Report on An Empirical Study on Service-oriented E-Banking Solutions of Sonali Bank Limited

Internship Report
On
“An Empirical Study on Service-oriented E-Banking Solutions of
Sonali Bank Limited”
Prepared By
Nure Junnatul Mostazir
ID: 2171021010, Batch: 42nd
Program: MBA (Regular)
Major in Finance
Uttara University
Supervised By
Dr. Sharmina Afrin
Associate Professor
Department of Business Administration
Uttara University
Date of Submission: December 1, 2018

ii
Letter of Transmittal
December 1, 2018
Dr. Sharmina Afrin
Associate Professor
Uttara University, Dhaka, Bangladesh.
Subject: Submission of Internship Report on An Empirical Study on Service-oriented
E-Banking Solutions of Sonali Bank Limited.
Dear Madam,
It is a great pleasure for me that I am submitting my internship report on An Empirical Study
on Service-oriented E-Banking Solutions of Sonali Bank Limited as a partial fulfillment of
the requirement of the Master of Business Administration (MBA) program of Uttara
University. Throughout the study, I have tried the best of my capacity to accommodate as
much as information and relevant issues as possible and tried to follow the instructions that
you have suggested. I would like to thank you for giving me the opportunity to work under
your supervision.
I am grateful to you for your kind guidance and cooperation at every step of the preparation
of the report. I will be very glad if the report can serve its actual purpose. I am ready to
explain anything to you feel necessary. Therefore, I pray and hope that you will accept my
paper and oblige me thereby.
Sincerely Yours,
ID: 2171021010, Batch: 42nd
Major in Finance
Uttara University.

iii
Student’s Declaration
I am Nure Junnatul Mostazir a student of MBA Regular 42nd
Batch, ID: 2171021010,
Reg:UU17104368 at Uttara University declaring that this report on “An Empirical Study on
Service-oriented E-Banking Solutions of Sonali Bank Limited” has been prepared for the
partial fulfillment of the requirement of the Master of Business Administration (MBA)
program of Uttara University.
It has not been prepared for any other purpose, reward or presentation.
ID: 2171021010, Batch: 42nd
Major in Finance

iv
Supervisor’s Declaration
This is to certify that the report “An Empirical Study on Service-oriented E-Banking
Solutions of Sonali Bank Limited” has been done by Nure Junnatul Mostazir, MBA, 42nd
Batch, ID: 2171021010, for the partial fulfillment of the requirement of the Master of
Business Administration (MBA) program of Uttara University.
The report has been prepared under my guidance and is a record of the bona fide work carried
out successfully.
I wish her every success in all her future endeavors.
Dr. Sharmina Afrin,
Associate Professor,

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Acknowledgements
Thanks to Almighty Allah. I wish to convey my indebtedness to my supervisor Dr. Sharmina
Afrin, for her affectionate guidance, and support throughout the whole period of my study.
Her effective suggestions and valuable instructions helped me to come with the magnificent
ideas and showed the right path to complete this work. Her wisdom, knowledge, and
commitment to the highest standards inspired me a lot.
I would also like to convey my heartiest gratitude to my course teachers and to all of the
honourable Professors of the Department of Business Administration, Uttara University, for
their contribution and inspiration to complete my study. I also would like to thanks to the
Sonali Bank Limited for allowing me to complete my MBA degree. Besides, I would like to
express my sincere gratitude to all the executives, officers, and my colleagues of Staff
College and Uttara Model Town Branch of Sonali Bank Limited for their help to prepare this
report and to complete my MBA degree.
I express my deepest sense of gratitude to my parents Md Habibur Rahman and Fatema
Begum, and relatives for their immeasurable blessing, and continuous inspiration and also for
their encouragement throughout the study. I would like to express my love and affection to
my daughter Parisha Mahfuz.
December 2018
Nure Junnatul Mostazir.

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Table of Contents
Particulars Page
Letter of Transmittal ii
Student’s Declaration iii
Supervisor’s Declaration iv
Acknowledgements v
Lists of Tables ix
Lists of Figures x
Acronym xi
Executive Summary xii
CHAPTER 1: INTRODUCTION
Introduction1.1
Chapt
er 1
Introduction 2
1.2 Background of the Study and Description of the Study Topic 2
1.3 Objectives of the Study 3
1.4 Limitations of The Study 3
CHAPTER 2: COMPANY PROFILE
Company Profile2.1 Historical Background of SBL 5
2.1.1 Company Profile 5
2.2 Organizational Structure of SBL 6
2.3 Vision, Mission, Slogan, Functions, Core Business, andValues of SBL 8
2.3.1 Vision 8
2.3.2 Mission 8
2.3.3 Slogan 9
2.3.4 Functions 9
2.3.5 Core Business 9
2.3.6 Values 10
2.4 Notable Features of SBL 11
2.4.1 Capital Structure 11
2.4.2 Branches 11
2.4.3 Subsidiaries 11
2.4.4 Associates 11
2.4.5 Representative Offices and Correspondence 11
2.5 Key Achievement of 2017 12
2.6 Digitalization Status of SBL 13
2.6.1 Branch Computerization 13
2.6.2 Foreign Remittance 14
2.6.3 ATM 14
2.6.4 Online and SMS Banking 14
2.7 Description of Department where I am Working in SBL 14
CHAPTER 3: DATA COLLECTION AND PROCESSING
Data Collection and processing3.1 Data description 15
3.2 Data Collection Method 15
3.2.1 Primary Data Collection Method 15
3.2.2 Secondary Data Collection Method 15
3.3 Data Processing and Data Presentation Method 16

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CHAPTER 4: RESULTS AND DISCUSSIONS
4.1 To Know About the E-banking Components Available in Bangladesh 19
4.1.1 Automated Teller Machine 19
4.1.2 Debit Card 19
4.1.3 Credit Card 19
4.1.4 Point of Sale (POS) 20
4.1.5 Wire Transfer 20
4.1.6 Mobile Remittance 20
4.1.7 Internet Banking 20
4.1.8 Bangladesh Automated Cheque Processing System (BACPS) 21
4.1.9 Bangladesh Electronic Funds Transfer Network (BEFTN) 21
4.1.10 National Payment Switch Bangladesh (NPSB) 21
4.1.11 Real Time Gross Settlement System (RTGS) 21
4.1.12 Mobile Financial Services (MFS) 21
4.1.13 Payment Service Provider and Payment System Operator 22
4.2 To Know the Development of Internet Banking, E-Commerce, and
ATM of SBL
22
4.2.1 Internet Banking 23
4.2.2 E-Commerce 23
4.2.3 ATM 24
4.3 To See the Functions of Cards (Debit Card, Credit Card, Prepaid
Card)
26
4.3.1 Debit Card 26
4.3.2 Credit Card 27
4.3.3 Prepaid Card 30
4.4 To Find Out the Function of Point of Sale (POS), Mobile Financial
Services, Society for Worldwide Interbank Financial
Telecommunication (SWIFT), Real Time Gross Settlement (RTGS),
and Other Services of SBL
32
4.4.1 Point of Sale 32
4.4.2 Mobile Financial Services (SMS Banking and Mobile Banking) 32
4.4.3 Society for Worldwide Interbank Financial Telecommunication
(SWIFT)
33
4.4.4 Real Time Gross Settlement (RTGS) 34
4.4.5 Bangladesh Automated Clearing House (BACH) 34
4.4.6 National Payment Switch Bangladesh (NPSB) 35
4.4.7 NBR Sonali Bank e-Payment Portal 36
4.4.8 Receipt and Payment of Government Chest 36
4.4.9 Online Government Transactions 36
4.4.10 Online Challan Verification 36
4.4.11 Remittance Management System (RMS+) 37
4.4.12 Sonali Sheba 37
4.4.13 Website 37

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CHAPTER5: CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions 40
5.2 Findings Relating to E-banking services of SBL 40
5.2.1 Sonali Bank Limited Faces Few Problems with ATM 40
5.2.2 Problems Relating to Branch Computerization 40
5.2.3 Problems Relating to OnlineInternet and Mobile Banking 41
5.2.4 Problems Relating to Q-cash network 41
5.3 Recommendations Relating to E-banking Services of SBL 41
CHAPTER 6: INTERNSHIP EXPERIENCE
6.1 Experiences Related to Work, Workflow, and People Met 44
6.2 Significant Pleasant and Unpleasant Incidences 44
REFERENCES AND APPENDICES
References 45
Appendices 46
Appendix 1: Checklist 46
Appendix 2: Branch Network of Sonali Bank Limited in Bangladesh 47
Appendix 3: Balance Sheet as on 31 December 2017 48
Appendix 4: Photos 52

