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Transcript of Annual_Report_2020.pdf - Sonali Bank
YEAR OFEXCELLENCE
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
2020
3,234
20201,258,786
20201,591,234
202021,527
2020586,233
2020
629,691
2019
2,710
2019
1,158,788
2019 1,472,601
2019
17,100
2019
551,026
2019
500,387
+ 524 + 4,427
+ 99,998
+ 118,633
+ 35,207
+ 129,304
(Figure in Tk. Million except stated otherwise)
Net Profit
Deposit
Total Assets
Operating Profit
Loans & Advances
Total Investment
CREDITRATING
STATIC
Validity of Surveillance Rating
As Government Supported Bank
Without Govt. Supported Bank
Outlook
-4,320
+ 1.16%
+ 0.29%
-1.95%
+ 0.01%
+ 1.15%
2020
107,674
20207.14%
2020
4.21%
202018.37%
20200.21%
20207.13%
2019
111,994
2019
5.98%
2019 3.92%
2019
20.32%
2019
0.20%
2019
5.98%
Classified Loan
Earning Per Share
Return on Equity (ROE)
Rate of Classified Loans
Return on Asset (ROA)
Return on Investment (ROI)
Upto November 2021 Upto June 2020Long Term Short Term Long Term Short Term
AAA ST-1 AAA ST-1
A ST-2 A ST-2
Stable Stable
ORGANIZATIONAL INFORMATION
08 Letter of Transmittal
09 Notice of the 14th Annual General Meeting
10 Corporate Vision and Mission
12 Core Values
13 Ethical Principles
14 Strategic Objectives of SBL
15 Statement of Forward Looking Approach
16 Corporate Profile
19 Group Corporate Structure
20 Corporate Organogram
22 Milestones
24 List of Chairman
25 List of Managing Directors & CEOs of SBL
26 SBL at a Glance
Board of Directors and Management profile
28 Board of Directors & its committees
34 Directors’ Profile
44 Management Team
Chairman and Managing Director’s Message
48 Message from the Chairman
52 CEO & Managing Directors’ Message
Corporate Governance
58 Directors’ Report
92 Corporate Governance
105 Certificate with Compliance Report on CG
106Compliance Report with BSEC Notification on CG
117 CEO and CFO’s Declaration to the Board
118 Directors’ Responsibility for FR and IC
119 Report of the Audit Committee
122Note from the Chairman of Risk Management
Committee
STAKEHOLDERS INFORMATION
124 Stakeholders and Shareholders Information
126 Redressing to Shareholders’ Observations
129 Comparative Financial Highlights of SBL
TABLE OFCONTENTS
130 Graphical Presentations
133 Key Financial Data and Ratios of SBL
138Profitability, Dividend, Performance and
Liquidity Ratio
139 Segment wise Presentation
140 Statement of Value Addition and its Distribution
142 Market Value Added Statement
143 Financial Calendar 2020 and 2021
144 Credit Rating
RISK MANAGEMENT AND CONTROL ENVIRONMENT
146 Report on Core Risk Management
154 BASEL-III Compliance Report
154 Market Disclosures under Piller-III
Sustainability Analysis and Integrated Reporting
173 Report on Sustainable Banking
176 Report on Human Resources
180 Report on Financial Inclusion
182 Customer Care
185 Citizen Charter
186 Report on Corporate Social Responsibility
187Government Transactions and Works Related to
Social Responsibility
188 Contribution to National Economy
MANAGEMENT REVIEWAND OTHER INFORMATION
190 Management Discussion and Analysis
196 Awards and Recognition
198 Products and Services of SBL
201 Media Highlights 2020
202 Photo Gallery
Auditors’ Report and Financial Statements
211 Consolidated Financial Statements-SBL
217 Financial Statements-SBL(Solo)
331 Financial Statements- Sonali Investment Ltd.
360 Financial Statements- Islamic Banking Window
363 Sonali Exchange Co. Inc (SECI)
ADDITIONAL INFORMATION
377 Domestic Branches of SBL
390 SBL Remittance Network with World Map
392 Overseas Branches of SBL
392 Representative Branches of SBL
393 Branches of Sonali Bank (UK) Ltd.
394 Branches of SECI, USA
396 List of Acronyms
397 Standard Disclosure Index
401 SBL Branch Network
8
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
Annual Report 2020
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10
YEAR OF EXCELLENCE
OUR VISION
Socially committed leading banking institution with global presence.
Annual Report 2020
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.
12
YEAR OF EXCELLENCE
CORE VALUESThe 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:
ETHICS
Everyone must ensure adherence to ethical practices of banking.
OBJECTIVITY
All persons will have definite objective in carrying out their tasks.
INTEGRITY
Protection and safeguard of national and customer’s interest are vital elements for societal trust.
EXCELLENCE
Excellent performance and effectiveness are pre-conditions to ensure quality service to the large customer base of the Bank.
COMMITMENT
Every employee is committed to work upto the expected level to ensure satisfaction of valued customers.
ACCOUNTABILITY
All employees are responssible for their activities and will remain accountable to their respective superior for accomplishment of tasks.
TRANSPARENCY
Information to be kept open for all so athat stakeholders can have proper ideas about the activities of the Bank.
TEAM WORK
Open communication, discussion and interaction amongst the employees would ensure unification of acitons and efforts towards achiving the common goal(s).
SELF RELIANCE
Each employee will have ownership attitude towards the Bank and self confidence in his work for the betterment of the Bank.
INNOVATION
New and innovative products are the needs of the time which continuous aciton oriented researches are being carried out.
ORGANIZATIONAL INFORMATION
Annual Report 2020
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 investments and savings by playing an intermediary role between the parties in society that supply funds and demand funds respectively, also aims the principles of profitability and productivity stipulates the requirement that they have to work in accordance with the Ethical Principles in the professional and organizational fields.
Setting off from the expansion of the banking system, the improvement of the quality of banking services, the optimal
use of sources, the prevention of the unjustified competition
among the banks, provide services to the customers with
uncompromising integrity, protect privacy and confidentiality
of customer information, prevent money laundering and
fraudulent activities, demonstrate work place respect, banks
are to regulate their relations not only among themselves
but also with the other stake holders and employees in
concordance with the Ethical Principles.
14
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 :
Improving corporate governance through strengthening good corporate culture, motivation, training and supervision in all levels of management.
Greater emphasize to serve potential and unbanked population of the country through providing banking services to under-served areas with the scaling up of various pilot initiatives.
Developing Human Resource Management System to motivate and retain the human resources and transform human resources to human capital through proper training in every aspects of working area.
Gaining competitive advantages by lowering overall cost compared to that of competitors.
by sector, size, economic purpose and geographical location and expand need based retail and SME/Microfinance/Women entrepreneur financing
Retaining our top leadership position by providing quality customer services.
Cost control optimization at all levels of operation by ensuring budgetary control and maximizing revenue through quality services and product diversification.
Investing in the thrust and priority sectors of the economy.
Developing sound and effective risk management culture within the Bank to safe guard the banking assets and protect the interest of the dipositors and other stake holders.
Being excellent in serving the cause of least developed community and areas.
Ensuring strong internal control and compliance culture through establishing strong control environment and sound compliance within the Bank.
Providing impeccable and progressively better customer services through introducing changed technologies.
Ensure dedicated service to the government as an exchequer and government transactions (government receipts and payments) in order to achieve expected economic growth.
Improving of deposit mix by maintaining share of low cost and no cost deposit in total deposit as well funded business.
ORGANIZATIONAL INFORMATION
Annual Report 2020
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 Engagement of talented employees.z Exclusive human resource development
efforts.z Exclusive business re-engineering.z Customer service improvement.z Efficient internal control system.z Improvement of internal work environment.z Establishment of risk based management
system.z Adequate internally generated capital.
As any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. The company’s actual results may vary materially from those expressed or implied in its forward-looking statements. Important factors that could cause the Bank’s actual results to differ materially from those in its forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors:
z Changes in the monetary and fiscal policies of the Government, including policies of the Department of the Treasury and Bangladesh Bank.
z Changes in interest rates, which may affect net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities.
z Changes in capital management policies of the Bank including use of derivatives to mitigate our interest rate exposure.
z Changes in corporate tax structure along with legislation and regulation of VAT on banking services.
z Changes in CRR and SLR of the banks as well as increase of provision requirements resulting reduction of ROA and ROE
z Fluctuation in international prices of essentials which influences the oscillation in foreign exchange market.
z Compliance issues raised by the International Forums which are likely to affect the export growth in the industrial sectors.
z Changes in the demand for deposit, loan, and investment products and other financial services in the markets we serve.
z The outcome of pending or threatened litigation, or of other matters before regulatory agencies, whether currently existing or commencing in the future.
z Environmental conditions that exist or may exist on properties owned by, leased by, or mortgaged to the Company.
z Changes in accounting principles, policies, practices and guidelines in line with IFRS and BB requirements.
z Changes in credit ratings or in our ability to access the capital markets along with other economic, competitive, governmental, regulatory, technological, and geopolitical factors affecting our operations, pricing and services.
z Priority of government and the regulator.z Status of ICT inclusion.z Inclusion of new generation human resources.z The changed banking requirements of the
customer.z Peer Bank’s forward movements.
16
YEAR OF EXCELLENCE
CORPORATE PROFILEName 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
ORGANIZATIONAL INFORMATION
Annual Report 2020
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 1000Phone: 88-02-9568777, PABX: 9556940, 7170001 Ext.101E-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 Support
Long-term: AAA, Short-term: ST-1
Surveillance Rating without Government Support
Long-term: A, Short-term: ST-2
Phone PABX +88-02-9550426-31, 33, 34, +88-02-9552924
Fax 88-02-9561410, 88-02-9552007
SWIFT Code BSONBDDH
Email [email protected]@[email protected]@bdmail.com
Website www.sonalibank.com.bd
18
YEAR OF EXCELLENCE
LEGAL ADVISORS OF SBL
01 Begum Hosne Ara BegumHaque Law Chamber (2nd floor),Jiban Bima Bhaban,121, Motijheel C/A, Dhaka.Mob: 01711522775
02 Mr. Khaled Bin ShahriarSuit no: 906 (9th floor),H.M.Siddiqui Mension, 55/A,Purana Paltan, Ramna, Dhaka.Phone: 02-9574376
03 Mohammad Shafiqul IslamRoom no:105 (Anex Extension Bhaban),Supreme Court Lawyers Association, Dhaka.Mob: 01711583269
04 Mr. Fayez AhmedRoom no: 227, Supreme Court Bar Bhaban,Dhaka-1000.Mob: 01711440304
05 Md. RokonuzzamanSuit no: 404 (3rd floor), Ibrahim Mension,11, Purana Paltan, Dhaka.Mob: 01715330077
AUDITOR OF SBL
ACNABINChartered AccountantsBDBL 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.Chartered AccountantsIbrahim Mansion (1st Floor), Room No. 207, 11, Purana Paltan, Dhaka-1000.Telephone: 88 02 7124898E-Mail: [email protected]
CREDIT RATING COMPANY OF SBL
Credit Rating Information and Services Limited(CRISL)Nakshi Homes (1st, 4th & 5th Floor)6/1/A, SegunbagichaDhaka -1000.
LAW CONSULTANT
Md. Barekuzzaman
ORGANIZATIONAL INFORMATION
Annual Report 2020
Sonali Bank Limited
LocalSonali Investment
Limited (SIL)
LocalSonali Polaries
FT Limited
StatusName of the
CompanyDate of
EstablishmentPaid-up Capital
No. of Branches
Prime Activities
Subsidiaries
Sonali Investment Limited
22 April, 2010BDT 2000.00 million
05
Merchant banking, portfolio management, issue management, capital market transactions
Sonali Exchenge Co. Inc. (SECI), USA
12 December, 1994
USD 950,000.00
10Remittance business,undertake and participate in all transactions
Associates
Sonali Polaris FT Limited
01 February, 2012
BDT 75.00 million
-Customize, enhance, modify and implement Intellect CBS 10.0 Software
Sonali Bank (UK) Limited
07 December, 2001
GBP 25.00 million
02 All types of banking activities
SUBSIDIARIES ASSOCIATES
OverseasSonali Exchange Co.
Inc. (SECI) USA
OverseasSonali Bank (UK) Limited
GROUP CORPORATE STRUCTURE
20
YEAR OF EXCELLENCE
Your Trusted Partner in Innovative Banking
Corporate Organogram
SBL O�ces/Branches:
:
:
:
::::
1GM Headed Corporate Br. 2DGM Headed Corporate Br. 24AGM Headed Corporate Br. 5
Local O�ice Br.
Principal O�ce (PO) 46
Regional O�ce (RO) 16
Head O�ce Divisions 47
GM O�ce (GMO) 11
::::::
::
Sonali Investment Limited 1SECI, USA 1
SO Headed Br. 218
AGM Headed Br.
Foreign Br. 2
Total Branches 1,226
59SPO Headed Br. 375PO Headed Br. 543
::
::::: 372
SPO & 1 274
GM & eq. 30
3
DGM & eq.
Sonali Bank Ltd. Manpower:CEO & MD 1DMD 5
146AGM & eq.
Sonali Bank (UK) Limited 1SBL, Representative O�ices
:::::
O�cer & eq. 12,937Total Manpower 22,904
SPO & eq. 1,274PO & eq. 2,793SO & eq. 5,346
Executive CommitteeAudit CommitteeRisk Management Committee
Board of DirectorsChairman, Directors
CEO & Managing Director
GM & Company Secretary
COMPANY AFFAIRS AND
BOARD DIVISION (CABD)
CEO & MANAGING
DIRECTOR'S
SECRETARIAT
Chief Information Technology
O�icer (CITO)
GM GMPrincipal (GM)
TRAINING DIVISION (TD)
GM,Local O�ice
GM,Recovery-LO
Chief Audit
O�icer (CAO)
GMGM
GMChief
Financial
O�icer (CFO)
GMGM
GM
DMDDMDDMDDMDDMD
AUDIT &
INSPECTION
DIVISION-2 (OTHER THAN CORPORATE
BRANCHES )
GENERAL
ADVANCES
DIVISION (GAD)
TREASURY
MANAGEMENT
DIVISION - 1
(FRONT OFFICE)
CENTRAL
ACCOUNTS
DIVISION
(PAYMENT)
LOAN
RECOVERY
DIVISION (LRD)
EMPLOYEES
WELFARE &
TRANSPORT DIVISION (EWTD)
EXTERNAL
AUDIT
INDUSTRIAL
PROJECTTREASURY
MANAGEMENT
GOVT.
ACCOUNTS &LEGAL
HUMAN
RESOURCEIT DIVISION
FOREIGN
REMITTANCE
SECURITY AND
PROTOCOL DIVISION OVERSEAS Br:
Kolkata Br IndiaGM
6 SBTI Training
Institutes) :
CTG, Mymensingh, Khulna, Rajshahi, Bogura, Cumilla.
INFORMATION
TECHNOLOGY
DIVISION
(BUSINESS IT)
BRANCHES
CONTROL
DIVISION (BCD)
COMMON
SERVICES
DIVISION (CSD)
Sonali Bank Sta� College
IT DIVISION
(INFRASTRUCTURE
IT)
BUSINESS
DEVELOPMENT
DIVISION (BDD)
ESTABLISHMENT
&
ENGINEERING
DIVISION (EED)
GM, Ramna Corp
Br
AUDIT &
INSPECTION
DIVISION-1 (CORPORATE BRANCHES &
CONTROLLING OFFICES)
AGRO-BASED
PROJECT
FINANCING DIVISION (APFD)
INTERNATIONAL
TRADE
FINANCE
DIVISION
CENTRAL
ACCOUNTS
DIVISION
(OPERATION)
LOAN
CLASSIFICATION
DIVISION (LCD)
DISCIPLINE &
APPEAL
DIVISION (DAD)
FOREIGN
EXCHANGE AUDIT
AND INSPECTION
MICRO CREDIT
DIVISION (MCD)
INFORMATION
SECURITY, IT RISK
MANAGEMENT &
FRAUD CONTOL
CARDS
DIVISION (CD)
VIGILANCE AND
COMPLAINT
MANAGEMENT
Sonali Exchange
Company Inc.
( SECI ), USA
GMSonali
PUBLIC
RELATIONS
DIVISION (PRD)
MONEY LAUNDERING
& TERRORISM
FINANCING
PREVENTION
DIVISION (MLTFPD)(ex MLTFPVD)
INTERNAL
AUDIT
COMPLIANCE
DIVISION
SMALL AND
MEDIUM
ENTERPRISE
DIVISION (SME)
RECONCILIATION
DIVISION (RD)
RISK
MANAGEMENT
DIVISION (RMD)
HUMAN
RESOURCE
MANAGEMENT DIVISION (HRMD)
IT DIVISION (IT PROCUREMENT
& MAINTENANCE)
AUDIT
COMPLIANCE
DIVISION
PROJECT
FINANCING
DIVISION
MANAGEMENT
DIVISION - 2 (MID & BACK OFFICE)
ACCOUNTS &
SERVICES DIVISION (GASD)
MATTERS
DIVISION (LMD)
RESOURCE
DEVELOPMENT DIVISION (HRDD)
O
(IT SERVICES
MANAGEMENT)
REMITTANCE
MANAGEMENT DIVISION (FRMD)
PROTOCOL DIVISION
(SPD)
Chief Security
O�cer (CSO)
Kolkata Br, I ndia
Siliguri Br, India
Representative
O�ice:
Riyadh-KSA;
Jeddah-KSA;
Kuwait
Sonali Investment Ltd (Subsidiary of
SBL)
4 Branches =
Motijheel Main Br;
Paltan; Uttara;
Mirpur. Khulna
GMO GMO GMO GMO GMOGMOGMO GMO GMO GMO
CONTROL &
MONITORING
DIVISION
(CMD)
RURAL CREDIT
DIVISION (RCD)
Law Consultant
Chief Medical O�cer
MIS &
STATISTICS
DIVISION (MSD)
ISLAMIC
BANKING
DIVISION (IBD)
DIVISION (FEAID)DIVISION (MCD)
DIVISION
MANAGEMENT
DIVISION (VCMD)(SECI), USA
(Subsidiary of SBL)
9 Branches:
Manhattan; Jackson Heights; Astoria;
Atlanta; Michigan; Paterson; Jamaica; Ozone Park; Bronx. 1 Booth: Brooklyn.
Bank(UK)Ltd(Subsidiary of
SBL)
2 Branches =
London Main Br.;
Birmingham.
RO: Joypurhat,Chapai Nawabganj;
RO: Nilphamari RO: Laxmipur RO: Sherpur; Netrokona
RO: Rajbari; Gopalganj
RO: Pirojpur;Bhola
PO:Rangpur; Dinajpur;
Gaibandha; Thakurgaon (Panchagarh);
Kurigram (Lalmonirhat)
PO:Cumilla;
Chandpur; Brahmanbaria; Noakhali; Feni
PO:Mymensingh;
Tangail; Kishoreganj;
Jamalpur
PO:Faridpur;
Madaripur (Shariatpur);
Kushtia; Chuadanga(Meherpur)
PO:Barishal
(Jhalakathi); Patuakhali (Barguna)
PO:Rajshahi; Pabna;
Bogura; Sirajganj;
Naogaon; Natore
RO: Manikganj RO: - RO: Cox's Bazar; Bandarban
RO: Bagerhat; Narail
RO: Sunamganj
PO:Bangabandhu Avenue
(Dhaka Central ), Dhaka South (Sadarghat),
Gazipur, Narsingdi
PO:Dhaka West (Ramna), Dhaka East (Motijheel),
Mirpur, Narayanganj,
Munshiganj
PO:CTG-North, CTG-South, Patiya-CTG,
Rangamati (Kh hh i)
PO:Khulna; Jashore;
Jhenaidah(Magura); Satkhira
PO:Sylhet;
Moulvibazar; Habiganj
116 Br. 139 Br. 118 Br. 106 Br. 78 Br.143 Br
GMO, RANGPUR
GMO, Cumilla
GMO,MYMENSINGH
GMO, FARIDPUR
GMO, Barishal
GMO, RAJSHAHI
106 Br 106 Br. 109 Br. 123 Br 80 Br.
GMO, DHAKA-1
GMO, DHAKA-2
GMO, Chattogram (CHITTAGONG)
GMO, KHULNA
GMO, SYLHET
DGM Corp Br:Rangpur Corp;
AGM Corp Br:Dinajpur
Corp(AGM)
DGM Corp Br: Cumilla Corp
DGM Corp Br:Mymensingh Corp
DGM Corp Br:Faridpur Corp
DGM Corp Br: ---
AGM Corp Br: Barishal Corp
(AGM)
DGM Corp Br:Wage Earners';
Dilkusha Corp;
Sadarghat Corp;
PM's O�ce;
DU Corp Br;
Hotel Sheraton
(InterContinental)
Corp Branch.
DGM Corp Br: BWAPDA Corp;
Foreign Exch;
Shilpa Bhaban;
Dhaka Cantt.;
Dhanmondi;
Chawk Bazar;
Narayangonj Corp
DGM Corp Br:Agrabad Corp;Laldighi Corp;
Wage Earners'-Ctg
DGM Corp Br:Khulna Corp;
Daulatpur Corp;
AGM Corp Br :Jashore Corp(AGM)
DGM Corp Br:Darga Gate Corp;
AGM Corp Br:Sylhet Corp(AGM)
DGM Corp Br:Rajshahi Corp;
AGM Corp Br:Bogura Corp(AGM)
Chapai Nawabganj;
GM,BB Avenue
Corp Br
Sonali Bank Limited
CORPORATE ORGANOGRAM
ORGANIZATIONAL INFORMATION
Annual Report 2020
Your Trusted Partner in Innovative Banking
Corporate Organogram
SBL O�ces/Branches:
:
:
:
::::
1GM Headed Corporate Br. 2DGM Headed Corporate Br. 24AGM Headed Corporate Br. 5
Local O�ice Br.
Principal O�ce (PO) 46
Regional O�ce (RO) 16
Head O�ce Divisions 47
GM O�ce (GMO) 11
::::::
::
Sonali Investment Limited 1SECI, USA 1
SO Headed Br. 218
AGM Headed Br.
Foreign Br. 2
Total Branches 1,226
59SPO Headed Br. 375PO Headed Br. 543
::
::::: 372
SPO & 1 274
GM & eq. 30
3
DGM & eq.
Sonali Bank Ltd. Manpower:CEO & MD 1DMD 5
146AGM & eq.
Sonali Bank (UK) Limited 1SBL, Representative O�ices
:::::
O�cer & eq. 12,937Total Manpower 22,904
SPO & eq. 1,274PO & eq. 2,793SO & eq. 5,346
Executive CommitteeAudit CommitteeRisk Management Committee
Board of DirectorsChairman, Directors
CEO & Managing Director
GM & Company Secretary
COMPANY AFFAIRS AND
BOARD DIVISION (CABD)
CEO & MANAGING
DIRECTOR'S
SECRETARIAT
Chief Information Technology
O�icer (CITO)
GM GMPrincipal (GM)
TRAINING DIVISION (TD)
GM,Local O�ice
GM,Recovery-LO
Chief Audit
O�icer (CAO)
GMGM
GMChief
Financial
O�icer (CFO)
GMGM
GM
DMDDMDDMDDMDDMD
AUDIT &
INSPECTION
DIVISION-2 (OTHER THAN CORPORATE
BRANCHES )
GENERAL
ADVANCES
DIVISION (GAD)
TREASURY
MANAGEMENT
DIVISION - 1
(FRONT OFFICE)
CENTRAL
ACCOUNTS
DIVISION
(PAYMENT)
LOAN
RECOVERY
DIVISION (LRD)
EMPLOYEES
WELFARE &
TRANSPORT DIVISION (EWTD)
EXTERNAL
AUDIT
INDUSTRIAL
PROJECTTREASURY
MANAGEMENT
GOVT.
ACCOUNTS &LEGAL
HUMAN
RESOURCEIT DIVISION
FOREIGN
REMITTANCE
SECURITY AND
PROTOCOL DIVISION OVERSEAS Br:
Kolkata Br IndiaGM
6 SBTI Training
Institutes) :
CTG, Mymensingh, Khulna, Rajshahi, Bogura, Cumilla.
INFORMATION
TECHNOLOGY
DIVISION
(BUSINESS IT)
BRANCHES
CONTROL
DIVISION (BCD)
COMMON
SERVICES
DIVISION (CSD)
Sonali Bank Sta� College
IT DIVISION
(INFRASTRUCTURE
IT)
BUSINESS
DEVELOPMENT
DIVISION (BDD)
ESTABLISHMENT
&
ENGINEERING
DIVISION (EED)
GM, Ramna Corp
Br
AUDIT &
INSPECTION
DIVISION-1 (CORPORATE BRANCHES &
CONTROLLING OFFICES)
AGRO-BASED
PROJECT
FINANCING DIVISION (APFD)
INTERNATIONAL
TRADE
FINANCE
DIVISION
CENTRAL
ACCOUNTS
DIVISION
(OPERATION)
LOAN
CLASSIFICATION
DIVISION (LCD)
DISCIPLINE &
APPEAL
DIVISION (DAD)
FOREIGN
EXCHANGE AUDIT
AND INSPECTION
MICRO CREDIT
DIVISION (MCD)
INFORMATION
SECURITY, IT RISK
MANAGEMENT &
FRAUD CONTOL
CARDS
DIVISION (CD)
VIGILANCE AND
COMPLAINT
MANAGEMENT
Sonali Exchange
Company Inc.
( SECI ), USA
GMSonali
PUBLIC
RELATIONS
DIVISION (PRD)
MONEY LAUNDERING
& TERRORISM
FINANCING
PREVENTION
DIVISION (MLTFPD)(ex MLTFPVD)
INTERNAL
AUDIT
COMPLIANCE
DIVISION
SMALL AND
MEDIUM
ENTERPRISE
DIVISION (SME)
RECONCILIATION
DIVISION (RD)
RISK
MANAGEMENT
DIVISION (RMD)
HUMAN
RESOURCE
MANAGEMENT DIVISION (HRMD)
IT DIVISION (IT PROCUREMENT
& MAINTENANCE)
AUDIT
COMPLIANCE
DIVISION
PROJECT
FINANCING
DIVISION
MANAGEMENT
DIVISION - 2 (MID & BACK OFFICE)
ACCOUNTS &
SERVICES DIVISION (GASD)
MATTERS
DIVISION (LMD)
RESOURCE
DEVELOPMENT DIVISION (HRDD)
O
(IT SERVICES
MANAGEMENT)
REMITTANCE
MANAGEMENT DIVISION (FRMD)
PROTOCOL DIVISION
(SPD)
Chief Security
O�cer (CSO)
Kolkata Br, I ndia
Siliguri Br, India
Representative
O�ice:
Riyadh-KSA;
Jeddah-KSA;
Kuwait
Sonali Investment Ltd (Subsidiary of
SBL)
4 Branches =
Motijheel Main Br;
Paltan; Uttara;
Mirpur. Khulna
GMO GMO GMO GMO GMOGMOGMO GMO GMO GMO
CONTROL &
MONITORING
DIVISION
(CMD)
RURAL CREDIT
DIVISION (RCD)
Law Consultant
Chief Medical O�cer
MIS &
STATISTICS
DIVISION (MSD)
ISLAMIC
BANKING
DIVISION (IBD)
DIVISION (FEAID)DIVISION (MCD)
DIVISION
MANAGEMENT
DIVISION (VCMD)(SECI), USA
(Subsidiary of SBL)
9 Branches:
Manhattan; Jackson Heights; Astoria;
Atlanta; Michigan; Paterson; Jamaica; Ozone Park; Bronx. 1 Booth: Brooklyn.
Bank(UK)Ltd(Subsidiary of
SBL)
2 Branches =
London Main Br.;
Birmingham.
RO: Joypurhat,Chapai Nawabganj;
RO: Nilphamari RO: Laxmipur RO: Sherpur; Netrokona
RO: Rajbari; Gopalganj
RO: Pirojpur;Bhola
PO:Rangpur; Dinajpur;
Gaibandha; Thakurgaon (Panchagarh);
Kurigram (Lalmonirhat)
PO:Cumilla;
Chandpur; Brahmanbaria; Noakhali; Feni
PO:Mymensingh;
Tangail; Kishoreganj;
Jamalpur
PO:Faridpur;
Madaripur (Shariatpur);
Kushtia; Chuadanga(Meherpur)
PO:Barishal
(Jhalakathi); Patuakhali (Barguna)
PO:Rajshahi; Pabna;
Bogura; Sirajganj;
Naogaon; Natore
RO: Manikganj RO: - RO: Cox's Bazar; Bandarban
RO: Bagerhat; Narail
RO: Sunamganj
PO:Bangabandhu Avenue
(Dhaka Central ), Dhaka South (Sadarghat),
Gazipur, Narsingdi
PO:Dhaka West (Ramna), Dhaka East (Motijheel),
Mirpur, Narayanganj,
Munshiganj
PO:CTG-North, CTG-South, Patiya-CTG,
Rangamati (Kh hh i)
PO:Khulna; Jashore;
Jhenaidah(Magura); Satkhira
PO:Sylhet;
Moulvibazar; Habiganj
116 Br. 139 Br. 118 Br. 106 Br. 78 Br.143 Br
GMO, RANGPUR
GMO, Cumilla
GMO,MYMENSINGH
GMO, FARIDPUR
GMO, Barishal
GMO, RAJSHAHI
106 Br 106 Br. 109 Br. 123 Br 80 Br.
GMO, DHAKA-1
GMO, DHAKA-2
GMO, Chattogram (CHITTAGONG)
GMO, KHULNA
GMO, SYLHET
DGM Corp Br:Rangpur Corp;
AGM Corp Br:Dinajpur
Corp(AGM)
DGM Corp Br: Cumilla Corp
DGM Corp Br:Mymensingh Corp
DGM Corp Br:Faridpur Corp
DGM Corp Br: ---
AGM Corp Br: Barishal Corp
(AGM)
DGM Corp Br:Wage Earners';
Dilkusha Corp;
Sadarghat Corp;
PM's O�ce;
DU Corp Br;
Hotel Sheraton
(InterContinental)
Corp Branch.
DGM Corp Br: BWAPDA Corp;
Foreign Exch;
Shilpa Bhaban;
Dhaka Cantt.;
Dhanmondi;
Chawk Bazar;
Narayangonj Corp
DGM Corp Br:Agrabad Corp;Laldighi Corp;
Wage Earners'-Ctg
DGM Corp Br:Khulna Corp;
Daulatpur Corp;
AGM Corp Br :Jashore Corp(AGM)
DGM Corp Br:Darga Gate Corp;
AGM Corp Br:Sylhet Corp(AGM)
DGM Corp Br:Rajshahi Corp;
AGM Corp Br:Bogura Corp(AGM)
Chapai Nawabganj;
GM,BB Avenue
Corp Br
Sonali Bank Limited
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:
22
YEAR OF EXCELLENCE
1972 1974 1985 1989
1973 1980 1986
Commencement of banking operatrion of Sonali Bank
First agency
transactions
First annual report
Inauguration of
million
Foreign remittance
million
1st computer
Bank
1990 1994 2001 2006
1993 19992005
2007 2009 2010 2012
2008 2009 to 2013
2011
2013 2015 2017 2019
2014
2016
2018 2020
Sonali Bank
million
Foreign remittance
commencement of business of Sonali Bank
ICMAB Best
SMS Banking
Implementation of
Retail Banker in
Islami Banking
Implementation of RMS+ Software
million
million
Sonali Bank
Strongest Bank in
Asian Banker
Collecting Bank
Financial Institute of
Operation being
Best Corporate
trillion
Core Banking
Achieved HighestOperating Pro�t(20257.37 million)in Overall BankingSector.
Achieved HighestNet Pro�t(2264.21 million)Among all State OwnedCommercial Banks inBangladesh.
1st position in AnnaulPerformanceAgreement (APA)2018-29 by the Financial InstitutionsDivision.
Achieved the ICMABBest Corporate Award.
Achieved Center forNon-ResidanceBangladesh (NRBs)Award.
Achieved HighestOperating Pro�t(21526.93 million)in Overall BankingSector.
Achieved HighestNet Pro�t(3234.35 million)Among all State OwnedCommercial Banks inBangladesh.
MILESTONES
ORGANIZATIONAL INFORMATION
Annual Report 2020
1972 1974 1985 1989
1973 1980 1986
Commencement of banking operatrion of Sonali Bank
First agency
transactions
First annual report
Inauguration of
million
Foreign remittance
million
1st computer
Bank
1990 1994 2001 2006
1993 19992005
2007 2009 2010 2012
2008 2009 to 2013
2011
2013 2015 2017 2019
2014
2016
2018 2020
Sonali Bank
million
Foreign remittance
commencement of business of Sonali Bank
ICMAB Best
SMS Banking
Implementation of
Retail Banker in
Islami Banking
Implementation of RMS+ Software
million
million
Sonali Bank
Strongest Bank in
Asian Banker
Collecting Bank
Financial Institute of
Operation being
Best Corporate
trillion
Core Banking
Achieved HighestOperating Pro�t(20257.37 million)in Overall BankingSector.
Achieved HighestNet Pro�t(2264.21 million)Among all State OwnedCommercial Banks inBangladesh.
1st position in AnnaulPerformanceAgreement (APA)2018-29 by the Financial InstitutionsDivision.
Achieved the ICMABBest Corporate Award.
Achieved Center forNon-ResidanceBangladesh (NRBs)Award.
Achieved HighestOperating Pro�t(21526.93 million)in Overall BankingSector.
Achieved HighestNet Pro�t(3234.35 million)Among all State OwnedCommercial Banks inBangladesh.
24
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
ORGANIZATIONAL INFORMATION
Annual Report 2020
CEO & MANAGING DIRECTORSOF 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
26
YEAR OF EXCELLENCE
SON
ALI
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20
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1258
786
58
62
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012
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56
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27
32
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216
738
218
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26
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04
53
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20
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199
35
43
99
414
194
38
09
50
09
04
91
82
5.0
212
728
130
25
129
110
00
03
272
20
00
1973
81
133
28
1515
07
50
82
24
42
11 4
793
579
713
2-
1217
113
875
129
310
00
03
272
199
916
93
7312
35
63
577
61
352
763
89
58
413
03
126
126
-11
99
014
06
513
06
100
00
32
72
199
815
170
79
44
41
471
123
42
713
68
28
29
793
102
102
-12
06
114
45
713
1110
00
03
272
ORGANIZATIONAL INFORMATION
Annual Report 2020
Year
De
po
sit
Loan
s an
d
Ad
van
ces
Cla
ssifi
ed
Lo
ans
Imp
ort
Exp
ort
Fore
ign
re
mit
tan
ceO
pe
rati
ng
P
rofi
tN
et
Pro
fit
Cap
ital
A
de
qu
acy
Rat
io
Man
po
we
r (O
ffice
r)M
anp
ow
er
(Sta
ff)
No
of
Bra
nch
es
Au
tho
rize
d
Cap
ital
Pai
d u
p
Cap
ital
199
713
60
62
854
51
39
00
93
20
40
33
158
240
92
132
132
-11
62
914
49
613
1310
00
03
272
199
612
38
35
7611
63
08
67
29
50
52
62
84
198
1024
824
8-
871
617
52
713
1310
00
03
272
199
511
08
33
658
30
250
81
418
722
09
98
1978
171
671
6-
86
67
175
51
1310
100
00
32
72
199
410
1411
53
89
32
124
52
83
68
188
1818
80
96
136
13-
873
616
94
113
07
100
00
32
72
199
38
46
85
53
63
12
160
013
136
1214
015
38
52
02
0-
814
917
48
713
03
100
00
32
72
199
276
678
48
69
317
56
713
29
410
557
149
84
45
45
-8
28
516
477
130
010
00
024
27
199
16
876
64
52
1811
971
122
34
106
68
1375
617
17-
766
117
45
012
96
100
00
242
7
199
0573
92
44
311
-16
98
012
559
1318
051
51
-76
08
176
50
129
110
00
024
27
198
952
214
418
68
-2
019
011
33
511
84
652
52
-74
80
182
22
128
52
00
55
198
84
579
53
52
77-
172
719
703
113
05
160
160
-73
37
185
07
1276
20
05
5
198
73
96
29
29
80
8-
1656
375
31
113
56
164
164
-71
48
184
41
126
22
00
55
198
63
5572
29
272
-14
46
56
83
510
30
04
59
459
-73
63
185
22
125
42
00
55
198
53
4576
275
41
-13
514
729
08
50
14
99
49
9-
60
80
1919
112
45
20
05
5
198
42
703
12
212
3-
972
16
151
90
81
552
552
-6
09
918
32
112
33
20
03
0
198
32
04
97
170
11-
979
658
41
110
22
50
550
5-
52
53
160
84
1214
50
30
198
215
96
116
83
2-
94
32
56
758
34
34
81
48
1-
39
31
1377
610
55
50
30
198
111
92
711
856
-8
182
470
1510
12
32
23
2-
39
47
139
40
103
15
03
0
198
010
96
79
62
6-
109
26
46
48
42
06
177
177
-18
183
1011
50
30
1979
83
88
675
6-
790
84
051
577
39
69
6-
134
81
84
35
03
0
1978
59
96
48
33
-3
63
23
36
33
88
56
46
4-
1174
470
95
03
0
1977
46
62
36
25
-2
951
23
36
180
59
89
8-
1013
56
00
50
30
1976
38
44
2419
-2
175
164
977
79
19
1-
85
56
45
05
03
0
1975
33
29
215
1-
274
19
124
42
97
81
-6
98
94
00
50
30
1974
22
7816
77-
216
36
63
189
40
31
-6
29
43
59
50
30
1973
210
312
90
-70
352
52
162
52
1-
576
03
06
50
30
1972
173
18
54
-4
32
2-
05
02
-4
708
274
50
20
(Tk.
in m
illio
n)
28
YEAR OF EXCELLENCE
BOARD OF DIRECTORS
Ziaul Hasan Siddiqui
Chairman
A.B.M Ruhul Azad
Director (Joined on 15.06.2021)
A. K. M. Kamrul Islam FCA, FCS
Director
Md. Fazlul Haque
Director (Retired on 03.06.2021)
BOARD OF DIRECTORS AND THEIR PROFILE
Annual Report 2020
Ishtiaque Ahmed Chowdhury
Director
Molla Abdul Wadud
Director
Dr. Daulatunnaher Khanam
Director
Professor Dr. Mohammad Kaykobad
Director (Joined on 25.08.2020)Md. Ataur Rahman Prodhan
CEO & Managing Director
Md. Mofazzal Husain
Director
30
YEAR OF EXCELLENCE
COMPOSITION OF COMMITTEES OF THE BOARD OF DIRECTORSExecutive Committee
Sl. Name Status with the Bank Status with the Committee
01 Mr. Ziaul Hasan Siddiqui Chairman Chairman
02 Mr. Md. Fazlul HaqueDirector
(Retired on 03.06.2021)Member
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 CommitteeSl. Name Status with the Bank Status with the 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
Risk Management CommitteeSl. Name Status with the Bank Status with the Committee
01 Mr. Ishtiaque Ahmed Chowdhury Director Chairman
02 Mr. Md. Fazlul HaqueDirector
(Retired on 03.06.2021)Member
03 Dr. Daulatunnaher Khanam Director Member
04 Mr. Md. Mofazzal Husain Director Member
05 Professor Dr. Mohammad Kaykobad Director Member
Composition of Shariah Supervisory CommitteeSl. 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
BOARD OF DIRECTORS AND THEIR PROFILE
Annual Report 2020
EXECUTIVECOMMITTEE
Ziaul Hasan Siddiqui Md. Fazlul Haque
(Retired on 03.06.2021)
Md. Ataur Rahman ProdhanMd. Mofazzal Husain Molla Abdul Wadud
Sl. Name Status with the Bank Status with the Committee
01 Mr. Ziaul Hasan Siddiqui Chairman Chairman
02 Mr. Md. Fazlul HaqueDirector
(Retired on 03.06.2021)Member
03 Mr. Md. Mofazzal Husain Director Member
04 Mr. Molla Abdul Wadud Director Member
05 Mr. Md. Ataur Rahman Prodhan CEO & Managing Director Member
32
YEAR OF EXCELLENCE
AUDITCOMMITTEE
A.K.M. Kamrul Islam FCA, FCS Ishtiaque Ahmed Chowdhury
Dr. Daulatunnaher Khanam Professor Dr. Mohammad Kaykobad
Sl. Name Status with the Bank Status with the 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
BOARD OF DIRECTORS AND THEIR PROFILE
Annual Report 2020
RISK MANAGEMENTCOMMITTEE
Ishtiaque Ahmed Chowdhury Md. Fazlul Haque
(Retired on 03.06.2021)
Professor Dr. Mohammad KaykobadDr. Daulatunnaher Khanam Md. Mofazzal Husain
Sl. Name Status with the Bank Status with the Committee
01 Mr. Ishtiaque Ahmed Chowdhury Director Chairman
02 Mr. Md. Fazlul HaqueDirector
(Retired on 03.06.2021)Member
03 Dr. Daulatunnaher Khanam Director Member
04 Mr. Md. Mofazzal Husain Director Member
05 Professor Dr. Mohammad Kaykobad Director Member
34
YEAR OF EXCELLENCE
Ziaul Hasan Siddiqui
Chairman
Mr. Ziaul Hasan Siddiqui joined as Chairman of the Board of Directors of Sonali Bank Limited on 22 August, 2019. He is the former Deputy Governor of Bangladesh Bank.
Mr. Ziaul Hasan Siddiqui has track-record of successfully developing customized financial and management strategies to meet the needs of bank on the basis of continuous analysis of economic trends. He has strong ability to quickly understand an organization; evaluate business and investment opportunities prevailing in the market and leverage those based on organizational strengths. He is equally savvy to ensure business growth and diversification.
Mr. Siddiqui has highly successful and results-driven exposure in the financial sector with more than 35 years of comprehensive versatile Central Bank experience. Mr. Siddiqui started his career with Bangladesh Bank in 1976. He served as Deputy Governor of Bangladesh Bank for more than 5 years with specialization in monetary policy, foreign exchange policy and reserve management. He also served as Head of Financial Intelligence Unit (FIU) of Bangladesh tasked with the responsibility of upgrading Anti Money Laundering (AML) regime to international standard and formulating strategies for Combating Financing of Terrorism (CFT). He played a key role in making Taka convertible for current account transaction, moving from fixed to floating exchange regime, sovereign rating of Bangladesh and drafting the Guidelines for Foreign Exchange Transaction.
He was the Managing Director of Security Printing Press Corporation Bangladesh Ltd. and a member of the APG Steering Committee representing South Asian Countries. He also acted as the Chairman of Bangladesh Commerce Bank Ltd., Board member of Karma Sangsthan Bank Ltd. and AB
bank Ltd. He was an advisor to Prime Bank Limited and was an independent director of Union Capital Ltd., Summit Power Ltd., and Summit Purbanchal Power Co. Ltd. Before joining as Chairman of Sonali Bank Limited, Mr Siddiqui was CEO of IOF (IGW Operators Forum). He taught Microeconomics, Macroeconomics, Financial Institutions and Markets at BRAC University, Northern University, University of Asia Pacific and Australian Catholic University in Sydney. He is also the Chairman of the Sonali Investment Limited. He also lectured at Bangladesh Public Administration Training Centre, Defence Services Command and Staff College and National Defence College.
Mr. Siddiqui obtained his MPA (Masters in Public Administration) degree from Harvard University (USA) and MA degree in Economics from Dhaka University. He enhanced his professional expertise by participating in a number of foreign training courses including ones from Ohio State University, World Bank, IMF and ADB. Besides having professional diploma in Banking (DAIBB), Mr. Siddiqui has completed Training and Assessment Certificate Course from Australia.
Late Rahim Uddin Siddiqui, father of Mr.Siddiqui was a renowned Journalist of many prominent National Dailies of the country, including the Daily Azad, Ittefaq, Millat etc and died a premature death while working as a class one gazetted officer (information officer). Late Julekha Siddiqui, mother of Mr. Siddiqui was a homemaker. Mr. Siddiqui’s wife Mrs. Bilu Siddiqui, is a Grade-A singer of Bangladesh Betar and BTV. She also performs in different TV channels. Mr. Siddiqui is blessed with a daughter and a son. Both of them live in Australia.
BOARD OF DIRECTORS AND THEIR PROFILE
Annual Report 2020
Md. Fazlul Haque
Director (Retired on 03.06.2021)
Md. Fazlul Haque, Additional Secretary, has been appointed as Director of Sonali Bank Limited on December, 2015 while he was working in Bank and Financial Institutions Division of Ministry of Finance. Mr. Haque enjoyed various positions at the national level such as the Project Director of Bangladesh Trade Policy Support Program (BTPSP), the Joint Secretary (Relief) of the Ministry of Disaster Management and Relief (MoDMR), the Secretary of Bangladesh Jute Mills Corporation, the Director Administration and Director Finance in Civil Aviation Authority of Bangladesh and the Deputy Secretary at the Ministry of Establishment.
Md. Fazlul Haque is a career civil servant and started his career in the administrative service of Bangladesh. The first date of his joining in the service was 21st January, 1986 (BCS 1984 Batch) as Assistant Commissioner at Chittagong Collectorate. At the field level, he worked as Assistant Commissioner (Land), at Raozan and Hathazari, Upazila Magistrate at Boalkhali under Chittagong District. He worked
as Upazila Nirbahi Officer at Feni Sadar and Banshkhali under Chittagong District and Additional District Magistrate in Rangamati Hill District.
Mr. Haque completed his MBA in 2005. He obtained his M.Sc. and B.Sc.(Honours) degrees in Agricultural Economics from Bangladesh Agricultural University, Mymensingh. He has undergone a number of professional trainings at home and abroad. Working as Assistant Commissioner (Land) he published a book on land matters named Namzari (Mutation).
He visited Cambodia, Sweden, London, China, South Korea, Japan, Singapore, Pakistan, Sri Lanka, India, Indonesia, Ethiopia, Malaysia, USA, UAE and Saudi Arabia for the purpose of Training, knowledge sharing on Administration, Disaster Management, Social Protection Activities, Public Policies and Religious Prayers.
Md. Fazlul Haque was born on 10th August, 1960 in a respectable muslim family in the District of Jamalpur.
36
YEAR OF EXCELLENCE
Md. A.B.M Ruhul Azad was appointed as a Director of the Board of Directors, Sonali Bank Limited on 15 June, 2021. He is also an active member of Executive Committee and Risk Management Committee of the Board of Directors of Sonali Bank Limited. He has been working as the Additional Secretary of Financial Institutions Division of Ministry of Finance, Government of the People’s Republic of Bangladesh since October 23,2018.
Mr. Azad is respected for his innovative ideas, concepts and various challenging endeavors in Management & Public Administration. Mr. Azad enjoyed various positions at the national level such as Additional Secretary of Ministry of Youth and Sports, Director of Bangladesh Krira Shikkha Pratisthan (BKSP), Deputy Director of National Housing Authority (NHA) and Deputy Secretary, Ministry of Industries.
A. B. M Ruhul Azad is a career Civil Servant and started his career of as an officer of BCS 8th Batch (1986).The first date of his joining in the service was 20 December 1989.During the early stage of his career Mr. Azad worked in different position of Bangladesh Ansar. In 2006 Mr. Azad was appointed as the Deputy Secretary of Ministry of Public
Administration. He was promoted as Joint Secretary in 2013 and promoted as Additional Secretary in 2017.
Mr. Azad obtained his B.Sc. (Honors) degree in Agricultural Science from Sher-E-Bangla Agricultural University, Dhaka. He also obtained MSS degree in Government and Politics.
Mr. Azad has participated in different international conferences and meetings as a member of Bangladesh delegation. Mr. Azad had the opportunity to participate various training, workshop and seminar held in different countries of the world such as India, South Korea, Singapore, Thailand, Vietnam, China, Netherlands, Austria, Belgium, Switzerland, France, Turkey, Italy and USA. He also completed training program on “Public Administration Development Program on Public Policy, Service Delivery and Negotiations” from Duke University, North Carolina, USA. He has a special training on Intellectual Property Right System.
A. B. M Ruhul Azad was born on 1st January, 1963 in a respectable muslim family in the District of Narsingdi. He is married to Ms. Mirza Morsheda Mahbub. They are blessed with two sons.
A.B.M Ruhul Azad
Director (Joined on 15.06.2021)
BOARD OF DIRECTORS AND THEIR PROFILE
Annual Report 2020
Mr. A.K.M. Kamrul Islam was appointed as a Director to the Board of Directors of the Bank on 22 December 2016. He is the Chairman of the Audit Committee of the Bank. He is a partner of Islam Aftab Kamrul & Co. Chartered Accountants. He has special expertise in Assurance & Auditing, Taxation and Financial Consultancy Services.
Mr. Islam became Chartered Accountants and fellow member of the Institute of Chartered Accountants of Bangladesh (ICAB) in 1993. He is also a fellow and associate member of many National and International Professional Bodies.
Mr. Islam is a fellow member of Institute of Chartered Secretaries of Bangladesh (ICSB); associate member of Information System Audit and Control Association (ISACA), USA and International Institute of Internal Auditors, Florida, USA; life member of Bangladesh Economic Association since 1997; member of Bangladesh Society for Total Quality Management (BSTQM); founder member of Intellectual Property Association of Bangladesh (IPAB) and Chairman of Mashnoons Limited.
Mr. Islam was an active member and elected Director of Dhaka Chamber of Commerce and Industry (DCCI) for 2005-07 and 2016-2018. He is currently Senior Vice President of DCCI. He also has been elected as the Director of Japan Bangladesh Chamber of Commerce and Industries (JBCCI) for the period of 2016-2018. He is President of the Accounting Alumni, University of Dhaka and Life Member of Transparency International Bangladesh Chapter.
Mr. Islam is respected for his innovative ideas, concepts and various challenging endeavors in business sectors and social works in Bangladesh. He has 29 years of professional experience.
Mr. Islam graduated with Honors and Masters in Accounting from Dhaka University. He visited India, Pakistan, Nepal, Bhutan, Japan, China, Thailand, Singapore, Malaysia, Netherlands, Belgium, Germany, Saudi Arabia etc.
Mr. Islam, son of late Alhaj A.K.M. Tajul Islam and late Hasne Ara Islam, was born in Comilla on 14 January 1959. He is married to Mrs. Syeda Kaniz Fatema who is a housewife. They have two daughters.
A.K.M. Kamrul Islam FCA, FCS
Director
38
YEAR OF EXCELLENCE
Mr. Ishtiaque Ahmed Chowdhury, has been nominated as the Director of the Board of Directors of Sonali Bank Limited on September 19, 2018. Prior to this, he was the Managing Director & CEO of Trust Bank Limited.
Having started his career with Rupali Bank Limited as Probationary Officer in 1977, Mr. Chowdhury gained grounded experiences in many fields ranging over rural banking, SME banking, Wholesale Banking and Client Acquisition that helped him make remarkable turnaround of loss incurring branches into profitable ones within target time.
Mr. Chowdhury spent half of his career time in AB Bank Limited, the first private commercial bank of the country, from 1984 through 2002. He headed major corporate branches of the Bank including Kawran Bazar, Uttara, and Motijheel Corporate Branch. He also worked in Financial Control department of the Bank for almost four years. He won the best manager award and appreciation for his outstanding performance at the Bank.
Over the last 29 years, Mr. Chowdhury’s career evolved as a well rounded banker with adequate exposures in Strategic Risk Management, Revenue Growth, Client Acquisition, and Operations Management.
Mr. Chowdhury believes in inclusive banking and has Always put efforts to bring banking services to the doorstep of people at large. He strongly holds that a banker has to be trustworthy and dedicated towards serving people in order to uplift their livelihood and socio economic status.
He has also proven to be an effective team player and can get things done by ensuring coherent and integrated management atmosphere. He is one of the proponents of
situational leadership approach and can pursue tough goals in any market scenario.
He is a dreamer, humanitarian, organizer and an art connoisseur. He is involved in Rotary Club and held position of President of Jahangirnagar, Dhaka unit of Rotary District. He is also Treasurer of Combat Hunger Project Committee of Rotary International District. He is a member of Uttara Club, Kurmitola Golf Club, and Childhood Cancer Foundation, Dhaka. He is presently Executive Member of Association of Bankers Bangladesh (ABB). He is a “Tax Card” holder, a very prestigious status provided by NBR for 2011-2013. Mr. Chowdhury has also won the 13th Rapport Award for Excellence in Human Resource Development-2013.
With a distinctive academic track record, he passed S.S.C and H.S.C in 1968 and 1970 respectively. He holds MSS degree with Honors in Political Science and Law from the University of Dhaka. He is a DiplomaEd Associate of Institute of Bankers, Bangladesh.
Mr. Chowdhury visited many countries for official purpose as well as personal pleasure. He participated in a good number of professional trainings, workshops, and seminars at home and abroad. He participated in a certificate course titled ‘Value Creation in Banking and Strategic Management in INSEAD (Business School for the world) frame sponsored by Standard Chartered Bank from October 29 to November 01, 2015.
Mr. Chowdhury was born in Sylhet in 1953. His father was a member of Assam Legislative Council of British Period in Assam, India. Mr. Chowdhury is married to Syeda Latifa Ishtiaque. Their only son, Chowdhury Ahmed Tausif Ishtiaque has graduated from Institute of Business Administration (IBA), University of Dhaka and is now working in HSBC Bangladesh.
Ishtiaque Ahmed Chowdhury
Director
BOARD OF DIRECTORS AND THEIR PROFILE
Annual Report 2020
Dr. Daulatunnaher Khanam has been director of Sonali Bank Limited since January 13, 2019. Prior to this, she was the Deputy Managing Director of Bangladesh House Building Finance Corporation.
Dr. Khanam started her banking career as Senior Officer in Bangladesh Krishi Bank in 1984. Right from the beginning she applied herself to excel as a professional banker. As a result, she rose steadily through ranks to become the Deputy Managing Director in 2018. During her long career, she held various important positions in the bank.
Dr. Khanam has a distinguished academic career. She graduated from Jahangirnagar University with honours in Economics in 1981 and completed her MSc in 1983 from the same University. One year after she had joined BKB, She received a scholarship of the Indian government for Ph.D in Economics in Banaras Hindu University, Banarasi, India. Her dissertation topic was ‘Role of Institutional Finance in Agricultural Development of Bangladesh.’ She was awarded Ph.D degree in 1990.
Dr. Khanam took part in international training programs, workshops and seminars in USA, UK, Japan, Malaysia, Singapore, Thailand, Tunisia and Turkey. She participated in many training programs at home as well.
Dr. Khanam authored important text books of Economics for Higher Secondary students and Bangladesh Studies for graduate students that have become very popular among the students and teachers. She has serious publications to her credit on various economic topics in prestigious journals at home and abroad.
Dr. Khanam is a life member of Bangladesh Economic Association and Economic Association of Jahangirnagar University and Associate member of Bangladesh Society for Training & Development Center, Dhaka.
She was born in a respectable Muslim family in 1959 in the district of Kishoregonj. She is married to Mr. Md. Shamsul Kabir Khan and is blessed with two daughters and one son.
Dr. Daulatunnaher Khanam
Director
40
YEAR OF EXCELLENCE
Mr. Md Mofazzal Husain, former Director of Janata Bank Limited and Managing Director of Rajshahi Krishi Unnayan Bank was appointed as a Director of Board of Directors of Sonali Bank Limited on 13 May, 2019.
He is a member of Audit Committee and Risk Management Committee of the Board of Directors of Sonali Bank Limited.
He obtained MBA degree from the Institute of Business Administration (IBA), University of Dhaka in 1977.
Mr.Husain has more than 36 (Thirty six) years of core banking experience with increasing responsibilities in career commenced with Sonali Bank Limited as Senior the rank of Managing Director of Rajshahi Krishi Unnayan Bank on 26 July 2012. He retired on 01 October 2015.
Mr. Husain worked in Agrani Bank for about 9 years (from September 2003 to July 2012) in the capacity of General Manager and Deputy Managing Director with full satisfaction of the policy level management and operational management covering most of the areas of bank.
During his long banking career he proved himself as an outstanding & honest banker with strong personality & clean
image in the banking arena.
Mr. Husain received extensive training on banking related subjects both at home and abroad. He participated in a Nashville, Tennessee, USA & Citicorp School of Banking, New York, USA in 1993 organized under joint collaboration of FSRP (Financial Sectors Reforms Program) & USAID. He also visited Japan, Hong Kong, Thailand, India, United Arab Emirates, Oman, Saudi Arabia, Germany, Switzerland and programs/seminars and for other purposes.
Specially relating to Banking, Finance and Management as a Resource Person/Guest Speaker in Training Institutes of Mr. Husain is /was associated with various socio-cultural organizations of National and International level, viz: Lions Clubs International District 315A Bangladesh, Lions Club of Dhaka, Bangladesh Cricket Board, Nazrul Academy, Shimanta Granthagar, Khelaghar etc.
Mr. Husain, son of Late Dr. Afsar Ali and Late Rahima Khatun, was born on 01 October 1955 in Tangail, Bangladesh. He is Married to Mrs. Zeenat Sultana who is a housewife. They have been blesses with two daughters , Mahsina Tabassum and Ishrat Tabassum and a son, Jamael Tanveer.
Md. Mofazzal Husain
Director
BOARD OF DIRECTORS AND THEIR PROFILE
Annual Report 2020
Mr. Molla Abdul Wadud joined as a Director of Sonali Bank Limited on 30July, 2019. He is a formerGeneral Manager and Company Secretary of Bakhrabad Gas Distribution Company Limited (BGDCL).
Mr. Molla Abdul Wadud has highly successful and results-driven exposure in the Gas sector. He is respected for his innovative ideas, concepts and various challenging endeavors in the Gas sector of Bangladesh. He has more Administration. He has exceptional ability of organizing by ensuing coherent and integrated management atmosphere. He has shown his prudence in drafting cases of the company. He was also served as compliance standard.
Mr. Molla Abdul Wadud started his career in Bakhrabad Gas sraey 23 gniruD .5891 ni detimiL ynapmoC noitubirtsiDtenure of professional experience in gas sector, he Deputy General Manager, Company Secretary and General Manager of Bakhrabad Gas Distribution Company Limited (BGDCL).
He is also one of the members of the Audit Committee and the Risk Management Committee of the Board of Directors of Sonali Bank Limited.
Mr. Molla Abdul Wadud completed his graduation in Commerce from the University of Chittagong. Along with graduation, he also obtained LL.B. degree from the same university. He also completed Masters in commerce form Dhaka University. He enhanced his professional expertise by participating in a number of in-country and foreign training courses during his career including Integrity Management in Organisations, Training of trainers etc. He visited Malaysia, Thailand and Saudi Arabia for the purpose of training and religious prayers.
Mr. Wadud, Son of Late Shamsul Haque Molla and Meherun Nessa Khanom, was born in Narsingdi on 02 June, 1958. He is married with Mrs. Mahinoor Akter Chowdhury and blessed with two daughters.
Molla Abdul Wadud
Director
42
YEAR OF EXCELLENCE
Dr. Kaykobad was appointed as a Director of the Board of Directors, Sonali Bank Limitedon 25 August,2020.He received M.S.(Hons.) in Engineering from OMEI, now Odessa State Maritime University, in 1979. In 1982 he received an M.Eng. Degree from AIT, Thailand, and a Ph.D from the Flinders University of South Australia in 1988. Dr. Kaykobad is a Fellow of Bangladesh Academy of Sciences(BAS).
Dr. Kaykobad was a Professor at CSE Department, BUET since 1997, and served as its Head during 1996-1999. He served as Dean of the Faculty of EEE, BUET for two years. He is now a Distinguished Professor, CSE Department, BRAC University. Dr. Kaykobad also served as a professor at CSE Department, Kyung Hee University, South Korea, and at NSU, Bangladesh.
Dr. Kaykobad has published over 50 research articles in international journals of repute. He authored, coauthored or edited 15 books. Many of these books are for inspiring young students develop either programming or mathematics skill or for developing patriotism. He was a guest co-editor of the proceedings of International Conference on Computer and Information Technology (ICCIT 2009) published by Academy Publisher.
He was a co-chair of the workshop WALCOM, 2016 held at Kathmandu, proceedings of which was published by the famous publisher Springer. He is also a coeditor of the book on “Technical Challenges and Design Issues in Bengali Language Processing”.Professor Md. Zafar Iqbal and he were entrusted with the responsibility of editing/rewriting 6 text books of SSC level by the Ministry of Education.
Dr. Kaykobad was the Organizing Chair of the first ever International Computer conference ICCIT held in the soil of Bangladesh. He was also the Chair of the Steering Committee for Workshop on Algorithms (WALCOM). He is a frequent column writer in National Dailies authoring over 400 articles, most of which are related to education of the country. He has been one of the pioneers in introducing Mathematics Olympiad, Olympiad in Informatics and Science Olympiad in Bangladesh. He has been leading Bangladesh IOI team since
2008 from which Bangladesh received 22 medals including 4 silver medals. He was the Chief Judge of IIT Kanpur Asia Region Site of ICPC in 2010, 2011 and 2013. He received the outstanding coach award of ICPC in 2002 at Honolulu, Hawaii, only Senior Coach award recipient at the World Finals of ICPC held at St. Petersburg, Russia in 2013, and ICPC Foundation Life time coach award in 2019 at Porto, Portugal. He was also awarded a gold medal by Bangladesh Physics Olympiad for his contributions to Olympiad movement. Dr. Kaykobad was recognized as distinguished alumnus in 2008 by his alma mater The Flinders University of South Australia. He was invited in the prestigious Heidelberg Laureate Forum, 2014, and participated there. Dr. Kaykobad is a frequent visitor of schools, colleges and universities of the capital and outside.
Dr. Kaykobad was a Visiting Professor at the CSE Department, the Chinese University of Hong Kong, at Kyung Hee University, Korea, ANU and Monash University, Australia and Amritapuri University, India. In year 2005 the President of the country presented him with a Gold Medal awarded by Bangladesh Computer Society for his contribution to computer programming culture in the country. In year 2006 He won BAS Gold Medal for physical sciences in the senior group which was awarded by the Prime Minister of the country. Dr. Kaykobad is a member of the Executive Council of Bangla Academy.
Dr. Kaykobad has been playing active role in the computerization of both public and private enterprises. He worked as a Director of Dhaka and Chittagong Stock Exchanges for many years. Currently he is an independent director of Dhaka Stock Exchange. Dr. Kaykobad is a member of Academic Council and Syndicate of several universities. Dr. Kaykobad was also member of Investigation Team of multimillion dollar cyber heist from Bangladesh Bank, and was the convener of Administrative team constituted by the Government to investigate into Question leaking of public examinations.
Dr. Kaykobad was born on 1 May, 1954 at village Jabra, District Manikganj. He is married to Saleha Sultana Kaykobad and has two sons.
Professor Dr. Mohammad Kaykobad
Director
BOARD OF DIRECTORS AND THEIR PROFILE
Annual Report 2020
Mr. Md. Ataur Rahman Prodhan has been CEO & Managing Director of Sonali Bank Limited since August 28, 2019. Prior to this, he was CEO & Managing Director of Rupali Bank Limited, which was preceded by his brief stint as Managing Director of Probashi Kollyan Bank.
Mr. Prodhan is a man with distinctive vision, dynamism, commitment & innovative ideas. He also has an illustrious banking career. He joined Sonali Bank as Financial Analyst in 1984 and rose steadily through the ranks to become the Deputy Managing Director in May, 2015. During his long career, he held many important executive roles, including be the ultimate of corporate banking, given its sheer size and range of businesses and services. He had also been CEO of Sonali Bank (UK) Limited, situated in London, from March, 2012 through May, 2015. As Deputy Managing Director, he held the positions of Head of HR and Head of Credit, among others, successfully till he became Managing Director of Probashi Kollyan Bank.
A consummate professional, Mr. Prodhan earned laurels and appreciations from the authority all through his career for his extra ordinary performances. His hands-on approach has resulted in capturing numerous success for expanding the business of the Bank.
Mr. Prodhan graduated with honors and completed his M.Com. in Management from Dhaka University in 1980 and 1981 respectively. He took part in many training programs and seminars at home and abroad.
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
Aftab Uddin Prodhan and also a high school (Amanatullah Prodhan secondary school) in the name of his grandfather Late Amanatullah Prodhan.
He has been elected as a member of the Senate of Dhaka University in 2018, commanding highest ever votes in the history of Senate election. He was born in the district of Lalmonirhat in 1960. His hobby is travelling, swimming and reading books.
Chairman:
Bangladesh Foreign Exchange Dealers Association (BAFEDA)Primary Dealers Bangladesh Limited (PDBL)
Sonali Intellect Limited.
Vice-Chairman:
Institute of Bankers, Bangladesh (IBB) Industrial and Infrastructure Development Finance Company Limited (IIDFC).
Director:
Sonali Exchange Co. Inc., New York Padma Bank Limited Investment Corporation of Bangladesh (ICB)Sonali Investment LimitedCentral Depository Bangladesh Limited (CDBL).
Member:
Governing Board, Bangladesh Institute of Bank Management (BIBM)Finance Committee, Dhaka University.
Md. Ataur Rahman Prodhan
CEO & Managing Director
44
YEAR OF EXCELLENCE
CEO & MANAGING DIRECTOR
DEPUTY MANAGING DIRECTORS
Md. Ataur Rahman Prodhan
CEO & Managing Director
Md. Murshedul Kabir Md. Idris
Md. Afzal Karim
(Joined BHBFC as Managing Director)
Md. Zahidul Haque
(Joined Probashi Kollyan Bank
as Managing Director)
Md. Abdul Mannan
MANAGMENT TEAM
Annual Report 2020
GENERALMANAGERS
Subhash Chandra DasFCA, FCMA (CFO)
Mohammad Rezwan Al Bakhtiar (CITO)
Imran Ahmed (CAO)
Mohammad Modasser Hasan Md. Abdul Mazid Md. Jahangir Alam
46
YEAR OF EXCELLENCE
DEPUTYGENERAL MANAGERS
SL.
NONAME
SL.
NONAME
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
MANAGMENT TEAM
Annual Report 2020
SL.
NONAME
SL.
NONAME
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)
48
YEAR OF EXCELLENCE
Ziaul Hasan SiddiquiChairman
MESSAGE FROM THE CHAIRMAN
MASSAGE FROM THE CHAIRMEN
Annual Report 2020
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Bismillahir Rahmanir Rahim
Distinguished Shareholders
Assalamu Alaikum.
It is indeed a great pleasure and privilege for me to welcome you all to the 14th Annual General Meeting of Sonali Bank Limited. On behalf of the Board of Directors including myself, I would like to express my cordial greetings and extend warm felicitations to you all. It is your continued support and active co-operation that enabled us to attain sustained success by overcoming all challenges. I feel proud to present before you the Annual Report of the Bank for the year 2020along with the Audited Financial Statements for your review, comments and approval.
At this gracious moment, I remember with great respect the Father of the Nation Bangabandhu Sheikh Mujibur Rahman, more than three million martyrs, heroine, freedom fighters whose blood, supreme sacrifice and valour helped us to achieve the glorious independence of Bangladesh.
The coronavirus (COVID-19), emerged as a global pandemic in 2020, poses a major risk to the global economy. This pandemic slowed down the robust economic growth of Bangladesh in the last fiscal year. All sectors including banking sector are facing the adverse effect of the pandemic. But through the actions taken by the government, the economy is expected to overcome probable global and domestic crises arising due the coronavirus (COVID-19) pandemic.
In the midst of coronavirus (COVID-19) pandemic, Sonali Bank Limited, the largest state-owned commercial bank with a large branch network throughout the country, is providing banking services to the people from all walks of life by ensuring best satisfaction of its customers as well as shareholders. We also remain committed to serve the nation by participating into government entrusted activities for the better protection of the society. Sonali Bank granted a special loan to Bangladesh Biman, the national flag carrier and Payra port following the government decision. Moreover, the Bank provides 37 services for free of charge and 14 services at nominal charge for the greater interest of the people in line with government aspiration. These programs have been undertaken to serve societal benefits rather than commercial considerations.
Sonali Bank Limited keeps itself abreast with the real time information, updating ideas and approaches in the areas of innovation and adopting new technology. In the face of increasing competition, IT efficiency promotes operational ease and sets a standard for quality, internal productivity and improved enhanced customer service. Till date, the Bank has also implemented Core Banking Solution (CBS) in all its 1224 domesticbranches to provide uninterrupted, reliable, faster and better one stop service at the doorsteps of customer at an affordable cost.
During the COVID 19 outbreak in 2020, obviously the introduction of ’’Sonali eSheba’’ and ’’Sonali eWallet’’ is a shining achievement of Sonali Bank Limited. Clients can open accounts even from their home through ’’Sonali eSheba’’. Subsequently, the bank introduced ’’Sonali eWallet’’. This wallet helps the clients to make transactions to any accounts, pay the bills and taxes etc.
Our main thrust, therefore, is rural development through employment generation and productive activities in rural Bangladesh. From this consideration, Sonali Bank Limited
50
YEAR OF EXCELLENCE
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has redesigned the operational strategy by prioritizing credit allocation to micro, small and medium size productive enterprises which have been considered as the thrust and most valued sector in the economy. In Agricultural/Rural credit, sufficient amount has been disbursed and total outstanding stood at Tk. 46,606.90 million. Till 2020, total outstanding in Micro Credit and SME sectors stood at Tk. 12,197.50 and 71,310.90 million respectively. These priority sectors are playing special role in contributing to our national income as well as upgrading the quality of life of our people living under poverty level.
During the year, Sonali Bank Limited earned operating profit amounting to Tk. 21,526.93 million, highest in the banking sector of Bangladesh and also achieved a positive net profit amounting to Tk. 3,234.35million than the previous year. Operational efficiency, optimum utilization of fund, and high productivity regarding deposit collection, loans and advances, recovery from classified loan, controlling of operating expense contributed to this surge of profit during 2019. Moreover, share on income from various service oriented activities under total income is rising undoubtedly which is an omen to our business growth.
Financial inclusion is high on the development agenda of the government. Sonali Bank Limited has been working relentlessly to expand financial activities in line with this agenda to support the government’s initiatives designed to alleviate poverty and improve the living standard of the common people. Rural development plays a vital role in eradicating poverty. The Bank has already opened 10/50/100 Taka accounts for the poor people and total number of such accounts reached approximately 51.42 lac namely farmer’s account, Social Safety Net Program, Freedom fighters, Small Life Insurance program, RMG Sector and other A/Cs under financial inclusion program.
Good Corporate Governance system is vital for efficient and effective business operation, long term stability and sustainable growth for any organization. The Governance system of Sonali Bank Limited is characterized by its design to ensure transparency and accountability at all level of management. Three committees- Executive Committee, Audit Committee and Risk Management Committee of the Board have been working to assist the Board in discharging its responsibilities efficiently and effectively. In accordance with “Annual Performance Agreement” signed with the Ministry, the Bank has recently undertaken a similar agreement through which accountability of the executives may be measured. Performance of the executives is judged by these newly designed information scale.
