Sonali Bank Urged to Expand Lending Role

Dr. Ahsan Hossain Monsur, Governor of Bangladesh Bank, on Monday called upon state-owned Sonali Bank Limited to adopt a more proactive stance in lending, emphasising its critical role in national economic development. Speaking at the 2026 Annual Banking Conference held at the International Convention Centre, he urged the bank to operate fully as a commercial institution, balancing deposit management with active credit provision.

Dr. Monsur noted that while Sonali Bank has long excelled in mobilising substantial deposits, its cautious approach to lending has limited its broader social and economic impact. “Sonali Bank is, first and foremost, a commercial lender,” he said. “Excessive caution in loan approvals is inconsistent with the core principles of commercial banking. The bank cannot rely solely on deposits for sustainability; it must provide productive loans to stimulate economic growth.”

Acknowledging that the bank has experienced notable operational profit growth in recent years, Dr. Monsur cautioned that financial performance alone is insufficient. “Profit is meaningful only when it is reinvested into the economy. Otherwise, gains may not be sustainable over the long term,” he observed.

He highlighted the pivotal role of state-owned banks, such as Sonali, in financing agriculture, small and medium-sized enterprises (SMEs), industrial projects, and infrastructure initiatives. Delays in credit disbursement, he warned, could impede national development programmes. To address these challenges, he recommended modernising risk assessment procedures, diversifying the loan portfolio, and introducing innovative credit products tailored to emerging sectors.

Dr. Monsur’s key observations are summarised in the following table:

Concluding the conference, Dr. Monsur emphasised: “By adopting a stronger lending policy, Sonali Bank will not only enhance its commercial value but also act as a powerful engine of national economic growth.” His remarks signal a strategic push for the bank to leverage its vast deposits and operational capacity to accelerate development across key sectors, particularly in agriculture, SMEs, and infrastructure.