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Lists of Tables
Particulars Page No.
Table 1: Company Profile of SBL 6
Table 2: ATM cards uses statistics of Uttara Model Town Branch, SBL 24
Table 3: ATM statistics of SBL 25
Table 4: Fees, Limit, and Charges of SBL Debit Card 27
Table 5: Debit cards statistics of SBL 27
Table 6: Credit Limit of SBL Credit Card 28
Table 7: Fees, Limit, and Charges of SBL Credit Card 29
Table 8: Credit cards statistics of SBL 30
Table 9: Fees, Limit, and Charges of SBL Prepaid Card 31
Table 10: Prepaid cards statistics of SBL 31
Table 11: ATM charges of SBL for using NPSB 35

xi
Lists of Figures
Particulars Page No.
Figure No. 1: Head Office of Sonali Bank Limited 5
Figure No. 2: Management Hierarchy of SBL 7
Figure No. 3: Functional Hierarchy of SBL 8
Figure No. 4: Vision of SBL 8
Figure No. 5: Core values of SBL 10
Figure No. 6: Key Achievement of SBL in 2017 12-13
Figure No. 7: ATM of SBL 23
Figure No. 8: ATM of SBL 24
Figure No. 9: ATM’s Statistics of Uttara Model Town Branch 25
Figure No. 10: Different Types of Cards of SBL 26
Figure No. 11: Point of Sale 32
Figure No. 12: SMS Banking 33
Figure No. 13: SWIFT Network 34
Figure No. 14: BEFTN 35
Figure No. 15: NPSB Platform 36
Figure No. 16: RMS+ of Sonali Bank Limited 37
Figure No. 17: Website of Sonali Bank Limited 38

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Acronyms
ABBREVIATION ELABORATION
SBL Sonali Bank Limited
ATM Automated Teller Machine
POS Point of Sale
SWIFT Society for Worldwide Interbank Financial Telecommunication
RTGS Real Time Gross Settlement System
ICT Information and Communications Technology
RMS Remittance Management System
NPSB National Payment Switch Bangladesh
SMS Short Message Service
CBS Core Banking System
ABB Online Any Branch Banking
PCB Private Commercial Banks
FCB Foreign Commercial Banks
SCB State-owned Commercial Banks
PIN Personal Identification Number
WWW World Wide Web
BACPS Bangladesh Automated Cheque Processing System
BEFTN Bangladesh Electronic Funds Transfer Network
MFS Mobile Financial Services
PSD Payment Systems Department
PSP Payment Service Provider
PSO Payment System Operator
BACH Bangladesh Automated Clearing House
NBR National Board of Revenue
EFTPOS Electronic Fund Transfer at Point of Sale
IBFT Internet Banking Fund Transfer

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Executive Summary
E-banking implies provision of banking products and services through electronic delivery
channels to provide anytime, anywhere and anyhow banking. It offers easy, faster,
convenient, low-cost banking services around the clock. E-Banking as the wave of the future,
provides enormous benefits to consumers in terms of cost of transactions, either through the
internet, telephone or other electronic delivery channels. E-Banking is now widely practiced
in Bangladesh. Sonali Bank Limited (SBL) is the largest and leading nationalized commercial
bank in Bangladesh. To in line with the modern technology trends and to keep the highest
brand value, SBL has introduced several E-banking solutions. I am working with SBL as a
Senior officer since 2015. The experiences with SBL has helped me to match my theoretical
knowledge with practical understanding and help me to choose the topic “An Empirical
Study on Service-oriented E-Banking Solutions of Sonali Bank Limited” for my internship of
the MBA program.
Chapter 1 describes the introduction of e-banking, background, objectives, and limitations
of the study. The basic objectives of this chapter are to explain what is e-banking, why e-
banking is important in technology-driven banking, the background of choosing to describe
the e-banking services available in Sonali Bank Limited. The objectives of the study are to
know about the e-banking components available in Bangladesh, to know the services of
Internet Banking, e-Commerce and ATM of SBL, to see the functions of different electronic
cards e.g., debit card, credit card, prepaid Card, Point of Sale (POS), Mobile Banking,
SWIFT, and RTGS of SBL, are also identified and defined in this chapter. The study has
been conducted largely depending on secondary data sources such as manuals, reports, bank
parikrama, bulletins, circulars, and other documents. The limitations of the study are also
presented in Chapter 1.
SBL is one of the leading public banks in Bangladesh. To serve the nation Sonali Bank
performs certain activities for their client such as general banking, giving loans and advances,
capital market operations etc. Chapter 2 describes the overview of Sonali Bank Limited,
functionalities and services it provides, and its present status how it occupied a challenging
position among its competitors after achieving success in all areas of business operation.
Chapter 3 describes the data sources and data collection procedures, used to prepare this
report. In this chapter, the outline of the methodology that was used to carry out the study and
theoretical basis behind the approaches. First, in this chapter data description of primary data
and secondary data are presented. The study has been conducted depending on the primary
data sources and secondary data sources. Second, the data collection methods are primary
data collection and secondary data collection to carry out the study, are clarified. Third, the
data processing tools and methods are explained in this chapter.

xiv
Chapter 4 describes all the objectives described in Chapter 1. This chapter tries to unearth
the present scenario of e-banking in the banking sector of Bangladesh, to explore the
structure of e-banking in Bangladesh, to explore the services, to describe the common
features, and to demonstrate the scope and benefits of e-banking offered by Sonali Bank
Limited. This chapter gives an insight into the e-banking solutions like Internet Banking, E-
Commerce, ATM, Cards(Prepaid Card, Debit Card, Credit Card), Point of Sale (POS),
Mobile Banking, SWIFT and RTGS, etc are available in Sonali Bank Limited. This chapter
also presents the statistics and results of the different e-banking services of Sonali Bank
Limited.
The report is concluded and some problems and challenges regarding e-banking in Sonali
Bank Limited are identified and presented in Chapter 5. To overcome the problems and
challenges and to increase the practices and positive impacts of e-banking, some
recommendations are provided in chapter 5.
Chapter 6 is about the overall experiences to prepare this report. This chapter presents
experiences regarding the issues and significant pleasant and unpleasant incidences with
clients and colleagues throughout the study.

2
1.1 Introduction
The Banking sector is always deemed to be one of the most vital sectors for the economy of a
country. Its importance as the “lifeblood” of economic activity, in collecting deposits and
providing credits to states and people, households and businesses is indisputable. In
Bangladesh, banking sectors are operating as nationalized, private and specialized banks.
Sonali Bank Limited (SBL) emerged as the largest and leading nationalized commercial bank
after the independence of the country. Sonali Bank is playing an important role in the growth
and economic development of Bangladesh.
Technology is revolutionizing banking, improving the experience of the stakeholders, to
make its services more efficient. To make the most of this transformation, banks are
collaborating with technology start-ups. The banking industry is undergoing a transformation
that is seeing a change at every level and in every corner of the world. It first started 15 to 20
years ago, with the arrival of the internet. Things have moved on considerably since then:
nowadays, cutting-edge technologies and innovative business models, such as Electronic
Banking (e-banking), is the most important disruptive forces in existence. E-banking
introduces all the forms of banking services and transactions performed through electronic
means. E-banking includes the systems that enable financial institution customers, individuals
or businesses, to access accounts, transact business, or obtain information on financial
products and services through a public or private network, including the internet.
Sonali Bank Limited has also taken steps in using new technology to increase efficiency
and provide efficient banking services for customers and particularly improved accessibility
for customers in the areas who do not have easy access to a physical bank branch. SBL has
launched several e-banking products and services include Internet Banking, E-Commerce,
ATM, Point of Sale (POS), Mobile Banking, Society for Worldwide Interbank Financial
Telecommunication (SWIFT) and Real Time Gross Settlement (RTGS). Although e-banking
is faster and convenient, there are lots of limitations and constraints such as lack of
awareness, skilled human resource, inadequate infrastructure. People are now getting
interested in online transaction and government has laid out some plans for developing ICT
infrastructure. Bangladesh bank takes some major initiative in this regard and SBL should
concentrate on improving e-banking services spread and quality.
1.2 Background of the Study and Description of the Study
Topic
This internship report is prepared in partial fulfillment of the requirement of the Master of
Business Administration (MBA) program of Uttara University. The primary goal of the
internship is to provide an on the job exposure to the student and an opportunity to apply
theoretical knowledge in real life situation by involving in business enterprises,
organizations, financial institutions, and research institutions. The internship program is a 4
credit hours course which covers a period of 12 weeks for report preparation.
I am working with SBL as a Senior officer since 2015. I am currently in the Sonali Bank
Staff College under the head office of SBL. I have the prior work experiences in the Uttara
Model Town Branch of SBL. The experiences with SBL has helped me to match my
theoretical knowledge with practical understanding and help me to choose the topic “An
Empirical Study on Service-oriented E-Banking Solutions of Sonali Bank Limited” for my
internship of the MBA program.

