" Financial Performance Analysis of Sonali Bank, Bangladesh"

1. i
Dedication
Dedicated to my respected parents and
all well-wishers who have direct or
indirect contribution to my life.

2. ii
Letter of submission
February 5, 2018
Md. Ataur Rahman
Assistant Professor
Department of Finance and Banking
Begum Rokeya University, Rangpur.
Subject: Submission of Internship Report.
Dear Sir,
I would like to inform you that I have completed my internship report on topic
“Financial performance analysis of Sonali Bank limited” of Bangladesh. I have
collected information from all available sources in a realistic way. While preparing
report, I have tried to follow your instruction based on systematic manner.
I sincerely hope that this report meets your approval and also expects that I will get
your kind consideration regarding acceptance of this report.
Sincerely Yours,
…………………………
(Md. Shohel Rana)
ID No.: 1220033
Reg. No.: 000004433
Session: 2012-2013
4th
Year 2nd
Semester
Department of Finance and Banking
Begum Rokeya University, Rangpur

3. iii
Declaration
This is Md. Shohel Rana, hereby declares that the present internship report on
“Financial Performance Analysis of Sonali Bank Limited” uniquely prepared by me
after completion of three months internship of Sonali Bank limited. I also confirm that
this report is only prepared for my academic requirement. The works has not been
published in any Journal or Magazine, any other university or institution for any degree
apprenticeship and student fellowship.
This report is my original work and prepared for academic purpose which is a part of
BBA program.
……………………......
(Md. Shohel Rana)
ID No.: 1220033
Reg. No.: 000004433
Session: 2012-2013
Department of Finance and Banking
Begum Rokeya University, Rangpur

4. iv
Supervisor’s certificate
This is to certify that Md. Shohel Rana, a student of BBA Program, major in Finance
and Banking, Begum Rokeya University, Rangpur bearing ID No.: 1220033, Reg. No.:
000004433, Session: 2012-13, has successfully completed the Internship Report titled
on “Financial Performance Analysis of Sonali Bank Limited” under my supervision
and monitoring. I wish his success at every sphere of life.
Supervisor
……………………….
(Md. Ataur Rahman)
Assistant Professor
Department of Finance and Banking
Begum Rokeya University, Rangpur

5. v
To whom it may concern
This is to certify that. Md. Shohel Rana, a student of Finance and Banking
department of Begum Rokeya University, Rangpur bearing Id No.1220033,
Registration No. 000004433, and Session: 2012-2013 has completed three (03)
months internship program at the Sonali Bank Limited. Mahigonj Branch,
Rangpur with sincerity and honesty. His Internship topic is “Financial
performance Analysis of Sonali Bank limited”
During the internship period, his devotion, sincerity and modesty were quite
impressive and praise worthy.
We wish his every success in life.
Manager (SEO)
Sonali Bank Limited
Mahigonj Branch, Rangpur.

6. vi
Acknowledgement
I am so happy to declare that I have completed my internship report within the deadline
by a great blessings of almighty. I am really owe to some special people who helped
me to prepare the report with a great courage. I am most grateful to my internship
supervisor Md. Ataur Rahman for providing a detailed feedback and support all the
time on this report. My special thanks go to Md. Shekh Farid (SPO) and some officers
of different decks of Sonali Bank Limited, Mahigonj branch, Rangpur for their
guideline, assistance, intimacy and for their valuable time as well. Their continuous
assistance makes me to have a clear idea about how Financial Performance of Sonali
Bank are going on. Without their contribution it would not have been possible for me
to finish the Internship.
In writing the report, I have taken help from different books, journals and other
scholastic articles. I thank all those authors I am also indebted to my loving friends and
senior brothers for their assistance in my report preparation.
Finally, I extend my thanks to all of my well-wishers for their co-operation during this
important task.

7. vii
Preface
This report is prepared to fulfill the requirement of the BBA program of Begum Rokeya
University, Rangpur on “Financial Performance Analysis of Sonali Bank limited”
of Bangladesh. I have chosen Sonali Bank Limited because it is the largest financial
organization in Bangladesh, it has a great financial influence over the country, it
provides the major portion of funding to some income generating and economic
development projects namely, Poverty alleviation, Credit program, and Agro-based
Industry Credit programs in the rural areas, it has a large participation in foreign
exchange business and off-balance sheet activities.
The prime focus of this study is to highlight and analyze the core financial elements
and ratios that has great effect on Financial Performance. Here I tried my best to focus
the overall scenario of financial performance of Sonali Bank Limited. The main source
of data is annual reports (2012-2016) issued by Sonali Bank, other sources are website’s
different sections. All this information was basically secondary data.
This study is divided into several sections. In the first section, it is the introductory part,
namely Statement of the problem, Objectives of the study, Research methodology,
Limitation and Coverage of the study. In the second section, the background of the
Sonali Bank Limited, Mahigonj Branch, Rangpur has stated briefly and the organization
set up in the bank. The next couple of sections deals with overview of overall Bank,
vision, Mission and Ratio analysis with corrects comments for each to evaluate the
performance of these sections and identify some problems and give some suggestions
to overcome the problems. The last chapter deals with SWOT analysis, conclusion and
some recommendation to overcome the problems and reaching a new level of service
in the financial sector of Bangladesh.

8. viii
Abstract
This report is an analysis of the financial operations and performance of Sonali Bank
limited for last five years. This report will provide an assessment and analysis of the
profitability, liquidity, leverage position and activity conditions of the SBL using
figures from the financial statements for the last five financial years (2012-2016). The
report is divided into the following six parts- Introduction, Overview of SBL, Special
study on Mahigonj Branch, Rangpur, An analysis and findings of Financial
Performance of Sonali Bank Limited, Recommendation & Conclusion.
The main purpose of my report is to analyze financial performance of SBL, pointing
out some ratios that hinder the performance and pointing out some suggestions. In my
analysis, the positive ratios of Banks performance are- current ratio, cash ratio, capacity
ratio, investment to deposit ratio net profit margin, EPS, equity to net loan ratio. The
ratio which need to close investigation are- Debt ratio, times interest earned ratio, total
asset turnover, ROA and ROE. My suggestion is broadly described in Recommendation
part. In brief, the Bank should recover from the old trend of banking system to
innovative system that means structural and technological development, less
harassment to client providing fast services, low leverage and more efficiency in
management. As this is a nationalized bank, the bank should give emphasize on welfare
of the country and economic development with various social services. The 233 loss
branches are the main concern of SBL where the proper treatment should be made. The
loss branches are increasing year to year. A proper utilization of human resources can
be a good solution and training facility to unskilled employees.
Finally, the preparation of report helps to get a practical knowledge about research
arena adding value to my practical life. This research inspired to make my dream true
to be a researcher in my favorite area that is Finance.
Key words: SBL, Financial Performance, ROA, ROE, ATM, EPS, Profitability