Sonali Bank

Sonali Bank was established in 1972 under the Bangladesh Banks (Nationalisation) Order, through the amalgamation and nationalisation of the branches of National Bank of Pakistan, Bank of Bahawalpur, and Premier Bank branches located in East Pakistan until the 1971 Bangladesh War of Independence.{{Cite Banglapedia|article=Sonali Bank Limited}} When it was established, Sonali Bank had a paid up capital of 30 million taka.

From 1996 to 1999, Dr Atiur Rahman served as a director of Sonali Bank.{{Cite news |last=Rahman |first=Sajjadur |date=21 April 2008 |title=Sonali Bank: A sleeping giant? |url=https://www.thedailystar.net/news-detail-33018 |access-date=5 November 2022 |work=The Daily Star |language=en}}

In 2001, its authorised and paid up capital were Tk 10 billion and Tk 3.272 billion, respectively. Presently, its authorised and paid up capital is Tk 10 billion and Tk 9 billion, respectively.{{Citation needed|date=September 2020}} The bank's reserve funds were Tk 60 million in 1979 and Tk 2.050 billion on 30 June 2000.

In 2007, Sonali Bank was converted into a public limited company and renamed to Sonali Bank Limited.{{Cite news |date=16 November 2007 |title=Sonali, Janata, Agrani banks become PLCs |url=https://www.thedailystar.net/news-detail-11812 |access-date=6 November 2022 |work=The Daily Star |agency=United News of Bangladesh |language=en}}

In 2008, Sonali Bank had a loss of nearly 40 billion taka but the managing director of the bank, S. A. Chowdhury, predicted the bank can make a profit within five years. On 22 May, BM Bakir Hossain, top union official of the Sonali Bank Employees Union, was sentenced to 13 years' jail and fined 1 million taka for corruption.{{Cite news |date=22 May 2008 |title=Sonali CBA don Bakir gets 13yrs, wife 3rs |url=https://www.thedailystar.net/news-detail-37621 |access-date=5 November 2022 |work=The Daily Star |language=en}} He was also the president of Bangladesh Bank Employees Federation and joint secretary of the Bangladesh Jatiotabadi Sramik Dal.

In 2009, Quazi Baharul Islam was appointed chairman of Sonali Bank.{{Cite news |date=12 September 2009 |title=Sonali Bank's new chairman takes over |url=https://www.thedailystar.net/news-detail-105556 |access-date=6 November 2022 |work=The Daily Star |language=en}}

On 2 October 2010, Sonali Bank filed a loan default case against Dandy Dyeing Limited and its ten directors with Artha Rin Adalat-1.{{Cite news |date=12 April 2015 |title=Publish ad asking Khaleda to face court May 17: Court |url=https://www.thedailystar.net/country/publish-ad-asking-khaleda-face-court-may-17-76977 |access-date=5 November 2022 |work=The Daily Star |language=en}} The directors of Dandy Dyeing Limited are Tarique Rahman, Arafat Rahman, Arafat's wife Sharmila Rahman Sithi, Arafat's daughter Zafia Rahman, Arafat's another daughter Zahia Rahman, Giasuddin Al Mamun, Mamun's wife Shahina Yasmine, Nasrin Iskander wife of Sayeed Iskander, Shafin Iskander, Shams Iskander, Kazi Galib Abdus Sattar and Sumaiya Iskander. The company had borrowed the money on 16 October 2001. Former Prime Minister and BNP head, Khaleda Zia was also accused in the case.

