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Sonali Bank PLC

autonomous · verified (verified 2026-05-17)

Profile

Head
Md. Shawkat Ali Khan
Role
Managing Director & CEO
Annual budget
—
Staff
—
Established
1972
Legal basis
Bangladesh Banks (Nationalisation) Order, 1972 (P.O. No. 26 of 1972); converted to public limited company under Companies Act 1994 on 15 November 2007

Provisional 2025 results show Sonali Bank has eliminated its chronic capital deficit (surplus Tk 83 crore vs. Tk 5,949 crore deficit in 2024 audited accounts); NPL ratio fell to 15.51% -- lowest among state-owned banks but still above the IMF ECF target of 10% by June 2026; bank is targeting 11-12% NPL by end-2026 and single digits by 2027; BDBL merger MoU signed May 2024 is in due-diligence phase; BB governor has designated Sonali as one of two anchor entities in the nine-bank SOB consolidation; Tk 6,600 crore BSFIC bond request pending with government.

Recent activity

Provenance & notes

Sonali Bank was established in 1972 by amalgamating and nationalizing the East Pakistan branches of National Bank of Pakistan, Bank of Bahawalpur, and Premier Bank under the Bangladesh Banks (Nationalisation) Order 1972 (P.O. No. 26 of 1972). It was incorporated as a public limited company on 15 November 2007. Government holds 100% of paid-up capital (authorized Tk 6,000 crore; paid-up Tk 4,530 crore). Chairman (in current charge) is Muhammed Mahbubur Rahman as of board listing updated 12 April 2026; head_role of MD/CEO is the operational head and is the primary leadership position tracked. Shawkat Ali Khan assumed MD/CEO role on 30 October 2024 per FID appointment letter dated 21 October 2024; previously MD of Bangladesh Krishi Bank and DMD of Rupali Bank. The bank has 1,233 branches including two overseas branches in Kolkata and Siliguri (India). The Tk 20,000 crore figure in the task prompt refers to the government's capital injection into Sammilito Islami Bank PLC (five-bank Islamic merger); it is not a direct recapitalization of Sonali Bank itself. Sonali Bank's own capital turnaround was achieved through internal means (recovery drives, disciplined lending) without a fresh government injection in FY2025. The BDBL merger MoU (May 2024) is in due-diligence phase; BDBL's own reluctance following a depositor run complicates timeline. NPL figure of 15.51% is provisional for end-2025; IMF ECF benchmark requires SOCBs to reach 10% by June 2026 -- a target analysts consider aggressive given the gap. Tk 6,600 crore BSFIC bond request is pending and material: if granted it would mechanically reduce reported NPLs and provisions, aiding the June 2026 target. Investment income from government bond holdings (Tk 9,799 crore, up 55% YoY) is the primary driver of the 2025 profit record; critics note this represents a quasi-fiscal subsidy arrangement rather than true commercial recovery. All figures cross-verified against at least two primary sources (TBS, Financial Express, Daily Star, New Age, official Sonali Bank website).

Sources