Recently Sonali Bank Limited has introduced “Whistle Blower Policy” for the first time in the banking history of Bangladesh. Certainly it is very important and bold decision in implementing the National Integrity and the banking activities corruptionless. We are aware that strong vigilance is a must to guard against leakage and to achieve highest excellence through responsibility and accountability. In order to ensure responsible and accountable management system and highest degree of excellence, steps have been taken to restructure and modernize the Internal Control and Compliance Mechanism to safeguard the safety and soundness of the bank, its employees, depositors and shareholders.
Qualified and competent human resource is crucial for sustainable growth. Success of the Bank may be achieved by improving skills, knowledge and productivity of the
MASSAGE FROM THE CHAIRMEN
Annual Report 2020
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employees. Keeping this in view, the Bank invests remarkably in human resources development for capacity building. The goal is to empower staff and create a culture that encourages and rewards commitment, creativity and team work in order to respond rapidly to the ever changing customer needs and market. SBL is offering its employees’ safe, healthy and congenial working environment. Moreover, it endeavors its best to ensure that the employees engagement is maximized.
Sonali Bank Limited always recognizes its wider obligation to the society and therefore embraces the concept of Corporate Social Responsibility (CSR) which is believed to be fundamental to attaining the long term sustainability and business growth. Since a perfect balance among the state, market and society is required for suitable and inclusive growth, it operates banking activities in economically, environmentally and socially sustainable manner in line with its vision and mission.
The Bank is responding strategically to create sustainable value for the stakeholders since grave menace posed by climate change. Various steps have been taken to ensure green banking. These include green financing, creating awareness among employees for efficient use of water, electricity and paper, giving preference to preservation of eco-system while financing commercial projects and re-use of equipments. In order to harness the potentiality of the green banking, a separate unit named “Sustainable Finance Unit” under the Risk Management Division has been formed in line with the policy directives of Bangladesh Bank.
Looking towards the future & playing on our own strength, we have all the key success factors, necessary to scale up, aiming at attaining brand of quality among our wider network to negotiate the course of change. We can do it well by our well recognized market presence with a strong product portfolio, well established brand image and countrywide network.
Let me take the opportunity to thank my fellow Directors, who have given me their generous co-operation and support with great personal commitments. My words of thanks go to the CEO and Managing Director, all of our officials, staff members for their commitment, loyalty and sincerity along with continued support and co-operation.
I would like to express my sincere gratitude to the Government of Bangladesh specially the Financial Institutions Division of Ministry of Finance, Bangladesh Bank, Bangladesh Securities and Exchange Commission, Office of the Registrar of Joint Stock Companies and Firms, the Stock Exchange for their continued support and guidance. I would also like to express my thanks to all of our valued clients, patrons, well-wishers and shareholders on behalf of the Board. They are our source of inspiration and strength.
While concluding, we reaffirm our good intention to remain “Your Trusted Partner in Innovative Banking” at all time to come and remain committed to be with you all in innovative ways to add values to our work.
May almighty Allah help us all and shower eternal blessings upon all of us.
(Ziaul Hasan Siddiqui)
ChairmanBoard of DirectorsSonali Bank Limited
52
YEAR OF EXCELLENCE
FROM THE DESK OF CEO AND MANAGING DIRECTOR
Md. Ataur Rahman ProdhanCEO & Managing Director
CEO AND MANAGING DIRECTOR'S MASSAGE
Annual Report 2020
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Bismillahir Rahmanir Rahim
Distinguished Shareholders
Assalamu Alaikum.
It is a great privilege and honor for me to have the opportunity to present and record my observation on the performance of Sonali Bank Limited, the largest commercial bank of Bangladesh, for the year 2020. I would like to express my heartfelt thanks and gratitude to our valued customers, partners and well wishers for their active and continuing support, co-operation and strong association with us.
Before reflecting on the Bank’s performance in 2020, it would be relevant to present a snapshot of global and Bangladesh economy.
The coronavirus (COVID-19), which has emerged as a global pandemic, poses a major risk to the global economy. As a result of the pandemic, the global economy is anticipated to contract in a much worse way than during the 2008-2009 financial crises. In the World Economic Outlook (WEO) October 2020, International Monetary Fund (IMF) projected that the global economic growth would contract sharply by 4.4 percent in 2020 downgrading from -3.0 percent projection made in April 2020, WEO. The global economy is projected to grow by 5.2 percent in 2021 as the economic activity normalizes, helped by policy support. In advanced economies, growth is expected to slow to - 6.1 percent in 2020 due to slowdown in economic activity as a result of rapid and widespread growth of COVID-19. Moreover, Overall, the group of emerging market and developing economies, growth is forecasted at 3.3 percent in 2020.
The Bangladesh economy has been able to maintain sustained economic growth over the last decade though according to the final estimate of BBS, the GDP growth stood at 5.24 percent in 2020 which was 8.15 percent in 2019. Per capita GDP and per capita national income stood respectively at US$ 1,970 and US$ 2,064 in FY2019-20, up by US$ 142 and US$ 155 from the previous fiscal year. In FY2019-20, the inflation rate stood at 5.65 percent. Recently Bangladesh has been successfully graduated to the status of a lower middle income country (LMIC) from low income country (LIC). Remittance reserve stood at US$ 43.17 billion due to introduction of 2 percent incentives on remittances sent by NRBS. Alongside financial incentives, various activities including policy support such as reduction of import duty on COVID-19 related products, policy support to increase liquidity in the banking sector has been provided. 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 the customers and society at large and thus maximizes values for its stakeholders in a fair, transparent and ethical way. Profit maximization is not the sole objective of the Bank. Along with profit earning we are committed to make positive contribution to the economy and the society as a whole in a sustainable manner. That is why, besides earning profit, Sonali Bank is proud to bear the responsibility of implementing various welfare programs and initiatives of the government, thereby becoming the inseparable partner of the noble work of the government intended to uplift the
54
YEAR OF EXCELLENCE
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socio-economic condition of the poor. The visible return from these services may not be encouraging from business standpoint, but the return is high from the social-cost benefit perspective.
Sonali Bank Limited gives utmost priority to keep employees psychological strength in achieveing its business goal in COVID 19 pandemic. The Bank provided adequate PPEs, masks, hand sanitizer for its all employees and ordered all controlling offices and branches to maintain physical distance while performing their duties which is still going on. In order to provide better and faster services to the customers, SBL is offering each employee safe, healthy and congenial working environment. In all branches, a separate and Clean sanitation system for its female employees and clients along with supply of pure hygienic drinking water during office hours for all the employees has been arranged. Moreover, it endeavors its best to ensure that the employees engagement with the business is maximized.
Sonali Bank Limited achieved substantial growth during the year under review. The operating profit of the Bank stood at Tk. 21,526.90 million in 2020. The cost of Fund stood at a reasonable rate of 5.23% in 2020. Operational efficiency, lower cost of fund resulting from improved deposit mix, minimization of operating cost and increase in non-funded income have contributed to the higher profit. Besides, a substantial amount of income is generated from various services introduced.
Amid sluggishness of the economy in 2020 due to COVID 19, the Bank’s deposit grew by more than 8.63% amidst fierce competition banking sector during 2020. Deposits of the bank stood at Tk. 1.26 trillion. In 2016, Sonali Bank made a history by reaching a milestone of accumulating deposits over one trillion taka, an accomplishment that the banking sector never witnessed before. Since then, the Bank has held the position of deposit tightly with gradual increase. The success of deposit mobilization was due to our customers’ unflinching trust in us. We are introducing latest technology, multiple delivery channels and enhancing our capacity to take our services to the customers’ reach at an affordable cost. We are emphasizing on the introduction of tailor made and innovative wholesale and retail products to satisfy the growing and divergent needs of the valued customers.
In loans and advances, the bank registered 6% positive growth in 2020, raising the total outstanding to Tk. 586,232.72 million from Tk. 551,026.29 million of the last year. The bank continued to grow and diversify its portfolios in 2020 to have a diversified customer base. The whole portfolios were planned to avoid loan concentrations and other principles of sound lending were followed to keep the credit risk in the minimum. The plans for financing in thrust sectors like micro credit and small and medium industries, that are considered to be the growth engine of the economy, were executed. It produced more income by reducing the portfolio risk. As a result, maximum social benefit is reaped along through expected financial return.
Amid COVID 19 breakout in 2020, we recovered Tk. 10,501.50 million from classified loan. Consequently the rate of classified loan dropped down to 18.37% in 2020 which was 20.32% in 2019. We have to keep the rate of
CEO AND MANAGING DIRECTOR'S MASSAGE
Annual Report 2020
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Non Performing Loans (NPL) to a satisfactory level of 10%. This has posed a significant challenge to us indeed and to overcome the problem appropriate strategies have already been worked out and necessary instructions and guidance have been provided to all levels of managers. All our branches have been instructed to extend all out efforts towards creating and enhancing performing assets. A robust monitoring mechanism has also been put in place to monitor the results.
Sonali Bank follows transparent recruitment process and stresses on gender equality based on merit. High quality, intelligent and competent human resources are crucial for continued growth and success of a bank. Success of the bank could be achieved by improving skills, knowledge and productivity of the employees. Keeping this in view we emphasize on the human resource development through continuous training, seminars and symposiums to create a talent pool especially in the managerial cadre. The Bank has been trying to ensure that employees involve themselves in the running of business with adequate professional experience which in turn benefit shareholders and add value to colleagues and help create customer satisfaction.
Good corporate governance system is vital for efficient and effective business operation, long term stability and sustainable growth for any organization. The governance system of Sonali Bank Limited is characterized by its design to ensure transparency and accountability at all levels of management. It also ensures that duties and responsibilities are appropriately segregated between the Board and Management so that sufficient check and balance are provided to enable professionals to run the business effectively and also to protect interests of shareholders and depositors alike. Effective corporate governance is critical to the proper functioning of the bank. Bangladesh Bank, in line with the Basel Committee, provided us a framework within which we are operating to achieve robust and transparent risk management and decision-making and, in doing so, promote customer confidence and uphold the safety and soundness of our bank. Our policy stresses the importance of risk governance as part of our overall corporate governance framework and promotes the values of internal control functions and compliance. Our three board committees - Executive Committee, Risk Committee and Audit Committee - see that internal control functions are effective.
SBL is aware of the adverse effect of climate change and various steps have been taken to ensure green banking. Our green banking activities cover multiple areas which include both in-house environment management and green financing. There is a green banking unit to develop, evaluate and administer eco-friendly banking system. Green banking activities are being notified to the Risk Management Committee of the Board on regular basis. Sonali Bank has incorporated environmental and climate change risk as part of the existing credit risk methodology to asses a borrower in line with Bangladesh Bank ERM (Environment Risk Management) guide-lines and related instructions. The Bank is funding directly and indirectly in eco-friendly activities.
Sonali Bank Limited has made substantial investment for the development of the ICT infrastructure, vast automation of unheard of magnitude, cyber security, manpower
56
YEAR OF EXCELLENCE
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development and research to keep itself abreast with the changing needs of the time. In the face of increasingly fierce competition, the bank has been continuously striving towards bringing technology driven banking services, convenience and satisfaction to its customers. It helps standardize the quality of work, internal productivity and improved customer service. The Bank has already implemented international standard robust Core Banking Solution (CBS) system in all branches in order to provide uninterrupted, reliable, faster and instant one stop customer service at an affordable cost.
Sonali Bank Limited as a responsible corporate citizen is fully aware of its responsibility about how its operational activities impact its shareholders, the economy, its employees, the society and the environment. Conducting business in an ethical way, creating opportunities for business and economic growth, empowering people to fulfill their aspirations, ensuring protection of environment while financing business and supporting the distressed people of the society are at the heart of the corporate social responsibility of Sonali Bank Limited. We believe that responsible conducts are directly correlated with economic and social development of the country. Sonali Bank Limited has been playing a pioneering role in implementing various social and philanthropic programs. Education, sports, healthcare, human resources development, conservation of nature, creation of social awareness, rehabilitation of distressed humanities, distributing blankets amongst the cold affected people are some of the important areas where the bank carries out its social and philanthropic activities.
The year 2020 was a demanding year in many respects and a testament to the talent and professionalism of all my colleagues who successfully met its challenges along the way. I would like to take this opportunity to extend my thanks to my colleagues for their efforts. I render my humble thanks and indebtedness to the Board of Directors of the Bank by whose able direction and prudent guidance, our efforts met with success. In addition, I am gratified for their earnest co-operation. I also express my sincere thanks and deep gratitude to Finance Division and Financial Institution Division of the Ministry of Finance, Government of the Peoples Republic of Bangladesh, Bangladesh Bank, Bangladesh Securities & Exchange Commission and other regulatory bodies for their continued support and guidance. I also expect that their all out support will continue in the years to come.
We are entering into 2021 with our resilience and the momentum that we have gained so far. We also have with us an excellent team, a shared set of priorities and proven track record of good performance and with all these, we do look forward to yet another year of success.
May Almighty Allah help us.
(Md. Ataur Rahman Prodhan)
CEO & Managing Director
CEO AND MANAGING DIRECTOR'S MASSAGE
Annual Report 2020
58
YEAR OF EXCELLENCE
DIRECTORS’ REPORT TO THE SHAREHOLDERS
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Bismillahir Rahmanir Rahim
Esteemed Shareholders
Assalamu Alaikum.
We feel very honoured and privileged to have the opportunity to welcome you to the 14th Annual General Meeting (AGM) of Sonali Bank Limited. We express our sincere gratitude to all of you for your continued support and patronization in carrying out the business of our Bank in 2020. We present herewith the audited Financial Statements and the Auditors’ Report for the year ended 31 December 2020 for your kind perusal and consideration.
Registered as Public Limited Company on 3 June 2007, Sonali Bank Limited (SBL), the state-owned and the largest commercial bank in the country, has been operating and serving the nation by providing innovative banking services and solutions to people from all walks of life and thereby contributing to sustainable development of the country.
The activities of the Bank and its operational performance in 2020 as compared to those in 2019 have been presented in this report. The financial statements for the year ended 31 December 2020, prepared in accordance with the International Financial Reporting Standards (IFRS) and in compliance with the regulatory requirements of the country, have been annexed to the report. Before presenting the details of the Bank’s performance in the year under review, we would like to give you a snapshot of the performance of the world economy and Bangladesh economy in 2020 in key areas.
World Economic Scenario 2020
The world economy has witnessed unprecedented disruptions in economic activities in 2020 caused by COVID-19 both in the developed and the developing
DIRECTORS' REPORT
Annual Report 2020
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A_©‰bwZK cÖe„w× 2019 mv‡ji 1.3% n‡Z 2020 mv‡j 6.5% n«vm †c‡q‡Q|
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cÖe„w×I 2020 mv‡ji 4.7% n«vm †c‡q‡Q hv 2021 mv‡j 2.5% Ges 2022
mv‡j 3.0% nv‡i e„w× †c‡Z cv‡i|
D`xqgvb evRvi I Dbœqbkxj A_©‰bwZK †`kmg~n hv †gvU wek¦ cÖe„w×i 70%
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c~‡e©i Zzjbvq 2021 mv‡j 6.3% Ges 2022 mv‡j 5.2% nv‡i e„w× cv‡e e‡j
cÖ‡ÿcb Kiv n‡q‡Q| G A‡ji Ab¨Zg †`k ivwkqvi A_©‰bwZK cÖe„w× 2019
countries which will impede efforts in reducing poverty and generation of employment opportunities. It has impacted a great toll on the lives and livelihood of the people in these countries. The outbreak of COVID-19 pandemic and its massive adverse effects have pushed the global economic growth into negative in 2020. Economic activities also suffered a setback in the face of longstanding rising tensions originating from trade and tariff issues between the USA and China. This sluggish trend started during the first half of 2019 and continued more or less throughout the year 2020. Against this backdrop, a combination of country and sector specific factors further reduced expectation in economic activities. After recording a moderate growth rate of around 3.2 percent in 2019 global growth rate came down to 2.8 percent in 2020. This growth rate is perhaps the lowest since 2008-09. With the adoption of various stimulus packages both in the developed and the developing countries to minimize the cost of COVID-19, the world economy is projected to depict a significantly positive outcome in 2021 at 6.0 percent which may be moderated to 4.6 percent in 2022.
According to the World Economic Outlook Update July 2021 published by the International Monetary Fund, the growth rate in the advanced economies declined by 4.6 percent in 2020 from a growth rate of 1.6 percent in 2019. In the United States it has declined by 3.5 percent in 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 4.9 percent in 2021 and 2022 respectively. The slowdown is partly due to the spillover effects of trade measures including the tariffs imposed on the US imports from China.
The growth rate in Euro area slowed more than expected as a combination of factors weighed on activity across the countries which included among others, weakening of consumer and business sentiments, delays associated with the introduction of new fuel emission standards for diesel powered vehicles in Germany and fiscal policy uncertainties. Following a significant pickup in economic activities in 2017 exports from Euro area countries softened considerably because of weak intra-euro-area trade which exacerbated poor business sentiments across the currency area. Growth rate in major Euro area countries like Germany, France, Italy, Spain slowed down significantly in 2020. As a group, growth rate in Euro area has declined by 6.5 percent in 2020 compared to a growth of 1.3 percent in 2019. With the adoption of proactive measures in the face of COVID-19 the overall economic activities in the euro area are projected to rebound in 2021 by 4.6 percent and may remain more 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 percent in 2020. It is projected to grow by a robust rate of 7.0 percent in 2021 and may be moderated at 4.8 percent 2022. Growth rate in Japan also decelerated to 4.7 percent in 2020 which may grow 2.5 percent in 2021 and further by 3.0 percent in 2022.
Growth rates in the emerging market and developing economies accounting for over 70 percent of global growth are diverse and challenging. Overall growth rate in these countries declined by 2.1 percent in 2020 as compared to 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 percent in 2022. Economic growth in Russia, a country of
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YEAR OF EXCELLENCE
mv‡ji 2.0% n‡Z 2020 mv‡j 3.0% n«vm †c‡q‡Q hw`I 2021 mv‡j †mwU
c~‡e©i Zzjbvq 4.4% e„w× †c‡q Ny‡i `vov‡Z cv‡i|
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Zzjbvq cÖe„w×i GB nvi 2021 mv‡j 7.4% Ges 2022 mv‡j wKQzUv MwZ jvf
K‡i 5.4% e„w× †c‡Z cv‡i| Px‡bi A_©‰bwZK cÖe„w× 2019 mv‡ji 6.0% Gi
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6.3% cÖe„w× AwR©Z n‡Z cv‡i| ga¨cÖvP¨ Ges ga¨ Gwkqvi †`kmg~‡n cÖe„w×
2019 mv‡ji 1.4% Gi n‡Z 2020 mv‡j 2.5% n«vm †c‡q‡Q| GwU 2021
I 2022 mv‡j 4% nv‡i e„w× †c‡Z cv‡i| mve mvnviv Avwd«Kvi †`kmg~‡ni
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Av‡jvPbv †_‡K cÖZxqgvb n‡”Q †h, we‡k¦i cÖvq mKj †`‡ki A_©‰bwZK cÖe„w×
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aviv Ae¨vnZ ivL‡jI †Zj ewnf©©~Z LvZ EaŸ©gyLx i‡q‡Q| ‡Z‡ji gyj¨ 2019
mv‡ji 10.2% n«v‡mi ¯’‡j 2020 mv‡j 32.7%% n«vm †c‡q‡Q hw`I
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`vg e„w× †c‡q‡Q| DbœZ A_©bxwZi †`kmg~‡n Zv 2019 Gi 1.4% Gi Zzjbvq
2020 mv‡j 1.7% e„w× †c‡q‡Q hv 2021 I 2022 mv‡j h_vµ‡g 2.4%
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e¨ZxZ D`xqgvb I Dbœqbkxj †`kmg~‡n †fvM¨c‡Y¨i vg 2019 I 2020 mv‡j
5.1% G w¯’i wQj hv 2021 mv‡j mvgvb¨ e„w× †c‡q 5.4% G DbœxZ n‡Z cv‡i|
wek¦ evwY‡R¨i (cY¨ I †mev) cÖe„w× 2020 mv‡j wb¤œMvgx aviv Ae¨vnZ †i‡L‡Q|
gyjZt hy³ivóª I Px‡bi ga¨Kvi evwbR¨hy‡×i Kvi‡b GwU 2019 mv‡ji 0.9%
n‡Z 2020 mv‡j 8.3% n«vm †c‡q‡Q hw`I †mwU 2021 I 2022 mv‡j h_
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emerging and developing Europe, declined by 3.0 percent in 2020 compared to a growth rate 2.0 percent in 2019. Growth rate is projected to rebound by 4.4 percent in 2021.
The emerging and developing Asia which accounts for over half of world growth will remain more or less flat in recent years. Growth rate in these countries marginally declined to 0.9 percent in 2020 as compared to a moderate growth of 5.4 percent in 2019. It has been projected to grow significantly by 7.4 percent in 2021 and by 5.4 percent in 2022. China’s economic growth rate cooled down to stand at 2.3 percent as against 6.0 percent in 2019. In China necessary domestic regulatory tightening to rein in debt, constrain shadow financial intermediation and place growth on a sustainable footing contributed to slower domestic investment particularly in infrastructure. Spending on durable consumption goods in China softened with automobile sales declining in 2020 following the expiration of incentive programs for car purchases.
Growth prospects in India have been downgraded following the severe second COVID-19 wave during March-May and expected slow recover in confidence from that setback. Similar dynamics are at work in the ASEAN-5 (Indonesia Malaysia, Philippines, Thailand and Vietnam) where recent infection waves are causing a drag on economic activities in these countries. Overall growth rate in ASEAN-5 countries declined by 3.4 percent in 2020 compared to a positive growth rate of 4.9 percent in 2019. It has been projected 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 and Central Asia declined by 2.5 percent in 2020 compared 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 in Sub Saharan African countries declined by 1.8 percent in 2020 in contrast to the growth of 3.2 percent in 2019. It appears from the above discussion that growth rates in almost all the countries significantly declined in 2020 compared to those in 2019 and are projected to grow in 2021 and in 2022.
Commodity prices (particularly oil) in the world market in 2020 have been showing a declining trend. On the other hand, non-fuel prices were showing increasing trend. Oil prices declined by 32.7 percent in 2020 compared to a decline of 10.2 percent in 2019. It may significantly increase by 56.6 percent in 2021. Non fuel prices increased by 6.7 percent in 2020 compared to a small increase of 0.5 percent in 2019. As a result, consumer prices have increased across the advanced and the emerging market and developing economies in 2020. In advanced economies it has increased by 1.7 percent in 2020 compared to 1.4 percent in 2019. It has been projected to grow further by 2.4 percent and 2.1 percent in 2021 and 2022 respectively. On other hand, consumer prices in emerging market and developing economies excluding Venezuela remained flat at 5.1 percent in 2019 and in 2020. It may marginally go up by 5.4 percent 2021.
World trade (goods and services) volume has registered a declining trend in 2020. It has come down to 8.3 percent in 2020 compared to 0.9 percent in 2019. This is due to the escalation of trade war between the USA and China and imposition of tariffs. But it is projected to grow by 9.7 percent and by 7.0 percent in 2021 and in 2022 respectively.
DIRECTORS' REPORT
Annual Report 2020
evsjv‡`‡ki A_©bxwZ 2020
mv¤úªwZKKv‡j evsjv‡`‡ki A_©bxwZ mvgwMÖKfv‡e mvgwóK A_©‰bwZK
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Abyhvqx 2019-20 A_©eQ‡i evsjv‡`‡ki A_©bxwZ 5.2% cÖe„w× AR©b K‡i‡Q
hv 2018-19 A_©eQ‡ii 8.2% Gi Zzjbvq D‡jøL‡hvM¨ cwigv‡b Kg| c~e©eZ©x
A_©eQi¸‡jv‡Z evsjv‡`‡ki e¨vcK cÖe„w× AwR©Z n‡jI 2019-20 A_©eQ‡ii
†klv‡a© ïiæ nIqv †KvwfW 19 gnvgvwii Kvi‡b †`‡ki A_©‰bwZK AMÖMwZ
gvivZ¥Kfv‡e e¨vnZ nIqvq A_©bxwZi cÖwZwU Lv‡Z Kg cÖe„w× AwR©Z n‡q‡Q|
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19 Gi GB AwfNvZ 2020 mv‡j 8.2% Gi cÖe„w× AR©b Ges g~j¨ùxwZ 5.5
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wPwýZ nIqvi mv‡_ mv‡_B Gi msµgb †iv‡a miKvi 26 gvP© 2020 n‡Z
30 †g 2020 ch©šÍ mvaviY QzwU †NvlYv K‡i| Gi d‡j A_©eQ‡ii Aewkó
mg‡q A_©‰bwZK Kg©KvÛ e¨vcKfv‡e n«vm cvq| A_©bxwZi wewfbœ †m±‡ii
cÖe„w× we‡kølb Ki‡j †`Lv hvq, wRwWwci GK-Z„Zxqvs‡ki AwaKvix wkíLvZ
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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%|
K…wli DcLvZmg~‡n cÖe„w× n«vm cvIqvq mvgwMÖKfv‡e K…wlLv‡Zi cÖe„w× n«vm
†c‡q‡Q| wRwWwc‡Z ‡mevLvZ 51.3% Gi Askx`vi| †KvwfW 19 gnvgvwii
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9.5% Ae`v‡bi gva¨‡g ‡mevLv‡Zi cÖe„wׇZ fzwgKv †i‡L‡Q| Avgv‡`i g‡b
ivLv `iKvi, µgea©gvb ‡UKmB A_©‰bwZK cÖe„w× evsjv‡`k‡K wb¤œ Av‡qi
†`k ‡_‡K wb¤œ ga¨g Av‡qi †`‡k DbœxZ n‡Z mnvqK n‡e| evsjv‡`k OECD
Export Credit Eligibility Group 5 Gi Rb¨ †hvM¨Zv AR©b K‡i‡Q|
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cÖwZ‡ekx †`kmg~n evsjv‡`‡ki Zzjbvq A‡bK wb‡P Ae¯’vb Ki‡Q| evsjv‡`k
c~‡e©i K‡qK eQ‡ii g‡Zv GeviI Ba3 (Moody’s) Ges BB- (Standard &
Poor’s) †iwUs AR©b K‡i‡Q| evsjv‡`k Uvbv 4_© ev‡ii gZ Fitch Rating
†_‡K w¯’wZkxj cÖe„w× Ges gReyZ ˆe‡`wkK w¯’wZi Rb¨ BB- †iwUsI AR©b
K‡i‡Q| Avkv Kiv hv‡”Q evsjv‡`k 2030 mvj ev Zvi Av‡MB D”P ga¨g
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Bangladesh Economic Scenario 2020
In recent years, Bangladesh economy has witnessed sustained macroeconomic stability, deceleration in inflation rate, rising trend in foreign exchange reserves and declining interest rate. According to the estimates released by the Bangladesh Bureau of Statistics (BBS), the economy of Bangladesh grew by 5.2 percent during FY20 which is significantly lower than 8.2 percent FY19. The economic growth during the last few years was very robust in Bangladesh but with the advent of COVID-19 pandemic which started during last quarter of FY20 adversely affected the overall economic performance of the country. Following the negative impacts of COVID-19, all major sectors of the economy registered a lower growth. Even in the face of this, the growth rate in Bangladesh in FY20 was the highest in the South Asian region. The outbreak of COVID-19 has also created serious challenge in attaining growth at 8.2 and inflation rate at 5.5 percent in FY20.
The Performance in different sectors of the economy was below expectation generated from the negative impacts of COVID-19. But the growth in remittance and industrial production index was in line with the growth target of GDP. With the identification of corona virus in Bangladesh in March 2020 and to contain its spread, government announced a national general holiday from 26 March to 30 May 2020. As a result of this, overall economic activities during the rest of the periods significantly declined. If we analyze the growth rates of different sectors of the economy, we see that industry sector which constitutes 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 in the last year. The agricultural sector which contributes 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 previous year. The growth rate in the agricultural sector declined due to moderation of growth in all sub-sectors of agriculture. In the face of COVID-19 pandemic, the services sector contributing about more than half of GDP (51.3 percent in FY20), grew by 5.2 percent in FY20 as compared to 6.8 percent in the last year. Within this sector, higher growth impulse in FY20 mainly came from health and social work (10.0 percent) and other financial intermediation (9.5 percent). It is to be noted here that a steady and a sustained economic growth is necessary for graduation from LDC to lower middle income country (LMIC). Bangladesh has also qualified for OECD Export Credit Eligibility Group 5 which is only below India but ahead of all other South Asian neighbors. Bangladesh achieved Ba3 (Moody’s) and BB- (Standard and Poor’s) for stable outlook for the last several years. Bangladesh also achieved BB- rating for stable growth rate and strong external balances from Fitch Ratings for the fourth time. Bangladesh is expecting to reach the status of upper middle country (UMIC) by 2030 or earlier.
With a view to revamping economic activities the government and the Bangladesh Bank took various measures in the financial sector in FY20 by providing adequate liquidity and loanable funds in the market by ensuring un-interrupted business operations. Such policy measures include but are not limited to cash reserve ratio, bank rate, repo and reverse repo rates, introduction of term repo and extension of advance to deposit ratio (ADR)
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†iwkI BZ¨vw` Ab¨Zg| wewfbœ †ÿ‡Î miKv‡ii GmKj mgwš^Z D‡`¨v‡Mi
gva¨‡g †KvwfW 19 Gi KzcÖfve †gvKv‡ejv m¤¢e n‡q‡Q Ges 2019-20 A_©eQ‡i
5.2% Gi g‡Zv ZzjbvgyjKfv‡e fv‡jv GKwU cÖe„w× AR©b Ki‡Z mÿg n‡q‡Q|
Px‡bi 2.3%, fvi‡Zi FYvZ¥K 7.3% Ges Ab¨vb¨ Avwkqvbfz³ †`kmgy‡ni
FYvZ¥K 3.4% Gi Zzjbvq †ek LvwbKUv Dc‡i Ae¯’vb Ki‡Q| wewfbœ Lv‡Z
†UKmB cÖe„w× AR©b †`‡ki GB cÖe„w× AR©‡b fzwgKv †i‡L‡Q|
evsjv‡`k e¨vsK Zvi g~`ªvbxwZ‡Z g~j¨ Ges mvgwóK `~i`„wóm¤úbœ Avw_©K w¯’wZkxjZv‡K jÿ¨ ivLvi cvkvcvwk AšÍf©yw³g~jK Ges cwi‡ekMZfv‡e †UKmB Kg©ms¯’vb m„wóg~jK Kvh©µg I †UKmB Dbœqb cÖe„w× †KŠkj‡K ¸iæZ¡ w`‡q‡Q| G j‡ÿ¨ gy`ªvbxwZi cÖwZ‡e`b ‡gvZv‡eK 2019-20 A_©eQ‡ii Rb¨ evsjv‡`k e¨vsK GKwU mveavbx, AšÍfz©w³g~jK, g~j¨ùxwZ n«vmKvix, wewb‡qvM Ges cÖe„w× evÜe gy`ªvbxwZ †NvlYv K‡i| evsjv‡`k e¨vsK †`‡ki Avw_©K LvZ‡K cwi‡ek evÜe A_©‰bwZK Kvh©µ‡g A_©vq‡b Drmvn cÖ`vbmn Kvh©Kix c`‡ÿc MÖnY K‡i‡Q| evsjv‡`k e¨vsK KZ…©©K A_©‰bwZK Kg©Kv‡Û cwi‡ekMZ †UKmB A_©vq‡b Avww_©K Lv‡‡Zi mswkøóZv‡K we‡kl iæZ¡ †`qv n‡q‡Q| G‡ÿ‡Î K…wl I GmGgB Lv‡Zi AšÍf©yw³ we‡kl cÖvavb¨ †c‡q‡Q| miKv‡ii Dbœqb bxwZgvjv‡K AMÖvwaKvi w`‡q evsjv‡`k e¨vsK KZ©„K gy`ªvbxwZ I FY bxwZgvjv cÖbqY Kiv n‡q‡Q|
evsjv‡`‡k Broad Money Supply 2018-19 A_©eQ‡i AwR©Z 9.9%
Ges 2019-20 Gi jÿ¨gvÎv 13.0% Gi wecix‡Z 12.7% AwR©Z n‡q‡Q|
e¨vsK e¨e¯’vq cvewjK †m±‡i D”P FYcÖevn RwbZ wbU Af¨šÍixY m¤ú` e„w×i
Kvi‡YB g~jZ Broad Money Supply e„w× †c‡q‡Q| e¨vsK e¨e¯’v †_‡K
Af¨šÍixY FYcÖevn 2019-20 A_©eQ‡i 13.7% e„w× †c‡jI cÖe„w×i jÿ¨gvÎv
17.4% Zzjbvq bx‡P Ae¯’vb Ki‡Q| 2018-19 A_©eQ‡i G nvi wQj 12.4%|
GKBfv‡e 2019-20 A_©eQ‡i c&ªvB‡fU †m±‡i FYc&ªevn 2018-19 A_©eQ‡ii
11.3% Gi Zzjbvq 8.6% e„w× †c‡jI 2019-20 Gi cÖe„w×i jÿ¨gvÎv
14.8% Zzjbvq wb‡¤œ Ae¯’vb Ki‡Q| †KvwfW 19 RwbZ jKWvDb _vKvq Ges
ZrcieZ©x mg‡q ¸YMZ F‡Yi cÖwZ e¨vsK AvMÖnx nIqvq cÖvB‡fU †m±‡i F‡Yi
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2019-20 A_©eQ‡ii evwl©K Mo g~j¨ùxwZi nv‡i GKwU EaŸ©gyLx aviv cwijwÿZ
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and investment to deposit ratio (IDR) etc. As a result of the concerted efforts initiated by the government in different fields to neutralize the negative impacts of COVID-19, Bangladesh economy remained more or less stable and resilient and recorded relatively a higher growth rate of 5.2 percent FY20. This growth rate is much above that in China (2.3 percent) and in India (-7.3 percent) and in other ASEAN countries (-3.4 percent) in 2020 (World Economic Outlook Update, IMF, July 2021, page 6). This higher growth rate was made possible because of sustained growth rate in all the sectors of the economy.
In addition to price and macroeconomic and financial stability objectives, Bangladesh Bank (BB) in its monetary policy stance generally emphasizes inclusivity and environmental sustainability with a view to enhancing employment generation activities in line with Sustainable Development Growth (SDG) strategy. With this end in view, BB pursued a cautious, inclusive, inflation limiting, investment and growth friendly Monetary Policy during FY20 as enunciated in its Monetary Policy Statements. Bangladesh Bank took effective initiatives to involve the country’s financial sector in encouraging/ promoting environmentally sustainable financing of economic activities. Particular emphasis was assigned to Bangladesh Bank’s financial inclusion initiatives especially to agriculture and SME sectors. Bangladesh Bank’s monetary and credit policies consistently adopt a stance supportive of the government’s growth objectives.
Broad money supply in Bangladesh accelerated in FY20 by 12.7 percent compared to 9.9 percent in FY19. This was marginally short of the FY20 monetary program target growth of 13.0 percent. The growth in broad money was mainly driven by increase in net domestic assets (NDAs) of the banking system. Domestic credit from the banking system also recorded an increase of 13.7 percent in FY20 which was below the programmed growth of 17.4 percent for the year. The growth of domestic credit was 12.4 percent in FY19. Credit to private sector increased by 8.6 percent in FY20 much lower than the targeted growth of 14.8 percent for the year and actual growth of 11.3 percent in FY19. The lower growth in private sector credit may be partly attributable to banks’ adherence to quality credit and COVID -19 lockdown.
The twelve month annual average of general inflation rate in Bangladesh has shown an uptrend in FY20. It marginally increased from 5.5 percent in FY19 to 5.7 percent in FY20. The increasing trend in average inflation rate is mainly due to uncertainties emanated from COVID-19 pandemic and disruptions in supply chain. Increased consumer prices in the world market and weather related shocks also contributed to higher trend in domestic price level. However, core inflation (which excludes prices of food and energy) rate decreased to 5.1 percent in June 2020 from 5.7 percent in June 2019.
Global trade experienced a sharp decline of -11.9 percent in 2020 compared to that in the previous year due to weaker demand for goods and services and limited cross border tourism and supply dislocations. In line with this, the major external sector indicators in Bangladesh also depicted a downward trend during FY20. Export earnings drastically decreased by 16.9 percent to USD 33674.1 million mainly due to COVID-19 pandemic. Readymade garments
DIRECTORS' REPORT
Annual Report 2020
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continued to occupy about more than four fifths of total export receipts in Bangladesh. In the same way, during the same period i.e, in FY20 total import payments also declined by 8.6 percent to USD50691.0 million from USD 55438.5 million in FY19. Comparatively larger decline in export receipts than import payments led to widen trade deficit in FY20. The trade deficit grew by 12.8 percent to USD 17861 million in FY20 as compared to the deficit of USD 15835.0 million in FY19. The deficit in both services account and primary income account decreased. However, secondary income increased significantly by 11.1 percent. As a result of all these developments in the external sector, current account balance declined to USD 4849.0 million in FY20 which was USD 5102.0 million in FY19. But the balances in the capital account and financial account increased. Thus, the net outcome all these made the overall balance a surplus of USD 3655.0 million in FY20 as compared to a smaller surplus of USD 179.0 million in FY19.
The inflow of inward remittances from the Bangladeshi nationals working abroad continued to play a vital role in strengthening the current account balance in the balance of payments. Remittances increased by 10.9 percent USD 18205.01 million in FY20 from USD 16419.63 million in FY19. Due to government incentives, simplification of sending remittance in formal channel and different supportive policy measures regarding remittances helped expatriates to increase inflows again. To ease the formal channel, Bangladesh Bank reduced the security deposit requirement for the exchange houses abroad to establish drawing arrangement with local banks. At present, the commercial banks have 1312 drawing arrangements with more than 334 exchange houses all over the world for collecting remittances. Gross foreign exchange reserves held with the Bangladesh Bank increased to USD 36,037 million at the end of June 2020 which was USD 32,717 million at the end of June 2019. This level of foreign exchange reserves is good enough to cover about eight month’s equivalent of
import payments of the country.
The emergence of Sonali Bank Limited
Sonali Bank was established under the Bangladesh Banks (Nationalization) Order-1972, President’s Order No-26 of 1972, through the merger and nationalization of 1) The National Bank of Pakistan 2) The Bank of Bhawalpur Ltd. and 3) The Premier Bank Ltd. Later on, it was registered as a Public Limited Company under the Company Act, 1994 on 3 June 2007, with the Registrar of Joint Stock Companies And Firms to make it operationally independent. Bangladesh Bank issued the Banking License in favour of the bank on 5 June 2007 under the Bank Company Act, 1991. Sonali Bank Limited took over the business of Sonali Bank on 15 November 2007 with all assets, liabilities, benefits, rights, powers, authorities, privileges, borrowing and responsibility as going concern under a Vendor`s Agreement signed between the Government of the People’s Republic of Bangladesh and Sonali Bank Limited. It is the state-owned and largest commercial bank in the country. It has 1224 local branches, 2 foreign branches, 46 Principle Offices, 16 Regional Offices, 11 GM Offices, 32 Corporate Branches (including Local Office), 48 AD branches, and two subsidiaries named Sonali Exchange Co. Inc. (SECI), USA and Sonali Investment Limited (SIL) in Bangladesh, and two
64
YEAR OF EXCELLENCE
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evsjv‡`‡ki Afz¨`‡qi ci n‡Z †`‡ki A_©bxwZ Ges e¨vswKs †m±‡ii weKvk Gi †ÿ‡Î †mvbvjx e¨vs‡Ki fzwgKv Ab¯^xKvh©| ZrKvjxb evsjv‡`k cybM©V‡b Ges cieZ©x‡Z wk‡ívbœqbmn †`‡ki mvwe©K Dbœqbg~jK Kg©KvÛ Z_v e¨emv evwYR¨ I Avg`vbx ißvbx cÖmv‡i †mvbvjx e¨vsK miKv‡ii mn‡hvMx wn‡m‡e KvR K‡i Avm‡Q| 2020 mvj †k‡l †`‡ki e¨vswKs †m±‡ii †gvU 12,912,215.00 wgwjqb UvKv AvgvbZ Ges 10,015,930.00 wgwjqb UvKv FY I AwMÖg Gi wecix‡Z †mvbvjx e¨vs‡Ki AvgvbZ Ges FY I AwMÖ‡gi cwigvY h_vµ‡g 1,258,786.26 wgwjqb Ges 586,232.72 wgwjqb UvKv, kZKiv wn‡m‡e h_vµ‡g 9.75% I 5.86%| 2020 mv‡j †mvbvjx e¨vsK ‡kÖYxK…Z FY n‡Z 10,501.50 wgwjqb UvKv Av`vq K‡i| †`‡ki †gvU ˆe‡`wkK †iwgU¨vÝ 21,741.83 wgwjqb BDGm Wjv‡ii wecix‡Z †mvbvjx e¨vsK wjwg‡UW Gi Ae`vb 1,436.72 wgwjqb BDGm Wjvi ev 6.61%| D‡jøwLZ eQ‡i †mvbvjx e¨vsK AwMÖg Ki, Dr‡m Ki Ges f¨vU eve` †gvU 122,271.00 wgwjqb UvKv miKvwi †KvlvMv‡i Rgv K‡i‡Q|
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cuywRevRv‡ii ÿz`ª I mvaviY wewb‡qvMKvix‡`i ¯^v_© myiÿvi Rb¨ †mvbvjx evsK wjwg‡UW m¤ú~Y© wbR¯^ A_©vq‡b 2010 mv‡j Ò†mvbvjx Bb‡f÷‡g›U wjwg‡UWÕÕ (SIL) bv‡g GKwU mvewmwWqvix †Kv¤úvbx cÖwZôv K‡i| 20 GwcÖj 2010 mv‡j †Kv¤úvbx AvBb, 1994 Abymv‡i †mvbvjx Bb‡f÷‡g›U wjwg‡UW wbewÜZ nq Ges R‡q›U ÷K †Kv¤úvbxR GÛ dvg©m Gi wbKU wbewÜZ nIqvi ci 22 GwcÖj 2010 ZvwiL †_‡K Gi Kvh©µg ïiæ K‡i| weGmBwm †_‡K 05 AvMó 2010 Zvwi‡L SIL gv‡P©›U e¨vswKs Gi jvB‡mÝ AR©b K‡i| evsjv‡`k e¨vs‡Ki bxwZgvjvi Av‡jv‡K †mvbvjx e¨vsK wjwg‡UW Zvi gv‡P©›U e¨vswKs BDwbU‡K GKwU c„_K mvewmwWqvix †Kv¤úvbx wn‡m‡e †mvbvjx Bb‡f÷‡g›U wjwg‡UW G iƒcvšÍi K‡i| Gi jÿ¨ wQj gv‡P©›U e¨vsK wn‡m‡e c~Y© Kvh©µg cwiPvjbv Kiv hvi g‡a¨ Bmy¨ g¨v‡bR‡g›U,AvÛvi ivBwUs Ges ‡cvU©‡dvwjI g¨v‡bR‡g›U Ab¨Zg| Gi Aby‡gvw`Z g~ja‡bi cwigvY n‡jv 5,000 wgwjqb UvKv Ges cwi‡kvwaZ g~ja‡bi cwigvY n‡jv 2,000 wgwjqb UvKv| eZ©gv‡b SIL Gi XvKvq 4wU kvLv i‡q‡Q|
associates named Sonali Bank (UK) Ltd. and Sonali Intellect Limited. The address of the registered office of the Bank is 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh. Presently the Board of Directors of the Bank consists of 09 (nine) members headed by a Chairman, who have the experiences, background, and education befitting their position.
Sonali Bank Limited- In the Banking Sector of Bangladesh
After the emergence of Bangladesh, the role of Sonali Bank Limited has been crucial in the advancement of the economy and in flourishing banking business. Since the liberation war, Sonali Bank has been working relentlessly to implement government policies in rebuilding Bangladesh in addition to expansion of business, establishment of industries, import-export etc. At the end of 2020, the amount of deposits and loans & advances of Sonali Bank Limited are Tk. 1,258,786.26 million and Tk. 586,232.72 million respectively, which are 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 the banking sector of Bangladesh. During 2020, Sonali Bank recovered Tk. 10,501.50 million from classified loans. As foe inward foreign remittance, Sonali Bank’s contribution is US$ 1,436.72 million which is 6.61% of total foreign remittance of US$ 21,741.83 million of Bangladesh. Moreover, the Bank paid a total of Tk. 122,271.00 million in 2020 as advance tax, tax at source and VAT to the national exchequer.
Subsidiaries of Sonali Bank Limited
Sonali Bank Limited has two 100 percent owned subsidiaries named Sonali Exchange Co. Inc. (SECI) and Sonali Investment Limited (SIL).
Sonali Exchange Co. Inc. (SECI)
A subsidiary company, incorporated on 4 April 1994 under the laws of the state of New York, commenced its operations as an International Money Remitter from 12 December 1994. At present, Sonali Exchange Co. Inc. has 10 branches in 5 states of the USA. The paid up capital of this subsidiary is US$ 950,000.
Sonali Investment Limited (SIL)
To protect the interest of small and common investors in the capital market, SBL has established a wholly-owned subsidiary named ‘Sonali Investment Limited’ in 2010. Sonali Investment Limited was registered under the Company Act 1994 as a public company limited by shares on 20 April 2010 and commenced its operations from 22 April 2010 after the company was registered with the Registrar of Joint Stock Companies and Firms. SIL received a merchant banking license from BSEC on 5 August 2010. In accordance with the guidelines of Bangladesh Bank, SBL has converted its merchant banking unit into a separate subsidiary company under the name ‘Sonali Investment Limited (SIL)’ with the objective of undertaking full-fledged merchant banking operations, namely issue management and underwriting and portfolio management. The authorized capital of the subsidiary is Tk. 5,000 million and paid up capital is Tk. 2,000 million. At present, SIL is operating through 04 (four) branches in Dhaka.
DIRECTORS' REPORT
Annual Report 2020
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Associates of Sonali Bank Limited
Sonali Bank (UK) Limited
With a view to remitting money and providing other financial services to its customers, a company under the name and style Sonali Trade and Finance (UK) Limited was incorporated on 30 June 1999 as an associate under the UK Companies Act 1985. Subsequently the company was allowed to commence its function as a bank from 7 December 2001 by the financial services authority of the UK. The name was changed later on as Sonali Bank (UK) Ltd. and restructured the ownership of the company with 51% share capital owned by the Government of the People’s Republic of Bangladesh and remaining 49% by Sonali Bank Limited. The paid up capital of Sonali Bank (UK) is GBP 61.46 million. The main functions of the associate are to advise, negotiate, confirm L/Cs originating from SBL and other Bangladeshi banks and provide discount facilities against those L/Cs. The company also handles remittance business for SBL and other banks of Bangladesh.
Sonali Intellect Limited
Sonali Intellect Limited was incorporated in Bangladesh as a private limited company on 25 January 2012 under the Companies Act, 1994. The company commenced its business operations on 1 February 2012. The 51% share capital of the company is owned by Polaris Financial Technologies Ltd. India, 35% by Sonali Bank Limited and the remaining 10% & 4% by Bangladesh Commerce Bank Ltd. And Pantho Soft Ltd. respectively. The principal activities of the company are to customize, enhance, modify and implement intellect Core Banking Solution (CBS) 10.0 software in banks in Bangladesh.
Shareholders’ Equity
The shareholders’ equity of the Bank stood at Tk. 85,615.61 million as on 31 December 2020 which was Tk. 68,192.64 million in 2019.
Sl. No.
Shareholder's Equity
Position as of(Tk. in million) Changes
%2020 20191. Paid-Up Capital 45300.00 45300.00 -
2. Statutory reserve 13469.00 12406.20 8.62
3.Other reserve and Revaluation reserve
36494.17 22240.56 64.09
4. Retained earnings (9647.58) (11748.50) 17.80
Total Shareholder's Equity 85615.61 68200.62 25.55
National Network
SBL has a network of branches throughout the country complying with the government policy and for the economic development of the country. All important locations, geographically and from governmental administrative point of view including all Upazillas and remote rural areas of the country have been brought under the network coverage of the Bank. Including two overseas branches, the total number of branches was 1,226 in 2020 of which 701 branches are located in rural areas and 525 branches in urban areas. The overall functions of the branches are supervised and monitored by 74 administrative offices. The
66
YEAR OF EXCELLENCE
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administrative structure comprises 45 divisions under Head Office in Dhaka; 11 General Managers Offices Dhaka-1, Dhaka-2, Chittagong, Khulna, Rajshahi, Barisal, Sylhet, Rangpur, Faridpur, Mymensingh and Comilla; 46 Principal Offices and 16 Regional Offices located at different parts of the country.
International NetworkSBL has taken various initiatives to provide direct banking services to and channel foreign remittance from the expatriate Bangladeshis spread across the globe. The Bank’s associate Sonali Bank (UK) Limited and its 02 branches facilitate foreign trade and remittance business. Its subsidiary in the USA, Sonali Exchange Company Incorporated (SECI) and its 02(two) branches and 08(eight) booths channel remittance to the beneficiaries in the home country safely and swiftly. SBL also has Taka Drawing Arrangement (TDA) with other banks and exchanges so that people living abroad can send their money through proper banking channels to the beneficiaries in the country. Currently, there are 74 Taka Drawing Agency (TDA) with Banks and exchange houses scattered across the world. Besides, the Bank has extended customer services by establishing correspondent relationships with a total of 684 branches/ subsidiaries located in 94 countries in the world. The correspondent relationship has significantly increased the Bank’s foreign exchange and trade business simultaneously. A tabular presentation of foreign correspondents and branches is given below:
Sl.Name of the
countryBranch
ExchangeHouse
TDA RMA
1. Singapore 4 26
2. UK 2 4 26
3. UAE 15 20
4. KSA 8 16
5. Malaysia 6 12
6. Qatar 3 6
7. OMAN 9 4
8. Bahrain 5 3
9. Kuwait 9 8
10. USA 9 3 66
11. INDIA 2 21
12. OTHERS 7 8 461
TOTAL 4 16 74 684
Financial Inclusion
With a view to assisting the government in accelerating the financial inclusion program, SBL is working relentlessly to bring poor and unbanked people under the coverage of the banking system with its enormous branch network in rural and urban areas. In SBL, the total number of accounts under the financial inclusion program stood at 5,141,755 in 2020. Among them, the number of farmer’s accounts reached 1,590,734 at the end of 31 December, 2020. The farmers have been encouraged to open accounts with an initial deposit of only Tk. 10.00. As of 31 December 2020, the number of freedom fighters accounts, school student’s accounts and accounts under social safety net programs
DIRECTORS' REPORT
Annual Report 2020
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8. ¯^”QZv I Revew`wnZv wbwðZ Kivi Rb¨ m¤úªwZ e¨vs‡K ÔAbjvBb Pvjvb †fwiwd‡KkbÕ Pvjy Kiv n‡q‡Q|
were 243,011, 112,106 and 2,885,656 respectively. A large segment of the population, particularly the rural poor people, poor farmers, women entrepreneurs and garment workers have got the access to banking services through SBL. Moreover, various innovative deposit products with lucrative interest rates within the ceiling determined by Bangladesh Bank and credit facilities with attractive rates have been successfully launched to attract deprived segments of the population. Details have been presented in the “Report on Financial Inclusion”.
Information Technology and Online Banking Services
Sonali Bank Limited has successfully turned itself as the largest online Bank in Bangladesh. Since the inauguration of the journey towards automation in 1989, a total of 1224 domestic branches and 2 foreign branches out of 1226 are rendering digitized banking services through Intellect CBS software to the clients of the Bank. Moreover, a mobile app ’’Sonali eWallet’’, ’’Sonali eSheba’’, and transactions with ’’bKash’’ have been introduced considering customers’ need and satisfaction. The Bank also introduced HRMS software, RMS Plus, NPSB, RTGS, BACH, BEFTN, Online Govt. Transaction, Tax Soft., Sonali Sheba, Pension paying Software, CCTV installation etc. At present, 1224 CBS branches have SMS banking service. Registered customers can get their account transaction and balance through SMS. These technology based solutions have placed our Bank in a strong position in terms of technological progression in the banking industry. Regarding IT inclusion, achievements of SBL are as follows:
1. Sonali Bank Limited has become the largest online Bank in Bangladesh by rendering online services through installing intellect CBS software in all of its domestic branches.
2. Sonali Bank Limited launched its own mobile app “Sonali eSheba’’ for providing cashless banking as well as online account opening facility at any branch of this bank for the first time in the country.
3. The Bank’s own “Online Management System” has been launched for selling and encashment of savings certificates through all branches.
4. The Close Circuit Television (CCTV) system has also been installed in 105 ATM Booths.
5. Under the system of the NBR, Sonali Bank e-Payment Portal, Tax, VAT and Customs duty are being paid online . Moreover, since 15 February 2015, printed challan copies, made by this portal, are received at bank counters through ePay Bank Counter.
6. Reporting activities of receipt and payment of Govt. chests are being rendered through online software in 58 chest branches at district level.
7.”Government Transaction System” GTS software/program has been introduced in 643 Treasury branches of the Bank to capture all government transactions.
8. To ensure transparency and accountability, the Bank has recently introduced “Online Challan Verification’’.
68
YEAR OF EXCELLENCE
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9. A web based software, developed in-house named “Remittance Management SystemPlus (RMSPlus)”, has been introduced in 1224 branches for receiving foreign remittance and receiving and making payment of Inland/Local remittance.
10. With a view to expansion of the bank’s business and collecting salaries/fees/charges from different educational institutions, the Bank introduced its own software “Sonali Payment Gateway” through which students/parents can pay their fees/charges from home by transferring funds.
11. The Bank has successfully implemented Bangladesh Electronic Fund Transfer Network (BEFTN) system in all the branches.
12. ‘Sonali Bank Clearing System (SBCS)’ has been deployed in 105 branches of Dhaka city for the automated inter branch clearing since 9 January 2014.
13. Trade finance module has already been incorporated in CBS and currently 43 out of 48 Authorised Dealer Branches of SBL are operating their business using this module.
14. Considering the easy availability and use of cell phones, the bank has introduced SMS banking service to cater to the ever evolving financial needs of our esteemed customers.
Sonali eSheba and Sonali eWallet
During the COVID 19 pandemic in 2020, for the welfare of the country and the mass people Sonali Bank Limited introduced ’’Sonali eSheba’’ through which the clients can open accounts even from their home. Continuously the bank introduced ’’Sonali eWallet’’. This wallet helps the clients to make transactions to any accounts, pay the bills and taxes etc.
Whistle Blower
Recently Sonali Bank Limited has introduced “Whistle Blower Policy” for the first time in the banking history of Bangladesh. Certainly it is very important and bold decision in implementing the National Integrity and the banking activities corruptionless. An Ombudsman has important role in implementing Whistle Blower Policy. At present, A Director is in charge of the Ombudsman.
Green FinanceAs climate change has become a burning question over the last decade, SBL management, fully aware of the potential risk looming large over mankind, has taken necessary steps to mitigate the risks involving this issue. Complying with Bangladesh Banks’ green banking policy, SBL is financing environment friendly projects (such as renewable energy projects, clean water supply projects, waste treatment plant, solid waste disposal plant etc.) to ensure ecological balance. For indirect Green Finance, the 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. Till 2020, Sonali Bank Limited directly financed Tk. 53.60 million in various projects. Moreover, CBS has been installed in all 1224 domestic branches of the bank. SBL, from both ethical and regulatory compliance standpoint, does not finance any environmentally harmful projects.
DIRECTORS' REPORT
Annual Report 2020
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µt bs ev‡RU LvZ2020 ev‡RU
2020 cÖK…Z
01.
ivR¯^ (K) Avq(L) e¨q
84288.0063259.25
84777.8963252.93
02.
g~jab (K) Avq(L) e¨q
5.00940.00
-
Islamic BankingSBL is giving priority on Islamic Banking because of its increasing popularity. Primarily Islami Banking was launched successfully with separate windows in 5 branches on 29 June 2010. Subsequently, as per decision of Shariah Supervisory Committee of the Bank, Islami banking window has been launched in another 6 branches in 2019 and 47 branches in 2020 with the approval of Bangladesh Bank. Recently ’’Islami Banking Division’’ has started its activities with an aim to efficiently control and monitor the expansion and operations of Islami Banking and facilitate branches with well researched products and training. At present, 58 Islamic windows are operating in Sonali Bank Limited.
Credit Rating As per Bangladesh Bank’s mandatory requirement, the credit rating of SBL was done by the Credit Rating Information and Services Limited(CRISL)on the basis of the audited Balance Sheet as of 31 December 2019 and other relevant documents. The rating agency awarded the following ratings:
Surveillance Rating
Upto November 2021
Upto June 2020
LongTerm
ShortTerm
LongTerm
ShortTerm
As Government Supported Bank
AAA ST-1 AAA ST-1
Without Govt. Supported Bank
A ST-2 A ST-2
Outlook Stable Stable
Board and Other Committee Meetings A total of 36 Board meetings of the Bank were held during the year 2020. Besides, 08 meetings of Board Executive Committee, 08 meetings of Board Audit Committee, 07 meetings of Board Risk Management Committee were held during the year under review.
BANK’S MAIN ACTIVITIES DURING 2020
Budget 2020The Bank’s ‘Annual Budget’ comprising capital budget and revenue budget for the year 2020 was approved by the Board of Directors. The budget provision vis-a-vis the actual outturn under Capital and Revenue heads are shown below:
Capital and Revenue Budget along with actual performance
(Tk. in million)
Sl. No Budget Head2020
Budget2020
Actual
01.
Revenue (a) Income (b) Expenditure
84288.0063259.25
84777.8963252.93
02.
Capital (a) Income (b) Expenditure
5.00940.00
-637.48
70
YEAR OF EXCELLENCE
INDUSTRIAL FINANCE
With a view to achieving economic goals and accelerating the pace of industrial development through implementation of government policies, nm 2020, SBL has sanctioned a total of Tk. 35,869.60 million for term and working capital loans of which 13,082 million as project loan, 21,039.00 million as working capital and 12,150.00 million in electricity
generation under private project. The loans were provided
for establishment of new industrial units and also for
expansion (BMRE) of existing potential units to expand the
industrial base in the country. Credit facilities/disbursement
activities under Industrial Project Financing Division is being
continously carried out through various Industrial Credit
Products/programs including Lease Financing.
Under Financial Assistance Program declared by Hon’ble
Prime Minister due to the adverse effect of COVID 19
pendamic in the economy, SBL has so far sanctioned term
loans of Tk. 12,780.80 million to Biman Bangladesh Airlines
Ltd., the national flag carrier of the country and other
industries under industry and services sector. The Bank has
thus created employment opportunities by sanctioning
the above loans to various industrial units in the year 2020.
These financing activities will contribute towards GDP
growth.
Performance of SME Finance in 2020
According to Bangladesh Bank guidelines, Sonali Bank Limited
emphasizes on SME financing for eliminating poverty by
increasing SME loan flow at economically underdeveloped
areas and to marginal people. Setting up priority based SME
credit policy for women and underprivileged entrepreneurs,
the Bank has been working for the improvement of their
socio-economic condition. The Bank extended term loans
and working capital to different producers, business people
and service providers under this sector.
1) A project on “One Branch One Month One New
Entrepreneur’’ was launched in 2014 for eradication of
poverty by increasing loan flow for unemployed people and
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Thermax Group Typay BFL
DIRECTORS' REPORT
Annual Report 2020
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Micro Credit in Bangladesh
economically underdeveloped areas. Under this project, Tk.
74,401.60 million has been disbursed to a total of 33,586
SME entrepreneurs till 2020.
2) A total of Tk. 53.60 million has been disbursed to the
green sectors (solar energy and biogas plants) under “Sonali
Alo” project and the total number of clients stood at 1,567
as of 31 December 2020.
3) ’’Women Entrepreneurs Development Desk’’ has been
established in the bank and Brochure ’’Nipuna’’ and ’’SME
Loan’’ is distributed to the women entrepreneurs to inform
them of the facilities of the scheme. In this project, the Bank
disbursed Tk. 703.60 million to 821 women entrepreneurs
in 2020.
4) Moreover, Tk. 4.00 million was disbursed to 18 clients in
‘’Cluster’’ financing of the Bank in 2020.
5) Total outstanding volume of SME credit stood at Tk.
71,310.90 million till 2020 which was 12.16% of total loan of
the bank. Overall SME activities will be geared up according
to Bangladesh Bank’s guideline.
Agricultural / Rural Credit
At present, 8 credit programs, namely Special Agricultural Credit (SACP), Sugarcane Cultivation Credit, Pond Fisheries Credit, Special Investment, Farming Credit, Non-crop Off-farming Credit, Social Forestry Credit and Refinance scheme
72
YEAR OF EXCELLENCE
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Credit for Urban Women Micro Enterprize development
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for Milk Production and Artificial Insemination, are being run by the Bank with a view to augmenting agricultural output, creating employment opportunities and generating income of the rural people. SBL intensified its efforts to extend credit facilities to all sections of rural population under those various rural credit programs pertaining to agricultural and off-farming activities. As per Bangladesh Bank’s instruction, Sonali Bank Limited has been providing Agricultural/Rural Credit ranging from 4% to 9% with simple interest rate. Loans are being disbursed to the rural farmers for cultivation of pulses, oil seed, spices and maize at 4% and at 5% interest rate for Refinance Scheme for Milk Production and Artificial Insemination. Moreover, the Bank has launched a new loan program named ‘Amrokunju Unnayan Rin Karmasuchi’ in the seven districts, which are Rajshahi, Naogaon, Natore, Chapainawabganj, Thakurgaon, Dinajpur and Satkhira, to 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.
Micro Credit
The role of micro-credit is widely acclaimed as an effective tool for poverty alleviation, self-employment generation and rural economic development. The Bank has, therefore, been trying its best to finance this sector. At present, as many as 24 projects/programs aimed at alleviating poverty are being financed by the Bank. These programs include, among others, Bank-NGO Linkage Wholesale Credit Program, Loan Program for the Disabled, Swanirvar Bangladesh, different types of credit through BRDB-UCCA, ADB financed Rural Livelihood Project (RLP) in 152 Upazilas, Daridra Bimochan Shahayata Rin Karmasuchi, Rural Small Business and Small Farming Loan Scheme, BARD (Cumilla), Sonali Bank & RDA (Bogra) etc. These were introduced by the Bank to channelize the financial resources for poverty alleviation and socio economic development of the country.
Under the project titled “ Credit for Urban Women Micro Enterprise Development (CUMED)” project, 92 branches of the country including all main branches of the divisional and district headquarters, 26 selected branches in Dhaka city, 2 branches in Chittagong city, 3 branches in Moulvibazar have been disbursing loans, against the target disbursement of Tk. 0.50 million, without collateral security.
Besides, the Micro Entrepreneur Development Credit Program “Unmesh” has been rolling out all over the country. Moreover, in order to make the rural women self-reliant, the Bank has introduced a new loan program named “Jago Nari Grameen Rin” through 250 rural branches all over the country with a provision of collateral-free loan up to Tk. 25,000.00.
SBL is also disbursing loans in “Refinance Scheme for SMEF Tk. 10.00 Account Holder” for the farmers and in “Adarsha Gram Karmasuchi” aimed at alleviating poverty at a sustainable level. The poor professionals of the rural areas are being selected as beneficiaries under this program and provided collateral-free loan up to Tk. 20,000/- with easy terms and conditions.
DIRECTORS' REPORT
Annual Report 2020
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evsjv‡`k e¨vsK wej - - - -
†UªRvwi wej 134867.14 - - 134867.14
wifvm© †i‡cv - - - -
†UªRvwi eÛ 409078.84 - - 409078.84
†¯úkvj eÛ/myKzK - - 5279.45 5279.45
K‡c©v‡iU/cÖvB‡fU eÛ - - 53680.00 53680.00
cÖvBReÛ - - 76.30 76.30
wW‡eÂvi - 5.15 0.75 5.90
†kqvi - 913.42 20145.60 21059.02
wmwKDwiwU wW‡cvwRU (†KvjKvZv kvLv)
- - 9.61 9.61
‰e‡`wkK gy`ªvq wewb‡qvM - - 5088.07 5088.07
‰e‡`wkK kvLv - - 547.12 547.12
me©‡gvU 543945.98 918.57 84826.90 629691.45
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Kg©KZ©v/ Kg©Pvixiv ¯^vaxbfv‡e KvR K‡i wb‡Ri, cÖwZôv‡bi Ges mgv‡Ri
Dbœq‡b f~wgKv ivL‡Q| e¨vs‡Ki gvbe m¤ú` Dbœqb wefvM Kg©KZ©v‡`i e¨vswKs
SBL has recently launched a low interest bearing loan program named “Bicycle Loan Scheme for School Going Students”. This program has already been circulated in all branches of Sonali Bank Limited except Local Office and all corporate branches. This collateral free newly introduced loan upto Tk. 15,000.00 is being provided to the poor school going students with easy terms and conditions. As on 31 December 2020, micro credit of SBL stood at Tk. 12,197.52 million.
Investment Financing
The Treasury Management Division (TMD) of the Bank
oversees the investment financing activities. It deals
in Treasury bills, bonds, debenture, share and related
transactions. The Bank has engaged itself as the primary
dealer in buying and selling of treasury bills and bonds. In
2020, the Bank earned Tk. 40,289.94 million which was Tk.
28,144.09 million in the previous year. The total investment
of the Bank was Tk. 629,691.45 million at the end of 2020.
Major investments were made in Treasury Bills, Treasury
Bonds, Special Bonds, Corporate/Private Bonds, Shares and
Debentures, etc. The sector-wise (Government, Public and
Private) summary position of investment of the Bank as on
31 December, 2019 is shown in the table below:
Sector-wise Investment as on 31 December, 2020
(Tk. in million)
Description Government Public Private Total
Bangladesh Bank Bill
- - - -
Treasury Bills 134867.14 - - 134867.14
Reverse Repo - - - -
Treasury Bonds 409078.84 - - 409078.84
Special Bonds - - 5279.45 5279.45
Corporate/Private Bond
- - 53680.00 53680.00
Prize Bond - - 76.30 76.30
Debentures - 5.15 0.75 5.90
Shares - 913.42 20145.60 21059.02
Security Deposit (Kolkata Br.)
- - 9.61 9.61
Investment in Foreign Currency
- - 5088.07 5088.07
Overseas Branches
- - 547.12 547.12
Total 543945.98 918.57 84826.90 629691.45
Human Capital
The corporate culture at SBL is such that the employees have ample incentives and opportunities and an ambience of trust that drives them to take initiative to actualize their potential to maximize benefits for themselves as well as
74
YEAR OF EXCELLENCE
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for the bank and the society. The HR Division of SBL takes necessary initiatives to keep its employees informed of the latest developments and banking rules and regulations so that they can anticipate and understand the customer’s needs and deliver prompt, efficient, and confident services. As SBL professes that employees are its best assets, it has invested significantly on its development and welfare. It imparted training to as many as 7,152 employees in 2020. As of December 2020, the total number of employees of the bank was 18,918, of which officers and staff were 16,738 and 2,180 respectively.
Customer Care
SBL takes nominal service charges from its customers. Front
desk, women entrepreneurs desk, customer complaint box
and customer care cell have been in place to ensure better
customer services. To cater to the increasing demand of a
large section of the Muslim populace, SBL has introduced
Islamic banking window in 58(Fifty Eight) branches. It is
digitizing its business to provide improved services to its
customers and to make its operations prompt and efficient.
Participation in Social Safety Net Programs
In addition to providing conventional banking services such as industrial finance, import and export finance, general credit, rural credit, remittance, long term loans, the Bank is assisting in implementing 51 safety net programs which in turn are affiliated with some specialized projects of the Government. Through its wide range of rural branches, SBL is disbursing stipends to the students of primary and secondary schools , army pension, old age allowance, widow allowance, destitute woman allowance, salaries and allowances for non-government schools, colleges, madrasas and non-government registered primary schools as well as collecting various utility bills such as telephone bills, gas bills, electricity bills of DESA, DESCO, REB, and WASA. There are 2,885,656 accounts related to the Social Safety Net programs, 243,011 accounts for distributing freedom fighters’ allowance and 2,013,088 accounts for others. The main objective of SBL is to take banking services to the door-steps of the people. The Bank participates in various socio-economic activities and development programs as well as plays a significant role in implementing various plans and programs of the Government. As the state-owned and the largest commercial bank in the country, SBL runs its operations striking a perfect balance between providing almost free services to the scores of people as well as financing the priority sectors of the government as part of its commitment to nation building and making enough profit for fostering the required growth to maintain its comfortable lead in the banking industry.
Capital Market Operation
Through its subsidiary Sonali Investment Limited (SIL), SBL has a significant presence in the capital market of Bangladesh. SIL ensures high quality services to our valuable clients by its professionalism while being fully compliant with the laws of the land. It attaches priority to investors’ interest, their benefit and always intends to protect investors against
DIRECTORS' REPORT
Annual Report 2020
wek¦¯Í Askx`vi n‡Z mÿg n‡q‡Q| Gi eZ©gvb Kvh©µ‡gi g‡a¨ Bmy¨ g¨v‡bR‡g›U,
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Ab¨vb¨ †mev D‡jøL‡hvM¨| eZ©gv‡b GwU cÖavb Kvh©vjqmn 4 wU kvLv (cëb,
wgicyi, DËiv I Lyjbv) Øviv ˆ`bw›`b Kvh©µg cwiPvjbv Ki‡Q| cÖwZôvbwU
gvwR©b FY wn‡m‡e 2,158.58 wgwjqb UvKv weZi‡Yi cvkvcvwk cuywRevRv‡i
wbR¯^ †cvU©dwjI‡Z 934.23 wgwjqb UvKv wewb‡qvM K‡i‡Q|
SuzwK e¨e¯’vcbv
e¨vs‡Ki SuzwK e¨e¯’vcbv wefvM mKj cÖKvi SuzwK m¤úwK©Z KvR wPwýZ, wePvi-
we‡kølY, g~j¨vqb Ges Z`viKx K‡i _v‡K| GKB mv‡_ evsjv‡`k e¨vs‡Ki
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m`m¨ wb‡q cwiPvjbv cl©‡`i SuzwK e¨e¯’vcbv KwgwU MVb Kiv n‡q‡Q|
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B‡Zvg‡a¨, mycvifvBwRs wiwfD cÖ‡mm (SRP) Gi AvIZvq 2017, 2018
I 2019 mvj wfwËK B›Uvibvj K¨vwcUvj GwW‡Kv‡qwm Av‡mm‡g›U cÖ‡mm
(ICAAP) Ges Avbymw½K wjjvw` cÖYqbc~e©K cÖwZ‡e`bmg~n evsjv‡`k e¨vs‡K
†cÖiY Kiv n‡q‡Q Ges 2020 mv‡ji ICAAP Gi KvR cªwµqvaxb i‡q‡Q|
SuywK wfwËK g~jab ch©vßZv e¨e¯’vcbv
evsjv‡`k e¨vs‡Ki wb‡`©kbv †gvZv‡eK 01 Rvbyqvix 2015 ZvwiL n‡Z G e¨vsK Basel-III Gi Kvh©µg ïiæ K‡i A`¨vewa Gi wbqg cwicvjb K‡i e¨vs‡Ki Minimum Capital Requirement (MCR) Ges Capital to
Risk Weighted Asset Ratio (CRAR) Gi cwigvY wbY©q Ki‡Q| Basel-
III bxwZgvjv †gvZv‡eK 2020 mv‡j Capital to Risk Weighted Asset
Ratio (CRAR) Gi cwigvY 10.02% †Z uvwo‡q‡Q hv Zyjbvg~jKfv‡e c~e©eZ©x erm‡i wQj 10.09% †hLv‡b Dfq‡ÿ‡ÎB wbqš¿Yg~jK b~¨bZg cÖ‡qvRb wQj 10%| g~L¨ g~jab (Tier 1 Capital) `uvwo‡q‡Q 48,674.18 wgwjqb UvKv, hv †gvU SuywK wfwËK m¤ú` (RWA) Gi 7.68%| m¤úyiK g~jab (Tier 2
Capital) `uvwo‡q‡Q 14,826.68 wgwjqb UvKv, hv †gvU RWA Gi 2.34%|
market related risks. This is why SIL has become a trusted partner of investors. The current activities of the company include Issue Management, Portfolio Management, Underwriting, Equity Participation and ancillary services related to the capital market. At present, Sonali Investment Limited runs its day-to-day operations from its Head Office and three branches located at Paltan, Uttara and Mirpur. SIL has disbursed, so far, Tk. 2,158.58 million as margin loan and invested Tk. 934.23 million in its own portfolio.