3
E-Banking is web-based Banking. Nowadays, due to the emerging global economy, e-
commerce and e-banking have increasingly become a necessary component of business
strategy and a strong catalyst for economic development. Bangladesh is entering into the
expected level of the global banking system. To in line with the modern technology trends
and to keep the highest brand value, SBL has introduced several E-banking solutions like
Internet Banking, E-Commerce, ATM, Cards(Prepaid Card, Debit Card, Credit Card), POS,
Mobile Banking, SWIFT and RTGS, etc from last few years. Therefore, I have decided to
make a report on “An Empirical Study on Service-oriented E-Banking Solutions of Sonali
Bank Limited” to introduce the e-banking solutions of SBL.
1.3 Objective of the Study
The objective of the study is divided into two parts. They are
1. Broad Objective
2. Specific Objectives
Broad Objectives
 To see the service-oriented e-banking solutions of Sonali Bank Limited.
Specific Objectives
 To know about the e-banking components available in Bangladesh.
 To know the development of Internet banking, e-Commerce and ATM of SBL.
 To see the functions of Cards (Debit Card, Credit Card, Prepaid Card).
 To find out the function of Point of Sale (POS), Mobile Banking, Society for World
wide Interbank Financial Telecommunication (SWIFT), and Real Time Gross
Settlement (RTGS) of SBL.
1.4 Limitations of The Study
The study is almost all description. The study gives an insight into the e-banking services
provided by SBL. The study has been conducted largely depending on secondary data sources
such as manuals, reports, bank parikrama, bulletins, circulars, and other documents. There is
no structured/written questionnaire was used for the purpose to evaluate the e-banking
services of SBL or to estimate the customers‟ satisfaction on the available e-banking
solutions of SBL. I could not collect some information required at the time of the study. So
this study is not free from the other following limitations:
 The time period for the internship was not sufficient.
 Due to the privacy policy of not disclosing some data and information are not
presented in the report.
 Due to unavailability of the latest information, the report may not show the existing
position or the present condition of SBL to some extent.
 The internship was completed by the self-inspiration.
 Lack of experience acted as constraints in the way of careful exploration on the topic.

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2.1 Historical Background of SBL
SBL, the largest commercial bank in Bangladesh, was established under the Bangladesh
Banks (Nationalization) Order 1972 (President‟s Order No. 26 of 1972) by taking over
branches of former National Bank of Pakistan, Bank of Bhawalpur Limited and Premier Bank
of Pakistan. After the independence of Bangladesh in 1971, the then Government, for the
preannounce commitment, nationalized all the banks (except the foreign-owned banks)
operating in the country.
As a fully state-owned enterprise, SBL has discharged its responsibility by undertaking
government entrusted different socio-economic scheme as well as money market activities of
its own volition, covering all spheres of the economy. SBL singularly enjoys the prestige of
being the agent of the Central Bank.
Bank of Bhawalpur Limited and Premier Bank of Pakistan Limited were two private
banks performing class banking over the country (then East Pakistan) and National Bank of
Pakistan was a Government supported bank with 51% shares being owned by the
Government of Pakistan that was mainly established to finance the jute sector in East
Pakistan.
From a modest beginning with an increase of responsibility and by virtue of performance,
SBL has, within a few years, emerged as the largest commercial bank in the country. The
principal activities of the bank are providing all kinds of commercial banking services to the
customers. It also performs several government functions as an agent of the Bangladesh
Bank.
2.1.1 Company Profile
Figure No. 1: Head Office of Sonali Bank Limited

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Name of the Company : Sonali Bank Limited
Chairman : Mr. Md. Ashraful Moqbul
CEO & Managing Director : Mr. Md. Obayed Ullah Al Masud
Company Secretary : Mr Md. Ataur Rahman
Legal Status : Public Limited Company
Genesis
: Emerged as Nationalised Commercial Bank
in 1972, following the Bangladesh Bank
(Nationalisation) Order No. 1972 (PO No.26
of 1972)Date of Incorporation : 03 June 2007
Date of Vendor's Agreement : 15 November 2007
Registered Office : 35-42, 44 Motijheel Commercial Area,
Dhaka, BangladeshAuthorized Capital : Taka 6000.00 Crore
Paid-up Capital : Taka 4130.00 Crore
Number of Employees :18, 301
Number of Branches :1214
Phone-PABX : 9550426-31, 33, 34, 9552924
FAX : 88-02-9561410, 9552007
SWIFT :BSONBDDH
Website : www.sonalibank.com.bd
E-mail : itd@sonalibank.com.bd
Table 1: Company Profile of SBL
Source: www.sonalibank.com.bd
2.2 Organizational Structure of SBL
The organizational structure of the bank is vested on a board of directors, subject to overall
supervision and directions on policy matters by the board which is constituted in terms of
Bangladesh bank (Nationalization) Order 1972. Board of directors, constituted by seven
members has authority to organize, operate and manage its affairs on commercial
consideration within the board policy of the government. There are directors appointed by the
government. Other members of the board including MD are also government appointed out of
that at least three have the experience in the field of Finance, Banking, Trade, Commerce,
Industry, and Agriculture. The managing director is the Chief Executive Officer (CEO) of the
bank. He executes all the activities under the direction of the board. All line and staff
personnel of banks are own recruitment except a member of the board of director. The
organizational structure of the bank is shown in Figure 2.

7
Board of Directors
CEO & Managing Director (MD)
Deputy Managing Directors (DMDs)
General Managers (GMs) at Head
Office
General Managers (GMs) at Field
GM Offices
Deputy General Managers (DGMs) at
Divisional Head of Head Office
Deputy General Managers (DGMs) at
GM Offices, Principal & Corp. Br.
Assistant General Managers (AGMs)
at Head Office
Assistant General Managers (AGMs)
at Field Offices
Senior Principal Officers (SPOs),
Principal Officers (POs), and Senior
Officers (SOs) at Head Office
Senior Principal Officers (SPOs),
Principal Officers (POs), and Senior
Officers (SOs) at Field Offices
Officers and Other Staffs at Head
Office
Officers and Other Staffs at Field
Offices
Figure No. 2: Management Hierarchy of SBL

8
Head Office
GM Office
Principal Office
Regional Office
Branch Office
The head office of the bank is located at motijheel commercial Area, Dhaka that is the
controlling Headquarter. It has eleven GM offices, fourty six principle offices, and sixteen
regional offices all over the country. Principle offices are headed by DGMs and each
department is headed by AGMs. Different grade officers depending on the size and nature of
branches head the branches. The functional hierarchy of SBL is shown in Figure 3.
Figure No. 3: Functional Hierarchy of SBL
2.3 Vision, Mission, Slogan, Functions, Core Business, and
Values of SBL
2.3.1 Vision
To be socially committed leading banking institution with global presence. The vision of SBL
is shown in Figure 4.
Figure No. 4: Vision of SBL
2.3.2 Mission
Dedicated to extend a whole range of quality products that support the divergent needs of
people aiming at enriching their lives, creating value for the stakeholders and contributing
towards the socio-economic development of the country.
Apart from there are some missions of SBL as follows:
 Transformation into a service-oriented technology-driven profit earning bank.
 Ensure fast, accurate and best-in-class customer service.

9
 Balanced and suitable growth strategy.
 Introducing innovative banking products.
 Attract and retain high-quality human resource.
 Empowering real poor families and create local income opportunities.
 Providing support for social benefit organizations-by way of mobilizing funds and
social services.
2.3.3 Slogan
“Your Trusted Partner in Innovating Banking”
2.3.4 Functions
The main objective of SBL is to provide all of the banking services at the doorsteps of the
people. The Bank also participates in various Social and Development programs and also
takes part in the implementation of various policies and promises made by the Government.
Main functions of SBL are:-
 Receiving money on deposits.
 Conducting cash transaction of customers who have current accounts.
 Attending bills of exchange and drafts of customers.
 Sanction of a loan.
 Providing other services to customers.
 Transfer of money.
 Collection of receipts.
 Collecting interest, dividends, rents, pensions, etc.
 Act as an advisor.
2.3.5 Core Business
The main business area of SBL are:-
 Corporate Banking.
 Project Finance.
 SME Finance.
 Consumer Credit.
 International Trade.
 Trade Finance.
 Loan Syndication.
 Foreign Exchange Dealing.
 Rural and Microcredit.

