32,646 32.86 1,072,604 32,646 28.70 936,940 (135,664)
50 Saif Powertec Limited 70,000 16.89 1,182,055 70,000 18.00 1,260,000 77,945
51 Shahjibazar Power 10,716 109.96 1,178,382 10,716 73.30 785,492 (392,890)

Unrealized
52 Singer BD. Limited 2,000 194.11 388,220 2,000 175.60 351,200 (37,020)
53 Southeast Bank 348,243 14.73 5,130,629 348,243 12.50 4,353,038 (777,592)
54 Southeast Bank 1st MF 336,845 13.13 4,422,977 336,845 11.80 3,974,771 (448,206)
55 Square Pharma 68,687 242.86 16,680,967 68,687 219.50 15,076,753 (1,604,215)
56 Titas Gas T&D Co.Ltd. 355,810 69.03 24,559,892 355,810 30.80 10,958,948 (13,600,944)
57 Unique Hotel & Resort 5,000 53.79 268,930 5,000 39.60 198,000 (70,930)
58 Uttara Bank Ltd. 338,742 37.07 12,555,980 338,742 24.00 8,129,808 (4,426,172)
59 Uttara Finance 15,830 69.80 1,104,929 15,830 46.70 739,261 (365,668)
Sub Total (A) 406,301,502.16 275,805,015 (109,980,352)
B. Non-Marginable Share :
1 ADN Telecom Limited 216973 55.03 11,939,091 216973 64.30 13,951,364 2,012,273
2 Appollo Ispat Limited 748275 10.21 7,642,058 748275 6.50 4,863,788 (2,778,270)
3 Arian Chemicals(Pvt.Plac) 500,000 10.00 5,000,000 500,000.00 10.00 5,000,000 -
4 Beximco Limited 200,000 48.44 9,688,840 200,000.00 57.00 11,400,000 1,711,160
Crystal Insurance Company

5 10,879 10.00 108,790 10,879.00 39.40 428,633 319,843
Limited
6 CVO Petrochemical Ltd. 16,925 386.03 6,533,536 16,925.00 115.40 1,953,145 (4,580,391)
7 Delta Life Ins. 111,295 127.56 14,196,289 111,295.00 68.20 7,590,319 (6,605,970)
Annual Report 2020

354
Unrealized
Dominage Steel Building Systems

8 1,985 9.26 18,381 1,985.12 34.50 68,487 50,106
Limited
YEAR OF EXCELLENCE
9 Energypac Power Generation Ltd 300,000 50.00 15,000,000 300,000.00 50.00 15,000,000 -
10 Emerald Oil Ind.Ltd 79,182 25.02 1,981,023 79,182.00 10.80 855,166 (1,125,857)
11 Familytex (BD) Limited 457,640 8.43 3,857,810 457,639.60 2.80 1,281,391 (2,576,419)
12 Fiber Shine Ltd.(Pvt.Plcemnt) 200,000 10.00 2,000,000 200,000.00 10.00 2,000,000 -
13 Generation Next Fashions Ltd. 770,000 5.92 4,561,095 770,000.00 3.90 3,003,000 (1,558,095)
14 Golden Son Limited 99,488 34.31 3,413,015 99,488.00 11.20 1,114,266 (2,298,750)
15 InTech Online Ltd. 40,000 61.23 2,449,012 40,000.00 36.60 1,464,000 (985,012)
16 Keya Cosmetics 200,000 7.21 1,441,720 200,000.00 6.00 1,200,000 (241,720)
17 Popular Life Ins. 30,040 84.47 2,537,368 30,040.00 76.70 2,304,068 (233,300)
18 Prime Finance 120,000 73.82 8,858,364 120,000.00 12.60 1,512,000 (7,346,364)
19 Robi Axiata Limited 271,253 10.00 2,712,530 271,253.00 29.80 8,083,339 5,370,809
Sea Pearl Beach Resort & Spa

20 1,865 9.52 17,762 1,865.00 79.10 147,522 129,760
Limited
21 Tung Hai Knitting & Dyeing Ltd. 100,000 4.71 470,510 100,000.00 3.40 340,000 (130,510)
22 Union Capital 284,067 22.38 6,356,028 284,067.00 8.40 2,386,163 (3,969,865)
Sub Total (B) 110,783,221 85,946,648 (24,836,573)
Total (A+B) 517,084,724 361,751,664 (134,816,926)

Annexure-B

Unrealized
1 aamra networks limited 226,765 44.88 10,177,417 226,765 45.20 10,249,778 72,361
2 ACI LTD 55,785 246.23 13,736,312 55,785 246.00 13,723,208 (13,104)
3 Advent Pharma Limited 255,750 21.57 5,515,479 255,750 22.80 5,831,100 315,621
4 Aftab Automobiles 163,507 31.12 5,088,321 163,507 26.70 4,365,637 (722,685)
5 AMCL (Pran) 60,580 192.93 11,687,657 60,580 194.80 11,800,984 113,327
6 Apex Footwear Limited 48,849 224.79 10,980,952 48,849 220.30 10,761,435 (219,518)
7 Argon Denims Limited 124,950 21.88 2,733,831 124,950 19.70 2,461,515 (272,316)
8 Bangladesh Shipping Corp. 71,000 49.64 3,524,227 71,000 44.70 3,173,700 (350,527)
9 BBS Cables Ltd. 264,251 56.88 15,031,616 264,251 54.80 14,480,944 (550,672)
10 BDCOM Online Limited 518,700 25.17 13,058,061 518,700 24.00 12,448,796 (609,265)
11 Beximco Pharma 5,000 154.84 774,178 5,000 190.50 952,500 178,323
12 City Bank 60,000 25.46 1,527,306 60,000 24.80 1,488,000 (39,306)
13 Confidence Cement 42,180 121.00 5,103,936 42,180 121.30 5,116,434 12,498
14 DBH Finance Corp. Limited 85,742 95.31 8,171,667 85,742 92.60 7,939,709 (231,958)
15 DESCO 127,398 34.99 4,458,217 127,398 34.80 4,433,450 (24,766)
Annual Report 2020

356
Unrealized
16 Doreen Power Generations Ltd. 6,000 55.85 335,074 6,000 61.00 366,000 30,926
YEAR OF EXCELLENCE
17 Genex Infosys Limited 7,601 56.61 430,327 7,601 55.00 418,072 (12,256)
18 GPH ispat ltd. 10,001 28.36 283,650 10,001 30.60 306,015 22,365
19 Grameen MF-2 100,000 16.05 1,604,760 100,000 16.80 1,680,000 75,240
20 ICB 13,650 94.22 1,286,074 13,650 98.80 1,348,620 62,546
21 IFAD Autos Limited 916 44.10 40,400 916 47.20 43,235 2,835
22 Jamuna Oil 46,910 169.43 7,947,994 46,910 165.50 7,763,605 (184,389)
23 Meghna Petroleum Ltd. 22,000 198.30 4,362,516 22,000 198.00 4,356,000 (6,516)
24 MJL BD. Ltd. 50,613 83.30 4,215,840 50,613 76.90 3,892,140 (323,701)
Nahee Aluminum Composite
25 152,068 50.97 7,751,176 152,068 47.10 7,162,420 (588,755)
Panel Ltd.
26 National Polymar 53,725 79.26 4,258,088 53,725 71.50 3,841,338 (416,750)
27 One Bank Limited 184,173 10.91 2,009,898 184,173 10.60 1,952,234 (57,665)
28 Padma Oil 24,148 224.14 5,412,639 24,148 205.10 4,952,755 (459,884)
29 Pharma Aids Limited 16,552 473.78 7,842,073 16,552 474.70 7,857,234 15,162
30 Phoenix Insurance 45,000 44.65 2,009,210 45,000 44.70 2,011,500 2,291
31 Pioneer Insurance 5,000.00 74.89 374,449 5,000 75.30 376,500 2,051
32 Power Grid Co. 113,358 49.41 5,600,815 113,358 41.80 4,738,364 (862,450)
33 Rangpur Foundry 47,261 122.43 5,786,320 47,261 123.40 5,832,007 45,687
34 Republic Insurance 10,000 55.57 555,666 10,000 55.60 556,000 334
35 Runner Automobiles Limited 90,697 58.32 5,289,177 90,697 50.90 4,616,477 (672,700)
Unrealized
36 Rupali Bank Limited 115,000 33.54 3,857,664 115,000 28.70 3,300,500 (557,164)
37 Saif Powertec Limited 5,000 13.96 69,818 5,000 18.00 90,000 20,182
38 Silco Pharmaceuticals Limited 84,573 27.34 2,311,845 84,573 24.00 2,029,752 (282,093)
39 Silva Pharmaceuticals Limited 60,000 21.46 1,287,546 60,000 18.30 1,098,000 (189,546)
40 Southeast Bank 212,500 13.80 2,933,201 212,500 12.50 2,656,250 (276,951)
41 Square Pharma 91,070 198.95 18,118,513 91,070 219.50 19,989,865 1,871,352
42 Square Textile 56,783 29.70 1,686,427 56,783 29.80 1,692,133 5,707
43 Standard Bank 200,000 8.71 1,742,080 200,000 8.30 1,660,000 (82,080)
44 Trust Bank Limited 27,166 33.52 910,642 27,166 33.40 907,344 (3,298)
45 Western Marine Shipyard 739,371 11.73 8,675,932 739,371 11.70 8,650,646 (25,287)
Sub Total (A) 220,558,993 215,372,198 (5,186,795)
B. Non-Marginable Share :
1 Kohinoor Chemicals 8,731.80 430.33 3,757,590 8,731.80 472.80 4,128,395 370,805
Sub Total (B) 3,757,590 4,128,395 370,805
Total (A+B) 224,316,583 219,500,593 (4,815,991)
Annual Report 2020

358
Annexure-B
Unrealized
YEAR OF EXCELLENCE
Sl. No. Company Name No of Share Cost per Cost of No of Share Market Price Market Value of Gain/Loss (Tk)
1 aamra networks limited 191,112 42.09 8,043,312 191,112 45.20 8,638,262 594,951
2 AMCL (Pran) 12,271 193.94 2,379,849 12,271 194.80 2,390,391 10,542
3 Argon Denims Limited 140,816 19.40 2,731,929 140,816 19.70 2,774,075 42,146
4 BBS Cables Ltd. 511,500 52.34 26,772,370 511,500 54.80 28,030,200 1,257,830
5 BDCOM Online Limited 528,923 24.42 12,917,099 528,923 24.00 12,694,158 (222,941)
6 Beximco Pharma 3,625 164.99 598,080 3,625 190.50 690,563 92,483
7 Confidence Cement 65,612 119.54 7,843,147 65,612 121.30 7,958,736 115,589
8 Doreen Power Generations Ltd. 182,945 56.08 10,258,879 182,945 61.00 11,159,645 900,766
9 Golden Harvest Agro Ind Ltd. 275,000 16.93 4,655,723 275,000 16.70 4,592,500 (63,223)
10 GPH ispat ltd. 150,404 26.56 3,994,726 150,404 30.60 4,602,358 607,632
11 Grameen MF-2 360,000 15.79 5,685,840 360,000 16.80 6,048,000 362,160
12 ICB 205,385 96.77 19,875,887 205,385 98.80 20,292,038 416,151
13 IFAD Autos Limited 52,000 40.89 2,126,228 52,000 47.20 2,454,400 328,172
14 Jamuna Oil 10,100 166.01 1,676,735 10,100 165.50 1,671,550 (5,185)
15 Meghna Petroleum Ltd. 75,447 196.92 14,857,182 75,447 198.00 14,938,506 81,324
16 MJL BD. Ltd. 52,982 82.04 4,346,521 52,982 76.90 4,074,316 (272,206)
17 National Polymar 44,500 70.23 3,125,413 44,500 71.50 3,181,750 56,337
18 Orion Pharma Limited 5,423 42.57 230,831 5,423 54.70 296,638 65,807
Unrealized
Sl. No. Company Name No of Share Cost per Cost of No of Share Market Price Market Value of Gain/Loss (Tk)
19 Padma Oil 5,125 205.41 1,052,733 5,125 205.10 1,051,138 (1,595)
20 Power Grid Co. 209,743 45.97 9,641,340 209,743 41.80 8,767,257 (874,083)
21 Rangpur Foundry 47,836 122.22 5,846,650 47,836 123.40 5,902,962 56,313
22 Renata Limited 9,332 1,058.01 9,873,471 9,332 1,106.90 10,329,701 456,231
23 Shahjibazar Power 102,617 73.69 7,562,329 102,617 73.30 7,521,826 (40,503)
24 Square Pharma 104,000 192.46 20,015,757 104,000 219.50 22,828,000 2,812,243
25 Square Textile 125,205 29.64 3,711,402 125,205 29.80 3,731,109 19,707
26 Titas Gas T&D Co.Ltd. 64,000 34.91 2,234,125 64,000 30.80 1,971,200 (262,925)
27 Unilever Consumer Care Limited 156 2,102.05 327,920 156 2,809.20 438,235 110,315
28 Uttara Finance 10,000 43.93 439,286 10,000 46.70 467,000 27,714
Total 192,824,763 199,496,514.30 6,671,751
Grand Total (Portfolio 1, 3 and 4) 934,226,070 780,748,771
Annual Report 2020

