MIRA INFORM REPORT

 

 

Report Date :

27.09.2011

 

IDENTIFICATION DETAILS

 

Name :

SONALI BANK LIMITED

 

 

Registered Office :

Laldighi Corporate Branch, Chittagong

 

 

Country :

Bangladesh

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1972

 

 

Com. Reg. No.:

C-67113

 

 

Legal Form :

Public Limited

 

 

Line of Business :

General Banking & Financial Services of Personal Banking, Rural Credit, Micro Credit, International Banking etc.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Bangladesh

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

COMPANY DETAILS

 

Name

Sonali Bank Limited

Address

Laldighi Corporate Branch, Chittagong

Country

Bangladesh

Telephone No

880-31-634692,637242

Fax No

880-31-634692

E-Mail

sbhoid@bdmail.net

sbhoitd@btcl.net.bd

Website

www.sonalibank.com.bd

Established

1972

Company Registration No

C-67113

Registration date

3rd June 2007

Issuing Authority

The Registrar of Joint Stock of Companies & Firms, Dhaka.

Legal Status

Public Limited

Stock Code

SONALIBANK

Business Type

General Banking & Financial Services

Status

Satisfactory

Litigation

NIL

 

 

LOCATIONS

 

Head Office

Sonali Bank Building, 35-42,44 Motijheel Commercial Area, Dhaka -1000

Telephone No

880-2-9550426-31, 33, 34, 9552924

Fax No

88-02- 9561410, 9552007

E-Mail

sbhoid@bdmail.net

sbhoitd@btcl.net.bd

Website

www.sonalibank.com.bd

Number of Branches 

1,193

Factory

N/A

S.W.I.F.T.:

BSONBDDH

 

DIRECTORS

 

Name

Mr. Quazi Baharul Islam

Designation

Chairman

Nationality

Bangladeshi

 

 

Name

Mr. Mohammad Humayun Kabir

Designation

Managing Director 

Nationality

Bangladeshi

 

 

Name

Mr. Mohammad Shahid Ulla Mia

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. Mohammad Anwar Shahid

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. A.S.M. Nayeem, FCA, FCCA

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. M. Lutfur Rahman Khan

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. K.M. Zaman Romel

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. Kashem Humayun

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. Shaimum Sarwar Kamal

Designation

Director

Nationality

Bangladeshi

 

 

Name

Advocate Sattayendra Chandra Bhakta

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mrs. Jannat Ara Henry

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. Suvas Singho Roy

Designation

Director

Nationality

Bangladeshi

 

 

BUSINESS DETAILS

 

Line of Business

General Banking & Financial Services

Range of Services

4 Personal Banking

4 Rural Credit

4 Micro Credit

4 International Banking

4 Industrial Financing

4 Deposit & Credit Schemes

4 SME Banking

4 Foreign Currency a/c

4 Bond

 

 

FINANCIAL INFORMATION

 

Sonali Bank Limited

Balance Sheet

As at 31 December 2010

 

PROPERTIES AND ASSETS

Taka

Cash

33,230,634,571

Cash in hand (including foreign currency)

5,138,688,934

Balance with Bangladesh Bank and its agent bank(s)  (Including foreign currency)

28,091,945,637

Balance with other banks and financial institutions

40,099,345,277

In Bangladesh

28,555,819,000

Outside Bangladesh

11,543,526,277

Money at call on short notice

5,547,312,900

Investments

111,745,095,461

Government

96,838,566,107

Others

14,906,529,354

Loans and Advances

286,098,070,161

Loans, Cash Credit, Overdrafts etc.

256,717,951,354

Bills purchased & discounted

29,380,118,807

Fixed assets including premises, furniture and fixtures

10,594,092,052

Other assets

161,953,372,664

Total Property and Asset

649,267,923,086

LIABILITIES AND CAPITAL

 

Liabilities

 

Borrowings from other banks, financial institutions and agents

26,385,637

Deposits and other accounts

478,134,084,948

Current Accounts and other Accounts

118,947,874,651

Bills Payable

8,643,731,434

Savings Bank Deposits

153,685,198,818

Fixed Deposits

196,857,280,045

Other liabilities

125,333,593,203

Total Liabilities

603,494,063,788

Capital/ Shareholders' equity

 

Paid up Capital

9,000,000,000

Statutory Reserve

3,956,476,533

Retained Earnings

13,169,218,188

Other Reserve

19,648,164,577

Total Shareholders' equity

45,773,859,298

Total capital and liabilities

649,267,923,086

 

 

Sonali Bank Limited  

Profit & Loss Account  

For the year ended 31 December 2010

 

 

2010

Interest Income

22,841,408,729

Less: Interest Paid on Deposit and Borrowing, etc.

