The New Nation - Internet Edition

Staff Reporter

Finance Adviser Dr Mirza Azizul Islam Monday expressed his dissatisfaction over the performance of the newly transformed Sonali Bank.

"I must say the performance of Sonali Bank Ltd is not satisfactory at all," the Adviser said inaugurating a daylong conference at a city hotel.

Asking for the removal of lengthy process of disposal of loan applications Dr Aziz said, "It takes one year to dispose of loan applications in some cases in Sonali Bank. I hope it will be removed immediately."

After waiting three months a loan applicant goes to the private commercial banks to get quick service, he said.

Dr Aziz also asked the bank to become a pioneer in narrowing the gap between the deposit and lending rates through reducing the lending rates.

He advised the bank authority to improve efficiency in all aspects of financial soundness, including capital adequacy, and banking services like quick disposal of loan proposals with a client service attitude. The finance Adviser said the state-owned commercial banks would not be able to sustain the present-day competitiveness through continuing the present sorry state.

He advised them to take the services to a level where bank customers will be considered royals.

Dr Aziz asked the bankers to look into the weak points of the bank, including loans and advances, export financing, rising classified loans and sharing much less than overall growth in remittance inflow, to ensure faster growth of the bank.

He, however, appreciated increase in deposits, investment, import financing and operating profit during the year 2007. Sonali Bank earned an operating profit of Tk 601 crore last year against the yearly target of Tk 452 crore.

Bangladesh Bank Governor Dr Salehuddin advised the denationalised

Sonali Bank to become a trendsetter in reducing interest rate and the lending rate gap through improving its efficiency to force other banks, especially the private commercial banks, to reduce their lending rates.

"Take a look at the service taking the clients into confidence," he told the bankers, advising them to simplify credit procedure as one of the means to improve operational efficiency.

He advised the bankers to remain alert about the possibility of long-term loans becoming classified. He also advised banks to focus on providing loans to small and medium enterprises.

The Bangladesh Bank Governor said the central bank was planning to completely release the government's treasury function gradually to the state-owned banks. Sonali Bank is currently operating part of the function.

Sonali Bank Chairman Ali Imam Majumder and Managing Director SM Aminur Rahman also spoke on the occasion.