YEAR OF EXCELLENCE
SONALI BANK LIMITED

ISLAMIC BANKING WINDOW
Balance Sheet
Amount in Taka
Particulars Notes
2020 2019
Property And Assets
Cash
Cash in Hand 222,635,582.72 -
Balance with Central Bank and its agent Bank(s) 196,430,133.19 237,674,872.00
1.00 419,065,715.91 237,674,872.00
In Bangladesh 4,257,140,712.10 -
Outside Bangladesh - 3,631,417,465.00
2.00 4,257,140,712.10 3,631,417,465.00
Money at Call on Short Notice 3.00 - -
Investments
Government 275,000,000.00 200,000,000.00
Others - 258,240,388.00
4.00 275,000,000.00 458,240,388.00
Loans and Advances
Loans, Cash Credit, Overdrafts, etc. 294,406,081.16 -
Bills Purchased and Discounted - -
5.00 294,406,081.16
Fixed Asset including Premises, Furniture and Fixture 6.00 - -
Other Assets 7.00 118,113,686.66 452,064,935.00
Total Assets 5,363,726,195.83 4,779,397,660.00
Liabilities And Capital
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 9.00 - -
Current Accounts & Other Accounts etc. 5,276,916.44 7,610,915.00
Bills Payable - 102,942,191.00
360
FINANCIAL STATEMENTS OF ISLAMIC BANKING UNIT
Amount in Taka
Particulars Notes
2020 2019
Savings Bank Deposits 108,221,555.98 93,875,745.00
Fixed Deposits 4,508,031,106.49 3,773,240,036.00
Other Deposits 3,004,795.18 65,648,355.00
10.00 4,624,534,374.09 4,043,317,242.00
Other Liabilities 11.00 739,191,821.74 736,080,418.00
Total Liabilities 5,363,726,195.83 4,779,397,660.00
Paid up Capital 12.00 - -
Statutory Reserve 13.00 - -
Other Reserve 14.00 - -
Revaluation Reserve 15.00 - -
Surplus in Profit and Loss Account/Retained Earnings 16.00 - -
Total Liabilities and Shareholders' Equity
Off-Balance Sheet Items
Letters of Guarantee - -
Irrevocable Letters of Credit - -
Bills for Collection - -
17.00 - -
Other Commitments
Undrawn formal standby facilities, credit lines and other commitments - -
Total Off Balance Sheet items including contingent liabilities - -
Net Asset Value (NAV) per Share - -
Annual Report 2020

YEAR OF EXCELLENCE
SONALI BANK LIMITED

Islamic Banking Department
for the year ended 31 December 2020
Amount in Taka
Particulars Notes
2020 2019
Operating Income
Interest income 18.00 293,506,461.66 265,978,296.28
Interest paid on deposit and borrowing etc. 19.00 191,275,356.90 170,753,545.06
Net Interest Income 102,231,104.76 95,224,751.22
Investment income 20.00 - -
Commission, exchange and brokerage 21.00 284,088.49 123,823.33
Other operating income 22.00 102,110.41 180,450.75
Total Operating Income (A) 102,617,303.66 95,529,025.30
Operating Expenses
Salary and allowances 23.00 - -
Rent, tax, insurance, electricity etc. 24.00 - -
Legal expenses 25.00 - -
Postage, stamps and telecommunication etc. 26.00 - -
Printings, stationery, advertisements etc. 27.00 - -
Chief Executive's salary and fees 28.00 - -
Directors' fees 29.00 - -
Auditors' fees 30.00 - -
Depreciation & repair to bank's assets 31.00 - -
Other expenses 32.00 - -
Total Operating Expenses (B) - -
Profit Before Provision, Amortization and Taxes C=(A-B) 102,617,303.66 95,529,025.30
Provision for loans & advances 33.00 - -
Provision for diminution in value of investment 34.00 - -
Other provision 35.00 - -
Total Provision (D) - -
Total Profit/(Loss) before Taxes E=(C-D) 102,617,303.66 95,529,025.30
Provision for taxation (F)
Current tax - -
Deferred tax - -
Net Profit/(Loss) after Tax G=(E-F) 102,617,303.66 95,529,025.30
Appropriations
General Reserve - -
Statutory Reserve - -
Reserve for CSR - -
Dividend etc. - -
Retained Surplus Carried Forward - -
Earnings Per Share (EPS) 37.00 - -
362
FINANCIAL STATEMENTS OF SECI
SONALI EXCHANGE
CO. INC.
Independent Auditors’ Report

To the Board of Directors and Stockholder of
Sonali Exchange Co. Inc.
We have audited the accompanying financial statements of financial statements. The procedures selected depend on
Sonali Exchange Co. Inc., a State of New York corporation, the auditor’s judgment, including the assessment of the
which comprise the balance sheet as of December 31, 2020 risks of material misstatement of the financial statements,
and 2019, and the related statements of income and cash whether due to fraud or error. In making those risk
flows for the years then ended, and the related notes to the assessments, the auditor considers internal control relevant
financial statements. to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that
Management’s Responsibility for the are appropriate in the circumstances, but not for the purpose
Financial Statements of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion.
Management is responsible for the preparation and fair
An audit also includes evaluating the appropriateness
presentation of these financial statements in accordance
of accounting policies used and the reasonableness of
with accounting principles generally accepted in the United
significant accounting estimates made by management, as
States of America; this includes the design, implementation,
and maintenance of internal control relevant to the well as evaluating the overall presentation of the financial
preparation and fair presentation of financial statements that statements.
are free from material misstatement, whether due to fraud or We believe that the audit evidence we have obtained is
error. sufficient and appropriate to provide a basis for our audit
opinion.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial
Opinion
statements based on our audits. We conducted our audits In our opinion, the financial statements referred to
in accordance with auditing standards generally accepted above present fairly, in all material respects, the financial
in the United States of America. Those standards require position
that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of Sonali Exchange Co. Inc. as of December 31, 2020 and
from material misstatement. 2019, and the results of its operations and its cash flows
for. years then ended in accordance accounting
An audit involves performing procedures to obtain audit principles generally accepted in the United States of
evidence about the amounts and disclosures in the America.
New York
January 28, 2021
Annual Report 2020

YEAR OF EXCELLENCE
SONALI EXCHANGE CO. INC.

Balance Sheet
As at 31 December 2020 and 2019
Amount in USD
Particulars Notes
2020 2019
Property And Assets
Cash
Cash in Hand 1,510,832 1,457,235
Balance with Central Bank and its agent Bank(s) - -
1.00 1,510,832 1,457,235
In USA 3,130,829 1,867,579
Outside USA - -
2.00 3,130,829 1,867,579
Money at Call on Short Notice 3.00 - -
Investments
Government - -
Others - -
4.00
Loans and Advances
Loans, Cash Credit, Overdrafts, etc. - -
Bills Purchased and Discounted - -
5.00
Fixed Asset including Premises, Furniture and Fixture 6.00 10,127 17,730
Other Assets 7,00 91,918 177,810
Total Assets 4,743,706 3,520,354
Liabilities And Capital
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 9.00 816,200 812,000

Current Accounts & Other Accounts etc. - -
Bills Payable - -
Savings Bank Deposits - -
Fixed Deposits - -
Other Deposits 10.00 - -
Other Liabilities 11.00 2,871,535 1,876,404
Total Liabilities 3,687,735 2,688,404
Paid up Capital 12.00 950,000 950,000
Statutory Reserve 13.00 - -
Other Reserve 14.00 - -
Revaluation Reserve 15.00 - -
Surplus in Profit and Loss Account/Retained Earnings 16.00 105,971 (118,050)
Total Liabilities and Shareholders' Equity 4,743,706 3,520,354
Anowar Hossain, CPA Devasree Mitra

New York, NY President & CEO
364
Amount in USD
Particulars Notes
2020 2019
Off-Balance Sheet Items
Letters of Guarantee - -
Bills for Collection - -
17 - -
Other Commitments
Undrawn format standby racrities, creadit lines and other commitments - -
Total Off Balance Sheet items including contingent liabilities - -
Net Asset Value (NAV) per Share 111.15 87.57

Annual Report 2020

YEAR OF EXCELLENCE

Amount in USD
Particulars Notes
2020 2019
Operating Income
Interest income 18.00 28,406 18,408
Interest paid on deposit and borrowing etc. 19.00 8,120 9,780
Net Interest Income 20,286 8,628
Investment income 20.00
Commission, exchange and brokerage 21.00 2,336,261 1,691,087
Other operating income 22.00 85 30
Total Operating Income (A) 2,356,631 1,699,745
Operating Expenses
Salary and allowances 23.00 777,809 805,838
Rent, tax, insurance, electricity etc. 24.00 499,426 444,263
Legal expenses 25.00 31,000 33,733
Postage, stamps and telecommunication etc. 26.00 59,192 59,845
Printings, stationery, advertisements etc. 27.00 67,446 67,062
Chief Executive's salary and fees 28.00 75,199 18,935
Directors' fees 29.00 6,000 5,250
Auditors' fees 30.00 26,000 24,000
Depreciation & repair to bank's assets 31.00 9,993 10,457
Other expenses 32.00 573,484 430,762
Total Operating Expenses (B) 2,125,548 1,900,145
Profit Before Provision, Amortization and Taxes C=(A-B) 231,083 (200,400)
Provision for loans & advances 33.00 - -
Provision for diminution in value of investment 34.00 - -
Other provision 35.00 - -
Total Provision (D)
Total Profit/(Loss) before Taxes E=(C-D) 231,083 (200,400)
Provision for taxation
Current tax (7,062) (2,339)
Deferred tax
Total Provision for Taxation (F) (7,062) (2,339)
Net Profit/(Loss) after Tax G=(E-F) 224,021 (202,739)
Appropriations
General Reserve
Statutory Reserve
Reserve for CSR
Dividend etc.
Retained Surplus Carried Forward 224,021 (202,739)
Earnings Per Share (EPS) 37.00 23.58 (21.34)

