Written by The Banking Post
Sonali Bank PLC is setting its sights on ending 2025 on a stronger footing — aiming to wipe out its capital and provisioning shortfalls, enhance asset quality, and fast-track its digital transformation amid a tough banking environment.
The country’s largest commercial bank has seen steady growth in deposits and investments despite the overall economic slowdown, said Md Shawkat Ali Khan, Managing Director and CEO of Sonali Bank.
“Our capital shortfall in 2024 stood at Tk 59 billion, which we’ve now reduced to Tk 23 billion. We’re confident of overcoming it entirely by year-end,” he said, noting that the improvement in asset quality and cash recovery is driving the turnaround.
The bank is now prioritising cash recovery campaigns and stricter borrower screening to prevent new Non-Performing Loans (NPLs). “If asset quality improves, provisioning needs will automatically decline,” he added.
Khan, who took charge in October 2024, credited teamwork and stronger communication for restoring confidence among depositors. Sonali’s deposit portfolio has risen to around Tk 1.74 trillion, reflecting renewed trust in the institution.
Despite liquidity stress in the broader banking sector, the state-owned lender remains well-positioned. “We have enough liquidity to support economic activities and expect operating profits to reach Tk 80 billion by year-end, up from less than Tk 60 billion in 2024,” Khan said.
He also expressed confidence that Sonali Bank would remain resilient even if the central bank withdraws liquidity-support tools such as Assured Liquidity Support (ALS).
Alongside financial reforms, Sonali Bank is ramping up its digital transformation, focusing on customer convenience and efficiency. “We have digitised services like e-Wallet and e-Sheba, and launched our own payment gateway. Our goal is to let customers access all services from home,” the CEO said.
Khan added that the bank aims to elevate service quality to international standards and revive what he called the “Sonali Jug” — the golden era of Sonali Bank.