Risk Management
The Risk Management Division of the Bank identifies, analyses, evaluates and supervises all risk related work including control/mitigation of risks as per guidelines and direction of Bangladesh Bank with the approval of the Board of Directors. Recently, a high powered ‘Board Risk Management Committee’ comprising five members of the Board of Directors has been formed as per the directives of Bangladesh Bank to strengthen overall risk management activities.
The Risk Management Division has introduced a Risk Management Checklist (RMC) for obtaining ‘satisfactory’ rating on various segments of core risks through proper implementation of Core Risk Management Guidelines, which is being maintained at all offices/branches of the Bank. Risk Management Division also prepares half yearly “Comprehensive Risk Management Report (CRMR)” and monthly “Risk Management Report (RMR)” to identify, analyze and mitigate the risks relating to bank’s assets, liabilities, liquidity, earnings and submit it to the Risk Management Committee of the Bank as well as to Bangladesh Bank for its regulatory compliance. The division conducts periodic ‘Stress Testing’ to assess Capital to Risk-weighted Asset Ratio (CRAR) of the Bank considering specific shock factors and shock levels. “Core Risk Management Guidelines Implementation Policy” has been introduced in line with the MOU signed with Bangladesh Bank. The Risk Management Division also reviews position of credit rating, abnormal change in AD ratio, recovery position, self-assessment of internal control and other risk factors associated with banking activities.
Meanwhile, the Internal Capital Adequacy Assessment Process (ICAAP) and related Supplementary Document under Supervisory Review Process (SRP) for the year 2017, 2018 and 2019 have been prepared and submitted to Bangladesh Bank. Besides, ICAAP for the year 2020 is also underway.
Risk based Capital Adequacy Management
In line with Bangladesh Bank guidelines for determining Minimum Capital Requirement (MCR) and the Capital to Risk-weighted Asset Ratio (CRAR) for banks, Basel III guidelines have been enforced effective from 01 January 2015. Under Basel-III guidelines, the Capital to Risk-weighted Asset Ratio (CRAR) at the end of 2020 stood at 10.02 percent compared to 10.09 percent of the previous year against the regulatory requirement of minimum 10.0 percent. Core capital (Tier 1 capital) was Tk. 48,674.18 million being 7.68 percent of total Risk Weighted Assets (RWA). Supplementary capital (Tier 2 capital) stood at Tk. 14,826.68 million being 2.34 percent of RWA.
YEAR OF EXCELLENCE
Sonali Bank Limited 76
we¯ÍvwiZfv‡e SuywK wfwËK m¤ú` (RWA), b~¨bZg g~jab ch©vßZv (MCR) Ges g~jab ch©vßZvi AbycvZ (CRAR) wb‡gœ Dc¯’vcb Kiv n‡jv t
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Gov‡bv|
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z FY I BKz¨BwU Abycv‡Z SzuwKhy³ g~jab cwigvc Kiv|
z ch©‡eÿY cÖwµqv ch©v‡jvPbvi Rb¨ bZzb bZzb gvb ˆZix Kiv ( wcjvi-2)
Ges
z cÖwZ‡e`b cÖKv‡ki gva¨‡g mKj‡K AeMZ Kiv (wcjvi-3) BZ¨vw` |
†mvbvjx e¨vsK wjwg‡UW 1jv Rvbyqvix 2015 mvj †_‡K e¨v‡mj-3 ev¯Íevqb
ïiæ K‡i‡Q Ges e¨v‡mj-3 Gi wb‡`©kbvi Av‡jv‡K SzuwKhy³ m¤ú` I g~ja‡bi
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†WBwj cÖwdU ¯‹xg (M) ¯‹zj e¨vswKs ¯‹xg (N) wiUvqvi‡g›U †mwfsm ¯‹xg (O)
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The details of risk weighted assets, minimum capital requirement and the capital adequacy ratio (CRAR) are depicted below:
(Tk. in million)
ParticularsPosition as of Change
(%)2020 2019
Total risk weighted assets
633601.70 526242.30 20.40
Tier-1 Capital 48674.18 45522.76 6.92
Tier-2 Capital 14826.68 7573.65 95.77
Total Capital 63500.86 53096.41 19.60
Minimum Capital requirement
63360.17 52624.23 20.40
Tier-1 capital adequacy ratio
7.68% 8.65% (0.97)
Tier-2 capital adequacy ratio
2.34% 1.44% 0.90
Total capital adequacy ratio
10.02% 10.09% (0.07)
Implementation of BASEL- III in Sonali Bank LimitedTo improve the banking sectors ability to absorb shocks arising from financial and economic stress, whatever the sources, thus reducing the risk of spillover from the financial sector to the real economy, Bangladesh Bank instructed all the scheduled banks in Bangladesh through BRPD circuler no- 18/2014 to implement BASEL-III from 1st January, 2015 to 2019 phase by phase.These new global regulatory and supervisory standards mainly addressed the following areas:
z Raise the quality level of capital to ensure banks are better able to absorb losses on both a going concern and a gone concern basis;
z Increase the risk coverage of the capital framework;
z Introduce leverage ratio to serve as a backstop to the risk-besed capital measure;
z Raise the standards for the supervisory review process (Piller-II); and
z Public disclosures (Piller- III) etc.
Accordingly Sonali Bank Limited has started BASEL-III implementation from January, 2015 and Capital to Risk-weighted Asset Ratio (CRAR) of the Bank is being submitted to Bangladesh Bank as per BASEL- III requirement.
Recent Deposit ProductsTo mobilize more deposit, Bank has introduced several new schemes: (a) Non-resident Deposit Scheme (NRDS) (b) Sonali Bank Daily Profit Scheme (SBDPS) (c) School Banking Scheme (SBS) (d) Retirement Savings Scheme (RSS) (e) Sonali Bank Retirement Savings Scheme (SBRSS) (f) Sonali Bank Millionaire Scheme (SBMS) (g) Triple Benefit Scheme (TBS) (h) Sonali Bank Krisok Savings Scheme (SBKSS) (i)
Capital Adequacy Ratio*
2020 2019 2018 2017 2016
10.0
2%
10.0
9%
10.1
0%
10.3
5%
10.3
3%
DIRECTORS' REPORT
Annual Report 2020
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Ges 586,232.72 wgwjqb UvKv| e¨vs‡Ki Avq 2019 mv‡ji 76,810.20
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e¨vs‡Ki e¨q e„w× †c‡q 63,252.95 wgwjqb UvKvq `uvwo‡q‡Q hv c~e©eZ©x
eQ‡ii 59,709.78 wgwjqb UvKvi Zzjbvq 5.93% †ekx| wbU gybvdv n‡q‡Q
3,234.79 wgwjqb UvKv hv 2019 mv‡j wQj 2,710.05 wgwjqb UvKv|
Avq ch©v‡jvPbv weeiYx
my` Avq
†mvbvjx e¨vsK wjwg‡UW Gi my` Avq 2019 mv‡ji 35,955.02 wgwjqb UvKv †_‡K 11.93% n«vm †c‡q 2020 mv‡j uvwo‡q‡Q 31,666.10 wgwjqb UvKvq| evsjv‡`k e¨vsK KZ©„K 2020 mv‡j F‡Yi my`nv‡ii m‡e©v”P mxgv 9% wba©vi‡Yi cvkvcvwk †kÖYxK„Z FY I AwMÖg †_‡K Av`v‡qi cwigvb n«vm cvIqvq my` Avq n«vm †c‡q‡Q|
my` e¨q
2020 mv‡j e¨vs‡Ki Avgvb‡Zi Ici my` eve` e¨q c~e©eZ©x eQ‡ii Zzjbvq 4.55% e„w× †c‡q `uvwo‡q‡Q 41,906.61 wgwjqb UvKvq| 2019 mv‡j Gi cwigvY wQj 40,082.80 wgwjqb UvKv| my`wenxb I wb¤œ my`evnx AvgvbZ n«vm Ges D”P my`evnx AvgvbZ e„w× cvIqvq my` e¨q e„w× †c‡q‡Q|
wbU my` Avq
2020 mvj †k‡l e¨vs‡Ki wbU my` Avq 2019 mv‡ji Zzjbvq 148.09% n«vm †c‡q FYvZ¡K 10,240.50 wgwjqb UvKvq uvwo‡q‡Q| c~e©eZ©x eQ‡i Gi cwigvY wQj FYvZ¡K 4,127.78 wgwjqb UvKv| g~jZt my` Avq n«vm cvIqvq wbU my` Avq n«vm †c‡q‡Q|
Mudaraba Monthly Profit Scheme (MMPS) (j) Al-Wadeeah Current A/c (AWCA) (k) Mudaraba Savings A/c (MSA) (l) Mudaraba Special Notice Deposit A/c (MSND) (m) Mudaraba Term Deposit A/c (MTDA) (n) Mudaraba Hajj Saving A/c (MHSA) (o) Mudaraba Monthly Profit Scheme (MMPS) (p) Mudaraba Sonali Monthly Deposit Scheme(SMDS) and (q) Sonali Monthly Denmohor Deposit Scheme(SMDDS). As a result, the deposit has increased significantly for the last few years.
Analysis of Business Performance and Financial Position
Positive Business and Profit Growth
SBL with its 1226 branches mobilized deposits of Tk. 1,258,786.26 million and disbursed Tk. 586,232.72 million as loans and advances up to 31 December, 2020. During the year 2020, total income of the Bank was Tk. 84,777.90 million, registering 10.40% increase from previous year’s income which was Tk. 76,810.20 million. The total expenditure stood at Tk. 63,252.95 million in 2020 showing an increase of 5.93 percent as against total expenditure of 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 million in 2019.
Review of Income Statement
(Tk. in million)
Sl. No
Types of Income
Position as of
(Tk. in million)Changes
%2020 2019
1. Interest Income 31666.10 35955.02 (11.93)
2. Investment Income 40289.94 28144.09 43.16
3. Commission/Exchange/ Brokerage
12273.49 11623.39 5.59
4. Other operating Income
550.35 1087.70 49.58
5. Total Income 84779.88 76810.20 10.37
Interest Income
SBL’s interest income stood at Tk. 31,666.10 million in 2020 from Tk. 35,955.02 million in 2019 which is 11.93 percent lower than the previous year. Interest income decreased mainly due to the implementation of the highest ceiling of interest of loans at 9% by Bangladesh Bank as well as decrease of classified loan recovery in 2020.
Interest Expenses
Interest expenses of SBL increased by 4.55 percent to Tk. 41,906.61 million in 2020 from Tk. 40,082.80 million in 2019. Interest expenses increased mainly due to decrease of no cost and low cost deposits and increase of high cost deposits.
Net Interest Income
In 2020, net interest income of SBL decreased by 148.09 percent to negative Tk. 10,240.50 million from negative Tk. 4,127.78 million in 2019. Net interest income decreased mainly due to decrease in interest income of the Bank.
Review of Income Statement
InterestIncome
InvestmentIncome
TotalIncome
Commission/Exchange/Brokerage
OtheroperatingIncome
2020 2019
316
66
.1 40
28
9.9
4
122
73.4
9
55
0.3
5
84
779
.88
35
95
5.0
2
28
144
.09
116
23
.39
108
7.7
768
10.2
78
YEAR OF EXCELLENCE
my` ewnf‚©Z Avq
Kwgkb, G·‡PÄ I Ab¨vb¨ cwiPvjb Avq Gi mgš^‡q MwVZ my` ewnf‚©Z Avq
MZ eQ‡ii 12,711.09 wgwjqb UvKv †_‡K 0.86% e„w× †c‡q‡Q| 2020
mv‡j Gi cwigvY 12,823.84 wgwjqb UvKv|
wewb‡qvM Avq
e¨vs‡Ki wewb‡qvM n‡Z cÖvß Avq 2019 mv‡ji Zzjbvq 43.16% e„w× †c‡q
2020 mv‡j `uvwo‡q‡Q 40,289.94 wgwjqb UvKv| 2019 mv‡j Gi cwigvY
wQj 28,144.09 wgwjqb UvKv|
cwiPvjb e¨q
2020 mv‡j e¨vs‡Ki cwiPvjb e¨q Gi cwigvY `uvwo‡q‡Q 21,346.34 wgwjqb
UvKv; c~e©eZ©x eQ‡i Gi cwigvY wQj 19,626.98 wgwjqb UvKv| G †ÿ‡Î
e„w×i nvi 8.76%| cwiPvjbv cl©‡`i mg‡qvwPZ w`Kwb‡`©kbv Ges e¨vsK
e¨e¯’vcbvi wbweo Z`viwKi d‡j cwiPvjb e¨q wbqš¿‡Y ivLv m¤¢e n‡q‡Q| wb‡¤œ
cwiPvjb e¨‡qi Zzjbvg~jK Ae¯’v D‡jøL Kiv n‡jv t
(wgwjqb UvKvq)
weeiYcwigvb cwieZ©b
%2020 2019
†eZb I fvZvw` 14424.17 13879.89 3.92
fvov, Ki, exgv, we`¨yr BZ¨vw` 1110.08 1225.29 (9.40)
AvBbx LiP 34.10 41.64 (18.11)
WvK, ÷¨v¤ú, †Uwj‡dvb BZ¨vw` 41.15 50.89 (19.14)
Qvcv I gwbnvix Ges weÁvcb e¨q 159.11 198.97 (20.03)
cÖavb wbe©vnx‡`i †eZb I wd 7.81 7.68 1.69
cwiPvjK‡`i wd 3.62 4.88 (25.82)
wbixÿKM‡bi wd 4.28 3.87 10.59
AePq, †givgZ I iÿbv‡eÿb e¨q 793.71 580.47 36.74
Ab¨vb¨ cwiPvjb e¨q 4768.31 3633.40 31.24
†gvU 21346.34 19626.98 8.76
Non-interest Income
Total non-interest income comprising commission, exchange and other operating income of the Bank, increased by 0.86 percent, stood at Tk. 12,823.84 million in 2020 compared to Tk. 12,711.09 million in 2019.
Investment Income
Investment income of the SBL, increased by 43.16 percent,
stood at Tk. 40,289.94 million in 2020 compared to Tk.
28,144.09 million in 2019.
Operating expenses
Total operating expenses of the Bank during 2020 stood
at Tk. 21,346.34 million which was Tk. 19,626.98 million
in 2019. This controlled increase was 8.76% which was
possible due to proper and timely direction of the Board of
Directors and the management of the Bank. The summary
and comparison of operating expenses is given below:
(Tk. in million)
ParticularsPosition as of
Change in %
2020 2019Salary and allowances 14424.17 13879.89 3.92
Rent,taxes,Insurance and Electricity etc.
1110.08 1225.29 (9.40)
Legal Expense 34.10 41.64 (18.11)
Postage, Stamp, Telecommunications
41.15 50.89 (19.14)
Stationary, Printing and Advertisements etc.
159.11 198.97 (20.03)
Chief Executive’s Salary and fees
7.81 7.68 1.69
Director’s Fees 3.62 4.88 (25.82)
Auditor’s Fees 4.28 3.87 10.59
Depreciation, repairs and maintenance
793.71 580.47 36.74
Other Operating Expense 4768.31 3633.40 31.24
Total 21346.34 19626.98 8.76
48%
37%
1%
14%
Interest Income
Investment Income
Commission/Exchange/ Brokerage
Other operatingIncome
Comparison of Revenue
Interest Income
Investment Income
Commission/Exchange/Brokerage
Other operating Income
2020 2019
0% 20% 40% 60% 80% 100%
Comparison of Revenue
DIRECTORS' REPORT
Annual Report 2020
cwiPvjbMZ djvdj
2020 I 2019 mv‡ji cwiPvjbMZ djvd‡ji mvims‡ÿc wb‡¤œ Zz‡j aiv n‡jvt
AvqK‡ii wecix‡Z cÖwfkb
2020 mv‡ji Av‡qi wecix‡Z 505.98 wgwjqb UvKv Ki wnmv‡e cÖwfkb ivLv
n‡q‡Q hv c~e©eZ©x eQ‡i wQj 455.44 wgwjqb UvKv|
Ki cieZ©x gybvdv
2020 mv‡j e¨vs‡Ki Ki cieZ©x gybvdv `uvwo‡q‡Q 3,234.35 wgwjqb UvKv|
2019 mv‡j Gi cwigvY wQj 2,710.05 wgwjqb UvKv| cwiPvjb gybvdv
e¨vcKfv‡e e„w× cvIqvq evsjv‡`k e¨vs‡Ki wb‡`©kbv †gvZv‡eK wewfbœ Lv‡Z
ch©vß cÖwfkb msiÿ‡Yi ciI Ki cieZ©x gybvdv e„w× ‡c‡q‡Q|
Summary of operating resultsThe summary of operating results with the variation between the year 2020 and 2019 is given below:
(Tk. in million)
ParticularsAmount Change
in %2020 2019
Interest income 31666.10 35955.02 (11.93)
Interest Expense 41906.61 40082.80 4.55
Net Int. Income (10240.50) (4127.78) (148.09)
Non-Int. Income 12823.84 12711.10 0.86
Investment Income 40289.94 28144.09 43.16
Total Operating Income 42873.27 36727.41 16.73
Total Operating Expense 21346.34 19626.98 8.76
Profit before Provision 21526.93 17100.43 25.87
Provision for Loans and Advance
11919.32 9377.42 27.09
Provision for diminution in value of investment
(884.22) 1087.69 3.60
Other Provision 5149.67 1882.22 173.60
Profit Before Taxes 5342.15 4753.10 12.38
Provision For Taxation 2107.80 2043.05 3.60
Net Profit after taxation 3234.35 2710.05 18.99
Provision for Income Tax
Provision of Tk. 505.98 million was made to meet current year’s income tax compared to Tk. 455.44 million in the preceding year.
Profit after Tax
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
profit after tax is attributed to increase in operating income
although sufficient provisions against various segments as
per directions of Bangladesh Bank have been kept.
0% 20% 40% 60% 80% 100%
Salary and allowances
Rent.taxes,Insurance and Electricity etc
Legal Expense
Postage,Stamp,Telecommunications
Stationary, Printing and…
Chief Executive’s Salary and fees
Director’s Fees
Auditor’s Fees
Depreciation, repairs and maintenance
Other Operating Expense
Comparison of Operating Expenses 2020 2019
Comparison of Operating Expenses
Salary, allowances and fees
Rent.,taxes,Insurance,
Legal etc
Stationary, Postage,
Stamp etc
Depreciation, repairs and
maintenance
Other Operating Expense
67%
5%
1% 4%
23%
Operating Result2020 2019
TotalOperatingIncome
TotalOperatingExpense
Provisionfor Loans
andAdvance
Other
Provision Provision For
Taxation Net Profit
aftertaxation
42
873
.27
36
727.
41
21 3
46
.34
1 96
26
.98
93
77.4
2
426
5.4
5
29
69
.91
21 0
7.8
20
43
.05
32
34
.35
271
0.0
5
1 1 9
1 9.3
2
YEAR OF EXCELLENCE
Sonali Bank Limited 80
mswewae× wiRvf©
e¨vsK †Kv¤úvbx AvBb, 1991 (ms‡kvwaZ-2018) †gvZv‡eK cwi‡kvwaZ g~ja‡bi mgvb bv nIqv ch©šÍ Ki c~e© gybvdvi 20% Statutory Reserve G msi¶Y Ki‡Z nq| G eQi e¨vs‡Ki Kic~e© gybvdv n‡Z 1,068.43 wgwjqb UvKv D³ wnmv‡e msi¶Y Kiv n‡q‡Q|
mvgvwRK `vqe×Zv Lv‡Z wiRvf©
evsjv‡`k e¨vs‡Ki MvBWjvBÝ †gvZv‡eK 2021 mv‡ji mvgvwRK `vqe×Zv
(CSR) Lv‡Zi LiP †gUv‡bvi Rb¨ 2020 mv‡ji wbU gybvdv n‡Z 103.71
wgwjqb UvKv G Lv‡Z msiÿY Kiv n‡q‡Q| 2020 mv‡j G Lv‡Z †gvU Li‡Pi
cwigvY wQj 18.66 wgwjqb UvKv|
gybvdvi D‡jøL‡hvM¨ m~PKmgyn
2020 Ges 2019 mv‡ji gybvdv wb‡`©kK mgyn wb¤œiƒc:
e¨v‡jÝkxU ch©v‡jvPbv
†gvU m¤ú`
e¨vs‡Ki m¤ú‡`i cwigvY 2019 mv‡ji 1,472,601.35 wgwjqb UvKv n‡Z
8.06% e„w× †c‡q 2020 mv‡j 1,591,233.76 wgwjqb UvKvq DbœxZ
n‡q‡Q| cÖvBgvix wWjvi wnmv‡e wmwKDwiwU I GmGjAvi (SLR) G msi¶‡Yi
D‡Ï‡k¨ iw¶Z ewa©Z Avgvb‡Zi Kvi‡YB m¤ú‡`i G cÖe„w× n‡q‡Q|
Statutory Reserve
As per the Bank Company Act, 1991 (amended in 2018), 20 percent of profit before tax is required to be transferred to Statutory Reserve until the balance of the same reaches to the level of paid up capital. For this purpose, an amount of Tk. 1,068.43 million has been transferred to statutory
Reserve for Corporate Social Responsibility
In line with Bangladesh Bank Guidelines, a total of Tk. 103.71 million has been kept for CSR which has been provided from net profit after tax for the year 2021 to meet Corporate Social Responsibility (CSR) expenses. In 2020, CSR expenses of the Bank were Tk. 18.66 million.
Significant Profitability Ratio
The key profitability indicators of the SBL for the years 2020 and 2019 are highlighted below:
(In Percentage)
ParticularsAmount (%)
Change in %
2020 2019
Return on Investment (ROI) 7.13 5.98 1.15
Non-interest income to total income
62.65 53.19 9.46
Cost income ratio 74.60 74.13 0.47
Profit after tax to total income 4.21 3.53 0.68
Return on assets (ROA) 0.21 0.20 0.01
Return on equity (ROE) 4.21 3.92 0.27
Review of Balance Sheet
Total assets
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 million as on 31 December 2019 registering a positive growth of 8.06 percent. The increase in assets of SBL is largely driven by growth of deposits which are ultimately used in holding of securities or for the SLR purpose as a primary dealer.
Summary of Oparating Result2020 2019
Return onInvestment
(ROI)
Non-interestincome to total
income
Cost incomeratio
Profit after taxto total income
Return onassets(ROA)
Return onequity (ROE)
7.1
3
62
.65 7
4.6
0
4
.21
0.2
1
5.9
8
53
.19
74
.13
3.5
3
4.2
1
3.9
2
0.2
0
CSR activities of SBL CSR activities of SBL
Annual Report 2020
e¨vs‡Ki †gvU m¤ú‡`i mvi-ms‡ÿc wb¤œiƒct
nv‡Z bM` I evsjv‡`k e¨vsK I Gi G‡R›U e¨vs‡K e¨v‡jÝ
31 wW‡m¤^i 2020 Zvwi‡L nv‡Z bM` I evsjv‡`k e¨vsK I Gi G‡R›U e¨vs‡K
e¨v‡jÝ Gi cwigvY `uvwo‡q‡Q 91,102.17 wgwjqb UvKv, hv c~e©eZ©x eQ‡ii
108,764.43 wgwjqb UvKvi Zzjbvq 16.24% Kg| Gi d‡j e¨vs‡Ki bM`
mwÂwZi (CRR) cwigvb e„w× †c‡q G eQi 7.70% G `uvwo‡q‡Q, hv Kgc‡ÿ
4.00% ivLv eva¨Zvg~jK| ZvQvov wewfbœ †Wwjfvix P¨v‡b‡j MÖvnK‡`i Pvwn`v
†gUv‡bvi Rb¨ wbiwew”Qbœ K¨vk mieiv‡niI e¨e¯’v Kiv nq| we¯ÍvwiZ weeiY
AwW‡UW wnmv‡ei 3 bs †bv‡U wea„Z i‡q‡Q|
e¨v‡jÝ DB_ Av`vi e¨vsKm GÛ wdb¨vwÝqvj Bbw÷wUDkb
e¨vs‡Ki ‡jvb I Bb‡f÷‡g‡›Ui Pvwn`v †gUv‡bv Ges SLR G msiÿ‡Yi ci
AwZwi³ dv‡Ûi mwVK e¨envi Ges e¨vs‡Ki gybvdv e„w×i j‡ÿ¨ Ab¨vb¨ e¨vsK
I Avw_©K cÖwZôv‡b dv‡Ûi GKwU Ask Rgv ivLv nq| †UªRvwi I evwY‡R¨
A_©vq‡bi Kvh©µg myôzfv‡e cwiPvjbvi Rb¨ e¨vs‡Ki cÖavb Kvh©vj‡qi †UªRvwi
g¨v‡bR‡g›U wWwfkb KZ…©K †`‡k I †`‡ki evB‡i Aew¯’Z Ab¨vb¨ e¨vsK I
Avw_©K cªwZôv‡b SND Ges PjwZ wnmve cwiPvjbv Kiv nq| wewb‡qvM Ges
FY I AwMÖ‡gi e„w×RwbZ Kvi‡Y Ab¨vb¨ e¨vsK I Avw_©K c&ªwZôv‡b e¨v‡j‡Ýi
cwigvY 2019 mv‡ji 87,160.52 wgwjqb UvKv ‡_‡K 39.99% n«vm †c‡q G
eQi 52,308.81 wgwjqb UvKvq `uvwo‡q‡Q| Gi g‡a¨ 40,680.38 wgwjqb
UvKv evsjv‡`‡ki Ab¨vb¨ e¨vsK I Avw_©K cÖwZôv‡b Ges 11,628.43 wgwjqb
UvKv we‡`kx e¨vs‡K iwÿZ Av‡Q| we¯ÍvwiZ weeiY AwW‡UW wnmv‡ei 4 bs
†bv‡U wea„Z i‡q‡Q|
A summary of assets of SBL is given below:
(Tk. in million)
Particulars 2020 2019Growth
in %
Cash in Hand 7300.87 7691.43 (5.08)
Balance with Bangladesh bank and its agent Bank
83801.30 101073.00 (17.09)
Balance with other Banks and financial Institution
52308.81 87160.52 (39.99)
Money at call and short notice
9031.30 16274.41 (44.51)
Investments 629691.45 500386.89 25.84
Loans and advances 586232.72 551026.29 6.39
Fixed assets 33891.29 33465.56 0.09
Other assets 188976.02 175523.24 7.96
Total assets 1591233.76 1472601.35 8.06
Cash in Hand and Balances with BB and its AgentsAs on 31 December 2020, cash in hand and balances with Bangladesh Bank and its agent banks stood at Tk. 91,102.17 million as against Tk. 108,764.43 million as on 31 December 2019 registering a growth of 16.24 percent. The growth in deposits increased the Cash Reserve Requirement (CRR) which should be currently maintained at 4.00 percent and SBL has maintained 7.70 percent in the year under review. Besides, adequate cash was required to provide uninterrupted cash services to the growing number of customers through multiple delivery channels. Details have been given at notes#3 to the accounts.
Balance with Other Banks and Financial Institutions
A portion of the excess fund, after meeting the requirement to finance loan portfolio and investments including SLR, has been placed with other banks and financial institutions as term deposits for optimizing the utilization of funds and profit of the Bank. In addition, the Treasury Management Division of the Bank has to maintain some special notice deposit (SND) accounts and current deposit (CD) accounts with other banks and financial institutions in and outside the country for smooth functioning of treasury operations and trade finance. Because of simultaneous increase in investment and loans and advances, balances outstanding with other banks and financial institutions decreased to Tk. 52,308.81 million in 2020 from Tk. 87,160.52 million in 2019 registering a negative growth of 39.99 percent. Out of this amount, Tk. 40,680.38 million has been kept in banks and financial institutions in Bangladesh and the rest amount Tk. 11,628.43 million has been kept in foreign banks. Details of balance with other banks and financial institutions are given at notes# 4 to the accounts.
Cash in Hand
Balance with Bangladesh bank
and its agent Bank
Balance with other Banks and
financial Institution
Money at call and short notice
Investments
Loans and advances
Fixed assets
40%
37%
5%
3%1%2%
12%
2020 2019
0% 20% 40% 60% 80% 100%
Cash in Hand
Balance with Bangladesh bankand its agent Bank
Balance with other Banksand financial Institution
Money at call and short notice
Investments
Loans and advances
Fixed assets
Other assets
Summary of Assets
82
YEAR OF EXCELLENCE
gvwb GU Kj Ab kU© †bvwUk
gvwb GU Kj GÛ kU© †bvwUk Gi cwigvY 2020 mv‡j `uvwo‡q‡Q 9,031.30 wgwjqb UvKv hv c~e©eZ©x eQ‡ii 16,274.41 wgwjqb UvKvi Zzjbvq 44.51% Kg|
wewb‡qvMe¨vs‡Ki †gvU wewb‡qvM Gi cwigvY 2019 mv‡ji 500,386.89 wgwjqb UvKv †_‡K 129,304.56 wgwjqb UvKv ev 25.84% e„w× †c‡q 2020 mv‡j
629,691.45 wgwjqb UvKvq `uvwo‡q‡Q| Gi g‡a¨ D‡jøL‡hvM¨ n‡”Q miKvwi
wmwKDwiwU Lv‡Z 550,695.16 wgwjqb UvKv wewb‡qvM, hv †gvU wewb‡qv‡Mi
87.45%| e¨vsK 13% mswewae× Zvij¨ mwÂwZi ¯’‡j 37.02% mwÂwZ
msiÿY K‡i‡Q, hv e¨vs‡Ki kw³gËvi cwiPvqK|
FY I AwMÖg†mvbvjx e¨vsK K…wl, wkí, GmGgB I evwY‡R¨i Drcv`bkxj I AMÖvwaKvi
Lv‡Z A_©vqb Ae¨vnZ †i‡L‡Q| e¨vs‡Ki †gvU m¤ú‡`i eo Ask `Lj K‡i
Av‡Q FY I AwMÖg, hvi w¯’wZ 586,232.72 wgwjqb UvKv ev †gvU m¤ú‡`i
36.83% Ges e„w×i nvi 6.39%| e¨vs‡Ki cÖ`vbK…Z F‡Yi cwigvb 2019
mv‡j wQj 551,026.29 wgwjqb UvKv| RvZxq AMÖvwaKvi gyjK miKvwi,
cvewjK I cÖvB‡fU LvZmgy‡n e¨vsK FY myweav cÖ`vb Ki‡Q| e¨vs‡Ki eZ©gvb
GwW †iwkI 46.57%| 2020 mvj †k‡l ‡kÖYxK…Z FY I AwMÖ‡gi cwigvY
`uvwo‡q‡Q 107,673.90 wgwjqb UvKv, hv c~e©eZ©x eQ‡i wQj 111,993.90
wgwjqb UvKv| bb cvidwg©s F‡Yi cwigvY 2019 mv‡ji 20.32% †_‡K n«vm
†c‡q 18.37% G `uvwo‡q‡Q| we¯ÍvwiZ weeiY wbixwÿZ wnmv‡ei 7 bs †bv‡U
wea„Z i‡q‡Q|
LvZ wfwËK †gvU FY I AwMÖg(wgwjqb UvKvq)
µ: bs
FY I AwMÖ‡gi LvZmgy‡ni bvg
2020 2019 cwieZ©b (%)
1 K…wl 46606.89 50387.65 (7.50)
2 gvB‡µv †µwWU 12197.52 12117.31 0.66
3 wkí FY 70902.27 74296.59 (4.57)
4 K…wlwfwËK wkí cÖKí 57427.94 70603.19 (18.66)
5 AvšÍR©vwZK evwYR¨ 91021.66 94602.39 (3.79)
6 Gm Gg B A_©vqb 71310.90 22363.11 218.88
7 mvaviY FY I Ab¨vb¨ 186129.32 172374.25 7.98
8 evsjv‡`k wegvb †jvb 50636.22 54281.80 (6.72)
me©‡gvU 586232.72 551026.29 6.39
Money at Call on Short Notice
Money at call and short notice decreased by 44.51 percent to Tk. 9,031.30 million at the end of 2020 compared to Tk. 16,274.41 million at the end of 2019.
Investments
The Bank’s total investments stood at Tk. 629,691.45 million 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 investments mainly include Government securities of Tk. 550,695.16 million or 87.45 percent of total investments maintained as a primary dealer in addition to cover SLR requirement. In place of 13 percent SLR, SBL has maintained 37.02 percent with Bangladesh Bank which is an indication of the strength of the Bank.
Loans and Advances Loans and advances constitute the largest portion in asset side of SBL’s Balance Sheet which was Tk. 586,232.72 million or 36.83 percent of total assets in 2020. SBL’s loans and advances increased by 6.39 percent from Tk. 551,026.29 million in 2019 to Tk. 586,232.72 million in 2020. SBL has continued its lending operations in productive and priority sectors covering agriculture, industry, SME, trade and commerce. The Bank has extended credit to Government, public and private sectors in line with national priority. The percentage of total loans and advances against total deposit (AD ratio) is 46.57%. Details of loans and advances are given at notes# 7 to the accounts. The amount of classified loans and advances stood at Tk. 107,673.90 million in 2020 as against Tk. 111,993.90 million in 2019. Percentage of non-performing loans of SBL was 18.37 in 2020 which was 20.32 percent in 2019.
Composition of Total Loans and Advances of the SBL
(Tk. in million)
Sl.Types of Loans and
Advances2020 2019
Change In %
1Agricultural/Rural Credit
46606.89 50387.65 (7.50)
2 Micro Credit 12197.52 12117.31 0.66
3 Industrial Credit 70902.27 74296.59 (4.57)
4Agro-based Industrial Credit
57427.94 70603.19 (18.66)
5 International Trade 91021.66 94602.39 (3.79)
6 SME Finance 71310.90 22363.11 218.88
7General Advance & Others
186129.32 172374.25 7.98
8Bangladesh Biman Loan
50636.22 54281.80 (6.72)
Total 586232.72 551026.29 6.39
DIRECTORS' REPORT
Annual Report 2020
bZzb †cÖvWv±: FY I AwMÖg
FY I AwMÖg e„w×i j‡ÿ¨ mv¤úªwZK mg‡q e¨vs‡Ki D™¢vweZ bZzb FY
†cÖvWv±¸‡jv n‡jv: (K) evB mvB‡Kj †jvb ¯‹xg di ¯‹zj †Mvwqs ÷z‡W›Um (L)
¯§j GÛ wgwWqvg G›UvicÖvBR (GmGgB) †jvb (M) †¯úkvj ¯§j †jvb (N)
iæivj ¯§j dvwg©s †jvb (O) †cvfvwU© Gwjwf‡qkb Gwm÷¨v›U †cÖvMÖvg (P) cÖevmx
Kg©ms¯’vb FY cÖKí (Q) wkÿv FY (R) Rv‡Mv bvix MÖvgxY FY (S) gyw³‡hv×v
FY (T) d‡ib GWz‡Kkb †jvb †cÖvMÖvg (U) nvDR‡nvì wWD‡iej ¯‹xg AvÛvi
evB gyqv¾vj †gvW BZ¨vw`|
mvaviY FY
wewfbœ cvewjK I cÖvB‡fU †m±‡ii cÖwZôvb¸‡jv‡Z FY myweav cÖ`v‡bi gva¨‡g
†mvbvjx e¨vsK RvZxq A_©bxwZ‡Z we‡kl Ae`vb †i‡L P‡j‡Q| mvaviY FY
Lv‡Z e¨vsK 2020 mv‡j †gvU 45,400.00 wgwjqb UvKv FY weZiY K‡i‡Q|
2019 mv‡j FY weZi‡bi cwigvY wQj 38,907.00 wgwjqb UvKv| G Lv‡Z
†kÖYxK…Z FY n‡Z Av`vq n‡q‡Q 2,230.00 wgwjqb UvKv hvi cwigvY 2019
mv‡j wQj 2,810.80 wgwjqb UvKv|
e¨vs‡Ki mvaviY FY Lv‡Zi mvwe©K Ae¯’v wb¤œiƒct
(wgwjqb UvKvq)
µ: bs wk‡ivbvg 2020 2019cwieZ©b (%)
1 †gvU w¯’wZ 158750 142860 10.01
2 †gvU weZiY 45400 45770 (0.81)
3 †gvU Av`vq 2230 6010 (62.90)
K…wlwfwËK wkí FY cÖKí
mvwe©Kfv‡e †`‡ki †UKmB Av_©-mvgvwRK Dbœq‡bi j‡ÿ¨ †`‡ki K…wl Lv‡Zi
Dbœq‡b †mvbvjx e¨vsK wjwg‡UW K…wlwfwËK wkí FY cÖK‡íi Aax‡b K…wlwfwËK
wk‡í FY myweav cÖ`vb Ki‡Q| 2020 mv‡j G Lv‡Z e¨vsK me©‡gvU 4,203.80
wgwjqb UvKv FY weZiY K‡i‡Q Ges Ae‡jvcbmn wewfbœ K…wlwfwËK cÖKímgyn
n‡Z 1,523.90 wgwjqb UvKv Av`vq K‡i‡Q| Av_©-mvgvwRK Dbœq‡b e¨vsK
Zvi mywbw`©ó 120wU kvLvi gva¨‡g mnR k‡Z© cÖKí FY cÖ`vb Ki‡Q| ZvQvov
e¨vs‡Ki cÖvq mKj kvLv n‡Z G cÖK‡íi wkí Lv‡Z PjwZ gyjab FY weZiY
Kiv n‡”Q| Zvi g‡a¨ we‡RGgwmÕi Aax‡b 5wU RyU wgj I 21wU †emiKvix RyU
wgj I RyU w¯úwbs wg‡j D‡jøL‡hvM¨ cwigvY FY weZiY Kiv n‡q‡Q| 2020
mvj ch©šÍ G Lv‡Z FY w¯’wZi cwigvb 57,427.94 wgwjqb UvKv|
†kÖYxK…Z FY Av`vq Kvh©µg
2020 mv‡j e¨vs‡Ki †kÖYxK…Z F‡Yi cwigvY `uvwo‡q‡Q 107,673.90
wgwjqb UvKv A_©vr e¨vs‡Ki †gvU FY I AwMÖg 586,232.72 wgwjqb UvKvi
18.37%| 2019 mv‡j †gvU 551,026.29 wgwjqb UvKvi FY I AwMÖ‡gi
g‡a¨ 111,993.90 wgwjqb UvKv ev 20.32% †kÖYxK…Z wQj| †kÖYxK…Z I
New Products: Loans and Advances
To accelerate the rate of credit growth, some new loan/investment products were introduced by the Bank, namely (a) Bicycle Loan Scheme for School Going Students (b) Small and Medium Enterprise (SME) Loan (c) Special Small Loan (d) Rural Small Farming Loan (e) Rural Small Business Loan (f) Poverty Alleviation Assistance Programme (g) Probashi Karmasangsthan Rin Prokalpo (h) Education Loan (i) Jago Nari Grameen Rin (j) Term loan to Freedom Fighters (k) Foreign Education Loan Program (FELP) (l) Household Durable Scheme under Bai-Muazzal Mode etc.
General Credits
SBL is playing a vital role in the national economy by extending various credit facilities to both public and private sector organizations and entities. In the year 2020, the Bank disbursed loans amounting to Tk. 45,400.00 million to the private sector which was Tk. 38,907.00 million in 2019 under the general credit head. On the other hand, classified loans under general credit amounting to Tk. 2,230.00 million have been recovered during the year which was Tk. 2,810.80 million in 2019. A tabular presentation shows the overall position of General Credit of the Bank.
A tabular presentation shows the overall position of General Credit of the Bank.
(Tk. in million)
Sl. Particulars 2020 2019Change
In %
1 Total Outstanding 158750 142860 10.01
2 Total Disbursement 45400 45770 (0.81)
3 Total Recovery 2230 6010 (62.90)
Agro-based Industrial Finance Program
To ensure the country’s agricultural development as well as overall socio-economic sustainability, Sonali Bank Limited has extended credit facilities to the agro-based industries under agro-based industrial sector financing scheme. In the year 2020, SBL disbursed Tk. 4,203.80 million and recovered Tk. 1,523.90 million including write-off loans from different agro-based projects. The Bank is extending project loans on simple terms and conditions through 120 designated branches for improvement of socio-economic conditions. Besides, working capital loans to industries are also being disbursed by almost all the branches throughout the country. It may be mentioned that a large amount of loan has been disbursed to 5 jute mills under BJMC and 21 private jute mills and jute spinning mills. The amount of outstanding loan stood Tk. 57,427.94 million in 2020.
Classified Loan Recovery Program
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. 586,232.72 million as on 31 December, 2020. The amount of the classified loan was Tk. 111,993.90 million (20.32 percent of bank’s total loan) against total outstanding loans and advance of Tk. 551,026.29 million in 2019. The amount
84
YEAR OF EXCELLENCE
Ae‡jvcbK…Z FY n‡Z 2020 mv‡j Av`v‡qi cwigvY h_vµ‡g 10,501.50
wgwjqb UvKv Ges 544.40 wgwjqb UvKv| eQ‡ii ïiæ‡ZB Av`vj‡Zi evwn‡i
Av‡cvm idvi wfwˇZ Av`vq, ewa©Z my` gIKzd myweav Ges evsjv‡`k e¨vs‡Ki
cwjwm I A_© gš¿Yvjq Gi MvBWjvBÝ †gvZv‡eK wiwmwWDjKi‡Yi gva¨‡g
bb-cvidwg©s †jvb n‡Z Av`v‡qi Kvh©µg †Rvi`vi Kiv nq| wb‡¤œ wewfbœ
Av`vj‡Zi gva¨‡g 2020 I 2019 mvj ch©šÍ wewfbœ F‡Yi wecix‡Z gvgjvi
Ae¯’v Zz‡j aiv n‡jvt
gvgjvi Ae¯’v
µ: bs
Av`vj‡Zi bvg
gvgjvi msL¨v2020
gvgjvi msL¨v2019
2020 mv‡j Av`vq
msL¨v cwigvb msL¨v cwigvb msL¨v cwigvb
1 A_©FY Av`vjZ 4484 236936.90 3981 209385.50 442 44058.70
2 mvwU©wd‡KU Av`vjZ 14556 782.10 13978 738.00 1209 60.80
3 ‡`Dwjqv Av`vjZ 01 1.10 01 1.10 -- -
4 Ab¨vb¨ Av`vjZ 977 40490.40 882 39683.30 59 45.20
me©‡gvU 20018 278210.50 18842 249810.90 1710 44164.70
`vq‡`bvi mvi ms‡ÿc (wgwjqb UvKvq)
µ: bs
wk‡ivbvg 2020 2019 cwieZ©b(%)
1Ab¨vb¨ e¨vsK I Avw_©K cÖwZôvb n‡Z avi
549.25 604.18 (9.09)
2 †gvU AvgvbZ 1258786.26 1158787.78 8.63
3 Ab¨vb¨ †`bv 246282.64 245016.75 0.34
4 †gvU †`bv 1505618.16 1404408.71 7.22
Ab¨vb¨ e¨vsK, Avw_©K cÖwZôvb Ges G‡R›U n‡Z avi
2020 mv‡j evsjv‡`k e¨vsK Gi cyb:A_©vqb Gi AvIZvq †mvbvjx e¨vsK
wjwg‡UW‡K 549.25 wgwjqb UvKv avi †`qv n‡q‡Q| Gi g‡a¨ 549.18
wgwjqb UvKv cvU Lv‡Z cyb:A_©vqb Ges Aewkó UvKv RHFG †cÖv‡R‡±
cyb:A_©vqb Gi Rb¨ avi †`qv n‡q‡Q| GQvov †`‡ki †fZ‡i I evB‡i Ab¨
†Kvb cÖwZôv‡bi wbKU e¨vs‡Ki †Kvb avi †bB| 2019 mv‡j e¨vs‡Ki av‡ii
cwigvY wQj 604.18 wgwjqb UvKv|
AvgvbZ
2019 mv‡ji 1,158,787.78 wgwjqb UvKv n‡Z 8.63% ev 99,998.48
wgwjqb UvKv e„w× †c‡q 2020 mv‡j e¨vs‡Ki †gvU Avgvb‡Zi cwigvY uvwo‡q‡Q
1,258,786.26 wgwjqb UvKv| †gvU Avgvb‡Zi g‡a¨ mePvB‡Z ¸iæZ¡c~Y©
of recovery against classified and written off loans in 2020 are Tk. 10,501.50 million and Tk. 544.40 million respectively. The Bank made all out efforts to recover non-performing loans by strengthening recovery measures like outside court settlement, extending interest exemption facilities and rescheduling as per Bangladesh Bank policies and Ministry of Finance’s guidelines. Table below shows the status of litigation in 2020 and in 2019 against the defaulters and the amount recovered against classified loans:
Litigation Status
Sl.Name of the
Court
Outstanding of suits as on 2020
Outstanding of suits as on 2019
Disposal / Recovery in 2017
Number Amount Number Amount Number Amount
1 Artharin Adalat 4484 236936.90 3981 209385.50 442 44058.70
2 Certificate Adalat 14556 782.10 13978 738.00 1209 60.80
3 Dewlia Adalat 01 1.10 01 1.10 -- -
4 Other Adalat 977 40490.40 882 39683.30 59 45.20
Total 20018 278210.50 18842 249810.90 1710 44164.70
Summary of Liabilities
(Tk. in million)
Sl. Particulars 2020 2019 Growth%
1
Borrowings other Banks and financial institutions and agents
549.25 604.18 (9.09)
2 Total deposits 1258786.26 1158787.78 8.63
3 Other Liabilities 246282.64 245016.78 0.34
4 Total Liabilities 1505618.16 1404408.74 7.22
Borrowings from other banks, Financial Institutions and Agents
Sonali Bank Limited has been given an amount of Tk.
549.25 million only by Bangladesh Bank for refinance in
2020 of which Tk. 549.18 million for refinance against jute
sector and rest of the amount for refinance against RHFG
project. Except these, it has no borrowing inside or outside
Bangladesh. The borrowed amount was Tk. 604.18 million
in 2019.
Deposits
The total deposit of the Bank as on 31 December, 2020
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
DIRECTORS' REPORT
Annual Report 2020
PjwZ Avgvb‡Zi cwigvY 2019 mv‡ji 242,286 wgwjqb UvKv n‡Z 0.30%
e„w× †c‡q 243,012 wgwjqb UvKvq DbœxZ n‡q‡Q| LvZIqvix Avgvb‡Zi
cwigvY, cÖe„w× I wgkÖY wb‡¤œ cÖ`wk©Z n‡jv|
(wgwjqb UvKvq)
µ: bs LvZ 2020 2019 cwieZ©Y (%)
1 PjwZ AvgvbZ I Ab¨vb¨ 243012 242286 0.30
2 wejm †c‡qej 11043 10910 1.22
3 mÂqx AvgvbZ 451471 387366 16.55
4†¯úkvj †bvwUk wW‡cvwRU (SND)
166737 134843 23.65
5 wd·W wW‡cvwRU (wW‡cvwRU ¯‹xg mn) 386523 383383 0.82
†gvU 1258786 1158788 8.63
g~jZ †`ke¨vcx we Í…Z kvLv, AbjvBb †mev Pvjyi gva¨‡g MÖvnK †mevi
gv‡bvbœqb, GwUGg mvwf©m PvjyKiY Ges †iwgU¨v‡Ýi UvKv‡K wePÿYZvi mv‡_
¯^í‡gqvw` I `xN©‡gqvw` Avgvb‡Z iƒcvšÍi Ges bZzb AvgvbZ †cÖvWv± cÖeZ©‡bi
Kvi‡YB Avgvb‡Zi G cÖe„w× N‡U‡Q| c~‡e©i eQi¸‡jvi b¨vq 2020 mv‡jI
Avgvb‡Zi g~j LvZ wd·W wW‡cvwRU hvi cwigvY †gvU Avgvb‡Zi 30.71% ev
386,523 wgwjqb UvKv| GQvov mÂqx Avgvb‡Zi cwigvY 451,471 wgwjqb
UvKv hv 2019 mv‡ji 387,366 wgwjqb n‡Z 16.55% e„w× †c‡q‡Q Ges
GwU g~j Avgvb‡Zi 35.87%| wejm †c‡qej Ges †¯úkvj †bvwUk wW‡cvwR‡Ui
cwigvb 2019 mv‡j wQj h_vµ‡g 10,910 wgwjqb UvKv I 134,843 wgwjqb
UvKv, hv 2020 mv‡j `uvwo‡q‡Q h_vµ‡g 1.22% I 23.65% e„w× †c‡q
11,043 wgwjqb I 166,737 wgwjqb UvKvq `uvwo‡q‡Q|
Avg`vwb-ißvwb e¨emv
2020 mv‡j e¨vs‡Ki Avg`vwb I ißvwb e¨emvq A_©vq‡bi cwigvY h_vµ‡g
165,550.00 wgwjqb UvKv Ges 25,160.00 wgwjqb UvKv| c~e©eZ©x eQ‡i
Gi cwigvY wQj h_vµ‡g 255,970.00 wgwjqb UvKv Ges 25,670.00
wgwjqb UvKv| ˆe‡`wkK †iwgU¨vÝmn †gvU ˆe‡`wkK †jb‡`‡bi cwigvY 2020
mv‡j `uvwo‡q‡Q 373,318.70 wgwjqb UvKv| 2019 mv‡j Gi cwigvb wQj
461,273.00 wgwjqb UvKv|
2020 I 2019 mv‡ji AvšÍR©vwZK e¨emv‡qi ZzjbvgyjK wPÎ
the preceding year. Most importantly, current deposit and
other accounts stood at Tk. 243,010 million which was Tk.
242,286 million in 2019. The position of deposit, growth of
deposit and deposit mix are given below:
(Tk. in million)
Sl. Type 2020 2019Change
(%)
1Current Deposit & Other Accounts
243012 242286 0.30
2 Bills payables 11043 10910 1.22
3 Savings Deposits 451471 387366 16.55
4Special Notice Deposit (SND)
166737 134843 23.65
5Fixed Deposits (Including Deposit Schemes)
386523 383383 0.82
Total 1258786 1158788 8.63
The growth in deposits was attributed to the largest branch network, improvement of service standard by introducing online banking, expanding ATM networks and efficient channeling of remittance which was partially converted into short and long term deposits, launching new deposit products, etc. As in the previous year, fixed deposits constituted the main component of the deposits representing 30.71 percent of total deposits in 2020. After fixed deposits, the savings deposit stood at Tk. 451,471 million in 2020 which was Tk. 387,366 million in 2019 showing 16.55 percent growth and accounted for 35.87 percent of the total deposits. Bills payable and Special Notice deposits stood at Tk. 11,043 million and Tk. 166,737 million respectively in 2020 which was Tk. 10,910 million and Tk. 134,843 million in 2019 meaning 1.22 percent and 23.65 percent growth respectively.
Import and Export
The total import and export businesses handled by the Bank in 2020 stood at Tk. 165,550.00 million and Tk. 25,160.00 million respectively compared to Tk. 255,970.00 million and Tk. 25,670.00 million respectively in 2019. The total amount of foreign exchange transactions handling including foreign remittance of the Bank for the year 2020 stood at Tk. 373,318.70 million which was Tk. 461,273.00 million in 2019.
Comparative Foreign Trade Position during 2020 and 2019 :
(Tk. in million)
Sl. Particulars 2020 2019Change
(%)
1 Total Import 165550.00 255970.00 (35.32)
2 Total Export 25160.00 25670.00 (1.99)
3Inward Remittance (including WES)
129055.60 111483.00 15.76
4Outward Remittance (including WES)
53553.10 68150.00 (21.42)
Total 373318.70 461273.00 (19.07)
Comparative Foreign Trade Position2020 2019
Total Export
251 6
0.0
0
2567
0.0
0
Total Import
1 655
50.0
0 2559
70.0
0
Inward Remittance (including
WES)
1 290
55.6
0
1 1 1
483.
00
Outward Remittance (including
WES)
5355
3.10
681 5
0.0
0
86
YEAR OF EXCELLENCE
jf¨vsk †NvlYv
Retained Earnings FYvZ¡K nIqvq c~e©eZ©x eQ‡ii b¨vq G e¨vsK KZ©„K
2020 mv‡ji Rb¨ †Kvb jf¨vsk †NvlYv Kiv nqwb|
Ad-e¨v‡jÝ kxU G·‡cvRvim
2020 mvj †k‡l e¨vs‡Ki Off-Balance Sheet Exposures Gi cwigvY 2019 mv‡ji 1,022,368.27 wgwjqb UvKv n‡Z mvgvb¨ n«vm †c‡q 949,413.07 wgwjqb UvKvq `uvwo‡q‡Q|
Ad-e¨v‡jÝ kxU G·‡cvRvim Gi mvims‡ÿc wb¤œiƒct (wgwjqb UvKvq)
weeiY cwigvb2020 2019
e¨vsK M¨vivw›U 7474.86 8012.30
AcwieZ©wbq FYcÎ 936600.21 1007769.83
wej di Kv‡jKkb 5338.00 6586.14
Ab¨vb¨ KbwUb‡RwÝ `vq - - †gvU 949413.07 1022368.27
`xN©‡gqv`x ‡ckvMZ `ÿZv Dbœq‡b gvbe m¤ú` cwiKíbv
`xN©‡gqv`x wek¦vm I m¤úK©- G `ywU KvVv‡gv‡K wfwË K‡i e¨vswKs ‡ckvq
†ckvMZ `ÿZv AR©‡bi j‡ÿ¨ †mvbvjx e¨vsK wjwg‡U‡W gvbe m¤ú` Dbœqb
cwiKíbv MÖnY Kiv n‡q‡Q| e¨vs‡Ki 49 eQ‡ii †ckvMZ cwi‡ek Kg©xevwnbxi
AšÍwb©wnZ ˆewkó¨ cÖKv‡ki h‡_ó my‡hvM m„wó K‡i‡Q hvi gva¨‡g Zviv D‡`¨vMx
n‡q Ges `vwqZ¡ wb‡q wb‡R‡`i I mgv‡Ri DbœwZi Rb¨ KvR Ki‡Z cv‡i|
e¨vsK g¨v‡bR‡g›U Ges Kg©xevwnbx h_vh_fv‡e `vwqZ¡ cvj‡bi ga¨ w`‡q
djvdj AR©‡bi j‡ÿ¨ GKm‡½ cvi¯úwiK `vwqZ¡ mnKv‡i Kg©m¤úv`b K‡i
_v‡K| e¨vs‡Ki cl©` bvix cyiæl wbwe©‡k‡l Kg©`ÿZv I gvbe m¤ú` Dbœq‡bi
j‡ÿ¨ †ek wKQz cÖkvmwbK bxwZ MÖnY K‡i‡Qb| Zvi g‡a¨ D‡jøL‡hvM¨ n‡jv:
ms‡kvwaZ AM©v‡bvMÖvg, bZzb mvwf©m iæj, ‡hvM¨Zvi wfwˇZ c‡`vbœwZ, ¯^”Q
wb‡qvM I e`jx cÖwµqv, Kg©KZv©-Kg©Pvix‡`i Kj¨vY I `ÿZv AR©‡b ch©vß
cÖwkÿY myweav BZ¨vw`| eZ©gv‡b †mvbvjx e¨vs‡Ki †gvU Rbe‡ji cwigvY
18,918 Rb| Gi g‡a¨ Kg©KZ©v I Kg©Pvixi msL¨v h_vµ‡g 14,671 Rb I
2,600 Rb| 2020 mv‡j e¨vsK Zvi gvbe m¤ú`‡K Drcv`bgyLx wn‡m‡e M‡o
†Zvjvi Rb¨ 27.11 wgwjqb UvKv wewb‡qvM K‡i‡Q|
evsjv‡`k e¨vs‡Ki mv‡_ ¯^vÿwiZ (MOU) Gi wb‡`©kbv I djvd‡ji me©‡kl cwiw¯’wZ
weMZ 2013 mv‡ji 3 b‡f¤^i evsjv‡`k e¨vs‡Ki mv‡_ †mvbvjx e¨vsK
wjwg‡UW Gi AwW‡UW e¨v‡jÝkxU h_vmg‡q Dc¯’vcb, FY I AwMÖ‡gi cÖe„w×
wbw`©ó gvÎvq mxgve×KiY, cwiPvjb e¨q n«vmKiY, †kÖYxweb¨vwmZ F‡Yi
wecix‡Z jÿ¨ †gvZv‡eK Av`vq, FY I AwMÖ‡gi ch©vß gwbUwis wbwðZKiY,
wi¯‹ g¨v‡bR‡g‡›Ui Dbœqb, kxl© 20 FY †Ljvwc †_‡K Av`vq Ges Ab¨vb¨ cÖfve
m¤^wjZ GKwU Memorandum of Understanding (MOU) ¯^vÿwiZ nq|
Dividends and Stock Dividend
Like in the previous year, no dividend is declared by SBL for the year 2020 because of prevailing negative retained earning balance.
Off- Balance Sheet Exposures
At the end of 2020, total outstanding amount of off-balance sheet exposures of the Bank stood at Tk. 949,413.07 million compared to Tk. 1,022,368.27 million for the year 2019.
The summary of off-balance sheet exposures is shown below:(Tk. in million)
ParticularsPosition as of
2020 2019
Letter of guarantee 7474.86 8012.30
Irrevocable letter of credit 936600.21 1007769.83
Bills for collection 5338.00 6586.14
Other contingencies liabilities - -
Total 949413.07 1022368.27
HR policies are designed to long-term career growth - unleashing the hidden potential
SBL’s HR policies, based on trust and relationship, are to look after people who want to make a long-term career with the Bank because trust and relationship are built over time. The corporate culture at SBL over last 49 years is such that the members and the staff have ample opportunities to take initiatives and responsibilities to unleash their hidden potential to maximize benefits for themselves and for the society. The challenge is to maintain a business like, committed corporate culture that matches SBL’s mission. Achieving results and taking responsibility are important components of the culture we pursue, one in which management and staff work together and are mutually accountable. Ensuring equal opportunities irrespective of gender, the Board of Directors of the Bank has already adopted a number of administrative policies focusing on improvement of skills and performance of human resources. Notable among them includes: revised organogram, new service rules, performance based promotion, transparent posting and transfer, employee’s welfare, training activities and skill development. Currently, SBL is having manpower strength of 18,918 of which 14,671 are officers and 2,600 are staff. In 2020, the Bank has invested Tk. 27.11 million to turn its human resources into a productive workforce.
Status of Memorandum of Understanding (MOU) with Bangladesh Bank
With Bangladesh Bank, SBL signed a Memorandum of Understanding (MOU) on 3 November 2013 which has conditions for compliance such as submission of audited balance sheet, limiting growth of loans and advances, minimizing operating expenses, achievement of recovery target against classified loans, ensuring proper monitoring of loans and advances, improvement of risk management, recovery of loans from top 20 loan defaulters and others leverages.
DIRECTORS' REPORT
Annual Report 2020
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The audited Balance Sheet of 2016 was submitted to Bangladesh Bank within the deadline. The annual growth of loans and advances and increase in operating expenses were within the limit of the memorandum. The recovery 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 other than cash was Tk. 6,137.30 million.
According to the terms and conditions of MOU, Credit Policy, Credit Risk Management Policy and Loan Review Policy have been revised to improve credit risk management and the revised policies have been submitted to Bangladesh Bank. Actions set out in the policy are being implemented accordingly. Besides, effective steps have also been taken to update management of other core risks.
Annual Performance Agreement-APA
A performance contract was introduced in 2015 by the
Financial Institution Division of the Ministry of Finance of the
People’s Republic of Bangladesh to achieve “Vision 2021”
through elevating the performance of the state-owned
commercial banks of Bangladesh to a satisfactory level. The
performance contract was named as “Key Performance
Indicators (KPIs)” till June 2016. In 2016 the Finance Ministry
introduced a financial year based “Annual Performance
Agreement (APA)” replacing the “Key Performance Indicators
(KPIs)”.
Consequently, an “Annual Performance Agreement (APA)”
was signed on dated 29th July, 2020 between the Secretary
of Financial Institution Division and the CEO & Managing
Director of Sonali Bank Limited for the Financial year 2020-
2021.
As per the direction of the agreement, Annual Performance
Agreement (APA), 2020-2021 was signed between the CEO
& Managing Director and the Deputy Managing Directors
and the General Managers of Different General Managers
Offices, held on the same date 29th July 2020 in the
conference room of the head office of Sonali Bank Limited.
Continually, the General Managers signed the agreement
with the head of the Principal offices, corporate branches
and Regional offices. PO & RO Heads did the same with the
branch Managers under their control and supervision.
Mentionable that according to the target of Annual
Performance Agreement (APA) 2018-19, Sonali Bank
Limited achieved 1st position among all commercial
banks securing “Very Good” by the Financial Institutions
Division. Appropriate and timely directions and guidelines
from the Board of Directors and close monitoring of the
management motivated officers to achieve targets against
all Key Performance Indicators of APA 2020-21.
Achievement evaluation reports against the targets in
various criteria are being submitted quarterly, half yearly and
annual basis in the APAMS of the Ministry of Finance as per
direction.
88
YEAR OF EXCELLENCE
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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. 9,851.60 million in 2019. In 2016,
Sonali Bank Limited was awarded one of the “Highest Tax
Payers” in the banking sector by National Board of Revenue
(NBR) for the assessment year 2015-16.(Tk. in million)
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
19.26 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
Growth Prospects
The banking industry in Bangladesh has been experiencing
tough competition amongst the local and foreign banks. The
banking and financing needs of the corporate, retail, SME
trade and other customers are met through diversification
of products and extending automated banking services. The
business trend up to 31 December, 2020 shows marked
improvement in the areas of deposit mobilization, loans and
advances, outward remittance and investment as well. To
face the overall challenge, SBL is strengthening its delivery
channel, adoption of technology, business promotion,
product diversification, human resource development,
optimum use of branch network and Corporate Social
2020 2019
0% 20% 40% 60% 80% 100%
VAT on Rent on bank building
VAT on Commission
VAT on Various Expenses
Source tax on L/C commission
Source tax on buying house commission
Source Tax on Interest paid by bank
Source Tax on Cash subsidy on export
Source Tax on Neat & Garments Export
Source Tax on other than Neat & Garments…
Excise duty
Employees tax
Tax deducted at source
Advance tax paid
Tax paid on car
Contribution on National Exchequer
DIRECTORS' REPORT
Annual Report 2020
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Responsibility (CSR). To meet the demand of our clients,
SBL has taken membership of VISA and introduced VISA
cards to ensure safe and modern ATM related services. Help
Desk (Phone No. 9560366, 01755583687) at Card Division,
Head Office is dedicated to ensure customer service.
Strategies Against New Challenges
In the backdrop of a fast changing global economic scenario
due to the COVID-19 pandemic, the banking sector as a
whole is facing new challenges. These include among
others, meeting the demands of clients and stakeholders
at large, innovation of new banking products, channelling
financial resources to productive sectors, working out new
mechanisms for combating trade based money laundering,
use of information technology to combat corruption and
improve service delivery, designing appropriate strategies to
mitigate emerging risks and ensuring control environment
to protect the interest of clients.
To cope with these new and emerging challenges,, Sonali
Bank Limited has laid emphasis on agriculture, agro-
industries, import substitution projects, SME-based energy
projects and other employment generating activities. It
has launched new products for different sections of the
community. To sustain its position in the competitive
market, all 1224 branches of the Bank have been taken
to automation with CBS installation successfully to
provide improved customer services. Besides, a web-
based software developed in-house called “Remittance
Management System Plus’’ (RMSPlus) has been installed at
1224 branches for receiving foreign remittances. Inland and
foreign remittance transactions are now carried out using
this system. Keeping its employees morally psychologically
strong and competent during the COVID-19 pandemic,
the capacity building of employees has been identified as
the major reform agenda. The Bank has been continuing
its efforts to improve the efficiency of employees and
effectiveness of service delivery mechanisms.
Maintaining adequate capital is very important in banking
business. Currently there is a considerable surplus of
capital in the Bank. To maintain the surplus capital, the
bank has taken a number of steps such as bringing down
the percentage of classified loans to a single digit, raising
income to a satisfactory level, recovery of written-off loans,
increasing income from non funded business and so on
and so forth. To mitigate the emerging risks, the Bank has
provided guidelines for every one to follow and has been
imparting training to senior and mid-level executives.
Appointment of Auditors
ACNABIN, Chartered Accountants, carried out the audit of
the Bank in 2020. Audit firms will be appointed for 2021 in
the upcoming 14th Annual General Meeting.
90
YEAR OF EXCELLENCE
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Acknowledgements
The members of the Board of Directors of the Bank would
like to place on record their gratitude to the depositors,
customers, patrons, well-wishers, auditors and other
stakeholders for their continued support and cooperation,
without which the Bank would not have been able to make
progress. We are also indebted to the Finance Division
and the Financial Institutions Division of the Ministry of
Finance, Bangladesh Bank, Bangladesh Securities and
Exchange Commission, Office of the Registrar of Joint
Stock Companies and Firms and other relevant government
agencies for their cooperation and guidance.
In the face of challenges of the COVID-19 pandemic,
the unrelenting and courageous efforts of the senior
management and the members of staff under the able
leadership of the CEO & Managing Director, to bring about
overall improvement in the Bank’s business performance
deserve special appreciation.
On behalf of the Board of Directors
(Ziaul Hasan Siddiqui)
Chairman
DIRECTORS' REPORT
Annual Report 2020
92
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
CORPORATE GOVERNANCE
Annual Report 2020
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:
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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.
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Annual Report 2020
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 202036 (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:
SI. NameStatus with the
BankMeeting
HeldAttended
Honourium Received *
Remarks
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
Sl. Name Status with the Bank Status with the Committee
1 Mr. Ziaul Hasan Siddiqui Chairman Chairman
2 Mr. Md. Fazlul Haque Director Member
3 Mr. Md. Mofazzal Husain Director Member
4 Mr. Molla Abdul Wadud 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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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:
SI. NameStatus with the
BankMeeting Held Attended
Honourium Received *
Remarks
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 - -
*Tk 8000.00 per meeting
ii. The committee invites Chief Executive Officer, Head of Internal Audit or any other Officer to its meetings, if it deems necessary;
iii. To ensure active participation and contribution by the members, a detailed memorandum is distributed to committee
members well in advance before each meeting;
iv. All decisions/observations of the committee are noted in minutes.
ll.b. Audit Committee
As per Bangladesh Securities and Exchange Commission notification No. SEC/ CMRRCD/ 2006-158/134/Admin/44 of 07 August 2012, 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
Sl. Name Status with the Bank Status with the 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 Mr. Molla Abdul Wadud Director Member
05 Professor Dr. Mohammad Kaykobad Director Member
II.b.2. Qualifications of the Members:
i. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating a Director to the committee;
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Annual Report 2020
ii. Each member is capable of making valuable and effective contributions in the functioning of the committee;
iii. To perform his or her role effectively each committee member has adequate understanding of the detailed responsibilities of the committee membership as well as the bank’s business, operations and its risks.
iv. Professionally experienced persons in banking/ financial institutions specially having educational qualification in Finance, Banking, Management, Economics, Accounting gets preference in forming the committee.
II.b.3. Roles and Responsibilities of the Audit Committee
(i) Internal Control:
1. Evaluate whether management is setting the appropriate compliance culture by communicating the importance of internal control and the management of risk and ensuring that all employees have clear understanding of their roles and responsibilities;
2. Review management’s actions in building computerization of the bank and its applications and bank’s Management Information System (MIS);
3. Consider whether internal control strategies recommended by internal and external auditors have been implemented by the management;
4. Consider reports relating to fraud, forgery, deficiencies in internal control or other similar issues detected by internal and external auditors and inspectors of the regulatory authority and place it before the Board after reviewing whether necessary corrective measures have been taken by the management.
(ii Financial Reporting:
1. Audit Committee checks whether the financial statements reflect the complete and concrete information and determine whether the statements are prepared according to the existing rules & regulations and standards enforced in the country and as per relevant prescribed accounting standards set by Bangladesh Bank;
2. Discuss with management and the external auditors to review the financial statements before its finalization.
II.b.4. Meetings of the Committee
8 (eight) meetings of the Committee were held in 2020. A statement on Audit Committee is given below:
SI. Name Status with the BankMeeting
HeldAttended
Honourium Received *
Remarks
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
*Tk 8000.00 per meeting
(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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(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:
Risk Management Committee
Sl. Name Status with the Bank Status with the Committee
1 Mr. Ishtiaque Ahmed Chowdhury Director Chairman
2 Mr. Md. Fazlul Haque Director Member
3 Dr. Daulatunnaher Khanam Director Member
4 Mr. Md. Mofazzal Husain Director Member
5 Professor Dr. Mohammad Kaykobad Director Member
II.c.2. Qualifications of the Members:
1. Integrity, dedication, and opportunity to spare time in the functions of committee are considered while nominating a Director to the committee;
2. Each member is capable of making valuable and effective contributions in the functioning of the committee;
3. To perform his or her role effectively each committee member has adequate understanding of the detailed responsibilities of the committee membership as well as the bank’s business, operations and its risks.
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.