10
 NGO-Linkage Loan.
 Investment.
 Government Treasury Function.
 Money Market Operation and Capital Market Operation.
 Remittance.
2.3.6 Values
The core value proposition of Sonali Bank Limited consists of the following key elements
which would assist the Bank in perceiving its employees to work as a team towards
accomplishment of assigned duties and responsibilities for achievement of desired objectives.
The main values of SBL are as shown in Figure 5.
Figure No. 5: Core values of SBL

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2.4 Notable Features of SBL
2.4.1 Capital Structure
Authorized Capital : Tk. 6000.00 Crore
Paid up Capital : Tk. 3830.00 Crore
2.4.2 Branches
1. Total No of Branches 1214
a. No of Foreign branches 2
b. No. of Representative Offices 3
c. No of Local branches 1209
d. i. No of Rural Branches 743
ii. No of Urban Branches 466
2. No of Regional Offices 16
3. No of Principal Offices 46
4. No of G.M. Offices 11
2.4.3 Subsidiaries
 Sonali Exchange Company Incorporated (SECI) having 10 (Ten) branches in USA.
 Sonali Investment Limited (Merchant Banking) having 4 (Four) branches at
Motijheel, Paltan, Uttara, Mirpur in Dhaka and 1 (One) branch in Khulna,
Bangladesh.
2.4.4 Associates
 Sonali Bank (UK) Limited having 2 (Two) branches in UK.
 Sonali Polaris FT Limited
2.4.5 Representative Offices and Correspondence
 Representative Office: 3
 Jeddah, KSA
 Riyadh, KSA
 Kuwait.
 Correspondence: 639

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2.5 Key Achievements of 2017

13
Figure No. 6: Key Achievement of SBL in 2017
2.6 Digitalization status of SBL
2.6.1 Branch Computerization:
1209 inland branches are now computerized.

14
2.6.2 Foreign Remittance
Bank's own in-house software "Remittance Management System" (RMS+), having, among
others, 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.
2.6.3 ATM
Sonali Bank Limited is a member of Q-Cash Consortium, National Payment Switch
Bangladesh (NPSB) and VISA. Customers can enjoy round the clock cash withdrawal facility
from 103 own ATMs and around 6500+ shared ATM booths across the country. Sonali Bank
recently launched Credit Card.
2.6.4 Online and SMS Banking
 At present 1209 branches of Sonali Banks are included in the Online Any Branch
Banking (ABB) network.
 SMS Banking service is running in 1209 branches.
 1214 branches are now in automation network within 1209 branches at home.
 Total number of CBS running branch is 1209.
 The bank is seriously working on connecting all branches in the Real-time Online
Banking network gradually. Branches having ABB facility are also rendering SMS
banking services.
 RTGS enabled branch no is 74.
2.7 Description of Department where I am Working in
SBL
I am working as a Senior Officer in the Sonali Bank Staff College of Sonali Bank Limited.
Formerly, I worked in the Uttara Model Town branch, Uttara, Dhaka of Sonali Bank Limited
from June 2015 to May 2017. I did my work in the general banking to perform several
activities like account opening, account closing, cheque issue, foreign exchange, remittance
payment, clearing, dispatch, loan disbursement, ATM card issue, and customer support etc
during my tenure. Now I am working in the administration section of Sonali Bank Staff
College. My current job responsibilities are the salary payment, establishment, financial
accounting using the Core Banking System (CBS) of SBL, and assembling financial data for
audit and management. The head of the Staff College is a General Manager (GM).

15
CHAPTER 3
DATA COLLECTION AND PROCESSING

16
3.1 Data Description
Both primary and secondary data are used to prepare this report.
Primary data mean original data that have been collected from some primary sources
i.e., a source of origin where the data generate. Primary data are more reliable and have high
degree of accuracy. Primary data sources are scheduled survey, informal discussion with
different respondents while working in different desks, branches, and offices.
Secondary data are collected from secondary sources i.e. the source of reservation
storage where the data are collected by one person and used by other agency and easy to
collect. These are collected as primary data and used by other as secondary data. Secondary
data is data that is being reused.
3.2 Data Collection Method
Data are collected from two types of data sources, the data collection methods are,
1. Primary Data Collection Method
2. Secondary Data Collection Method.
3.2.1 Primary Data Collection Method
 Checklist
 Face to face conversation with the executives and officers of bank.
 Practical work exposures form the different desks.
 Face to face conversation with the client.
 Personal observations.
 Discussion with bank‟s advisor.
3.2.2 Secondary Data Collection Method
 Websites and several published materials as articles on different versions of
printing.
 Annual reports & Brochures of Sonali Bank Limited.
 Periodicals Published by Bangladesh Bank .
 Office files, recorder and documents.
 Study related books and journals.
 Different recorded files.
 Different Websites related with Sonali Bank Ltd.

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3.3 Data Processing and Data Presentation Method
Data have been processed by description and using descriptive statistics. Different data
gathering and analysis tools such as Microsoft Word, Microsoft Excel to prepare this report.
Along with using the above tools, for analysis of data, the following statistical methods have
been applied-
 Tabulation and classification
 Percentage
 Pie-chart
 Graph-bar diagram.

18
CHAPTER 4
RESULTS AND DISCUSSIONS

19
4.1 To Know About the E-banking Components Available
in Bangladesh
In Bangladesh, Banking industry is mature to a great extent than the earlier period. It has
developed a superb image in their various activities including e-banking. Electronic banking
is a modern banking system that delivers new and traditional banking products and services
to customers electronically. Modern banks play a pivotal role in promoting the economic
advancement of a country. E-banking provides users, working with a home computer
attached by network to their bank, with the ability to authorize payments, reconcile accounts,
and access a variety of other banking services with the help of ATM (Automated Teller
Machine), visa card, master card, Q-cash, E-cash, Ready cash, mobile, internet etc. E-banking
at per international standard is yet to develop in Bangladesh. At present, several private
commercial banks (PCBs) and foreign commercial banks (FCBs) offer limited services of
telebanking, internet banking, and online banking facilities working within the branches of
the individual bank in a closed network environment. As a part of stepping towards e-
banking, the FCBs have played the pioneering role with the adoption of modern technology
in retail banking during the early 1990s whereas the state-owned commercial banks (SCBs)
and PCBs came forward with such services in a limited scale during the late 1990s.
Moreover, the banking industry as a whole rushed to offer technology-based banking services
during the middle of the current decade.
In Bangladesh, the expansion of e-banking is beset with several infrastructural,
institutional, and regulatory constraints such as inadequate availability of reliable and secure
telecommunication infrastructure, absence of a backbone network connecting the whole
country, poor ICT penetration in the banking sector, lack of skilled manpower and training
facilities, absence of supportive policies, guidelines, rules and regulations relating to e-
transactions and the like. Despite the constraints, efforts by the Bangladesh Bank in
modernizing the country‟s payment system and commitment by the government in building
„Digital Bangladesh‟ have brought competition among the scheduled banks to improve
banking services and rapidly adopt e-banking on a wider scale. The existing form of e-
banking that satisfies customer demand in banking activities electronically throughout the
world is PC banking or PC home banking that include online banking, internet banking,
mobile banking, and telebanking. The following subsections describe the e-banking products,
are available in Bangladesh.
4.1.1 Automated Teller Machine
An automated teller machine (ATM) is a computerized telecommunication device that
provides a financial institution‟s customers with a method of financial transaction in a public
space without a need for a human clerk or a bank teller.
4.1.2 Debit Card
A debit card is a plastic card which provides an alternative payment method to cash. While
making purchases. The amount of a transaction is typically displayed on a card reader, after
which the customers wipe the card and enters the pin number. There is usually a short delay
while the EFTPOS (electronic fund transfer at point of sale) terminal contact the computer
network (over a phone line and mobile connection) to verify the authorize the transaction.
4.1.3 Credit Card
A credit card is a system of payment named after the small plastic card issued to users of the

20
system. A credit card is different from a debit card in that it does not remove money from the
user‟s account after every transaction. In the case of a credit card, the issuer lends money to
the customer. It is also different from a charge card through this name is sometimes used by
the public to describe credit cards. This requires the balance to be paid in full each month. In
contrast, the credit card allows a customer to revolve their balance at the cost of having
interest charged.
4.1.4 Point of Sale (POS)
This means a retail shop or a checkout counter in a shop or a variable location where a
transaction occurs in this type of environment. Additionally, point of sale sometimes refers to
the electronic cash register system being used in an establishment. Point of sale system is
used in restaurants, hotels and stadiums as well as the retail environment in short, if
something can be sold, it can be sold where a point of sale system is in use.
4.1.5 Wire Transfer
Wire transfer is a process which ensures fast and appropriate timing of fund transfer from the
sender to the recipient. This kind of transfer of money could be either within the country or
abroad. Funds are transferred under the following network:
 FED wire ( federal reserve communication system)
 Bank wire
 SWIFT ( the society for worldwide interbank financial telecommunication)
4.1.6 Mobile Remittance
For sending foreign remittance four nationalized banks and fifteen private banks are working
collaboratively with mobile phone service operators. Recently remittance could be sent in
Bangladesh by banking channel through account transfer (normally takes 3 working days) or
in the form of instance cash (takes 24 hours). Foreign resident people can send their money
and PIN (personal identification number) through a mobile phone. As a result money transfer
becomes relatively easy, quick, and hassle-free. But this system also superseded by
mRemittance system. Mobile remittance service or mRemittance was introduced in the
country opening doors to millions migrants workers to help transfer their hard – earned
money easily, effectively and most importantly, swiftly. The first ever remittance service for
Bangladesh was jointly launched by two local banks – Dhaka Bank Ltd. and Eastern Bank
Ltd. – and the country‟s second-largest mobile operator, Banglalink.
4.1.7 Internet Banking
Internet banking refers to the use of the internet as a remote delivery channel for banking
services which permits the customer to conduct transactions from any terminal with access to
the internet. It is the WWW through which banks can reach their customers directly with no
intermediaries. Internet banking in true sense is still absent in Bangladesh, few banks are
providing some banking services via internet that include account balance enquiry, fund
transfer among accounts of the same customer, opening or modifying term deposit account,
chequebook or pay order request, exchange rate or interest rate enquiry, bills payment,
account summary, account details, account activity, standing instructions, loan repayment,
loan information, statement request, cheque status enquiry, stop payment cheque, refill
prepaid card, password change, L/C application, bank guarantee application, lost card
(debit/credit) reporting, pay credit card dues, view credit card statement, or check balance.