19,131,795,895

Net Interest Income

3,709,612,834

Income from Investments

5,896,206,997

Commission, exchange and brokerage

9,546,277,030

Other operating income

1,436,254,869

 

16,878,738,896

Total Operating Income

20,588,351,730

Less: Operating Expenditure:

 

Salary and allowances

9,345,557,066

Rent, taxes, insurance, electricity etc.

500,713,404

Legal expenses

30,380,407

Postage, stamp, telecommunication etc.

80,898,613

Stationery, printings, advertisements etc.

153,953,292

Chief Executive's salary and fees

3,651,612

Directors' fees

4,998,772

Auditors' fees

2,150,000

Depreciation and repair of bank's assets

334,754,923

Other Expenditure

1,643,103,897

Amortization of Intangible Assets

2,862,200,000

Total Operating Expenses

14,962,361,986

Profit Before Provision

5,625,989,744

Less: Provision against Loans & Advances 

3,001,447,059

Less. Other Provision

1,004,184,181

Total Provision

4,005,631,240

Profit Before Tax

1,620,358,504

Less: Provision for Tax

(1,117,251,898)

Current Tax

1,070,000,000

Deferred Tax

(2,187,251,898)

Net Profit After Tax 

2,737,610,402

Retained Surplus Brought Forward

10,821,607,786

 

13,559,218,188

Appropriation:

 

Transferred to Statutory Reserve

390,000,000

 

390,000,000

Retained Surplus, Carried Forward

13,169,218,188

Earnings Per Share

30.42

 

Auditors:

Syful Shamsul Alam & Co.

Chartered Accountants

 

Hoda Vasi Chowdhury & Co.
Chartered Accountants

 

CAPITAL STRUCTURE

 

Authorized Capital

Taka 10.00 billion

Paid Up Capital

Taka 09.00 billion

Each Share Value

N/A

 

 

EXCHANGE RATE

 

Currency

Unit

Bangladeshi Taka (BDT)

 

Great Britain Pound

1

116.3994

U.S Dollar

1

75.1400

European Euro

1

101.5592

 

 

ADVERSE DATA MONITORING

 

Dishonored Checks

No Record Found

Debt

No Record Found

Litigation

No Record Found

Performance Defaults

No Record Found

Adverse Press Coverage

No Record Found

Money Laundering

No Record Found

 

 

MAXIMUM RECOMMENDED CREDIT

 

Amount

Based On

N/A

N/A

 

 

GENERAL INFORMATION

 

Employees

21,839

Office Area (Sq. Ft)

2,800 sq.ft (rented)

Factory Area (Sq. Ft)

N/A

Warehouse Area (Sq. Ft)

6,500  sq.ft.(rented)

Export Market

N/A

Certifications

N/A

Group Name

N/A

Subsidiaries / Affiliates

4 Sonali Bank UK Limited

4 Sonali Exchange Company Incorporated

4 Sonali Investment Limited

Member

4 Dhaka Chamber of Commerce & Industries, Dhaka

4 Bangladesh Association of Bankers, Dhaka

 

 

COMMENTS

 

The subject is a public limited company engaged in banking and financial services. The bank has 1,193 branches all over the country and they are quite popular among their clients. It also operates the Sonali Exchange Company Inc. in USA and Sonali Bank (UK) Ltd., United Kingdom, to facilitate foreign exchange remittances.

 

Soon after independence of the country Sonali Bank emerged as the largest and leading Nationalized Commercial Bank by proclamation of the Banks' Nationalization Order 1972 (Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank and Bank of Bhwalpur. As a fully state owned institution, the bank had been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy.

The bank has been converted to a Public Limited Company with 100% ownership of the government and started functioning as Sonali Bank Limited from November 15 2007 taking over all assets, liabilities and business of Sonali Bank. After corporatization, the management of the bank has been given required autonomy to make the bank competitive & to run its business effectively.

 

Mr. Mohammad Humayun Kabir, the managing director of the bank is an experienced banker and knows his job well.  The other executive are also experienced bankers.

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.62

UK Pound

1

Rs.76.68

Euro

1

Rs.66.47

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.