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Annual Report 2020
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
SI. Name Status with the BankMeeting
HeldAttended
Honourium Received *
Remarks
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
*Tk 8000.00 per meeting
III. INTRNAL CONTROL AND COMPLIANCE RISK MANAGEMENT
Internal control and compliance policy is the policies and procedures established and implemented alone, or in concert with other policies or procedures, to manage and control a particular risk or business activity, or combination of risks or business activities, to which the Bank is exposed or in which it is engaged. It refers to the mechanism in place on a permanent basis to control the activities in an organization, both at a central and at a departmental/ divisional level.
III.a. Internal control Objectives
The primary objective of internal control system in 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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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.
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Annual Report 2020
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
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
Board of Directors
ExecutiveCommittee
y
e
e
&
Div
Risk ManagementCommittee
CEO & MD
MANCOM
&
(GMO
&n
DepartmentalRisk Management
Head of ICC
Head of Control
& &
Head of Audit Head of Compliance
AuditCommittee
&
Audit & Inspection up toCorporate Level Branch
Compliance up tocorporate Branch
Bangladesh BankAudit Compliance
CommercialAudit Com.
StatutorAudit Com.
Others ExternalAudit Com.
Compliance of therest of th
branch and others
Compliance offoreign exchangAudit & Foreign
branches Sinsidiaries
Audit Cell-LocalO�ce/Corporate
. O�ce, Dept.Controlling O�ces
(GMo, Po, Ro)
BranchDepartmentDivision
ControllingO�ces
, Po, Ro)
AllBranches(Below
Corporatelevel)
All Adbranches
foreigbranches/
sub.
Audit Inspection
Division (AID-1)
Audit Inspection
Division (AID-2)
ForeignExchange Audit
& Inspection
ComplianceDivision-Internal
ComplianceDivision-External
Control Monitoring
Division (CMD)
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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
CORPORATE GOVERNANCE
Annual Report 2020
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.
104
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
CORPORATE GOVERNANCE
Annual Report 2020
Compliance Certificate
on
CORPORATE GOVERNANCE
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, BangladeshDated, 16 August 2021
(Shiraz Khan Basak & Co)Chartered Accountants.
106
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.
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
1. Board of Directors
1.1Board’s size: Board members shall not be less than 5 (five) and more than 20 (twenty)
√
All
Bo
ard
Mem
bers
are
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ated
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ove
rnm
en
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old
ing
01
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e f
ace v
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e
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. 10
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ey
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reat
ed
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ep
en
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irecto
r.
1.2 Independent Directors
1.2.a.At least one-fifth (1/5) of the total number of directors in the company’s Board shall be independent directors;
√
1.2.b. (i)who either does not hold any share in the company or holds less than one percent (1%) shares of the total paid-up shares of the company;
√
1.2.b.(ii).
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 one percent (1%) or more shares of the total paid-up shares of 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;
√
1.2.b. (iii)who has not been an executive of the company in immediately preceding 2 (two) financial years;
√
1.2.b. (iv)who does not have any other relationship, whether pecuniary or otherwise, with the company or its subsidiary or associated companies;
√
1.2.b. (v)who is not a member or TREC (Trading Right Entitlement Certificate) holder, director or officer of any stock exchange;
√
1.2.b. (vi)who is not a shareholder, director excepting independent director or officer of any member or TREC holder of stock exchange or an intermediary of the capital market;
√
1.2.b. (vii)
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 company’s statutory audit firm or audit firm engaged in internal audit services or audit firm conducting special audit or professional certifying compliance of this Code;
√
1.2.b. (viii)who is not independent director in more than 5 (five) listed companies;
√
1.2.b. (ix)who has not been convicted by a court of competent jurisdiction as a defaulter in payment of any loan or any advance to a bank or a Non-Bank Financial Institution (NBFI);
√
CORPORATE GOVERNANCE
Annual Report 2020
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
1.2.b. (x)who has not been convicted for a criminal offence involving moral turpitude;
√ -
1.2.c.The independent director(s) shall be appointed by the Board and approved by the shareholders in the Annual General Meeting (AGM);
√ -
1.2.d.The post of independent director(s) cannot remain vacant for more than 90 (ninety) days;
√ -
1.2.e.The tenure of office of an independent director shall be for a period of 3 (three) years, which may be extended for 1 (one) tenure only:
√ -
1.3 Qualification of Independent Director
1.3 (a)
Independent director shall be a knowledgeable individual with integrity who is able to ensure compliance with financial laws, regulatory requirements and corporate laws and can make meaningful contribution to the business;
√ Stated in their CV
1.3.b. (i)
Business Leader who is or was a promoter or director of an unlisted company having minimum paid-up capital of Tk. 100.00 million or any listed company or a member of any national or international chamber of commerce or business association;
√
1.3.b.(ii)
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 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;
√
1.3.b. (iii)
Former official of government or statutory or autonomous or regulatory body in the position not below 5th Grade of the national pay scale, who has at least educational background of bachelor degree in economics or commerce or business or law;
√
1.3.b. (iv)University Teacher who has educational background in Economics or Commerce or Business Studies or Law;
√
1.3.b. (v)
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 Financial Analyst or Chartered Certified Accountant or Certified Public Accountant or Chartered Management Accountant or Chartered Secretary or equivalent qualification;
√
1.3.c.The independent director shall have at least 10 (ten) years of experiences in any field mentioned in clause (b);
√
1.3.d.In special cases, the above qualifications or experiences may be relaxed subject to prior approval of the Commission.
√
1.3. (iii)In special cases the above qualifications may be relaxed subject to approval of the Commission.
√ -
1.4Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer.
√
1.4.(a)The positions of the Chairperson of the Board and the Managing Director (MD) and/or Chief Executive Officer (CEO) of the company shall be filled by different individuals;
√
1.4.(b)The Managing Director (MD) and/or Chief Executive Officer (CEO) of a listed company shall not hold the same position in another listed company;
√
1.4.(c)The Chairperson of the Board shall be elected from among the non-executive directors of the company;
√
108
YEAR OF EXCELLENCE
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
1.4.(d)The Board shall clearly define respective roles and responsibilities of the Chairperson and the Managing Director and/or Chief Executive Officer;
√
1.4.(e)
In the absence of the Chairperson of the Board, the remaining members may elect one of themselves from non-executive 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 √
1.5.(i)An industry outlook and possible future developments in the industry;
√
1.5.(ii). The segment-wise or product-wise performance; √
1.5. (iii)Risks and concerns including internal and external risk factors, threat to sustainability and negative impact on environment, if any;
√
1.5. (iv)A discussion on Cost of Goods sold, Gross Profit Margin and Net Profit Margin, where applicable;
√
1.5.(v)A discussion on continuity of any extraordinary activities and their implications (gain or loss);
√
1.5.(vi)
A detailed discussion on related party transactions along with a statement showing amount, nature of related party, nature of transactions and basis of transactions of all related party transactions;
√
1.5.(vii)A statement of utilization of proceeds raised through public issues, rights issues and/or any other instruments;
√
1.5.(viii)An explanation if the financial results deteriorate after the company goes for Initial Public Offering (IPO), Repeat Public Offering (RPO), Rights Share Offer, Direct Listing, etc.;
√
1.5.(ix)An explanation on any significant variance that occurs between Quarterly Financial performances and Annual Financial Statements;
√
1.5.(x)A statement of remuneration paid to the directors including independent directors;
√
1.5.(xi)
A statement that the financial statements prepared by the management of the issuer company present fairly its state of affairs, the result of its operations, cash flows and changes in equity;
√
1.5.(xii).A statement that proper books of account of the issuer company have been maintained;
√
1.5. (xiii)
A statement that appropriate accounting policies have been consistently applied in preparation of the financial statements and that the accounting estimates are based on reasonable and prudent judgment;
√
1.5. (xiv)
A statement that International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable in Bangladesh, have been followed in preparation of the financial statements and any departure there from has been adequately disclosed;
√
1.5.(xv)A statement that the system of internal control is sound in design and has been effectively implemented and monitored;
√
1.5.(xvi)
A statement that minority shareholders have been protected from abusive actions by, or in the interest of, controlling shareholders acting either directly or indirectly and have effective means of redress;
√
CORPORATE GOVERNANCE
Annual Report 2020
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
1.5.(xvii)
A statement that there is no significant doubt upon the issuer company’s ability to continue as a going concern, if the issuer company is not considered to be a going concern, the fact along with reasons there of shall be disclosed;
√
1.5.(xviii)An explanation that significant deviations from the last year’s operating results of the issuer company shall be highlighted and the reasons thereof shall be explained;
√
1.5.(xix)A statement where key operating and financial data of at least preceding 5 (five) years shall be summarized;
√
1.5.(xx)An explanation on the reasons if the issuer company has not declared dividend (cash or stock) for the year;
√
1.5.(xxi)Board’s statement to the effect that no bonus share or stock dividend has been or shall be declared as interim dividend;
√
1.5.(xxii)The total number of Board meetings held during the year and attendance by each director;
√
1.5.(xxiii)A report on the pattern of shareholding disclosing the aggregate number of shares (along with name-wise details where stated below) held by:-
√
1.5.(xxiii).(a)Parent or Subsidiary or Associated Companies and other related parties (name-wise details);
√
1.5.(xxiii).(b)Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit and Compliance and their spouses and minor children (name-wise details);
√
1.5.(xxiii).(c) Executives; and √
1.5.(xxiii).(d)Shareholders holding ten percent (10%) or more voting interest in the company (name-wise details);
√
1.5.(xxiv)In case of the appointment or reappointment of a director, a 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 √
1.5.(xxiv).(c)names of companies in which the person also holds the directorship and the membership of committees of the Board;
√
1.5.( xxv)
A Management’s Discussion and Analysis signed by CEO or MD presenting detailed analysis of the company’s position and operations along with a brief discussion of changes in the financial statements, among others, focusing on:
√
1.5.( xxv) .a.accounting policies and estimation for preparation of financial statements;
√
1.5.( xxv) .b.
changes in accounting policies and estimation, if any, clearly describing the effect on financial performance or results and financial position as well as cash flows in absolute figure for such changes;
√
1.5.( xxv) .c.
comparative analysis (including effects of inflation) of financial performance or results and financial position as well as cash flows for current financial year with immediate preceding five years explaining reasons thereof;
√
1.5.( xxv) .d.compare such financial performance or results and financial position as well as cash flows with the peer industry scenario;
√
1.5.( xxv) .e.briefly explain the financial and economic scenario of the country and the globe;
√
1.5.( xxv) .f.risks and concerns issues related to the financial statements, explaining such risk and concerns mitigation plan of the company;
√
110
YEAR OF EXCELLENCE
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
1.5.( xxv) .g.
future plan or projection or forecast for company’s operation, performance and financial position, with justification thereof, i.e., actual position shall be explained to the shareholders in the next AGM;
√
1.5.(xxvi)Declaration or certification by the CEO and the CFO to the Board as required under condition No. 3(3) shall be disclosed as per Annexure-A;
√
1.5.(xxvii)The report as well as certificate regarding compliance of conditions of this Code as required under condition No. 9 shall be disclosed as per Annexure-B and Annexure-C.
√
1.6
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 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.
√
1.7Code of Conduct for the Chairperson, other Board members and Chief Executive Officer
N/A
1.7.(a)
The Board shall lay down a code of conduct, based on the recommendation of the Nomination and Remuneration Committee (NRC) at condition No. 6, for the Chairperson of the Board, other board members and Chief Executive Officer of the company;
N/A
1.7.(b)
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; compliance with laws, rules and regulations; prohibition of insider trading; relationship with environment, employees, customers and suppliers; and independency.
N/A
2. Governance of Board of Directors of Subsidiary Company: √
2.(a).Provisions relating to the composition of the Board of the holding company shall be made applicable to the composition of the Board of the subsidiary company;
√
2.(b).At least 1 (one) independent director on the Board of the holding company shall be a director on the Board of the subsidiary company;
√
2.(c).The minutes of the Board meeting of the subsidiary company shall be placed for review at the following Board meeting of the holding company;
√
2.(d).The minutes of the respective Board meeting of the holding company shall state that they have reviewed the affairs of the subsidiary company also;
√
2.(e).The Audit Committee of the holding company shall also review the financial statements, in particular the investments made by the subsidiary company.
√
3.Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal Audit and Compliance (HIAC) and Company Secretary (CS).-
√
3.1.(a).
The Board shall appoint a Managing Director (MD) or Chief Executive Officer (CEO), a Company Secretary (CS), a Chief Financial Officer (CFO) and a Head of Internal Audit and Compliance (HIAC);
√
CORPORATE GOVERNANCE
Annual Report 2020
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
3.1.(b).
The positions of the Managing Director (MD) or Chief Executive Officer (CEO), Company Secretary (CS), Chief Financial Officer (CFO) and Head of Internal Audit and Compliance (HIAC) shall be filled by different individuals;
√
3.1.(c).The MD or CEO, CS, CFO and HIAC of a listed company shall not hold any executive position in any other company at the same time;
√
3.1.(d).The Board shall clearly define respective roles, responsibilities and duties of the CFO, the HIAC and the CS;
√
3.1.(e).The MD or CEO, CS, CFO and HIAC shall not be removed from 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 √
3.2.
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 the HIAC shall not attend such part of a meeting of the Board which involves consideration of an agenda item relating to their personal matters.
√
3.3.Duties of Managing Director (MD) or Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
√
3.3.(a).The MD or CEO and CFO shall certify to the Board that they have reviewed financial statements for the year and that to the best of their knowledge and belief:
√
3.3.(a). (i).these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
√
3.3.(a). (ii).these statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting standards and applicable laws;
√
3.3.(b)
The MD or CEO and CFO shall also certify that 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 or its members;
√
3.3.(c)The certification of the MD or CEO and CFO shall be disclosed in 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. √
5.1.(a)The company shall have an Audit Committee as a sub-committee of the Board;
√
5.1.(b)
The Audit Committee shall assist the Board in ensuring that the financial statements reflect true and fair view of the state of affairs of the company and in ensuring a good monitoring system within the business;
√
112
YEAR OF EXCELLENCE
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
5.1.(c)The Audit Committee shall be responsible to the Board; the duties of the Audit Committee shall be clearly set forth in writing.
√
5.(2). Constitution of the Audit Committee √
5.(2).(a)The Audit Committee shall be composed of at least 3 (three) members;
√
5.(2).(b)
The Board shall appoint members of the Audit Committee who shall be nonexecutive directors of the company excepting Chairperson of the Board and shall include at least 1 (one) independent director;
√
5.(2).(c)
All members of the audit committee should be “financially literate” and at least 1 (one) member shall have accounting or related financial management background and 10 (ten) years of such experience;
√
5.(2).(d)
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 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;
√
5.(2).(e)The company secretary shall act as the secretary of the Committee;
√
5.(2).(f)The quorum of the Audit Committee meeting shall not constitute without at least 1 (one) independent director.
√
5.(3). Chairperson of the Audit Committee √
5.3.(a)The Board shall select 1 (one) member of the Audit Committee to be Chairperson of the Audit Committee, who shall be an independent director;
√
5.3.(b)
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 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.
√
5.3.(c)Chairperson of the Audit Committee shall remain present in the Annual General Meeting (AGM):
√
5.4. Meeting of the Audit Committee √
5.4.(a)The Audit Committee shall conduct at least its four meetings in a financial year
√
5.4.(b)
The quorum of the meeting of the Audit Committee shall be constituted in presence of either two members or two third 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 √
5.5.(c)
monitor Internal Audit and Compliance process to ensure that it is adequately resourced, including approval of the Internal Audit and Compliance Plan and review of the Internal Audit and Compliance Report
√
CORPORATE GOVERNANCE
Annual Report 2020
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
5.5.(d) oversee hiring and performance of external auditors √
5.5.(e)hold meeting with the external or statutory auditors for review of the annual financial statements before submission to the Board for approval or adoption
√
5.5.(f)review along with the management, the annual financial statements before submission to the Board for approval
√
5.5.(g)review along with the management, the quarterly and half yearly financial statements before submission to the Board for approval
√
5.5.(h) review the adequacy of internal audit function √
5.5.(i)review the Management’s Discussion and Analysis before disclosing in the Annual Report
√
5.5.(j)review statement of all related party transactions submitted by the management
√
5.5.(k)review Management Letters or Letter of Internal Control weakness issued by statutory auditors
√
5.5.(l)oversee the determination of audit fees based on scope and magnitude, level of expertise deployed and time required for effective audit and evaluate the performance of external auditors
√
5.5.(m)
oversee whether the proceeds raised through Initial Public Offering (IPO) or Repeat Public Offering (RPO) or Rights Share 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. √
5.6.(a) .(ii).The Audit Committee shall immediately report to the Board on the following findings, if any:-
√
5.6.(a) .(ii).(a) report on conflicts of interests √
5.6.(a) .(ii).(b)suspected or presumed fraud or irregularity or material defect identified in the internal audit and compliance process or in the financial statements
√
5.6.(a) .(ii).(c)suspected infringement of laws, regulatory compliances including securities related laws, rules and regulations
√
5.6.(a) .(ii).(d)any other matter which the Audit Committee deems necessary shall be disclosed to the Board immediately
√
5.6.(b) Reporting to the Authorities √
5.6.(b)
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 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 √
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YEAR OF EXCELLENCE
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
5.7.
Report on activities carried out by the Audit Committee, including any report made to the Board under condition No. 5(6)(a)(ii) above during the year, shall be signed by the Chairperson of the Audit Committee and disclosed in the annual report of the issuer company.
√
6. Nomination and Remuneration Committee (NRC). -
6.1. Responsibility to the Board of Directors -
6.1.(a).The company shall have a Nomination and Remuneration Committee (NRC) as a subcommittee of the Board
-
6.1.(b).
The NRC shall assist the Board in formulation of the nomination criteria or policy for determining qualifications, positive attributes, 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
-
6.1.(c)The Terms of Reference (ToR) of the NRC shall be clearly set forth in writing covering the areas stated at the condition No. 6(5)(b).
-
6.2. Constitution of the NRC -
6.2.(a).The Committee shall comprise of at least three members including an independent director
-
6.2.(b). All members of the Committee shall be non-executive directors -
6.2.(c).Members of the Committee shall be nominated and appointed by the Board
-
6.2.(d).The Board shall have authority to remove and appoint any member of the Committee
-
6.2.(e).
In case of death, resignation, disqualification, or removal of any member of the Committee or in any other cases of vacancies, the board shall fill the vacancy within 180 (one hundred eighty) days of occurring such vacancy in the Committee
-
6.2.(f).
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 feels that advice or suggestion from such external expert and/or member(s) of staff shall be required or valuable for the Committee
-
6.2.(g).The company secretary shall act as the secretary of the Committee
-
6.2.(h).The quorum of the NRC meeting shall not constitute without attendance of at least an independent director
-
6.2.(i)
No member of the NRC shall receive, either directly or indirectly, any remuneration for any advisory or consultancy role or otherwise, other than Director’s fees or honorarium from the company.
-
6.3. Chairperson of the NRC -
6.3.(a).The Board shall select 1 (one) member of the NRC to be Chairperson of the Committee, who shall be an independent director
-
CORPORATE GOVERNANCE
Annual Report 2020
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
6.3.(b).
In the absence of the Chairperson of the NRC, the remaining members may elect one of themselves as Chairperson for that particular meeting, the reason of absence of the regular Chairperson shall be duly recorded in the minutes
-
6.3.(c)The Chairperson of the NRC shall attend the annual general 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. -
6.4.(b)The Chairperson of the NRC may convene any emergency meeting upon request by any member of the NRC.
-
6.4.(c)
The quorum of the meeting of the NRC shall be constituted in presence of either two members or two third of the members of the Committee, whichever is higher, where presence of an independent director is must as required under condition No. 6(2)(h).
-
6.4.(d)The proceedings of each meeting of the NRC shall duly be recorded in the minutes and such minutes shall be confirmed in the next meeting of the NRC.
-
6.5. Role of the NRC -
6.5.(a)NRC shall be independent and responsible or accountable to the Board and to the shareholders
-
6.5.(b).NRC shall oversee, among others, the following matters and make report with recommendation to the Board
-
6.5.(b). .(i).
formulating the criteria for determining qualifications, positive attributes and independence of a director and recommend a policy to the Board, relating to the remuneration of the directors, top level executive, considering the following:
-
6.5.(b).(i).athe level and composition of remuneration is reasonable and sufficient to attract, retain and motivate suitable directors to run the company successfully
-
6.5.(b).(i).bthe relationship of remuneration to performance is clear and meets appropriate performance benchmarks
-
6.5.(b).(i).c
remuneration to directors, top level executive involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the company and its goals
-
6.5.(b).(ii).devising a policy on Board’s diversity taking into consideration age, gender, experience, ethnicity, educational background and nationality
-
6.5.(b).(iii).
identifying persons who are qualified to become directors and who may be appointed in top level executive position in accordance with the criteria laid down, and recommend their appointment and removal to the Board
-
6.5.(b).( iv).formulating the criteria for evaluation of performance of independent directors and the Board
-
6.5.(b).( v).identifying the company’s needs for employees at different levels and determine their selection, transfer or replacement and promotion criteria
-
6.5.(b).( vi).developing, recommending and reviewing annually the company’s human resources and training policies
-
6.5.(c).The company shall disclose the nomination and remuneration policy and the evaluation criteria and activities of NRC during the year at a glance in its annual report
-
116
YEAR OF EXCELLENCE
Condition No.
TitleCompliance Status Remarks
(If any)CompliedNot
Complied
7. External or Statutory Auditors √
7.1.The issuer company shall not engage its external or statutory 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 √
7.1.(iii).book-keeping or other services related to the accounting records 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 √
7.1. (viii)audit or certification services on compliance of corporate governance as required under condition No. 9(1)
√
7.1.(ix) any other service that creates conflict of interest √
7.2.
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 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.
√
7.3.
Representative of external or statutory auditors shall remain present in the Shareholders’ Meeting (Annual General Meeting or Extraordinary General Meeting) to answer the queries of the shareholders.
√
8. Maintaining a website by the Company √
8.1.The company shall have an official website linked with the website of the stock exchange.
√
8.2.The company shall keep the website functional from the date of listing
√
8.3.The company shall make available the detailed disclosures on its website as required under the listing regulations of the concerned stock exchange(s)
√
9. Reporting and Compliance of Corporate Governance √
9.1.
The company shall obtain a certificate from a practicing Professional Accountant or Secretary (Chartered Accountant or Cost and Management Accountant or Chartered Secretary) other 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.
√
9.2.The professional who will provide the certificate on compliance of this Corporate Governance Code shall be appointed by the shareholders in the annual general meeting
√
9.3.The directors of the company shall state, in accordance with the Annexure-C attached, in the directors’ report whether the company has complied with these conditions or not.
√
CORPORATE GOVERNANCE
Annual Report 2020
CEO AND CFO’S DECLARATION TO THE BOARDDate: 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,
(Subhash Chandra Das FCMA, FCA)Chief Financial Officer (CFO)
(Md. Ataur Rahman Prodhan)CEO & Managing Director
118
YEAR OF EXCELLENCE
DIRECTORS’ RESPONSIBILITYFOR FINANCIAL STATEMENTSProper Financial ReportingThe Board of Director of SBL is responsible to cause preparation and true & fair presentation of the annual financial statements of 2020 and other financial information and reports contained in this annual report by the management. The accompanying financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and Bangladesh Accounting Standards as espoused by the Institute of Chartered Accountants of Bangladesh and Companies Act 1994, Banking Companies Act 1991 (Amended-2018), rules and regulations of Bangladesh Bank and Bangladesh Securities and Exchange Rules 1987 as considered relevant and appropriate under the circumstances. In cases where amounts are stated based on estimate those are based on informed judgment and estimate made by the management and agreed by the Board of Directors. The financial information and data provided in this annual report is fully consistent with the financial statements.
While preparing the report, the Directors didn’t approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company as at the end of the financial year and of their profit or loss for the year. The Directors have also been obliged to ensure that the Company keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Company. They have driven the wheel of responsibility for safeguarding the assets of the Bank.
Nothing has come to the attention of the Directors to indicate that the Bank will not remain a going concern for at least twelve months from the date of this statement.
We confirm that to the best of our knowledge:
i. The financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Bank and the undertakings included in the consolidation taken as a whole.
ii. Financial statements reflects the development and performance of the business and the position of the Bank and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
iii. Appropriate accounting policies have been adopted and applied that consistently.
iv. Prudent and reasonable estimates along with judgment have been applied.
Adequate Internal ControlIn line with requirement of section 15 (C) of Bank Companies Act-1991 (Amended- 2018), the Board of Directors of SBL is entrusted to establish suitable system of Internal Control and Compliance (ICC). Accordingly the Board is very much concerned about this. In setting out a strong internal control and compliance framework within the organization, the Board established Board Audit Committee and Board Risk Management Committee to ensure effective ICC in the Bank as a part of oversight functioning. In addition to that, SBL has formed Management Committee (MANCOM) to identify, measure, monitor and control the risks through framing required policies and procedures with the approval of the Board of Directors.
Gripping of Banking Operational RisksThe policy of managing operational risk through internal control and compliance is approved by the Board taking into account the relevant guidelines of Bangladesh Bank. The committee puts in place policies and procedures to identify, measure, monitor and control these risks and monitors the adequacy and effectiveness of the internal control system based on the Bank’s established policy and procedure.
Independency to the Audit Committee The Internal control, accounting policies and financial reporting of SBL are under direct supervision of the audit committee of the Board that in turn report to the Board of Directors for general oversight and supervision. Audit committee of the board is fully independent of executive management. The committee regularly reviews reports prepared by internal control and compliance department covering all the business operations of the Bank with particular focus on core risks. ICC division of the Bank also carries on its activities independently without any intervention and produced the audit and ICC reports to the Board audit Committee and the Board independently.
Gratis Accessibility to the External Audits External audit of SBL has the full access to the Audit Committee of the Board for ensuring effectiveness of internal control procedure and reliability of financial reporting. The Internal Control & Compliance Division of the Bank conducts periodic audits to provide reasonable assurance that the established policies and procedures of the company were consistently followed. The auditor of the company ACNABIN, Chartered Accountants, have carried out annual audit to review on the system of internal controls, as they consider appropriate and necessary, for expressing their opinion on the financial statements. They have also examined the financial statements made available by the management together with all the financial records, related data, minutes of shareholders and board meetings, relevant policies and expressed their clean opinion.
With best regards
On behalf of the Board of the Directors
(Ziaul Hasan Siddiqui)
Chairman
INCOME STATEMENTS
Revenues
-Expenses
Net Income
RETAINED EARNINGS
Net Income
-Dividends
Retained Earnings
BALANCE SHEET
Asset
-Liabilities
Owners’Equity
REPORT OF THE AUDIT COMMITEE
Annual Report 2020
REPORT OFTHE AUDIT COMMITTEE
A.k.m. Kamrul Islam Fca, FcsChairman, Board Audit Committee
The Audit Committee of the Board of Sonali Bank Limited has
been functioning as a sub-committee appointed by the Bank’s
Board of Directors in compliance with the Bank Company
Act 1991 (amended 2018), Bangladesh Bank’s BRPD Circular
No. 11 of 27 October 2013 and the relevant Notifications
of Bangladesh Securities and Exchange Commission
(BSEC) as well as international best practices on Corporate
Governance. The primary purposes of the Audit Committee
are to provide independent and objective oversight of the
accounting and financial reporting functions along with the
internal controls of the Bank and its affiliates and to ensure
the objectivity of the Bank’s financial statements. The Audit
Committee’s function is one of oversight and review, and it
is not required to prepare or audit the financial statements,
to define the scope of the audit, to control the Company’s
accounting policies and practices, or to define the standards
used in preparing the financial statements
Key Objectives of Audit Committee
z To review the financial reporting process, the
system of internal control and compliance, the
approach to management of financial risks, the
audit process, the processes used by the Bank
to identify, quantify and mitigate significant
risks to the achievement of objectives, the
findings of Bangladesh Bank’s processes for
monitoring compliance under relevant laws
and regulations and its own code of business
conducts.
z To assist the Board in discharging its oversight
responsibilities by implementing relevant
strategies and policies.
120
YEAR OF EXCELLENCE
Composition of Audit Committee
In compliance with Section 3.2(i) of Corporate Governance
Notification issued by BSEC on 07 August 2012 and
Bangladesh Bank’s BRPD Circular No. 11 of 27 October 2013,
Board Audit Committee (AC) of Sonali Bank Limited was last
re-constituted with the following Board members:
NameStatus
with the Bank
Status with the
Committee
Mr. A.K.M. Kamrul Islam FCA, FCS Director Chairman
Mr. Ishtiaque Ahmed Chowdhury Director Member
Dr. Daulatunnaher Khanam Director Member
Professor Dr. Mohammad Kaykobad Director Member
Roles and Responsibilities of Audit Committee
The roles and responsibilities of Audit Committee of
Sonali Bank Limited have been specified by considering
the provisions of BRPD Circular No 11 of 27 October 2013
Corporate Governance Notification issued by BSEC on 07
August 2012 and other best practice corporate governance
guidelines and standards.
Meetings of Audit Committee
The Audit Committee of the bank held as many as 8 (Eight)
meetings in 2020. In those meetings, the committee
reviewed the findings and recommendations in the reports
of the bank’s internal and external auditors and assessed the
remedial actions taken by the management. Proceedings
of the Audit Committee meetings were reported timely and
regularly to the Board of Directors as well as Bangladesh
Bank in compliance with the DOS circular letter no. 07 of
24 April 2011.
Major Highlights of the Audit Committee activities in 2020
During the year under review, the committee performed
amongst others the following key functions:
z Appointment of Statutory Auditors: The Audit Committee made recommendations to the Board for appointing Statutory Auditors in the Annual General Meeting.
z Meeting with Statutory Auditors: The committee met with the statutory auditors for finalization of financial statements for the year 2020. It also looks into account the issues raised in the Management Letter and advised the management to take appropriate remedial actions.
z Review of Accounting Policy: The Audit Committee reviewed the accounting policies
adopted by the bank and ensured that the policies are properly applied in the preparation of the Financial Statements of the Bank.
z Review of Interim Financial Statement: The Audit Committee reviewed the quarterly and the half yearly Financial Statements and ensured that authentic and reliable financial information are incorporated in those statements and in other interim reports.
z Review of Financial Statements: The Audit Committee reviewed and examined the Financial Statements of 2020 of the Bank to confirm whether all the required disclosures and information have been incorporated in the Financial Statements and whether the Bank followed International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) adopted as Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) by the Institute of Chartered Accountants of Bangladesh, Bank Company Act 1991(amended 2018), Bangladesh Bank Guidelines, the Companies Act 1994, the Bangladesh Securities and Exchange Commission Rules and other laws and rules applicable in Bangladesh and also Standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Bahrain, etc. The Committee recommended the Financial Statements for the year 2020 for consideration of the Board.
Other activities:
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
REPORT OF THE AUDIT COMMITEE
Annual Report 2020
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.
Acknowledgements
The Committee would like to place on record its sincere
thanks and gratitude to the regulatory authorities, in
particular, Bangladesh Bank and the Bangladesh Securities
and Exchange Commission, external auditors, the Board of
Directors and management for their earnest support while
performing its duties and responsibilities.
In conclusion, I would like to convey my sincere thanks to
the members of the Committee for their invaluable support
and cooperation in carrying out the tasks entrusted with the
Committee.
For and on behalf of Audit Committee
(A.K.M. Kamrul Islam FCA, FCS)
Chairman Board Audit Committee
122
YEAR OF EXCELLENCE
NOTE FROM THE CHAIRMAN OF RISK MANAGEMENT COMMITTEE
Ishtiaque Ahmed ChowdhuryChairman, Board Risk Management Committee
Over the past decade, Bangladesh’s economy has stood on a strong footing. During this time, economic growth has increased on an average of 6.6 percent and crossed 8.0 percent in FY2018-19. This sustained achievement of Bangladesh’s GDP growth has been praised worldwide. The coronavirus, which has emerged as a global pandemic, poses a major risk to the global economy. Its effects are already being observed in Bangladesh economy. There has been a negative growth in import and export trade in FY2019-20. However, the growth of remittance flow has been positive with 10.87 percent growth during the fiscal year. In addition, the current account deficit has narrowed during FY2019-20. Moreover, the surplus of the overall balance of the BOP significantly increased the foreign exchange reserves and as on 30 June 2020, it stood at US$ 36 billion. It has grown to a record US$ 40 billion in recent times. The exchange rate of Taka, especially the exchange rate of Taka with the US dollar, was stable. Inflation was also under control during this fiscal year due to good production in the agricultural sector and maintaining uninterrupted supply of commodities.
The adverse effects of the pandemic are expected to exceed the 2008-2009 global financial recession. The Hon’ble Prime Minister announced an incentive package of about 1.2 lakh crore taka to address the global crisis and keep the country’s economy moving and bring it back on track. The incentive package announced is 4.3 percent of GDP. Some of the notable activities of this package are - to provide special funds for export oriented industries, provide working capital to affected industries and services sector enterprises and micro (including cottage industries), small and medium enterprises, increase the benefits of Export Development Fund, increase the coverage of social safety net, direct cash transfer to targeted people and creation of various funds for the agricultural sector. In addition to financial incentives, various measures have been taken to reduce import duty on COVID-19 related health and medical products and provide policy assistance to increase liquidity in the banking sector. Through implementation of this attractive and timely stimulus package, the government has been able to play a highly effective role in employment creation and
REPORT OF THE RISK MANAGMENT COMMITTEE
Annual Report 2020
safeguarding employment, stimulating domestic demand and keeping economic activities moving. As a result, the trend in the Bangladesh economy has started a turnaround towards the high growth trajectory.
In this regard Sonali Bank Limited focused on various macro-prudential measures including intensive surveillance on adherence to prescribed Asset-Liability Management (ALM) and Foreign Exchange Risk Management Guidelines to rationalize the Advance/Deposit Ratios to curb the over-exuberance in lending. It has seen improved asset quality across our businesses with stronger origination discipline and targeted growth. Loan diversification across the industry sectors and geographics increased as the bank continued to add new clients selectively. Our focus on embedding a sustainable risk culture and an effective enterprise risk management approach are helping to build a more resilient bank for the benefit of our employees, clients and stakeholders. Keeping in mind the burning risk issues we have made significant progress in our work to combat financial crime and have increased focus on our cyber risk management capabilities. Risk is a shared responsibility of everyone in the bank and is an intrinsic part of every decision that we make.
Composition of the Board of Directors Risk Management Committee
In line with the circular no.11 dated 27 October, 2013 of Bangladesh Bank, the Board of Directors Risk Management Committee of Sonali Bank Limited was last re-constituted with the following members of the Board of Directors:
Sl NameStatus
with the Bank
Status with the
committee
01 Mr. Ishtiaque Ahmed Chowdhury Director Chairman
02 Dr. Daulatunnaher Khanam Director Member
03 Mr. Md. Mofazzal Husain Director Member
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
not limited to credit, country cross-border, market, pension,
capital, liquidity and funding and operational risks. The
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.
We have a number of ongoing initiatives that will further enhance the risk management framework and capability of the bank. As part of this framework, in 2020, the Board’s Risk Management Committee has approved a set of principles by conducting monthly meetings that describe the risk management culture we wish to sustain:
z The Board has reviewd quarterly the large borrower’s condition of the bank according to prescribed comprehensive roadmap.
z The Board has reviewed all the segments under core risk management.
z The Board has instructed to submit a policy/guidelines on Sahiah Audit.
z Board has approved IT Equipment Disposal Policy of Soanli Bank Limited, Version 1.0, 2020 I E-mail Policy of Sonali Bank Limited, Version 1.0, 2020 and Internal Capital Adequacy Assessment Process (ICAAP).
z The Board has reviewed Treasury Manual, Liquidity Risk Management Policy, Asset Liability Management Policy/Guidelines, Investment Policy.
The Bank has multiple initiatives underway to improve infrastructure for compliance of risk management, exposure management, data quality, stress testing, operational risk management and reporting. We have also worked to streamline and simplify our processes to serve clients better and drive internal efficiencies.
Before I conclude, I wish to extend my sincere gratitude to my colleagues in the Risk Management Committee for their valuable guidance, support and contribution in carrying out the tasks of the Committee smoothly. I also wish to place my sincere appreciation for the good work rendered by the member of Risk Management Committee of the Bank and the executives along-with the officers of the Risk Management Division of the Bank. I am profoundly thankful to the Chairman and other members of the Board for their confidence reposed in me for steering the risk management agenda of the Bank.
(Ishtiaque Ahmed Chowdhury)
ChairmanBoard Risk Management Committee
124
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 :
Government and other regulators
Customers
Shareholders
Employees
Suppliers and Service Providers
Communities and Environment
Ministry of Finance
Bangladesh Bank
National Board of Revenue
BSEC
ICAB, ICMAB, ICSB
Comptroller of Auditor General of Bangladesh
External Auditors
All business chambers
Retail customers
Rural credit customers
SME and corporate client
Q-cash cardholders
Remittance customers
Importer and exporter
Government of the People’s Republic of Bangladesh
Management trainees and interns
Correspondent banks
Foreign remittance agents
Landlord of leased premises
Maintenance and security service providers
Professionals and self-employers
Civil society
Graduate students
Di�erent communities
STAKEHOLDERS' INFORMATION
Annual Report 2020
Shareholding Structure of SBL :
ParticularsNumber of Shares
As at 31 December, 2020 As at 31 December, 2019General Public - -Government 453,000,000 453,000,000
Total 453,000,000 453,000,000
Present Shareholding Pattern
SI. Sponsor Shareholders No. of Shares Amount in Tk.(%) of
Shareholding
1 The Government of the People's Republic of Bangladesh: On Behalf of Secretary Finance Division Ministry of Finance, The Government of the People’s Republic of Bangladesh
452,999,991 45,299,999,100 99.999998234
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:
SI. Particulars% of Shareholding as at
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.
126
YEAR OF EXCELLENCE
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
1.To include division wise deposit amount into Financial Statements.
Division wise deposits have been included in Financial Statements since 2014.
2.To include division wise loans and advances into Financial Statements.
Division wise loans and advances have been included in Financial Statements since 2014.
3.
To increase sufficient number of ATM Booths with sophisticated machines in both urban and rural branches and urged to make the Bank's website user friendly.
Till 31.12.2020, SBL has established its own 125 ATMs and 08 co-branded ATM Booths with a joint collaboration of Bangladesh Post Office. Furthermore, SBL card holders can also get access of their cards from other booths countrywide. SBL’s website has been developed in such a way that anyone can use the website easily.
4.Requested to arrange the AGM on Friday or Saturday in future, if possible
AGM will be arranged subject to availability of suitable venue.
5.
Suggested for publishing and printing of Annual Report in abridged form with important data/information and uploading the detailed Annual Report in the website of the Bank ensuring green banking practice.
Annual Report is published through the website of SBL (www.sonalibank.com.bd). Mentionable here is that Annual Report of the previous year has been preserved in the mentioned web address.
6.Suggested for rendering better customer service by the branch officials other than that of conventional banks.
Necessary guidelines, instructions in this regard have been provided to the branches by the Management of the Bank from time to time following constant supervision and monitoring from Head Office regarding meticulous compliance of the same.
7.
Suggested to provide adequate logistic support, modern technology and well decoration to all branches for compliance of the Bank and improvement of customer services.
The Management of the Bank is heartily trying to provide adequate logistic support, modern technology and well decoration to all branches for compliance of the Bank and improvement of customer services.
Redressing to Shareholders’ Observations/ Suggestions:
STAKEHOLDERS' INFORMATION
Annual Report 2020
(i) Present Directors of Sonali Bank Limited and their interest in the Bank :
SI. Name Present AddressDate of
Appointment/ Reappointment
No. of Shares
01.Mr. Ziaul Hasan Siddiqui
Chairman of the Board of Directors- 28-08-2019 01
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:
SI. Name Status with SBL
Name of the firms/companies in which interested as proprietor, partner. Managing
Director, managing agent, guarantor, employee etc.
Status
1.
Mr. Ziaul Hasan Siddiqui
Chairman of the Board of Directors
Chairman -- --
2. Mr. A.B.M Ruhul Azad Director -- --
3.Mr. A.K.M. Kamrul Islam FCA, FCS
Director
Mashnoons Limited Chairman
Dhaka Chamber of Commerce and Industry (DCCI)
Senior Vice- Chairman &Director
Japan Bangladesh Chamber of Commerce and Industries (JBCCI) Islam Aftab Kamrul & Co.(Chartered Accountants)
Director
Transparency International Bangladesh Chapter
Partner
Life Member
4.Mr. Ishtiaque Ahmed Chowdhury
Director -- --
5. Dr. Daulatunnaher Khanam Director -- --
6. Mr. Md. Mofazzal Husain Director -- --
7. Mr. Molla Abdul Wadud Director -- --
128
YEAR OF EXCELLENCE
SI. Name Status with SBL
Name of the firms/companies in which interested as proprietor, partner. Managing
Director, managing agent, guarantor, employee etc.
Status
8.Professor Dr. Mohammad Kaykobad
Director -- --
9.Mr. Md. Ataur Rahman Prodhan
CEO & Managing Director
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
Sonali Investment Ltd. (SIL) Director
Central Depository Bangladesh Ltd. (CDBL) Director
Industrial and Infrastructure Development Finance Company Ltd (IIDFC)
Director
Bangladesh Institute of Bank Management (BIBM)
Director
Bangladesh Foreign Exchange Dealers Association (BAFEDA)
Member
STAKEHOLDERS' INFORMATION
Annual Report 2020
COMPARATIVE FINANCIALHIGHLIGHTS 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 Ratio (CRAR)
10.02% 10.09% (0.07) (0.69)
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
130
YEAR OF EXCELLENCE
Operating Profit(Tk. in million)
2020
21,
52
7
2019
17,1
00
2017
11,9
55
2018
20
,25
7
2016
4,2
51
Net Profit After Tax(Tk. in million)
3,2
34
2,2
64
7,0
92
1,5
16
2020 2019 2018 2017 2016
2,7
10
Shareholders' Fund(Tk. in million)
85
616
68
193
7013
7
65
90
2
673
75
2020 2019 2018 2017 2016
Earning Per Share (EPS)(in Tk.)
7.14
5.9
8
5.4
7
18.5
0
3.9
6
2020 2019 2018 2017 2016
Paid up Capital(Tk. in million)
45
30
0
45
30
0
413
00
38
30
0
38
30
0
2020 2019 2018 2017 2016
Capital Adequacy Ratio*
10.0
2% 10
.09
%
10.1
0%
10.3
5%
10.3
3%
2020 2019 2018 2017 2016
GRAPHICALPRESENTATION
STAKEHOLDERS' INFORMATION
Annual Report 2020
159
123
4
2020
1472
60
1
2019
1256
712
2017
120
058
9
2016
Return on Asset (ROA)
0.2
1%
2020
0.2
0%
2019
0.1
8%
2018
0.5
8%
2017
0.1
4%
2016
7.13
%
2020
5.9
8%
2019
7.58
%
2018
7.2
9%
2017
7.0
6%
2016
Return on Investment (ROI)
Net Asset(Tk. in million)
856
16
2020
68
193
2019
7013
7
2018
66
08
7
2017
673
75
2016
1655
50
25
59
65
25
702
0
115
53
01
134
32
8
25
160
25
66
6
32
50
3
28
49
5
36
88
2
129
05
6
1114
83
102
781
92
29
2
105
92
2
20162017201820192020
Tk. in million
Import Export Foreign Remittance
Import Export Foreign Remittance
Total Asset(Tk. in million)
Earning Asset Non Earning Asset(Tk. in million)
202011
95517
39
571
7
2019
106
83
33
40
42
69
2018
93
08
41
376
00
2
2017
850
53
6
40
48
67
2016
796
747
40
38
43
130
68
42
2018
GRAPHICALPRESENTATION
132
YEAR OF EXCELLENCE
1258
786
2020
1158
788
2019
1097
666
2018
1064
311
2017
1031
608
2016
Deposit(Tk. in million)
20
.32
% 26
.26
%
35
.28
%
28
.37%
18.3
7%
2020 2019 2018 2017 2016
Rate of Classified Loan
Classified Loan Recovery(Tk. in million)
1050
1
2020
319
74
2019
36
757
2018
109
12
2017
128
80
2016
2020 2019 2018 2017 2016
(Tk. in million)Loans & Advances Classified Loans
Loans & Advances and Classified Loans
Investment Income from Investment
62
9,69
1
50
0,3
87
44
0,9
21
462,
577
46
8,8
81
40,2
89
28,1
44
34,3
41
33,9
56
30,9
68
2020 2019 2018 2017 2016
(Tk. in million)
Investment Income from Investment
122
6
2020
122
4
2019
1215
2018
12
11
2017
120
9
2016
No. of Branches
58
3,2
33
551,
02
6
46
4,1
66
42
3,2
18
38
4,5
38
107,
674
111,
99
4
121,
88
3
149
,30
2
109
,115
GRAPHICALPRESENTATION
STAKEHOLDERS' INFORMATION
Annual Report 2020
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
134
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
KEY FINANCIAL DATA & RATIOS
STAKEHOLDERS' INFORMATION
Annual Report 2020
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
KEY FINANCIAL DATA & RATIOS
136
YEAR OF EXCELLENCE
HORIZONTAL AND VERTICAL ANALYSIS OPERATING PERFORMANCE
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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
Operating Performance2020 2019 2018 2017 2016
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2020
2019
2018
2017
2016
Operating Performance
Total Revenue
Interest Expenses
Administrative and Other Expenses
Operating Profit
Provisions including Amortization
Profit Before Tax
Provision for taxation
Profit After Tax
Reserve Fund
EPS
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
STAKEHOLDERS' INFORMATION
Annual Report 2020
HORIZONTAL AND VERTICAL ANALYSIS BALANCE SHEET
Balance Sheet Analysis2020 2019 2018 2017 2016
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Cash in Hand
Balance with Bangladesh Bank and
its Agent Bank
Balance with Other Banks and FI'sMoney at Call and Short Notice
Investment
Loans and Advances
Fixed Assets
Other Assets
Total Assets
Balance Sheet Analysis
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2020
2019
2018
2017
2016
Cash in Hand
Balance With Bangladesh Bankand its Agent Bank
Balance With Other Banks and FI's
Money at Call and Short Notice
Investments
Loans and Advances
Fixed Assets
Other Assets
Total Assets
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
138
YEAR OF EXCELLENCE
GRAPHICAL PRESENTATIONSOF PROFITABILITY, DIVIDEND,PERFORMANCE ANDLIQUIDITY RATIO
25
.39
%
2020
22
.26
%
2019
25
.86
%
2018
16.0
8%
2017
5.9
9%
2016
Gross Profit Ratio
22
32
1
2020
176
80
2019
20
811
2018
124
60
2017
48
18
2016
Earning before Provision, Depreciation and Tax
1.8
9
2020
1.8
7
2019
1.5
8
2018
1.6
7
2017
1.4
6
2016
Current Ratio (Times)17
.58
2020
20
.59
2019
17.6
3
2018
18.0
2
2017
16.8
2
2016
Debt Equity Ratio (Times)
4.2
1%
2020
3.9
2%
2019
3.3
2%
2018
10.6
3%
2017
2.1
8%
2016
Return on Equity (ROE)
Return on Loans & Advances
5.5
7%
2020
5.5
1%
2019
5.7
4%
2018
6.8
5%
2017
7.14
%
2016
Cost to Income Ratio
74.6
1%
2020
77.7
4%
2019
74.1
3%
2018
83
.92
%
2017
94
.01%
2016
2
5.1
8%
2020
25
.55
%
2019
24
.33
%
2018
26
.22
%
2017
27.
30
%
2016
E ciency Ratio
STAKEHOLDERS' INFORMATION
Annual Report 2020
SEGMENT WISEGRAPHICAL PRESENATIONS
Industry wise Loans and Advances
Industry wise Loans andAdvancesRural Credit
Micro Credit
Industriul Credit
Agro based Industrial Credit
International Trade
SME Finance
General Adnce and Others
8%
2%
12%
10%
12%
16%
40%
Division wise Loans and Advances
Dhaka
Barisal
Chittagong
Rajshahi
Rangpur
Sylhet
Khulna63% 3%
8%
7%
9%
2% 8%
45
30
0
134
69
166
36
32
8
-96
47
45
30
0
124
00
119
22
121
-117
48
Paid up Capital Statutory Reserve Other Reserve Asset RevaluationReserve
Retained Earnings
Comparison of Segmented Capital2019 2018
Division wise Operating Profit
Dhaka
Barisal
Chittagong
Rajshahi
Rangpur
Sylhet
Khulna
39%
4%34%
9%
6% 5% 3%
Sector WIse Loan & Advances
1%
21%
78%
Government
Other Public
Private
0% 20% 40% 60% 80% 100%
Dhaka
Barisal
Chittagong
Rajshahi
Rangpur
Sylhet
Khulna
Division wise Income vs ExpensesTk. in million
Income Expenses
Segment of Total RevenueSeries1
Division wise Deposit
Dhaka
Barisal
Chittagong
Rajshahi
Rangpur
Sylhet
Khulna
Interest Income
Income on Investment
Non Interest Income
56%
3%
22%
5%
4% 4% 6%
15%
37%
48%
140
YEAR OF EXCELLENCE
STATEMENT OF VALUE ADDITION AND ITS DISTRIBUTIONThis 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:
ParticularsDistribution of Value
Addition 2020Distribution of Value
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
To Employees as Salaries,allowances and bonuses:
Statutory reserve
General Reserve
Retain earnings
Depreciation
Taxation
81%
5% 0% 8%
3%
3%
STAKEHOLDERS' INFORMATION
Annual Report 2020
ECONOMIC VALUEADDED STATEMENTEconomic 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.
Particulars
2020 2019 2018 2017
Taka in Million.
Taka in Million.
Taka in Million.
Taka in Million.
Shareholders' Equity 85,616 68,193 70,137 66,087
Add Cumulative provision for Loans, Investment, Other Asset and Off Balance sheet exposures
82,833 69,273 57,453 47,545
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 issued by Bangladesh Government +2% risk premium
0.11 0.11 0.12 0.12
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
168
57
130
06
134
86
799
4
136
0
2020 2019 2018 2017 2016
142
YEAR OF EXCELLENCE
MARKET VALUEADDED STATEMENTMarket 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 68,192,620,000Book Value 453,000,000 100.00 45,300,000,000Market 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 2019Tier-1 (Core capital) 48,674.18 45,522.76Tier-2 (Supplementary capital) 14,826.68 7,573.65Tier-3 (eligible for market risk only) - -Total Eligible capital 63,500.86 53096.41Total risk weighted assets (RWA): 633,601.70 526,242.30Capital 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 52,624.23Capital surplus/(shortfall) 140.69 472.18
STAKEHOLDERS' INFORMATION
Annual Report 2020
FINANCIAL CALENDER 2020Financial 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
Audited consolidated results for the 4th quarter ended 31 December 2021Will be Announced
onFebruary 28, 2022
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
Unaudited solo results for the 3rd quarter ended 30 September 2021Will be Announced
onOctober 31, 2021
144
YEAR OF EXCELLENCE
CREDITRATING
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.
Surveillance RatingUpto November 2021 Upto June 2020
LongTerm
ShortTerm
LongTerm
ShortTerm
As Government Supported Bank AAA ST-1 AAA ST-1
Without Govt. Supported Bank A ST-2 A ST-2
Outlook Stable Stable
STAKEHOLDERS' INFORMATION
Annual Report 2020
146
YEAR OF EXCELLENCE
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
REPORT ONCORE RISK MANAGEMENT
RISK GOVERNANCE
RISKS CREDIT, MARKET,LIQUIDITY, OPERATIONAL,ICT, AML,ENVIRONMENTAL,OTHERS
RISK APPETITE,RISK TOLERANCE,RISK LIMIT,RISK APPETITESTATEMENT
RISK MANAGEMENTTOOLS POLICY & LIMITSGUIDELINES,PROCESS& STANDARDS MEASURING,MONITORING,REPORTINGSTRESS TESTING
RISK MANAGMENT
Annual Report 2020
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.
Risk Management Division
As per BB’s instruction SBL has reformed its risk management division in following structure:
BOARD’S RISKMANAGEMENT COMMITTEE
RISK MANAGEMENT COMMITTEE ATMANAGEMENT LEVEL
Credit Risk Management Committee
Asset Liability Risk
Management Committee
Foreign Exchange Risk Management Committee
Anti Money Laundering Risk
Management Committee
InternalControl and
Compliance Risk Management Committee
ICT Risk Management Committee
CHIEF RISK OFFICER (CRO)(DMD)
HEAD OF DIVISION(DGM)
CRMDesk
Capital Management
Desk
ALMDesk
ICCDesk
StressTestDesk
AMLDesk
ICTDesk
FXDesk
148
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 appetite statement and key risk appetite measures. Together application of the risk appetite statement and monitoring of the key risk appetite measures help to ensure the Bank stays within appropriate risk boundaries. The Bank’s Credit Risk Appetite further defines the Bank’s risk appetite with respect to lending, counter-party credit risk, and other credit risks (such as investments).
The Bank’s Risk Appetite Framework combines qualitative and quantitative terms of reference to guide the Bank in determining the amount and types of risk 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.
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.
Key RiskAppetiteMeasures
RiskCapacity
RiskAppetite
Statement
RiskAppetite
Guidelines,Process& Standards
Measurment,Monitoringand Reporting
Policies& Limits
Stress Testing,RMP,CRMR
RISK MANAGEMENTTOOLS
RISK MANAGMENT
Annual Report 2020
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:
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
Reporting to Central Bank
Reporting to Board of Directors
Reporting to Management
Risk Reporting
150
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
Individuals ShockAfter Minor Shock (%)
After Moderate Shock (%)
After Major Shock (%)
1 Performing loan directly downgraded to B/L: Sectoral Concentration 1
9.99 9.93 9.87
2 Performing loan directly downgraded to B/L: Sectoral Concentration 2
9.96 9.85 9.73
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 Guidelinesz Credit Assessment and ICRRSz Approval Authorityz Segregation of Dutiesz 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 Managementz Role of the Credit Risk Management Committeez Organisational Structure of Credit Offcials
C. Procedural Guideline
z Credit Administrationz Credit Monitoringz Credit Recovery
RISK MANAGMENT
Annual Report 2020
z Other Regulations of BB Relating to Credit Riskz Policy on Loan Classificationsz Policy on Single Borrower Exposurez Policy For Rescheduling of Loansz Policy For Loan Write Offz Guidelines on Managing Core Risk in Bankingz Guidelines on Environmental Risk Managementz Restrictions on Lending to Directors of Private Banksz Implementation of Credit Risk Grading Manualz Prudential Guidelines for Consumer Financing and Small Enterprise Financingz 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.
Market 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 rates, Foreign Exchange rates, Traded Prices of Equity Shares and other commodities etc.
Liquidity Risk:
It generates from the failure or inability to meet current and future financial obligations by bank due to shortfall of cash or cash equivalent assets. Banks are exposed to liquidity risk where the more liquidity is generated, the greater are the possibility and severity of losses associated with having to dispose of illiquid assets to meet the liquidity demands of depositors. However besides depositor, revealed that banks that make commitments to lend are exposed to the risk of
unexpected liquidity demands from their borrowers.
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.
CO
VENANTRISK
STRATEGIC & BUSINESS RISK
REPUTATION & BEHAVIORAL RISKS
REPUTATION & BEHAVIORAL RISKS
STRATEGIC & BUSINESS RISK
STR
AT
EGIC
& B
USI
NES
S R
ISK
STR
AT
EGIC
& B
USIN
ESS RISK
Credit & Counterparty
Risk
OperationalRisk & AML
or CFT
InterestRateRisk
ForeignExchange Rate Risk
CA
PIT
AL
AD
EQUACY RISK
LIQUIDITY RISK
Statutory liquidity ratio of SBL
Particulars Dec- 2019 Dec- 2020
CRRRequired 5.50 % 4.00 %
Maintained 7.9 % 7.7 %
SLRRequired 13.00 % 13.00 %
Maintained 41.57 % 42.32 %
Structural Liquidity Profile
Particulars Dec- 2019 Dec- 2020 Ideal Scenario
LDR 47.55% 46.57 % 82%-85%
MCO 9.84 % 11.56 20%
152
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.
RISK MANAGMENT
Annual Report 2020
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
1 Residual RiskError in documentation
Error in valuation of collateral
2 Evaluation of Core Risk Management Ratings of Core Risks implementation
3 Credit Concentration RiskCredit Concentration Risk
Market Concentration Risk
4 Liquidity Risk
Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio (SLR)
Medium Term Funding (MTFR)
Maximum Cumulative Outflow (MCO)
Advance Deposit Ratio (ADR)
5 Reputation Risk
Credit Rating conducted by ECAIs
Internal Fraud
External Fraud
Non-Payment or Delayed payment of accepted bills
6 Settlement Risk Issues of foreign trade settlement
All types of receivables
7 Strategic Risk
CAMELS rating
Operating expenses
Classified loans ratio
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.
154
YEAR OF EXCELLENCE
DISCLOSURE ON RISK BASED CAPITAL UNDER BASEL IIIBASEL 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
(d)The following subsidiaries & associates has included their financial activities and their aggregate capital is as under:
(Tk. in Crore)
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
Qualitative Disclosures
(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.
BASEL III & MARKET DISCIPLINE
Annual Report 2020
66%
20%
0%
14%
Retained earnings
General reserve
Statutory reserve
Paid up capital
Solo Tier 1
66%
20%
0%
14%
Retained earnings
General reserve
Statutory reserve
Paid up capital
Conso Tier 1
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.
Quantitative Disclosures
(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
156
YEAR OF EXCELLENCE
Tier 2 Capital
0%
100%
General Provision
Revaluation Reserve
C) Capital Adequacy
Qualitative Disclosures
The Bank assesses the adequacy of its capital in terms of Section 13 (1) of the Bank Company Act, 1991 (Amended up to 2013) and instruction contained in BRPD Circular No. 18 dated 21 December 2014 [Guidelines on ‘Risk Based Capital Adequacy for Banks’ (Revised regulatory capital framework in line with Basel III)].
However, in terms of the regulatory guidelines, the Bank computes the capital charge / requirement as under:
i. Credit risk: On the basis of Standardized Approach;
ii. Market risk: On the basis of Standardized Approach; and
iii. Operational risk: On the basis of Basic Indicator Approach
Sonali Bank Limited is very much aware of maintaining Capital to support its 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 been prepared and subsequently approved by the Board.
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 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’.
Quantitative Disclosures
(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.
48
66
.19
148
2.6
7
148
2.6
7
SOLO CONSO
Comparison of Capital (Tk. in Crore)
Tier-1 Tier-2
48
67.
41
Credit Risk
77%
Market Risk
10%
Operational Risk
13%
Capital Requirement Under Piller-1
BASEL III & MARKET DISCIPLINE
Annual Report 2020
D) Credit Risk
Qualitative Disclosures
Credit risk is the potential loss that may arise from a borrower’s failure to repay a loan or meet its obligation in accordance with agreed term. Banks are very much prone to credit risk due to its core activities i.e. lending to corporate, SME, individual, another bank/ FI.
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.
CLSL#
Types of Loans Classification Status Period for Classification
1 (past due)
SMA (>2<3) Month
SS (≥3<9) Month
DF (≥9<12) Month
BL ≥12 Month
2 Demand Loan
SMA (>2<3) Month
SS (≥3<9) Month
DF (≥9<12) Month
BL ≥12 Month
3 Fixed Term Loan
SMA (>8<9) Month
SS (≥9<15) Month
DF (≥15<18) Month
BL ≥18 Month
4 Short Term Agricultural & Micro Credit
SMA (>8<9) Month
SS (≥9<15) Month
DF (≥15<18) Month
BL ≥18 Month
(ii) Approaches followed for specific and general allowances:
Rate of Provision Requirement
Unclassified ClassifiedTypes of Loans & Advances Standard SMA SS DF BLShort Term Agricultural Credit 1% - 5% 5% 100%Consumer Financing Other than Housing Finance & Loans to Professionals to setup business
2% 2% 20% 50% 100%
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.
158
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.
Quantitative Disclosures
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.
Credit Risk (Continued)
(b) Total gross credit risk exposures broken down by major types of credit exposure.(Tk. in Crore)
On Balance Sheet Solo ConsolidatedCash 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
BASEL III & MARKET DISCIPLINE
Annual Report 2020
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 1.17Special Term Loan against Fund Received from BB for Workers' Salary of Export Oriented Industries Under Covid-19
18.77 18.77
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
160
YEAR OF EXCELLENCE
Credit Risk (Continued)
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 Consolidated1) Dhaka-1 Division 25742.98 25914.662) Dhaka-2 Division 5905.61 5905.613) Barisal Division 1538.67 1538.67
4) Chittagong Division 3025.42 3025.42
5) Comilla Division 1976.13 1976.13
6) Faridpur Division 2113.80 2113.807) Khulna Division 4892.32 4892.32
8) Mymensingh Division 3021.66 3021.669) Rajshahi Division 4309.33 4309.3310) Rangpur Division 5143.00 5143.0011) Sylhet Division 909.42 909.42Outside BangladeshKolkata &Siliguri 44.93 44.93Total 58623.27 58794.95
(d) Industry or counterparty type distribution of exposures, broken down by major types of credit exposure.
(Tk. in Crore)
Industry Name Solo Consolidated
1) Agricultural / Rural Credit 4947.45 4947.45
2) Micro Credit 1221.02 1221.02
3) Industrial Credit 8185.57 8185.57
4)Agro-based Industrial Credit
1900.80 1900.80
5) International Trade 9401.53 9401.53
6) SME Finance 7615.50 7615.50
7) General Advance & Others 25351.40 25523.08
Total 58623.27 58794.95
(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
Division wise Loans and Advances
Dhaka
Barisal
Chittagong
Rajshahi
Rangpur
Sylhet
Khulna64% 3%
9%
7%
8%
1% 8%
Industry wise Loans and Advances
Industry wise Loans andAdvancesRural Credit
Micro Credit
Industriul Credit
Agro based Industrial Credit
International Trade
SME Finance
General Adnce and Others
9%
2%
14%
6%
18%
4%
47%
BASEL III & MARKET DISCIPLINE
Annual Report 2020
Credit Risk (Continued)(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 purchased and discounted
Solo Conso
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
Unclassified 12425.05 12425.05
Classified 44.47 44.47
Sub Total 12469.52 12469.52
Private Solo Consolidated
Unclassified 34944.80 35116.48
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
162
YEAR OF EXCELLENCE
Credit Risk (Continued)
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.
Qualitative Disclosures
(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.
Sector WIse Loan & Advances
1%
24%
75%
Government
Other Public
Private
BASEL III & MARKET DISCIPLINE
Annual Report 2020
Quantitative Disclosures
(b) Value disclosed in the balance sheet of investments, as well as the fair value of that equity at cost price and market price has been disclosed as under:
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.
Qualitative Disclosures
(a) The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including assumptions regarding loan prepayments and behavior of non-maturity deposits and frequency of IRRBB measurement.
Interest rate risk is the potential impact on the Bank’s earnings (Net Interest Income- NII) and net asset values due to changes in market interest rates. Interest rate risk arises when the Bank’s principal and interest cash flows (including final maturities), for both On and Off-balance sheet exposures, have mismatched re-pricing dates. The amount at risk is a function of the magnitude and direction of interest rate changes and the size and maturity structure of the mismatch position. The portfolio of assets and liabilities in the banking book sensitive to interest rate changes is the element of interest rate risk.
To manage this risk in the banking book, bank considers the impact of interest rate changes on both assets and liabilities, and its particular features including, among other things, terms and timing. Changes in interest rates affect both the current earnings (earning perspective) as well as the net worth of the Bank (economic value perspective). 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.
Quantitative Disclosures
(b) The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including assumptions regarding loan prepayments and behavior of non-maturity deposits and frequency of IRRBB measurement.
(Rate Sensitive Assets & Rate Sensitive Liabilities)
as on 31 December 2020
Particulars TOTAL Call 2-7 days8 days- 1 Month
1-3 Month3-12
Months1-5 Years
More than 5 years
Fund Placement with Banks & NBFIs
3,218.08 - 60.00 93.00 526.00 2,422.63 101.93 14.52
Money at Call & Short Notice
903.13 903.13 - - - - - -
Investment in Govt.-Securities
60,290.55 100.00 944.83 2,265.32 8,437.36 9,767.91 21,838.57 16,936.56
Other Investments 3,034.50 - - - - 2,105.90 382.18 546.42
164
YEAR OF EXCELLENCE
Particulars TOTAL Call 2-7 days8 days- 1 Month
1-3 Month3-12
Months1-5 Years
More than 5 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 & discounted
1,306.13 13.98 62.33 397.53 832.29 - - -
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 Bangladesh Bank
(5,100.15) - - - - - (5,045.22) (54.93)
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 MISMATCH
(3,465.44) (2,946.67) (2,320.41) (6,495.36) (16,141.38) (8,536.58) 10,984.65
* 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.
Qualitative Disclosures
(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 ofMarket risk
Capital charged For 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
BASEL III & MARKET DISCIPLINE
Annual Report 2020
(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.
Quantitative Disclosures
(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.
Qualitative Disclosures
(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.
166
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.
Quantitative Disclosures
(Tk. in Crore)
Solo ConsolidatedThe 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.
Qualitative Disclosures
(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.
BASEL III & MARKET DISCIPLINE
Annual Report 2020
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.
Quantitative Disclosures(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.
Qualitative Disclosures
(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.
168
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.
Quantitative Disclosures(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
Qualitative Disclosures
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.
BASEL III & MARKET DISCIPLINE
Annual Report 2020
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.
Remuneration (Continued)
(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.
170
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.
Remuneration (Continued)
(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.
Quantitative Disclosures
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:
Particulars number of employees (In Unit)
Total amount
of guaranteed bonuses (In Million Taka)
Guaranteed bonuses awarded during the year 2020 NIL NIL
BASEL III & MARKET DISCIPLINE
Annual Report 2020
Remuneration (Continued)
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
172
YEAR OF EXCELLENCE
BASEL III & MARKET DISCIPLINE
Annual Report 2020
SBL’s sustainability ethos is one that is deeply embedded in the overall business strategy and therefore intrinsic to the way in which the Bank conducts its business. Sustainability is at the very core of the Bank’s corporate strategy.By integrating social and environmental responsibility into core business processes and stakeholder management, the Bank recognizes its ability to achieve the ultimate goal of creating both social and corporate value. By integrating sustainability into a bank’s business strategy and decision making processes, institutions can support environmentally or socially responsible projects, innovative technologies and sustainable enterprises. Sonali Bank Limited, as the leading bank, is also considering the two aspects into its core business through the integration of environmental and social considerations into product design, mission policy and strategies.
Mission of Sonali Bank Limited
z Mission of Sonali Bank Limited in achieving a sustainable economy incorporates the strategy and policy of the government which includes:
z Poverty alleviation through contributing in socio-economic development of the country.
z Achieve food security by promoting sustainable agriculture and by enhancing facilities in transactions of the farmers.
z Support quality education and facilitate the school going students.
z Create awareness of its employees and the valued clients for pollution free Bangladesh.
z Sustainable and gradual positive financial growth through financing established and promising sectors.
z Uphold customer care and responsible financial services.
z Build balanced and green Bangladesh by protecting forests and by combating desertification.
z Promote peaceful and inclusive societies for sustainable development.
z Corporate infrastructure and culture in the institution.
Green Strategic Planning: Green Strategic Planning has prepared and approved by the Board. It was circulated vide Head Office circular letter no. 683, RMD circular letter no. 09, date-15.07.2015.
Sustainable Finance Unit
As green environment has a positive effect on environment, Sonali Bank Limited expands its hand to the environment friendly activities as per regulatory guidelines. A separate sustainable finance unit has been established to implement diversified measures such as green financing, create consciousness among the people, less consumption of water, electricity and paper, and encourage financing commercial projects that supports ecological balance to make SBL an environment responsive biggest commercial bank. To reduce the pressure over electricity, SBL is inaugurating new branches which are capable of getting more sunlight and fresh air during office hours.
Sl. ProjectsNumber of
Projects
Amount
(TK.in Million)
1 Solar Panel 1556 45.00
2 ETP 01 847.15
3 Pet Bottle 01 8.70
4 Bio Degradable Products 01 22.45
5 E Bricks - 179.13
Total 1559 1102.43
REPORT ON SUSTAINABLE BANKING
174
YEAR OF EXCELLENCE
Number of Total Branches
1224
Number of Any Branch Banking
Branches 1224
Number of CBS Branches
1224
No of Total Accounts
2,14,43,905
No. of Branches Powered by Solar
Energy 45
We show our customers that we are on their side through service excellence, supporting
financial wellbeing, good customeroutcomes and advocacy, and digital
innovation.
We are rebuilding trust and our reputation by engaging proactively and openly with
government and regulators, investing in communities and education, and
rolemodelling reconciliation.
OUR CUSTOMERS
OUR COMMUNITY
NO
POVERTY
QUALITY
EDUCATION
DECENT WORK AND
ECONOMIC GROWTH
PARTNERSHIPS
FOR THE GOALS
QUALITY
EDUCATION
DECENT WORK AND
ECONOMIC GROWTH
REDUCED
INEQUALITIES
GENDER
EQUALITY
REDUCED
INEQUALITIES
PARTNERSHIPS
FOR THE GOALS
We motivate our people through leadership and engagement, by promoting health,
wellbeing, diversity and inclusion, and by providing training and career development.
We deliver sustainble financial performancethrough strong conduct, culture,
governance, accountability, remuneration and responsible business practices.
OUR PEOPLE
OUR SHAREHOLDER
GOOD HEALTH
AND WELL-BEING
AFFORDABLE AND CLEAN ENERGY
REDUCED
INEQUALITIES
PARTNERSHIPS
FOR THE GOALS
GENDER
EQUALITY
RESPONSIBLE
CONSUMPTION
AND PRODUCTION
PARTNERSHIPS
FOR THE GOALS
DECENT WORK AND
ECONOMIC GROWTH
CLIMATE
ACTION
Sustainable Developments GOAL:
Digital Banking: Till December 2020, achievement of this bank in online banking is as follows:
A) Online Banking:
REPORT ON SUSTAINABLE BANKING
Annual Report 2020
Incorporation of Environmental Risk into Credit Risk Management:
Sonali Bank Limited has incorporated environmental and climate change risk as part of the existing credit risk methodology prescribed to assess a borrower in line with Bangladesh Bank ERM guideline and related instructions. Bank use environmental risk rating (EnvRR) for facilitating elements of credit risk arising from environmental issues and regulatory compliance as well. Environmental risk is a facilitating element of credit risk. So Sonali Bank Limited integrated environmental risk management with credit risk management in all aspects.
On receiving the proposal for financing, Bank conduct a preliminary environmental risk review using Environmental Due-Diligence (EDD) checklists. There is a general EDD checklist, ten sectors EDD checklists and a guidance matrix. Bank determines the environmental risk rating (low, moderate and high) of any project on the basis of checklist.
In-house Environmental Management: By the in-house environmental management system, to prevent the water, paper, electricity and fuel wastage and using them efficiently a “Green Office Guide” including “few instructions” was issued in the Head Office Circular Letter- 411 (Risk Management Department Circular letter – 03) of 23 September 2012. According to the instruction, every office and branches were ordered to estimate the inventory of water, paper, electricity and fuel and keep that under a certain limit.