The top defaulters of bank in 2006 were Mahanagari Traders Limited, Fair Chemicals (Private) Limited, Khulna Newsprint Mills Limited, Chittagong Jute Manufacturing Company Limited, Shamsul Alamin Cotton Mills Limited, Imperial Dyeing and Hosiery Mills Limited, Jahanara Alamin Spinning, Bright Textile Industries, Bangladesh Textile Mills Corporation, Bangladesh Autorickshaw Chalak Samity, Maola Textile Mills, East West Property Development Limited, Lina Textile Industries, Beximco group, One Composite Mills limited, Riverside Leather and Footwear Limited, Desma Shoe Industries, Nawab Askari Jute Mills Limited, Alpha Tobacco Manufacturing Company Limited, and Bangladesh Petroleum Corporation.{{Cite news |last=Byron |first=Rejaul Karim |title=Govt bodies, Beximco among top defaulters |url=https://archive.thedailystar.net/2006/10/22/d6102201044.htm |access-date=5 November 2022 |work=The Daily Star}}

From 2010 to 2012, Hallmark Group swindled 35 billion taka from Sonali Bank known as the Hallmark-Sonali Bank Loan Scam.{{Cite news |last=Alo |first=Jebun Nesa |date=28 March 2019 |title=Sonali Bank: once bitten, twice shy |url=https://www.thedailystar.net/business/news/sonali-bank-once-bitten-twice-shy-1721317 |access-date=5 November 2022 |work=The Daily Star |language=en}} Described by The Daily Star as "one of the worst financial scandal" in the history of Bangladesh.{{Cite news |date=25 March 2022 |title=Hallmark scam hangs heavy over Sonali Bank |url=https://www.thedailystar.net/business/economy/news/hallmark-scam-hangs-heavy-over-sonali-bank-2990171 |access-date=5 November 2022 |work=The Daily Star |language=en}} The loans were all given from its branch located at Ruposhi Bangla Hotel. 17 officers of the bank were suspended following the scam.{{Cite news |date=31 August 2012 |title=17 Sonali Bank officials suspended |url=https://www.thedailystar.net/news-detail-247834 |access-date=5 November 2022 |work=The Daily Star |language=en}} ANM Mashrurul Huda, general manager, blew the whistle on the scam.{{Cite news |last=Rahman |first=M. |date=13 September 2013 |title=Big names excluded |url=https://www.thedailystar.net/news/big-names-excluded |access-date=6 November 2022 |work=The Daily Star |language=en}} Transparency International Bangladesh called for an investigation into the affair. Minister of Finance, Abul Maal Abdul Muhith, blamed members of Awami League of protecting scammers at Sonali and BASIC Bank Limited.{{Cite news |date=30 June 2015 |title=Party men saving Sonali, Basic scamsters: Muhith |url=https://www.thedailystar.net/top-news/party-men-saving-sonali-basic-scamsters-muhith-105241 |access-date=5 November 2022 |work=The Daily Star |language=en}} Bangladesh Foreign Exchange Dealers' Association asked Sonali Bank to pay bills of Hallmark Group as the banks accepted the bills on Sonali Banks acceptance.{{Cite news |date=26 September 2012 |title=BAFEDA asks Sonali Bank to pay overdue bills |url=https://www.thedailystar.net/news-detail-251236 |access-date=5 November 2022 |work=The Daily Star |language=en}} Consultancy firm Syful Shamsul Alam and Co blamed Sonali Bank for the scam not being detected.{{Cite news |last=Byron |first=Rejaul Karim |date=23 August 2012 |title=Report blames Sonali Bank's delayed probe |url=https://www.thedailystar.net/news-detail-246723 |access-date=6 November 2022 |work=The Daily Star |language=en}} AHM Habibur Rahman was appointed chairman of the bank replacing Quazi Baharul Islam.{{Cite news |title=Sonali Bank gets new chairman |url=https://archive.thedailystar.net/newDesign/cache/cached-news-details-262934.html |access-date=6 November 2022 |work=The Daily Star}} The Bank refused to reschedule loans of Hallmark Group.{{Cite news |last=Byron |first=Rejaul Karim |date=1 November 2013 |title=No scope for rescheduling Hall-Mark loans: Sonali |url=https://www.thedailystar.net/news/no-scope-for-rescheduling-hall-mark-loans-sonali |access-date=6 November 2022 |work=The Daily Star |language=en}}