21
The core banking activities like fund transfer to the third party, cross-border transactions and
so on are still uncovered by internet banking offered by the scheduled banks in Bangladesh.
4.1.8 Bangladesh Automated Cheque Processing System (BACPS)
Since inception in October 2010 BACPS is the only state-of-the-art cheque clearing facility.
It uses the Cheque Imaging and Truncation (CIT) technology for electronic presentment and
payment of paper-based instruments (i.e. cheque, pay order, dividend & refund warrants, etc).
BACPS operates in a batch processing mode. Transactions received from the banks during
the day are processed and settled at a pre-fixed time.
4.1.9 Bangladesh Electronic Funds Transfer Network (BEFTN)
Incepted in February 2011 BEFTN was country's first paperless electronic inter-bank funds
transfer system. It facilitates both credit and debit transactions, as a lead over the cheque
clearing system. This network can handle credit transfers such as payroll, foreign and
domestic remittances, social security payments, company dividends, bill payments, corporate
payments, government tax payments, social security payments and person to person
payments. In the same way, it accommodates debit transactions like utility bill payments,
insurance premium payments, Club/Association payments, EMI payment etc. Most of Govt.
salary, social benefits, all social safety net payments, and other government payments are
processed through BEFTN.
4.1.10 National Payment Switch Bangladesh (NPSB)
Operational since 2012, NPSB is meant for establishing interoperability among participating
banks for their account and card-based transactions. Currently, it caters interbank ATM, POS,
and Internet Banking Fund Transfer (IBFT) transactions while the Mobile Financial Services
interoperability is under active consideration. 51 Banks are now interconnected through
NPSB for their ATM transactions. Currently, three types of interbank ATM transaction (i.e.
cash withdrawal, balance inquiry and mini statement) could be done through NPSB. As of
October 2018, 50 banks are interoperable for POS transactions and 18 banks are
interconnected for their IBFT transactions.
4.1.11 Real Time Gross Settlement System (RTGS)
To facilitate real-time settlement of high-value time critical payments BB introduced
Bangladesh Real Time Gross Settlement (BD-RTGS) system during October 2015. It opened
a new dimension for the banks and for the corporate to settle their payments instantly, at the
same time individual customers are also availing this service for settling their large value
transactions. Out of 11,000 scheduled bank branches 7,000 are connected till June 2018 with
BD-RTGS system and the number is increasing gradually.
4.1.12 Mobile Financial Services (MFS)
Bangladesh Bank has introduced efficient off-branch Mobile Financial Services (MFS)
during 2011 in Bangladesh as the country acquired an omnipresent mobile phone network
experienced, a large number of mobile phone users and improved IT infrastructure. Within
seven years, this exponentially growing Bank-Led model of MFS has become the largest
MFS market in the world.

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Bangladesh Bank permits Cash in, Cash out, Person to Person (P2P), Person to Business
(P2B), Business to Person (B2P), Person to Government (P2G) and Government to Person
(G2P) payment services through MFS domestically. No cross-border money transfer is
allowed under this service. However, local disbursement of inward foreign remittance comes
through banking channel is permitted. Any adult can open MFS account with any provider at
an agent point or bank branch with a photo and legal identification. Having more than one
MFS account by one person with the same provider is not permitted.
4.1.13 Payment Service Provider and Payment System Operator
According to "Bangladesh Payment and Settlement Systems Regulation-2014 (BPSSR-
2014)" Payment Systems Department (PSD) issues license in two broad criteria- Payment
Service Provider (PSP) and Payment System Operator (PSO).
It gives PSP license to the company who facilitates payment(s) or payment processes
directly to the customers and settling their transactions through a scheduled bank or financial
institution; for example E-wallet, Mobile Wallet etc. Besides, PSD gives PSO license to the
company who operates a settlement system for payment activities between/among
participants of which the principal participant must be a scheduled bank or financial
institution; such as payment gateway, payment aggregator etc. PSD reviews the market
demand, business rationale, regulatory requirements, risk management systems, settlement
systems, eligibility criteria, and others according to BPSSR-2014 for considering the
application of license of PSP or PSO.
 List of Authorized PSP and PSO
 IT Consultants Ltd (PSO)
 SSL Commerz Ltd (PSO)
 ShurjoMukhi Ltd (PSO)
 iPay Systems Ltd (PSP)
4.2 To Know the Development of Internet Banking, E-
Commerce, and ATM of SBL
Today‟s world is service oriented in every sector. Those who are giving much more services
will be well ahead of a competition because of getting better competitive advantages. The
competition among the banks in Bangladesh is growing up day by day by giving better
services and they are trying to develop or to integrate their own new services with new
technology every now and then. E-banking has got tremendous importance in the banking
sector and banking customer as well in Bangladesh. To align with the latest technology trends
and services, SBL also has also introduced several technology-driven services to its
stakeholders. Sonali Bank Limited extends all the major personal banking facilities and
services to its customers with its largest network and e-banking services of around 1209
branches covering all the urban and remote rural areas of Bangladesh. The following
technology driven e-banking services are provided by SBL.

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4.2.1 Internet Banking
Since inauguration of the journey towards automation in 1989, a total of 1209 domestic
branches and all the foreign branches are rendering digitalized banking services through
Intellect Core Banking System (CBS) software and Online Any Branch Banking (ABB) to
the clients of the Bank. Any transactions done through the gateway of the Internet is called
Internet banking or Online Banking. On-line ABB transactions are supervised through
Monitoring Tool Software by Treasury Management Division. SBL online network provides
facilities like transaction through any branch, payment against pay order or pay order
encashment, demand draft encashment, opening or redemption of FDR from any branch,
remote fund transfer, cash withdrawal, cash deposit, account statement, clearing and balance
enquiry within branches, and L/C opening, loan repayment facility to and from any branch.
SBL has become the largest online bank in Bangladesh. The Bank also introduced RMS Plus,
NPSB, RTGS, BACH, BEFTN, Online Govt. Transaction, Tax Soft., Sonali Sheba, Pension
paying Software, CCTV installation etc. At present, all CBS branches have been operating
SMS banking service. Registered customers can get their account transaction and balance
through SMS. These technology-based solutions have placed SBL in a reputable position in
terms of technological progression in the banking industry.
Figure No. 7: ATM of SBL
4.2.2 E-Commerce
 PayPal is the world‟s leading payment processing company, being founded in 1998,
PayPal dedicating itself to processing payments for merchants. PayPal allows for a
rapid method of payment when shopping online, as well as for the transfer of funds
between one person and another either for personal or business use. SBL integrate
with the Xoom services of PayPal to send money from the PayPal wallet as shown in
Figure 7.
 SBL integrate the NPSB, a common platform for the country's commercial banks for
electronic payments, which is going to revolutionize e-commerce in Bangladesh. A
customer using a credit or debit card can able to draw cash from any ATM and POS
(point of sales) in the country and purchase and sale can be done with cards through
the internet and web portals within the country.
 E-commerce payment systems have become increasingly popular due to the
widespread use of internet-based shopping and banking. Q-cash payment gateway has
enabled other Banks to offer its e-commerce customers new technologies such as
digital wallets, e-cash, mobile payment, and e-checks. SBL is the member of Q-Cash
Consortium and VISA.