Green Marketing: Marketing of products and to provide services to the customers, we try to highlight the merits and demerits of the products. Simultaneously, we are taking under consideration the project (funded and to be funded) whether that is safe and risk free for environment at the time of granting the loans.
Staff Training, Creating Consumer Awareness, And Green Banking Activities: In line with environmental law, we are inspiring people to run their business and financial activities using the inventories properly and involving them to save the environment. Sonali Bank Staff College is gradually organizing training sessions on green banking.
Publishing and Promoting Projects under taken: We are reporting about our green banking activities to Bangladesh Bank on quarterly basis in the prescribed form of the Bangladesh Bank.
Developing Sector Specific Environmental Policy: SBL also follows Bangladesh Bank Environmental Risk Management (ERM) guidelines, Environmental Coservation Act- 1995 (ECA 1995), Environmental Conservation Rules (ECR 1997) and other relevant guidelines. We develop Sector Specific Environmental Policies for different environmental sensitive sectors such as agriculture, agro business (poultry and dairy), agro farming, leather (tannery), fishery, textile and apparels,
renewable energy, pulp and paper, sugar and distillery, construction and housing, engineering and basic metals, chemicals (fertilizers, pesticides and pharmaceuticals), rubber and plastic industry, hospital/clinic, chemical trading, brick manufacturing, ship breaking, jute and jute goods etc. We are developing tools for rating the business that are being well financed and properly monitored. Our policy discourages financing red category or other environmentally hazard projects.
Social Impact of Sustainable Banking: With our material issues in mind, we have identified the SDGs that are most relevant to our business and stakeholders.
Employees and Talent Management: In order to be the best retail and commercial Bank for our customers, we have to begin with our employees. If they feel proud of belonging to SBL and are more committed, they will be able to earn the lasting loyalty of our customers. SBL endeavors to attract and retain the best talent, and wants its professionals to be motivated, committed and fairly paid. SBL employees share the corporate culture focusing on fulfillment of its purpose, helping people and businesses prosper, and consistently doing things in a simple, personal and fair way.
Year Total Courses Total Trainees
2020 406 6319
2019 1068 23067
2018 798 15121
2017 460 17015
2016 578 10867
Knowledge: Training is one of the key tools for professional development at SBL. With a staff college including 05 (Five) training institutes, BIBM, Bangladesh Bank training academy and other training institutes, Sonali Bank Limited provided training to 6319 officers through 406 training courses in 2020.
Community Investment: SBL also contributes to economic
and social development through initiatives and programs
that support the community. At SBL, we believe that the
most rewarding investment is investing for the society. We
are driven by our purpose to sustain and ensure growth by
making profit for the stakeholders. We believe in creating
long-lasting value for our clientele, stakeholders, and
employees and above all for the community we operate in.
Tax Contribution: SBL contributes economically and
socially to the countries in which it operates by paying all
direct taxes and withholding indirect taxes from third parties,
collaborating fully with the local tax authorities.
176
YEAR OF EXCELLENCE
REPORT ONHUMAN RESOURCES Human resource development is regarded as one of the
integral parts in Sonali Bank limited. It is important to utilize
human capital more efficiently to achieve institutional goals
as it is easy to make proper distribution of other assets of the
institution through skilled and capable manpower. We have
a pool of talented and skilled workforce. We also focus on
their career development by nominating them for different
training, seminar and workshop both home and abroad.
In the year of 2020, the Human Resource Development
Division (HRDD) made a significant progress towards
assembling resilient organization by focusing on strategic
personnel planning, flair attraction and management and
in leadership development by sustainable resourcing of
significant roles. The HRDD of Sonali Bank Limited performs
the following key roles:
z Facilitate the process of recruiting appropriate
candidates for the organization.
z Identifies and meets the training requirements
of existing staffs.
z Ensure employees welfare and positive
attitude amongst them .
z Ensure better working environment for the
employees.
z Raise awareness of current workplace
legislation.
The Board of Directors and the management team of Sonali
Bank Limited always emphasize on appointing talents,
developing human and technical skills of the employees so
that the organization can get optimum output by utilizing
limited workforce. In viewing, a supernumerary posts, an
innovative area of operation, performance and merit based
promotion, right man in right place posting policy are among
the few initiatives which were approved and implemented
by SBL authority in 2020. A tabular presentation of the
designation-wise number and gender of the staffs are given
below:
Designation2020
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, Sonali Bank Representative Offices)
49 - 49
Local Based Staff (Overseas Branches, Sonali Bank UK Limited, SECI, Sonali Bank Representative Offices)
31 - 31
Total 15,680 3,238 18,918
In percentage 82.9% 17.1% 100.0%
REPORT ON HUMAN RESOURCES
Annual Report 2020
Recruitment and Posting
Recruitment is the apparent stair to fill up the vacancies, as every employee consequently retires from the job after completion of the tenure (59/60 years) at a normal course. In order to cope with the growing demand of banking products and services and to operate new branches and divisions of
SBL, recruitment is inevitably required. The HRDD of the
Bank has been consistently recruiting manpower at different
grades and tire to meet the vacancies as desired. More over
to ensure the transparency and accountability, transfer/
posting is also a regular phenomenon is done by Human
Resource Management Division of SBL, accordingly.
HRDD has sent requisition to Bankers Selection Committee
(BSC), Bangladesh Bank for recruitment of 9,543 Senior
Officer/Officer & equivalent posts (Dec-2019 based). In
2020, total 1303 fresh new talents were added into the
workforce of SBL while 3(three) GM/DGM level contractual
posts were filled by specialist and experienced candidates
who are helping to drive the banking business forward.
To ensure the Security of Head Office/ Controlling Offices/
Branches/ATM Booths/ Pledge Godowns by the embodied
Ansar we signed Memorandum of Understanding (MOU)
with Bangladesh Ansar & VDP authority.
List of recruitment from 2016 to 2020 in different grades are given below:
YearCFO
(Contractual)CITO
(Contractual)CAO
(Contractual)CSO
(Contractual)
Law Consultant
(contractual)
Senior Officer/
Equivalent
Officer/ Officer Cash/
EquivalentTotal
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
Mr. Ziaul Hasan Siddiqui, Chairman of SBL, inaugurated the Foundation course
Training certificate handed over by Mr. Ataur Rahman Prodhan, CEO & Managing Director of SBL
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
178
YEAR OF EXCELLENCE
Training and Development
The Human Resource Development Division (HRDD) of Sonali Bank Limited took necessary initiatives to impart fundamental knowledge as well as the latest developments and banking rules and regulations to the employees so that they could understand the customer’s demands and deliver prompt and efficient services. To make the above goals successful, SBL has one Staff College in Dhaka and six training institutes across the country. Apart from these institutions, training programs and workshops for the employees were carried by Bangladesh Institute of Bank Management (BIBM), Bangladesh Bank Training Academy (BBTA), National Academy for Planning & Development (NAPD) and other organizations throughout the year 2020. The number of courses and trainees undergone various training programs during 2016 to 2020 are presented in the following table:
Year Number of courses Number of trainees
2020 266 7,152
2019 796 12,775
2018 709 11,133
2017 730 11,822
2016 578 10,867
In 2020, 5(Five) officials participated various foreign training/workshops/seminars organized by renowned global organizations. Some of those are:
1. Dun & Bradstreet South Asia Middle East Limited, Colombo, Sri Lanka.
2. State Bank Institute of Leadership (SBIL), West Bengal, Kolkata, India
Last but not the least, to enhance the knowledge and skills of the employees of the Bank, there is a central library which is located at the 7th floor of Sonali Bank Limited, Head Office, Motijheel, Dhaka. The library is enriched with 10,988 books on Banking, Foreign trade, Computer, Management, Accounting, Commercial and industry law, Agriculture and industry finance, Economics, Religion and literature and other contemporary books and journals. Various foreign journals like the Economist, the Times, the Newsweek, the Reader’s Digest and other famous local and international journals and papers are available at the library. In 2020, total One thousand books bought on various topics.
Employee’s perks and privileges
SBL is very sincere to the welfare of its employees. In 2019, the Board of Directors of the Bank approved 3 (three) incentive bonuses- each equivalent to “Basic Salary”, recreation leave along with one month basic salary for every three years after of service to all of its permanent employees. Provident fund facility, gratuity fund, death cum retirement benefits, leave encashment, two festival bonuses, bangla new year allowance, 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 are provided to the employees.
Occupational health, safety and environment
The Board and the management of SBL sincerely believe in safety, health security at work place that is a prerequisite for sound state of mind of employees for delivering satisfactory services to the customers. That is why SBL takes necessary actions for ensuring healthy and safe workplace for the 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
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 are prepared to assume responsible roles.
Sonali Bank Staff College
Bangladesh Institute of Bank Management
REPORT ON HUMAN RESOURCES
Annual Report 2020
Human Resource Accounting
Human Resource Accounting is the process of identifying and reporting investment made in the human resources of an organization. It is done to furnish the value information for making proper and effective management decisions about acquiring, allocating, developing and maintaining human resources in order to achieve cost effective organizational objectives. Soon after the recruitment and the process of making the officers competent by imparting adequate training, Human Capital Accounting (HCA) is done so that
the decisions involving the recruitment, development,
compensation and replacement of human resources on
a value for money can be taken accurately. SBL regularly
follow-up and looks into some important areas of Human
Resource Accounting for mathematical and co-relational
understanding on the main business factors. The total value
of Human Capital has been ascertained by present value of
future earning model (Lev and Schwartz) at Tk. 215,667 in the
year 2020 and Tk. 220,130 in 2019.
Reward and Motivation
Sonali Bank Limited has a strong culture of rewarding and motivating the employees such as Best Manager Award, Letter of Appreciation for outstanding performance, financial reward for classified loan recovery, fulfilling deposit and profit target etc. The meritorious children of the employees are awarded Chairman’s Award, MD and CEO’s Award and General Award for bright performance in SSC and HSC examinations. Various financial honoriums are given to the employees for innovative products generation and passing Banking Diploma examination.
Our Priorities for 2021
I. One of the plans in 2021 is to train up the employees on our refreshed Position Statements. The HRD Division is planning some effective processes by which our employees can easily cope up with the Core Banking Solutions (CBS) and can bring pace in banking activities. There is a massive plan to introduce technology and digital education modules for developing prompt and dynamic service. Training modules related to BASEL-III, employee tax, green banking is to get priority. SBL has also a HR Plan which aims at expanding its business area and creating more employment opportunities. To
distribute the manpower of SBL, the HRD Division has taken initiative to update the organogram which will ensure fair distribution of manpower throughout its branches and offices.
II. To bring performance measurement and perform ensures that it has a right number and kinds of people at the right places at the right time capable of effectively and efficiently completing assigned task to achieve its organizational objectives. SBL has also a HR Plan which aims at ensuring optimal employment and justified distribution of manpower throughout its branches and offices as per organogram. To simplify the prevailing HR practices adopting the modern technology and best practices SBL is set to review the existing policies.
III. To bring performance measurement and performance based incentive related activities of HRM;
IV. Training need analysis and process development;
V. Preparation of training and development roadmap;
VI. Improvement of service benefits;
VII. Improvement of HR policies and procedures;
VIII. Adoption of HR Accounting System.
GradePer Capita Value
2020 2019
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
The following table projects the age-group wise value in 2020 and 2019.
180
YEAR OF EXCELLENCE
REPORT ONFINANCIAL INCLUSION
Financial inclusion means providing facilities to access of the un-banked people and firms to the range of financial services timely and also adequate credit for low income people at a reasonable cost. For overall economic growth and sustainable economic development, financial inclusion plays a vital role in achieving goals of the government in any developing country. As a developing country, most of our poor, illiterate people and also people of remote area lack access to financial activities like savings, credit, insurance etc. Unbelievable that these people are still remained un-banked at the age of 21st century which is called the age of information technology. So, we have a large scope to embrace the wide range of un-banked people to the mainstream of regular banking operations. According to the recent development theories, the greater financial inclusion we have, the better positive impact on the lives of the poor and disadvantaged segment can be achieved.
An inclusive financial system thus indicates that appropriate financial inclusion is multi dimensional in nature offering quality financial services in a convenient way, extending access to all segments of the population with equal opportunities and reducing inequalities in an economy. Being the largest commercial Bank, Sonali Bank Limited is also offering diversified products to attract the people of different cultures and testes in line with Bangladesh Bank guidelines.
SBL’s goal for financial inclusion To ensure steady and fair economic growth by a wide range of financial inclusion, following prior policies has been developed.
z Access of all households to a full range of financial services at a reasonable cost and time.
z Extension of banking services and products to un-banked and underprivileged people.
z Being responsive and support quickly to the government’s growth strategy and Bangladesh Bank’s policy.
z Include different classes of people through introducing new products.
z Financing in agriculture, SMEs and environment friendly activities.
z “School Banking” is introduced to make the habit of savings by the students of school from their early age.
z Financing higher education and overseas employment to take the country ahead in the near future.
z Good governance by clear regulation and industry performance standards.
z Financial and institutional sustainability to ensure stability and certainty of return of investment.
Status of financial inclusion in SBL
Sonali Bank Limited is the leading bank by progressing successfully towards the goal of its financial inclusion program. Some of these are as follows:
Sl.no. Name of programNumber of Accounts Till
2020Number of Accounts Till
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
As agriculture is the lifeline of our economy, government gives highest priority for the facilities of the farmers. Sonali Bank Limited has absolute support towards the development program of the government. In SBL, farmers can open a saving account with an initial deposit of Tk. 10.00 at
higher deposit rate and free of maintenance charge or
service charge. Moreover, a deposit product named “Sonali
Krishak Shanchay Scheme (SKSS)” of Tk. 50, 100 & 200 at
a compound interest rate of 9% has been introduced for
farmers. As a result, total number of farmers account stood
at 1,590,734 in 2020.
REPORT ON FINANCIAL INCLUSION
Annual Report 2020
Social Safety Net Program
Sonali Bank Limited is the pioneer of implementing the Social Safety Net Program which targets at taking the un-banked people of the society under the gigantic branch coverage of the Bank through its diversified products to meet the needs of the people. Number of accounts under this program was 2,885,656 in 2020 which was 2,626,563 in 2019.
Freedom Fighters Account
SBL takes pride of being a helpful hand of the Freedom Fighters of the country as they are the hero of our Liberation War, 1971. The Freedom Fighters get special allowances from the government through this Bank. Moreover, the Bank offers loan facilities with a lower interest rate. As per December 2020, the total number of Freedom Fighters account was 243,011.
School Banking
To make the habit of savings by the students of school and college from their early age, Bangladesh Bank introduced “School Banking” guidelines. As per BB guidelines, Sonali Bank Limited has come forward with all out effort to make this program successful. The account holders of this program get better interest rate. Till the end of 2020, total School Banking account stood at 112,106.
Others
As a part of financial inclusion, SBL has facilities to open account for other sections of the people such as (a) Hindu religious welfare trusts, destitute people affected by cyclone Aila, employment program for the very poor, rehabilitation program under Ministry of Religion and Cleaners of Dhaka North and South City Corporation, (b) Small Life Insurance Program and (c) RMG Sector.
Fair
To create awareness among people about the products and services of financial sector, to introduce banking services at national level and to make the people banked this bank participated in various fair in 2020.
Loans and Advances:
SBL’s agricultural credit policies for the farmers have been relaxed for a sustainable financial inclusion to impose a greater impact over our economy. The Bank successfully launched projects like “UNMESH”,”JAGO NARI” for the poor farmers and female entrepreneurs. Besides these, a new product named “BICYCLE LOAN” upto Tk. 15,000/- at a simple interest rate of 9% for the students of Class-6 to Class-10 has been launched successfully.
Role of SBL in enhancing financial inclusion
z Being the helping hand of the Governments inclusive growth strategy, SBL has taken financial Inclusion as utmost priority for accelerating economic growth.
z SBL has extended lending to the under-served/un-served economic sectors.
z Provides credit facilities to SME entrepreneurs, agricultural and other rural and urban farm and non-farm productive activities throughout the country.
z For the physically and mentally disabled people, SBL has taken comprehensive programs.
Recent steps taken by SBL
SME Women Entrepreneur’s Development Unit has been set
up at Head Office and all field level Controlling Offices of
this Bank.
z Necessary guidelines have been issued to Branches/ field level controlling offices for disbursement of Cluster based SME Loan.
z Introduced Online Banking, Any Branch Banking and SMS Banking to attract every class of people.
z Successfully launched projects named “BICYCLE LOAN”, “Adarsha Gram Karmashuchi”,
z “UNMESH”, “JAGO NARI” for the students, poor farmers and female entrepreneurs respectively with easy terms and conditions.
z Relax the policies for the un-banked poor and disadvantaged people.
z Agricultural credit policies have been relaxed for stimulating financial inclusion.
z Farmers account opened with Tk. 10.00 are encouraged with higher interest rate and free of maintenance charge or service charge.
z Government subsidies are channeled to the landless and poor people through these accounts.
z Introduced different deposit schemes and credit facilities to include different classes of people.
z Financing higher education and overseas employment.
z Going to launch project for daily and construction labours.
The poor and simple people of our country are engaged
mostly with different microfinance institutions or co-
operatives. As they are not entertained with banking facilities
around them, they are not satisfied in their transactions with
those institutions. SBL is trying to cover the major portion
of these people under the umbrella of formal banking
practices by taking different policies of inclusion. A wide
ranging plan has been undertaken to connect the overseas
employees with their relatives living in the country so that
people at villages can come in contact with the mainstream
of banking and thus the reserve of foreign currency increase
satisfactorily. Therefore, to make the growth of our economy
more inclusive and sustainable, SBL’s policies are targeting at
creating employment opportunities and thus accelerating
the income of the people to keep the machine on of our
economy.
182
YEAR OF EXCELLENCE
Customer service has great significance in banking industry. A customer can be defined as a potential user of bank services. So, a customer can be defined as:
1. A person or entity that maintains an account or has a business relationship with a bank or without having an account maintains a relationship with a bank.
2. One on whose behalf the account is maintained.
3. A person or entity connected with a financial transaction and
4. One who have different motives for coming into the bank i.e. to make a query or others.
In the course of daily business transactions, a banker comes in contact with quite a number of people who come to deposit money or to cash cheques or to avail loan facility or for any inquiry. Some of these people maintain subsisting relationship with the bank, while in some cases it is a one off affairs perhaps never to be repeated again.
Branch network and products
Sonali Bank Limited (SBL) has been engaged in wide range of services through its 1224 branches inside the country to cater the needs to all classes of people. Only SBL has branches in every upazilla of the country to take banking services to the doorsteps of common people. The Bank has introduced the highest number of products to meet the ever increasing demands of the people.
Implementation of Inclusive policy
SBL has the highest number of accounts under the financial inclusion policy taken by Bangladesh Bank and focuses on the majority of our population including the farmers, the freedom fighters and under-privileged people of the society. The Bank gives special attention to the farmers by giving opportunity to open a bank account at the cost of Tk. 10.00 without any service charge by which they can avail government assistance in a transparent way. Now, the number of this account stands 1,590,734. They also
get agricultural loans from all of our rural branches at a low interest rate. They deserve it because they have made our country food-sufficient and saved foreign currency through reducing the demand for food import. SBL has 243,011 accounts of the freedom fighters as a result of given emphasis on the freedom fighters. The freedom fighters are also getting special loan facility upto Tk. 300,000. The Bank also delivers the services of govt. allowances to different levels of the destitute people.
Service standard
Customer relationship management is the most efficient approach in maintaining and creating relationships with customers. Development of this type of bonding drives the business to new levels of success. Service standard maintains a level of consistency that allows both side standings and their expectations. It is worth mentioning that service standards alleviate uncertainty from the process and provide clients with a set of commitments that can be referred to while evaluating an organization’s performance. Organizations, exceeding these standards, obtain client satisfaction, public perception and overall service performance. The behavioral relationship is important from the view point of responsibility and humanity, particularly for the customers who do not maintain account with the bank but buy miscellaneous services like Demand Drafts, Mail Transfer of money or payment of electric bill, gas bill, opening and renewal of various licenses, passport fees etc. SBL delivers these services with good manners, courtesy, kindness, sympathy and co-operation. By helping to solve a customer’s problem, undoubtedly makes a good impression on the customer that adds competitive advantage to the Bank. As a result of better service standard, SBL’s non-funded income is increasing day by day.
Sonali eSheba and Sonali eWallet
During the COVID 19 pandemic in 2020, for the welfare of the country and the mass people Sonali Bank Limited introduced ’’Sonali eSheba’’ through which the clients can
CUSTOMERCARE
RELPORT ON CUSTOMER CARE
Annual Report 2020
open accounts even from their home. Continuously the bank introduced ’’Sonali eWallet’’. This wallet helps the clients to make transactions to any accounts, pay the bills and taxes etc.
Digitalized banking
Keeping pace with the present digitalized world, SBL has introduced Core banking system, Mobile banking, SMS banking, Online Any Branch Banking (ABB), RMS plus etc. to make the operations more efficient which is subsequently improving our service to the valued customers and clients. We are integrating our IT systems and simplifying automation 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 allowed us to simplify our application and documentation processes, making it easier and faster for new customers to open an account with us. Core Banking Solution (CBS) software has been implemented in 1,224 branches to integrate the activities, ease the banking functions, prevent 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 the products to our customers need through the channels they prefer, while improving efficiency and customer service. The Bank invested in products and services for our customers, while further reducing costs and improving efficiency through our simplification program.
Front desk customer service
SBL is always concerned the needs, demands and priorities of customers. To make their banking easy with us, there is a front desk customer service system to provide information and supports.
Customer Service
Our vision unambiguously spells out the centricity of the customer in the Bank’s business strategies and operations. A multi-tiered structure of committees is constantly reviewing existing services and suggesting improvements. Important issues raised by these Committees and action taken thereon, as well as analysis of the consolidated data for customer grievances for all circles are placed before the Customer Service Committee of the Board every quarter, to identify common systemic and policy issues that require rectification. The Bank has a well defined and documented Grievance Redressal Policy which provides for:
z A complaint box has been set in every branch of our bank so that any aggrieved customer can complain in a written document which would be addressed by the managers and high-ups.
z According to Bangladesh Bank guidelines, there is hotline for customer’s complaint address which is displayed on the visible place in every branch. The display contains the following information:
z Bank’s Head Office based Complaint cell
has been redesigned. Written complaint can be dropped at branch complaint box, by calling at the number of the Bank’s complaint centre which is 9586431, fax no-7115519 and through Bank’s email address which is: [email protected]. All complaints are lodged and actions are duly taken. Bank has mandated and has been able to redress a majority of the customer grievances within the shortest possible time. All ATM related complaints of Bank customers are redressed within the Bangladesh Bank prescribed time.
Customer Friendly Initiatives
During 2019-2020, due to COVID 19, slow investment/consumption, constrained food production, high inflation, distress in several industry and infrastructure sectors such as textile, chemicals, iron and steel, food processing, construction, telecom etc. affected the growth of our economy. Major initiatives were taken by the Bank towards catalyzing investment and growth, to facilitate the flow of credit to critical sectors of the economy including agriculture, infrastructure, micro, small and medium enterprises, housing and exports to reduce customer distress/pain points and to raise the level of customer satisfaction. These initiatives include:
Process innovations
z Relationship management platform was strengthened across business verticals-Accounts Management teams for corporate, premier banking services for high net worth customers, relationship managers for SMEs.
z Touch-points with customers were expanded through opening of branches and increasing Customer Service Points, BC outlets in remote areas.
z Cluster models were introduced at all currency chest branches for efficient cash management at semi-urban/rural areas.
Technology upgrades
SBL has taken initiatives to bring all its branches under core-banking system. With this end in view, Sonali-Polaris, a Indian sophisticated and upgraded core banking software (CBS) has been adopted and all branches are now in the process of conversion to it in the course of time. SBL has brought 1222 (100%) branches under CBS program.
Bangladesh BankHotline for customer’s complaint: Head Office:Dial 16236Fax : 0088-02-9530273E-mail : [email protected]
184
YEAR OF EXCELLENCE
z ATM : At present, the Bank has 125 ATM booths. Sonali Bank’s ATM cardholders enjoy the access to the ATMs and POS all over Bangladesh. SBL has recently launched VISA Credit Card, Debit Card and prepaid card for tax payment. The Bank introduced co-branded ATM services with Bangladesh Post Office.
z Online and SMS Banking: At present, 1224 branches of SBL are included in the Online Any Branch Banking (ABB) network. SMS Banking service is running in 1224 branches. The Bank is seriously working on connecting all branches in the Real-time Online Banking network gradually.
z BACH: BACH minimizes fraud and forgery, reduces cheque carrying and clearing cost as well as payment processing time dramatically. It also ensures faster and secured payment and settles payment of all cheques of whole country under a single head of the Bangladesh Bank. With a view to making clearing activities, Bangladesh Automated Clearing House (BACH) has been setup at Local office of the Bank. Clearing activities in automated system are executed through BACPS (Bangladesh Automated Cheque Processing System) from this centre. Fund transfer activities from all branches of the Bank with other banks are being operated through Bangladesh Electronic Fund Transfer Network (BEFTN).
Online CIB services
To create a disciplined environment for borrowing, the automated CIB service provides credit related information for prospective and existing borrowers. With this improved and efficient system, risk management will be more effective. SBL furnishes credit information to CIB database 24/7 round the year; and they can access credit reports from CIB online.
Help desk and Women entrepreneur desk
To extend support to the customers and especially to the entrepreneurs, there is a help desk and a women
entrepreneur desk in every branch. The functions of these
desks are to assist the customers by providing necessary
information.
Foreign Remittance
SBL’s own in-house software “Remittance Management
System Plus” (RMS+), having the feature of paying foreign
remittance instantly over the counter, is being implemented
at all branches. This web based software provides digital
services to the expatriates through its unique advantage
of sending confirmation message to the mobile phone of
the remitter/beneficiary. The Bank has also arranged to pay
foreign remittance through Western Union, Transfast, IME
Malaysia, Express Money.
Islamic Banking
SBL is giving priority on Islamic Banking because of its recent
popularity in the banking sector. Islamic Banking Division of
the Bank, is running its business succesfully in 58(fifty eight)
branches of the Bank.
Citizen Charter
To ensure proper customer service, citizen charter has been
hanged on the wall at the visible place of customers at Head
Office and branches as per the directive of the regulator.
By reading it customers can be well aware of the services
and products that the Bank is supposed to render to its
stakeholders.
RELPORT ON CUSTOMER CARE
Annual Report 2020
CITIZEN CHARTER
Deposit Account
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), 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
RemittanceA web-based software named Remittance Mangement System Plus (RMSplus), developed in house, has been deployed at 1224 branches for receiving foreign remittances. Inland and Foreign Remittance payments are made through this system.
Receipt of Utility BillElectric Bills of PDB, Palli Biddyut Samity, DPDC, DESCO, Western Zone Power Distribution Company, Gas Bill, WASA Bill, Telephone Bill of BTTB are received.
Loans and Advances
Business Loan, Agricultural Loan, Rural Credit, Industrial Project Loan, SME Loan, Agro-based Industrial Project Loan, Small and Cottage Industries Loan, Working Capital Loan, House Building Loan, Consumers Credit, Special Small Loan, Probashi Karmasangsthan Rin, Education Loan, Term Loan to Freedom Fighters, Foreign Education Loan and Export-Import Trade Loans etc. are offered.
Interest Rates on Loans and Advances
To contribute to the socio-economic development of the country relatively lower interest is charged on General Advances, Agricultural Loan, Rural Credit, Micro Credit, Agro-based Industrial Loan, Other Industrial Project Loans and Export-Import Trade Loans.
Social Responsibilities
Without taking any service-charge, SBL makes payments of allowances to old aged citizens, widows and divorced distressed women allowances, stipends for primary education, stipends for disabled students, allowances for 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.
Government Transactions
Fees, taxes, VATs etc. which are payable to Govt. accounts are done through treasury challan in 732 nominated branches of the Bank. Besides, payments are made against Govt. cheques and bills in 480 branches among the said branches of the Bank.
Plans for Computerization
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 established to implement Online Real Time Core Banking (ORTB) in the Bank. Any Branch 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
Other Services
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 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.
186
YEAR OF EXCELLENCE
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:
CategoryYear wise contribution
Total2020 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
REPORT ON CORPORATESOCIAL RESPONSIBILITY (CSR)
REPORT ON CORPORATE SOCIAL RESPONSIBILITY(CSR)
Annual Report 2020
GOVERNMENT TRANSACTIONS AND WORKS RELATED TO SOCIAL RESPONSIBILITYSonali 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.
SerialNo.
Name of GM O�ce
No. of Branches(Including Corp.)
01 Dhaka-1 108
108
108
108
108
108
108
108
108
108
108
Dhaka-2
Mymensing
Sylhet
Comilla
Chittagong
Barisal
Khulna
Dhaka-1
Dhaka-1
Dhaka-1
02
03
05
04
06
07
08
09
10
11
TOTAL 1226
Sonali Bank Limited GM O�ce WiseBranch Network with Bangladesh Map
Indicates District Total Number of Branches
Indicates GM Headed Branch (3 in Dhaka City)
1. Local O�ce2. Bangabandhu Avenue Corp.3. Ramna Corp.
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YEAR OF EXCELLENCE
CONTRIBUTIONTO NATIONAL ECONOMYFinancial Support in Industrial, SMEs, Agro and other sectorsWith 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 ExchequerSonali 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 InclusionWith 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 EconomyComplying 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.
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Global Economic Situation
The coronavirus (COVID-19), which has emerged as a global pandemic, poses a major risk to the global economy. Protecting lives and allowing health care systems to cope with required quarantine, isolation, lockdown etc. have severely limited economic activity resulting the global economy is anticipated to contract in a much worse way than during the 2008-2009 financial crises. In the World Economic Outlook (WEO) April 2021, International Monetary Fund (IMF) projected that the global economic growth would contract sharply by 4.4 percent in 2020 and grow by 6.0 percent in 2021 as the economic activity normalises, helped by policy support.
At present, the risk factors of world economy are: worldwide pendamic due to COVID 19, crisis in global business, rise in food and commodity prices and sluggish economy in Euro area for a long time. In advanced economies, the consequent stagnation of economic activity has led to a slowdown in economic growth. Among emerging markets and developing economies, all countries face a health crisis, severe external demand shock, tightening in global financial conditions, and a plunge in commodity prices, which will have a severe impact on economic activity in commodity exporters. In addition, oil exporting countries will face problems as the falling of oil prices.
Turning the global economy around in 2021 depends on how quickly the pandemic can be brought under control and build consumer and investor confidence. To this end, countries are implementing various financial and stimulus programmes to revive the world economy by improving the health system and by providing public health services. But it may fade over time as the vaccine coverage will expand everywhere by the end of 2022.
Bangladesh Economic Scenario
During the last decade, Bangladesh has witnessed GDP growth rate from 6 per cent to 8 percent consistently. The global novel Corona Virus (Covid-19) pandemic has slowed
down the robust economic growth of Bangladesh in the just concluded fiscal year. But it is a matter of optimism that foreign exchange reserve of Bangladesh has increased remarkably during this world economic recession. All the central banks in the world maintains foreign exchange reserves as asset reserve to tackle financial disaster management, import payments, safeguard against local currency devaluation, strengthen monetary policy, budget implementation maintaining confidence in the market, to supply funds in large development projects, to ensure foreign debts payment. In respect of foreign exchange reserve, at present Bangladesh stands 44th in the world and 2nd in South Asia.
By placing highest priority to the lives and livelihood, health security, employment, commerce and trade, investment and agriculture, an amount of Tk. 6,03,681.00 Crore budget has been passed for the fiscal year 2021-2022. According to the data of Bangladesh Bureau of Statistics (BBS) though the GDP growth rate reduced to 5.24 percent in FY 2019-2020 than the previous year, the GDP growth rate has increased to 6.10 percent in FY 2020-2021. The GDP growth rate is projected to be 7.2 percent in FY 2021-2022.
According to the provisional data of BBS, among three broad sectors of the country, the growth of agriculture sector was 3.11 percent in FY2019-2020 which was 3.92 percent in the previous fiscal year. During the same time, the growth of industry and service sectors stood 6.48 percent and 5.32 percent respectively which were 12.67 percent and 6.78 percent respectively in the previous fiscal year. In FY2019-2020, the contributions of agriculture, industry and service sectors were 13.35 percent, 35.36 percent and 51.30 percent respectively which were 13.65 percent, 35.00 percent and 51.35 percent respectively in the previous fiscal year. Per-capita GDP and income stood USD 1970 and USD 2227 respectively in FY 2020-2021 which were USD 1828 and USD 2064 respectively the previous year
To achieve higher growth, inflation control is considered as one of the major challenges. The inflation rate stood 5.4 percent in FY2020-2021. Due to coronavirus (Covid-19)
MANAGEMENT DISCUSSIONAND ANALYSIS
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Annual Report 2020
pandemic induced effects, the global economic activities have slowd down. As a result, inflation has decreased world-wide. Due to this global pandemic, disruptions in food production and supply caused may increase of inflation in the upcoming days. In this perspective, as the overall inflation in Bangladesh dominated by food inflation, economists suggest that special attention is required to offset the food inflation.
To tackle the economic recession, to ensure sufficient liquidity in financial sector, Bangladesh Bank cut repo rate from 6 percent to 5.25 percent. The central of the country also cut cash reserve requirement (CRR) from 5.5 percent to 4.5 percent on daily basis and 5 percent on bi-weekly basis in the first phase and again slashed down the rate to 4 percent where banks have to maintain 3.5 percent on daily basis and 4 percent on bi-weekly basis in second phase. Besides, Bangladesh Bank has increased the advance deposit ratio (ADR) and Investment Deposit ratio (IDR) by 2 percent to 87 percent and 92 percent respectively so that banks can improve the liquidity position and simultaneously facilitate private sector credit facility.
Due to the effects of world-wide outbreak of coronavirus pandemic, trade dispute between China and USA, slump in oil price, the pace of the world trade got slow down from the very beginning of 2020. As a consequence, the foreign trade of Bangladesh has also slowed down marginally. But with the onset of 2021, the pace of world trade has bounced back.
The export of processed agricultural products grew by 19.27 percent in FY2020-2021 which was negative 5.16 percent due to the outbreak of coronavirus pandemic in FY 2019-2020. Income from the export of agricultural products stood Tk.102.81 crore which was Tk.40.27 crore only 10 years back. It can be projected that the demand of the processed foods would rise in the upcoming days.
The export of bicycle increased by 58 percent in FY 2020-2021 which was 1.66 percent in FY2019-2020. Apart from this, home textile goods under the sector of textile increased by 49.17 percent in FY 2020-2021 which was 10.90 percent in FY2019-2020. The export of readymade garments products stood USD 2856 crore during July 2020 to May 2021 which was USD 2570 crore in FY2019-2020.
Besides, the demand for synthetic yarns was increasing around the globe much earlier. Being environment friendly, the demand of synthetic yarn instead of cotton is rising day by day. With the emergence of corona virus that demand has boosted further. With this perspective of the global demand, the investment has been increased in this sector. With the increasing demand of the brands and client enterprises, the readymade garments production of artificial yarns has increased in Bangladesh.
Due to Covid-19 pandemic, the export of leather and leather goods stumbled in FY2019-2020 but it bounced back in the next year. During the past FY 2020-2021 reigned by Covid-19, Shoe export stood USD 91.42 crore. According to the 10-year data of Export Promotion Bureau (EPB), the export proceeds were USD 33.55 crore.
Total export earnings in FY2020-2021 stood USD 38.75 Bn which was 15.10 percent more than the earnings of USD
33.67 Bn in the previous fiscal year. While the total imports stood USD 58.63 Bn during July 2020 to May 2021 which was USD 49.98 Billion in FY 2019-2020.
Bangladesh has achieved an outstanding development in poverty alleviation during the last decade because of successive all-out endeavours of the government and the execution of multifarious development activities of government and non-government organizations. In order to attain the desired targets of poverty alleviation, the government provides special priority in social safety net programs. For this purpose, Bangladesh has already formulated ‘National Social Security Strategy (NSSS). A total of Tk. 1,07614 crore has been allocated against social safety net in FY2021-2022 which was Tk.95,574 crore in FY 2020-2021.The allocated amount is 3.11 percent of total GDP of FY2021-2022. The poverty and malnutrition rates are projected to decline to 9.7 percent and 10 percent respectively by 2030. Besides, the government is working on achieving sustainable development targets in health sector and sufficient allocations have been kept to human development related sectors like education and technology, health and family planning, women and children, culture, labour and employment.
To keep the country’s economy afloat in the face of the ongoing pandemic, the government has announced stimulus packages where special fund for export oriented industries, working capital facility for affected industries and service sectors, working capital facility for small (including cottage industry) and medium enterprises, enhancement of export development fund, enlargement of social safety net and funds for agricultural sector are mentionable. With the end in view to overcome probable global and domestic crises arisen due the coronavirus (Covid-19) pandemic, the economy is expected to turn around through the actions taken by the government.
Banking Sector Situation in Bangladesh
Banking sector in Bangladesh has been playing an important role in promoting economic development of the country and extending financial services to the general people. It consists of 59 banks contributing to about 3.0 percent to GDP with 10,286 bank branches in June 2020 has been showing resilience in the face of vulnerability and instability in the world financial system. Out of these branches, about 52 percent are located in the urban areas and the rest in rural areas in June 2020. But about ten years ago i.e, in June 2010 the situation was just the opposite of this. For example, the share of urban branches was 43 percent in that year. The share of urban bank branches increased because of creation of new pouroshabhas in the country. The share of urban deposits and advances which stood at 79 percent and 90 percent in June 2020 was 87 percent and 92 percent in June 2010 respectively.
Recently, Bangladesh Bank has adopted some prudential policies and regulatory measures to help the banking sector in its quest to attain sustainability. The central bank has also renewed its emphasis on risk management operations in banks, periodic review of stability of the individual bank within the gamut of the whole banking system, doing exercise on stress testing, monitoring fraud/forgeries in banks and strengthening internal control and compliance
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for ensuring corporate governance in the banking system. In addition, emphasis was also laid down on the re-fixation of educational qualification of CEOs, policy for off-shore banking operation of banks, policy for investment in long term infrastructure projects and policy to give incentive to the good borrowers etc.
Performance Review of Sonali Bank Limited
Significant Achievements at a glance
The Bank always strives to achieve meaningful financial performance. Strong capital base, wide branch network, innovative products, quality services, customer satisfaction and their reliability, support from stakeholders etc. are helping the Bank to make significant performance. The major achievements of SBL in 2020 are:
z SBL achieved operating profit of Tk. 21,526.93 million in 2020 which was Tk. 17,100.43 million 2019. Net profit after taxation stood at Tk. 3,234.35 million in 2020 which was highest among the state owned commercial banks of the country as against Tk. 2,710.05 million in 2019.
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 million as on 31 December 2019. This is to be delightfully mentioned that this is the highest amount of assets that a commercial Bank has reached ever.
z The bank is maintaining the uptrend of its deposit successfully. In the reporting year, deposit of the bank stood at Tk. 1,258,786.26 million against Tk. 1,158,787.78 million in 2019 with an increase of 5.76%.
z All of its 1,224 local branches are rendering digitalized banking services through CBS to the clients of the Bank. These branches have been operating SMS banking service. Registered customers can get their account transaction and balance through SMS.
z During 2020, the Bank deposited Tk. 12,227.10 million as Tax, VAT, Excise Duties, and Source Taxes etc. to the national exchequer which was Tk. 7,956.60 million in 2019.
z Extended Corporate Governance and CSR activities.
z Providing real time online banking through Core Banking Software with a world class technology platform.
Analysis of Operating and Net Profit
The total operating profit of SBL stood at Tk. 21,526.93 million in 2020 against Tk. 17,100.43 million in 2019. Whereas operating expense was Tk. 21,346.34 million in 2020 which was Tk. 19,626.98 million in 2019. On the other hand, net profit registered at Tk. 3,234.35 million in 2020 against Tk. 2,710.05 million in 2019.
Deposit
The total deposit of the Bank as on 31 December, 2020 was Tk. 1,258,786.26 million showing an increase of Tk. 99,998.48 million or 8.63 percent over 1,158,787.78 million of the preceding year. Total deposit comprising current deposit and other accounts stood at Tk. 242,286 million which was Tk. 245,109 million in 2018. As on previous year, fixed deposits constituted of the main component of the deposit item that was 383,383 million or 33.08 percent of total deposit in 2019. After fixed deposits, savings deposits stood at Tk. 387,366 million in 2019 which was Tk. 349,044 million in 2018 meaning 10.98 percent growth and accounted for 33.42 percent of the total deposit. Bills payable of the Bank stood at Tk. 10,910 million in 2019 which was Tk. 13,059 million 2018. SBL employs its best efforts to increase the proportion of low/no cost deposit and to achieve an ideal deposit mix.
Investment
There was a significant change in the investment of SBL. The total investment of the Bank stood at Tk. 629,691.45 million at the end of 2020 which was Tk. 500,386.89 million in 2019. Major investments were made in the form of Treasury Bills, Treasury Bonds, Special Bonds, Reverse Repo, Call Loan, Term Deposit, Shares and Debentures etc.
Investment Income
Total investment income of the Bank as on 31 December, 2020 was Tk. 40,289.94 million against Tk. 28,144.09 million of the previous year.
Classified Loan and Recovery
The amount of classified loan stood at Tk. 107,673.90 million which was 18.37 percent of the Bank’s total loan as on 31 December, 2020. The amount was Tk. 111,993.90 million (20.32 percent of Bank’s total loan) as on 31 December, 2019. The amount of recovery against classified and written off loan in 2020 was Tk. 10,501.50 million and Tk. 550.10 million respectively.
Capital Adequacy
As or 31 December 2020, Bank’s Capital to Risk-weighted Asset Ratio (CRAR) has stood at 10.02% which is 0.02% higher than regulatory requirement of 10.00%. The maintenance of the regulator’s minimum capital requirement came through the prudent management of overall assets of the Bank. As part of capital management, the Bank emphasized on increasing rated exposures. Total assets of the Bank increased by 8.06% in 2020. This is to be mentioned that total assets of the Bank crossed Tk. 1.00 trillion in 2015 which set a record in the history of a commercial bank in Bangladesh. In 2016, total deposits of the Bank also crossed the landmark of Tk. 1.00 trillion and in the reporting year, the Bank has maintained the uptrend of the deposit flow.
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
MANAGMENT DISCUSSION AND ANALYSIS
Annual Report 2020
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.
Principal Activities
Core Banking Solution (CBS)
The Bank has successfully installed Core Banking Solution (CBS) in all of its 1,224 local branches by using new technologies and innovative services to make banking easier and simpler. At present, the Bank takes the pride of being the largest online bank in Bangladesh. It has also taken initiatives to make the Bank totally IT driven and to achieve full automation. A web based in house developed software named ‘Remittance Management System Plus” (RMS plus) has been deployed at 1,224 branches for receiving foreign remittance and receipt and payment of inland/local remittance through RMS plus. We are also providing SMS Banking, VISA Credit & Debit card facilities, ATMs, Phone Banking, Q-Cash, Bangladesh Automated Clearing House (BACH), Bangladesh Electronic Fund Transfer Network (BEFTN) to our customers smoothly.
SME Financing
The Bank is emphasizing the activities relating to the promotion of sustainable economic development and taking keen interest for providing overall service with the coordination of modern technologies and expert professionals in the SME sector considering the same as center of economic development. As a leading commercial bank in the country, SBL is contributing the economic progress by creating employment opportunities for mass unemployed people through financing small and medium industry, trade and service sector. In this case, the Bank is firmly committed to create quality SME customers, patronize and develop them through equal management besides providing utmost importance to acquire quality assets. Moreover, the Bank is accelerating the sustainable development of rural economy of the country by investing the micro and cottage industry and giving special attention to the neglected and un-banked female entrepreneurs as well as trying to connect them to the mainstream of economic development by offering diversified loan products. Considering economic development of the country, the Bank is ignoring net spread and investment operational cost. SBL regularly participate SME promotional activities such as SME Fair, Road Show, Open SME Loan Disbursement and Exchange of views with the entrepreneurs organized by Bangladesh Bank, SME Foundation, Business Associations and Chambers. The Bank also arranges Bankers Entrepreneurs meeting at field based controlling offices and premises.
Islamic Banking
Because of Muslim dominant people of Bangladesh, Islamic banking, based on Shariah, is getting popularity in the country. SBL has also started banking business based on Islamic Shariah since June 29, 2010 to provide their ever increasing demands. In order to efficiently operate Islamic banking, a Shariah Supervisory Committee has been constituted with country’s famous Islamic thinkers, economists and bankers. A new department namely “Islamic Banking Division’’ has been created to enhance the activities.
Ecology and Green Banking
Ecology and green banking has become a social awareness in the present world. SBL insists on going green to help the environment through its Online Banking, Mobile Banking and the idea of socially responsible investment funds for sustainable project finance activities. Online banking which reduces the use of paper and carbon footprint, saving daylight through proper entrance of sunlight and air which reduce the use of electricity. Investment in eco friendly business projects are important and easy aspect of green banking. A truly green bank will reduce its carbon footprint by building more efficient premises and branches; implementing more efficient operational procedures to promote sustainable banking and increasing their investments in environment sensitive industries.
SBL’s Green Banking practices are connected with both internal operation and product ecology. Product ecology is concerned with the impacts of the banks on the environment used by the clients. Green Banking is engaged in creating socially responsible investment funds and sustainable project finance activities. SBL is concerned with the welfare of its employees and customer’s satisfaction, benefits, wages and the Bank’s environmental standing. The Bank is putting a combined effort on switching to more environment friendly practices i.e Online Banking, reducing wastage of paper and electricity, using solar power and energy saving bulb, saving day light during office hours and being more conscious about employee travel policies.
Benefits of Online Banking include less paperwork, less mail etc. which all have a positive impact on the environment. The environment and the banking Industry both are benefited when the customers of a bank start using Online Banking, SMS Banking and Mobile Banking services. SBL aims at introducing changes in operational areas in future to adopt
more environment friendly procedures. The progress of our
current banking system towards a fully electronic and Online
Banking will further reduce the operational cost and will be
beneficial for our customers.
Ethical Banking
Banks and the policies they pursue have an impact on the
community around them. Their impact has two dimensions:
the way they operate i.e. internal operations and the types
of companies they finance. SBL takes care of both the
dimensions in its operation. Many ethical issues such as
the environmental conduct of customers are now part
of standard risk assessment and prudent banking. It is
becoming increasingly common practice for banks to have
guidelines for their staff on the major ethical issues they
cover. 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.
Treasury Operation
Treasury operation is one of the core functions of SBL.
Treasury Management Division (TMD) is responsible for fund
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management, i.e, maintaining adequate cash balances to
meet day to day requirements and deploying surplus funds
from operations. It is also responsible for maintenance of
reserve requirements (Cash Reserve Ratio and Statutory
Liquidity Ratio). It has now evolved as a profit center with its
own trading and investment activities and has a pioneer role
of leadership in building stable Inter Bank Money Market and
Foreign Exchange Market in Bangladesh.
Capital Market Operation
SBL has a significant presence in the capital market of
Bangladesh through its subsidiary Sonali Investment Limited
(SIL). Obtaining license from BSEC, SIL commenced its
operation on 14 September, 2009 as Merchant Banking
Unit under Treasury Management Division (TMD) of Sonali
Bank Limited. Subsequently, the merchant banking unit had
been registered with Registrar of Joint Stock Companies
and Firms (RJSC) as a full fledged subsidiary of SBL on April
22, 2010 as SIL. The authorized and paid up capital of the
company stands at Tk. 6,000.00 million and Tk. 2,000.00
million respectively. Being fully compliant with the laws of
the land, SIL ensures high quality services to our valuable
clients through its professionalism. It attaches priority to
investors’ interest, their benefit and always intends to protect
investors against market related risks. This is why SIL has
become a trusted partner of investors. The current activities
of the company include Issue Management, Portfolio
Management, Underwriting, Equity Participation and
ancillary services related to the capital market. At present,
Sonali Investment Limited runs its day to day operation by its
Head office and four branches located at Paltan, Uttara and
Mirpur. The company has a plan to open new branches at
other divisional towns in future.
Foreign Correspondent Bank
SBL has established correspondent relationship with 684
branches of 463 banks located in 92 countries to facilitate
business with foreign countries. This correspondent
relationship has significantly increased bank’s foreign
exchange and trade business simultaneously. As a result, the
clients of SBL have been receiving prompt and satisfactory
services all over the world.
Corporate Social Responsibility
As a leading state owned commercial bank in the country,
SBL extend its hands of cooperation to the destitute people
who are largely affected by natural disaster and calamities.
The Bank also provides scholarship to the poor but
meritorious students for their higher studies every year. The
Bank has donated funds for rehabilitation of the employees
affected in Rana Plaza Tragedy and earthquake affected
people in Nepal in the recent past. Besides, SBL takes part in
many socio economic activities, cultural and sports events
as the part of CSR. Further, the Bank has a plan to establish
a hospital and an international standard school and college
under CSR. SBL has always been paying respect to social
and public welfare rather than orbiting around maximization
of profit. SBL energizes from implementation of every single
opportunity of serving the nation regardless of the magnitude
of the frame.
Human Resource Development
Skilled manpower is the pre-requisite of success in any
organization. Every human being has unique latent qualities
in him/her though the qualities remain unexplored most
of the time. If the latent qualities of a newly appointed
employee are exposed and can be trained up in a proper
way, one can be turned into an asset for the organization.
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. Besides, the Bank
recruited Probationary Officers and Senior Officers to meet
the changing business needs and ever increasing demand of
prompt customer service of the clients.
Asset Liability Management
Asset Liability Management (ALM) is the most important
function of Bank Management derived from an independent
unit within Treasury Management Division of SBL. The
function of ALM is the architecture of Bank’s Balance Sheet
by assessment of current scenario and projection of future
possibilities. As a part of core risks management in Banking,
Bangladesh Bank has introduced basic guidelines for
managing assets and liabilities of banks in Bangladesh. In line
of Bangladesh Bank guidelines of Asset liability management
(ALM) and related circulars, SBL facilitates smooth functioning
of asset liability management and controlling the Balance
Sheet risks.
Risk Management
Like any other business, there are various risks inherent in
banking business as well. But the risks in banking business are
complex and multi-dimensional. These necessitate structural
development and the implementation of risk management
strategies in the banking sector. Bangladesh Bank has
identified 6 (six) core risk areas relating to banking operations
and issued necessary guidelines for those areas. These are:
(a) Credit Risk (b) Asset and Liability/Balance Sheet Risk (c)
Foreign Exchange Risk (a) Money Laundering Risk (e) Internal
Control and Compliance Risk (f) Information Technology
Risk and 01 (one) supplementary Risk - Environmental
and Climate Change Risk. The Risk Management Division
MANAGMENT DISCUSSION AND ANALYSIS
Annual Report 2020
identifies, analyses, evaluates and supervises all risk related
works including control/mitigation measure of risk as per
guidelines and direction of the Bangladesh Bank with the
approval of the Board of Directors. A high powered ‘Risk
Management Committee’ comprising five members of the
Board of Directors has been working as per the directives
of Bangladesh Bank to strengthen overall risk management
activities.
Outlook for 2021
The overall growth performance of the Bangladesh economy
was stable during 2010 till 2019 at above 6.00 percent due
to macroeconomic stability, lower inflation rate, and higher
production in the industry and service sector. The current
account balance in the balance of payments is expected to
be benefited from lower oil prices in international market.
Within the scenario, the financial sector in Bangladesh still
expects to record a steady growth. To make 2021 another
successful year, SBL is ready to accept the challenges of 2021
with new visionary zeal to achieve the common objectives
of the Bank and hence the year 2021 will definitely be a
challenging for everyone at SBL. To achieve success in the
year, SBL has undertaken the following short term strategies
side by side with midterm and long term strategies:
z Initiative will be taken to invest in strategically important in innovative areas which will focus on delivering stronger value added offers to our clients.
z Steps to accelerate the number of VISA enabled credit card holders along with further expansion of ATM services.
z Integrated approaches through multi-dimensional and customized promotional programs to gear up entire foreign trade including wage earners’ remittance.
z Pragmatic steps to bring the SME under the main stream of investment which will facilitate creating employment opportunities for a large section of population.
z Formulation of an integrated CSR and Green financing policy.
z Steps to strengthen relationship with customers and pay more attention on client satisfaction, loyalty and retention.
z Special programs for business like ‘Seba-Mash’, ‘Grahok-Somabesh’, ‘Remittance Pokkho’ etc.
z To present innovative and new deposit and investment products to the customers.
Some factors may cause actual results to differ and some
may significantly deviate from the outlook for 2021. Some
of the factors that may affect the business environment are
given below:
z Changes in the general economic condition resulting from natural calamities and political disturbances.
z Changes in government policy issues.z Increase in corporate tax rate.z Increase in CRR and SLR of the banks.z Withdrawal of incentive given to some thrust
sectors which may make the projects slowly moving.
z Directives to reduce the lending rates to finance essential items.
z Increase in provisioning requirement may reduce the ROA and ROE.
z Reducing the margin ratio for investment accounts.
z Volatility in interest rate.z Volatility in capital market arising from
speculations.z Compliance issues raised by the international
forums which are likely to affect the export growth.
z Rise in international prices of essentials which may lead to volatility in Foreign Exchange Market.
z International embargo/unrest may adversely affect remittances and trade.
z Adverse media reporting.
Sonali Bank Limited 196
AWARDS &RECOGNITIONS
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
3 ICMAB Best Corporate Award 2018 Institute of Cost and Management Accountants, Bangladesh 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
7 ICMAB Best Corporate Award 2015 Institute of Cost and Management Accountants, Bangladesh 2016
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
13 Best Brand Award Bangladesh Brand Forum 2012
14 Award in Foreign Remittance Collection Centre for the Non-Residence Bangladeshis (NRBs) 2012
15 Best Brand Award Bangladesh Brand Forum 2011
16 Best Retial Banker in Bangladesh The Asian Banker 2010
17 Best Brand Award Bangladesh Brand Forum 2010
18 Best Brand Award Bangladesh Brand Forum 2009
19 ICMAB Best Corporate Award Institute of Cost and Management Accountants, Bangladesh 2008
ICMAB Best Corporate Award 2018
AWARDS & RECOGNITIONS
Annual Report 2020
ICMAB Best Corporate Award 2019
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PRODUCTS ANDSERVICES OF SBL
DepositsTime Deposits1 Fixed Deposits2 Special Notice Deposits (SND)3 Deposit Pension Scheme4 Sonali Bank Special Deposit and
Pension Scheme5 Savings Deposits6 Non-Resident Foreign Currency
Deposit (NFCD) and Resident Foreign Currency Deposit(RFCD) Account
7 ATM A/C8 Sonali Deposit Scheme9 Education Deposit Scheme10 Medical Deposit Scheme11 Rural Deposit Scheme12 Monthly Earning Scheme13 Marriage Savings Scheme14 Double Benefit Scheme15 Sonali Bank Daily Profit A/C16 Non-Resident Deposit Scheme17 School Banking Scheme18 Retirement Savings Scheme19 Sonali Bank Retirement Savings
Scheme
21 Sonali Bank Millionaire Scheme 20 Triple Benefit Scheme
22 Sonali Krishok Savings Scheme (SKSS)
Industrial Credit1 Loan under Sonali Bank
Industrial Credit Scheme2 Laon under External
Credit Programme3 Working Capital to
Industries-Hypothecation4 Working Capital to Industries-Pledge5 SME Finance A/C
(Term Loan to Services)6 SME Finance A/C
(Term Loan to Industries)7 SME Finance A/C (Working Capital
to Industries and Trading)
Loans and Advances General Advances1 Cash Credit: General-Hypothecation2 Cash Credit: General Pledge3 Demand Loan4 Overdraft5 Small Loan6 House Building Loan (General)
9 Special Small Loan Programme10 Small Business Loan Scheme11 Lease Finance12 Probashi Karma-sangsthan Rin
Prokalpa13 Term Loan to Freedom Fighters14 Personal Loan15 Education Loan16 Foreign Education Loan Programme
Rural Credit1 Loan Under Sonali Bank Agro-based
Industrial Cr. Scheme2 Working Capital to Agro-based
Industries-Hypo.3 Working Capital to Agro-based
Industries-Pledge4 Agricultural Credit5 Micro Credit
PRODUCTS AND SERVICES OF SBL
Annual Report 2020
Sundry Deposits1 Margin on Letters of Credit2 Margin on Letters of Guarantee3 Hajj Deposits4 Employees Contributory Provident
Fund5 Employees General Provident Fund6 Sonali Bank Employees Pension
FundSonali Bank Employees Pension andDeath Cum Retirement Benefit Fund
7
8 Drafts Payable9 Govt. Drafts Payable10 Payment Orders Issued11 Foreign Drafts/Travellers Cheque
Issued12 Foreign Correspondents Charges13 Foreign Drafts Payable
Financial ServicesSl. Inland Remittance1 Demand Draft (DD)2 Telephonic Transfer (TT)3 Mail Transfer (MT)
Sl. Foreign Remittance1 Western Union2 IME3 Trans-fast4 Spot Cash5 Xoom Paypal6 SAMBA7 Hello Paisa South Africa8 RIA Financial Services
Demand Deposits1 Current Deposits2 Call Deposits3 Foreign Currency Deposits4 Convertible Tk. A/C5 Foreign Bank's Deposits6 Exporter's Foreign Currency
Retention Quota
International Trade Finance1 Loan Against Imported
Merchandise (LIM)2 Loan Against Trust Receipt3 Forced Loan against Back to Back
Letter of Credit4 Packing Credit5 Loan Against L/C Under WES6 Foreign Bills Purchased/
Negotiated-Clean7 Foreign Bills Purchased/
Negotiated-Documentary8 Payment Against Document (PAD)9 Inland Bills Purchased
4 E-Wallet
5 RTGS
6 Sonali Payment Gateway
200
YEAR OF EXCELLENCE
Islamic Banking Deposits1 Al-Wadeeah Current
Account (AWCA)2 Mudaraba Savings Account (MSA)3 Mudaraba Special
Notice Deposit (MSND)4 Mudaraba Term
Deposit Account (MTDA)5 Mudaraba Hajj
Deposit Scheme (MHDS)6 Mudaraba Monthly
Pro t Scheme (MMPS)7 Sonali Monthly
Deposit Scheme (SMDS)
Loans and AdvancesIslamic Banking Investment 1 Bai-Murabaha2 Bai-Muajjal3 Bai-Salam4 Hire Purchase
Under Shirkatul Meelk5 Bai-Istisna'a
Other ServicesA. Utility Bills1 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. Payment1 Salary and allowances for the
teachers of 5.00 ( ve) lac private Educational institution.
2 Old age allowances. 3 Allowances to 60,000 bene ciaries
of Sta Benevolent Board.4 Freedom Fighters remuneration
and allowances. 5 Widows, Divorcees and destitute
Women allowances.6 Allowances to the poor mother.7 Allowances of the disabled people.8 Allowances
to the Acid Burnt Women.9 Stipend /scholarship
to the disabled students.
C. Collection1 e-challan2 Land Development tax.3 Excise duty4 VAT5 Source Tax 6 Travels Tax7 Hajj Deposit8 Jakat Fund9 City Corporation Tax10 Information delivery in accordance
with section 111 (F), Income Tax Ordinance, 1984.
11 Activities relatedto Local Government.
12 ASYCUDA/Online Customs Duty Collection
MEIDA HIGHLIGHTS OF SBL
Annual Report 2020
MEDIA HIGHLIGHTSOF SBL
Sonali Bank Limited 202
PHOTOGALLERY
Floral wreath placed by Honorable Chairman and CEO & Managing Director at the portrait of the Father of the Nation Bangabandhu Shaikh Mujibur Rahaman.
Inauguration ceremony of Online Travel Tax Collection.
Agreement signing ceremony with BUET.Blood Donation Program held at Local Office, Sonali Bank Limited.
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.
Honorable Chairman and CEO & Managing Directors’ presence at Milad & Dua Mahfil during the National Mourning Day.
PHOTO GALLERY
Annual Report 2020
COVID-19 assistance to Bangladesh Police by the CEO & Managing Director of Sonali Bank Limited.
The CEO & Managing Director exchanging views with the AD branches of SBL.
MOU signing ceremony with BTCL.
MOU signing ceremony with BTV. Agreement signing ceremony with Govt. Madrashah-E-Alia, Dhaka.
Press conference with the journalists by the CEO & Managing Director of Sonali Bank Limited.
204
YEAR OF EXCELLENCE
Report on the Audit of the Consolidated and Separate Financial StatementsOpinionWe have audited the consolidated financial statements of Sonali Bank Limited and its subsidiaries (the “Group”) as well as the separate financial statements of Sonali Bank Limited (the “Bank”), which comprise the consolidated and separate balance sheets as at 31 December 2020 and the consolidated and separate profit and loss accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flows statement for the year then ended, and notes to the consolidated and separate financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank give a true and fair view of the consolidated financial position of the Group and the separate financial position of the Bank as at 31 December 2020, and of its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as explained in note 2.
Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and
Separate Financial Statements section of our report. We are independent of the Group and the Bank in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank, and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatements of the financial statements. These results of our audit procedures, including the procedures performed to address the matters below, provide 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, advances and leases portfolio associated with credit risk is judgmental, significant and complex. While estimating such provision certain judgmental factors need to be considered including:
z Future business performance of the borrower;
z Key assumptions relating to further business performance of the borrower;
z Market value of the collateral;z Ability to repossess collateral; and z Recovery rates.
We tested the design and operating effectiveness of key
controls focusing on the following:
z Credit appraisal, loan disbursement procedures, monitoring and provisioning process;
z Identification of loss events, including early warning and default warning indicators; and
z Reviewed quarterly Classification of Loans (CL).
Our substantive procedures in relation to the provision for
loans and advances portfolio comprised the following:
INDEPENDENT AUDITOR’S REPORTTO THE SHAREHOLDERS OF SONALI BANK LIMITED
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
2) Valuation of treasury bill and treasury bondSee notes #6 and 17.01 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
The classification and measurement of T-Bill and T-Bond require judgment and complex estimates.
In the absence of a quoted price in an active market, the fair value of T-Bills and T-Bonds is determined using complex valuation techniques which may take into consideration direct or indirect unobservable market data and complex pricing models which require an elevated level of judgment.
We assessed the processes and controls put in place by the Bank to identify and confirm the existence of treasury bills and bonds.
We obtained an understanding, evaluated the design and tested the operating effectiveness of the key controls over the treasury bills and bonds valuation processes, including controls over market data inputs into valuation models, 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 investmentsSee note #6.02 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
In the absence of a quoted price in an active market, the fair value of unquoted shares and bonds, especially any impairment is calculated using valuation techniques which may take into Consideration direct or indirect unobservable market data and hence requires an elevated level of judgment.
Due to high level of judgment and assumption involved in evaluating the impairment assessment of unquoted shares, we considered this to be a key audit matter.
We have assessed the processes and controls put in place by the Bank to ensure all major investment decisions are undertaken through a proper due diligence process. We tested a sample of investments valuation as at 31 December 2020 and compared our results to the recorded value.
Finally, we assessed the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines.
4) Measurement of deferred tax assetsSee note #9.08.01 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
The Group and Bank have recognized deferred tax assets for deductible temporary difference that it believes are recoverable.
The recoverability of recognized deferred tax assets is in part dependent on the bank’s ability to generate future taxable profits sufficient to utilize deductible temporary differences.
We obtained an understanding of the Group and Bank’s key controls over the recognition and measurement of deferred tax assets (DTA) and the assumptions used in estimating the Group’s future taxable income.
We also assessed the completeness and accuracy of the data used for the estimations of future taxable income.
Furthermore, these provisions are processed manually that deals with voluminous data extracted from the IT system of the Bank and following the instructions
of Bangladesh Bank issued time to time. Due to high
level of judgment involved and using some manual
process in estimating the provision for loans and
advances, we considered this to be a key audit matter.
At year end the Group and the Bank reported total
gross loans and advances of BDT 587,949 million
(2019: BDT 553,128 million) and provision as required
by Bangladesh Bank for loans and advances of BDT
70,166 million (2019: BDT 58,373 million)
z Reviewed the adequacy of the general and specific provisions in line with related Bangladesh Bank guidelines;
z Assessed the methodologies on which the provision amounts are based, recalculated the provisions and tested the completeness and accuracy of the underlying information;
z Evaluated the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines;
z Evaluated the balances of loans and advances and provisions of overseas branches whether 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.
206
YEAR OF EXCELLENCE
5) Revaluation of property, plant and equipment (Assets Revaluation Reserve)
See notes #17.02 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
The Bank in prior year has undertaken revaluation of its fixed assets. As a result of this revaluation exercise, an amount of BDT 21,495 million (in 2011 revalued by Taka 12,026 million and lastly in the year 2013 by Taka 9,469 million) is recognized as the fair value gain in revaluation reserve as at 31 December 2020. Determination of fair value in absence of any quoted price and active market require significant judgment.
We assessed the process of revaluation previously taken by the Bank.
We reviewed revaluation report of the independent valuer along with relevant documents and applied our judgment to see whether the fair value is still relevant.
We checked related accounting treatments of fair value gain and associated deferred tax as recognized by the Bank.
6) Legal and regulatory matters
The key audit matter How the matter was addressed in our audit
We focused on this area because the Bank and its subsidiary (the "Group") operate in a legal and regulatory environment that is exposed to significant litigation and similar risks arising from disputes and regulatory proceedings. Such matters are subject to many uncertainties and the outcome may be difficult to predict.
These uncertainties inherently affect the amount and timing of potential outflows with respect to the provisions which have been established as other contingent liabilities.
Overall, the legal provision represents the Group's and the Bank's best estimate for existing legal matters that have a probable and estimable impact on the Group's financial position.
We obtained an understanding of the Group and the Bank’s key controls over the legal compliance.
We enquired to those charged with governance to obtain their view on the status of all significant litigation and regulatory matters.
We enquired of the Bank's internal legal counsel for all significant litigation and regulatory matters and inspected internal notes and reports.
We assessed the methodologies on which the provision amounts are based, recalculated the provisions, and tested the completeness and accuracy of the underlying information.
We also assessed the Bank's provisions and contingent liabilities disclosure.
7) Carrying value of investments in subsidiaries and associate by the BankSee note # 9.01 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
The Bank has invested in equity shares of its subsidiaries namely Sonali Exchange Co. Inc. USA, Sonali Investment Limited and associate namely Sonali Bank (UK) Ltd. and Sonali Intellect Limited. As at 31 December 2020 the carrying value of these investment in Sonali Exchange Co. Inc. USA is BDT 80.56 million (2019: BDT 80.66 million), Sonali Investment Limited is BDT 2,000 million (2019: BDT 2,000 million) Sonali Bank (UK) Ltd. is BDT 3,348 million (2019: BDT 3,248 million) and Sonali Intellect Limited is BDT 26.25 million (2019: BDT 26.25 million).
The Bank is required to perform impairment test of investment in subsidiaries when impairment indication exists.
We have reviewed management’s analysis of impairment assessment and recoverable value calculation of subsidiaries in accordance with IAS 36, Impairment of Assets.
The group and the bank has recognized Sonali Bank (UK) Limited as associate as per IAS 28- Investment in Associates and Joint Ventures. But the bank still has pending regulatory final decision regarding recognition either as associate or as subsidiary. With the investment recognition criteria as per IAS 28, we reviewed the activities and investment considering as associate as per supporting provided by the management.
In particular, our discussion with the Management were focused on the continued appropriateness of the value in use model, the key assumption used in the model, the reasonably possible alternative assumptions, particularly where they had the most impact on the value in use calculation.
The key audit matter How the matter was addressed in our audit
We have determined this to be a key audit matter, due to the inherent uncertainty in forecasting the amount and timing of future taxable profits and the reversal of temporary differences where significant judgement is involved.
The Group and the bank have reported deferred tax assets BDT 27,508 million (2019: BDT 29,109 million) as at 31 December 2020.
We involved tax specialists to assess key assumptions, controls, recognition and measurement of DTA’s.
Finally, we assessed the appropriateness and presentation of disclosures against IAS 12 Income Taxes.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
8) Recognition of Interest Income from loans See note #21.00 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
Recognition of interest income from loans and advances has significant and wide influence on financial statements.
Recognition and measurement of interest income has investment of complex IT environment.
We identify recognition of interest income from loans and advances as a key audit matter because this is one of the key performance indicators of the bank and therefore there is an inherent risk of fraud and error in recognition of interest by management to meet specific targets or expectations.
We tested the design and operating effectiveness of key controls over Recognition and measurement of interest on loans and advances.
We have performed test of operating effectiveness on automated control in place to measure and recognize interest income.
We have also performed substantive procedure to check whether interest income is recognized completely and accurately.
We assessed the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines.
9) Loans and Advances See note #7.00 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in our audit
Loans and advances are the vital component of financial statements of the bank. Income of the bank is primarily reliant on the portfolio of loans and advances. Management performance is highly dependent on the target achievement of loans and advances. Loan disbursement requires robust documentation followed by approval from appropriate level of authority.
We identified loans and advances as a key audit matter because there is an inherent risk of fraud and error in disbursement of loans and advances by management to meet specific targets or expectations.
We tested the design and operating effectiveness of key controls focusing on credit appraisal, loan disbursement procedures and monitoring process of loans and advances.
We performed procedures to check whether the bank has ensured appropriate documentation as per Bangladesh bank regulations and Bank’s policy before disbursement of loans and advances. In addition, we have performed procedures to check whether the loans and advances is recorded completely and accurately and that are existed at the reporting date.
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 controlsThe key audit matter How the matter was addressed in our audit
Our audit procedures have been focused on IT systems and controls due to the pervasive nature and complexity of the IT environment, the large volume of transactions processed in numerous locations daily and the reliance on automated and IT dependent manual controls.
We tested the design and operating effectiveness of the bank’s IT access controls over the information systems that are critical to financial reporting.
We tested IT general controls (logical access, changes management and aspects of IT operational controls). This included testing that requests for access to systems were appropriately reviewed and authorized.
The key audit matter How the matter was addressed in our audit
The impairment testing is considered to be a key audit matter due to the complexity and judgements required in determining the assumptions to be used to estimate the recoverable amount which is higher of fair value less costs to sell and value in use.
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.
In particular, our discussion with the Management were focused on the continued appropriateness of the value in use model, the key assumption used in the model, the reasonably possible alternative assumptions, particularly where they had the most impact on the value in use calculation.
208
YEAR OF EXCELLENCE
11) Impact of COVID-19 on financial reportingThe key audit matter How the matter was addressed in our audit
The effects of the COVID-19 pandemic have significant global implications for economies, markets and businesses, including volatility and possible material uncertainties. The operations of the Bank itself have been affected due to the restrictions brought about by the COVID-19 pandemic. There is an increasing probability that assertions and estimates related to reporting may be materially impacted due to impact of financial market volatility, deteriorating credit or liquidity concerns, government interventions, and disruptions in production and supply chain, among other matters.