In 2013, $250,000 was stolen from the bank by Cyber criminals using the SWIFT International payments network.{{Cite news |url=http://bdnews24.com/economy/2016/05/26/bangladesh-probes-2013-sonali-bank-hack-for-links-to-central-bank-heist |title=Bangladesh probes 2013 Sonali Bank hack for links to central bank heist |work=bdnews24.com |access-date=28 July 2016}} In 2016, the Bank signed a Memorandum of Understanding with PayPal.{{Cite news |url=http://www.dhakatribune.com/bangladesh/2016/jul/14/sonali-bank-signs-mou-paypal |title=Sonali Bank signs MoU with PayPal |last=Nesa Alo |first=Jebun |work=Dhaka Tribune |access-date=28 July 2016}} It also signed an agreement with MoneyGram.{{Cite news |date=1 June 2016 |title=MoneyGram ties up with Sonali Bank |url=https://www.thedailystar.net/business/moneygram-ties-sonali-bank-1232623 |access-date=5 November 2022 |work=The Daily Star |language=en}}

Bangladesh Bank appointed an observer to Sonali Bank in 2015.{{Cite news |date=18 November 2015 |title=4 state-owned banks get observers |url=https://www.thedailystar.net/country/4-state-owned-banks-get-observers-174358 |access-date=5 November 2022 |work=The Daily Star |language=en}} Observers were also appointed to Rupali Bank, Agrani Bank, and Janata Bank. In July 2015, robbers killed two security guards of Sonali Bank's branch in Kalaroa Upazila, Satkhira District.{{Cite news |date=15 July 2015 |title=Robbers try bank heist, kill 2 in Satkhira |url=https://www.thedailystar.net/country/robbers-try-bank-heist-kill-2-satkhira-112897 |access-date=5 November 2022 |work=The Daily Star |language=en}}

Rapid Action Battalion stopped a robbery attempt at the Dhamrai branch of the bank killing one of the robbers in a shootout in 2016.{{Cite news |date=19 February 2016 |title=1 killed in 'gunfight' as Rab foils Sonali bank heist |url=https://www.thedailystar.net/country/1-killed-%E2%80%98gunfight%E2%80%99-rab-foils-sonali-bank-heist-574744 |access-date=5 November 2022 |work=The Daily Star |language=en}}

Former managing director of Sonali Bank, Pradip Kumar Dutta, was appointed managing director of The Farmers Bank in 2017.{{Cite news |date=26 November 2017 |title=Farmers Bank hires Sonali Bank ex-CEO to overcome crisis |url=https://www.thedailystar.net/business/farmers-bank-hires-sonali-bank-ex-ceo-overcome-crisis-1496488 |access-date=6 November 2022 |work=The Daily Star |language=en}}

On 14 February 2018, Chief Justice Syed Mahmud Hossain issued a verdict clearing allowing Sonali Bank to begin recruiting after some test takers had filed a petition alleging irregularities in the recruitment of 2200 officers for which 800 thousand applicants applied.{{Cite news |date=14 February 2018 |title=Sonali Bank: SC clears way for recruiting 2,201 officers |url=https://www.thedailystar.net/backpage/sonali-bank-sc-clears-way-recruiting-2201-officers-1534330 |access-date=5 November 2022 |work=The Daily Star |language=en}} Sheikh Fazle Noor Taposh represented the bank while the applicants were represented by Abdul Matin Khasru, A. M. Aminuddin, Quamrul Haque Siddique, and Rafiqur Rahman. The Minister of Finance, Abul Maal Abdul Muhith, identified government interference as one of the reasons behind the poor performance of Sonali Bank.{{Cite news |date=4 February 2018 |title=Muhith blames it on govt interference |url=https://www.thedailystar.net/frontpage/muhith-blames-it-govt-interference-1529485 |access-date=5 November 2022 |work=The Daily Star |language=en}} The loan to deposit ratio of Sonali Bank was 42 percent in 2018. Sonali Bank proposed to the Ministry of Finance in December that it form a separate company take over the assets of loan defaulters after failing to auction the properties due to petitions filed at the High Court Division and Artha Rin Adalat.{{Cite news |last=Uddin |first=AKM Zamir |date=25 December 2018 |title=Sonali proposes company to buy defaulters' assets |url=https://www.thedailystar.net/business/hallmark-sonali-bank-loan-scam-1678606 |access-date=5 November 2022 |work=The Daily Star |language=en}} The bank had 265 billion taka assets stuck in courts of which 200 billion was stuck with the Artha Rin Adalat (money loan court).