366

Cash Flow Statement
Amount in USD
Particulars Notes
2020 2019
Interest received 28,406 18,408
Interest paid (8,120) (9,780)
Dividend Received
Fee and commission and exchange received 2,336,261 1,691,087
Recoveries of previously written-off loan & advances
Cash paid to employees
Cash paid to Suppliers
Income taxes paid 7,062 (2,339)
Cash received from other operating activities 85 30
Cash paid for other operating activities (2,139,672) (1,900,145)
Cash generated from operating activities 224,021 (202,739)
Increase/(decrease) in operating assets and liabilities
Loans & advances to customers - -
Other assets 115,759 (69,426)
Deposits from other banks - -
Deposits from customers - -
Other liabilities 1,153,330 226,064
Net cash flow from operating activities 1,493,111 (46,101)
(Purchase)/Sale of securities & bond - -
(Purchase)/sale of fixed assets (22,264) (3,521)
Net cash (used in)/flow from investing activities (22,264) (3,521)
Payments for redemption of loan capital & debt security (154,000) (178,000)
Dividends paid - -
Net cash (used in)/flow from financing activities (154,000) (178,000)
D. Net (decrease)/increase in cash and cash equivalents (A+B+C) 1,316,847 (227,622)
E. Cash and cash-equivalents at beginning of the year 3,324,814 3,552,435
F. Cash and cash-equivalents at end of the year 36.00 4,641,661 3,324,814

Annual Report 2020

368
For the year ended 31 December 2020 and 2019
(Amount in USD)
YEAR OF EXCELLENCE

Balance as at 01 January 2020 950,000 - - - - (118,050) 831,950
Surplus/deficit on account of revaluation of _ _ _
Net Profit for the year (after appropriation) - - - - - 224,021 224,021
Share money transferred to paid up capital - - - - - -
Transferred to Statutory Reserve - - - - - - -
Balance as at 31 December 2020 950,000 - - - - - 1,055,971
Balance as at 31 December 2019 950,000 - - - - (118,050) 831,950

Annexure -A
Cost Depreciation Written down value

Sl.
Category of Assets Opening Purchased Disposal Charged
No. Total as on Opening Adjustment for Total as on As on As on
balance as during the during the Rate during the
31.12.2020 balance Disposal Assets 31.12.2020 31.12.2020 31.12.2019
on 01.01.20 year year year
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11=(5-10) 12
1 furniture & Fixture 135,199 - - 135,199 - 133,610 637 - 134.248 951 1,589
2 Machinery & Equipment 173,004 2,390 - 175,394 - 171,056 1,283 - 172,339 3,055 1,948
3 Motor Vehicle - - - - - - - , - - -
4 Organizational Cost - - - - - - - - - - -
5 Security System 20,350 - - 20,350 - 20,350 - - 20,350 -
6 Application of Software - - - - - „ - - - -
7 Leasehold Improvement 288,118 - - 288,118 - 273,925 8,073 - 281,997 6,121 14,193
Total Assets 616,671 2,390 - 619,061 - 598,941 9,993 - 608,934 10,127 17,730
* Rate of Depreciation is determined as per IRS guidelines (Item wise straight line basis).

Annual Report 2020

YEAR OF EXCELLENCE
Bank
Particulars Notes
2020 2019
1.00 Cash
Cash in hand 1.01 1,510,832 1,457,235
Balance with Central Bank and its Agent Bank's 1.02
1,510,832 1,457,235
1.01 Cash In Hand
Local Currency (USD) 1.01.01 1,510,832 1,457,235
Foreign Currency 1.01.02
1,510,832 1,457,235
1.01.01 Local Currency (USD)
Cash in hand 1,510,832 1,457,235
Cash with ATM A/C
1,510,832 1,457,235
1.01.02 Foreign Currency
Foreign Currency in hand - -
1.02 Balance with Central Bank and its Agent Bank
Local Currency - -
Foreign Currency - -
2.00 Balance with Other Banks and Financial Institutions:
In USA
Local Currency 3,130,829 1,867,579
Foreign Currency
3,130,829 1,867,579
2.01 Balance with other Banks and Financial Institutions
Bank Name
HAB Bank 2,922,216 1,798,190
Metro City Bank 208,613 69,389
Total 3,130,829 1,867,579
3.00 Money at Call on Short Notice
Bank Name - -
Total - -
4.00 Investments
Government Securities 4.01 - -
Other Investments 4.02 - -
Total - -
4.01 Government Securities
Treasury bills-Primary - -
Government Notes/Bonds/other securities - -
Prize Bond - -
Total Government Securities - -

370
Bank
Particulars Notes
2020 2019
4.02 Other Investments:
Ordinary Share - -
Debentures of private sectors - -
Investment in foreign currency - -
Private Bond - -
Total Other Investments
5.00 Loans and advances
Loans, cash credits and overdrafts 5.01 - -
Bills purchased and discounted 5.02 - -
5.01 Loans and Advances (In and outside UK) including bills purchased and discounted
Inside UK 5.01.01 - -
Outside UK 5.02.02 - -
5.01.01 Inside UK
Loan - -
Cash Credit - -
Overdraft - -
Bills purchased and discounted - -
5.02.02 Outside UK
Loan - -
Cash Credit - -
Overdraft - -
Bills purchased and discounted - -
5.01.01 Head-wise Loans, Cash Credits and Overdrafts:
Inside UK - -
Loans - -
Demand Loan - -
House Building Loan (General) - -
Staff Loan - -
Agricultural Loan - -
Small Business Loan - -
Lease Finance - -
Personal Loan - -
Term Loan to Banks & NBFIs - -
Forced Loan A/C-EDF - -
5.02.02 Outside UK
Demand Loan - -
Small Loan - -
Staff House Building Loan - -
Total Loans - -
6.00 Fixed Asset including Premises, Furniture & Fixture
(A) Cost
Premises - -
Leasehold Improvement 288,118 288,118
Furniture & Fixture 135,199 135,199
Security System 20,350 20,350
Organizational Cost - -
Machinery & Equipment 175,394 173,004
Motor Car & Other Vehicle - -
Total Cost Value 619,061 616,671

Annual Report 2020

YEAR OF EXCELLENCE
Bank
Particulars Notes
2020 2019
Premises - -
Furniture & Fixture 134,248 133,610
Security System 20,350 20,350
Organizational Cost - -
Total Accumulated Depreciation 608,934 598,941
Written down value (A-B) 10,127 17,730
7.00 Other Asset
Income generating other assets
Investment in Shares - -
Advance Rent, Advertisement etc. - -
Interest, Commission and Exchange Receivable - -
Prepaid Expenses - -
Non Income generating other assets
Stationery, Stamps and Printing Materials in hand - -
Branch Adjustment - -
Security Deposits 90,518 70,644
Advance Cover Funds - -
Advance deposit - -
Suspense A/C - -
Others 1,400 107,166
91,918 177,810
7.01 Stationery, Stamps and Printing Materials in hand
Stamps on hand - -
Stationery on hand - -
7.02 Advance Rent and Advertisement etc.
Advance Rent (Non Interest Bearing] - -
7.03 Interest, Commission & Exchange receivable
Interest receivable - -
Commission receivable - -
Others receivable - -
7.04 Prepaid Expenses
Rent - -
Salary - -
Law charges - -
Postage - -
Sundries - -
7.05 Suspense Account
Advance Recoverable - -
Salary & Allowances - -
Traveling Expenses - -
Taxes - -
Insurance - -
Miscellaneous - -

372
Bank
Particulars Notes
2020 2019
7.06 Others :
Others - -
8.00 Non Banking Assets
9.00 Borrowings from other banks, financial institutions & agents
In USA 158,200 -
Outside USA 658,000 812,000
816,200 812,000
Current Deposit & Other Accounts - -
Bills Payable - -
Savings Deposits - -
Fixed Deposits - -
Other Deposits - -
10.01 Current Deposit & Other Accounts
10.02 Bills Payable
Payment Order - -
Foreign Draft/Travelers Cheque Issued A/c. - -
Foreign Draft Payable A/c. - -
10.03 Savings Bank Deposits
10.04 Fixed Deposits
10.05 Other Deposits
11.00 Other liabilities
Security Deposit (Premises Sub lease) 1,400 1,400
Cover Funds 1,871,988 1,117,029
Remittance Liabilities to Remitters 964,423 746,458
Payroll Tax Liabilities 14,078 11,517
Others 19,646 -
2,871,535 1,876,404
Authorized Capital 1,000,000 1,000,000
12.00 Paid up Capital 950,000 950,000
950,000 950,000
13.00 Statutory Reserve
14.00 Other Reserves
15.00 Revaluation Reserve
Revaluation of investment - -
Assets Revaluation Reserve - -
16.00 Retained Earnings - -
Balance at the beginning of the period (118,050) 84,689
Net Profit After Tax 224,022 (202,739)
Transfer to Statutory Reserve - -
Total Retained Surplus 105,971 (181,050)
17.00 Contingent Liabilities & Commitments
Letters of guarantee - -
Bills for collection - -

Annual Report 2020

YEAR OF EXCELLENCE
Bank
Particulars Notes
2020 2019
18.00 Interest Income - -
On Loan and Advances - -
On Balance with other banks and financial institutions 28,406 18,408
On Received from foreign banks - -
Others Interest income - -
28,406 18,408
19.00 Interest paid on deposits and borrowings etc.
Interest on Deposits - -
Interest on Borrowings 8,120 9,780
Interest on Foreign Banks Account - -
Interest on others - -
8,120 9,780
20.00 Investments Income
Treasury Bills-Primary - -
Government Notes/Bands/other securities - -
Interest on Treasury Bond - -
Debentures of private sectors - -
Investment in foreign currency - -
Private Bond - -
Interest on Reverse Repo - -
Dividend income & Others - -
21.00 Commission, Exchange and Brokerage
Commission 482,768 389,977
Exchange 1,853,493 1,301,110
2,336,261 1,691,087
22.00 Other Operating Income
Sundries 85 -
85 -
23.00 Salary & Allowances
Salaries (Basic Pay, House Rent & Other Allowance) 777,809 805,838
Contribution to Pension & Gratuity Fund - -
Bank's contribution to provident fund - -
Medical Allowance - -
Festival Bonus - -
Recreation Expense - -
Bangla Nabobarsho Allowance - -
Salaries and allowances of Indian operation - -
777,809 805,838
24.00 Rent, Tax, Insurance, Electricity, etc.
Rent 351,277 309,072
Taxes 769 592
Service Charge of premises - -
Insurance 120,567 107,720
Power and electricity 26,812 26,880
499,426 444,263
25.00 Legal expenses
Law charges 31,000 33,733
Other Legal Expenses - -
31,000 33,733

374
Bank
Particulars Notes
2020 2019
26.00 Postage, Stamps, Telecommunication
Postage 4,391 4,899
Court Fees and Stamps - -
Telephone 54,800 54,946
59,192 59,845
27.00 Printing, Stationery, Advertisement, etc.
Stationery 26,789 29,192
Printing 11,446 -
Advertisement 29,210 37,870
67,446 67,062
28.00 Chief executive's salary and fees
Chief executive's salary and fees 75,199 18,935
75,199 18,935
29.00 Directors' Fees & Honorium
Directors' fees & Honorium 6,000 5,250
6,000 5,250
30.00 Auditors' fees
Statutory Audit fee 26,000 24,000
26,000 24,000
31.00 Depredation and Repairs at Bank's Assets
Depredation:
Premises - -
Sub-total 8,073 8,073
B) Dead stock - -
Furniture 637 637
Computer Software - -
Computer Hardware - -
Type Writer Machine - -
Library - -
Sub-total 1,920 2,384
Depreciation of Indian operation - -
Sub-total
Repairs:
Repairs to Bank's Assets - -
Sub-total - -
Total 9,993 10,457
32.00 Other expenses
Maintenance 84,227 75,723
Bank Charge 189,721 146,152
Business Losses 160 965
Cash Carrying 50,551 52,682
Licensing Expenses 33,716 44,259
Entertainment 713 1,338
Compliance 56,749 43,850