Detailed substantive tests were conducted in order to mitigate the additional risks of material misstatements due to the impact of COVID-19. Testing the Bank’s and Group’s ability to function as a going concern by reviewing profitability, liquidity and operations, we performed detailed analytical procedures on the financial statements of the Bank, including but not limited to variance and common size analysis of balances. We have evaluated the appropriateness and sufficiency of the Management’s explanations for the deviations amongst balances and ratios of current year to that of the comparative. We analyzed the disclosures 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
The consolidated financial statements of the Group and also separate financial statements of the Bank as at and for the year ended 31 December 2019 were audited by us and Aziz Halim Khair Choudhury, Chartered Accountants jointly and expressed an unmodified opinion on those financial statements on 30 June 2020.
Other information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the consolidated and separate financial statements and our auditor’s report thereon. The Annual Report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Group and also separate financial statements of the Bank in accordance with IFRSs as explained in note 2, and for such internal control as management determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether
The key audit matter How the matter was addressed in our audit
We have focused on master data management, user access management and developer access to the production environment and changes to the IT environment. Among others, these are key to ensuring operating effectiveness of manual with automated control as well as fully automated control systems.
We tested the Group’s periodic review of access rights. We also inspected requests of changes to systems for appropriate approval and authorization. We considered the control environment relating to various interfaces, configuration and other application layer controls identified as key to our audit. 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.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
due to fraud or error. The Bank Company Act, 1991 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.
In preparing the consolidated and separate financial statements, management is responsible for assessing the Group’s and the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group and the Bank or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about
whether the consolidated and separate financial statements
as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level
of assurance but is not a guarantee that an audit conducted
in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis
of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
z Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
z Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on effectiveness of the Group’s internal control.
z Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
z Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Bank to cease to continue as a going concern.
z Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
z Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
210
YEAR OF EXCELLENCE
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, the Securities
and Exchange Rules 1987, the Bank Company Act, 1991 and
the rules and regulations issued by Bangladesh Bank, we also
report that:
(i) we have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due
verification thereof;
(ii) to the extent noted during the course of our audit
work performed on the basis stated under the Auditor’s
Responsibilities for the Audit of the Consolidated and
Separate Financial Statements section in forming the
above opinion on the consolidated financial statements
of the Group and the Separate Financial Statements
of the bank and considering the reports of the
Management to Bangladesh Bank on anti-fraud internal
controls and instances of fraud and forgeries as stated
under the management’s responsibility for the financial
statements and internal control:
(a) internal audit, internal control and risk management
arrangements of the Group as disclosed in the
financial statements appeared to be materially
adequate;
(b) nothing has come to our attention regarding
material instances of forgery or irregularity or
administrative error and exception or anything
detrimental committed by employees of the Group
and its related entities (other than matters disclosed
in these financial statements);
(iii) financial statements for the year ended 31 December
2020 of two subsidiaries, namely Sonali Exchange Co.
Inc. USA and Sonali Investment Ltd. have been audited by
United Financial CPA P.C, Certified Public Accountants
and Anil Salam Idris & Co., Chartered Accountants
respectively who have expressed unmodified audit
opinion. The results of the subsidiary have been properly
reflected in the consolidated financial statements;
(iv) in our opinion, proper books of account as required by
law have been kept by the Group and the Bank so far as
it appeared from our examination of those books;
(v) the records and statements submitted by the branches
have been properly maintained and consolidated in the
financial statements;
(vi) the consolidated balance sheet and consolidated profit
and loss account together with the annexed notes dealt
with by the report are in agreement with the books of
account and returns;
(vii) the expenditures incurred were for the purpose of the
Bank’s business for the year;
(viii) the consolidated financial statements of the Group and
the Separate Financial Statements of the bank have been
drawn up in conformity with prevailing rules, regulations
and accounting standards as well as related guidance,
circulars issued by Bangladesh Bank;
(ix) provision as required by Bangladesh Bank has been
accounted for loans & advances, investments and other
assets which are, in our opinion, doubtful of recovery;
(x) the information and explanations required by us have
been received and found satisfactory;
(xi) we have reviewed over 80% of the risk weighted assets
of the Bank covering 60 branches as well as Head Office
and spent over 6,237 person hours for the audit of the
bank; and
(xii) Capital to Risk-weighted Asset Ratio (CRAR) as required
by Bangladesh Bank has been maintained during the
year.
Date: 30 June 2021
Place: Dhaka
Signed for & on behalf of ACNABIN
Chartered Accountants
Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2106300787AS842829
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank Limited and its SubsidiariesConsolidated Balance SheetAs at 31 December 2020
Particulars Notes2020 Taka
2019 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 Foreign Currencies)
83,801,297,347 101,072,999,337
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
212
YEAR OF EXCELLENCE
Sonali Bank Limited and its SubsidiariesConsolidated Balance SheetAs at 31 December 2020
Particulars Notes2020 Taka
2019 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.
This is the consolidated balance sheet referred to in our separate report of even date.
Date: 30 June 2021Place: Dhaka
Subhash Chandra Das FCMA, FCAChief Financial Officer
A.K.M. Kamrul Islam FCA, FCSDirector
Ziaul Hasan SiddiquiChairman
Md. Ataur Rahman Prodhan CEO & Managing Director
Ishtiaque Ahmed ChowdhuryDirector
Signed for & on behalf of ACNABIN
Chartered Accountants
Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2106300787AS842829
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank Limited and its Subsidiaries Consolidated Profit and Loss AccountFor the year ended 31 December 2020
Particulars Notes2020 Taka
2019 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
214
YEAR OF EXCELLENCE
Sonali Bank LimitedConsolidated Profit and Loss AccountFor the year ended 31 December 2020
Particulars Notes2020 Taka
2019 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
The annexed notes from 1 to 48 form an integral part of these consolidated financial statements.
This is the consolidated Profit and loss account referred to in our separate report of even date.
Date: 30 June 2021Place: Dhaka
Subhash Chandra Das FCMA, FCAChief Financial Officer
A.K.M. Kamrul Islam FCA, FCSDirector
Ziaul Hasan SiddiquiChairman
Md. Ataur Rahman Prodhan CEO & Managing Director
Ishtiaque Ahmed ChowdhuryDirector
Signed for & on behalf of ACNABIN
Chartered Accountants
Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2106300787AS842829
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank Limited and its SubsidiariesConsolidated Cash Flow StatementFor the year ended 31 December 2020
Particulars Notes2020 Taka
2019 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
The annexed notes from 1 to 48 form an integral part of these consolidated financial statements.
Date: 30 June 2021Place: Dhaka
Subhash Chandra Das FCMA, FCAChief Financial Officer
Md. Ataur Rahman ProdhanCEO & Managing Director
A.K.M. Kamrul Islam FCA, FCSDirector
Ishtiaque Ahmed ChowdhuryDirector
Ziaul Hasan SiddiquiChairman
216
YEAR OF EXCELLENCE
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FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank LimitedBalance SheetAs at 31 December 2020
Particulars Notes2020 Taka
2019 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 Foreign Currencies)
83,801,297,347 101,072,999,337
3.00 91,102,172,683 108,764,434,079
Balance with other Banks & Financial Institutions
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
Non-Banking Assets 10.00 - -
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
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 (9,647,575,963) (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
218
YEAR OF EXCELLENCE
Sonali Bank LimitedBalance SheetAs at 31 December 2020
Particulars Notes2020 Taka
2019 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 assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
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.
This is the balance sheet referred to in our separate report of even date.
Date: 30 June 2021Place: Dhaka
Subhash Chandra Das FCMA, FCAChief Financial Officer
A.K.M. Kamrul Islam FCA, FCSDirector
Ziaul Hasan SiddiquiChairman
Md. Ataur Rahman Prodhan CEO & Managing Director
Ishtiaque Ahmed ChowdhuryDirector
Signed for & on behalf of ACNABIN
Chartered Accountants
Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2106300787AS842829
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank LimitedProfit and Loss Account For the year ended 31 December 2020
Particulars Notes2020 Taka
2019 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
220
YEAR OF EXCELLENCE
Sonali Bank LimitedProfit and Loss Account For the year ended 31 December 2020
Particulars Notes2020 Taka
2019 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
The annexed notes from 1 to 48 form an integral part of these financial statements.
Subhash Chandra Das FCMA, FCAChief Financial Officer
A.K.M. Kamrul Islam FCA, FCSDirector
This is the consolidated balance sheet referred to in our separate report of even date.
Date: 30 June 2021Place: Dhaka
Ziaul Hasan SiddiquiChairman
Md. Ataur Rahman Prodhan CEO & Managing Director
Ishtiaque Ahmed ChowdhuryDirector
Signed for & on behalf of ACNABIN
Chartered Accountants
Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2106300787AS842829
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank LimitedCash Flow StatementFor the year ended 31 December 2020
Particulars Notes2020 Taka
2019 Taka
A. Cash flows from operating activities
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
B. Cash flows from investing activities
(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)
C. Cash flows from financing activities
Proceed from share issue - -
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
The annexed notes from 1 to 48 form an integral part of these financial statements.
Date: 30 June 2021Place: Dhaka
Subhash Chandra Das FCMA, FCAChief Financial Officer
Md. Ataur Rahman ProdhanCEO & Managing Director
A.K.M. Kamrul Islam FCA, FCSDirector
Ishtiaque Ahmed ChowdhuryDirector
Ziaul Hasan SiddiquiChairman
222
YEAR OF EXCELLENCE
Son
ali B
ank
Lim
ite
d
Stat
em
en
t o
f C
han
ge
s in
Eq
uit
y
For
the y
ear
en
ded
31
Decem
ber
20
20
(Am
ou
nt
in T
aka)
Par
ticu
lars
Pai
d u
p C
apit
alSt
atu
tory
R
ese
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Oth
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Re
serv
e
Ass
et
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valu
atio
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Re
serv
e
Re
valu
atio
n o
f In
vest
me
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Re
tain
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Ear
nin
gs
Tota
l Eq
uit
y
Bal
ance
as
at 0
1 Ja
nu
ary
20
20
45
,30
0,0
00
,00
0
12,4
00
,572
,516
11
9,3
78,0
90
2
1,4
95
,93
3,2
77
62
5,2
47,
56
2
(11
,74
8,4
95
,49
2)
68
,19
2,6
35
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3
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defic
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f re
valu
atio
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of
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M, H
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Rem
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d S
ecu
ritie
s (R
MS)
-
-
-
-
14,2
07,
28
4,0
79
-
14
,20
7,2
84
,079
Net
Pro
fit f
or
the Y
ear
(aft
er
app
rop
riat
ion
) -
-
-
-
-
3
,23
4,3
49,4
42
3
,23
4,3
49,4
42
Ad
just
men
t m
ade f
or
CSR
du
rin
g t
he y
ear
-
(18
,66
4,2
74)
-
-
-
(18
,66
4,2
74)
Tran
sferr
ed
to
Rese
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or
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-
-
50
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0,0
00
-
-
(5
0,0
00
,00
0)
-
Tran
sferr
ed
to
Sta
tuto
ry R
ese
rve
-
1,0
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9,9
13
-
-
-
(1,
06
8,4
29,9
13)
-
Tran
sfer
to R
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-
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15,
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-
-
(15
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0,0
00
) -
Bal
ance
as
at 3
1 D
ece
mb
er
20
20
45
,30
0,0
00
,00
0 1
3,4
69
,00
2,4
29
1
65
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2
1,4
95
,93
3,2
77 1
4,8
32
,53
1,6
41
(9
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7,5
75,9
63
) 8
5,6
15,6
05
,19
9
Bal
ance
as
at 3
1 D
ece
mb
er
20
19 4
5,3
00
,00
0,0
00
12
,40
0,5
72,5
16
119
,378
,09
0
21,
49
5,9
33
,277
6
25
,24
7,5
62
(
11,7
48
,49
5,4
92
) 6
8,1
92
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5,9
53
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e:
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FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Son
ali B
ank
Lim
ite
dLi
qu
idit
y St
ate
me
nt,
Ass
et
and
Lia
bili
tie
s M
atu
rity
An
alys
is
As
at 3
1 D
ecem
ber
20
20
(Am
ou
nt
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Par
ticu
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Up
to
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mo
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m
atu
rity
1-3
mo
nth
s
mat
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mo
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mat
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ear
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mat
uri
tyM
ore
th
an 5
ye
ars
mat
uri
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tal
Ass
ets
Cas
h in
han
d 9
1,10
2,1
72,6
83
-
-
-
-
91,
102
,172
,68
3
Bal
ance w
ith o
ther
ban
ks a
nd
fin
ancia
l in
stitu
tion
s -
21,
176
,80
8,4
59
2
9,9
67,
558
,977
1
,019
,30
0,0
00
1
45,
141,
183
5
2,3
08
,80
8,6
19
Mo
ney
at c
all o
n s
ho
rt n
otic
e 9
,03
1,3
00
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0
-
-
-
-
9,0
31,
30
0,0
00
In
vest
men
ts 1
,272
,12
3,4
22
116
,475
,10
0,0
00
9
9,1
12,2
95,
59
8
22
2,2
07,
65
3,4
00
19
0,6
24,2
81,
38
8
62
9,6
91,
45
3,8
08
Lo
ans
and
Ad
van
ces
53,
83
8,0
58
,44
3
29,8
52
,812
,52
1 1
80
,54
8,7
21,
56
1 1
43,
077
,60
5,71
5
178
,915
,52
1,4
65
5
86
,23
2,7
19,7
04
Fi
xed
ass
ets
inclu
din
g p
rem
ises,
fu
rnitu
re a
nd
fixt
ure
s 9
5,6
44
,356
2
86
,93
3,0
68
8
60
,79
9,2
04
5
,770
,26
5,8
81
26
,877
,65
2,0
54
3
3,8
91,
29
4,5
63
O
ther
asse
ts 3
42
,56
7,8
89
1
,96
7,8
90
,98
7 1
2,5
78,7
65,
36
7 5
5,9
99,9
76,2
32
11
8,0
86
,814
,610
1
88
,976
,015
,08
5
No
n-b
anki
ng
ass
ets
-
-
-
-
-
-
Tota
l Ass
ets
15
5,6
81,
86
6,7
93
16
9,7
59
,54
5,0
35
32
3,0
68
,14
0,7
06
4
28
,074
,80
1,2
28
514
,64
9,4
10,7
00
1,5
91,
23
3,7
64
,46
2
Liab
iliti
es
Bo
rro
win
gs
fro
m B
ang
lad
esh
Ban
k, o
ther
ban
ks fi
nan
cia
l in
stitu
tion
s an
d a
gen
ts -
-
-
-
54
9,2
50
,18
3
54
9,2
50
,18
3
Dep
osi
ts 5
47,
771,
54
8,3
64
11
7,3
27,
84
8,5
32
40
8,2
10,3
20
,66
6
93,
03
8,9
65,
219
9
2,4
37,
58
1,8
85
1,2
58
,78
6,2
64
,66
5
Oth
er
acco
un
ts -
-
-
-
-
-
Pro
visi
on
an
d o
ther
liab
ilitie
s 6
8,9
87,
66
5
876
,44
2,5
46
7
,76
5,54
2,1
34
5
6,5
43,
245,
66
7 1
81,
02
8,4
26
,40
2
24
6,2
82
,64
4,4
14
Tota
l Lia
bili
tie
s 5
47,
84
0,5
36
,02
9 1
18,2
04
,29
1,0
78 4
15,9
75,8
62
,80
0
149
,58
2,2
10,8
86
274
,015
,25
8,4
70 1
,50
5,6
18,1
59
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2
Ne
t Li
qu
idit
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ap(3
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8,6
69
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51,
55
5,2
53
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2,9
07,
722
,09
3)
278
,49
2,5
90
,34
1 2
40
,63
4,1
52
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0
85
,615
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5,1
99
Cu
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dep
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ts d
o n
ot
hav
e a
ny
co
ntr
actu
al m
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rity
an
d h
en
ce h
ave b
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cla
ssifi
ed
am
on
g a
ll fiv
e m
atu
ritie
s. F
urt
her, it
has
been
ass
um
ed
th
at o
n a
go
ing
co
ncern
bas
is, t
hese
dep
osi
ts a
re n
ot
exp
ecte
d t
o f
all b
elo
w t
he c
urr
en
t ye
ar’s
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l.
Th
e a
nn
exe
d n
ote
s fr
om
1 t
o 4
8 f
orm
an
inte
gra
l par
t o
f th
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fin
ancia
l sta
tem
en
ts.
Dat
e:
30
Ju
ne 2
02
1P
lace
: D
hak
a
Sub
has
h C
han
dra
Das
FC
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, FC
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f Fi
nan
cia
l Offi
cer
Md
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ur
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man
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dh
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& M
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r
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Ch
ow
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Directo
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idd
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224
YEAR OF EXCELLENCE
1.00 Corporate profile of the Bank and its activities1.01 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.
Sonali Bank Limited and its subsidiariesNotes to the consolidated and separate financial statements
As at and for the year ended 31 December 2020
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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.
226
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.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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 guaranteesIFRS: 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 equivalentsIFRS: 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 assetsIFRS: 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 statementIFRS: 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 assetIFRS: 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 itemsIFRS: 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 provisionIFRS: 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).”
228
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.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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
230
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 MethodGovernment Securities: Government Treasury Bills Present ValuePrize Bonds Cost PriceBangladesh Bank Bills Cost priceSpecial Treasury Bonds Present ValueReverse Repo Cost PriceDebentures of Govt. Corporations Cost priceOther Investments (Quoted Shares) Market PriceOther Investments ( Other than Quoted Shares) Cost Price
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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.
Investment classInitial
RecognitionMeasurement after initial recognition
Recording of changes
Govt. T-bills/bond(HFT) Cost Face valueLoss to P & L, gain to Revaluation
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
Investment in listed securities Cost Fair valueLoss to P & L, gain to Revaluation
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.
232
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:
ParticularsShort term agri- credit
Consumer FinancingSMEF
Loan to BHs/ MBs/
SDs
All other creditOther Than
HF & LPHF LP
Unclassified Standard 1.00% 5% 1% 2% 0.25% 2% 1%
SMA 0% 5% 1% 2% 0.25% 2% *1%
Classified
SS 5% 20% 20% 20% 20% 20% 20%
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."
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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 depreciationLand 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).
234
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.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
2.17.04.02 Deferred taxDeferred 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 schemesAccounting recognition & measurement, as well as the disclosures requirements for different benefit schemes for employees are the following:
2.17.05.01 Employees General Provident FundEmployees 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) SchemeThe 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 GratuityThe 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 FundThe 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 FundThis 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."
236
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'.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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.
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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:
i. Loans & AdvancesIncludes loans, deposits and other transactions and balances with corporate customers & retail customers.
ii. Treasury
Undertakes the Bank’s funding and maintenance of CRR and SLR, Asset-liability management through borrowings and placement, currency swap and investing in liquid assets such as short-term placements and corporate and government debt securities.
iii. Overseas Branches (Kolkata, Siliguri)
Two (02) overseas branches of Sonali Bank Limited are situated at Kolkata & Siliguri in India and operating banking business, money remittance etc. as per the head office instructions and other activities as permitted under the banking law of India.
iv. Sonali Exchange Company Incorporated (SECI), USA
Sonali Exchange Company Incorporated (SECI), USA, subsidiary company of Sonali Bank Limited operates its business in USA. It performs the activities of money remittance, issue cheques, payment instruments and traveler’s cheque and other activities as permitted under the banking law of USA.
v. Sonali Investments LimitedEstablished to do all kinds of merchant banking activities including issue management, underwriting, portfolio management and other transactions.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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 Riskz Credit Risk Managementz Asset Liability Management Riskz Money Laundering Riskz Information & Communication Technology Security Riskz 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.
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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.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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. No.
Name Status in the Bank Status in the committee
1 Mr. Ishtiaque Ahmed Chowdhury Director Chairman
2 Mr. Md. Fazlul Haque Director Member
3 Mrs. Dr. Daulatunnaher Khanam Director Member
4 Mr. Md. Mofazzal Husain 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
1 Mr. A.K.M. Kamrul Islam FCA, FCS Director Chairman
2 Mr. Ishtiaque Ahmed Chowdhury Director Member
3 Mrs. Dr. Daulatunnaher Khanam Director Member
4 Professor Dr. Mohammad Kaykobad Director Member
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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 BankAs 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 Declaration
Valid till Rating Mode Long Term Short Term Outlook
26-Nov-20 25-Nov-21
Govt. Support AAA ST-1
StableWithout Govt. Support
A ST-2
2.25 Implementation of BASEL-IIIBanks 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:
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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.
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.
Total Eligible Capital
Credit RWA+Market RWA+Operational RWACRAR =
Tier 1 Capital (after related deductions)
Total Exposure (after related deductions)LR =
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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.
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.
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.
Stock of quality liquid assets
Total net cash outflows over the next 30 calendar daysLCR= ≥ 100%
Available amount of stable funding (ASF)
Required amount of stable funding (RSF)NSFR= ≥ 100%
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
2.29Compliance of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs)
The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). While preparing the financial statements, Sonali Bank Limited applied most of IASs and IFRSs as adopted by ICAB. Details are given below:
Name of the IASs/IFRSsIASs
/IFRSs No.Status
Presentation of Financial Statements 1 Applied*Inventories 2 AppliedStatement of Cash Flows 7 AppliedAccounting policies, Changes in accounting Estimates and Errors 8 AppliedEvents after the Reporting Period 10 AppliedIncome Taxes 12 AppliedProperty, Plant and Equipment 16 AppliedEmployees Benefits 19 AppliedAccounting for Government Grants and Disclosure of Government Assistance 20 N/AThe Effects of Changes in Foreign Exchange Rates 21 AppliedBorrowing Costs 23 AppliedRelated Party Disclosures 24 AppliedSeparate Financial Statements 27 AppliedInvestment in Associates & joint venture 28 AppliedFinancial Instruments: Presentation 32 Applied*Earning Per Share 33 AppliedInterim Financial Reporting 34 Applied*Impairment of Assets 36 AppliedProvision, Contingent Liabilities and Contingent Assets 37 AppliedIntangible Assets 38 AppliedInvestment Property 40 N/AAgriculture 41 N/AFirst-time Adoption of Bangladesh Financial Reporting Standards 1 AppliedShare-Based Payment 2 N/ABusiness Combinations 3 AppliedInsurance Contracts 4 N/ANon-Current Assets Held for Sale and Discontinued Operations 5 N/AExploration for and Evaluation of Mineral Resources 6 N/AFinancial Instrument: Disclosures 7 Applied*Operating Segments 8 AppliedFinancial Instruments 9 Applied*Consolidated Financial Statements 10 AppliedJoint Arrangements 11 N/ADisclosure of Interests in Other Entities 12 AppliedFair Value Measurements 13 AppliedRegulatory Deferral Accounts 14 N/ARevenue from Contracts with Customers 15 AppliedLeases 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).
246
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 Bangladesh Bank guidelines.
As per BRPD circular no. 14, date 23 Sep 2012, 1% provision should be maintained against off- balance sheet items except the criteria mention in the BRPD circular no 01, date 03 January 2018. Bank has maintained sufficient provision in the books of accounts against off balance sheet exposure.
2.32 Fraud and Forgeries
2.32.01 Fraud Prevention Process
Based on DOS circular letter no. 17, dated 7 November 2012 issued by Bangladesh Bank, the following areas for self assessment of Anti-Fraud Internal Controls are addressed by the Bank:
z Internal Control and Compliance (ICC);z General Banking and Operation (GBO);z Loans and Advances (LA); andz Information and Communications Technology (ICT)z General Banking and Operation (GBO);z Loans and Advances (LA); andz 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.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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.
248
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.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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.
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
3.00 Cash
Cash in hand (Including foreign currencies)
3.01 7,428,996,911 7,815,153,994 7,300,875,335 7,691,434,742
Balance with Bangladesh Bank and its Agent Bank (Including foreign currencies)
3.02 83,801,297,347 101,072,999,337 83,801,297,347 101,072,999,337
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
3.02Balance with Bangladesh Bank and its Agent Bank(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
Islamic Banking Window 196,430,133 - 196,430,133 -
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
250
YEAR OF EXCELLENCE
Particulars PercentageAmount in Taka
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.
Particulars PercentageAmount in Taka
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 Sukuk)
5,279,450,000 -
Other Eligible Securities 42,106,808,886 63,151,467,910
579,700,692,000 462,194,313,862
Particulars Notes
Amount in Taka
Consolidated Bank
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
ParticularsTransaction
Currency
Amount in Taka
Consolidated Bank
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 Bank (RAKAB)
BDT 1,000,000,000 - 1,000,000,000 -
National Cerdit and Commerce Bank Ltd.
BDT - 1,000,000,000 - 1,000,000,000
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 Banking Br.
BDT 320 1,423 - -
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 & Commerce Bank Ltd.
BDT 600,000,000 1,200,000,000 600,000,000 1,200,000,000
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 & Investment Co. Ltd.
BDT 200,000,000 200,000,000 200,000,000 200,000,000
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
4.01 Balance with other Banks and Financial Institutions
In Bangladesh :
252
YEAR OF EXCELLENCE
Islami Finance and Investment Ltd.
BDT 70,000,000 80,000,000 70,000,000 80,000,000
Investment Corporation of Bangladesh
BDT 15,000,000,000 15,000,000,000 15,000,000,000 15,000,000,000
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 & Finance Service Ltd.
BDT 189,600,000 189,600,000 189,600,000 189,600,000
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 & Financial Services Ltd.
BDT 400,000,000 400,000,000 400,000,000 400,000,000
Bangladesh Industrial Finance Company Ltd. (BIFC)
BDT 200,000,000 200,000,000 200,000,000 200,000,000
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 & Investment Company Ltd.
BDT 150,000,000 150,000,000 150,000,000 150,000,000
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 & Investment Ltd.
BDT 260,000,000 300,000,000 260,000,000 300,000,000
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 Balance Eliminated
192,723,930 144,086,071 - -
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
Sonali Exchange Co. Inc 265,500,561 158,557,458 - -
11,893,927,285 9,111,386,179 11,628,426,724 8,952,828,722
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
SL.No. Particulars As at 31 December 2020
Foreign Currency
FC amount Exchange rate Amount in Taka
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
4 Sonali Bank (UK) Ltd. London USD 1,313,343.40 84.80 111,372,965
5 Sonali Bank (UK) Ltd. London USD 682,842.08 84.80 57,905,760
6 Sonali Bank (UK) Ltd. London USD 1,040,099.09 84.80 88,201,547
7 Sonali Bank (UK) Ltd. London USD 36,614.00 84.80 3,104,867
8 Sonali Bank (UK) Ltd. London USD 165,509.47 84.80 14,035,385
9 Sonali Bank (UK) Ltd. London GBP 281,490.07 114.50 32,230,163
10 Sonali Bank (UK) Ltd. London GBP 48,649.82 114.50 5,570,327
11 Sonali Bank (UK) Ltd. London GBP 16,939.00 114.50 1,939,487
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
19 Sonali Bank (UK) Ltd. London USD 767,475.85 84.80 65,082,796
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
4.02.01 Balance held with Foreign Bank Debit Balance
254
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)
SL. No. Particulars As at 31 December 2020
Foreign Currency FC amount Exchange rate Amount in Taka
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
SL. No. Particulars As at 31 December 2020
Foreign Currency FC amount Exchange rate Amount in Taka
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
4.03 Maturity Grouping of Balance with Other Banks & Financial InstitutionsOn 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 but less than one year
30,233,059,857 32,954,853,073 29,967,558,977 32,796,285,613
More than one year but less than five years
1,019,300,000 971,879,683 1,019,300,000 971,879,683
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
NoticeIn 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 Bank Ltd
- 50,000,000 - 50,000,000
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 InstitutionsDBH - 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 Company Limited
259,500,000 148,600,000 259,500,000 148,600,000
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
256
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Prime Finance and Investment Ltd.
112,900,000 105,000,000 112,900,000 105,000,000
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 Investment Ltd.
75,000,000 83,800,000 75,000,000 83,800,000
Meridian Finance and Investment Ltd.
88,000,000 90,000,000 88,000,000 90,000,000
National Finance and Investment Ltd.
40,000,000 40,000,000 40,000,000 40,000,000
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/Other securities
6.01.02 409,078,841,521
354,557,688,542
409,078,841,521
354,557,688,542
Bangladesh Government Investment Sukuk (Ijarah Sukuk)
5,279,450,000 - 5,279,450,000 -
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
Overseas Branches 199,855,250 169,855,810 199,855,250 169,855,810
Islamic Banking Window 275,000,000 - 275,000,000 -
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
182 days Treasury Bills 12,704,465,250 17,390,316,761 12,704,465,250 17,390,316,761
364 days Treasury Bills 31,107,647,317 9,696,068,440 31,107,647,317 9,696,068,440
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
6.01.02 Government Notes/Bonds/Other securities
2 years Bangladesh Govt. Treasury Bond (BGTB)
45,103,167,552 22,842,554,000 45,103,167,552 22,842,554,000
5 years Bangladesh Govt. Treasury Bond (BGTB)
108,613,283,749
83,096,018,903
108,613,283,749 83,096,018,903
10 years Bangladesh Govt. Treasury Bond (BGTB)
100,516,187,629 100,350,930,784 100,516,187,629 100,350,930,784
15 years Bangladesh Govt. Treasury Bond (BGTB)
57,673,461,471 47,825,314,970 57,673,461,471 47,825,314,970
20 years Bangladesh Govt. Treasury Bond (BGTB)
56,122,204,120 43,464,532,885 56,122,204,120 43,464,532,885
11-13 years Treasury Bond (BJMC)
3,926,400,000 5,354,200,000 3,926,400,000 5,354,200,000
8-15 years Treasury Bond (BPC)
31,364,700,000
45,864,700,000 31,364,700,000 45,864,700,000
3 Years Treasury Bond (FRTB)
1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
3-7 Years Treasury Bond (SBL)
4,759,437,000 4,759,437,000 4,759,437,000 4,759,437,000
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 Account
79,572,009,388 61,962,846,334 79,572,009,388 61,962,846,334
Bangladesh Government Investment Sukuk (Ijarah Sukuk)
5,279,450,000 - 5,279,450,000 -
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 sectors
755,500 755,500 755,500 755,500
Security Deposit with Central Bank of India
9,614,791 9,692,560 9,614,791 9,692,560
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
Sub-total 79,858,253,350 73,786,904,273 78,924,027,280 73,339,467,910
Overseas Branches 72,268,172 110,832,285 72,268,172 110,832,285
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-ordinary share*
7,789,259,906 6,908,006,707 7,789,259,906 6,908,006,707
Unquoted-Fully paid-up-ordinary share
12,356,335,780 7,327,017,840 12,356,335,780 7,327,017,840
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
258
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019Investment in Shares & Bond
ParticularsNumber of Company
Market Price 2020
Cost Price
2020 2019Listed 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
SectorNumber of Company
Market Price 2020
Cost Price 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
SectorNumber of Company
Market Price 2020
Cost Price 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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
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 (Corporate)
279,995,303 359,995,303 279,995,303 359,995,303
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. Bond (Corporate)
1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
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
Bangladesh Government Investment Sukuk (Ijarah Sukuk)
5,279,450,000 - 5,279,450,000 -
Overseas Branches 199,855,250 169,855,810 199,855,250 169,855,810
Islamic Banking Window 275,000,000 - 275,000,000 -
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 Central Bank of India
9,614,790 9,692,559 9,614,790 9,692,559
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
Overseas Branches 72,268,172 110,832,286 72,268,172 110,832,286
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
116,475,100,000 56,747,200,000
116,475,100,000
56,747,200,000
More than three months but less than one year
99,112,295,598 52,901,624,500 99,112,295,598 52,901,624,500
More than one year but less than five years
222,207,653,400 172,750,840,400 222,207,653,400
172,750,840,400
Above five years 191,558,507,458 213,415,008,791
190,624,281,388 212,967,572,428
630,625,679,878 500,834,330,888 629,691,453,808 500,386,894,525
260
YEAR OF EXCELLENCE
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 not more than 1 year
176,858,168,633
161,927,465,937
175,141,390,265 159,825,312,669
More than 1 year but not more than 5 years
143,077,605,715 118,731,281,494 143,077,605,715 118,731,281,494
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
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Loan Under S.B Industrial Credit Scheme (Project)
34,225,383,044 36,818,007,377 34,225,383,044 36,818,007,377
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 Industrial Cr.Scheme
8,186,850,819 13,785,614,672 8,186,850,819 13,785,614,672
Agricultural Loan 46,606,889,179 50,387,649,730 46,606,889,179 50,387,649,730
Micro Credit (SFL Scheme plus RSTL Scheme)
12,197,520,101 12,117,307,930 12,197,520,101 12,117,307,930
Loan under Imported Merchandise(LIM)
1,886,910,694 2,025,865,022 1,886,910,694 2,025,865,022
Loan against Trust Receipt 45,765,475,529 50,301,472,442 45,765,475,529 50,301,472,442
Forced Loan against Back to Back L/C
24,589,344,033 23,820,532,736 24,589,344,033 23,820,532,736
Loan for L/C under WES. 136,339 136,339 136,339 136,339
Current Account Barter (Debit Balance)
932,606,463 932,606,463 932,606,463 932,606,463
Bridge Finance 2,992,866,505 2,993,886,872 2,992,866,505 2,993,886,872
House Building Loan (Govt. Employees)
762,768,795 261,276,486 762,768,795 261,276,486
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 Bangladesh Biman
50,636,224,126 54,281,800,208 50,636,224,126 54,281,800,208
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 Capital to Ind.Ser.Tre.)
39,552,712,034 21,550,133,323 39,552,712,034 21,550,133,323
SME Loan Under B.B Revolving Re-Finance for COVID-19
3,090,692,960 - 3,090,692,960 -
Working Capital under Stimulus Pack. for Indus. & Serv. for COVID-19
10,953,054,369 - 10,953,054,369 -
Special Term Loan against Fund Received from B.B for Worker's Salary of Export Oriented Indus. Under COVID-19
187,717,167 - 187,717,167 -
Agri. Loan disbursed at Conce. Intt. Rate against COVID-19
1,865,612,697 - 1,865,612,697 -
Agri. Loan against Special Stimulus Refinance Sch.for COVID-19
1,002,018,662 - 1,002,018,662 -
Micro Credit Loan Under B.B Revolving Refi. Sch. for COVID-19
12,650,249 - 12,650,249 -
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
262
YEAR OF EXCELLENCE
Special Loan - Advance rent (Interest Bearing)
101,412,987 84,391,691 101,412,987 84,391,691
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 - Sonali Neer A/C
152,288,263 111,394,603 152,288,263 111,394,603
Loan Against Food Procurement Bill A/C
1,651,493,441 2,259,752,654 1,651,493,441 2,259,752,654
492,821,876,356 425,540,511,365 492,821,876,356 425,540,511,365
Islamic Banking Window
Bai Muazzal -House Hold Durable Scheme
294,406,081 - 294,406,081 -
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 rate of Interest (SECI)
- - 55,218,006 68,357,682
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 Industries. (Hypo)
34,496,718,482 34,646,963,702 34,496,718,482 34,646,963,702
Working Capital to Industries. (Pledge)
2,144,024,609 2,761,622,459 2,144,024,609 2,761,622,459
Working Capital to Agro based Ind. (Hypo)
7,413,886,223 12,682,495,109 7,413,886,223 12,682,495,109
Working Capital to Agro based Ind. (Pledge)
3,407,159,162 7,533,044,546 3,407,159,162 7,533,044,546
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 Bangladesh)
137,780,453 139,649,280 137,780,453 139,649,280
Total Overdrafts etc. 21,460,881,024 25,149,191,524 21,847,468,927 25,149,191,524
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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 during the year
(424,051,263) (559,233,091) - -
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 Bangladesh
7.04.01b 213,629,885 124,404,072 213,629,885 124,404,072
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 Documents (PAD)
8,164,741,650 7,327,338,555 8,164,741,650 7,327,338,555
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 Documents (PAD) A/C-EDF
1,130,827,216 1,393,469,845 1,130,827,216 1,393,469,845
Foreign Bills Purchased/Negotiated (Clean)
52,261,638 52,261,638 52,261,638 52,261,638
Foreign Bills Purchased/Negotiated (Documents)
1,372,734,135 1,510,311,251 1,372,734,135 1,510,311,251
Total 13,223,959,614 12,857,435,851 13,223,959,614 12,857,435,851
7.04.01b Outside Bangladesh
Foreign Bills Purchased/Negotiated (Documents) of Overseas Branches
213,629,885 124,404,072 213,629,885 124,404,072
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 more than 3 Months
470,991,377 2,001,026,579 470,991,377 2,001,026,579
More than 3 months but not more than 6 Months
4,505,804,404 1,809,088,713 4,505,804,404 1,809,088,713
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 / investments
587,949,498,072 553,128,446,526 586,232,719,704 551,026,293,258
Non-performing loans and advances / investments
7.09.01 (107,673,900,177) (111,993,904,839) (107,673,900,177) (111,993,904,839)
Total 480,275,597,895 441,134,541,687 478,558,819,527 439,032,388,419
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
264
YEAR OF EXCELLENCE
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 Paid up Capital)
180,016,991,188 179,269,488,756
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 :
Name of the BorrowerOutstanding
amountClassified amount
Classification status
Outstanding as % 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 Development Corporation (BADC)
14,437,634,322 - UC 2.46%
Bangladesh Sugar & Food Ind. Cor. 43,674,900,000 - UC 7.45%
Total 180,016,991,188 26,605,028,181 31%
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Name of the Borrower
Amount in Taka
2020
Funded Loan Non Funded
Loan Total Loan Status of Loan
A. Group Borrower
Beximco Group
Beximco Ltd. 14,117,226,010 319,000,000 14,436,226,010 UC=319,000,000 SMA= 14,117,226,010
GMG Airlines Ltd. 2,501,719,531 6,000,000 2,507,719,531 UC=6,000,000 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
M/S Hall Mark Fashion Limited 3,431,742,132 4,080,212,071 7,511,954,203 UC=4,080,212,071 BL= 3,431,742,132
M/s Farhan Fashion Ltd 2,630,920 842,526,976 845,157,896 UC=842,526,976
BL=2,630,920 "
M/s Hall Mark Design Wear Limited 395,151,078 192,106,217 587,257,295 UC=192,106,217, 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
M/s Boby Fashion Ltd 238,235,821 17,054,537 255,290,358 BLW=238,235,821
UC=17,054,537M/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
M/s T & Brother Knit Composite Ltd 2,231,482,089 1,611,832,723 3,843,314,812 UC=1,611,832,723 BL=2,231,482,089
M/s Exper Take Ltd 1,756,916,409 - 1,756,916,409 BL=1,756,916,409
M/s Dress Me Fashions Ltd 780,895,429 514,381,651 1,295,277,080 UC=514,381,651 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
7.07(b) Details about the Group / Single Borrower
266
YEAR OF EXCELLENCE
Name of the Borrower
Amount in Taka
2020
Funded Loan Non Funded
Loan Total Loan Status of Loan
Thermax Spinning Limited 876,900,000 - 876,900,000 UC=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 Corporation (BCIC)
15,261,660,363 4,670,724,023 19,932,384,386 UC=15,261,660,363
Bangladesh Agricultural Development Corporation (BADC)
14,437,634,322 10,215,238,712 24,652,873,034 UC=14,437,634,322
Directorate General of Defense Purchase-DGDP
- 8,398,437,118 8,398,437,118 -
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 (BREB)
- 9,100,037,118 9,100,037,118 -
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
6 years for demand loan and 12 years for term loan along with 1 year moratorium period
(i) Demand Loan
(ii) Term Loan
-
14,117,226,010
Total 14,117,226,010
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
7.08 Geographical Area-wise Loans and Advances
No.of Branches
Amount in Taka % of Total Loan
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)
Dhaka GM's OfficeNo. of
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
268
YEAR OF EXCELLENCE
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
ParticularsNo.of
Branches Amount in Taka % of Total Loan
2020 2019 2020 2019
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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:
Particulars Amount in Taka
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) - -
270
YEAR OF EXCELLENCE
7.09.01 Classification of advances as per Bangladesh Bank circular
Particulars% of Total Loans Amount in Taka
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
ParticularsBase for provision
2020 Rate (%)
Required Provision
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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.
Particulars Notes Amount in Taka
2020 2019
7.11 Industry-Wise Segment of Loan and advances
Govt. of BD Food (Salt & Rice)
1,435,188,984 1,435,188,984
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/LIM/PAD/FBPN, etc)
31,717,400,000 33,847,200,000
Garments Industry 12,332,500,000 11,338,600,000
Textile Industry 40,399,500,000
31,854,700,000
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 Packaging
4,683,500,000 4,320,600,000
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/FDC/BSCIC/BIMAN/Ov. Branches)
327,005,826,009 308,042,822,847
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 (Semi Govt. Autonomous)
7.12.02 124,695,200,000 132,308,100,000
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
272
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 secured.
365,732,235,345 347,044,987,288
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
v) Loans due by Directors or Officers of the banking company or any of these either separately or jointly with any other persons
61,936,314,441 62,012,909,384
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 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.
61,936,314,441 62,012,909,384
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.
Particulars Notes
Amount in Taka
Consolidated Bank
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
274
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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
Computer Hardware 1,918,102,794 1,734,827,062 1,898,116,484 1,715,131,872
Type Writer Machine 5,437,880 5,369,812 5,437,880 5,369,812
Motor Car & Other Vehicle 348,607,723 287,572,195 319,666,919 259,315,998
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
Computer Software 374,377,675 256,305,006 369,742,339 251,689,670
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 & Amortization
4,857,764,515 4,196,332,112 4,793,192,480 4,117,859,674
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
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 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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Computer Software 617,603,760 553,333,032 612,958,425 548,687,697
Total Cost Value 8,169,352,012 7,594,348,560 8,103,538,399 7,523,691,555
(B) Accumulated Depreciation
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
Electric Installation 837,139,931 766,189,424 839,155,868 763,474,891
Computer Hardware 1,918,102,794 1,734,827,062 1,898,116,484 1,715,131,872
Type Writer Machine 5,437,880 5,369,812 5,437,880 5,369,812
Motor Car & Other Vehicle 348,607,722 287,572,195 319,666,919 259,315,998
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
Computer Software 374,377,674 256,305,006 369,742,339 251,689,670
Written Down Value on Cost Basis (A-B-C)
3,543,345,021 3,505,043,547 3,542,103,442 3,502,784,715
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 during the year
471,469,283 156,145,115 466,301,242 156,122,474
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 & Amortization
4,626,006,990 4,099,180,381 4,561,434,956 4,016,513,967
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 Subsidiary & Associate Com.
9.01 3,374,024,007 3,274,726,868 5,454,585,052 5,355,381,868
Advance Rent, Advertisement etc.
9.03 101,001,389 66,142,235 101,001,389 66,142,235
Interest, Commission and Exchange Receivable
9.04 20,481,550,454 20,062,010,586 20,366,271,368 20,052,342,818
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 Printing Materials in hand
9.02 122,990,228 114,424,293 122,990,228 114,424,293
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
276
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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 handStamps 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
receivablei) 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
ExpensesPrepaid 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 BalanceSonali Bank General Account Balance
6,161,893,199,577 5,731,454,430,436 6,161,893,199,577 5,731,454,430,436
Main Office Account Balance (New) 260,699,086,501 260,699,086,501 260,699,086,501 260,699,086,501 Sonali Bank General Account (RMS+)
7,435,643,653,201 6,550,916,146,400 7,435,643,653,201 6,550,916,146,400
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
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
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 Ex-Advice
1,570,210 1,590,792 1,570,210 1,590,792
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 fund Investment
1,442,642,103 1,374,681,998 1,442,642,103 1,374,681,998
SBL Employee PDCRB fund Investment
4,176,259,894 7,676,259,894 4,176,259,894 7,676,259,894
BRDB UCCA Crop Loans Int & Penal Int. Exemption-2007
511,283,719 511,283,719 511,283,719 511,283,719
Settlement A/C (Islami) 612,292,176 532,152,832 612,292,176 532,152,832
Loan Exemption Under Jute Sectors Reform Proj. 94-95.
5,094,543,083 5,094,543,083 5,094,543,083 5,094,543,083
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 affected by River Erosion
99,557,837 99,557,837 99,557,837 99,557,837
Wage Earners' Bond Encashment A/C.
1,053,475,684 1,229,429,078 1,053,475,684 1,229,429,078
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 Recruitment A/C
47,188,984 50,856,176 47,188,984 50,856,176
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 Debit Balance
12,363,214,551 12,718,590,059 12,363,214,551 12,718,590,059
Placement With Solicitation Account 164,717,013 164,717,012 164,717,013 164,717,012
278
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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 Fluctuation of Biman Loan
41 - 41 -
Mobile Financial Services Link Settlement Account Debit Balance
3,301 - 3,301 -
Non-Interest Bearing Blocked Account for COVID-19
3,471,349,961 - 3,471,349,961 -
Receivable from Govt. Under Savings Certificate Issued to Workers of BJMC against Retirement Benefit
3,542,199,340 - 3,542,199,340 -
Islamic Banking Window 118,113,687 - 118,113,687 -
Overseas Branches 188,280,641 25,358,066 188,280,641 25,358,066
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 date
33,250,002,176 33,460,873,022 33,248,770,597 33,458,614,186
Less: Land Value and building construction Amount
29,991,115,574 30,281,379,035 29,991,115,574 30,281,379,035
Carrying value without considering land value
3,258,886,602 3,179,493,987 3,257,655,023 3,177,235,151
b) Tax base 2,451,363,433 2,438,803,940 2,456,207,427 2,438,803,940
c) Taxable/(Deductible) Temporary Difference (a-b)
807,523,169 740,690,047 801,447,596 738,431,211
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 Difference (a-b)
(7,582,471,097) (11,370,814,327) (7,582,471,097) (11,370,814,327)
iii) Provision for loans and advances
a) Carrying amount at balance sheet date
- - - -
Provision for Classified loan and advances
(56,857,615,093) (52,426,841,335) (56,831,450,627) (52,407,180,134)
Provision for Un-Classified loans - (5,357,515,747) - (5,357,515,747)
b) Tax base - - - -
c) Taxable/(Deductible) Temporary Difference (a-b)
(56,857,615,093) (57,784,357,082) (56,831,450,627) (57,764,695,881)
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 - - - -
c) Taxable/(Deductible) Temporary Difference (a-b)
(3,928,626,406) (1,475,487,235) (3,928,626,406) (1,475,487,235)
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
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 - - - -
c) Taxable/(Deductible) Temporary Difference (a-b)
(1,783,008,468) (2,667,225,276) (1,783,008,468) (2,667,225,276)
vi) Provision for Othr Bank's and NBFI
a) Carrying amount at balance sheet date (745,200,000) - (745,200,000) -
b) Tax base - - - -
c) Taxable/(Deductible) Temporary Difference (a-b)
(745,200,000) - (745,200,000) -
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 - - - -
c) Taxable/(Deductible) Temporary Difference (a-b)
- (2,216,136,167) - (2,216,136,167)
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 Assets
(27,500,856,617) (29,109,164,433) (27,492,821,060) (29,102,203,487)
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 Assets/Liabilities
1,608,307,816 1,586,461,840 1,609,382,427 1,587,604,936
Less: Deferred Tax Income against IFRS-16
7,557,465 - 7,557,465 -
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 Indian Rupee)
614,675 - 614,675 -
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 Erosion
99,557,837 99,557,837 99,557,837 99,557,837
BRDB UCCA Crops Loans Int.Penal Int. Exempt. A/Cs
511,283,719 511,283,719 511,283,719 511,283,719
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 (Unreconciled Entries)
9.06.01 2,000,000,000 1,500,000,000 2,000,000,000 1,500,000,000
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.
280
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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 BRDB UCCA Crops Loan
511,283,719 - 511,283,719 -
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 Bangladesh Bank
70,000 70,000 70,000 70,000
Refinance Against Jute Sector from Bangladesh Bank
549,180,183 604,105,183 549,180,183 604,105,183
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 Accounts
12.02.01(a+b+c) 242,819,548,854 242,142,019,430 243,012,272,784 242,286,105,501
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019Deposits 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 balance eliminated
192,723,930 144,086,071 - -
Total 1,258,593,540,735 1,158,643,695,226 1,258,786,264,665 1,158,787,781,297
12.01 Deposits and other accounts
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 Eliminated
192,723,930 144,086,071 - -
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
Islamic Banking Window
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
282
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Foreign Bank Deposit 478,632,425 415,816,059 478,632,425 415,816,059
Current Account Barter Credit Balance
4,316,406,332 8,477,901,458 4,316,406,332 8,477,901,458
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 Retention Quota
8,117,311,029 8,072,463,905 8,117,311,029 8,072,463,905
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) & R.F.C.D Account
170,035,011 168,768,497 170,035,011 168,768,497
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 balance Eliminated
192,723,930 144,086,071 - -
Total 242,549,293,651 241,330,498,829 242,742,017,581 241,474,584,900
12.02.1.b Current and Contingency (Overseas Branches)
264,978,286 811,520,601 264,978,286 811,520,601
12.02.1.c Current and Contingency (Islamic Banking Window)
5,276,916 - 5,276,916 -
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 Cheque Issued A/c.
303,688 303,688 303,688 303,688
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 (Islamic Banking Window)
108,221,556 - 108,221,556 -
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
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 Scheme
1,346,701,064 1,424,467,777 1,346,701,064 1,424,467,777
Deposit Pension Payment Account
4,953,024 4,331,244 4,953,024 4,331,244
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 Fund
413,852,842 4,491,509,324 413,852,842 4,491,509,324
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 Window)
4,508,031,106 - 4,508,031,106 -
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 Window)
3,004,795 - 3,004,795 -
Total 11,888,727 - 11,888,727 -
284
YEAR OF EXCELLENCE
Particulars No.of Branches Amount in Taka
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
ParticularsNo.of
Branches Amount in Taka % of Total Deposit
2020 2019 2020 2019
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
Islamic Banking Window 4,624,534,374 -
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
ParticularsNo.of
Branches Amount in Taka % of Total Deposit
2020 2019 2020 2019
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
286
YEAR OF EXCELLENCE
ParticularsNo.of
Branches Amount in Taka % of Total Deposit
2020 2019 2020 2019
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
Islamic Banking Window 4,624,534,374 -
12.03.2.b Outside Bangladesh
Overseas Branches 2 590,682,644 1,126,970,984 0.05 0.10
Total Deposits and Other Accounts
1226 1,258,786,264,665 1,158,787,781,297 100 100
Head office is included in Number of Branches and Deposits and Other Accounts
Particulars Amount in Taka
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
Islamic Banking Window 4,624,534,374 -
Overseas Branches 590,682,644 1,126,970,984
1,258,786,264,665 1,158,787,781,297
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 201912.05.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 Less: Inter Company balance Eliminated
192,723,930 144,086,071 - -
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
Repayable on Demand 24,596,112,912 19,110,628,754 24,596,112,912 19,110,628,754
Repayable within 1 Month 18,317,727,136 14,231,319,285 18,317,727,136 14,231,319,285
Over 1 month but within 6 Months 1,570,090,898 1,219,827,367 1,570,090,897 1,219,827,367
Over 6 months but within 1 year 5,233,636,325 4,066,091,224 5,233,636,325 4,066,091,224
Over 1 year but within 5 years 2,616,818,162 2,033,045,612 2,616,818,162 2,033,045,612
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Other Deposits
Repayable on Demand 467,520,544,505 430,652,902,137 467,520,544,505 430,652,902,137
Repayable within 1 Month 108,111,122,830 92,201,525,663 108,111,122,830 92,201,525,663
Over 1 month but within 6 Months 259,586,818,262 248,093,381,813 259,586,818,262 248,093,381,813
Over 6 months but within 1 year
181,326,158,467
162,919,707,788
181,326,158,467 162,919,707,788
Over 1 year but within 5 years 91,255,554,220 83,960,290,119 91,255,554,220 83,959,709,001
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
Less: Inter Company balance Eliminated
192,723,930 144,086,071 - -
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 on Demand 11,043,066,246 10,909,899,482 11,043,066,246 10,909,899,482
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 December 2020
4,643,561 5,259,154 4,643,561 5,259,154
13.00 Other liabilities
Domestic Branches
Provision for Classified loans including writ
13.01.a 57,705,451,597 53,016,379,222 57,705,451,597 53,016,379,222
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 value of Investment in Share
13.03 1,866,304,803 2,750,521,610 1,783,008,468 2,667,225,276
Provision against Portfolio Loan 389,011,538 389,011,538 - -
Liability for employees benefit ( Pension fund)
13.04 1,695,422,274 1,733,812,393 1,695,422,274 1,733,812,393
Liability for employees benefit ( PDCRB fund)
13.05 5,887,013,188 9,636,966,300 5,887,013,188 9,636,966,300
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 SME (Ren. Energy/Solar Energy)
79,139 79,139 79,139 79,139
BB Refinance Scheme for S.M.L of Tk.10 A/C Holders
744,750 - 744,750 -
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
288
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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 Exposure
2,366,415,302 2,216,136,167 2,366,415,302 2,216,136,167
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 Bangladesh Bank
50,452,179,322 54,233,838,116 50,452,179,322 54,233,838,116
Vocational Women's Cr.Scheme Guarantee Fund
256,353 256,353 256,353 256,353
Agricultural Guarantee Against I.D.A. Credit -724 B.D.
19,562,612 19,562,612 19,562,612 19,562,612
Industrial Cr. Guarantee Claims received Fund
1,834,493 1,834,493 1,834,493 1,834,493
Bangladesh Bank Cr.Guarantee Fee I.D.A Cr. - 825 B.D.
178,997 178,997 178,997 178,997
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 Documents Dr.of F.C( NBP)
787,657 787,657 787,657 787,657
Special accounts surplus Proceeds of Import Goods
8,479 8,479 8,479 8,479
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 Development Fund
40,488,334 39,872,211 40,488,334 39,872,211
Rebate A/C of Term Loans to NBFI 350,452 350,452 350,452 350,452
Provison for Other Bank's and Financial Institutions
745,200,000 745,200,000 745,200,000 745,200,000
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 Company SECI
161,720,525 95,940,787 - -
Refinance fund for Milk Product and Artificial Inse. Scheme-RCD
94,755,000 179,402,500 94,755,000 179,402,500
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
Govt. Transaction Settlement Account Credit Balance
18,901,970,230 36,545,050,320 18,901,970,229 36,545,050,320
MCD Loan Settlement Account Credit Balance 1,648,943 1,635,881 1,648,943 1,635,881
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
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 against W.E.R Account
1,886,859 442,226,499 1,886,859 442,226,499
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 -
Mobile Financial Services Link Settlement A/C Credit Balance
4,477 - 4,477 -
Repayable to B.B against Stimulus Fund Received for Worker's Salary ofExport Oriented Industries Under COVID-19
209,805,286 - 209,805,286 -
Interest Suspense Account for COVID-19 888,216,631 - 888,216,631 -
Repayable to B.B for Fund Received UnderAgri. Loan against Special Stimulus RefinanceScheme (RCD) for COVID-19
222,947,000 - 222,947,000 -
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
Islamic Banking Window
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 TRA from Branchs
261,827 4,277,717 261,827 4,277,717
52,847,025,383 43,773,174,855 52,847,025,383 43,773,174,855
Add: Specific Provision (including Islami Win.) made during the year
4,818,078,643 9,243,204,367 4,818,078,643 9,243,204,367
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
Balance at the beginning of the period 5,357,515,747 5,223,300,000 5,357,515,747 5,223,300,000
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
290
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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 COVID-19
1,028,106,037 - 1,028,106,037 -
Sub Total 1,028,106,037 - 1,028,106,037 -
Closing Balance at the end of the period 12,460,267,522 5,357,515,747 12,460,267,522 5,357,515,747
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 7,867,640,160 7,305,465,517 7,844,080,874 7,305,465,517
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 1,441,726,932 3,215,504,321 1,419,094,875 3,194,595,709
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 46,371,874,612 39,945,961,385 46,017,940,866 39,592,954,868
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
Balance at the beginning of the period 2,750,521,610 1,662,832,768 2,667,225,276 1,579,536,434
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 period
1,866,304,803 2,750,521,610 1,783,008,468 2,667,225,276
13.04 Liability for Employees Pension fund
Balance at the beginning of the period 1,733,812,393 1,651,110,416 1,733,812,393 1,651,110,416
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
Closing Balance at the end of the period
1,695,422,274 1,733,812,393 1,695,422,274 1,733,812,393
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Balance at the beginning of the period
9,636,966,300 15,210,314,631 9,636,966,300 15,210,314,631
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
Closing Balance at the end of the period 5,887,013,188 9,636,966,300 5,887,013,188 9,636,966,300
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
Balance at the beginning of the period 5,622,217,457 5,146,922,141 5,535,924,154 5,080,480,345
Less: Adjustment for Excess Provision 453,936 - - -
Less: Payment during the year 33,960,790 4,332,815 - -
Add : Amount transferred during the year
522,384,698 479,628,131 505,975,162 455,443,809
Closing Balance at the end of the period
6,110,187,429 5,622,217,457 6,041,899,316 5,535,924,154
13.07 Provision for Bonus/Ex-gratia
Balance at the beginning of the period 2,180,591,339 2,709,210,700 2,169,769,115 2,698,381,057
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
Closing Balance at the end of the period
2,563,542,979 2,180,591,339 2,551,251,687 2,169,769,115
292
YEAR OF EXCELLENCE
13.08 VOSTRO Accounts Balance
SL. No.
Particulars
As at 31 December 2020
Foreign Currency
FC amount Exchange rate Amount in
Taka
1Myanmar Foreign Trade Bank, Myanmar
EURO 116,456.37 103.87 12,096,661
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
4The Jammu & Kashmir Bank Ltd.
USD 25,158.50 84.80 2,133,468
5Myanmar Investment & Com. Bank
USD 492,400.43 84.80 41,756,098
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
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 100 each
60,000,000,000 60,000,000,000 60,000,000,000 60,000,000,000
14.02 Issued, subscribed and fully paid up Capital
453,000,000 ordinary shares of Taka 100 each
45,300,000,000 45,300,000,000 45,300,000,000 45,300,000,000
The entire amount of the paid up capital has been subscribed by the Government of the People's Republic of Bangladesh but each Director of the Bank is the holder of one symbolic Share of taka one hundred.
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-balance sheet items
634,709,200,000 527,065,900,000 633,601,700,000 526,242,300,000
Required capital @ 10% of risk weighted assets
63,470,920,000 52,706,590,000 63,360,170,000 52,624,230,000
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 and 2)
63,488,556,921 53,002,315,821 63,500,864,681 53,096,407,028
Total capital surplus 17,636,921 295,725,821 140,694,681 472,177,028
CRAR/ CAR Based on Basel-III/ (II) Framework
10.00% 10.06% 10.02% 10.09%
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
14.03.01 Capital requirement Required Held Held Held HeldTier - I (Minimum CET-1 @ 4.5%)
5.5% 7.67% 8.62% 7.68% 8.65%
Tier - II ( Maximum up to 4% of the total RWA or 88.89% of CET-1 whichever is higher applicable from 01 January 2015)
4.5% 2.34% 1.44% 2.34% 1.44%
Total 10.0% 10.00% 10.06% 10.02% 10.09%
Particulars Notes
Amount in Taka
Consolidated Bank
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 sheet exposures
14,826,682,824 7,573,651,914 14,826,682,824 7,573,651,914
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 Fixed Assets, Securities
- 13,008,400,000 - 13,008,400,000
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.
294
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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)
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
A. Eligible Capital :
1. Common Equity Tier 1 (CET1) Capital (Going-concern capital )
48,661,874,097 45,428,663,907 48,674,181,858 45,522,755,114
2. Tier 2 Capital (Gone-concern Capital)
14,826,682,824 7,573,651,914 14,826,682,824 7,573,651,914
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 / B)*100
10.00% 10.06% 10.02% 10.09%
D. Core Capital to RWA (A1 / B)*100 7.67% 8.62% 7.68% 8.65%
E. Supplementary Capital to RWA (A2 / B)*100
2.34% 1.44% 2.34% 1.44%
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
CRAR (Bank) =
CRAR (Consolidated)
= 10.02%
= 10.00%
=
=
Total Eligible Capital
63,488,556,921
63,500,864,681
Credit RWA+Market RWA+Operational RWA
634,709,200,000
633,601,700,000
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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 Finance Secretary, Ministry of Finance
452,999,992 45,299,999,200
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
LR =
LR (Bank) =
= 2.80%
Tier 1 Capital (after relate deductions)
48,674,100,000
Total Exposure (after relate deductions)
1,739,439,072,865
b) Leverage Ratio
LR(Consolidated) =
= 2.80%
48,661,900,000
1,740,609,578,902
LCR =
= 539.08%
Stock of quality liquid assets
630,517,807,000
Total net cash outflows over the next 30 calendar days
116,962,635,400
c) Liquidity Coverage Ratio
=
NSFR =
= 100.45%
=
Available amount of stable funding (ASF)
1,129,975,420
Required amount of stable funding (RSF)
1,124,937,806
d) Net Stable Funding Ratio
296
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
Particulars Notes
Amount in Taka
Consolidated Bank
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 (20% of pre-tax profit )
1,068,429,913 950,619,287 1,068,429,913 950,619,287
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 arising from Vault
15,000,000 - 15,000,000 -
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
Balance at the beginning of the period 72,378,090 70,000,000 72,378,090 70,000,000
Distribution during the Period (18,664,274) (47,621,910) (18,664,274) (47,621,910)
Transfer to Reserve for CSR against COVID-19
30,000,000 - 30,000,000 -
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 Held to Maturity (HTM)
17.01.01 775,886,973 736,054,508 775,886,973 736,054,508
Revaluation Reserve for Held for Trading (HFT)
17.01.02 13,547,474,400 (162,049,450) 13,547,474,400 (162,049,450)
Revaluation Reserve for Remeasured Securities (RMS)
17.01.03 509,170,267 51,242,503 509,170,267 51,242,503
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)
Balance at the beginning of the period 736,054,508 691,732,699 736,054,508 691,732,699
Add: Gain on Revaluation of Gain/(Loss) 39,832,465 44,321,809 39,832,465 44,321,809
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
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 Securities (RMS)
457,927,764 51,242,503 457,927,764 51,242,503
Balance at the end of the period 509,170,267 51,242,503 509,170,267 51,242,503
17.02 Assets Revaluation Reserve
Balance at the beginning of the period 21,495,933,277 21,495,933,277 21,495,933,277 21,495,933,277
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 arising from Vault
(15,000,000) - (15,000,000) -
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
298
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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
Less: Margin - - - -
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
Less: Margin - - - -
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 (Inland Bills)
19.03.01 2,180,377,667 2,747,774,155 2,180,377,667 2,747,774,155
Payable Outside Bangladesh (Foreign Billes)
19.03.02 3,157,626,305 3,838,363,190 3,157,626,305 3,838,363,190
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 - - - -
Overseas Branches 250,648,262 171,911,857 250,648,262 171,911,857
3,157,626,305 3,838,363,190 3,157,626,305 3,838,363,190
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
20.00 Income Statement
Income
Interest, discount and similar income
20.01 72,066,390,142 64,187,715,776 71,956,038,630 64,099,114,208
Commission,Exchange and brokerage
20.02 12,488,534,651 11,785,474,559 12,273,491,482 11,623,395,915
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 assets
795,406,035 582,371,872 793,706,908 580,469,556
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, reverse repo, bonds
40,351,456,620 28,163,434,077 40,289,935,609 28,144,093,706
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, Electricity etc.
1,158,059,570 1,231,231,610 1,110,083,183 1,225,296,579
Legal expenses 36,768,592 41,762,074 34,104,542 41,639,440
Postage, Stamps, Telecommunication etc.
46,261,924 50,996,941 41,150,365 50,890,955
Stationery, Printing, Advertisement etc.
164,967,821 199,160,939 159,106,918 198,967,794
Managing Directors' salary and fees
14,164,947 9,276,394 7,806,871 7,682,635
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 institutions
21.02 4,792,938,993 7,116,634,303 4,788,533,085 7,111,251,645
On Interest received from foreign banks
21.03 58,626,008 50,933,833 58,626,008 50,933,833
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 Branches
27,744,473 26,104,680 27,744,473 26,104,680
33,178,991,571 36,330,246,918 33,130,161,069 36,260,985,721
300
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Less: Interest Income transferred to Interest Suspense A/C
1,464,058,048 305,965,219 1,464,058,048 305,965,219
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 Scheme
686,986,536 540,721,254 686,986,536 540,721,254
On Loan Under SB Agro based Ind. Credit Scheme
196,359,129 292,284,853 196,359,129 292,284,853
On House Building Loan (Govt. Employees)
44,125,194 7,601,639 44,125,194 7,601,639
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 Merchandise (LIM)
16,968,913 18,126,368 16,968,913 18,126,368
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 Bangladesh Biman
1,191,015,017 275,686,259 1,191,015,017 275,686,259
On Investment (Placement of Best Holdings Limited) A/C
500,000,000 23,287,678 500,000,000 23,287,678
On Special Loan - Interest Bearing Advance Rent
6,940,630 7,590,180 6,940,630 7,590,180
On Rural Housing Finance - Sonali Neer A/C
9,216,634 4,676,360 9,216,634 4,676,360
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 COVID-19
337,141,630 - 337,141,630 -
On Agricultural Loan against Concessional Interest Rate against COVID-19
18,719,963 - 18,719,963 -
On Agricultural Loan against Special Stimulus Refinance Scheme for COVID-19
8,561,228 - 8,561,228 -
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
On MCD Loan Under B.B RevolvingRefinance Scheme for COVID-19
34,630 - 34,630 -
On SME Loan Under B.B Revolving Re-Finance Scheme for COVID-19
36,729,713 - 36,729,713 -
On Special Term Loan against Worker's Salary of EOI for COVID-19
140,825 - 140,825 -
On Long term loan at prevailing rate of Interest (SECI)
691,012 835,701 691,012 835,701
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 -Hypo
923,401,305 837,066,924 923,401,305 837,066,924
On Working Capital to Industries -Pledge
63,357,511 153,602,840 63,357,511 153,602,840
On Working Capital to Agro based Ind. -Hypo
526,008,149 547,957,453 526,008,149 547,957,453
On Working Capital to Agro based Ind. -Pledge
44,290,522 86,654,980 44,290,522 86,654,980
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/Documentary-Documentary
11,497,317 15,995,945 11,497,317 15,995,945
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 Other Bank
4,788,533,085 7,111,251,645 4,788,533,085 7,111,251,645
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 Suspense A/c
1,417,200,653 3,194,610,563 1,417,200,653 3,194,610,563
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
302
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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 Account
22.03 - 4,651,915 - 4,651,915
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 Islamic Banking Window
191,275,357 - 191,275,357 -
Interest on Deposit and borrowings of Overseas Branches
26,056,605 21,117,838 26,056,605 21,117,838
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 Bangladesh Bank
843,619,376 213,857,681 843,619,376 213,857,681
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 Fund
653,453 551,429 - -
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Interest Expenses on Lease Liability against IFRS-16
42,566,659 - 42,566,659 -
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 Banking Window
293,506,462 - 293,506,462
Investment Income from Overseas Branches
16,388,995 15,277,243 16,388,995 15,277,243
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 Banking Window
284,088 - 284,088
Commission & Exchange from Overseas Branches
92,621,832 113,096,228 92,621,832 113,096,228
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 Management fees & Other fees
37,296,018 38,996,685 19,783,717 19,256,834
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/TT.Collection
3,985 3,174 3,985 3,174
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
304
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
On Maintenance fees for Different Deposit A/C
826,947,146 - 826,947,146 -
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/Negotiated
8,026,183 16,694,216 8,026,183 16,694,216
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 & Other Allowance)
10,619,296,825 10,421,550,545 10,619,296,825 10,331,093,382
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 - -
Sonali Exchange Co. Inc 65,763,751 67,827,384 - -
Salaries and allowances of Overseas Branches
49,817,004 56,514,376 49,817,004 56,514,376
14,508,321,704 14,055,971,485 14,424,170,475 13,879,889,656
27.00 Rent, Tax, Insurance, Electricity, etc.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
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 - -
Sonali Exchange Co. Inc 42,226,468 37,393,617 - -
Rent, taxes, insurance, electricity etc. of Overseas Branches
9,189,467 11,959,146 9,189,467 11,959,146
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
Sonali Investment Limited 43,000 122,634 - -
Sonali Exchange Co. Inc 2,621,050 2,839,307 - -
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
Sonali Investment Limited 106,875 105,986 - -
Sonali Exchange Co. Inc 5,004,684 5,037,154 - -
Postage, stamps, telecommunication of Overseas Branches
3,589,158 4,525,030 3,589,158 4,525,030
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
Sonali Investment Limited 158,343 193,145 - -
Sonali Exchange Co. Inc 5,702,559 5,644,609 - -
Stationery, printing and advertisement etc. of Overseas Branches
806,720 979,228 806,720 979,228
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 Overseas Branches
3,006,871 2,882,635 3,006,871 2,882,635
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 Investment Limited 244,000 386,600 - -
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.
306
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
33.00 Auditors' fees
Statutory Audit fee 3,450,000 3,090,625 3,450,000 3,090,625
Sonali Investment Limited 73,000 73,000 - -
Sonali Exchange Co. Inc 2,198,300 2,020,080 - -
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
Electric Installation 82,209,383 80,492,141 82,209,383 80,345,147
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
Motor Car & Other Vehicle 65,532,023 58,079,249 64,849,451 57,399,756
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
Computer Software 118,249,609 77,241,979 118,229,609 77,221,979
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 IFRS-16
139,544,848 - 139,544,848 -
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
Sonali Investment Limited 401,411 565,917 - -
Repairs to Bank's Assets of Overseas Branches
191,661 341,063 191,661 341,063
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:
A) Premises (Including Land & Building)
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
Electric Installation 82,209,383 80,492,141 82,209,383 80,345,147
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Motor Car & Other Vehicle 65,532,023 58,079,249 64,849,451 57,399,756
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
Computer Software 118,249,609 77,241,979 118,229,609 77,221,979
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
Sonali Investment Limited 401,411 565,917 - -
Repairs to Bank's Assets of Overseas Branches
191,661 341,063 191,661 341,063
Sub-total 76,766,314 56,503,620 76,364,903 55,937,703
Depreciation on Right of Use against IFRS-16
139,544,848 - 139,544,848 -
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 & Maintenance
33,021,662 33,768,620 33,021,662 33,768,620
Computer Software Repairs & Maintenance
384,875,370 205,855,365 384,257,588 204,802,002
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
308
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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 Executive Car Loan
263,492,662 270,849,374 263,492,662 270,849,374
Fees against Swift, Bankers Almanc etc.