Ziaul Hasan Siddiqui was appointed chairman of the Bank in August 2019.{{Cite news |date=21 August 2019 |title=Sonali, Janata banks get new chairmen |url=https://www.thedailystar.net/business/banking/sonali-janata-banks-get-new-chairmen-1788304 |access-date=5 November 2022 |work=The Daily Star |language=en}} On 20 August, the managing director of Sonali Bank, Md Obayed Ullah Al Masud, was made the managing director of Rupali Bank and the managing director of Rupali Bank, Md. Ataur Rahman Prodhan, was made the managing director of Sonali Bank.{{Cite news |date=20 August 2019 |title=MDs of Sonali Bank, Rupali Bank swapped |url=https://www.thedailystar.net/business/banking/md-of-sonali-rupali-bank-swapped-1787860 |access-date=5 November 2022 |work=The Daily Star |language=en}} In November 2019, the Anti Corruption Commission arrested a retired employee of the bank on charges of embezzling 18.4 million taka from the bank.{{Cite news |date=6 November 2019 |title=Retired bank officer held for misappropriating Tk 1.84cr |url=https://www.thedailystar.net/city/news/retired-bank-officer-held-misappropriating-tk-184cr-1823905 |access-date=5 November 2022 |work=The Daily Star |language=en}}

On 25 May 2022, seven for officials of Sonali Bank and two businessmen from Hallmark Group were sentenced to 17 years for embezzlement.{{Cite news |date=25 May 2022 |title=7 ex-officials of Sonali Bank, 2 others get 17 years jail for embezzling Tk 27.50 lakh |url=https://www.thedailystar.net/news/bangladesh/crime-justice/news/7-ex-officials-sonali-bank-2-others-get-17-years-jail-embezzling-tk-2750-lakh-3031666 |access-date=5 November 2022 |work=The Daily Star |language=en}} On 24 July, the former managing director of the bank, Humayun Kabir, was sentenced to 17 years' jail and two other officials were sentenced to various terms for embezzling 12.5 million taka from the bank.{{Cite news |date=24 July 2022 |title=Tk 1.25cr embezzlement: Ex-Sonali Bank MD among 8 get 17 yrs, another gets 8 |url=https://www.thedailystar.net/news/bangladesh/crime-justice/news/tk-125cr-embezzlement-ex-sonali-bank-md-among-8-get-17-yrs-another-gets-8-3078306 |access-date=5 November 2022 |work=The Daily Star |language=en}}{{Cite news |date=25 May 2022 |title=Former Sonali Bank MD, 8 others jailed for loan forgery |url=https://www.tbsnews.net/bangladesh/former-sonali-bank-md-8-others-jailed-loan-forgery-426722 |access-date=6 November 2022 |work=The Business Standard |language=en}} Md Afzal Karim was appointed managing director of Sonali Bank in August 2022.{{Cite news |date=29 August 2022 |title=Afzal joins Sonali Bank as MD |url=https://www.thedailystar.net/business/economy/banks/news/afzal-joins-sonali-bank-md-3105296 |access-date=6 November 2022 |work=The Daily Star |language=en}}