24
4.2.3 ATM
Sonali Bank Limited has introduced ATM services as shown in Figure 8, since 2007. The
numbers of ATM are increasing day by day. The bank is the member of Q-Cash Consortium,
NPSB, and VISA. Clients are enjoying round the clock cash withdrawal facility from 103
own ATM and around 6500+ shared ATM booths across the country. An initiative has been
taken to set up ATMs at important places like important branches, airports, railway stations,
post office, university campuses, important public places etc. To increase the efficiency of
our ATM service, we have taken various steps such as reduce downtime of individual ATMs.
Also trying to ensure more ATM friendly environment through a un-interrupted transaction.
Table 2 and Figure 9 show the statistics of the total number of ATM cards delivered to its
clients, the average number of ATM cards used daily, and the average amount of transaction
performed daily through ATM in the Uttara Model Town Branch, Sonali Bank Limited.
Figure No. 8: ATM of SBL
Particulars No of ATM Cards
From the year of 2013 to 2018 918
Average number of cards used daily 15
Amount in BDT
Average amount of transaction by ATM daily 2.25 Lac
Table 2: ATM cards uses statistics of Uttara Model Town Branch, SBL

25
Figure No. 9: ATM’s Statistics of Uttara Model Town Branch
Table 3 shows the statistics of the total number of ATM operation and ATM cards issued
on September 2017 and September 2018 by SBL and the percentage of the increase of the
ATM operation and ATM cards in the year 2018 than the year 2017.
Particulars
Position as on
September 2017
Position as on
September 2018
Increase in
Corresponding Month
Number %
ATM Operation 100 103 3 3
ATM Cards Issued 132251 210100 77849 58.86
Table 3: ATM statistics of SBL

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4.3 To See the Functions of Cards (Debit Card, Credit
Card, Prepaid Card)
Sonali Bank Ltd. offers different payment methods out there: prepaid cards, debit cards, and
credit cards are safer than cash, convenient and accepted countrywide. SBL cards offer and
designed exclusively to give better rewards to the valued customers and SBL cards bundled
with a host of benefits. SBL cards as shown in Figure 10, ensure more security, convenience,
and flexibility for making individuals everyday spending with a single card. The features of
the different types of SBL cards are described in the following subsections.
Figure No. 10: Different Types of Cards of SBL
4.3.1 Debit Card
An SBL debit card is directly connected to an SBL account. Using a debit card will
automatically deplete the bank account‟s funds. On a side note, a debit card is used to
withdraw cash from an ATM or to make an in-store or online purchase, the money gets
deducted from the respected SBL account. SBL debit card gives customer the confidence to
move anywhere in Bangladesh without bearing cash. SBL debit card makes life hassle-free
and safe. A debit card ensure sophisticated way of carrying money with full satisfaction. Any
individual having a savings or current account in Sonali Bank Limited is eligible to own this
card.
 Exclusive features of SBL debit card
 24/7 hours service
 Highly secured
 Tax Payment Facility
 Mobile Phone Recharge
 Cash withdrawal facility from any ATM in Bangladesh.
 Can be used in shopping outlet, departmental stores, and restaurants where POS is
available
 Widely accepted in any POS machine

27
 Supplementary card available
 Account balance and mini statement inquiry from ATM
 PIN change facility
 No limit for POS transaction
 Per day four times ATM transaction facility
 Fees, Charges and Limit
Particulars Fees and Charges in Taka
Annual Fee 400
Card Replacement Fee 100
Pin Replacement Fee 100
Cash Withdrawal Fee Sonali Bank ATM Free
Q-Cash ATM : 10
NPSB ATM : 15
VISA ATM : 45
POS Transaction Fee Free
Balance Inquiry/ Mini Statement Sonali Bank ATM : Free
Q-Cash ATM : Free
NPSB ATM : 5
VISA ATM : 5
ATM Cash Withdrawal Limit 30,000 (per transaction)
30,000 (per calendar day)
Table 4: Fees, Limit, and Charges of SBL Debit Card
 Table 5 shows the statistics of the total number of debit cards issued on September
2017 and September 2018 by SBL and the percentage of the increase of the issued
cards in the year 2018 than the year 2017.
Particulars
Position as on
September 2017
Position as on
September 2018
Increase in
Corresponding Month
Number %
Debit Card Issue 126863 197939 71076 56.03
Table 5: Debit cards statistics of SBL
4.3.2 Credit Card
An SBL credit card allows making purchases with borrowed money, known as credit. As any
spend and make purchases on a credit card, an individual client will begin to build up a
balance that needs to be repaid at the end of every month. The more immediate benefits of
having an SBL credit card are extra purchasing power and flexibility within a limit. SBL
credit card gives the maximum benefit with a minimum cost and has also the dual options to
make a transaction in multi currencies. Customers can choose the type of card that matches
with his requirement. A dual card can be used in local currency within Bangladesh and

28
foreign currency in abroad. Local currency and foreign currency limit will be defined in the
system as per the approved credit limit. Only Bangladeshi nationals are eligible for apply for
a credit card with an age limit of 18 to 59 years for any individuals and 60 years for the
freedom fighter. At present, credit cards are being issued in favor of bank officers, officers of
government, semi-government, autonomous body, teachers and officers of the government
universities whose salary is disbursed from any branches of SBL. Businessman or who are
working in the private organization can get a credit card under guarantee of a principal officer
and above ranked officer of SBL.
 Exclusive features of SBL credit card
 Minimum interest rate
 Highly secured
 Tax Payment Facility
 Mobile Phone Re-charge
 100% Cash withdrawal facility within limit from any ATM in Bangladesh
 100% POS transaction within a limit
 Can be used in shopping outlet, departmental stores, and restaurants where POS
Transaction available
 Widely accepted in any POS machine
 Supplementary card available
 Account balance and a mini statement from ATM
 Interest-free POS transition within the limited time. This time is maximum 50 days
from the date of statement.
 Per day 4 (four) times transaction facility.
 Credit Limit
Designation /occupation Credit Limit (BDT) Credit Limit (USD)
General Manager and above 5,00,000 5,000
Deputy General Manager 4,50,000 4,500
Assistant General Manager 4,00,000 4,000
Senior Principal Officer 3,00,000 3,000
Principal Officer 2,00,000 2,000
Senior Officer 1,50,000 1,500
Officer 1,25,000 1,250
Table 6: Credit Limit of SBL Credit Card

29
Particulars Type Fees and Charges in taka
Annual Fee for Sonali Bank
Staff
Silver 500
Gold 500
Annual Fee for General
Silver 800
Gold 1700
Card Replacement Fee
Sonali Bank
Staff
150
General 300
Pin Replacement Fee All 100
Supplementary Card Fee
Sonali Bank
Staff
150
General 300
Cash Withdrawal Fee All Sonali Bank ATM: Free
Q-Cash ATM BDT: 10
NPSB Transaction: 15
VISA Transaction: 45
POS Transaction Fee All Free
Rate of Interest All 1.17% daily Product & monthly basis
Late Payment Fee All 2% of total outstanding or 200 taka
which one is largest
Minimum Payable Amount All 10% of total outstanding or 500 taka
which one is largest
Cash Advance Fee All BDT Transaction: 1.5% of
withdrawal amount or 100 taka which
one is higher.
USD Transaction: 2% of withdrawal
amount or 2.5 USD which one is
higher.
ATM Cash Withdrawal Limit All BDT 50,000 (per transaction)
BDT 50,000 (per calendar day)
Balance Inquiry / mini
statement
All Sonali Bank ATM: Free
Q-Cash ATM: Free
NPSB ATM BDT: 5
VISA ATM BDT: 5
Table 7: Fees, Limit, and Charges of SBL Credit Card
 Table 8 shows the statistics of the total number of credit cards issued on September

30
Particulars
Position as on
September 2017
Position as on
September 2018
Increase in
Corresponding Month
Number %
Credit Card Issue 2082 2693 611 29.35
Table 8: Credit cards statistics of SBL
4.3.3 Prepaid Card
Without having any account anyone can get SBL prepaid card from any branch. A prepaid
card has a pre-determined monetary value loaded into the card. SBL offers prepaid dual
currency card that can be used at any ATM to withdraw cash and any POS to purchase of
goods and services. A dual card can be used in local currency within Bangladesh and foreign
currency in abroad. Only Bangladeshi nationals of age 18 years and above can apply for this
card.
 Exclusive features of SBL prepaid card
 Free Tax Payment
 Mobile Phone Recharge
 Can be used in shopping outlet, departmental stores, and restaurants where POS
Transaction available
 No Need to open an account
 Card balance and mini statement inquiry from ATM
 4 (four) times transaction facility per day
 Easy cash load
 Unlimited cash load facility

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Particulars Fees and Charges in taka
Annual Fee BDT 100
Card Replacement Fee BDT 100
Pin Replacement Fee BDT 100
Cash Withdrawal Fee Sonali Bank ATM: Free
Q-Cash ATM: 10
NPSB Transaction: 15
VISA Transaction: 45
POS Transaction Fee Free
ATM Cash Withdrawal Limit BDT 30,000 (per transaction)
BDT 30,000 (per calendar day)
Balance Inquiry Sonali Bank ATM: Free
Q-Cash ATM: Free
NPSB ATM: 5
VISA ATM: 5
Table 9: Fees, Limit, and Charges of SBL Prepaid Card
 Table 10 shows the statistics of the total number of prepaid cards issued on September
Particulars
Position as on
September 2017
Position as on
September 2018
Increase in
Corresponding Month
Number %
Prepaid Card Issue 3306 9468 6162 186.39
Table 10: Prepaid cards statistics of SBL

