Internship Report on “Does Insufficiency of Resources Matter for Bank Performance? Evidence from Sonali Bank PLC.”

Abstract

The report on Impact of Insufficient Resources on Banking Performance of Sonali Bank PLC has been prepared based on twelve-week internship experience where I had the opportunity to observe and monitor the operations of the bank. According to the study, resource inadequacy – especially in financial, human, technological and physical resources, hampers the efficiency, profitability and service quality of the largest state-owned commercial bank in Bangladesh – Sonali Bank. I did my internship in the account opening section of my organization, cheque receiving and processing section, loan documentation, digital banking services, and foreign remittance section. These experiences showed how a lack of resources made things impractical. Using outdated technology like Pentium computers instead of modern Core i7 slows down transactions and creates customer dissatisfaction. Similarly, staff shortages and inadequate training negatively impact productivity and harm customer service. According to the research, the limitations of these resources will harm the financials such a return asset (ROA), return on equity (ROE), non-performing loan (NPL), and cost to income ratio. Sonali Bank has started various initiatives, like digital services (E-wallte, E-Sheba), and training but the overall progress is still slow. The report cited technology upgrades, recruiting and training staff, loan recovery and fast-tracking digitalisation as means to improve banking performance and customer satisfaction.