Bangladesh Bank Governor Dr Ahsan H Mansur on Monday urged the management of state-owned Sonali Bank PLC to adopt a more proactive approach in lending, emphasising that the institution should operate fully as a commercial bank.
Addressing the bank’s Annual Conference 2026 at the International Convention Centre, Dr Mansur noted that while Sonali Bank continues to accumulate substantial deposits, it has been overly cautious in extending loans, limiting its contribution to the country’s socioeconomic development.
“Sonali Bank is a commercial lender by mandate,” he said. “Yet, its cautious stance on credit approval does not reflect the principles of commercial banking. A bank cannot sustain itself on deposits alone without actively supporting economic growth through productive lending.”
The governor acknowledged that the bank has achieved significant growth in operating profits in recent years, but he cautioned that such financial performance is insufficient if the bank does not reinvest in the economy. “A deposit-heavy but loan-light model is not sustainable,” he added.
Highlighting the broader implications, Dr Mansur pointed out that state-owned banks like Sonali play a pivotal role in financing key sectors such as agriculture, small and medium enterprises (SMEs), and industrial development. By not fully utilising its lending capacity, the bank risks slowing down initiatives crucial for national development.
He also encouraged Sonali Bank to modernise its risk assessment mechanisms, diversify loan portfolios, and adopt more innovative credit products to meet the evolving needs of businesses and consumers alike.
A summary of the governor’s key observations is presented below:
| Aspect | Observation | Implication |
|---|---|---|
| Deposits | Large and growing | Positive, but underutilised |
| Lending | Very cautious | Limits socioeconomic impact |
| Profitability | Remarkable growth in operating profits | Not sustainable without credit expansion |
| Role | Commercial bank | Needs to actively support economy through loans |
| Recommendation | Expand loan activities, diversify credit products | Align with commercial banking mandate |
The call from the central bank comes amid increasing expectations that state-owned banks must balance financial stability with active participation in national development, ensuring that profits are complemented by meaningful contributions to economic growth.
Dr Mansur concluded by stressing that adopting a more assertive lending strategy would not only enhance Sonali Bank’s commercial credentials but also reinforce its role as a catalyst for Bangladesh’s broader economic progress.