Annual Report 2020

YEAR OF EXCELLENCE
Bank
Particulars Notes
2020 2019
Traveling Expenses 46,453 3,166
Business Development 35,155 -
Office Expenses 39,863 45,901
Outsource Services 25,373 9,237
Security Services 10,804 7,489
Computer Hardware Repairs & Maintenance - -
Computer Software Repairs & Maintenance - -
Rent of Connectivity/CCTV/Internet Etc. - -
Training Expenses - -
Business Development - -
Honorarium to Staff - -
Generator Maintenance - -
Children Education Allowance - -
VAT Expense - -
Total 573,484 430,762
33.00 Provision for Loans and Advances
Provision for Classified Loans & Advances - -
Provision for Unclassified Loans and Advances - -
34.00 Provision for diminution in value of investment
Dealing securities
Quoted - -
Unquoted - -
Investment securities
Quoted - -
Unquoted - -
Debenture (Public and Private) - -
35.00 Other provisions
Provision for Other Assets - -
Provision which no more Required against Off Balance Sheet - -
Provision for Unforeseen Losses - -
Provision for Bonus - -
36.00 Cash and cash equivalents
Cash in hand 1,510,832 1,457,235
Cash at Bank 3,130,829 1,867,579
Balance with Bangladesh Bank - -
Money at call on short notice - -
Balance held with other bank - -
Prize bonds in hand - -
4,641,661 3,324,814
37.00 Earnings per Share (EPS)
Net profit after tax 224,021 (202,739)
Number of ordinary shares outstanding 9,500 9,500
Earnings per share (EPS) 23.58 (21.34)

376
ADDITIONAL INFORMATION
DOMESTIC BRANCHES
Sl. CORPORATE BRANCHES 13 REGISTRATION COMPLEX
1 LOCAL OFFICE, DHAKA 14 NCTB
2 BANGABANDHU AVENUE CORP., DHAKA 15 BANGO BHABAN
3 RAMNA CORP., DHAKA 16 RAJUK BHABAN
4 WAGE EARNERS’ CORP., DHAKA 17 KRISHI BHABAN
5 SHILPA BHABAN CORP., DHAKA 18 NAGAR BHABAN
6 DILKUSHA CORP., DHAKA 19 KAKRAIL
7 FOREIGN EXCHANGE CORP., DHAKA 20 SEGUN BAGICHA
8 B-WAPDA BHABAN CORP., DHAKA 21 SONARGAON ROAD
9 SADARGHAT CORP., DHAKA 22 SUPREME COURT
10 DHAKA CANTT. CORP., DHAKA PRINCIPAL OFFICE : DHAKA SOUTH
11 DU CAMPUS CORP., DHAKA 1 AGLA
12 HOTEL SHERATON CORP., DHAKA 2 ARMANITOLA
13 DHANMONDI CORP., DHAKA 3 ATIBAZAR
14 PM OFFICE CAORP., DHAKA 4 BABUBAZAR
15 CHAWKBAZAR CORP., DHAKA 5 CHURAIN
16 NARAYANGONJ CORP., NARAYANGONJ 6 D.C.HALL
17 MYMENSINGH CORP., MYMENSINGH 7 DISTILARY ROAD
18 AGRABAD CORP., CHITTAGONG 8 FARASHGANJ
19 LALDIGHI CORP., CHITTAGONG 9 JOYPARA
20 WAGE EARNERS’ CORP., CHITTAGONG 10 KALAKOPA
21 COMILLA CORP., COMILLA 11 KALATIA
22 KHULNA CORP., KHULNA 12 KERANIGANJ
23 DOULATPUR CORP., KHULNA 13 MITFORD ROAD
24 JESSORE CORP., JESSORE 14 LAXMI BAZAR
25 RAJSHAHI CORP., RAJSHAHI 15 NAWABGANJ
26 BOGRA CORP., BOGRA 16 NAYABAZAR
27 RANGPUR CORP., RANGPUR 17 NAZIRABAZAR
28 DINAJPUR CORP., DINAJPUR 18 PALAMGANJ
29 BARISAL CORP., BARISAL 19 POSTAGOLA
30 SYLHET CORP., SYLHET 20 RUHITPUR
31 DARGAGATE CORP., SYLHET 21 NAZIM UDDIN ROAD
32 FARIDPUR CORP., FARIDPUR 22 RASULPUR BAZAR
GENERAL MANAGER’S OFFICE 23 NORTH SOUTH SARAK
DHAKA-1 24 PANGAON ICT BR.
PRINCIPAL OFFICE : BANGABANDHU DHAKA CENTRAL
PRINCIPAL OFFICE: NARSHINGDI
1 BAITUL MOKKARRAM
1 BELABOO
2 BANANI
2 DANGA
3 BANANI BAZAR
3 GHORASAL
4 BARIDHARA
4 GORADIA
5 BANGA BANDHU JATIO STADIUM
5 MADHABDI
6 FARMGATE
6 MONOHARDI
Sl. NAME OF BRANCH
7 NARAYANPUR BAZAR
7 GULSHAN
8 NARSINGDI
8 GULSHAN NEW NORTH CIRCLE
9 PALASH
9 KAWRAN BAZAR
10 PANCHDONA
10 MOHAKHALI
11 PUTIA
11 SONARGAON HOTEL
12 RAIPURA
12 TEJGAON INDUSTIAL AREA
13 RAMPUR BAZAR
Annual Report 2020

YEAR OF EXCELLENCE
14 SAIDABAD 12 BASHABO
15 SATIRPARA 13 KAMALAPUR RAILWAY STATION ICD
16 SHIBPUR 14 SAIDABAD BUS TERMINAL
17 BHAKHAN NAGAR 15 AWLAD HOSSAIN MARKET
18 COURT BUILDING 16 VIKARUNNISSA NOON SCHOOL
19 BELTALI BAZAR 17 ISHWAR CH.STREET
20 PORADIA BAZAR 18 NOWABPUR ROAD
21 HATIRDIA BAZAR 19 WARI
PRINCIPAL OFFICE: GAZIPUR PRINCIPAL OFFICE: DHAKA WEST
1 STATION ROAD 1 PUBLIC SERVICE COMMISSION
2 BSIC INDUSTRIAL AREA 2 GANA BHABAN
3 TONGI 3 GREEN ROAD
4 TONGI BAZAR 4 KALLYANPUR
5 B.A.R.I. 5 MANIK MIAH AVENUE
6 B.R.R.I 6 COLLEGE GATE
7 BHAWAL JAMALPUR 7 B.I.S.E.
8 BOF GAZIPUR CANTONMENT 8 B.M.E.B.
9 GAZIPUR COURT BUILDING 9 B.U.E.T.
10 JOYDEVPUR 10 NEW MARKET
11 KALIAKOIR 11 JHIKATALA
12 KALIGANJ Sl. NAME OF BRANCH
13 KAPASIA 12 LALMATIA
14 PUBAIL BAZAR 13 MOHAMMADPUR BAZAR
15 RAJENDRAPUR CANTONMENT 14 JATIO SANGSHAD BHABAN
16 BARMI BAZAR 15 SATMASJID ROAD
17 SREEPUR THANA HEAD QUARTER 16 BAJME KADERIA COMPLEX
18 GAZIPUR SADAR UPAZILLA COMPLEX 17 AGARGAON
19 SHAFIPUR ANSAR ACADEMY COMPLEX 18 AGRANI BALIKA BIDYALAYA
20 SINGSREE BAZAR 19 HAZARIBAG BRANCH
21 JATIO BISWABIDDALAYA 20 KRISHI BAZAR
22 B.B.SK.MUJIB KRISHI BISWABIDDALAYA 21 LALBAG ROAD (DHAKA)
REGIONAL OFFICE: MANIKGONJ 22 MOKIMKATRA
1 BALIRTEK BAZAR 23 URDU ROAD
2 DARGRAM PRINCIPAL OFFICE: MIRPUR
3 DAULATPUR 1 KURMITOLA
4 GHIOR 2 NEVAL HEAD QUARTER
5 HARIRAMPUR 3 UTTARA MODEL TOWN
6 MANIKGANJ 4 SHAHJALAL INTERNATIONAL AIRPORT
7 MANIKGANJ UPAZILLA 5 IBRAHIMPUR
8 SATURIA 6 CUSTOM HOUSE BRANCH,KURMITOLA
9 SHIVALAYA 7 UTTARKHAN BRANCH
10 SINGAIR 8 ASHULIA BAZAR BR.
11 CHANDAHAR 9 AMIN BAZAR
GENERAL MANAGER’S OFFICE 10 DHAMRAI
DHAKA-2
11 MIRPUR SECTION-1
PRINCIPAL OFFICE: DHAKA EAST
12 NAYARHAT
1 BADDAH
13 PATC (SAVAR)
2 MOGH BAZAR
14 KALAMPUR BAZAR
3 BAWANINAGAR
15 MIRPUR CANTONMENT
4 DAYAGONJ
16 MIRPUR SECTION-12
5 FAKIRAPOOL
17 SAVAR
6 GORAN
18 SAVAR CANTONMENT
7 JATRABARI
19 BEGUM ROKEYA SHARANI
8 KHILGAON
20 MIRPUR SHILPA ELAKA
9 MALIBAGH
21 DHAKA RAPTANI PRAKRIAKARAN ALAKHA
10 RAMPURA
11 SHAHJAHANPUR
378
PRINCIPAL OFFICE: NARAYANGONJ Sl. NAME OF BRANCH