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4.4 To find out the function of Point of Sale (POS), Mobile
Financial Services, Society for Worldwide Interbank
Financial Telecommunication (SWIFT), Real Time
Gross Settlement (RTGS), and Other Services of SBL
4.4.1 Point of Sale
Purchase through a point of sale (POS) as shown in Figure 11, is going on round the clock
(24/7) with SBL debit, credit, and prepaid cards. POS transaction in abroad is also possible
with dual currency visa credit and prepaid cards. SBL is a member of National Payment
Switch Bangladesh (NPSB) under Bangladesh Bank, VISA, and Q-Cash Consortium where
more than 33++ Banks under the same umbrella as Consortium member.
Figure No. 11: Point of Sale
4.4.2 Mobile Financial Services (SMS Banking and Mobile
Banking)
Considering the availability of cell phones and meeting up the ever-evolving financial needs
of our esteemed customers, the Bank has introduced SMS banking service as shown in Figure
12. This service enables customers to get account balance, mini statement, and daily
transactions at any time from anywhere through SMS. At present, 340,132 registered
customers of CBS branches are availing this facility. Besides, the Bank introduced
transactions alert service from 22 October 2017 to facilitate SB/CA/SND/ Loan account
holders for getting mobile alerts in their respective accounts during transactions (debit/credit).
The Board of Directors of the Bank has taken policy decisions to introduce mobile banking
by profit sharing by inviting an open tender system. To implement mobile banking, a
committee has been formed in accordance with the decisions of the Board. The Committee is
under working.

33
Figure No. 12: SMS Banking
4.4.3 Society for Worldwide Interbank Financial
Telecommunication (SWIFT)
SWIFT is a bank owned non-profit co-operative based in Belgium servicing the financial
community worldwide. SWIFT is now a global financial infrastructure that spans every
continent, 200+ countries and territories, and services more than 11,000 institutions around
the world. In August 2018, SWIFT recorded an average of 29.3 million FIN messages per
day. SWIFT global network as shown in Figure 13, is a highly secured messaging network
enables banks to send and receive Fund Transfer, L/C related and other free format messages
to and from any banks active in the network. Having SWIFT facility, Bank will be able to
serve its customers more profitable by providing L/C, Payment, and other messages
efficiently and with utmost security. Especially it is a great help for clients dealing with
Imports, Exports, and Remittances etc. To facilitate the foreign exchange activities, SBL has
launched SWIFT system in its 43 branches in the country and 2 overseas branches in India
and United Kingdom.

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Figure No. 13: SWIFT Network
4.4.4 Real Time Gross Settlement (RTGS)
RTGS is a real-time electronic fund transfer mechanism for domestic transactions worth BDT
100,000 or more. Through RTGS, our customers are able to make real-time inter-bank fund
transfers. Any RTGS transaction originated and submitted by the customer is considered as
final and cannot be altered/canceled. RTGS enabled branch number is 79.
4.4.5 Bangladesh Automated Clearing House (BACH)
Since 2010, BACH operation system has been deployed in SBL. At present, 361 branches of
different regions including 105 branches in Dhaka city have been brought under BACH
program. 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 the whole country under a single head of the Bangladesh
Bank. With a view to making clearing activities, Bangladesh Automated Clearing House
(BACH) has been set up at the Local office of the Bank. Clearing activities in an automated
system are executed through BACPS (Bangladesh Automated Cheque Processing System)
from this center. Fund transfer activities from all branches of the Bank with other banks are
being operated through Bangladesh Electronic Fund Transfer Network (BEFTN). The Bank
has successfully implemented Bangladesh Electronic Fund Transfer Network (BEFTN)
system as shown in Figure 14, in all the branches.

35
Figure No. 14: BEFTN
4.4.6 National Payment Switch Bangladesh (NPSB)
NPSB is an electronic platform as shown in Figure 15, started its operation on 27 December
2012 with a view to attain interoperability among schedule banks for card-based / online
retail transactions. At present, NPSB is processing interbank ATM, Point of Sales (POS),
Internet Banking Fund Transfer (IBFT) transactions. Being a member bank of NPSB under
Bangladesh Bank, SBL has already deployed 103 ATM booths through 95 branches along
with 8 cobranded booths with a joint collaboration of Bangladesh Post Office and connected
with Q-Cash Consortium. Through this network, SBL customers are to perform ATM
transactions at other NPSB member banks‟ ATM terminals using their debit/credit/prepaid
cards. Charges are levied on using SBL card at NPSB member banks‟ ATM terminals. Table
11 shows the list of charges on ATM transactions at NPSB member banks‟ ATM terminals
using SBL card:
Cash Withdrawal Balance Enquiry Mini Statement
BDT 15.00 BDT 5.00 BDT 5.00
Table 11: ATM charges of SBL for using NPSB

36
Figure No. 15: NPSB Platform
4.4.7 NBR Sonali Bank e-Payment Portal
Under the system of the NBR Sonali Bank e-Payment Portal which was introduced in 2012,
Tax, VAT and Customs duty are being paid On-line. In the meantime, to perform inter-bank
transactions through this portal, an agreement has been signed with Standard Chartered Bank
and Citi Bank N.A. Steps have been taken to connect other banks under this portal.
Moreover, since 15 February 2015, printed challan copies, made by this portal, are received
at bank counter through ePay Bank Counter.
4.4.8 Receipt and Payment of Government Chest
Reporting activities of receipt and payment of Govt. chest are being rendered through online
software in 58 chest branches at the district level.
4.4.9 Online Government Transactions
On behalf of Bangladesh Bank, Sonali Bank Limited carries out government transactions
through its authorized branches where there is no branch office of Bangladesh Bank. After
obtaining the permission of the Controller General of Accounts (CGA), a new web-based in-
house application “Government Transaction System” GTS software/program has been
introduced in 603 Treasury branches of the Bank to capture all government transactions.
4.4.10 Online Challan Verification
To ensure transparency and accountability, the Bank has recently introduced “Online Challan
Verification”. Customers can verify challan verification through web portal www.cga.gov.bd
in the next working day from any place of the world.

37
4.4.11 Remittance Management System (RMS+)
A web-based software developed in-house named Remittance Management System Plus
(RMS+) as shown in Figure 16, has been introduced in 1209 branches for receiving foreign
remittance and receiving and making payment of Inland/ Local remittance. Besides, two
products named Cash Over Counter (COC) and Spot Cash have achieved popularity amongst
the non-bank customers to receive foreign remittance over the counter. All these transactions
are reconciled instantly through an automated process. Customers are notified through mobile
SMS as soon as they receive foreign remittance.
Figure No. 16: RMS+ of Sonali Bank Limited
4.4.12 Sonali Sheba
Sonali Sheba, an in-house developed web-based software, is being used to collect various
fees of Dhaka University, National University, IBA, Bangladesh Marine Academy,
Secondary and Higher Secondary Education Board of Dhaka, Chittagong, Barisal, Rajshahi,
Jessore, Sylhet, Comilla, Dinajpur, Madrasha Education Board, Bar Council, Chittagong port
and National ID correction fee of Election Commission.
4.4.13 Website
The website of Sonali Bank Limited as shown in Figure 17, has been reconstructed by the IT
Division and launched on 1 January 2012. Customers complain box has been added to the
website. The website address of SBL is www.sonalibank.com.bd. The information contained
on the website is being regularly updated.

38
Figure No. 17: Website of Sonali Bank Limited

39
CHAPTER 5
CONCLUSIONS AND RECOMMENDATIONS

40
5.1 Conclusions
E-banking is now a global phenomenon. Apart from the developed world, the developing
countries are also experiencing strong growth in E-banking. E-banking concept in the
banking services is new for Bangladeshi people. People are not also conscious about the
advantages of the technology. The government's emphasis on building a digital Bangladesh,
setting up an ICT park, raising allocation for developing ICT infrastructure, waiving taxes on
computer peripherals and other measures, including the automation program of the banking
sector have brightened the prospects of e-banking. In Bangladesh, the expansion of e-banking
is beset with several infrastructural, institutional, and regulatory constraints such as
inadequate availability of reliable and secure telecommunication infrastructure, absence of a
backbone network connecting the whole country, poor ICT penetration in the banking sector,
lack of skilled manpower and training facilities, absence of supportive policies, guidelines,
rules and regulations relating to e-transactions and the like. Despite the constraints, several
efforts have taken by the Sonali Bank Limited in modernizing their banking services and
rapidly adopt e-banking on a wider scale. This report provides a critical overview on
development and adopting e-banking services and present status of e-banking in Sonali Bank
Limited and has some rational values for relevant users such as the student, organization,
employee, policy maker, and other stockholders etc.
5.2 Findings Relating to E-banking Services of SBL
5.2.1 Sonali Bank Limited Faces Few Problems with ATM
 Transaction Limit
 Booths are Not Available in all places
 Booths are in an open place
 Not available to restaurants and shopping center
 ATM booths are not always UP
 No Bangla Interface for mass people
 No voice commanding option for blind people
 ATM‟s fall short of money.
5.2.2 Problems Relating to Branch Computerization
 Server fails for a long time.
 New software named CBS is now running. So if someone needs the statement or any
data related to transaction more than 1 years then the previous software named
Baxibank is needed.
 The electronic token system is not in use.
 Computers are not up to date.