9,946,399 7,962,017 9,946,399 7,962,017
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 & Advances
4,818,078,643 9,243,204,367 4,818,078,643 9,243,204,367
Provision for Unclassified Loans and Advances
7,101,250,494 134,215,747 7,101,250,494 134,215,747
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 Exposure
150,279,135 (166,600,000) 150,279,135 (166,600,000)
Provision for Unreconciled Entries of NOSTRO A/C
- 4,131 - 4,131
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 against Other Banks and NBFIs
- (640,000,000) - (640,000,000)
Provision which no more Required against Rebate on good Borrower
- (28,810,000) - (28,810,000)
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
2020 2019 2020 2019
Provision for Incentive Bonus of Sonali Investment Limited
3,500,000 2,000,000 - -
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
40.00Cash 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 Overseas Branches
(3,589,158) (4,525,030) (3,589,158) (4,525,030)
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 Branches
(191,661) (341,063) (191,661) (341,063)
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 Executive Car Loan
(263,492,662) (270,849,374) (263,492,662) (270,849,374)
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)
310
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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 Repairs & Maintenance
(33,021,662) (33,768,620) (33,021,662) (33,768,620)
Computer Software Repairs & Maintenance
(384,875,370) (205,855,365) (384,257,588) (204,802,002)
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 Expenditure
(50,000,000) (50,000,000) (50,000,000) (50,000,000)
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars Notes
Amount in Taka
Consolidated Bank
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 Recruitment A/C
3,667,193 (39,368,713) 3,667,193 (39,368,713)
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)
Govt. Transaction Settlement Account Debit Balance
355,375,508
(12,718,590,059) 355,375,508 (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 Fluctuation of Biman Loan
(41) - (41) -
Mobile Financial Services Link Settlement Account Debit Balance
(3,301) - (3,301) -
Non-Interest Bearing Blocked Account for COVID-19
(3,471,349,961) - (3,471,349,961) -
Receivable from Govt. Under Savings Cert. Issued to Workers of BJMC
(3,542,199,340) - (3,542,199,340) -
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 Artificial Inse. Scheme-RCD
(84,647,500) (5,240,000) (84,647,500) (5,240,000)
Sirajganj Integrated Rural Development Fund
616,123 622,665 616,123 622,665
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 Bangladesh Bank
(3,781,658,794) 50,575,648,438 (3,781,658,795) 50,575,648,438
B.B Refinance Scheme (200 Core) for Jute Sector
- (192,000,000) - (192,000,000)
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 Source from Salary
(2,373,737) (293,183) (2,373,737) (293,183)
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)
312
YEAR OF EXCELLENCE
Particulars Notes
Amount in Taka
Consolidated Bank
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)
Govt. Transaction Settlement Account Credit Balance
(17,643,080,092) 36,545,050,320 (17,643,080,091) 36,545,050,320
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 against W.E.R Account
(440,339,640) 442,226,499 (440,339,640) 442,226,499
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 -
Mobile Financial Services Link Settlement A/C Credit Balance
4,477 - 4,477 -
Repayable to B.B against Stimulus Fund Received for Worker's COVID-19
209,805,286 - 209,805,286 -
Interest Suspense Account for COVID-19 888,216,631 - 888,216,631 -
Repayable to B.B for Fund Received UnderAgri. Loan against COVID-19
222,947,000 - 222,947,000 -
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) - -
Others liabilities of subsidiary Company SIL
98,172,640 (2,449,420) - -
Others liabilities of subsidiary Company SECI
61,825,803 20,843,341 - -
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 outstanding
44.01 453,000,000 453,000,000 453,000,000 453,000,000
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 outstanding for 365 days (2020)
453,000,000 453,000,000 453,000,000 453,000,000
453,000,000 453,000,000 453,000,000 453,000,000
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
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. No.
Name Status in the
Bank Status with
the committee Educational qualification
1 Mr. A.K.M. Kamrul Islam FCA, FCS Director ChairmanB.Com (Honours) ,M.com
(Accounting), FCA, FCS
2 Mr. Ishtiaque Ahmed Chowdhury Director Member M.A (Political science), L.L.B
3 Dr. Doulatunnaher Khanam Director MemberPh.D (Economics), M.S.C(Economics)
4 Professor Dr. Mohammad Kaykobad Director MemberPh.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
SL. No
Name Status
with the Bank
Name of the firms/Companies in which interested as
proprietor, partner, director, managing agent, guarantor,
employee etc.
Position No. of Shares
1 Mr. Ziaul Hasan Siddiqui Chairman Nil Nil Nil
2 Mr. Md. Fazlul Haque Director Nil Nil Nil
3 Mr. A K M. Kamrul Islam FCA, FCSDirector Mashnoons Limited Chairman 50%
Islam Aftab Karmrul & Co. Chartered Accountants
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
314
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:
Name of the Related Party Related by Status with the Related Party
Transaction Outstanding
Balance (Crore)
Remarks
Government (Note-19.01)Sponsor/Share
holderConcerned Department of the
Government 138.40
Letter of Guarantee
Government (Note-19.02)Sponsor/Share
holderConcerned Department of the
Government 91,803.69
Letter of Credit
Jatio Shanchaya Bureau (Note-9.8)
Sponsor/Share holder
Concerned Department of the Government
1,011.02 PSB/BSP
Encashment
Government (Note-9.8.)Sponsor/Share
holderConcerned Department of the
Government 348.63
Pension bills(Army)
Government (Note: 9.8)Sponsor/Share
holderConcerned Department of the
Government 1,209.00
Pension bills Army (New)
Government (Note: 9.8)Sponsor/Share
holderConcerned Department of the
Government 24.48
Pension bills(Civil)
Bangladesh Power Development Board (PDB)
Sponsor/Share holder
Concerned Department of the Government
5,729.62 Non Funded
Loan
Bangladesh Petroleum Corporation (BPC)
Sponsor/Share holder
Concerned Department of the Government
329.86 Non Funded
Loan
Bangladesh Agricultural Development Corp.(BADC)
Sponsor/Share holder
Concerned Department of the Government
1,553.13 Funded & Non Funded Loan
Bangladesh Sugar & Food Ind. Corp
Sponsor/Share holder
Concerned Department of the Government
4,367.49 Funded Loan
Bangladesh Steel & Engg.Corp. (BSEC)
Sponsor/Share holder
Concerned Department of the Government
38.01 Funded Loan
Electric Generation Company Ltd.
Sponsor/Share holder
Concerned Department of the Government
560.35 Non Funded
Loan
Directorate of Food, Food Ministry
Sponsor/Share holder
Concerned Department of the Government
1,463.60 Funded & Non Funded Loan
Biman Bangladesh Airlines Limited
Sponsor/Share holder
Concerned Department of the Government
5,925.51 Funded Loan
Bangladesh Air Force (Note: 7.07)
Sponsor/Share holder
Concerned Department of the Government
84.98 Non Funded
Loan
Bangladesh Navy (Note: 7.07)
Sponsor/Share holder
Concerned Department of the Government
361.20 Non Funded
Loan
Bangladesh Coast Guard (Note: 7.07)
Sponsor/Share holder
Concerned Department of the Government
394.80 Non Funded
Loan
Bangladesh Chemical Industries Croporation
(BCIC)
Sponsor/Share holder
Concerned Department of the Government
2,632.84 Funded & Non Funded Loan
Bangladesh Railway Sponsor/Share
holderConcerned Department of the
Government 3,199.75
Non Funded Loan
Bangladesh Water Development Board
Sponsor/Share holder
Concerned Department of the Government
566.61 Funded &
Non Funded Loan
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Name of the Related Party Related by Status with the Related Party
Transaction Outstanding
Balance (Crore)
Remarks
Bangladesh Rural Electrification Board (BREC)
Sponsor/Share holder
Concerned Department of the Government
910.00 Non Funded
Loan
B-R Powergen Limited (Note: 7.07)
Sponsor/Share holder
Concerned Department of the Government
164.79 Non Funded
Loan
Department of Gas Transmission Company
Limited (GTCL)
Sponsor/Share holder
Concerned Department of the Government
15.00 Non Funded
Loan
Department of Fire Service & Civil Defense
Sponsor/Share holder
Concerned Department of the Government
3.57 Non Funded
Loan
Department of Disaster Management & Relief
Sponsor/Share holder
Concerned Department of the Government
12.06 Non Funded
Loan
Bangladesh Textile Mills Corporation (BTMC)
Sponsor/Share holder
Concerned Department of the Government
15.10 Funded Loan
Bangladesh BetarSponsor/Share
holderConcerned Department of the
Government 0.56
Non Funded Loan
Wellbown Engineering Pvt.Sponsor/Share
holderConcerned Department of the
Government 0.10
Non Funded Loan
National Board of Revenue (NBR)
Sponsor/Share holder
Concerned Department of the Government
76.09 Non Funded
Loan
Bangladesh Petroleum Exploration & Production
Co. Ltd.(BAPLX)
Sponsor/Share holder
Concerned Department of the Government
68.39 Non Funded
Loan
Eastern Refinery LimitedSponsor/Share
holderConcerned Department of the
Government 230.94
Non Funded Loan
Trading Corporation of Bangladesh(TCB)
Sponsor/Share holder
Concerned Department of the Government
308.60 Funded loan
Dhaka WasaSponsor/Share
holderConcerned Department of the
Government 15.33
Non Funded Loan
Chittagong Port AuthoritySponsor/Share
holderConcerned Department of the
Government 94.63
Non Funded Loan
Bangladesh Standard Control & Testing Institute
(BSTI)
Sponsor/Share holder
Concerned Department of the Government
7.34 Non Funded
Loan
Dhaka UniversitySponsor/Share
holderConcerned Department of the
Government 93.33 Funded Loan
Essential Drug Co. Ltd.Sponsor/Share
holderConcerned Department of the
Government 7.13
Non Funded Loan
Milk VitaSponsor/Share
holderConcerned Department of the
Government 22.98
Non Funded Loan
Bangladesh BankSponsor/Share
holderConcerned Department of the
Government 30.19
Non Funded Loan
Bangladesh Telecommunication Co.Ltd.
(BTCL)
Sponsor/Share holder
Concerned Department of the Government
23.42 Non Funded
Loan
Bangladesh Cable Shilpa Limited
Sponsor/Share holder
Concerned Department of the Government
5.19 Non Funded
Loan
Bangladesh PoliceSponsor/Share
holderConcerned Department of the
Government 14.08
Non Funded Loan
316
YEAR OF EXCELLENCE
Name of the Related Party Related by Status with the Related Party
Transaction Outstanding
Balance (Crore)
Remarks
Central Medical storage DEPO (CMSD)
Sponsor/Share holder
Concerned Department of the Government
4.07 Non Funded
Loan
Karmasangsthan BankSponsor/Share
holderConcerned Department of the
Government 200.00 Funded Loan
Bangladesh Ordinance Factory
Sponsor/Share holder
Concerned Department of the Government
10.87 Non Funded
Loan
Bangladesh Atomic Energy Commission
Sponsor/Share holder
Concerned Department of the Government
70,865.91 Non Funded
Loan
All Directorates & Department (Directorate
General of Defense Purchase-DGDP)
Sponsor/Share holder
Concerned Department of the Government
1,767.42 Non Funded
Loan
Bangladesh Election Commission (BEC)
Sponsor/Share holder
Concerned Department of the Government
291.34 Non Funded
Loan
Bangladesh Jute Mills Corporation (BJMC)
Sponsor/Share holder
Concerned Department of the Government
147.81 Funded Loan
Department of EnvironmentSponsor/Share
holderConcerned Department of the
Government 8.92
Non Funded Loan
Dhaka South City Corporation
Sponsor/Share holder
Concerned Department of the Government
0.08 Non Funded
Loan
Bangladesh Road Transport Corporation (BRTC)
Sponsor/Share holder
Concerned Department of the Government
95.36 Non Funded
Loan
National Telecommunication Monetoring Center
Sponsor/Share holder
Concerned Department of the Government
117.36 Non Funded
Loan
Latif Buwany Jute Mills Ltd.Sponsor/Share
holderConcerned Department of the
Government 0.42
Non Funded Loan
Sher-e-Bangla Agricultural University
Sponsor/Share holder
Concerned Department of the Government
83.74 Funded Loan
Mowlana Bhasani Science & Technology
Sponsor/Share holder
Concerned Department of the Government
30.59 Funded Loan
Sundarban Gas Shilpa Ltd.Sponsor/Share
holderConcerned Department of the
Government 34.96
Non Funded Loan
Sonali Exchange Co. N.Y. (note 9.1)
The Bank Subsidiary Company 8.06 Investment
Sonali Exchange Co. N.Y. (note 7.3.1)
The Bank Subsidiary Company 5.52 Loan
Sonali Investment Ltd. (note 9.1)
The Bank Subsidiary Company 200.00 Investment
Sonali Bank (U.K.) Ltd (note 9.1)
The Bank Subsidiary Company 334.78 Investment
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.
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank LimitedBalance with Bangladesh Bank and its agent bank(s)
and Investment in Government securitiesAs at 31 December 2020
Annexure-A
No. Particulars
Amount in Taka
As per Sonali Bank
As per Bangladesh
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
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.
1.00 Balance with Bangladesh Bank and its agent bank(s)
a) Local Currency
b) Foreign Currency
Particulars Amount in Taka
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
318
YEAR OF EXCELLENCE
b) Held For Trading (HFT)
Treasury Bill
91 days Treasury Bill 91,055,027,918 39,184,435,180
182 days Treasury Bill 12,704,465,250 17,390,316,761
364 days Treasury Bill 31,107,647,317 9,696,068,440
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Son
ali B
ank
Lim
ite
d a
nd
its
Sub
sid
iari
es
Co
nso
lidat
ed
Sch
ed
ule
of
Fixe
d A
sse
tsA
s at
31
Decem
ber
20
20
An
nexu
re -
B
Par
ticu
lars
Co
st/R
eva
luat
ion
De
pre
ciat
ion
/Am
ort
izat
ion
Wri
tte
n d
ow
n
valu
e a
s at
3
1.12
.20
20
Ad
just
ed
o
pe
nin
g b
alan
ce
as a
t 0
1.0
1.2
02
0
Ad
dit
ion
d
uri
ng
th
e
year
De
spo
sals
/ ad
just
me
nts
d
uri
ng
th
e
year
Fore
ign
curr
ency
tr
ansl
atio
n ga
in/(
loss
)
Tota
l b
alan
ce a
s at
3
1.12
.20
20
Rat
e o
f D
ep
. (in
%)
Ad
just
ed
o
pe
nin
g
bal
ance
as
at
01.
01.
20
20
De
spo
sals
/ ad
just
me
nts
d
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ng
th
e
year
Ch
arg
ed
d
uri
ng
th
e
year
Fore
ign
curr
ency
tr
ansl
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n ga
in/(
loss
)
Tota
l b
alan
ce a
s at
3
1.12
.20
20
A)
Pre
mis
es
(In
clu
din
g L
and
& B
uild
ing
)
Pre
mis
es
31,
479
,06
1,8
32
44
4,3
09,5
84
6
87,
60
0
- 3
1,92
2,68
3,81
6 2
.50
4
11,3
53,
62
7 1
19,0
27
44
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2,4
00
-
4
56
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0 3
1,4
66
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6,8
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Bu
ildin
g C
on
stru
ctio
n
72
2,7
59,0
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3
1,0
39,0
69
420
,80
8,33
1 -
33
2,9
89,7
73
-
-
-
-
-
-
33
2,9
89,7
73
Sub
to
tal
32
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1,8
20
,86
7 4
75,3
48
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3 4
21,4
95,
931
-
32,
255,
673,
590
411
,35
3,6
27
119
,02
7 4
4,8
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0
- 4
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,00
0 3
1,79
9,59
6,59
0
B)
De
ad S
tock
Furn
iture
1,1
96
,23
8,5
08
10
4,3
80
,157
8,7
00
,46
8
-
1,29
1,91
8,19
7 1
0.0
0 7
02
,36
6,5
68
7
,03
0,1
36
6
9,6
38
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3
16
1 7
64
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,29
6
52
6,9
42
,90
2
Ele
ctr
ic In
stal
latio
n 1
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4,3
01,
411
9
9,0
39,5
43
17,
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3,0
96
-
1,1
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20
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76
6,1
89,4
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,876
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114
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4,2
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17
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8,8
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24,9
92
20
.00
1,7
34,8
27,0
62
12
,48
4,0
90
19
5,75
9,4
98
3
23
1,9
18,1
02
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4
35
5,6
22
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8
Typ
e W
rite
r M
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5,6
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90
9
-
5,6
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5
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9,8
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-
5
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7,8
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1
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Mo
tor
Car
& O
ther
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icle
43
9,6
37,
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8
20
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2
87,
572
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rary
12
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9,8
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2,5
53,
60
8
7.0
0
4,9
58
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7 -
5
95,
90
2
-
5,5
54
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9
6,9
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to
tal
4,8
74,6
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9 5
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0,3
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98
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3
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3
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35
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2
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17,7
11 1
,450
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5,58
6
Tota
l (A
+B
) 3
7,0
76,4
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7 9
81,
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4,6
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7,58
5,89
6,88
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,636
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35
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0,7
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8,6
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2
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4,3
35,8
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3,25
0,0
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176
C)
De
ad S
tock
of
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rse
as B
ran
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s
Ko
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ch
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-
-
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5
48
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Sub
to
tal
24
,26
2,3
46
6
30
,10
4
-
-
24
,89
2,4
50
1
7,5
14,8
62
-
2
,19
9,1
85
-
1
9,7
14,0
47
5,1
78,4
03
D)
Inta
ng
ible
Ass
ets
Co
mp
ute
r So
ftw
are
553,
33
3,0
32
6
4,5
32
,99
6
26
2,2
69
-
617
,60
3,76
0
20
.00
256
,30
5,0
06
1
76,9
41
118
,24
9,6
09
-
3
74,3
77,6
75
24
3,2
26
,08
6
Sub
to
tal
55
3,3
33
,03
2
64
,53
2,9
96
2
62
,26
9
- 6
17,6
03
,76
0
25
6,3
05
,00
6
176
,94
1 1
18,2
49
,60
9
-
374
,377
,675
2
43
,22
6,0
86
E)
Rig
ht
of
Use
Ass
ets
Rig
ht
of
Use
Ass
ets
- 5
33,
674
,324
11
,76
6,7
65
- 52
1,9
07,
559
-
11
,76
6,7
65
13
9,5
44
,84
8
-
12
7,77
8,0
82
3
94
,12
9,4
77
Sub
to
tal
- 5
33
,674
,32
4 1
1,76
6,7
65
-
52
1,9
07,
55
9
- 1
1,76
6,7
65
13
9,5
44
,84
8
-
127,
778
,08
2
39
4,1
29
,477
Bala
nce
as a
t 31
D
ecem
ber 2
020
37,6
54,0
77,2
45
1,58
0,14
6,45
5 48
3,92
3,64
7 6
02 3
8,75
0,30
0,65
5 4,
186,
456,
744
47,
334,
468
718
,639
,720
2
,518
4,
857,7
64,5
15
33,8
92,5
36,1
41
Bala
nce
as a
t 31
Dec
embe
r 201
937
,104
,770
,137
71
5,50
7,56
0 15
6,14
5,11
5 1
8,93
2 3
7,66
4,15
1,51
4 3,
724,
756,
676
54,3
00,4
49
525
,868
,252
7
,633
4,
196,
332,
112
33,4
67,8
19,4
02
320
YEAR OF EXCELLENCE
Son
ali B
ank
Lim
ite
dSc
he
du
le o
f Fi
xed
Ass
ets
As
at 3
1 D
ecem
ber
20
20
An
nexu
re -
C
Par
ticu
lars
Co
st/R
eva
luat
ion
De
pre
ciat
ion
/Am
ort
izat
ion
Wri
tte
n d
ow
n
valu
e a
s at
3
1.12
.20
20
Ad
just
ed
op
en
ing
b
alan
ce a
s at
0
1.0
1.2
02
0
Ad
dit
ion
d
uri
ng
th
e
year
De
spo
sals
/ ad
just
me
nts
d
uri
ng
th
e
year
Tota
l b
alan
ce a
s at
3
1.12
.20
20
Rat
e o
f D
ep
. (in
%)
Ad
just
ed
o
pe
nin
g
bal
ance
as
at
01.
01.
20
20
De
spo
sals
/ ad
just
me
nts
d
uri
ng
th
e
year
Ch
arg
ed
d
uri
ng
th
e y
ear
Tota
l b
alan
ce a
s at
3
1.12
.20
20
A)
Pre
mis
es
(In
clu
din
g L
and
& B
uild
ing
)
Pre
mis
es
31,
479
,06
1,8
32
4
44
,30
9,5
84
6
87,
60
0 3
1,92
2,68
3,81
6 2
.50
4
11,3
53,
62
7 1
19,0
27
44
,84
2,4
00
4
56
,077
,00
0
31,4
66
,60
6,8
17
Bu
ildin
g C
on
stru
ctio
n 7
22
,759,0
36
3
1,0
39,0
69
4
20,8
08,
331
33
2,9
89,7
74
-
-
-
-
-
33
2,9
89,7
74
Sub
to
tal
32
,20
1,8
20
,86
8
475
,34
8,6
53
4
21,4
95,
931
32,
255,
673,
590
411
,35
3,6
27
119
,02
7 4
4,8
42
,40
0
45
6,0
77,0
00
31
,79
9,59
6,59
1
B)
De
ad S
tock
Furn
iture
1,1
82
,62
3,54
6
10
4,2
58
,78
7 8
,30
3,18
4 1
,278
,579
,14
9
10
.00
6
89,2
49,6
52
6
,674
,52
0
69,3
74,6
42
7
51,
94
9,7
74
52
6,6
29,3
76
Ele
ctr
ic In
stal
latio
n 1
,04
1,58
6,8
39
9
9,0
39,5
43
1
2,3
12,6
26
1,
128
,313
,756
2
0.0
0
76
3,4
74,8
91
6,5
28
,40
6
82
,20
9,3
83
8
39,1
55,
86
8
28
9,1
57,
88
8
Co
mp
ute
r H
ard
war
e 2
,15
6,5
38
,02
6
114
,49
1,6
17
17,
68
8,5
66
2,2
53,3
41,
077
2
0.0
0
1,71
5,13
1,8
72
12
,44
3,8
03
1
95,
42
8,4
15
1,8
98
,116
,48
4
35
5,2
24,5
94
Typ
e W
rite
r M
ach
ine
5,6
11,0
14
-
90
9
5,6
10,1
05
20
.00
5
,36
9,8
12
10
3
68
,171
5
,43
7,8
80
1
72,2
25
Mo
tor
Car
& O
ther
Veh
icle
410
,176
,13
8
18
7,4
06
,54
2
6,9
25,
357
59
0,6
57,
32
3
20
.00
2
59,3
15,9
98
4
,49
8,5
30
6
4,8
49,4
51
319
,66
6,9
19
270
,99
0,4
04
Lib
rary
12
,113
,76
6
43
9,8
42
-
1
2,5
53,
60
8
7.0
0
4,9
58
,18
6
-
59
5,9
02
5
,55
4,0
88
6
,99
9,5
20
Sub
to
tal
4,8
08
,64
9,3
29
50
5,6
36
,33
2
45
,23
0,6
42
5,2
69,0
55,0
19
3,4
37,5
00,4
11
30
,14
5,3
62
4
12,5
25
,96
3
3,8
19,8
81,
012
1
,44
9,17
4,0
07
Tota
l (A
+B
) 3
7,0
10,4
70,1
97
98
0,9
84,
98
5 4
66,
726,
573
37,5
24,7
28,6
09
3,84
8,85
4,03
8 3
0,2
64
,38
9
45
7,3
68
,36
3
4,2
75,9
58,0
12
33,2
48,
770
,597
C)
De
ad S
tock
of
ove
rse
as B
ran
che
s
Ko
lkat
a B
ran
ch
21,
53
1,72
6
53
9,6
15
-
22
,071
,34
1 1
5,4
16,6
36
-
2
,024
,59
2
17,
44
1,2
28
4
,63
0,1
14
Silig
uri
Bra
nch
2,7
30
,62
0
90
,48
9
-
2,8
21,
109
2
,09
8,2
26
-
1
74,5
93
2
,272
,819
5
48
,28
9
Sub
to
tal
24
,26
2,3
46
6
30
,10
4
-
24
,89
2,4
50
1
7,5
14,8
62
-
2
,19
9,1
85
1
9,7
14,0
47
5,1
78,4
03
D)
Inta
ng
ible
Ass
ets
Co
mp
ute
r So
ftw
are
54
8,6
87,
69
7 6
4,5
32
,99
6
26
2,2
69
612
,95
8,4
25
2
0.0
0
25
1,6
89
,670
1
76,9
41
118
,22
9,6
09
3
69
,74
2,3
39
2
43
,216
,08
6
Sub
to
tal
54
8,6
87,
69
7 6
4,5
32
,99
6
26
2,2
69
612
,95
8,4
25
2
51,
68
9,6
70
176
,94
1 1
18,2
29
,60
9
36
9,7
42
,33
9
24
3,2
16,0
86
E)
Rig
ht
of
Use
Ass
ets
Rig
ht
of
Use
Ass
ets
-
53
3,6
74,3
24
11,
766
,76
5
52
1,9
07,
559
-
1
1,76
6,7
65
1
39,5
44
,84
8
12
7,77
8,0
83
3
94,
129,
476
Sub
to
tal
-
53
3,6
74,3
24
11,
766
,76
5
521
,907
,559
-
1
1,76
6,7
65
1
39,5
44
,84
8
12
7,77
8,0
83
3
94,
129,
476
Bal
ance
as
at 3
1
De
cem
be
r 2
02
0 3
7,5
83
,42
0,2
40
1
,579
,822
,409
4
78,7
55,6
07 3
8,68
4,48
7,04
2 -
4
,118
,058
,570
4
2,2
08
,09
5
717
,34
2,0
05
4,
793,
192,
48
0
33,8
91,
294,
563
Bal
ance
as
at 3
1
De
cem
be
r 2
019
37,
02
0,0
02
,93
9
715
,34
5,7
99
15
6,1
22
,474
37,
579,
226,
264
3,64
3,42
6,66
0 5
4,2
92
,816
5
24
,53
1,8
54
4
,113
,66
5,6
98
33
,46
5,56
0,5
66
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Son
ali B
ank
Lim
ite
d a
nd
its
Sub
sid
iari
es
Co
nso
lidat
ed
Sch
ed
ule
of
Fixe
d A
sse
ts o
n C
ost
Bas
isA
s at
31
Decem
ber
20
20
An
nexu
re -
D
Par
ticu
lars
Co
st/R
eva
luat
ion
De
pre
ciat
ion
/Am
ort
izat
ion
Wri
tte
n d
ow
n
valu
e a
s at
3
1.12
.20
20
Ad
just
ed
o
pe
nin
g b
alan
ce
as a
t 0
1.0
1.2
02
0
Ad
dit
ion
d
uri
ng
th
e
year
De
spo
sals
/ ad
just
me
nts
d
uri
ng
th
e
year
Fore
ign
curr
ency
tr
ansl
atio
n ga
in/(
loss
)
Tota
l b
alan
ce a
s at
3
1.12
.20
20
Rat
e o
f D
ep
. in
%)
Ad
just
ed
o
pe
nin
g
bal
ance
as
at
01.
01.
20
20
De
spo
sals
/ ad
just
me
nts
d
uri
ng
th
e
year
Ch
arg
ed
d
uri
ng
th
e
year
Fore
ign
curr
ency
tr
ansl
atio
n ga
in/(
loss
)
Tota
l b
alan
ce a
s at
3
1.12
.20
20
A)
Pre
mis
es
(In
clu
din
g L
and
& B
uild
ing
)
Pre
mis
es
1,4
19,3
33,
147
44
4,3
09,5
84
-
-
1
,863
,642
,731
2
.50
3
14,2
01,
89
6
-
37,
89
5,6
63
-
3
52
,09
7,5
59
1
,511
,54
5,17
3
Bu
ildin
g C
on
stru
ctio
n
72
2,7
59,0
36
3
1,0
39,0
69
420
,80
8,33
1 -
33
2,9
89,7
73
-
-
-
-
-
-
33
2,9
89,7
73
Sub
to
tal
2,1
42
,09
2,1
83
475
,34
8,6
53
420
,80
8,33
1 -
2,
196,
632,
505
314
,20
1,8
96
-
3
7,8
95
,66
3
-
35
2,0
97,
55
9
1,8
44,
534,
94
6
B)
De
ad S
tock
Furn
iture
1,1
96
,23
8,5
08
10
4,3
80
,157
8,7
00
,46
8
-
1,29
1,91
8,19
7 1
0.0
0 7
02
,36
6,5
68
7
,03
0,1
36
6
9,6
38
,70
3
16
1 7
64
,975
,29
6
52
6,9
42
,90
2
Ele
ctr
ic In
stal
latio
n 1
,04
4,3
01,
411
9
9,0
39,5
43
17,
04
3,0
96
-
1,1
26,2
97,8
58
20
.00
76
6,1
89,4
24
11,2
58
,876
8
2,2
09,3
83
-
8
37,
139,9
31
28
9,1
57,
92
7
Co
mp
ute
r H
ard
war
e 2
,176
,758
,94
8
114
,69
4,2
94
17
,72
8,8
53
6
02
2,2
73,7
24,9
92
20
.00
1,7
34,8
27,0
62
12
,48
4,0
90
19
5,75
9,4
98
3
23
1,9
18,1
02
,79
4
35
5,6
22
,19
8
Typ
e W
rite
r M
ach
ine
5,6
11,0
14
-
90
9
-
5,6
10,1
05
20
.00
5
,36
9,8
12
10
3
68
,171
-
5
,43
7,8
80
1
72,2
25
Mo
tor
Car
& O
ther
Veh
icle
43
9,6
37,
35
3
187,
40
6,5
42
6
,92
5,3
57
- 6
20
,118
,53
8
20
.00
2
87,
572
,19
5
4,4
98
,53
0
65,
53
2,0
23
2
,03
4 3
48
,60
7,72
3
271
,510
,815
Lib
rary
12
,113
,76
6
43
9,8
42
-
-
1
2,5
53,
60
8
7.0
0
4,9
58
,18
7 -
5
95,
90
2
-
5,5
54
,08
9
6,9
99,5
19
Sub
to
tal
4,8
74,6
60
,99
9 5
05
,96
0,3
78 5
0,3
98
,68
3
60
2 5
,330
,223
,297
3
,501
,283
,249
35
,271
,73
5 4
13,8
03
,679
2
,518
3,8
79,8
17,7
11 1
,450
,40
5,58
6
Tota
l (A
+B
) 7
,016
,75
3,1
82
98
1,3
09
,03
2 4
71,2
07,
014
6
02
7,
526,
855,
802
3,8
15,4
85,1
45 3
5,2
71,7
35
4
51,
69
9,3
41
2,5
18 4
,231
,915
,270
3,
294,
940
,532
C)
De
ad S
tock
of
ove
rse
as B
ran
che
s
Ko
lkat
a B
ran
ch
21,
53
1,72
6
53
9,6
15
-
-
22
,071
,34
1 1
5,4
16,6
36
-
2
,024
,59
2
-
17,
44
1,2
28
4
,63
0,1
14
Silig
uri
Bra
nch
2,7
30
,62
0
90
,48
9
-
-
2,8
21,
109
2
,09
8,2
26
-
1
74,5
93
-
2
,272
,819
5
48
,28
9
Sub
to
tal
24
,26
2,3
46
6
30
,10
4
-
-
24
,89
2,4
50
1
7,5
14,8
62
-
2
,19
9,1
85
-
1
9,7
14,0
47
5,1
78,4
03
D)
Inta
ng
ible
Ass
ets
Co
mp
ute
r So
ftw
are
553,
33
3,0
32
6
4,5
32
,99
6
26
2,2
69
-
617
,60
3,76
0
20
.00
256
,30
5,0
06
1
76,9
41
118
,24
9,6
09
-
3
74,3
77,6
74
24
3,2
26
,08
6
Sub
to
tal
55
3,3
33
,03
2
64
,53
2,9
96
2
62
,26
9
- 6
17,6
03
,76
0
20
25
6,3
05
,00
6
176
,94
1 1
18,2
49
,60
9
-
374
,377
,674
2
43
,22
6,0
86
Bal
ance
as
at 3
1 D
ece
mb
er
20
20
7,5
94
,34
8,5
60
1,0
46,4
72,1
32 4
71,4
69,2
83
60
2 8
,169
,352
,012
2
0 4
,089
,30
5,0
13 3
5,4
48
,676
5
72,1
48
,13
5
2,5
18 4
,626
,00
6,9
91
3,5
43
,34
5,0
21
Bal
ance
as
at 3
1 D
ece
mb
er
20
19 7
,04
5,0
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322
YEAR OF EXCELLENCE
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611
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank LimitedSchedule of Tax PositionAs at 31 December 2020
Annexure-FTax 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
Income Year
Assessment Year
Tax Provision as per
Accounts
Assessment made by
Present StatusAssessed Tax
Liabilities Payment of
Total Tax Refundable/
(Payable)Remarks
1992 1993-94 Nil DCT Settled Nil 97,895,171 - Adjusted as
Demanded Tax
1993 1994-95 Nil DCT Settled Nil 118,229,244 - Adjusted as
Demanded Tax
1994 1995-96 Nil DCT Settled Nil 107,843,437 - Adjusted as
Demanded Tax
1995 1996-97 Nil DCT Settled Nil 327,047,412 - Adjusted as
Demanded Tax
1996 1997-98 Nil DCTReference Application to
the High CourtNil 359,391,548 -
Adjusted as Demanded Tax
1997 1998-99 Nil DCTReference Application to
the High CourtNil 368,350,061 -
Adjusted as Demanded Tax
1998 1999-2000 Nil DCTReference Application to
the High CourtNil 442,119,323 424,971,176 Refundable
1999 2000-01 Nil DCT Settled Nil 600,818,273 600,818,273 Refundable
2000 2001-02 Nil DCTReference Application to
the High CourtNil 870,418,795 -
Adjusted as Demanded Tax
2001 2002-03 Nil DCTReference Application to
the High CourtNil 1,135,489,757 1,135,489,757 Refundable
2002 2003-04 Nil DCTReference Application to
the High Court89,85,21,314 712,587,221 (185,934,093) Payable
2003 2004-05 Nil DCTReference Application to
the High Court241,46,10,301 588,000,560 (1,826,609,741) Payable
2004 2005-06 Nil DCTReference Application to
the High CourtNil 518,028,392 27,46,73,831 Refundable
2005 2006-07 Nil DCTReference Application to
the High Court378,072,785 438,169,963 60,097,178 Refundable
2006 2007-08 Nil DCTReference Application to
the High Court170,34,73,454 538,154,625 (1,266,536,541) Payable
2007 2008-09 Nil DCTReference Application to
the High Court201,08,03,744 1,218,137,968 (75,27,63,573) Payable
2008 2009-10 Nil DCTReference Application to
the High Court.216,74,91,869 889,421,612 (132,53,29,527) Payable
2009 2010-11 Nil DCTReference Application to
the High Court3,704,472,179 63,51,59,113 (254,00,43,944) Payable
2010 2011-12 Nil DCTReference Application to
the High Court 4,116,848,042 1,118,523,981 (339,21,46,471) Payable
2011 2012-13 Nil DCTReference Application to
the High Court5,836,848,604 1,368,957,252 (508,32,62,792) Payable
2012 2013-14 Nil DCTReference Application to
the High Court 3,306,474,128 1,459,284,890 (207,08,46,597) Payable
2013 2014-15 Nil DCTReference Application to
the High Court4,030,826,003 1,524,975,830 (2,869,107,823) Payable
2014 2015-16 199,401,664 DCT Reference Application to
the High Court 927,786,216 2,688,870,549 176,10,84,333 Refundable
2015 2016-17 197,184,155 DCT Reference Application to
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) Payable2017 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
324
YEAR OF EXCELLENCE
Sonali Bank LimitedStatement of Non-Income Generating Other AssetsAs at 31 December 2020
Annexure-G
Particulars2020Taka
2019Taka
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
Retirement Benefit 3,542,199,340 -
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Sonali Bank LimitedInvestment in Shares (Quoted and Unquoted)As at 31 December 2020
Annexure -H
Particulars No. of Shares Cost Value Per
Share Total Cost Value
Market Price per Share
Total Market 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
326
YEAR OF EXCELLENCE
Particulars No. of Shares Cost Value Per
Share Total Cost Value
Market Price per Share
Total Market Value
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars No. of Shares Cost Value Per
Share Total Cost Value
Market Price per Share
Total Market Value
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
328
YEAR OF EXCELLENCE
Particulars No. of Shares Cost Value Per
Share Total Cost Value
Market Price per Share
Total Market Value
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
FINANCIAL STATEMENTS OF SBL
Annual Report 2020
Particulars No. of Shares Cost Value Per
Share Total Cost Value
Market Price per Share
Total Market Value
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
330
YEAR OF EXCELLENCE
Sonali Bank LimitedHighlights on the Overall Activities
For the year ended 31 December 2020
Annexure - I
SL.No.
Particulars2020Taka
2019Taka
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
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Opinion
We have audited the consolidated financial statements of Sonali Bank Limited and its subsidiaries (the “Group”) as well as the separate financial statements of Sonali Bank Limited (the “Bank”), which comprise the consolidated and separate balance sheets as at 31 December 2020 and the consolidated and separate profit and loss accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flows statement for the year then ended, and notes to the consolidated and separate financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank give a true and fair view of the consolidated financial position of the Group and the separate financial position of the Bank as at 31 December 2020, and of its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as explained in note 2.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group and the Bank in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank, and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Group and also separate financial statements of the Bank in accordance with IFRSs as explained in note 2, and for such internal control as management determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 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.
In preparing the consolidated and separate financial statements, management is responsible for assessing the Group’s and the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group and the Bank or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether
AUDITOR’S REPORT TO THE SHAREHOLDERS OF SONALI INVESTMENT LIMITED
332
YEAR OF EXCELLENCE
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
z Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
z Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the Group’s internal control.
z Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
z Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Bank’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Bank to cease to continue as a going concern.
z Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Report on other Legal and Regulatory
Requirements
In accordance with the Companies Act, 1994, we also report the following:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it appeared from our examination of those books;
c) the statements of’financial position and statement of profit or loss and other comprehensive income dealt with by the report are in agreement with the books of accounts.
Firm’s Name : Anil Salam Idris & Co., Chartered Accountants
Firm’s Registration No. : 1/1/ICAB-2016(1)
Signature :
Date: 25 May,2021
Engagement Partner Name : Abdus Salam, FCA
ICAB Enrolment No : 0289
DVC Number : 2105250289AS574589
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Sonali Investment LimitedStatement of Financial positionAs at 31 December 2020
Particulars Notes Amount in Taka
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.
Signed in terms of our separate report of even date annexed.
Firm’s Name : Anil Salam Idris & Co., Chartered Accountants
Firm’s Registration No. : 1/1/ICAB-2016(1)
Signature :
Date: 25 May,2021
Engagement Partner Name : Abdus Salam, FCA
ICAB Enrolment No : 0289
DVC Number : 2105250289AS574589
Chief Executive Officer Director Chairman
334
YEAR OF EXCELLENCE
Sonali Investment LimitedStatement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2020
Particulars Notes Amount in Taka
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
Signed in terms of our separate report of even date annexed.
The annexed notes I to 44 form an integral part of these financial
Chief Executive Officer Director Chairman
Firm’s Name : Anil Salam Idris & Co., Chartered Accountants
Firm’s Registration No. : 1/1/ICAB-2016(1)
Signature :
Date: 25 May,2021
Engagement Partner Name : Abdus Salam, FCA
ICAB Enrolment No : 0289
DVC Number : 2105250289AS574589
Chief Executive Officer Director Chairman
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Sonali Investment LimitedStatement of Changes in Equity
For the year ended 31 December 2020
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
For the year ended 31 December 2019
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
336
YEAR OF EXCELLENCE
Sonali Investment LimitedStatement of Cash Flows
For the year ended 31 December 2020
Particulars Notes Amount in Taka
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
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Sonali Investment LimitedNotes to the Financial Statements
For the year ended 31 December 2020
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.
338
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.
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
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.
340
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.
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Particulars Amount in Taka
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
342
YEAR OF EXCELLENCE
Particulars Amount in Taka
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
Name of the share holders
Designation
2020 2019
No of shares Percentage of total share
holdings
Amount in Taka
No of shares
Percentage of total share
holdings
Amount in Taka
Mr. Ziaul Hasan SiddiqueDirector and
Chairman1 0.0000005% 10 1 0.0000005% 10
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 Mr. Suvash Chandra Das
Shareholder 1 0.0000005% 10 1 0.0000005% 10
Sonali Bank Ltd. Represented by Mr. Md. Ataur Rahman Prodhan
Shareholder 199,999,996 99.9999995% 1,999,999,960 199,999,996 99.9999980% 1,999,999,960
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
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Particulars Amount in Taka
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 -
344
YEAR OF EXCELLENCE
Particulars Amount in Taka
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 Investors
(22,632,057) (20,908,612)
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
Add: Provision made during the year 15,810,664 23,987,448
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
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Particulars Amount in Taka
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 & AC
353,850 52,750
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
346
YEAR OF EXCELLENCE
Particulars Amount in Taka
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 & Intranet bill)
617,782 1,053,364
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
Add: Provision made during the year 1,070,611 1,143,095
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 parties
Relationship Types of transactionsTransaction
During the year Transaction
During the year
Sonali Bank Limited Holding CompanyLong term borrowing 176,502,933 -
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 Account)
12,967,236 (2,262,397)
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Particulars Amount in Taka
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.
The Company has submitted Income Tax Return for the year 2013 to DCT showing total income of Tk 45,917,087 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.
348
YEAR OF EXCELLENCE
The Company has submitted Income Tax Return for the year 2014 to DCT showing total income of Tk 52,841,544 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.
The Company has submitted Income Tax Return for the year 2015 to DCT showing total income of Tk 16,043,178 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.
The Company has submitted Income Tax Return for the year 2017 to DCT showing total income of Tk. 124,396,828 and payable Tax of Tk. 33,960,790. Tax amounting Tk. 33,960,790 has been paid before submission of the said 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.
The Company has submitted Income Tax Return for the year 2018 to DCT showing total income of Tk. 83,408,142 and payable Tax of Tk. 28,440,912. Tax amounting Tk. 28,440,912 has been paid before submission of the said Return.
The Company has submitted Income Tax Return for the year 2019 to DCT showing total income of Tk. 75,747,087 and payable Tax of Tk. 24,492,154. Tax amounting Tk. 24,492,154 has been paid before submission of the said 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.
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Son
ali I
nve
stm
en
t Li
mit
ed
Sch
ed
ule
of
Fixe
d A
sse
ts
As
at 3
1 D
ecem
ber
20
20
An
nexu
re -
A
Sl.
No
.C
ate
go
ry o
f A
sse
ts
Co
st
D
ep
reci
atio
n
Wri
tte
n d
ow
n v
alu
e
Op
en
ing
b
alan
ce a
s o
n 0
1.0
1.2
0
Pu
rch
ase
d
du
rin
g t
he
ye
ar
Dis
po
sal
du
rin
g t
he
ye
ar
Tota
l as
on
3
1.12
.20
20
Rat
eO
pe
nin
g
bal
ance
Ch
arg
ed
d
uri
ng
th
e
year
Ad
just
me
nt
for
Dis
po
sal A
sse
tsTo
tal a
s o
n
31.
12.2
02
0 A
s o
n
3
1.12
.20
20
As
on
31.
12.2
019
12
34
5=
(2+
3-4
)6
78
910
=(7
+8
-9)
11=
(5-1
0)
12
1Fu
rnitu
re &
Fix
ture
2,1
36
,58
6
12
1,3
70
39
7,2
84
1
,86
0,6
72
10%
1,7
73,4
14
210
,20
3
35
5,6
16
1,6
28
,00
1 2
32
,671
3
63,
172
2C
om
pu
ter
& A
ccess
ori
es
5,5
32
,89
6
-
40
,28
7 5
,49
2,6
09
2
0%
5,1
72,5
50
2
22
,60
5
40
,28
7 5
,35
4,8
68
1
37,
741
36
0,3
46
3M
oto
r V
eh
icle
5,0
00
,00
0
-
-
5,0
00
,00
0
20
% 4
,99
9,9
99
-
-
4
,99
9,9
99
1
1
4O
ffice E
qu
ipm
en
t 3
96
,54
3
-
-
39
6,5
43
2
0%
39
6,5
27
-
-
39
6,5
27
16
1
6
5A
ir C
on
diti
on
er
&
Gen
era
tor
6,7
32
,124
-
2
,08
8,3
56
4
,64
3,76
8
20
% 6
,73
2,1
03
-
2
,08
8,3
56
4
,64
3,74
7 2
1 2
1
6A
pp
licat
ion
of
So
ftw
are
2,9
17,6
00
-
-
2
,917
,60
0
20
% 2
,88
7,6
00
2
0,0
00
-
2
,90
7,6
00
1
0,0
00
3
0,0
00
7In
teri
or
Deco
ratio
n 3
,06
2,1
14
-
2,6
42
,114
4
20
,00
0
20
% 3
,06
2,1
12
-
2,6
42
,114
4
19,9
98
2
2
Tota
l A
sse
ts 2
5,7
77,8
63
1
21,
370
5
,16
8,0
41
20
,73
1,19
2
25,
024
,30
5 4
52
,80
8
5,1
26
,373
2
0,3
50
,74
0
38
0,4
52
7
53
,55
8
350
YEAR OF EXCELLENCE
Son
ali I
nve
stm
en
t Li
mit
ed
Po
rtfo
lio o
f In
vest
me
nt
in S
har
es
As
at 3
1 D
ecem
ber
20
20
An
nexu
re-B
Sl. N
o.
Co
mp
any
Nam
e
Co
st o
f In
vest
me
nt
Mar
ket
Val
ue
of
Inve
stm
en
t
Un
real
ize
d
Gai
n/L
oss
(T
k)N
o o
f Sh
are
H
eld
Co
st p
er
Sh
are
(T
k)C
ost
of
In
vest
me
nt
(Tk)
No
of
Shar
e
He
ldM
arke
t P
rice
p
er
Shar
e (
Tk)
Mar
ket
Val
ue
of
Inve
stm
en
t (T
k)
A. M
arg
inab
le S
har
e :
1A
CI F
orm
ula
tion
s Lt
d.
50
,00
02
10.2
2 1
0,5
10,9
80
50
,00
011
8.1
05,
90
5,0
00
(4
,60
5,9
80
)
2A
CI L
TD
27,
98
224
3.17
6,8
04
,33
4
27,
98
224
6.0
06
,88
3,6
21
79,2
88
3A
dve
nt
Ph
arm
a Li
mite
d2
2,0
00
22
.40
49
2,9
01
22
,00
02
2.8
05
01,
60
0
8,6
99
4A
ftab
Au
tom
ob
iles
124
,779
50
.13
6,2
55,
42
1 12
4,7
792
6.7
03,
33
1,5
99
(2
,92
3,8
22
)
5A
pex
Foo
twear
Lim
ited
11,1
722
37.
55
2,6
53,
86
2
11,1
722
20
.30
2,4
61,
192
(1
92
,670
)
6A
rgo
n D
en
ims
Lim
ited
180
,79
62
2.6
7 4
,09
9,3
76
180
,79
619
.70
3,5
61,
68
8
(53
7,6
88
)
7B
ank
Asi
a3
5,0
00
19.1
3 6
69,5
78
35,
00
018
.20
63
7,0
00
(3
2,5
78)
8B
ash
un
dh
ara
Pap
er
Mill
s Lt
d.
44
,69
98
1.0
6 3
,62
3,4
31
44
,69
94
4.4
01,
98
4,6
36
(1
,63
8,7
95
)
9B
ay L
eas
ing
& In
v.Lt
d.
130
,76
454
.67
7,1
49,0
06
13
0,7
64
22
.70
2,9
68
,35
1 (4
,18
0,6
55
)
10B
BS
Cab
les
Ltd
.54
,450
70.5
1 3
,83
9,0
46
54
,450
54
.80
2,9
83,
86
0
(85
5,18
6)
11B
RA
C B
ank
Ltd
.2
3,6
50
59.3
8 1
,40
4,3
82
2
3,6
50
44
.30
1,0
47,
69
5
(35
6,6
87)
12B
SRM
Lim
ited
42
,32
68
8.7
0 3
,754
,48
6
42
,32
66
0.2
02
,54
8,0
25
(1
,20
6,4
60
)
13B
SRM
Ste
els
Ltd
.13
1,4
50
90
.35
11,
876
,36
3
131,
450
42
.50
5,5
86
,62
5
(6,2
89,7
38
)
14C
on
fiden
ce C
em
en
t3
0,8
37
154
.52
4,7
65,
08
4
30
,83
712
1.3
03,
740
,52
8
(1,0
24,5
56
)
15D
BH
Fin
ance C
orp
. Lim
ited
11,5
00
100
.12
1,1
51,
34
4
11,5
00
92
.60
1,0
64
,90
0
(86
,44
4)
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Sl. N
o.
Co
mp
any
Nam
e
Co
st o
f In
vest
me
nt
Mar
ket
Val
ue
of
Inve
stm
en
t
Un
real
ize
d
Gai
n/L
oss
(T
k)N
o o
f Sh
are
H
eld
Co
st p
er
Sh
are
(T
k)C
ost
of
In
vest
me
nt
(Tk)
No
of
Shar
e
He
ldM
arke
t P
rice
p
er
Shar
e (
Tk)
Mar
ket
Val
ue
of
Inve
stm
en
t (T
k)
16D
ESC
O3
5,0
00
38
.46
1,3
45,
99
2
35,
00
03
4.8
01,
218
,00
0
(12
7,9
92
)
17D
ore
en
Po
wer
Gen
era
tion
s Lt
d.
6,2
50
56
.12
350
,73
1 6
,250
61.
00
38
1,2
50
3
0,5
19
18E
aste
rn L
ub
rican
t1,
00
01,
39
9.2
2 1
,39
9,2
20
1,
00
01,
019
.30
1,0
19,3
00
(3
79,9
20
)
19E
squ
ire K
nit
Co
mp
osi
te L
imite
d4
1,6
69
45.
00
1,8
75,1
05
41,
66
92
6.3
01,
09
5,8
95
(7
79,2
10)
20
Gen
ex
Info
sys
Lim
ited
95,
60
36
0.9
4 5
,82
5,8
25
95,
60
35
5.0
05,
25
8,1
38
(5
67,
68
8)
21
GP
H is
pat
ltd
.19
7,56
33
7.0
4 7
,317
,50
7 19
7,56
33
0.6
06
,04
5,4
20
(1
,272
,08
7)
22
Gra
meen
Ph
on
e L
td.
23,
00
04
89.4
4 1
1,2
57,
09
7 2
3,0
00
34
7.10
7,9
83,
30
0
(3,2
73,7
97)
23
Ham
id F
abri
cs
Ltd
.17
9,2
753
4.8
4 6
,24
5,56
5
179,2
7518
.60
3,3
34
,515
(2
,911
,05
0)
24H
eid
elb
erg
Cem
en
t3
6,8
84
556
.95
20
,54
2,6
88
3
6,8
84
149.6
05,
517
,84
6
(15,
024
,84
1)
25
IDLC
Fin
ance L
td.
45,
00
077
.05
3,4
67,
29
1 4
5,0
00
63.
40
2,8
53,
00
0
(614
,29
1)
26
IFA
D A
uto
s Li
mite
d11
5,77
010
7.2
6 1
2,4
17,9
42
11
5,77
04
7.2
05,
46
4,3
44
(6
,95
3,5
98
)
27
Jam
un
a O
il3
0,0
90
198
.39
5,9
69,4
62
3
0,0
90
165.
50
4,9
79,8
95
(9
89,5
67)
28
Lafa
rgeH
olc
im B
ang
lad
esh
Li
mite
d2
67,
00
08
1.3
2 2
1,71
3,50
8
26
7,0
00
47.
80
12,7
62
,60
0
(8,9
50
,90
8)
29
Lin
de B
ang
lad
esh
Ltd
.5,
30
01,
459.9
8 7
,73
7,8
88
5,
30
01,
28
1.10
6,7
89,8
30
(9
48
,05
8)
30
Meg
hn
a P
etr
ole
um
Ltd
.11
0,6
65
23
7.79
26
,314
,79
8
110
,66
519
8.0
02
1,9
11,6
70
(4,4
03,
128
)
31
Merc
antil
e B
ank
Ltd
.4
58
,850
.00
15.1
9 6
,971
,12
5
458
,850
12.7
05,
82
7,3
95
(1
,14
3,73
0)
32
MJL
BD
. Ltd
.57,
795
98
.34
5,6
83,
38
7 57,
795
76.9
04
,44
4,4
36
(1
,23
8,9
51)
33
Nah
ee A
lum
inu
m C
om
po
site
P
anel L
td.
53,
92
857.
43
3,0
97,
010
53,
92
84
7.10
2,5
40
,00
9
(55
7,0
01)
352
YEAR OF EXCELLENCE
Sl. N
o.
Co
mp
any
Nam
e
Co
st o
f In
vest
me
nt
Mar
ket
Val
ue
of
Inve
stm
en
t
Un
real
ize
d
Gai
n/L
oss
(T
k)N
o o
f Sh
are
H
eld
Co
st p
er
Sh
are
(T
k)C
ost
of
In
vest
me
nt
(Tk)
No
of
Shar
e
He
ldM
arke
t P
rice
p
er
Shar
e (
Tk)
Mar
ket
Val
ue
of
Inve
stm
en
t (T
k)
34
NC
C B
ank
42
,84
015
.71
673
,213
4
2,8
40
13.2
05
65,
48
8
(10
7,72
5)
35
Oim
ex
Ele
ctr
od
e L
td.
09.0
9 1
0
24.3
02
2
36
Oly
mp
ic In
du
stri
es
17,3
40
215
.49
3,7
36
,510
17
,34
019
1.10
3,3
13,6
74
(42
2,8
36
)
37
On
e B
ank
Lim
ited
98
1,9
53
21.
63
21,
244
,16
0
98
1,9
53
10.6
010
,40
8,7
02
(1
0,8
35,
45
9)
38
Pad
ma
Oil
175,
478
28
3.77
49,7
95,
23
4
175,
478
20
5.10
35,
99
0,5
38
(1
3,8
04
,69
6)
39
Ph
arm
a A
ids
Lim
ited
23,
63
74
65.
64
11,
00
6,2
92
2
3,6
37
474
.70
11,2
20
,48
4
214
,19
1
40
Ph
oen
ix In
sura
nce
36
,06
04
6.6
1 1
,68
0,8
36
3
6,0
60
44
.70
1,6
11,8
82
(6
8,9
54
)
41
Pio
neer
Insu
ran
ce
5,0
00
76.5
9 3
82
,959
5,
00
075
.30
376
,50
0
(6,4
59
)
42
Po
wer
Gri
d C
o.
198
,83
754
.01
10
,73
9,6
24
198
,83
74
1.8
08
,311
,38
7 (2
,42
8,2
37)
43
Pre
mie
r B
ank
Lim
ited
139,8
83
12.1
3 1
,69
7,3
68
13
9,8
83
11.0
01,
53
8,7
13
(15
8,6
55
)
44
Qu
een
So
uth
Text
ile M
ills
Ltd
.4
2,3
89
25.
86
1,0
96
,18
3
42
,38
92
5.70
1,0
89,4
04
(6
,778
)
45
RA
K C
era
mic
s3
17,3
58
47.
22
14
,98
6,5
33
3
17,3
58
26
.10
8,2
83,
04
4
(6,7
03,
49
0)
46
Rep
ub
lic In
sura
nce
10,0
00
57.
07
570
,68
4
10,0
00
55.
60
55
6,0
00
(1
4,6
84
)
47
Rin
g S
hin
e T
ext
iles
Ltd
.10
1,53
58
.61
874
,178
10
1,53
56
.40
64
9,8
26
(2
24,3
52
)
48
Ru
nn
er
Au
tom
ob
iles
Lim
ited
9,6
66
71.4
3 6
90
,42
9
9,6
66
50
.90
49
1,9
99
(1
98
,42
9)
49
Ru
pal
i Ban
k Li
mite
d3
2,6
46
32
.86
1,0
72,6
04
3
2,6
46
28
.70
93
6,9
40
(1
35,
66
4)
50
Saif
Po
wert
ec L
imite
d70
,00
016
.89
1,1
82
,055
70,0
00
18.0
01,
26
0,0
00
77
,94
5
51
Shah
jibaz
ar P
ow
er
10,7
1610
9.9
6 1
,178
,38
2
10,7
1673
.30
785,
49
2
(39
2,8
90
)
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Sl. N
o.
Co
mp
any
Nam
e
Co
st o
f In
vest
me
nt
Mar
ket
Val
ue
of
Inve
stm
en
t
Un
real
ize
d
Gai
n/L
oss
(T
k)N
o o
f Sh
are
H
eld
Co
st p
er
Sh
are
(T
k)C
ost
of
In
vest
me
nt
(Tk)
No
of
Shar
e
He
ldM
arke
t P
rice
p
er
Shar
e (
Tk)
Mar
ket
Val
ue
of
Inve
stm
en
t (T
k)
52
Sin
ger
BD
. Lim
ited
2,0
00
194
.11
38
8,2
20
2
,00
017
5.6
03
51,
20
0
(37,
02
0)
53
Sou
theas
t B
ank
34
8,2
43
14.7
3 5
,13
0,6
29
3
48
,24
312
.50
4,3
53,
03
8
(777
,59
2)
54
Sou
theas
t B
ank
1st
MF
33
6,8
45
13.1
3 4
,42
2,9
77
33
6,8
45
11.8
03,
974
,771
(4
48
,20
6)
55
Squ
are P
har
ma
68
,68
724
2.8
6 1
6,6
80
,96
7 6
8,6
87
219
.50
15,0
76,7
53
(1
,60
4,2
15)
56
Tita
s G
as T
&D
Co
.Ltd
.3
55,
810
69.0
3 2
4,5
59,8
92
3
55,
810
30
.80
10,9
58
,94
8
(13,
60
0,9
44
)
57
Un
iqu
e H
ote
l & R
eso
rt5,
00
053.
79 2
68
,93
0
5,0
00
39.6
019
8,0
00
(7
0,9
30
)
58
Utt
ara
Ban
k Lt
d.
33
8,7
42
37.
07
12
,555,
98
0
33
8,7
42
24.0
08
,12
9,8
08
(4
,42
6,1
72)
59
Utt
ara
Fin
ance
15,8
30
69.8
0 1
,10
4,9
29
15
,83
04
6.7
073
9,2
61
(36
5,6
68
)
Sub
To
tal (
A)
40
6,3
01,
50
2.1
6
275
,80
5,0
15
(10
9,9
80
,35
2)
B. N
on
-Mar
gin
able
Sh
are
:
1A
DN
Tele
co
m L
imite
d2
169
7355.
03
11,
93
9,0
91
216
973
64
.30
13,
95
1,3
64
2
,012
,273
2A
pp
ollo
Isp
at L
imite
d74
82
7510
.21
7,6
42
,058
74
82
756
.50
4,8
63,
788
(2
,778
,270
)
3A
rian
Ch
em
ical
s(P
vt.P
lac)
50
0,0
00
10
.00
5,0
00
,00
0
50
0,0
00
.00
10
.00
5,0
00
,00
0
-
4B
exi
mco
Lim
ited
20
0,0
00
4
8.4
4 9
,68
8,8
40
2
00
,00
0.0
0
57.
00
11,
40
0,0
00
1
,711
,16
0
5C
ryst
al In
sura
nce C
om
pan
y Li
mite
d10
,879
10
.00
10
8,7
90
10
,879
.00
3
9.4
0 4
28
,63
3
319
,84
3
6C
VO
Petr
och
em
ical
Ltd
.16
,92
5
38
6.0
3 6
,53
3,53
6
16,9
25.
00
11
5.4
0 1
,95
3,14
5
(4
,58
0,3
91)
7D
elta
Life
Ins.
111,
29
5
127.
56
14
,19
6,2
89
11
1,2
95.
00
6
8.2
0 7
,59
0,3
19
(6
,60
5,9
70)
354
YEAR OF EXCELLENCE
Sl. N
o.
Co
mp
any
Nam
e
Co
st o
f In
vest
me
nt
Mar
ket
Val
ue
of
Inve
stm
en
t
Un
real
ize
d
Gai
n/L
oss
(T
k)N
o o
f Sh
are
H
eld
Co
st p
er
Sh
are
(T
k)C
ost
of
In
vest
me
nt
(Tk)
No
of
Shar
e
He
ldM
arke
t P
rice
p
er
Shar
e (
Tk)
Mar
ket
Val
ue
of
Inve
stm
en
t (T
k)
8D
om
inag
e S
teel B
uild
ing
Sys
tem
s Li
mite
d1,
98
5
9.2
6 1
8,3
81
1,9
85.
12
34
.50
68
,48
7 5
0,1
06
9E
nerg
ypac
Po
wer
Gen
era
tion
Ltd
30
0,0
00
50
.00
15,
00
0,0
00
3
00
,00
0.0
0
50
.00
15,
00
0,0
00
-
10E
mera
ld O
il In
d.L
td79
,18
2
25.
02
1,9
81,
02
3
79,1
82
.00
10
.80
85
5,16
6
(1,
125,
85
7)
11Fa
mily
tex
(BD
) Li
mite
d4
57,
64
0
8.4
3 3
,857,
810
4
57,
63
9.6
0
2.8
0 1
,28
1,3
91
(2
,576
,419
)
12Fi
ber
Shin
e L
td.(P
vt.P
lcem
nt)
20
0,0
00
10
.00
2,0
00
,00
0
20
0,0
00
.00
10
.00
2,0
00
,00
0
-
13G
en
era
tion
Next
Fas
hio
ns
Ltd
.77
0,0
00
5.
92
4,5
61,
09
5
770
,00
0.0
0
3.9
0 3
,00
3,0
00
(1,
55
8,0
95
)
14G
old
en
So
n L
imite
d9
9,4
88
3
4.3
1 3
,413
,015
9
9,4
88
.00
11
.20
1,1
14,2
66
(2
,29
8,7
50
)
15In
Tech
On
line L
td.
40
,00
0
61.
23
2,4
49,0
12
40
,00
0.0
0
36
.60
1,4
64
,00
0
(9
85,
012
)
16K
eya
Co
smetic
s2
00
,00
0
7.2
1 1
,44
1,72
0
20
0,0
00
.00
6
.00
1,2
00
,00
0
(24
1,72
0)
17P
op
ula
r Li
fe In
s.3
0,0
40
8
4.4
7 2
,53
7,3
68
3
0,0
40
.00
76
.70
2,3
04
,06
8
(2
33,
30
0)
18P
rim
e F
inan
ce
120
,00
0
73.8
2 8
,858
,36
4
120
,00
0.0
0
12.6
0 1
,512
,00
0
(7,
34
6,3
64
)
19R
ob
i Axi
ata
Lim
ited
271
,253
10
.00
2,7
12,5
30
2
71,2
53.
00
2
9.8
0 8
,08
3,3
39
5
,370
,80
9
20
Sea
Pear
l Beac
h R
eso
rt &
Sp
a Li
mite
d1,
86
5
9.5
2 1
7,76
2
1,8
65.
00
79
.10
14
7,5
22
1
29,7
60
21
Tun
g H
ai K
nitt
ing
& D
yein
g L
td.
100
,00
0
4.7
1 4
70,5
10
100
,00
0.0
0
3.4
0 3
40
,00
0
(13
0,5
10)
22
Un
ion
Cap
ital
28
4,0
67
22
.38
6,3
56
,02
8
28
4,0
67.
00
8
.40
2,3
86
,16
3
(3,
96
9,8
65
)
Sub
To
tal (
B)
110
,78
3,2
21
85
,94
6,6
48
(
24
,83
6,5
73)
Tota
l (A
+B
)5
17,0
84
,72
4
36
1,75
1,6
64
(
134
,816
,92
6)
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Son
ali I
nve
stm
en
t Li
mit
ed
Po
rtfo
lio o
f In
vest
me
nt
in S
har
es
As
at 3
1 D
ecem
ber
20
20
An
nexu
re-B
Sl. N
o.
Co
mp
any
Nam
e
Co
st o
f In
vest
me
nt
Mar
ket
Val
ue
of
Inve
stm
en
t
Un
real
ize
d
Gai
n/L
oss
(T
k)N
o o
f Sh
are
H
eld
Co
st p
er
Sh
are
(T
k)C
ost
of
In
vest
me
nt
(Tk)
No
of
Shar
e
He
ldM
arke
t P
rice
p
er
Shar
e (
Tk)
Mar
ket
Val
ue
of
Inve
stm
en
t (T
k)
A. M
arg
inab
le S
har
e :
1aa
mra
netw
ork
s lim
ited
22
6,7
65
44
.88
1
0,1
77,4
17
22
6,7
65
45.
20
10,2
49,7
78
72,3
61
2A
CI L
TD
55,
785
246
.23
1
3,73
6,3
12
55,
785
246
.00
13,7
23,
20
8
(13,
104
)
3A
dve
nt
Ph
arm
a Li
mite
d2
55,
750
21.
57
5,5
15,4
79
255,
750
22
.80
5,8
31,
100
3
15,6
21
4A
ftab
Au
tom
ob
iles
163,
50
73
1.12
5
,08
8,3
21
163,
50
72
6.7
04
,36
5,6
37
(72
2,6
85
)
5A
MC
L (P
ran
)6
0,5
80
192
.93
1
1,6
87,
657
60
,58
019
4.8
011
,80
0,9
84
11
3,3
27
6A
pex
Foo
twear
Lim
ited
48
,84
92
24.7
9
10
,98
0,9
52
4
8,8
49
22
0.3
010
,76
1,4
35
(2
19,5
18)
7A
rgo
n D
en
ims
Lim
ited
124
,950
21.
88
2
,73
3,8
31
124
,950
19.7
02
,46
1,5
15
(272
,316
)
8B
ang
lad
esh
Sh
ipp
ing
Co
rp.
71,0
00
49.6
4
3,5
24,2
27
71,0
00
44
.70
3,17
3,70
0
(35
0,5
27)
9B
BS
Cab
les
Ltd
.2
64
,251
56
.88
1
5,0
31,
616
2
64
,251
54
.80
14,4
80
,94
4
(55
0,6
72)
10B
DC
OM
On
line L
imite
d518
,70
02
5.17
1
3,0
58
,06
1 518
,70
024
.00
12,4
48
,79
6
(60
9,2
65
)
11B
exi
mco
Ph
arm
a5,
00
015
4.8
4
774
,178
5,
00
019
0.5
09
52
,50
0
178
,32
3
12C
ity B
ank
60
,00
02
5.4
6
1,5
27,
30
6
60
,00
024
.80
1,4
88
,00
0
(39,3
06
)
13C
on
fiden
ce C
em
en
t4
2,1
80
121.
00
5
,10
3,9
36
4
2,1
80
121.
30
5,11
6,4
34
12
,49
8
14D
BH
Fin
ance C
orp
. Lim
ited
85,
742
95.
31
8,1
71,6
67
85,
742
92
.60
7,9
39,7
09
(2
31,
95
8)
15D
ESC
O12
7,3
98
34
.99
4
,458
,217
12
7,3
98
34
.80
4,4
33,
45
0
(24
,76
6)
356
YEAR OF EXCELLENCE
Sl. N
o.
Co
mp
any
Nam
e
Co
st o
f In
vest
me
nt
Mar
ket
Val
ue
of
Inve
stm
en
t
Un
real
ize
d
Gai
n/L
oss
(T
k)N
o o
f Sh
are
H
eld
Co
st p
er
Sh
are
(T
k)C
ost
of
In
vest
me
nt
(Tk)
No
of
Shar
e
He
ldM
arke
t P
rice
p
er
Shar
e (
Tk)
Mar
ket
Val
ue
of
Inve
stm
en
t (T
k)
16D
ore
en
Po
wer
Gen
era
tion
s Lt
d.
6,0
00
55.
85
33
5,0
74
6,0
00
61.
00
36
6,0
00
3
0,9
26
17G
en
ex
Info
sys
Lim
ited
7,6
01
56
.61
43
0,3
27
7,6
01
55.
00
418
,072
(1
2,2
56
)
18G
PH
isp
at lt
d.
10,0
01
28
.36
2
83,
650
10
,00
13
0.6
03
06
,015
2
2,3
65
19G
ram
een
MF-
210
0,0
00
16.0
5
1,6
04
,76
0
100
,00
016
.80
1,6
80
,00
0
75,2
40
20
ICB
13,6
50
94
.22
1
,28
6,0
74
13,6
50
98
.80
1,3
48
,62
0
62
,54
6
21
IFA
D A
uto
s Li
mite
d9
164
4.1
0
40
,40
0
916
47.
20
43,
23
5
2,8
35
22
Jam
un
a O
il4
6,9
1016
9.4
3
7,9
47,
99
4
46
,910
165.
50
7,76
3,6
05
(1
84
,38
9)
23
Meg
hn
a P
etr
ole
um
Ltd
.2
2,0
00
198
.30
4
,36
2,5
16
22
,00
019
8.0
04
,35
6,0
00
(6
,516
)
24M
JL B
D. L
td.
50
,613
83.
30
4
,215
,84
0
50
,613
76.9
03,
89
2,1
40
(3
23,
701)
25
Nah
ee A
lum
inu
m C
om
po
site
P
anel L
td.
152
,06
850
.97
7,7
51,
176
15
2,0
68
47.
107,
162
,42
0
(58
8,7
55
)
26
Nat
ion
al P
oly
mar
53,
725
79.2
6
4,2
58
,08
8
53,
725
71.5
03,
84
1,3
38
(4
16,7
50
)
27
On
e B
ank
Lim
ited
184
,173
10.9
1 2
,00
9,8
98
18
4,1
7310
.60
1,9
52
,23
4
(57,
66
5)
28
Pad
ma
Oil
24,1
48
224
.14
5
,412
,63
9
24,1
48
20
5.10
4,9
52
,75
5
(45
9,8
84
)
29
Ph
arm
a A
ids
Lim
ited
16,5
52
473
.78
7
,84
2,0
73
16,5
52
474
.70
7,8
57,
23
4
15,1
62
30
Ph
oen
ix In
sura
nce
45,
00
04
4.6
5
2,0
09,2
10
45,
00
04
4.7
02
,011
,50
0
2,2
91
31
Pio
neer
Insu
ran
ce
5,0
00
.00
74.8
9
374
,44
9
5,0
00
75.3
03
76,5
00
2
,05
1
32
Po
wer
Gri
d C
o.
113,
358
49.4
1 5
,60
0,8
15
113,
358
41.
80
4,7
38
,36
4
(86
2,4
50
)
33
Ran
gp
ur
Fou
nd
ry4
7,2
61
122
.43
5
,78
6,3
20
4
7,2
61
123.
40
5,8
32
,00
7 4
5,6
87
34
Rep
ub
lic In
sura
nce
10,0
00
55.