1 ARAIHAZAR 16 NANDAIL
2 GODNAIL 17 PADURBARI
3 FATULLAH 18 PHULPUR
4 DHARMAGANJ 19 BINA
5 DHUPTARA 20 SHIBGONJ
6 GOPALDI BAZAR 21 TARERGHAT
7 KURIPARA 22 TRISHAL
8 LADIES BRANCH 23 DOBAURA
9 MADANGANJ 24 TARAKANDA
Sl. NAME OF BRANCH 25 JATIO KOBI KAZI NAZRUL ISLAM UNI.
10 MUGRAPARA PRINCIPAL OFFICE : JAMALPUR
11 NABIGANJ 1 BAKSHIGONJ
12 NARAYANGANJ DOCK YARD 2 BSCI INDUSTRIAL ESTATE
13 NETAIGANJ 3 CHAPARKONA
14 PUNCHRUKHI 4 DEWANGONJ BAZAR
15 RUPGANJ 5 DEWANGONJ SUGAR MILL
16 SONARGAON 6 HAZRABARI
17 TARABOO BAZAR 7 ISLAMPUR
18 BANDAR BRANCH 8 JAMALPUR
PRINCIPAL OFFICE: MUNSHIGONJ 9 JAMALPUR BAZAR
1 BALURCHAR 10 BARO MASJID ROAD
2 BASAIL 11 MADERGONJ
3 BHABERCHAR 12 MEDICAL ROAD
4 DIGHOLI BAZAR 13 MELANDAH
5 GAZARIA 14 NANDINA
6 MAWYA 15 SANANDABARI
7 HALDIA BAZAR 16 SHARISHABARI
8 KEYAIN 17 SHARISHABARI THANA HEAD QUARTER
9 MUNSHIGANJ 18 SREEPUR KUMARIA BAZAR
10 REKABIBAZAR 19 JAMUNA SAR KARKHANA
11 SHEKHAR NAGAR PRINCIPAL OFFICE: KISHORGONJ
12 SIRAJDEE KHAN 1 AUSTAGRAM
13 SREE NAGAR 2 BAJITPUR
14 SYEDPUR 3 BHAIRAB
15 TALTALA 4 CHAYSHUTI
16 TONGIBARI 5 DOMRAKANDA
17 SUKHBASHPUR 6 HOSSAINPUR
18 DAMLA 7 ITNA
GENERAL MANAGER’S OFFICE 8 KALIACHAPRA
MYMENSINGH
9 KARIMGONJ
PRINCIPAL OFFICE : MYMENSINGH
10 KATIADI
1 MATHSHA GABESHANA INSTITUTE
11 KISHOREGONJ
2 ASIM BAZAR
12 KULIARCHAR
3 BALIA BAZAR
13 MITAMAIN
4 BHALUKA
14 NIAMATPUR
5 CHAR NILOKHIA
Sl. NAME OF BRANCH
6 FULBARIA
15 NIKLY
7 GAFFARGAON
16 PAKUNDIA
8 GAYESPUR
17 TARAIL
9 GOURIPUR
18 STATION ROAD
10 HALUAGHAT
PRINCIPAL OFFICE : TANGAIL
11 ISWARGONJ
1 BARATI BAZAR
12 KESHORGONJ BAZAR
2 BASHAIL
13 MUKTAGACHA
3 BHUAPUR
14 MYMENSINGH
4 DELDUAR
15 MYMENSINGH BUSINESS CENTRE
Annual Report 2020

YEAR OF EXCELLENCE
5 DHANBARI GENERAL MANAGER’S OFFICE

FARIDPUR
6 DIST. HEAD QUARTER
PRINCIPAL OFFICE : FARIDPUR
7 FALDA BAZAR
1 ALFADANGA
8 GHATAIL
2 BHANGA
9 GOBINDASHI
3 BISWA ZAKIR MANJIL
10 GOPALPUR
4 BOALMARI
11 GORAI
5 SADAR UPAZILLA COMPLEX
12 KALIHATI
6 CHAR BHADRASAN
13 KENDUA BAZAR
7 COURT BUILDING
14 BALLA BAZAR
8 FARIDPUR
15 LADIES BRANCH
9 GOALCHAMAT
16 LOWHATI
10 HAJIGONJ
17 MIRZAPUR
11 HATKRISHNAPUR
18 MODHUPUR
12 KAMARKHALI
19 MOHANPUR
13 KANAIPUR
20 NAGARPUR
14 KHALILPUR
21 NIKRAIL
15 MADHUKHALI
22 PAKUTIA
16 MADHUKHALI U.Z.C.
23 SHAKHIPUR
17 NAGARKANDA
24 TANGAIL
18 SADARPUR
25 TANGAIL BAZAR
19 SHIRGRAM
26 VICTORIA ROAD
20 TALMA
27 SHAHID SALAHUDDIN CANTT.GHATAIL
21 TEPAKHOLA
28 NALIN BAZAR
22 MOYENDA BAZAR
29 MOULANA BHASANI SCIENCE AND TECH.
23 SALTHA BAZAR
30 GARO BAZAR
PRINCIPAL OFFICE : MADARIPUR
31 ELENGA
1 ANGARIA BAZAR
32 SADATPUR BAZAR
2 BHEDARGONJ
REGIONAL OFFICE : SHERPUR
3 CHAR MUGURIA
1 SHERPUR
Sl. NAME OF BRANCH
2 JHENAIGATI
4 DAMUDDYA
3 NAKHLA
5 GOSAIRHAT
4 NALITABARI
6 JAJIRA
5 NAYANI BAZAR
7 KALKINI
6 SREEBORDI
8 KULPADDI
7 SURJADI BAZAR
9 PAURASHAVA
8 KORTIMARI BAZAR
10 MADARIPUR
9 RAJIBPUR
11 MILLGATE
10 ROWMARI
12 NARIA
11 Kortimari Bazar
13 RAJOIR
REGIONAL OFFICE : NETROKONA
14 SARIATPUR
1 ATPARA
15 SHIBCHAR
2 BARHATTA
16 TEKERHAT
3 DURGAPUR
17 DATTAPARA BAZAR BRANCH
4 KALMAKANDA
PRINCIPAL OFFICE : KUSHTIA
5 KENDUA
1 AMLA
6 KHALIAJHURI
2 BHERAMARA
7 LEPSIA
3 BHERAMARA POWER STATION
8 MADAN
4 COURT BUILDING
9 MADANPUR
5 DAULATPUR
10 MOHANGONJ
6 DOHAKULA
11 NETROKONA
7 EKTERPURHAT
12 PURBADHALA
8 HALSHA
13 THAKURKONA BAZAR
9 HARINARAYANPUR
14 HOGLA BAZAR
10 KUSHTIA SUGAR MILLS
11 KAYA BAZAR
380
12 KHOKSHA 10 RAJBARI
13 KUMARKHALI 11 RAJBARI UPOZILLA COMPLEX
14 KUMARKHALI UPA ZILLA COMPLEX 12 KALUKHALI
15 KUSHTIA GENERAL MANAGER’S OFFICE
CHATTOGRAM
16 MIRPUR
PRINCIPAL OFFICE : CHATTOGRAM NORTH
17 MODHUPUR BAZAR
1 AMIN JUTE MILLS
18 N.S.ROAD
2 ASADGONJ
19 PORADAH
3 BAHADDARHAT
20 SAMOSPUR
4 CHAKTAI
21 PASHCHIM ABDALPUR
5 CHATTOGRAM CANTONMENT
22 NANDALALPUR
6 CHOWKBAZAR
PRINCIPAL OFFICE : CHUADANGA
7 COURT HILLS
1 ALAMDANGA
8 JAMALKHAN ROAD
2 CHUADANGA
9 KAGATIAHAT
3 DAMURHUDA
10 KALURGHAT INDUSTRIAL ESTATE
4 DARSANA
11 KHATUNGONJ
5 DINGIADAH
12 KURBANIGONJ
6 GOKULKHALI BAZAR
13 MOHAMMAD TAKIRHAT
Sl. NAME OF BRANCH
14 PUNCHLAISH
7 HATBOALIA
15 RAUZAN
8 JIBANNAGAR
16 CHATTOGRAM MEDICAL COLLEGE
9 MUNSHIGONJ
17 SIRAJUDDOWLA ROAD
10 SAROJGONJ
18 TERRI BAZAR
11 UTHALI
19 NA CHOWDHURY ROAD
12 AMJHUPI
20 FAKIRHAT BRANCH
13 GARADOB BAZAR
21 HATHAZARI
14 GANGNI
22 KALUMUNSHIRHAT
15 GANGNI THANA HEAD QUARTER
23 NANGOLMORA
16 JOREPUKURIA
24 FATIKCHARI
17 MEHERPUR
PRINCIPAL OFFICE: CHATTOGRAM SOUTH
18 MEHERPUR COURT BUILDING
1 B.I.D.C.STEEL PLANT
19 MUJIBNAGAR
2 BANUR BAZAR
20 Court Building
3 BHATIARY
REGIONAL OFFICE :GOPALGONJ
4 CDA MARKET
1 GOPALGONJ
5 CUSTOM HOUSE
2 BHATIAPARA
6 KALIBARI
3 BOLTALI
7 CDA RESIDENTIAL AREA
4 GHAGOIR
8 MAJIRGHAT
5 KASHIANI
9 MARIAMNAGAR
6 BANOGRAM BAZAR
10 MIRSARAI
7 D.C COMPLEX
11 NEW MARKET
8 MOKSEDPUR
12 NIZAMPUR
9 PANCHURIA
13 CUET
10 PATGATI
14 PAHARTALI MAIN ROAD
11 TONGIPARA
15 PORT BRANCH
12 BASBARIA BAZAR
16 RAILWAY BUILDING
REGIONAL OFFICE : RAJBARI
17 RANGUNIA
1 BAHARPUR
18 REAZUDDIN BAZAR
2 BALIAKANDI
Sl. NAME OF BRANCH
3 BELGACHI
19 ROAZARHAT
4 GOALUNDO
20 SADARGHAT
5 GOALUNDO UPOZILLA COMPLEX
21 SANDVIP
6 KASBA MAJAIL
22 SITAKUNDA
7 MACHPARA
23 CHATTOGRAM UREA FERTILIZER LTD.
8 PANGSHA
24 SHAH AMANAT (R:) INT. AIRPORT
9 PUNGSHA UPOZILLA COMPLEX
Annual Report 2020

