SME Lending Activities of Sonali Bank Limited – A study on N.C.T.B branch

Abstract

SME financing in a significant sector of banking performances. Bangladesh bank has updated its definition of Small and Medium Enterprises, Micro, Cottage in line with the National industrial policy 2016 and set a limit to the amount of credit they can avail. Moreover, banks must set aside for SMEs 20 percent has to be kept for Micro, Cottage and Small and Medium Enterprises. Now the instruction is to raise lending to Manufacturing SMEs to at least 40 % and Trading SMEs to maximum 35 % and Service SMEs to at least 25%. At least 10% of the lending will have to go to women SME entrepreneurs. This rate will have to be raised to 15 % by 2021. Doing internship in financial institution always gives best chances to the student of business faculty to apply their knowledge a practical filed. Banks are the most significant one in the financial sector as they play a very crucial role for the economy. I got an opportunity during my internship to make a report about Sonali Bank Ltd. This report is about the SME Lending Activities of SBL. SME banking essentially provides loans to Small and Medium sized manufacturing, trade, service, agro-based industries, agriculture and non-farm activities located across the country. I prepared the full contents of the report in several chapters.