57
555,
66
6
10,0
00
55.
60
55
6,0
00
3
34
35
Ru
nn
er
Au
tom
ob
iles
Lim
ited
90
,69
758
.32
5
,28
9,1
77
90
,69
75
0.9
04
,616
,477
(6
72,7
00
)
FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Sl. N
o.
Co
mp
any
Nam
e
Co
st o
f In
vest
me
nt
Mar
ket
Val
ue
of
Inve
stm
en
t
Un
real
ize
d
Gai
n/L
oss
(T
k)N
o o
f Sh
are
H
eld
Co
st p
er
Sh
are
(T
k)C
ost
of
In
vest
me
nt
(Tk)
No
of
Shar
e
He
ldM
arke
t P
rice
p
er
Shar
e (
Tk)
Mar
ket
Val
ue
of
Inve
stm
en
t (T
k)
36
Ru
pal
i Ban
k Li
mite
d11
5,0
00
33.
54
3
,857,
66
4
115,
00
02
8.7
03,
30
0,5
00
(5
57,
164
)
37
Saif
Po
wert
ec L
imite
d5,
00
013
.96
6
9,8
18
5,0
00
18.0
09
0,0
00
2
0,1
82
38
Silc
o P
har
mac
eu
tical
s Li
mite
d8
4,5
732
7.3
4
2,3
11,8
45
84
,573
24.0
02
,02
9,7
52
(2
82
,09
3)
39
Silv
a P
har
mac
eu
tical
s Li
mite
d6
0,0
00
21.
46
1
,28
7,54
6
60
,00
018
.30
1,0
98
,00
0
(18
9,5
46
)
40
Sou
theas
t B
ank
212
,50
013
.80
2
,93
3,2
01
212
,50
012
.50
2,6
56
,25
0
(276
,95
1)
41
Squ
are P
har
ma
91,
070
198
.95
18
,118
,513
9
1,0
702
19.5
019
,98
9,8
65
1,
871
,35
2
42
Squ
are T
ext
ile56
,78
32
9.7
0
1,6
86
,42
7 56
,78
32
9.8
01,
69
2,1
33
5,
707
43
Stan
dar
d B
ank
20
0,0
00
8.7
1 1
,74
2,0
80
2
00
,00
08
.30
1,6
60
,00
0
(82
,08
0)
44
Tru
st B
ank
Lim
ited
27,
166
33.
52
9
10,6
42
2
7,16
63
3.4
09
07,
34
4
(3,2
98
)
45
West
ern
Mar
ine S
hip
yard
739,3
7111
.73
8
,675
,93
2
739,3
7111
.70
8,6
50
,64
6
(25,
28
7)
Sub
To
tal (
A)
22
0,5
58
,99
3
215
,372
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8
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YEAR OF EXCELLENCE
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FINANCIAL STATEMENTS OF SIL
Annual Report 2020
Sl. N
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Nam
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Co
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f In
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me
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Mar
ket
Val
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360
YEAR OF EXCELLENCE
Particulars Notes Amount in Taka
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
Balance with other Banks & Financial Institutions
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
Non-Banking Assets 8.00 - -
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 - -
Deposit and Other Accounts
Current Accounts & Other Accounts etc. 5,276,916.44 7,610,915.00
Bills Payable - 102,942,191.00
SONALI BANK LIMITED ISLAMIC BANKING WINDOW Balance Sheet
As at 31 December 2020
FINANCIAL STATEMENTS OF ISLAMIC BANKING UNIT
Annual Report 2020
Particulars Notes Amount in Taka
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
Shareholders' Equity
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
Contingent Liabilities
Acceptances and Endorsements
Letters of Guarantee - -
Irrevocable Letters of Credit - -
Bills for Collection - -
Other Contingent Liabilities - -
17.00 - -
Other Commitments
Documentary credits and short term trade related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total Off Balance Sheet items including contingent liabilities - -
Net Asset Value (NAV) per Share - -
The annexed notes from 1 to 37 form an integral part of these financial statements.
362
YEAR OF EXCELLENCE
SONALI BANK LIMITEDIslamic Banking Department
Profit and Loss Account
for the year ended 31 December 2020
Particulars Notes Amount in Taka
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 - -
The annexed notes from 1 to 48 form an integral part of these financial statements.
FINANCIAL STATEMENTS OF SECI
Annual Report 2020
SONALI EXCHANGE CO. INC.
We have audited the accompanying financial statements of Sonali Exchange Co. Inc., a State of New York corporation, which comprise the balance sheet as of December 31, 2020 and 2019, and the related statements of income and cash flows for the years then ended, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position
of Sonali Exchange Co. Inc. as of December 31, 2020 and 2019, and the results of its operations and its cash flows for. years then ended in accordance accounting principles generally accepted in the United States of America.
Independent Auditors’ ReportTo the Board of Directors and Stockholder of
Sonali Exchange Co. Inc.
New YorkJanuary 28, 2021
364
YEAR OF EXCELLENCE
SONALI EXCHANGE CO. INC.Balance Sheet
As at 31 December 2020 and 2019
Particulars Notes Amount in USD
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 1,457,235Balance with other Banks & Financial Institutions
In USA 3,130,829 1,867,579
Outside USA - -
2.00 3,130,829 1,867,579Money 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 17,730Other Assets 7,00 91,918 177,810Non-Banking Assets 8.00 - -Total Assets 4,743,706 3,520,354Liabilities And Capital
Liabilities
Borrowing from other Banks, Financial Institutions & Agents 9.00 816,200 812,000
Deposit and Other Accounts
Current Accounts & Other Accounts etc. - -
Bills Payable - -
Savings Bank Deposits - -
Fixed Deposits - -
Other Deposits 10.00 - -
Other Liabilities 11.00 2,871,535 1,876,404Total Liabilities 3,687,735 2,688,404Shareholders' Equity
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
New York, NYDevasree Mitra
President & CEO
FINANCIAL STATEMENTS OF SECI
Annual Report 2020
Particulars Notes Amount in USD
2020 2019
Off-Balance Sheet Items
Contingent Liabilities
Acceptances and Endorsements
Letters of Guarantee - -
Irrevocable Letters of Credit - -
Bills for Collection - -
Other Contingent Liabilities - -
17 - -
Other Commitments
Documentary credits and short term trade related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
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
The annexed notes from 1 to 17 form an integral part of these financial statements.
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
366
YEAR OF EXCELLENCE
SONALI EXCHANGE CO. INC.Profit and Loss Account
As at 31 December 2020 and 2019
Particulars Notes Amount in USD
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)
The annexed notes from 1 to 48 form an integral part of these financial statements.
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
FINANCIAL STATEMENTS OF SECI
Annual Report 2020
SONALI EXCHANGE CO. INC.Cash Flow Statement
As at 31 December 2020 and 2019
Particulars Notes Amount in USD
2020 2019
A. Cash flows from operating activities
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)
B. Cash flows from investing activities
(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)
C. Cash flows from financing activities
Proceed from share issue - -
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
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
368
YEAR OF EXCELLENCE
SON
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Stat
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Annual Report 2020
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370
YEAR OF EXCELLENCE
Particulars NotesBank
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 - -
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
FINANCIAL STATEMENTS OF SECI
Annual Report 2020
Particulars NotesBank
2020 20194.02 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 UKLoan - -
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 175,394 173,004Motor Car & Other Vehicle - -Total Cost Value 619,061 616,671
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
372
YEAR OF EXCELLENCE
Particulars NotesBank
2020 2019(B) Accumulated Depreciation
Premises - -Leasehold Improvement 281,997 273,925Furniture & Fixture 134,248 133,610Security System 20,350 20,350Organizational Cost - -Machinery & Equipment 172,339 171,056Motor Car & Other Vehicle - -Total Accumulated Depreciation 608,934 598,941Written 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 70,644Advance Cover Funds - -Advance deposit - -Suspense A/C - -Others 1,400 107,166
91,918 177,8107.01 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 - -
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
FINANCIAL STATEMENTS OF SECI
Annual Report 2020
Particulars NotesBank
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
10.00 Deposits and other accounts
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 - -
Irrevocable Letters of Credit - -
Bills for collection - -
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
374
YEAR OF EXCELLENCE
Particulars NotesBank
2020 201918.00 Interest Income - -
On Loan and Advances - -On Balance with other banks and financial institutions 28,406 18,408On Received from foreign banks - -Others Interest income - -
28,406 18,40819.00 Interest paid on deposits and borrowings etc.
Interest on Deposits - -Interest on Borrowings 8,120 9,780Interest on Foreign Banks Account - -Interest on others - -
8,120 9,78020.00 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 BrokerageCommission 482,768 389,977Exchange 1,853,493 1,301,110
2,336,261 1,691,08722.00 Other Operating Income
Sundries 85 -
85 -23.00 Salary & Allowances
Salaries (Basic Pay, House Rent & Other Allowance) 777,809 805,838Contribution 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 - -
777,809 805,83824.00 Rent, Tax, Insurance, Electricity, etc.
Rent 351,277 309,072Taxes 769 592Service Charge of premises - -Insurance 120,567 107,720Power and electricity 26,812 26,880
499,426 444,26325.00 Legal expenses
Law charges 31,000 33,733Other Legal Expenses - -
31,000 33,733
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
FINANCIAL STATEMENTS OF SECI
Annual Report 2020
Particulars NotesBank
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:
A) Premises (Including Land & Building)
Premises - -
Leasehold Improvement 8,073 8,073
Sub-total 8,073 8,073
B) Dead stock - -
Furniture 637 637
Machinery & Equipment 1,283 1,746
Computer Software - -
Computer Hardware - -
Type Writer Machine - -
Motor Car & Other Vehicle - -
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
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
376
YEAR OF EXCELLENCE
Particulars NotesBank
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)
Anowar Hossain, CPA
New York, NYDevasree Mitra
President & CEO
ADDITIONAL INFORMATION
Annual Report 2020
DOMESTIC BRANCHESOF SONALI BANK LIMITED
Sl. CORPORATE BRANCHES
1 LOCAL OFFICE, DHAKA
2 BANGABANDHU AVENUE CORP., DHAKA
3 RAMNA CORP., DHAKA
4 WAGE EARNERS’ CORP., DHAKA
5 SHILPA BHABAN CORP., DHAKA
6 DILKUSHA CORP., DHAKA
7 FOREIGN EXCHANGE CORP., DHAKA
8 B-WAPDA BHABAN CORP., DHAKA
9 SADARGHAT CORP., DHAKA
10 DHAKA CANTT. CORP., DHAKA
11 DU CAMPUS CORP., DHAKA
12 HOTEL SHERATON CORP., DHAKA
13 DHANMONDI CORP., DHAKA
14 PM OFFICE CAORP., DHAKA
15 CHAWKBAZAR CORP., DHAKA
16 NARAYANGONJ CORP., NARAYANGONJ
17 MYMENSINGH CORP., MYMENSINGH
18 AGRABAD CORP., CHITTAGONG
19 LALDIGHI CORP., CHITTAGONG
20 WAGE EARNERS’ CORP., CHITTAGONG
21 COMILLA CORP., COMILLA
22 KHULNA CORP., KHULNA
23 DOULATPUR CORP., KHULNA
24 JESSORE CORP., JESSORE
25 RAJSHAHI CORP., RAJSHAHI
26 BOGRA CORP., BOGRA
27 RANGPUR CORP., RANGPUR
28 DINAJPUR CORP., DINAJPUR
29 BARISAL CORP., BARISAL
30 SYLHET CORP., SYLHET
31 DARGAGATE CORP., SYLHET
32 FARIDPUR CORP., FARIDPUR
GENERAL MANAGER’S OFFICE DHAKA-1
PRINCIPAL OFFICE : BANGABANDHU DHAKA CENTRAL
1 BAITUL MOKKARRAM
2 BANANI
3 BANANI BAZAR
4 BARIDHARA
5 BANGA BANDHU JATIO STADIUM
6 FARMGATE
Sl. NAME OF BRANCH
7 GULSHAN
8 GULSHAN NEW NORTH CIRCLE
9 KAWRAN BAZAR
10 MOHAKHALI
11 SONARGAON HOTEL
12 TEJGAON INDUSTIAL AREA
13 REGISTRATION COMPLEX
14 NCTB
15 BANGO BHABAN
16 RAJUK BHABAN
17 KRISHI BHABAN
18 NAGAR BHABAN
19 KAKRAIL
20 SEGUN BAGICHA
21 SONARGAON ROAD
22 SUPREME COURT
PRINCIPAL OFFICE : DHAKA SOUTH
1 AGLA
2 ARMANITOLA
3 ATIBAZAR
4 BABUBAZAR
5 CHURAIN
6 D.C.HALL
7 DISTILARY ROAD
8 FARASHGANJ
9 JOYPARA
10 KALAKOPA
11 KALATIA
12 KERANIGANJ
13 MITFORD ROAD
14 LAXMI BAZAR
15 NAWABGANJ
16 NAYABAZAR
17 NAZIRABAZAR
18 PALAMGANJ
19 POSTAGOLA
20 RUHITPUR
21 NAZIM UDDIN ROAD
22 RASULPUR BAZAR
23 NORTH SOUTH SARAK
24 PANGAON ICT BR.
PRINCIPAL OFFICE: NARSHINGDI
1 BELABOO
2 DANGA
3 GHORASAL
4 GORADIA
5 MADHABDI
6 MONOHARDI
7 NARAYANPUR BAZAR
8 NARSINGDI
9 PALASH
10 PANCHDONA
11 PUTIA
12 RAIPURA
13 RAMPUR BAZAR
378
YEAR OF EXCELLENCE
14 SAIDABAD
15 SATIRPARA
16 SHIBPUR
17 BHAKHAN NAGAR
18 COURT BUILDING
19 BELTALI BAZAR
20 PORADIA BAZAR
21 HATIRDIA BAZAR
PRINCIPAL OFFICE: GAZIPUR
1 STATION ROAD
2 BSIC INDUSTRIAL AREA
3 TONGI
4 TONGI BAZAR
5 B.A.R.I.
6 B.R.R.I
7 BHAWAL JAMALPUR
8 BOF GAZIPUR CANTONMENT
9 GAZIPUR COURT BUILDING
10 JOYDEVPUR
11 KALIAKOIR
12 KALIGANJ
13 KAPASIA
14 PUBAIL BAZAR
15 RAJENDRAPUR CANTONMENT
16 BARMI BAZAR
17 SREEPUR THANA HEAD QUARTER
18 GAZIPUR SADAR UPAZILLA COMPLEX
19 SHAFIPUR ANSAR ACADEMY COMPLEX
20 SINGSREE BAZAR
21 JATIO BISWABIDDALAYA
22 B.B.SK.MUJIB KRISHI BISWABIDDALAYA
REGIONAL OFFICE: MANIKGONJ
1 BALIRTEK BAZAR
2 DARGRAM
3 DAULATPUR
4 GHIOR
5 HARIRAMPUR
6 MANIKGANJ
7 MANIKGANJ UPAZILLA
8 SATURIA
9 SHIVALAYA
10 SINGAIR
11 CHANDAHAR
GENERAL MANAGER’S OFFICEDHAKA-2
PRINCIPAL OFFICE: DHAKA EAST
1 BADDAH
2 MOGH BAZAR
3 BAWANINAGAR
4 DAYAGONJ
5 FAKIRAPOOL
6 GORAN
7 JATRABARI
8 KHILGAON
9 MALIBAGH
10 RAMPURA
11 SHAHJAHANPUR
12 BASHABO
13 KAMALAPUR RAILWAY STATION ICD
14 SAIDABAD BUS TERMINAL
15 AWLAD HOSSAIN MARKET
16 VIKARUNNISSA NOON SCHOOL
17 ISHWAR CH.STREET
18 NOWABPUR ROAD
19 WARI
PRINCIPAL OFFICE: DHAKA WEST
1 PUBLIC SERVICE COMMISSION
2 GANA BHABAN
3 GREEN ROAD
4 KALLYANPUR
5 MANIK MIAH AVENUE
6 COLLEGE GATE
7 B.I.S.E.
8 B.M.E.B.
9 B.U.E.T.
10 NEW MARKET
11 JHIKATALA
Sl. NAME OF BRANCH
12 LALMATIA
13 MOHAMMADPUR BAZAR
14 JATIO SANGSHAD BHABAN
15 SATMASJID ROAD
16 BAJME KADERIA COMPLEX
17 AGARGAON
18 AGRANI BALIKA BIDYALAYA
19 HAZARIBAG BRANCH
20 KRISHI BAZAR
21 LALBAG ROAD (DHAKA)
22 MOKIMKATRA
23 URDU ROAD
PRINCIPAL OFFICE: MIRPUR
1 KURMITOLA
2 NEVAL HEAD QUARTER
3 UTTARA MODEL TOWN
4 SHAHJALAL INTERNATIONAL AIRPORT
5 IBRAHIMPUR
6 CUSTOM HOUSE BRANCH,KURMITOLA
7 UTTARKHAN BRANCH
8 ASHULIA BAZAR BR.
9 AMIN BAZAR
10 DHAMRAI
11 MIRPUR SECTION-1
12 NAYARHAT
13 PATC (SAVAR)
14 KALAMPUR BAZAR
15 MIRPUR CANTONMENT
16 MIRPUR SECTION-12
17 SAVAR
18 SAVAR CANTONMENT
19 BEGUM ROKEYA SHARANI
20 MIRPUR SHILPA ELAKA
21 DHAKA RAPTANI PRAKRIAKARAN ALAKHA
ADDITIONAL INFORMATION
Annual Report 2020
PRINCIPAL OFFICE: NARAYANGONJ
1 ARAIHAZAR
2 GODNAIL
3 FATULLAH
4 DHARMAGANJ
5 DHUPTARA
6 GOPALDI BAZAR
7 KURIPARA
8 LADIES BRANCH
9 MADANGANJ
Sl. NAME OF BRANCH
10 MUGRAPARA
11 NABIGANJ
12 NARAYANGANJ DOCK YARD
13 NETAIGANJ
14 PUNCHRUKHI
15 RUPGANJ
16 SONARGAON
17 TARABOO BAZAR
18 BANDAR BRANCH
PRINCIPAL OFFICE: MUNSHIGONJ
1 BALURCHAR
2 BASAIL
3 BHABERCHAR
4 DIGHOLI BAZAR
5 GAZARIA
6 MAWYA
7 HALDIA BAZAR
8 KEYAIN
9 MUNSHIGANJ
10 REKABIBAZAR
11 SHEKHAR NAGAR
12 SIRAJDEE KHAN
13 SREE NAGAR
14 SYEDPUR
15 TALTALA
16 TONGIBARI
17 SUKHBASHPUR
18 DAMLA
GENERAL MANAGER’S OFFICEMYMENSINGH
PRINCIPAL OFFICE : MYMENSINGH
1 MATHSHA GABESHANA INSTITUTE
2 ASIM BAZAR
3 BALIA BAZAR
4 BHALUKA
5 CHAR NILOKHIA
6 FULBARIA
7 GAFFARGAON
8 GAYESPUR
9 GOURIPUR
10 HALUAGHAT
11 ISWARGONJ
12 KESHORGONJ BAZAR
13 MUKTAGACHA
14 MYMENSINGH
15 MYMENSINGH BUSINESS CENTRE
Sl. NAME OF BRANCH
16 NANDAIL
17 PADURBARI
18 PHULPUR
19 BINA
20 SHIBGONJ
21 TARERGHAT
22 TRISHAL
23 DOBAURA
24 TARAKANDA
25 JATIO KOBI KAZI NAZRUL ISLAM UNI.
PRINCIPAL OFFICE : JAMALPUR
1 BAKSHIGONJ
2 BSCI INDUSTRIAL ESTATE
3 CHAPARKONA
4 DEWANGONJ BAZAR
5 DEWANGONJ SUGAR MILL
6 HAZRABARI
7 ISLAMPUR
8 JAMALPUR
9 JAMALPUR BAZAR
10 BARO MASJID ROAD
11 MADERGONJ
12 MEDICAL ROAD
13 MELANDAH
14 NANDINA
15 SANANDABARI
16 SHARISHABARI
17 SHARISHABARI THANA HEAD QUARTER
18 SREEPUR KUMARIA BAZAR
19 JAMUNA SAR KARKHANA
PRINCIPAL OFFICE: KISHORGONJ
1 AUSTAGRAM
2 BAJITPUR
3 BHAIRAB
4 CHAYSHUTI
5 DOMRAKANDA
6 HOSSAINPUR
7 ITNA
8 KALIACHAPRA
9 KARIMGONJ
10 KATIADI
11 KISHOREGONJ
12 KULIARCHAR
13 MITAMAIN
14 NIAMATPUR
Sl. NAME OF BRANCH
15 NIKLY
16 PAKUNDIA
17 TARAIL
18 STATION ROAD
PRINCIPAL OFFICE : TANGAIL
1 BARATI BAZAR
2 BASHAIL
3 BHUAPUR
4 DELDUAR
380
YEAR OF EXCELLENCE
5 DHANBARI
6 DIST. HEAD QUARTER
7 FALDA BAZAR
8 GHATAIL
9 GOBINDASHI
10 GOPALPUR
11 GORAI
12 KALIHATI
13 KENDUA BAZAR
14 BALLA BAZAR
15 LADIES BRANCH
16 LOWHATI
17 MIRZAPUR
18 MODHUPUR
19 MOHANPUR
20 NAGARPUR
21 NIKRAIL
22 PAKUTIA
23 SHAKHIPUR
24 TANGAIL
25 TANGAIL BAZAR
26 VICTORIA ROAD
27 SHAHID SALAHUDDIN CANTT.GHATAIL
28 NALIN BAZAR
29 MOULANA BHASANI SCIENCE AND TECH.
30 GARO BAZAR
31 ELENGA
32 SADATPUR BAZAR
REGIONAL OFFICE : SHERPUR
1 SHERPUR
2 JHENAIGATI
3 NAKHLA
4 NALITABARI
5 NAYANI BAZAR
6 SREEBORDI
7 SURJADI BAZAR
8 KORTIMARI BAZAR
9 RAJIBPUR
10 ROWMARI
11 Kortimari Bazar
REGIONAL OFFICE : NETROKONA
1 ATPARA
2 BARHATTA
3 DURGAPUR
4 KALMAKANDA
5 KENDUA
6 KHALIAJHURI
7 LEPSIA
8 MADAN
9 MADANPUR
10 MOHANGONJ
11 NETROKONA
12 PURBADHALA
13 THAKURKONA BAZAR
14 HOGLA BAZAR
GENERAL MANAGER’S OFFICEFARIDPUR
PRINCIPAL OFFICE : FARIDPUR
1 ALFADANGA
2 BHANGA
3 BISWA ZAKIR MANJIL
4 BOALMARI
5 SADAR UPAZILLA COMPLEX
6 CHAR BHADRASAN
7 COURT BUILDING
8 FARIDPUR
9 GOALCHAMAT
10 HAJIGONJ
11 HATKRISHNAPUR
12 KAMARKHALI
13 KANAIPUR
14 KHALILPUR
15 MADHUKHALI
16 MADHUKHALI U.Z.C.
17 NAGARKANDA
18 SADARPUR
19 SHIRGRAM
20 TALMA
21 TEPAKHOLA
22 MOYENDA BAZAR
23 SALTHA BAZAR
PRINCIPAL OFFICE : MADARIPUR
1 ANGARIA BAZAR
2 BHEDARGONJ
3 CHAR MUGURIA
Sl. NAME OF BRANCH
4 DAMUDDYA
5 GOSAIRHAT
6 JAJIRA
7 KALKINI
8 KULPADDI
9 PAURASHAVA
10 MADARIPUR
11 MILLGATE
12 NARIA
13 RAJOIR
14 SARIATPUR
15 SHIBCHAR
16 TEKERHAT
17 DATTAPARA BAZAR BRANCH
PRINCIPAL OFFICE : KUSHTIA
1 AMLA
2 BHERAMARA
3 BHERAMARA POWER STATION
4 COURT BUILDING
5 DAULATPUR
6 DOHAKULA
7 EKTERPURHAT
8 HALSHA
9 HARINARAYANPUR
10 KUSHTIA SUGAR MILLS
11 KAYA BAZAR
ADDITIONAL INFORMATION
Annual Report 2020
12 KHOKSHA
13 KUMARKHALI
14 KUMARKHALI UPA ZILLA COMPLEX
15 KUSHTIA
16 MIRPUR
17 MODHUPUR BAZAR
18 N.S.ROAD
19 PORADAH
20 SAMOSPUR
21 PASHCHIM ABDALPUR
22 NANDALALPUR
PRINCIPAL OFFICE : CHUADANGA
1 ALAMDANGA
2 CHUADANGA
3 DAMURHUDA
4 DARSANA
5 DINGIADAH
6 GOKULKHALI BAZAR
Sl. NAME OF BRANCH
7 HATBOALIA
8 JIBANNAGAR
9 MUNSHIGONJ
10 SAROJGONJ
11 UTHALI
12 AMJHUPI
13 GARADOB BAZAR
14 GANGNI
15 GANGNI THANA HEAD QUARTER
16 JOREPUKURIA
17 MEHERPUR
18 MEHERPUR COURT BUILDING
19 MUJIBNAGAR
20 Court Building
REGIONAL OFFICE :GOPALGONJ
1 GOPALGONJ
2 BHATIAPARA
3 BOLTALI
4 GHAGOIR
5 KASHIANI
6 BANOGRAM BAZAR
7 D.C COMPLEX
8 MOKSEDPUR
9 PANCHURIA
10 PATGATI
11 TONGIPARA
12 BASBARIA BAZAR
REGIONAL OFFICE : RAJBARI
1 BAHARPUR
2 BALIAKANDI
3 BELGACHI
4 GOALUNDO
5 GOALUNDO UPOZILLA COMPLEX
6 KASBA MAJAIL
7 MACHPARA
8 PANGSHA
9 PUNGSHA UPOZILLA COMPLEX
10 RAJBARI
11 RAJBARI UPOZILLA COMPLEX
12 KALUKHALI
GENERAL MANAGER’S OFFICECHATTOGRAM
PRINCIPAL OFFICE : CHATTOGRAM NORTH
1 AMIN JUTE MILLS
2 ASADGONJ
3 BAHADDARHAT
4 CHAKTAI
5 CHATTOGRAM CANTONMENT
6 CHOWKBAZAR
7 COURT HILLS
8 JAMALKHAN ROAD
9 KAGATIAHAT
10 KALURGHAT INDUSTRIAL ESTATE
11 KHATUNGONJ
12 KURBANIGONJ
13 MOHAMMAD TAKIRHAT
14 PUNCHLAISH
15 RAUZAN
16 CHATTOGRAM MEDICAL COLLEGE
17 SIRAJUDDOWLA ROAD
18 TERRI BAZAR
19 NA CHOWDHURY ROAD
20 FAKIRHAT BRANCH
21 HATHAZARI
22 KALUMUNSHIRHAT
23 NANGOLMORA
24 FATIKCHARI
PRINCIPAL OFFICE: CHATTOGRAM SOUTH
1 B.I.D.C.STEEL PLANT
2 BANUR BAZAR
3 BHATIARY
4 CDA MARKET
5 CUSTOM HOUSE
6 KALIBARI
7 CDA RESIDENTIAL AREA
8 MAJIRGHAT
9 MARIAMNAGAR
10 MIRSARAI
11 NEW MARKET
12 NIZAMPUR
13 CUET
14 PAHARTALI MAIN ROAD
15 PORT BRANCH
16 RAILWAY BUILDING
17 RANGUNIA
18 REAZUDDIN BAZAR
Sl. NAME OF BRANCH
19 ROAZARHAT
20 SADARGHAT
21 SANDVIP
22 SITAKUNDA
23 CHATTOGRAM UREA FERTILIZER LTD.
24 SHAH AMANAT (R:) INT. AIRPORT
382
YEAR OF EXCELLENCE
25 MIDAGALI
26 HALISHAHAR HOUSING ESTATE
27 MARINE ACADEMY
PRINCIPAL OFFICE : RANGAMATI
1 BAGAICHARI
2 BANARUPA
3 BARAICHARI
4 BARKAL
5 BELAICHARI
6 CHANDRAGHONA
7 DIGHINALA
8 GHAGRA
9 JURACHARI
10 KAPTAI
11 KAWKHALI
12 KHAGRACHARI
13 LANGADU
14 LAXMICHARI
15 MAHALCHARI
16 MANIKCHARI
17 MATIRANGA
18 NANIARCHAR
19 NEW COURT BUILDING
20 PANCHARI
21 RAJASTHALI
22 RAMGARH
23 RANGAMATI
24 Guimara
PRINCIPAL OFFICE : PATIYA
1 ANOWARA
2 BANSHKHALI
3 BOALKHALI
4 CHANDANAISH
5 DOHAZARI
6 KALARPOLE
7 KHAN BAHADUR BAZAR
8 LOHAGARA
9 MOULVI BAZAR
10 PATIYA
Sl. NAME OF BRANCH
11 ROWSHANHAT
12 RUSTOMHAT
13 SATKANIA
REGIONAL OFFICE : COX’S BAZAR
1 BADARKHALI
2 CHAKARIA
3 COX'S BAZAR
4 DULAHAZARA
5 KUTUBDIA
6 MOHESHKHALI
7 RAMU
8 TEKNAF
9 UKHIYA
10 EIDGHAH
REGIONAL OFFICE : BANDARBAN
1 ALI KADAM
2 BANDARBON
3 LAMA
4 NAIKHANGCHARI
5 ROWANGCHARI
6 RUMA
7 THANCHI
GENERAL MANAGER’S OFFICECOMILLA
PRINCIPAL OFFICE : COMILLA
1 ADDA BAZAR
2 BISE (COMILLA)
3 BARURA
4 BRAHMANPARA
5 BURICHONG
6 CHANDINA
7 CHOWDDAGRAM
8 COMILLA CANTONMENT
9 COURT BUILDING
10 DAUDKANDI
11 DAULATGONJ
12 DEBIDWAR
13 ELIOTGONJ
14 GOURIPUR BAZAR
15 HOMNA
16 KONGSHANAGAR
17 KOTBARI
18 MURADNAGAR
Sl. NAME OF BRANCH
19 NANGALKOT
20 NOYABAZAR
21 PAYALGACHA
22 RAIPUR BAZAR
23 RAMMOHAN BAZAR
24 COMPANYGANJ BAZAR
25 SREEKAIL
26 STATION ROAD,COMILLA
27 SUAGAZI
28 WAPDA BUILDING,COMILLA
29 BHARASAR BAZAR
30 PARAMTALA
31 MEGNA BR.
32 COMILLA SADAR DAKKHIN UPOZILA BR.
33 MONOHORGONJ BR.
34 TITAS
35 LALMAI UPOZILA
36 KHALILPUR BAZAR
37 MIA BAZAR
PRINCIPAL OFFICE: NOAKHALI
1 AMANULLAHPUR
2 BASHURHAT
3 CHAPRASHIRHAT
4 CHAR BATA
5 SUBARNA CHAR
6 CHAR MATUA
7 CHATKHIL
ADDITIONAL INFORMATION
Annual Report 2020
8 CHAUDHURYHAT
9 CHAUMUHANI
10 CHHAYANI BAZAR
11 COLLEGE ROAD
12 DAYARAMDI
13 HATIYA
14 KALAMUNSHI BAZAR
15 KANKIRHAT
16 KHALIFERHAT
17 MAIJDEE BAZAR
18 MAIJDEE COURT
19 PAURA BIPANI BITAN
20 SAGORIA BAZAR
21 SEBARHAT
22 SENBAGH
23 SHAHAPUR
24 SONAIMURI
25 SONAPUR OLD TOWN
26 TAMARUDDI
27 ZAMINDARHAT
28 HATIYA THANA PARISAD
PRINCIPAL OFFICE : FENI
1 BAKTERMUNSHI
2 CHHAGOLNAIYA
3 DAGAN BHUIYAN
4 FENI
5 FULGAZI
6 GUTHUMA BAZAR
7 ISLAMPUR ROAD
8 LAMUA BAZAR
9 LASHKER HAT
10 MAHIPAL
11 MATIAGODHA
12 MUNSHIRHAT
13 PANCHGACHIA
14 PARSHURAM
15 SADAR UPAZILA COMPLEX
16 SILONIA BAZAR
17 SONAGAZI
PRINCIPAL OFFICE : CHANDPUR
1 ALIGANJ
2 CHANDPUR
3 FARAJIKANDI
4 FARIDGANJ
5 GAZIPUR
6 HAIMCHAR
7 HAZIGANJ
8 KACHUA
9 KHILA BAZAR
10 NATUN BAZAR
11 MOTLABGANJ
12 NABIPUR
13 KALIAPARA
14 PURANBAZAR
15 RAHIMANAGAR
16 SACHAR BAZAR
17 SHAHRASTI
18 SHOLAGHAR
19 WARUK
20 SENGAR CHAR
PRINCIPAL OFFICE : B-BARIA
1 AKHAURA
2 ASHUGONJ
3 BANCHARAMPUR
4 BRAHMANBARIA
Sl. NAME OF BRANCH
5 CHANDPUR BAZAR
6 ZIA SARKARKHANA
7 CHATALPAR BAZAR
8 FANDAUK
9 GOKARNAGHAT
10 HARINBAR BAZAR
11 KOSBA
12 KUTIBAZAR
13 T.A. ROAD
14 MEDDA
15 NABINAGAR
16 NASIRNAGAR
17 NEW MARKET
18 RASULLABAD
19 RUPASDI BAZAR
20 SARAIL
21 SHYMAGRAM
22 SINGERBIL
23 MIRASHANI
24 BIJOYNAGAR
REGIONAL OFFICE : LAXMIPUR
1 BHAWANIGANJ BAZAR
2 CHANDRAGANJ
3 CHAR ALEXANDER
4 CHAR LORENCE
5 CHAR SITA
6 HAIDERGANJ
7 HAJIR HAT
8 KANCHANPUR
9 LAXMIPUR
10 RAIPUR
11 RAKHALIA BAZAR
12 RAMGANJ
GENERAL MANAGER’S OFFICESYLHET
PRINCIPAL OFFICE : SYLHET
1 AMJAD ALI ROAD
2 BAIRAGIR BAZAR
3 BALAGONJ
4 BEANIBAZAR
5 BISWANATH
6 CHARKHAI
7 COMPANYGANJ
8 COURT BUILDING
9 DAKSHIN FENCHUGONJ
Sl. NAME OF BRANCH
10 DHAKA DAKSHIN
384
YEAR OF EXCELLENCE
11 FENCHUGONJ SAR KARKHANA
12 GOLAPGONJ
13 GOWAINGHAT
14 JAINTAPUR
15 JAKIGANJ
16 KAJAL HAOR
17 KAMAL BAZAR
18 KANAIGHAT
19 KHADIMNAGAR
20 MOHAJANPATTY
21 OSMANI AIRPORT
22 FENCHUGONJ
23 PIRER BAZAR
24 CITY CORP.
25 STATION ROAD
26 SYLHET CANTONMENT
27 TAJPUR
28 TIKARPARA
29 TILLAGARH
30 SHAHJALAL UNIVERSITY OF SCIENCE & TEC
31 TAMABIL LAND PORT
PRINCIPAL OFFICE : MOULVIBAZAR
1 BARLEKHA
2 BHAIRABGONJ BAZAR
3 CHANDGRAM
4 CHANDNIGHAT
5 DIGHIRPAR BAZAR
6 FOREIGN EXCHANGE
7 KADAMHATA
8 KAMALGONJ
9 KAMALPUR BAZAR
10 KULAURA
11 COURT ROAD
12 MOULVIBAZAR
13 MUNSHIBAZAR
14 PHULARTAL BAZAR
15 RAJNAGAR
16 SARKER BAZAR
17 SATGAON
18 SHAHBAZPUR
19 SHAMSHERNAGAR
20 SREEMONGAL
21 TARAPASHA BAZAR
22 JURI BR.
REGIONAL OFFICE : SUNAMGONJ
1 BISWAMVARPUR
2 CHHATAK
3 DERAI
4 DHARMAPASHA
5 DOWARA BAZAR
6 JAGANNATHPUR
7 MADHYANAGAR
8 SACHNABAZAR
9 SULLAH
10 SUNAMGANJ
11 TAHIRPUR
12 DAKKHAIN SUNAMGONJ
PRINCIPAL OFFICE : HABIGONJ
1 AJMIRIGANJ
2 BAHUBAL
3 BANIYACHONG
4 CHUNARUGHAT
5 HABIGANJ
6 KAKAILCHAO
7 LAKHAI
8 MADHABPUR
9 NABIGANJ
10 SHAISTAGANJ
11 ENATGONJ
12 CHOWDHURY BAZAR
13 AUSHKANDI
GENERAL MANAGER’S OFFICEBARISAL
PRINCIPAL OFFICE : BARISAL
1 AGAILJHARA
2 BAKERGONJ
3 BANARIPARA
4 BARISAL CADET COLLEGE
5 CHAKHAR
6 CHARAMUDDI
7 CHOWK BAZAR
8 COLLEGE ROAD
9 DHAMURIA
10 GOILA
11 GOURNADI
12 GUTHIA
13 HALTABANDAR
14 HIZLA
15 JHALAKATI COURT BUILDING
Sl. NAME OF BRANCH
16 KAMARKHALI
17 KATHALIA
18 KHANPURA
19 MEDAKUL
20 MEHENDIGONJ
21 MULADI
22 NACHAN MAHAL
23 NALCHIRA
24 NALCHITY
25 NEAMATI BANDAR
26 RAJAPUR
27 SAGARDI
28 SHAHEBERHAT
29 C & B ROAD
30 TORKEY BANDAR
31 WAZIRPUR
32 MOLLAR HAT
33 ARATDHAR PATTY
34 PAISARHAT
35 BARISAL UNIVERSITY
36 KAZIR HAT
ADDITIONAL INFORMATION
Annual Report 2020
PRINCIPAL OFFICE : PATUAKHALI
1 AMTALI
2 BAKULBARIA
3 BAMNA
4 BARGUNA COURT BUILDING
5 BAUPHAL
6 BETAGI
7 BOGA BANDAR
8 DASHMINA
9 GALACHIPA
10 KALAPARA BANDAR
11 MOHIPUR
12 MOUKARAN BAZAR
13 NEW TOWN
14 PATHARGHATA
15 PATUAKHALI
16 SUBIDKHALI
17 ULANIA BAZAR
18 DUMKI
19 PAYRA BANDAR
20 TALTOLI
REGIONAL OFFICE : BHOLA
1 BHOLA
2 BORHANUDDIN
3 CHARFASHION
4 DAULATKHAN
Sl. NAME OF BRANCH
5 GAZARIA
6 LALMOHAN
7 MOHAJANPATTY
8 MONPURA
9 NORTH DIGHOLDI
10 TAJUMUDDIN
REGIONAL OFFICE : PIROJPUR
1 BHANDARIA
2 ZIANAGAR
3 KOWKHALI
4 MATHBARIA
5 NAZIRPUR
6 PARERHAT
7 PIROJPUR
8 SREERAMKATI
9 SWARUPKATI
10 TUSHKHALI
GENERAL MANAGER’S OFFICEKHULNA
PRINCIPAL OFFICE : KHULNA
1 BANIAKHALI BAZAR
2 BATIAGHATA
3 BOYRA
4 CHALNA BAZAR
5 CUSTOM HOUSE
6 DAULATPUR COLLEGE ROAD
7 DIGHOLIA
8 DUMURIA
9 K.D.A.NEW MARKET
10 KAZDIA
11 KHALISHPUR
12 KHULNA SHIPYARD
13 KOYRA
14 PAIKGACHA
15 PHULBARIGATE
16 PHULTALA
17 RUPSA MARKET
18 SHAHPUR
19 SHIROMONI INDUSTRIAL AREA
20 TEROKHADA
21 SIR IQBAL ROAD
PRINCIPAL OFFICE : JESSORE
1 ALFA MILLGATE
Sl. NAME OF BRANCH
2 BAGANCHRA
3 BAGHERPARA
4 BARINAGAR
5 BASUNDIA
6 BENAPOLE
7 BHATPARA
8 CHARAVITA
9 CHINATOLA
10 SAGARDARI BAZAR
11 CHOWGACHA
12 CHURAMANKATI
13 DHALGRAM
14 GARIBSHAH SARAK
15 JESSORE BAZAR
16 JESSORE CANTT.
17 JHIKARGACHA
18 KARBALA ROAD
19 KESOBPUR
20 MONIRAMPUR
21 NARIKELBARIA
22 BISE
23 NOAPARA
24 PAR BAZAR
25 PURAPARA
26 R.N.ROAD
27 RAIL GATE
28 RAJGONJ
29 RUPDIA
30 SALUA BAZAR
31 SARSHA
32 TRIMOHONI
33 ULASHI
34 KHAZURA BAZAR
PRINCIPAL OFFICE : SATKHIRA
1 ASSASUNI
2 BUDHATA
3 DEBHATTA
4 GOYRAH BAZAR
5 KUMIRA BAZAR
6 JHAUDANGA
7 KALAROA
8 KALIGONJ
386
YEAR OF EXCELLENCE
9 KAMAN NAGAR
10 KHALISHKHALI BAZAR
11 KULIA BAZAR
12 MAGURA BAZAR
13 PARULIA
Sl. NAME OF BRANCH
14 SATKHIRA
15 SHYAMNAGAR
16 TALA
17 BHOMRA BR. SATKHIRA
PRINCIPAL OFFICE : JHENAIDAH
1 BARO BAZAR
2 BARODHOPADI BAZAR
3 BUNAGATI BAZAR
4 GARAGONJ
5 HARINAKUNDU
6 HATGOPALPUR
7 JHENAIDAH
8 JHENAIDAH CADET COLLEGE
9 KALIGONJ
10 KOLABAZAR
11 KOTCHANDPUR
12 LADIES BR.
13 MAGURA
14 MOBARAKGONJ SUGAR MILL
15 MODHUPUR
16 MOHAMMADPUR
17 MOHESHPUR
18 NUTAN BAZAR
19 RABINARIKELBARIA
20 SAILKUPA
21 SHALIKHA
22 SHEIKHPARA BAZAR
23 SREEPUR
REGIONAL OFFICE : BAGERHAT
1 BAGERHAT
2 CHITALMARI BAZAR
3 FAKIRHAT
4 GILATALA
5 GOURAMBHA BAZAR
6 KACHUA
7 MAIN ROAD
8 MOLLAHAT
9 MONGLA
10 MORELGONJ
11 RAMPAL
12 RAYENDA BAZAR
13 MONGLA PORT
14 COURT BUILDING
REGIONAL OFFICE : NARAIL
1 CHACHURI BAZAR
2 GOBRA
3 KALIA
4 ZILA PARISHAD
5 LAXMIPASHA
6 MOHAJAN BAZAR
7 NARAIL
8 PIROLI BAZAR
9 RUPGONJ
10 TULARAMPUR
11 LOHAGARA BAZAR
GENERAL MANAGER’S OFFICERAJSHAHI
PRINCIPAL OFFICE : RAJSHAHI
1 BAGHA
2 BHAWANIGONJ
3 CHARGHAT
4 DAKRA
5 MOUGACHI BAZAR
6 DURGAPUR
7 GODAGARI
8 GREATER ROAD
9 MOHANPUR
10 MONIGRAM
11 MOTIHAR
12 PABA
13 POLICE ACADEMY
14 PUTHIA (RAJSHAHI)
15 RAJSHAHI CADET COLLEGE
16 RAJSHAHI COURT BUILDING
17 RAJSHAHI MEDICAL COLLEGE HOSPITAL
18 SAPURA INDUSTRIAL ESTATE
19 TANORE
20 RAJSHAHI RAILWAY COMPLEX
21 KASBA TANGRAMARY
22 MUNDUMALAHAT
PRINCIPAL OFFICE : NAOGAON
1 ABADPUKURHAT
2 ATRAI
3 BADALGACHI
4 BHANDERPUR
5 BHAWANIPUR BAZAR
6 DHAMOIRHAT
7 K. D. MORE
Sl. NAME OF BRANCH
8 MANDA
9 MOHADEVPUR
10 MOHISHBATHAN
11 MONGALBARIHAT
12 NAOGAON
13 NIAMATPUR
14 PATNITALA
15 PORSHA
16 RANINAGAR
17 SAPAHAR
18 T.T.D.C.
19 TRIMOHONI
PRINCIPAL OFFICE : PABNA
1 ARAMBARIA
2 ATGHORIA
3 BAGHOIL
4 BANWARINAGAR
5 BERA
ADDITIONAL INFORMATION
Annual Report 2020
6 BHANGOORA BAZAR
7 CHATMOHAR
8 DASURIA
9 EKDANTA
10 GOPALPUR (Z.B.)
11 ISHURDI
12 JORGACHA
13 PABNA TRADE CENTRE
14 PABNA
15 SANTHIA
16 SUZANAGAR
17 ANANTA BAZAR
18 KARANJA BAZAR
PRINCIPAL OFFICE : SIRAJGONJ
1 BAGHABARIGHAT
2 CHANDAIKONA
3 CHOWBARI
4 DHANGARA
5 ENAYETPUR
6 JAMTOIL
7 KAZIPUR
8 KHASH KAWLIA
9 LAHIRI MOHANPUR
10 NAOGAON BAZAR
11 QUAMI JUTE MILLS
12 SHAHZADPUR
Sl. NAME OF BRANCH
13 SHOHAGPUR
14 SIRAJGANJ
15 SONAMUKHI
16 TARASH
17 ULLAPARA
18 SIRAJGANJ COURT BHABAN
19 HATIKUMRUL
20 NATUAR PARA
21 SADANANDAPUR
PRINCIPAL OFFICE : BOGRA
1 ADAMDIGHI
2 AZIZUL HOQUE COLLEGE
3 B.P.U.A
4 BALUAHAT
5 BOGRA BAZAR
6 BOGRA CANTONMENT
7 COLLEGE ROAD
8 DHUNAT
9 DUPCHANCHIA
10 DURGAPUR
11 GABTALI
12 GANG NAGAR
13 GOHAIL ROAD
14 GOHAILHAT
15 GUZIA
16 HARIKHALIHAT
17 JAMURHAT
18 KAHALOO
19 NAMUZAHAT
20 NANDIGRAM
21 NASHARATPUR
22 RANABAGHA BAZAR
23 SANTAHAR
24 SHARIAKANDI
25 SHERPUR
26 SHERPUR ROAD
27 SHIBGONJ
28 SONATALA
29 TALORA
30 SHAHAR PUKUR
31 SHAHID ZIAUR RAHMAN MEDICAL COLLEGE
PRINCIPAL OFFICE : NATORE
1 AHMEDPUR
2 BAGATIPARA
3 BARAIGRAM
Sl. NAME OF BRANCH
4 CHANCHKOIR
5 DAYARAMPUR
6 GURUDASHPUR
7 OLD BUS STAND
8 LALPUR
9 NATORE
10 NATORE STATION BAZAR
11 FULBAGAN
12 SINGRA
13 NOLDHANGA HAAT
REGIONAL OFFICE : JOYPURHAT
1 AKKELPUR
2 HATIL
3 JOYPURHAT
4 JOYPURHAT EAST
5 KALAI
6 KHETLAL
7 PANCHBIBI
8 PUNATHAT
REGIONAL OFFICE : CHAPAINAWABGONJ
1 BHOLAHAT
2 CHAPAINAWABGONJ
3 GOMASTAPUR
4 NEW MARKET
5 NACHOLE
6 ROHANPUR
7 SHIBGONJ
8 SONA MASJID
GENERAL MANAGER’S OFFICERANGPUR
PRINCIPAL OFFICE : RANGPUR
1 BADARGONJ
2 CHATRAHAT
3 DHAP
4 GANGACHARA
5 HARAGACHA
6 MAHIGONJ
7 JAIGIRHAT
8 KACHARIBAZAR
9 KAWNIA
388
YEAR OF EXCELLENCE
10 KHALASHPIR
11 RANGPUR BAZAR
12 LALDIGHIHAT
Sl. NAME OF BRANCH
13 MIRBAGH
14 MITHAPUKUR
15 PIRGACHA
16 PIRGONJ
17 RANGPUR CANTONMENT
18 TARAGANJ
PRINCIPAL OFFICE : KURIGRAM
1 ADITHMARI
2 BARABARIHAT
3 BHURUNGAMARI
4 CHILMARI
5 FULBARI
6 HATIBANDHA
7 KALIGANJ
8 KURIGRAM
9 LALMONIRHAT
10 MOHISH KHOCHA
11 NAGESWARI
12 PATGRAM
13 RAJARHAT
14 ULIPUR
15 BURIMARI
16 KAKINA BAZAR
PRINCIPAL OFFICE : GAIBANDHA
1 BHARATKHALI
17 SONAHAT LANDPORT
2 BIRATHAT
3 BONARPARA
4 FASHITOLA
5 FULCHARI
6 GAIBANDHA
7 GOBINDAGONJ
8 KAMARJANI
9 KAMDIA
10 D. B. ROAD
11 MOHIMAGONJ
12 PALASHBARI
13 PURANBAZAR
14 SADULLAPUR
15 SHAGHATA
16 SUNDARGONJ
PRINCIPAL OFFICE : DINAJPUR
1 AFTABGONJ
2 BHAWANIPUR BAZAR
Sl. NAME OF BRANCH
3 BINNA KURI
4 BIRAMPUR
5 BIRGONJ
6 BIROL
7 CHIRIR BANDAR
8 COURT BUILDING
9 FARAKKABAD
10 GHORAGHAT
11 HAKIMPUR
12 JOYNANDAHAT
13 KACHINIAHAT
14 KAHAROLE
15 KHANSAMA
16 MILL ROAD
17 NAWABGONJ
18 OSMANPUR
19 PAKERHAT
20 PARBATIPUR
21 HUGLI PARA .
22 PHULBARI
23 PULHAT BRANCH
24 RANIGONJ BAZAR
25 SETABGONJ
26 SHEIKHPURA
27 STATION ROAD
28 SUIHARI
29 MADDHAPARA KATHIN SHILA PRAKALPA
30 BARA PUKURIA KOYLAKHANI PRAKALPA
31 SHAHID MAHBUB SENANIBASH SHAKHA
PRINCIPAL OFFICE : THAKURGAON
1 AKHANAGAR
2 ATWARI
3 BALIADANGI
Sl. NAME OF BRANCH
4 BHAJANPUR
5 BODA
6 CHOWDHURYHAT
7 DEBIGONJ
8 GOREYAHAT
9 HARIPUR
10 KHOCHABARIHAT
11 NEEKMARAD
12 PANCHAGARH
13 PIRGONJ
14 RANISANKAIL
15 RUHIA
16 SHIBGONJ
17 TETULIA
18 THAKURGAON
19 THAKURGAON SUGAR MILLS
20 ZABARHAT
21 SHABDAL HAT
REGIONAL OFFICE : NILPHAMARI
1 BHABANIGONJ
2 CHILAHATI
22 BANGLABANDHA LANDPORT
3 DIMLA
4 DOMAR
5 JALDHAKA
6 KISHOREGONJ
7 MIRGONJ
8 NILPHAMARI
9 SAIDPUR
10 SAIDPUR CANTONMENT
ADDITIONAL INFORMATION
Annual Report 2020
AUTHORISED DEALER BRANCHESOF SONALI BANK LIMITED
S/N BRANCH NAME AD BR. CODE SWIFT CODE
1 AGRABAD CORPORATE, CHITTAGONG 0342 BSONBDDHAGR
2 B-WAPDA CORPORATE, DHAKA 0360 BSONBDDHBWP
3 BANGABANDHU AVENUE CORPORATE, DHAKA 0338 BSONBDDHBBA
4 BAHADDARHAT, CHITTAGONG 0367 BSONBDDHBHT
5 BOGRA CORPORATE, BOGRA 0357 BSONBDDHBOG
6 BRAHMANBARIA, BRAHMANBARIA 0375 BSONBDDHBRM
7 CHANDPUR, CHANDPUR - --
8 CHAPAINAWABGONJ, CHAPAINAWABGONJ 0363 BSONBDDHCHP
9 CHAWKBAZAR, DHAKA 0335 BSONBDDHCWK
10 CHATAK, SUNAMGONJ 0374 BSONBDDHCTK
11 COMILLA CORP., COMILLA 0350 BSONBDDHCCB
12 DARGAGATE CORP., SYLHET 0348 BSONBDDHDGT
13 DAULATPUR, KHULNA 0353 BSONBDDHDAU
14 DHAKA CANTT. CORP., DHAKA 0361 BSONBDDHCNT
15 DILKUSHA CORP., DHAKA 0332 BSONBDDHDIL
16 DINAJPUR CORP., DINAJPUR 0359 BSONBDDHDNJ
17 FOREIGN EXCHANGE CORP., DHAKA 0336 BSONBDDHFEB
18 GREEN ROAD, DHAKA 0369 BSONBDDHGRN
19 GULSHAN, DHAKA 0364 BSONBDDHGUL
20 HABIGANJ, HABIGANJ - --
21 HOTEL SHERATON, DHAKA 0370 BSONBDDHHST
22 JESSORE CORP., JESSORE 0354 BSONBDDHJSR
23 KHATUNGONJ, CHITTAGONG 0344 BSONBDDKHA
24 KHULNA CORP., KHULNA 0352 BSONBDDHKHU
25 KUSHTIA, KUSHTIA 0355 BSONBDDHKST
26 FOREIGN EXCHANGE, NARAYANGONJ 0373 BSONBDDHLAD
27 LALDIGHI CORP., CHITTAGONG 0343 BSONBDDHCTG
28 LOCAL OFFICE, DHAKA 0330 BSONBDDHLOD
29 LALMONIRHAT, LALMONIRHAT 0368 BSONBDDHLAL
30 MOULOVIBAZAR, MOULOVIBAZAR - --
31 MYMENSINGH, MYMENSINGH 0341 BSONBDDHMYM
32 NARAYANGONJ CORP., NARAYANGONJ 0339 BSONBDDHNAR
33 RAILWAY BUILDING, CHITTAGONG 0345 BSONBDDHRWB
34 RAJSHAHI CORP., RAJSHAHI 0356 BSONBDDHRAJ
35 RAMNA CORP., DHAKA 0333 BSONBDDHRAM
36 RANGPUR CORP., RANGPUR 0358 BSONBDDHRNG
37 SADARGHAT CORPORATE, DHAKA 0334 BSONBDDHSDR
38 SATKHIRA, SATKHIRA 0366 BSONBDDHSAT
39 SHILPA BHABAN CORPORATE, DHAKA 0331 BSONBDDHSLP
40 SIRAJGONJ, SIRAJGONJ - --
41 SUNAMGONJ, SUNAMGONJ 0356 BSONBDDHSNG
42 SYLHET CORPORATE, SYLHET - --
43 TEKNAF, COX’S BAZAR - --
44 WAGE EARNER'S CORPORATE, DHAKA 0337 BSONBDDHWEB
45 WAGE EARNER'S CORPORATE, CHITTAGONG 0346 BSONBDDHWEC
46 Uttara Model Town, Dhaka 0376 --
47 Panchagarh, Panchagarh 0377 --
48 Hazrat Shahjalal International Airport, Dhaka 0378 --
390
YEAR OF EXCELLENCE
SONALI BANK LIMITED
YEAR OF FIRM COMMITMENT
378
Subsidiary Company of SBL
SBL Representation Office
Overseas Branches of SBL
Number of Exchange Houses
1. Sonali Bank (UK) lTd. - 2 Branches in UK
2. Sonali Exchange Co. Incorporation (SECI) - 10 Branches in USA
1. Embassy of Bangladesh, Riyadh, KSA
2. Consulate General of Bangladesh, Jeddah
3. Embassy of Bangladesh, Kuwait, KSA
1. Western Union2. X-press Money3. IME4.Trans Fast
5. Merchantrade6. Xoom Paypal7. RIA Financial Services8.Hello Paisa South Africa
1. SBL Kolkata Branch
2. SBL Shiliguri Branch
NOSTRO arrangement of SBL with Several countries
Note
1
1
1
1
1
1
3
11
2
11
1
1
3
4
8
3
4314
8
7
2
2
10 10
6
1
1
1
2
4
GLOBAL REMITTANCE NETWORK OF SBL
ADDITIONAL INFORMATION
Annual Report 2020
Annual Report 2019
ADDITIONAL INFORMATION
379
Subsidiary Company of SBL
SBL Representation Office
Overseas Branches of SBL
Number of Exchange Houses
1. Sonali Bank (UK) lTd. - 2 Branches in UK
2. Sonali Exchange Co. Incorporation (SECI) - 10 Branches in USA
1. Embassy of Bangladesh, Riyadh, KSA
2. Consulate General of Bangladesh, Jeddah
3. Embassy of Bangladesh, Kuwait, KSA
1. Western Union2. X-press Money3. IME4.Trans Fast
5. Merchantrade6. Xoom Paypal7. RIA Financial Services8.Hello Paisa South Africa
1. SBL Kolkata Branch
2. SBL Shiliguri Branch
NOSTRO arrangement of SBL with Several countries
Note
1
1
1
1
1
1
3
11
2
11
1
1
3
4
8
3
4314
8
7
2
2
10 10
6
1
1
1
2
4
SONALI BANK LIMITED
YEAR OF FIRM COMMITMENT
378
Subsidiary Company of SBL
SBL Representation Office
Overseas Branches of SBL
Number of Exchange Houses
1. Sonali Bank (UK) lTd. - 2 Branches in UK
2. Sonali Exchange Co. Incorporation (SECI) - 10 Branches in USA
1. Embassy of Bangladesh, Riyadh, KSA
2. Consulate General of Bangladesh, Jeddah
3. Embassy of Bangladesh, Kuwait, KSA
1. Western Union2. X-press Money3. IME4.Trans Fast
5. Merchantrade6. Xoom Paypal7. RIA Financial Services8.Hello Paisa South Africa
1. SBL Kolkata Branch
2. SBL Shiliguri Branch
NOSTRO arrangement of SBL with Several countries
Note
1
1
1
1
1
1
3
11
2
11
1
1
3
4
8
3
4314
8
7
2
2
10 10
6
1
1
1
2
4
GLOBAL REMITTANCE NETWORK OF SBL
392
YEAR OF EXCELLENCE
SONALI BANK LIMITED OVERSEAS BRANCHES
SONALI BANK LIMITED REPRESENTATIVE OFFICES
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]
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]
ADDITIONAL INFORMATION
Annual Report 2020
SONALI BANK LIMITED ASSOCIATE IN UNITED KINGDOM
Chief Executive O�ce, 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]
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]
394
YEAR OF EXCELLENCE
SONALI EXCHANGE COMPANY
A SUBSIDIARY OF SONALI BANK LIMITED
Corporate O�ce, Manhattan Manhattan Branch
336 East 45th Street 8th Floor 336 East 45th Street 8th Floor
NY-10017, New York, USA NY-10017, New York, USA
Tel: 001-212-808-0790 (Office) Tel: 001-212-808-0790(Office)
Cell: 001-646-957-2283 Cell: 001-917-204-0315
Fax: 001-212-808-0791 Fax: 001-212-808-0791
E-mail: [email protected] E-mail: [email protected]
Brooklyn Branch Astoria Branch
474, Macdonald Avenue, 1st Floor 29-31 Newtown Avenue, Astoria
Brooklyn, NY-11218, New York, USA NY-11102, New York, USA
Tel: 001-718-853-9558(Off.) Tel: 001-718-777-7001(Off.)
Cell: 001-917-670-1215 Cell: 001-646-509-7530
Fax: 001-718-853-9568 Fax: 001-718-777-1237
E-mail: [email protected] E-mail: [email protected]
Jackson Heights Branch Atlanta Branch
37-17 74th Street, Suite#2R 4897, Buford Highway, Suite #230
Jackson Heights, NY-11372, New York, USA Chamblee, Georgia GA -30341, USA
Tel: 001-718-507-6002 (Office) Tel: 001-770-936-9906 (Office)
Cell: 001- 646-371-6299 Cell: 001-678-772-2599
Fax: 001-718-507- 6295 Fax: 001-770-936-9907(off)
E-mail: [email protected] E-mail: [email protected]
ADDITIONAL INFORMATION
Annual Report 2020
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]
396
YEAR OF EXCELLENCE
AD Authorized Dealer ADB Asian Development BankADP Annual Development ProgramADR Alternative Dispute ResolutionAGM Annual General MeetingALCO Asset Liability CommitteeALM Asset Liability ManagementAML Anti Money LaunderingAMLC Anti Money Laundering CommitteeATA Anti- Terrorism ActATM Automated Teller MachineBACH Bangladesh Automated Clearing HouseBACPS Bangladesh Automated Cheque Processing SystemBAMLCO Branch Anti Money Laundering Compliance OfficerBAS Bangladesh Accounting StandardsBB Bangladesh BankBBTA Bangladesh Bank Training AcademyTK. Bangladesh Tk.BEFTN Bangladesh Electronic Fund Transfer NetworkBFIU Bangladesh Financial Intelligence UnitBFRS Bangladesh Financial Reporting StandardsBIBM Bangladesh Institute of Bank ManagementBRDB Bangladesh Rural Development BoardBRPD Banking Regulation and Policy DepartmentBSA Bangladesh Standards on AuditingBSEC Bangladesh Securities and Exchange CommissionCAMELS Capital Adequacy, Asset Quality, Management, Earnings, Liquidity and Sensitivity to Market RiskCAMLCO Chief Anti Money Laundering Compliance OfficerCAR Capital Adequacy RatioCBS Core Banking SoftwareCDBL Central Depository Bangladesh LimitedCDC Central Data CentreCDMS Core Deposit Monitoring SystemCEO Chief Executive OfficerCFO Chief Financial OfficerCFT Combating Financing of TerrorismCIB Credit Information BureauCRG Credit Risk GradingCRM Credit Risk ManagementCRR Cash Reserve RequirementCSR Corporate Social ResponsibilityCTR Cash Transaction ReportDCFCL Departmental Control Function Check ListDRS Disaster Recovery SystemDSE Dhaka Stock Exchange LimitedEAS Early Alert SystemEDF Export Development FundEEF Equity Entrepreneurship FundEFT Electronic Fund TransferEGBMP Enterprize Growth Bank Modernization ProjectEPS Earning Per ShareERM Environmental Risk managementERQ Exporter’s Retention QuotaETPs Effluent Treatment PlantsFBP Foreign Bills PurchasedFDI Foreign Direct InvestmentFY Financial Year (July-June) GAAP Generally Accepted Accounting PrinciplesGDP Gross Domestic ProductGNI Gross National IncomeGOB Government of BangladeshGTS Government Transaction SystemHRDD Human Resources Development Division IAS International Accounting StandardIBP Inland Bills Purchased
ICandCD Internal Control and Compliance DivisionICAB The Institute of Chartered Accountants of BangladeshICMAB The Institute of Cost and Management Accountants of BangladeshICT Information and Communication TechnologyIMF International Monetary FundIT Information TechnologyKSA Kingdom of Saudi ArabiaKYC Know Your CustomerLDR Loan Deposit RatioMANCOM Management CommitteeMBID Merchant Banking and Investment DivisionMCR Minimum Capital RequirementMCO Maximun Cumulative OutflowMDGs Millennium Development GoalsMICR Magnetic Ink Character RecognitionMLPA Money Laundering Prevention ActMSME Micro, Small and Medium EnterpriseMTMF Medium Term Macro Economic Framework MVA Market Value AddedNAV Net Asset ValueNCBs Nationalised Commercial BanksNGO Non Government OrganizationNII Net Interest IncomeNPL Non Performing LoanNRB Non Resident BangladeshiOBU Off-Shore Banking UnitOMIS Overview Management Information SystemPC Packing CreditPEPs Politically Exposed PersonsPMIS Personal Management Information SystemPOS Point of SalesPRSP Poverty Reduction Strategy PaperRBCA Risk Based Capital AdequacyRBIA Risk Based Internal AuditREPO Repurchase AgreementRMD Risk Management DivisionRMS Remmittance Management SystemRMU Risk Management UnitROA Return on AssetROE Return on EquityROI Return on InvestmentRWA Risk Weighted AssetsSAFA South Asian Federation of AccountantsSBCS Sonali Bank Clearing SystemSBL Sonali Bank LimitedSBSC Sonali Bank Staff CollegeSBTI Sonali Bank Training InstituteSCB State-owned Commercial BankSECI Sonali Exchange Company IncorporatedSIL Sonali Investment LimitedSLR Statutory Liquidity RatioSMA Special Mention AccountSMEs Small and Medium EnterprisesSOE State Owned EnterpriseSREP Supervisory Review Evaluation ProcessSRP Supervisory Review ProcessSTR Suspicious Transaction ReportSWIFT Society for Worldwide Interbank Financial Telecommunication TOR Terms of ReferenceTP Transaction ProfileUAE United Arab EmiratesUCCA Upazila Central Co-operative AssociationUK United KingdomUN United NationsUSA United States of AmericaVAT Value Added TaxWDV Written Down ValueWEO World Economic Outlook WTO World Trade Organization
LIST OF ACRONYMS
ADDITIONAL INFORMATION
Annual Report 2020
STANDARD DISCLOSURE INDEXDisclosure checklist to the key sections of the Annual Report 2020
ITEM PAGE NO.
Corporate objectives, values and structure
Vision and mission 10-11
12-13
16-18
14
24-43,127-128
4-5,49-57,53-56,58-90
49-56,58-90,128-143173-188,190-203
75-76,122-123,146-171,195
15,178-179
54,86,173-179
64,70-75,88,180-181,186-188
68,186,188,193
173-175
80,186-187
173-188
224-248
331-348,363-376
136-139,238,267-273
136-138
19,26-27,58-90,129-143,154-171,238
130-132,138,211-223
Overall strategic objectives
Core values and code of conduct/ethical principles
Profile of the company
Director's profiles and their representation on Board of other companies and 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
Description of the performance of the various activities / products / segments of the company and group companies during the period under reviewA brief summary of the business and other risks facing the organization and steps taken to effectively manage such risks
A general review of the future prospects/ outlook
Information on how the company contributed to its responsibilities towards the staff (including Health and safety)Information on company's contribution to the national exchequer and to the economy
Sustainability Reporting
Social Responsibility Initiatives (CSR)
Environment related Initiatives
Environmental & Social Obligations
Integrated Reporting
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
Impairment of assets
Changes in accounting policies/changes in accounting estimates
Accounting policy on subsidiaries
Segment information
Comprehensive segment related information bifurcating segment revenue, segment results and segment capital employedInformation regarding different segments and units of entity as well as non segmental entities/units
Segment analysis of
Segment revenue
Segment results
Turnover
Operating profit
Carrying amount of net segment assets
398
YEAR OF EXCELLENCE
ITEM PAGE NO.
Financial statements
Disclosure of all contingencies and commitments
Comprehensive related party disclosure
Disclosures of remuneration and facilities provided to the Directors and CEO & 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
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
Audit committee (composition, role, meetings, attendance etc.), internal control and risk management
Ethics and compliance
Remuneration and other committees of Board
Human capital
Communication to shareholders and stakeholders
Information available on website Other information
Management review and responsibility
Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports
Any other investor friendly information
Description of Risk Management Framework
Risk Mitigation Methodology
Disclosure of Risk Reporting
Stakeholders information
Distribution of shareholding (number of shares as well as category wise e.g. promoter group etc.)
Shares held by Directors/executives and relatives of Directors/executives
Redressal of investors complaints
Graphical/ pictorial data
Earnings per share
Net assets
Stock performance
Shareholders' funds
Return on shareholders' fund
212, 218, 237, 297-198
95-99, 102,305
314-316
211-376
28-43, 92-104
95-99
13, 102, 106-116
96-97, 98-99, 119-123
102, 126
102, 176-179
www,sonalibank.com.bd16-18
103,190-195
97-98,119-121
124-126
75-76,122-123,146-171
124-128
126
130-132
ADDITIONAL INFORMATION
Annual Report 2020
ITEM PAGE NO.
Horizontal/ vertical analysis including: operating performance (income statement)
Total revenue
Operating profit
Profit before tax
Profit after tax
EPS
Statement of financial position (balance sheet)
Shareholders fund
Property plant and equipment
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
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
Retained by the entity
Market share information of company's product/ services
Economic value added
Presentation of financial statements
Layout of contents
Theme on the cover page
Use of photographs
Use of charts and graphs
Approval of financial statements and holding AGM
Date of approval of financial statements by BoD: 30.06.2021
Date of 14th Annual General Meeting (23.08.2021)
Additional disclosures
Report on sustainable banking
Human resource accounting
Report on financial inclusion
Customer care
Corporate Social Responsibility (CSR)
136
129, 136
129-135, 138
140-142
6-7
28-29,31-45,70-71,80,119,122,126,177-178
1
76-81,85,130-132,136-141,155-156,160-162
218
9
176-179
180-181
182-185
186-187
173-175
400
YEAR OF EXCELLENCE
ITEM PAGE NO.
Government transactions and works related to social responsibility
Contribution to national economy
Awards and recognitions
Specific areas for banking sector
Disclosure of ratings given by various rating agencies for instruments issued by / of bank e.g. FD, CD, tier 1 perpetual bonds
Details of advances portfolio classification wise as per the direction issued by the central bank of the respective countries
Disclosure for non performing assets
Movement of NPA
Sector wise breakup of NPA
Movement of provisions made against NPA
Details of accounts restructured as per regulatory guidelines
Maturity pattern of key assets and liabilities (ALM)
Classification and valuation of investments as per regulatory guidelines / 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
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
The break-up of 'provisions and contingencies' included in profit and loss account
Disclosure under regulatory guidelines
Details of non-statutory investment portfolio
Disclosure in respect of assets given on operating and finance lease
Disclosures for derivative investments
Bank's network: List of branches
187
188
196-197
251-259
158-162,260-273
270-273,289-290
266
223,249-259,273-289
230-233,256-269,317-318,325-329
260-273
297-298,308-309
106-116,154-171,249-250,292-296
231-248
260-261
249,256-259
377-395
129,133-135
ADDITIONAL INFORMATION
Annual Report 2020
BRANCH NETWORKWITH BANGLADESH MAP
SerialNo.
Name of GM O�ce
No. of Branches(Including Corp.)
01 Dhaka-1 108
108
108
108
108
108
108
108
108
108
108
Dhaka-2
Mymensing
Sylhet
Comilla
Chittagong
Barisal
Khulna
Dhaka-1
Dhaka-1
Dhaka-1
02
03
05
04
06
07
08
09
10
11
TOTAL 1226
Sonali Bank Limited GM O�ce WiseBranch Network with Bangladesh Map
Indicates District Total Number of Branches
Indicates GM Headed Branch (3 in Dhaka City)
1. Local O�ce2. Bangabandhu Avenue Corp.3. Ramna Corp.
Note: ............................................................................................................................................................................................................
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Annual Report 202035-42,44 Motijheel Commercial Area, Dhaka-1000, BangladeshPABX :9550426-31, 33, 34, Fax: 88-02-9561410, 88-02-9552007E-mail: [email protected], SWIFT: BSONBDDH
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Annual Report 2020