YEAR OF EXCELLENCE
25 MIDAGALI REGIONAL OFFICE : BANDARBAN

26 HALISHAHAR HOUSING ESTATE 1 ALI KADAM
27 MARINE ACADEMY 2 BANDARBON
PRINCIPAL OFFICE : RANGAMATI 3 LAMA
1 BAGAICHARI 4 NAIKHANGCHARI
2 BANARUPA 5 ROWANGCHARI
3 BARAICHARI 6 RUMA
4 BARKAL 7 THANCHI
5 BELAICHARI GENERAL MANAGER’S OFFICE
COMILLA
6 CHANDRAGHONA
PRINCIPAL OFFICE : COMILLA
7 DIGHINALA
1 ADDA BAZAR
8 GHAGRA
2 BISE (COMILLA)
9 JURACHARI
3 BARURA
10 KAPTAI
4 BRAHMANPARA
11 KAWKHALI
5 BURICHONG
12 KHAGRACHARI
6 CHANDINA
13 LANGADU
7 CHOWDDAGRAM
14 LAXMICHARI
8 COMILLA CANTONMENT
15 MAHALCHARI
9 COURT BUILDING
16 MANIKCHARI
10 DAUDKANDI
17 MATIRANGA
11 DAULATGONJ
18 NANIARCHAR
12 DEBIDWAR
19 NEW COURT BUILDING
13 ELIOTGONJ
20 PANCHARI
14 GOURIPUR BAZAR
21 RAJASTHALI
15 HOMNA
22 RAMGARH
16 KONGSHANAGAR
23 RANGAMATI
17 KOTBARI
24 Guimara
18 MURADNAGAR
PRINCIPAL OFFICE : PATIYA
Sl. NAME OF BRANCH
1 ANOWARA
19 NANGALKOT
2 BANSHKHALI
20 NOYABAZAR
3 BOALKHALI
21 PAYALGACHA
4 CHANDANAISH
22 RAIPUR BAZAR
5 DOHAZARI
23 RAMMOHAN BAZAR
6 KALARPOLE
24 COMPANYGANJ BAZAR
7 KHAN BAHADUR BAZAR
25 SREEKAIL
8 LOHAGARA
26 STATION ROAD,COMILLA
9 MOULVI BAZAR
27 SUAGAZI
10 PATIYA
28 WAPDA BUILDING,COMILLA
Sl. NAME OF BRANCH
29 BHARASAR BAZAR
11 ROWSHANHAT
30 PARAMTALA
12 RUSTOMHAT
31 MEGNA BR.
13 SATKANIA
32 COMILLA SADAR DAKKHIN UPOZILA BR.
REGIONAL OFFICE : COX’S BAZAR
33 MONOHORGONJ BR.
1 BADARKHALI
34 TITAS
2 CHAKARIA
35 LALMAI UPOZILA
3 COX'S BAZAR
36 KHALILPUR BAZAR
4 DULAHAZARA
37 MIA BAZAR
5 KUTUBDIA
PRINCIPAL OFFICE: NOAKHALI
6 MOHESHKHALI
1 AMANULLAHPUR
7 RAMU
2 BASHURHAT
8 TEKNAF
3 CHAPRASHIRHAT
9 UKHIYA
4 CHAR BATA
10 EIDGHAH
5 SUBARNA CHAR
6 CHAR MATUA
7 CHATKHIL
382
8 CHAUDHURYHAT 17 SHAHRASTI
9 CHAUMUHANI 18 SHOLAGHAR
10 CHHAYANI BAZAR 19 WARUK
11 COLLEGE ROAD 20 SENGAR CHAR
12 DAYARAMDI PRINCIPAL OFFICE : B-BARIA
13 HATIYA 1 AKHAURA
14 KALAMUNSHI BAZAR 2 ASHUGONJ
15 KANKIRHAT 3 BANCHARAMPUR
16 KHALIFERHAT 4 BRAHMANBARIA
17 MAIJDEE BAZAR Sl. NAME OF BRANCH
18 MAIJDEE COURT 5 CHANDPUR BAZAR
19 PAURA BIPANI BITAN 6 ZIA SARKARKHANA
20 SAGORIA BAZAR 7 CHATALPAR BAZAR
21 SEBARHAT 8 FANDAUK
22 SENBAGH 9 GOKARNAGHAT
23 SHAHAPUR 10 HARINBAR BAZAR
24 SONAIMURI 11 KOSBA
25 SONAPUR OLD TOWN 12 KUTIBAZAR
26 TAMARUDDI 13 T.A. ROAD
27 ZAMINDARHAT 14 MEDDA
28 HATIYA THANA PARISAD 15 NABINAGAR
PRINCIPAL OFFICE : FENI 16 NASIRNAGAR
1 BAKTERMUNSHI 17 NEW MARKET
2 CHHAGOLNAIYA 18 RASULLABAD
3 DAGAN BHUIYAN 19 RUPASDI BAZAR
4 FENI 20 SARAIL
5 FULGAZI 21 SHYMAGRAM
6 GUTHUMA BAZAR 22 SINGERBIL
7 ISLAMPUR ROAD 23 MIRASHANI
8 LAMUA BAZAR 24 BIJOYNAGAR
9 LASHKER HAT REGIONAL OFFICE : LAXMIPUR
10 MAHIPAL 1 BHAWANIGANJ BAZAR
11 MATIAGODHA 2 CHANDRAGANJ
12 MUNSHIRHAT 3 CHAR ALEXANDER
13 PANCHGACHIA 4 CHAR LORENCE
14 PARSHURAM 5 CHAR SITA
15 SADAR UPAZILA COMPLEX 6 HAIDERGANJ
16 SILONIA BAZAR 7 HAJIR HAT
17 SONAGAZI 8 KANCHANPUR
PRINCIPAL OFFICE : CHANDPUR 9 LAXMIPUR
1 ALIGANJ 10 RAIPUR
2 CHANDPUR 11 RAKHALIA BAZAR
3 FARAJIKANDI 12 RAMGANJ
4 FARIDGANJ GENERAL MANAGER’S OFFICE
SYLHET
5 GAZIPUR
PRINCIPAL OFFICE : SYLHET
6 HAIMCHAR
1 AMJAD ALI ROAD
7 HAZIGANJ
2 BAIRAGIR BAZAR
8 KACHUA
3 BALAGONJ
9 KHILA BAZAR
4 BEANIBAZAR
10 NATUN BAZAR
5 BISWANATH
11 MOTLABGANJ
6 CHARKHAI
12 NABIPUR
7 COMPANYGANJ
13 KALIAPARA
8 COURT BUILDING
14 PURANBAZAR
9 DAKSHIN FENCHUGONJ
15 RAHIMANAGAR
Sl. NAME OF BRANCH
16 SACHAR BAZAR
10 DHAKA DAKSHIN
Annual Report 2020

YEAR OF EXCELLENCE
11 FENCHUGONJ SAR KARKHANA 11 TAHIRPUR

12 GOLAPGONJ 12 DAKKHAIN SUNAMGONJ
13 GOWAINGHAT PRINCIPAL OFFICE : HABIGONJ
14 JAINTAPUR 1 AJMIRIGANJ
15 JAKIGANJ 2 BAHUBAL
16 KAJAL HAOR 3 BANIYACHONG
17 KAMAL BAZAR 4 CHUNARUGHAT
18 KANAIGHAT 5 HABIGANJ
19 KHADIMNAGAR 6 KAKAILCHAO
20 MOHAJANPATTY 7 LAKHAI
21 OSMANI AIRPORT 8 MADHABPUR
22 FENCHUGONJ 9 NABIGANJ
23 PIRER BAZAR 10 SHAISTAGANJ
24 CITY CORP. 11 ENATGONJ
25 STATION ROAD 12 CHOWDHURY BAZAR
26 SYLHET CANTONMENT 13 AUSHKANDI
27 TAJPUR GENERAL MANAGER’S OFFICE
BARISAL
28 TIKARPARA
PRINCIPAL OFFICE : BARISAL
29 TILLAGARH
1 AGAILJHARA
30 SHAHJALAL UNIVERSITY OF SCIENCE & TEC
2 BAKERGONJ
31 TAMABIL LAND PORT
3 BANARIPARA
PRINCIPAL OFFICE : MOULVIBAZAR
4 BARISAL CADET COLLEGE
1 BARLEKHA
5 CHAKHAR
2 BHAIRABGONJ BAZAR
6 CHARAMUDDI
3 CHANDGRAM
7 CHOWK BAZAR
4 CHANDNIGHAT
8 COLLEGE ROAD
5 DIGHIRPAR BAZAR
9 DHAMURIA
6 FOREIGN EXCHANGE
10 GOILA
7 KADAMHATA
11 GOURNADI
8 KAMALGONJ
12 GUTHIA
9 KAMALPUR BAZAR
13 HALTABANDAR
10 KULAURA
14 HIZLA
11 COURT ROAD
15 JHALAKATI COURT BUILDING
12 MOULVIBAZAR
Sl. NAME OF BRANCH
13 MUNSHIBAZAR
16 KAMARKHALI
14 PHULARTAL BAZAR
17 KATHALIA
15 RAJNAGAR
18 KHANPURA
16 SARKER BAZAR
19 MEDAKUL
17 SATGAON
20 MEHENDIGONJ
18 SHAHBAZPUR
21 MULADI
19 SHAMSHERNAGAR
22 NACHAN MAHAL
20 SREEMONGAL
23 NALCHIRA
21 TARAPASHA BAZAR
24 NALCHITY
22 JURI BR.
25 NEAMATI BANDAR
REGIONAL OFFICE : SUNAMGONJ
26 RAJAPUR
1 BISWAMVARPUR
27 SAGARDI
2 CHHATAK
28 SHAHEBERHAT
3 DERAI
29 C & B ROAD
4 DHARMAPASHA
30 TORKEY BANDAR
5 DOWARA BAZAR
31 WAZIRPUR
6 JAGANNATHPUR
32 MOLLAR HAT
7 MADHYANAGAR
33 ARATDHAR PATTY
8 SACHNABAZAR
34 PAISARHAT
9 SULLAH
35 BARISAL UNIVERSITY
10 SUNAMGANJ
36 KAZIR HAT
384
PRINCIPAL OFFICE : PATUAKHALI 11 KHALISHPUR

1 AMTALI 12 KHULNA SHIPYARD
2 BAKULBARIA 13 KOYRA
3 BAMNA 14 PAIKGACHA
4 BARGUNA COURT BUILDING 15 PHULBARIGATE
5 BAUPHAL 16 PHULTALA
6 BETAGI 17 RUPSA MARKET
7 BOGA BANDAR 18 SHAHPUR
8 DASHMINA 19 SHIROMONI INDUSTRIAL AREA
9 GALACHIPA 20 TEROKHADA
10 KALAPARA BANDAR 21 SIR IQBAL ROAD
11 MOHIPUR PRINCIPAL OFFICE : JESSORE
12 MOUKARAN BAZAR 1 ALFA MILLGATE
13 NEW TOWN Sl. NAME OF BRANCH
14 PATHARGHATA 2 BAGANCHRA
15 PATUAKHALI 3 BAGHERPARA
16 SUBIDKHALI 4 BARINAGAR
17 ULANIA BAZAR 5 BASUNDIA
18 DUMKI 6 BENAPOLE
19 PAYRA BANDAR 7 BHATPARA
20 TALTOLI 8 CHARAVITA
REGIONAL OFFICE : BHOLA 9 CHINATOLA
1 BHOLA 10 SAGARDARI BAZAR
2 BORHANUDDIN 11 CHOWGACHA
3 CHARFASHION 12 CHURAMANKATI
4 DAULATKHAN 13 DHALGRAM
Sl. NAME OF BRANCH 14 GARIBSHAH SARAK
5 GAZARIA 15 JESSORE BAZAR
6 LALMOHAN 16 JESSORE CANTT.
7 MOHAJANPATTY 17 JHIKARGACHA
8 MONPURA 18 KARBALA ROAD
9 NORTH DIGHOLDI 19 KESOBPUR
10 TAJUMUDDIN 20 MONIRAMPUR
REGIONAL OFFICE : PIROJPUR 21 NARIKELBARIA
1 BHANDARIA 22 BISE
2 ZIANAGAR 23 NOAPARA
3 KOWKHALI 24 PAR BAZAR
4 MATHBARIA 25 PURAPARA
5 NAZIRPUR 26 R.N.ROAD
6 PARERHAT 27 RAIL GATE
7 PIROJPUR 28 RAJGONJ
8 SREERAMKATI 29 RUPDIA
9 SWARUPKATI 30 SALUA BAZAR
10 TUSHKHALI 31 SARSHA
GENERAL MANAGER’S OFFICE 32 TRIMOHONI
KHULNA
33 ULASHI
PRINCIPAL OFFICE : KHULNA
34 KHAZURA BAZAR
1 BANIAKHALI BAZAR
PRINCIPAL OFFICE : SATKHIRA
2 BATIAGHATA
1 ASSASUNI
3 BOYRA
2 BUDHATA
4 CHALNA BAZAR
3 DEBHATTA
5 CUSTOM HOUSE
4 GOYRAH BAZAR
6 DAULATPUR COLLEGE ROAD
5 KUMIRA BAZAR
7 DIGHOLIA
6 JHAUDANGA
8 DUMURIA
7 KALAROA
9 K.D.A.NEW MARKET
8 KALIGONJ
10 KAZDIA
Annual Report 2020