41
5.2.3 Problems Relating to OnlineInternet and Mobile Banking
 Mobile banking is not or rarely used. The use of mobile banking is still in a nascent
state.
 SMS service is not available by default to all its client.
 Online Banking may have the risk of password fraudulent.
 Online security is not as much powerful as the size of a bank.
 Web-based banking is absent.
 Inefficient and inadequate knowledge of the bank management about the technology-
driven banking.
 Lack of international standard communication channel.
 The high cost of establishing a technology-driven banking system.
 Inadequate back and front office management.
 Lack of integrated plan among the banks and the Central Bank authority.
 Inappropriate software and less trust by the bank authorities on local software.
 Biases of the management of bank towards foreign software.
 Legal barriers and inappropriate policy framework.
5.2.4 Problems Relating to Q-cash Network
 This service is not available in the whole country
 Only designed branches deal with Q cash cards.
 Most of the customers of SBL don‟t know about this service because of poor
publicity.
5.3 Recommendations Relating to E-banking Services of
SBL
In this study, I have observed the previous findings regarding the e-banking and based on
those I would like to present the following recommendations:
 At present, SBL is trailing behind in acquiring the required quality of banking
services to effectively compete in the global market. Therefore, the banking system
needs upgradation and urgent measures are needed to create a rapid expansion of
technology driven banking in the country.
 SBL should improve the existing e-banking services by establishing more ATM
booths, POS, and increasing business collaboration with other banks, financial
institutes, and e-commerce organizations.

42
 Most of the ATMs are installed in scattered way in the urban areas only. It is the right
time to increase the number of customers and popularity of ATM banking, mainly in
Upazilla/Thana level and rural areas. SBL should identify more locations for
establishing new ATMs. ATM services are being hampered regularly and frequently
due to acute network link-down instance. To overcome this problem, it is needed to
ensure redundant network connectivity from ATMs to data center. ATM booths
should have to ensure the availability of enough money regularly. Bangla interface
should be introduced in all the ATMs as soon as possible.
 SMS banking needs more development. The revival of this service is the demand of
time. Head office should think about to develop smartphone mobile application for
providing better services.
 E-banking system should be more flexible by introducing and integrating new
technologies in the same delivery channel to provide Value Added Services (VAS)
like fund transfer to other accounts, credit card payments, mobile banking, utility bill
payment, top up, etc. Each and every day new technologies are coming with new
facilities and challenges. SBL should up grade of hardware and software regularly.
 E-banking service should be according to the customer expectation and satisfaction.
E-banking service should resolve the entire problems very quickly that the customer
face in an online transaction. SBL should increase and enhance the e-banking
customer service.
 Mobile banking and Internet banking should introduce in full face all over the
country.
 Though power sector have been improving in last few years, insufficient electric
power, power disruption and poor backup system are the key issues. All logistic
support including Instant Power Supply need to be provided to all branches. For
redundant and backup power supply extra investment is necessary. Sufficient budget
needed for installing and maintaining generator or solar system.
 In order for e-banking to continue to grow, the security and the privacy aspects need
to be improved.
 It is required to review the business strategy and create the required space for
adopting technology driven banking. Fortify ICT department through providing
training to IT employees and procuring essential hardware and software. Posting of IT
officers at every branch to be ensured.
 In Bangladesh most of the people were illiterate and obviously they were technology
ignorant. But among the literate portion many of them had computer phobia. So these
people could not trust on the internet banking services. To gain the confidence on
internet banking the overall computer literacy must be developed.
 Marketing and sales force should be developed to attract a customer. To increase
awareness of the consumers, benefits of technology driven banking can be promoted
through advertising in print and electronic media.

43
CHAPTER 6
INTERNSHIP EXPERIENCE

44
6.1 Experiences Related to Work, Workflow, and People
Met
I am working as a Senior Officer in the Sonali Bank Staff College of Sonali Bank Limited.
Formerly, I worked in the Uttara Model Town branch, Uttara, Dhaka of Sonali Bank Limited
from June 2015 to May 2017. I have the experiences to work in the general banking to
perform several activities like account opening, account closing, cheque issue, foreign
exchange, remittance payment, clearing, dispatch, loan disbursement, ATM card issue, and
customer support etc. I am also work in the administration section of Sonali Bank Staff
College with the job responsibilities are the salary payment, establishment, financial
accounting using the Core Banking System (CBS) of SBL, and assembling financial data for
audit and management. To prepare and to enhance the report I have also talked to the
respective desk officer, department head (DGM), manager and other officials of Uttara Model
Town Branch, Staff College, and Card Division of Sonali Bank Limited.
6.2 Significant Pleasant and Unpleasant Incidences
I have enjoyed much with working on this topic “An Empirical Study on Service-oriented E-
Banking Solutions of Sonali Bank Limited”. Sonali Bank Limited is the largest state owned
leading commercial bank in Bangladesh. Preparation of this report required assistance,
guidance, and also took valuable time of many important colleagues. To prepare this report
all the concerned officers of Uttara Model Town Branch, Card Division, and Staff College
cordially provided me the required informations and data and helped me a lot. I would like to
express my sincere gratitude to all. Sometimes It was also very difficult to get the actual
information, because the officials were sometimes very busy with their own responsibilities.
Hence it was little bit difficult for them to help within their tight schedule and could not
collect some information required at the time of the study. Due to the privacy policy of not
disclosing some data and information are not presented in the report.

45
REFERENCES
[1] S. Islam and A. S. M. Mahfuz, "Adoption of e-banking in Bangladesh: Evolution, status
and prospects," 16th Int'l Conf. Computer and Information Technology, Khulna, 2014, pp.
255-260.
[2] Mohammad Shamsuddoha, "Electronic Banking in Bangladesh," Journal of Business
Solutions, Vol. 1, No. 2, December 2008.
[3] Sonali Bank Limited, www.sonalibank.com.bd.[Accessed 29 November 2018]
[4] Bangladesh Bank. www.bb.org.bd.[Accessed 29 November 2018]
[5] "Annual Report 2017," Sonali Bank Limited, November 2018.
[6] Several Booklets and Newsletters, Sonali Bank Limited, 2018.
[7] Zaman, Farhana & Chowdhury, "Technology Driven Banking in Bangladesh: Present
Status, Future Prospects and Challenges", BUP Journal. 1, pp. 56-78, 2012.
[8] Md. Mohiuddin, " Trend and Development of E-Banking: A Study on Bangladesh",
IOSR Journal of Business and Management, Vol. 16, No. 5, pp. 16-24, May 2014.
[9] Sadekin M S and Shaikh A H, "Current Status of E-Banking Practices in Bangladesh",
Scholar Journal of Business and Social Science, Vol. 1, 2015.
[10] Hossain M M, Irin D, Islam M S and Saha S, "Electronic-Banking Services: A Study on
Selected Commercial Banks in Bangladesh," Asian Business Review, Vol. 3, 2013.
[11] Al-Amin S and Rahman S (2010) , "Application of Electronic Banking in Bangladesh;
An Overview," Bangladesh Research Publication Journal, Vol. 4, 2010.

46
Appendices
Appendix 1: Checklist
Information collected regarding these components-
 Automated Teller Machine (ATM)
 Debit Card
 Credit Card
 Point of Sale (POS)
 Wire Transfer
 Mobile Remittance
 Internet Banking
 Bangladesh Automated Cheque Processing System (BACPS)
 Bangladesh Electronic Funds Transfer Network (BEFTN)
 National Payment Switch Bangladesh (NPSB)
 Real Time Gross Settlement System (RTGS)
 Mobile Financial Services (MFS)
 Payment Service Provider and Payment System Operator
 Internet Banking
 E-Commerce
 ATM
 Debit Card
 Credit Card
 Prepaid Card
 Point of Sale
 Mobile Financial Services (SMS Banking and Mobile Banking)
 Society for Worldwide Interbank Financial Telecommunication (SWIFT)
 Real Time Gross Settlement (RTGS)
 Bangladesh Automated Clearing House (BACH)
 National Payment Switch Bangladesh (NPSB)
 NBR Sonali Bank e-Payment Portal
 Receipt and Payment of Government Chest
 Online Government Transactions

47
 Online Challan Verification
 Remittance Management System (RMS+)
 Sonali Sheba
 Website of SBL
Appendix 2: Branch Network of Sonali Bank Limited in
Bangladesh

48
Appendix 3: Balance sheet as on 31 December 2017

52
Appendix 4: Photos
Inauguration of Core Banking System Support
Signing ceremony between SBL and bKash

53
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