Sonali Bank Charts Path to Sustained Profitability

State-owned Sonali Bank has successfully navigated the financial turbulence caused by high-profile loan defaults, including those associated with the Hall-Mark Group, and has reinforced its financial foundation. The bank is now firmly on a trajectory towards substantial profitability, while simultaneously increasing its use of technology to improve transparency and expand its outreach to a broader customer base.

Under its recent strategy, Sonali Bank has deliberately limited lending to high-risk corporate borrowers, instead prioritising credit to small and medium-sized enterprises (SMEs). This targeted approach has already proven effective. In 2025, the bank reported a record operating profit of BDT 8,017 crore, nearly four times the BDT 2,090 crore recorded in 2021. From this, the bank aims to address its historical capital shortfall while achieving a net profit target of BDT 1,500 crore.

Despite these gains, certain loans to groups including Hall-Mark, Beximco, Thermex, and Orion remain unrecovered, constraining reductions in non-performing loans (NPLs). Nevertheless, the bank’s NPL ratio stood at 18 per cent in 2025, well below the national banking sector average of 35 per cent.

Managing Director Shawkat Ali Khan stated, “We are intensifying recovery of overdue loans while promoting lending to smaller businesses. Digital technology is being leveraged to reach rural and underserved areas. All necessary measures to ensure a strong and resilient banking foundation are being implemented, and as a result, the bank’s income has grown significantly.”

The table below summarises Sonali Bank’s key financial indicators from 2021 to 2025:

In 2025, Sonali Bank earned BDT 9,764 crore from investments, BDT 7,483 crore from interest, BDT 1,038 crore from commissions, and BDT 359 crore from foreign exchange operations. After deducting deposit interest payments and staff salaries, the bank’s net interest income was BDT 268 crore, a significant improvement from BDT 866 crore in 2024.

By addressing long-standing capital deficiencies, implementing a focused lending policy, and expanding technological use, Sonali Bank has strengthened its financial stability and is poised for sustainable, high-value profitability in the years ahead.