YEAR OF EXCELLENCE
9 KAMAN NAGAR 7 NARAIL

10 KHALISHKHALI BAZAR 8 PIROLI BAZAR
11 KULIA BAZAR 9 RUPGONJ
12 MAGURA BAZAR 10 TULARAMPUR
13 PARULIA 11 LOHAGARA BAZAR
Sl. NAME OF BRANCH GENERAL MANAGER’S OFFICE
RAJSHAHI
14 SATKHIRA
PRINCIPAL OFFICE : RAJSHAHI
15 SHYAMNAGAR
1 BAGHA
16 TALA
2 BHAWANIGONJ
17 BHOMRA BR. SATKHIRA
3 CHARGHAT
PRINCIPAL OFFICE : JHENAIDAH
4 DAKRA
1 BARO BAZAR
5 MOUGACHI BAZAR
2 BARODHOPADI BAZAR
6 DURGAPUR
3 BUNAGATI BAZAR
7 GODAGARI
4 GARAGONJ
8 GREATER ROAD
5 HARINAKUNDU
9 MOHANPUR
6 HATGOPALPUR
10 MONIGRAM
7 JHENAIDAH
11 MOTIHAR
8 JHENAIDAH CADET COLLEGE
12 PABA
9 KALIGONJ
13 POLICE ACADEMY
10 KOLABAZAR
14 PUTHIA (RAJSHAHI)
11 KOTCHANDPUR
15 RAJSHAHI CADET COLLEGE
12 LADIES BR.
16 RAJSHAHI COURT BUILDING
13 MAGURA
17 RAJSHAHI MEDICAL COLLEGE HOSPITAL
14 MOBARAKGONJ SUGAR MILL
18 SAPURA INDUSTRIAL ESTATE
15 MODHUPUR
19 TANORE
16 MOHAMMADPUR
20 RAJSHAHI RAILWAY COMPLEX
17 MOHESHPUR
21 KASBA TANGRAMARY
18 NUTAN BAZAR
22 MUNDUMALAHAT
19 RABINARIKELBARIA
PRINCIPAL OFFICE : NAOGAON
20 SAILKUPA
1 ABADPUKURHAT
21 SHALIKHA
2 ATRAI
22 SHEIKHPARA BAZAR
3 BADALGACHI
23 SREEPUR
4 BHANDERPUR
REGIONAL OFFICE : BAGERHAT
5 BHAWANIPUR BAZAR
1 BAGERHAT
6 DHAMOIRHAT
2 CHITALMARI BAZAR
7 K. D. MORE
3 FAKIRHAT
Sl. NAME OF BRANCH
4 GILATALA
8 MANDA
5 GOURAMBHA BAZAR
9 MOHADEVPUR
6 KACHUA
10 MOHISHBATHAN
7 MAIN ROAD
11 MONGALBARIHAT
8 MOLLAHAT
12 NAOGAON
9 MONGLA
13 NIAMATPUR
10 MORELGONJ
14 PATNITALA
11 RAMPAL
15 PORSHA
12 RAYENDA BAZAR
16 RANINAGAR
13 MONGLA PORT
17 SAPAHAR
14 COURT BUILDING
18 T.T.D.C.
REGIONAL OFFICE : NARAIL
19 TRIMOHONI
1 CHACHURI BAZAR
PRINCIPAL OFFICE : PABNA
2 GOBRA
1 ARAMBARIA
3 KALIA
2 ATGHORIA
4 ZILA PARISHAD
3 BAGHOIL
5 LAXMIPASHA
4 BANWARINAGAR
6 MOHAJAN BAZAR
5 BERA
386
6 BHANGOORA BAZAR 20 NANDIGRAM

7 CHATMOHAR 21 NASHARATPUR
8 DASURIA 22 RANABAGHA BAZAR
9 EKDANTA 23 SANTAHAR
10 GOPALPUR (Z.B.) 24 SHARIAKANDI
11 ISHURDI 25 SHERPUR
12 JORGACHA 26 SHERPUR ROAD
13 PABNA TRADE CENTRE 27 SHIBGONJ
14 PABNA 28 SONATALA
15 SANTHIA 29 TALORA
16 SUZANAGAR 30 SHAHAR PUKUR
17 ANANTA BAZAR 31 SHAHID ZIAUR RAHMAN MEDICAL COLLEGE
18 KARANJA BAZAR PRINCIPAL OFFICE : NATORE
PRINCIPAL OFFICE : SIRAJGONJ 1 AHMEDPUR
1 BAGHABARIGHAT 2 BAGATIPARA
2 CHANDAIKONA 3 BARAIGRAM
3 CHOWBARI Sl. NAME OF BRANCH
4 DHANGARA 4 CHANCHKOIR
5 ENAYETPUR 5 DAYARAMPUR
6 JAMTOIL 6 GURUDASHPUR
7 KAZIPUR 7 OLD BUS STAND
8 KHASH KAWLIA 8 LALPUR
9 LAHIRI MOHANPUR 9 NATORE
10 NAOGAON BAZAR 10 NATORE STATION BAZAR
11 QUAMI JUTE MILLS 11 FULBAGAN
12 SHAHZADPUR 12 SINGRA
Sl. NAME OF BRANCH 13 NOLDHANGA HAAT
13 SHOHAGPUR REGIONAL OFFICE : JOYPURHAT
14 SIRAJGANJ 1 AKKELPUR
15 SONAMUKHI 2 HATIL
16 TARASH 3 JOYPURHAT
17 ULLAPARA 4 JOYPURHAT EAST
18 SIRAJGANJ COURT BHABAN 5 KALAI
19 HATIKUMRUL 6 KHETLAL
20 NATUAR PARA 7 PANCHBIBI
21 SADANANDAPUR 8 PUNATHAT
PRINCIPAL OFFICE : BOGRA REGIONAL OFFICE : CHAPAINAWABGONJ
1 ADAMDIGHI 1 BHOLAHAT
2 AZIZUL HOQUE COLLEGE 2 CHAPAINAWABGONJ
3 B.P.U.A 3 GOMASTAPUR
4 BALUAHAT 4 NEW MARKET
5 BOGRA BAZAR 5 NACHOLE
6 BOGRA CANTONMENT 6 ROHANPUR
7 COLLEGE ROAD 7 SHIBGONJ
8 DHUNAT 8 SONA MASJID
9 DUPCHANCHIA GENERAL MANAGER’S OFFICE
RANGPUR
10 DURGAPUR
PRINCIPAL OFFICE : RANGPUR
11 GABTALI
1 BADARGONJ
12 GANG NAGAR
2 CHATRAHAT
13 GOHAIL ROAD
3 DHAP
14 GOHAILHAT
4 GANGACHARA
15 GUZIA
5 HARAGACHA
16 HARIKHALIHAT
6 MAHIGONJ
17 JAMURHAT
7 JAIGIRHAT
18 KAHALOO
8 KACHARIBAZAR
19 NAMUZAHAT
9 KAWNIA
Annual Report 2020

YEAR OF EXCELLENCE
10 KHALASHPIR 11 HAKIMPUR
11 RANGPUR BAZAR 12 JOYNANDAHAT
12 LALDIGHIHAT 13 KACHINIAHAT
Sl. NAME OF BRANCH 14 KAHAROLE
13 MIRBAGH 15 KHANSAMA
14 MITHAPUKUR 16 MILL ROAD
15 PIRGACHA 17 NAWABGONJ
16 PIRGONJ 18 OSMANPUR
17 RANGPUR CANTONMENT 19 PAKERHAT
18 TARAGANJ 20 PARBATIPUR
PRINCIPAL OFFICE : KURIGRAM 21 HUGLI PARA .
1 ADITHMARI 22 PHULBARI
2 BARABARIHAT 23 PULHAT BRANCH
3 BHURUNGAMARI 24 RANIGONJ BAZAR
4 CHILMARI 25 SETABGONJ
5 FULBARI 26 SHEIKHPURA
6 HATIBANDHA 27 STATION ROAD
7 KALIGANJ 28 SUIHARI
8 KURIGRAM 29 MADDHAPARA KATHIN SHILA PRAKALPA
9 LALMONIRHAT 30 BARA PUKURIA KOYLAKHANI PRAKALPA
10 MOHISH KHOCHA 31 SHAHID MAHBUB SENANIBASH SHAKHA
11 NAGESWARI PRINCIPAL OFFICE : THAKURGAON
12 PATGRAM 1 AKHANAGAR
13 RAJARHAT 2 ATWARI
14 ULIPUR 3 BALIADANGI
15 BURIMARI Sl. NAME OF BRANCH
16 KAKINA BAZAR 4 BHAJANPUR
17 SONAHAT LANDPORT 5 BODA
PRINCIPAL OFFICE : GAIBANDHA 6 CHOWDHURYHAT
1 BHARATKHALI 7 DEBIGONJ
2 BIRATHAT 8 GOREYAHAT
3 BONARPARA 9 HARIPUR
4 FASHITOLA 10 KHOCHABARIHAT
5 FULCHARI 11 NEEKMARAD
6 GAIBANDHA 12 PANCHAGARH
7 GOBINDAGONJ 13 PIRGONJ
8 KAMARJANI 14 RANISANKAIL
9 KAMDIA 15 RUHIA
10 D. B. ROAD 16 SHIBGONJ
11 MOHIMAGONJ 17 TETULIA
12 PALASHBARI 18 THAKURGAON
13 PURANBAZAR 19 THAKURGAON SUGAR MILLS
14 SADULLAPUR 20 ZABARHAT
15 SHAGHATA 21 SHABDAL HAT
16 SUNDARGONJ 22 BANGLABANDHA LANDPORT
PRINCIPAL OFFICE : DINAJPUR REGIONAL OFFICE : NILPHAMARI
1 AFTABGONJ 1 BHABANIGONJ
2 BHAWANIPUR BAZAR 2 CHILAHATI
Sl. NAME OF BRANCH 3 DIMLA
3 BINNA KURI 4 DOMAR
4 BIRAMPUR 5 JALDHAKA
5 BIRGONJ 6 KISHOREGONJ
6 BIROL 7 MIRGONJ
7 CHIRIR BANDAR 8 NILPHAMARI
8 COURT BUILDING 9 SAIDPUR
9 FARAKKABAD 10 SAIDPUR CANTONMENT
10 GHORAGHAT
388
AUTHORISED DEALER BRANCHES

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 --
Annual Report 2020

YEAR OF FIRM COMMITMENT
YEAR OF EXCELLENCE
GLOBAL REMITTANCE
NETWORK OF SBL
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
390
378 SONALI BANK LIMITED

ADDITIONAL
INFORMATION
1
1
1
3 3
1 1
11
22
1 1
8 8 11
11
4 4 11
1 1 3 3
14 14 11
8 8
2 27 7 11
33
11
4
4
1
1 2
2
1
1
Annual Report 2020
Annual Report 2019 379

YEAR OF EXCELLENCE
SONALI BANK LIMITED

OVERSEAS BRANCHES
Siliguri Branch, India Siliguri Branch, India
Wachel Molla Mansion (1st Floor), 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 : [email protected].
Email: [email protected]. [email protected]
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: [email protected] Fax: 00966-2-6336480
Fax: 009661-4196909/4193555 E-mail : sbr¬[email protected]
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:[email protected]
392
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: [email protected] E-mail: [email protected]
[email protected]
Birmingham Branch
380, Coventry Road
Small Heath
Birmingham, B10 0UF, UK
Tel: 00-44-(0)20-7877-8200
00-44-(0)121-772-7240
Fax: 00-44-(0)121-772-8823
E-mail:[email protected]
Annual Report 2020

YEAR OF EXCELLENCE
SONALI EXCHANGE COMPANY
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
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
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)
394
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: [email protected] E-mail : [email protected]
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: [email protected] Email : [email protected]
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: [email protected]
Annual Report 2020