Sonali Bank has a total of 1,230 branches. The most recent branch that opened service is in Dinajpur Board Branch, Dinajpur. Out of them, 467 are located in urban areas, 746 in rural areas, and 2 are located overseas.{{cite web |url=http://www.sonalibank.com.bd/overview.php |title=Overview of the Bank |website=Sonali Bank}} It also operates the Sonali Exchange Company Inc. in USA, Sonali Exchange in Dubai (UAE), Sonali Bank (UK) Ltd., United Kingdom, Hong Kong, (HAR), and Singapore to facilitate foreign exchange remittances. Sonali Bank UK remits up to 25 destinations across Bangladesh directly, these include Dhaka, Chittagong, Sylhet, Moulvibazar, Beanibazar, Balaganj, Biswanath, Jagannathpur, Sunamganj, Gopalganj, Nabiganj Upazila, Hobigonj, Kulaura, Tajpur.

There are currently four in the US in Washington DC, New York, Chicago and Los Angeles. Bangladesh Bank ordered Sonali Bank to close its United States–based exchange company, Sonali Exchange Company Incorporation, due to losses in 2018.{{Cite news |last=Uddin |first=AKM Zamir |date=18 March 2018 |title=BB asks Sonali to shutter its US exchange house |url=https://www.thedailystar.net/business/bb-asks-sonali-shutter-its-us-exchange-house-1549804 |access-date=5 November 2022 |work=The Daily Star |language=en}}

There are four branches in the UK, one located in Osborn Street, in London, another in Small Heath; Birmingham and in Manchester. It was fined 3.5 million GBP by the Financial Conduct Authority for money laundering offences and working with a politically exposed person in 2016.{{Cite news |date=14 October 2016 |title=Sonali Bank UK fined £3.25m for money laundering offences |url=https://www.thedailystar.net/business/sonali-bank-uk-fined-%C2%A3325m-money-laundering-offences-1298290 |access-date=5 November 2022 |work=The Daily Star |language=en}} The branch was briefly closed in 1998. Sonali Bank sought permission from Bangladesh Bank to send 1.71 billion taka to the United Kingdom branch in 2017.{{Cite news |last=Alo |first=Jebun Nesa |date=6 March 2017 |title=Sonali Bank to inject Tk 171cr into UK arm |url=https://www.thedailystar.net/business/sonali-bank-inject-tk-171cr-uk-arm-1371391 |access-date=5 November 2022 |work=The Daily Star |language=en}} It was on the brink of bankruptcy with transactions suspended by the Royal Bank of Scotland.{{Cite news |last=Alo |first=Jebun Nesa |date=29 October 2017 |title=Sonali Bank UK on the brink of insolvency |url=https://www.thedailystar.net/business/sonali-bank-uk-the-brink-insolvency-1483282 |access-date=5 November 2022 |work=The Daily Star |language=en}}

There are two branches in India, one in Kolkata and others in Siliguri of West Bengal state of India.{{cite web |title=Overseas Branches |url=https://www.sonalibank.com.bd/overseas_branch.php |website=Sonali Bank}} It received permission to inject 500 million taka into its Kolkata branch as fresh funds.{{Cite news |last=Alo |first=Jebun Nesa |date=29 May 2017 |title=Sonali Bank to inject Tk 50cr into Kolkata branch |url=https://www.thedailystar.net/business/sonali-bank-inject-tk-50cr-kolkata-branch-1412278 |access-date=5 November 2022 |work=The Daily Star |language=en}}

In 2010, Islamic banking was launched in 5 branches of different districts of the country through Sonali Bank. In 2009, again Islami banking was launched in six other branches of Sonali Bank in different districts across the country.{{cite web |title=Islamic banking |url=https://www.sonalibank.com.bd/islami_banking.php |website=Sonali Bank |access-date=17 March 2019}}

{{Update section|date=December 2024}}

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Category:Banks established in 1972

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