YEAR OF EXCELLENCE
LIST OF ACRONYMS
AD Authorized Dealer ICandCD Internal Control and Compliance Division
ADB Asian Development Bank ICAB The Institute of Chartered Accountants of Bangladesh
ADP Annual Development Program ICMAB The Institute of Cost and Management Accountants
ADR Alternative Dispute Resolution of Bangladesh
AGM Annual General Meeting ICT Information and Communication Technology
ALCO Asset Liability Committee IMF International Monetary Fund
ALM Asset Liability Management IT Information Technology
AML Anti Money Laundering KSA Kingdom of Saudi Arabia
AMLC Anti Money Laundering Committee KYC Know Your Customer
ATA Anti- Terrorism Act LDR Loan Deposit Ratio
ATM Automated Teller Machine MANCOM Management Committee
BACH Bangladesh Automated Clearing House MBID Merchant Banking and Investment Division
BACPS Bangladesh Automated Cheque Processing MCR Minimum Capital Requirement
System MCO Maximun Cumulative Outflow
BAMLCO Branch Anti Money Laundering Compliance MDGs Millennium Development Goals
Officer MICR Magnetic Ink Character Recognition
BAS Bangladesh Accounting Standards MLPA Money Laundering Prevention Act
BB Bangladesh Bank MSME Micro, Small and Medium Enterprise
BBTA Bangladesh Bank Training Academy MTMF Medium Term Macro Economic Framework
TK. Bangladesh Tk. MVA Market Value Added
BEFTN Bangladesh Electronic Fund Transfer Network NAV Net Asset Value
BFIU Bangladesh Financial Intelligence Unit NCBs Nationalised Commercial Banks
BFRS Bangladesh Financial Reporting Standards NGO Non Government Organization
BIBM Bangladesh Institute of Bank Management NII Net Interest Income
BRDB Bangladesh Rural Development Board NPL Non Performing Loan
BRPD Banking Regulation and Policy Department NRB Non Resident Bangladeshi
BSA Bangladesh Standards on Auditing OBU Off-Shore Banking Unit
BSEC Bangladesh Securities and Exchange Commission OMIS Overview Management Information System
CAMELS Capital Adequacy, Asset Quality, Management, PC Packing Credit
PEPs Politically Exposed Persons
Earnings, Liquidity and Sensitivity to Market Risk
PMIS Personal Management Information System
CAMLCO Chief Anti Money Laundering Compliance Officer
POS Point of Sales
CAR Capital Adequacy Ratio
PRSP Poverty Reduction Strategy Paper
CBS Core Banking Software
RBCA Risk Based Capital Adequacy
CDBL Central Depository Bangladesh Limited
RBIA Risk Based Internal Audit
CDC Central Data Centre
REPO Repurchase Agreement
CDMS Core Deposit Monitoring System RMD Risk Management Division
CEO Chief Executive Officer RMS Remmittance Management System
CFO Chief Financial Officer RMU Risk Management Unit
CFT Combating Financing of Terrorism ROA Return on Asset
CIB Credit Information Bureau ROE Return on Equity
CRG Credit Risk Grading ROI Return on Investment
CRM Credit Risk Management RWA Risk Weighted Assets
CRR Cash Reserve Requirement SAFA South Asian Federation of Accountants
CSR Corporate Social Responsibility SBCS Sonali Bank Clearing System
CTR Cash Transaction Report SBL Sonali Bank Limited
DCFCL Departmental Control Function Check List SBSC Sonali Bank Staff College
DRS Disaster Recovery System SBTI Sonali Bank Training Institute
DSE Dhaka Stock Exchange Limited SCB State-owned Commercial Bank
EAS Early Alert System SECI Sonali Exchange Company Incorporated
EDF Export Development Fund SIL Sonali Investment Limited
EEF Equity Entrepreneurship Fund SLR Statutory Liquidity Ratio
EFT Electronic Fund Transfer SMA Special Mention Account
EGBMP Enterprize Growth Bank Modernization Project SMEs Small and Medium Enterprises
EPS Earning Per Share SOE State Owned Enterprise
ERM Environmental Risk management SREP Supervisory Review Evaluation Process
ERQ Exporter’s Retention Quota SRP Supervisory Review Process
ETPs Effluent Treatment Plants STR Suspicious Transaction Report
FBP Foreign Bills Purchased SWIFT Society for Worldwide Interbank Financial
FDI Foreign Direct Investment Telecommunication
FY Financial Year (July-June) TOR Terms of Reference
GAAP Generally Accepted Accounting Principles TP Transaction Profile
GDP Gross Domestic Product UAE United Arab Emirates
GNI Gross National Income UCCA Upazila Central Co-operative Association
GOB Government of Bangladesh UK United Kingdom
GTS Government Transaction System UN United Nations
HRDD Human Resources Development Division USA United States of America
IAS International Accounting Standard VAT Value Added Tax
IBP Inland Bills Purchased WDV Written Down Value
WEO World Economic Outlook
WTO World Trade Organization
396
STANDARD
DISCLOSURE INDEX
Disclosure checklist to the key sections of the Annual Report 2020
ITEM PAGE NO.
Corporate objectives, values and structure
Vision and mission 10-11
Overall strategic objectives 14
Core values and code of conduct/ethical principles 12-13
Profile of the company 16-18
Director's profiles and their representation on Board of other companies and
24-43,127-128
organization chart
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 4-5,49-57,53-56,58-90
Description of the performance of the various activities / products / segments 49-56,58-90,128-143
of the company and group companies during the period under review 173-188,190-203
A brief summary of the business and other risks facing the organization and
75-76,122-123,146-171,195
steps taken to effectively manage such risks
A general review of the future prospects/ outlook 15,178-179
Information on how the company contributed to its responsibilities towards the
54,86,173-179
staff (including Health and safety)
Information on company's contribution to the national exchequer and to the
64,70-75,88,180-181,186-188
economy
Sustainability Reporting
Social Responsibility Initiatives (CSR) 80,186-187
Environment related Initiatives 173-175
Environmental & Social Obligations 68,186,188,193
Integrated Reporting 173-188
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
224-248
Impairment of assets
Changes in accounting policies/changes in accounting estimates
Accounting policy on subsidiaries 331-348,363-376
Segment information 136-138
Comprehensive segment related information bifurcating segment revenue,
136-139,238,267-273
segment results and segment capital employed
Information regarding different segments and units of entity as well as non
19,26-27,58-90,129-143,154-171,238
segmental entities/units
Segment analysis of
Segment revenue
Segment results
Turnover 130-132,138,211-223
Operating profit
Carrying amount of net segment assets
Annual Report 2020

YEAR OF EXCELLENCE
ITEM PAGE NO.

Financial statements
Disclosure of all contingencies and commitments 212, 218, 237, 297-198
Comprehensive related party disclosure 314-316
Disclosures of remuneration and facilities provided to the Directors and CEO &
95-99, 102,305
Managing Director
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
Statement of cash flow 211-376
Consolidated financial statement

Extent of compliance with the core IAS/ IFRS or equivalent national standards
Disclosures/ contents of notes to accounts
Information about corporate governance
Board of Directors, Chairman and CEO and Managing Director 28-43, 92-104
Audit committee (composition, role, meetings, attendance etc.), internal control
96-97, 98-99, 119-123
and risk management
Ethics and compliance 13, 102, 106-116
Remuneration and other committees of Board 95-99
Human capital 102, 176-179
Communication to shareholders and stakeholders 102, 126
Information available on website www,sonalibank.com.bd
Other information 16-18
Management review and responsibility 103,190-195
Disclosure by Board of Directors or Audit Committee on evaluation of quarterly
97-98,119-121
reports
Any other investor friendly information 124-126
Description of Risk Management Framework

Risk Mitigation Methodology 75-76,122-123,146-171
Disclosure of Risk Reporting
Stakeholders information
Distribution of shareholding (number of shares as well as category wise e.g.
promoter group etc.) 124-128
Shares held by Directors/executives and relatives of Directors/executives
Redressal of investors complaints 126
Graphical/ pictorial data
Earnings per share
Net assets
Stock performance 130-132
Shareholders' funds
Return on shareholders' fund
398
ITEM PAGE NO.

Horizontal/ vertical analysis including: operating performance (income statement)
Total revenue
Operating profit
Profit before tax 136
Profit after tax
EPS
Statement of financial position (balance sheet)
Shareholders fund
Property plant and equipment
129, 136
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
129-135, 138
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
140-142
Retained by the entity
Market share information of company's product/ services
Economic value added
Presentation of financial statements
Layout of contents 6-7
Theme on the cover page 1
28-29,31-45,70-71,80,119,122,
Use of photographs
126,177-178
Use of charts and graphs 76-81,85,130-132,136-141,

155-156,160-162
Approval of financial statements and holding AGM
Date of approval of financial statements by BoD: 30.06.2021 218
Date of 14th Annual General Meeting (23.08.2021) 9
Additional disclosures
Report on sustainable banking 173-175
Human resource accounting 176-179
Report on financial inclusion 180-181
Customer care 182-185
Corporate Social Responsibility (CSR) 186-187
Annual Report 2020

YEAR OF EXCELLENCE
ITEM PAGE NO.

Government transactions and works related to social responsibility 187
Contribution to national economy 188
Awards and recognitions 196-197
Specific areas for banking sector
Disclosure of ratings given by various rating agencies for instruments issued
251-259
by / of bank e.g. FD, CD, tier 1 perpetual bonds
Details of advances portfolio classification wise as per the direction issued by
158-162,260-273
the central bank of the respective countries
Disclosure for non performing assets
Movement of NPA
Sector wise breakup of NPA 270-273,289-290
Movement of provisions made against NPA

Details of accounts restructured as per regulatory guidelines 266
Maturity pattern of key assets and liabilities (ALM) 223,249-259,273-289
Classification and valuation of investments as per regulatory guidelines /
230-233,256-269,317-318,325-329
accounting 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
129,133-135
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 260-273
The break-up of 'provisions and contingencies' included in profit and loss
297-298,308-309
account
Disclosure under regulatory guidelines 106-116,154-171,249-250,292-296
Details of non-statutory investment portfolio 231-248
Disclosure in respect of assets given on operating and finance lease 260-261
Disclosures for derivative investments 249,256-259
Bank's network: List of branches 377-395
400
BRANCH NETWORK
WITH BANGLADESH MAP
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-2 108
03 Mymensing 108
04 Sylhet 108
05 Comilla 108
Indicates District Total Number of Branches
06 Chittagong 108 Indicates GM Headed Branch (3 in Dhaka City)
07 Barisal 108
08 Khulna 108
1. Local Office
09 Dhaka-1 108 2. Bangabandhu Avenue Corp.
10 Dhaka-1 108 3. Ramna Corp.
11 Dhaka-1 108
TOTAL 1226
Annual Report 2020

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www.ampersand.com.bd
35-42,44 Motijheel Commercial Area, Dhaka-1000, Bangladesh

PABX :9550426-31, 33, 34, Fax: 88-02-9561410, 88-02-9552007
E-mail: [email protected], SWIFT: BSONBDDH

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YEAR OF

2020 2019 2020 2019

2020 2019 2020 2019

2020 2019 2020 2019

Validity of Surveillance Rating

2020 2019 2020 2019

2020 2019 2020 2019

2020 2019 2020 2019

Upto November 2021 Upto June 2020

10 Corporate Vision and Mission

12 Core Values Corporate

15 Statement of Forward Looking Approach 92 Corporate Governance

16 Corporate Profile 105 Certificate with Compliance Report on CG

19 Group Corporate Structure Compliance Report with BSEC Notification on

Board of Directors and STAKEHOLDERS

139 Segment wise Presentation 196 Awards and Recognition

142 Market Value Added Statement 201 Media Highlights 2020

143 Financial Calendar 2020 and 2021 202 Photo Gallery

144 Credit Rating

Auditors’ Report and

146 Report on Core Risk Management

363 Sonali Exchange Co. Inc (SECI)

188 Contribution to National Economy

397 Standard Disclosure Index

401 SBL Branch Network

Sub: Annual Report for the year ended 31 December, 2020.

(Md. Ataur Rahman Prodhan)

CEO & Managing Director

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