Karmasangsthan Bank, The

Karmasangsthan Bank, The was founded as a public sector specialised bank in 1998. The government launched the bank on 30 June with an approved capital of Tk 3000 million divided into 30 million shares of Tk 100 each under the Karmasangsthan Bank Act. Out of the paid capital of Tk 1185 million (2008), the government of Bangladesh paid 75% shares and the rest 25% was paid by public and private sector banks including Janata Bank, Agrani Bank, Sonali Bank, Uttara Bank, Rupali Bank, National Bank, IFIC Bank, BASIC Bank and Islami Bank Bangladesh and a few non-banking financial institutions and insurance companies. The prime adjective of the bank is to alleviate poverty from the country by providing credit facilities to unemployed youths, both male and female, to make them self-employed. The bank provides loan with a lower and simple interest rate on easy term. The bank has now (2011) 134 branches throughout the country with its head office in Dhaka. A total of 817 employees including 233 officers are extending the countrywide services of Karmasangsthan Bank.

The Bank implements its own micro-credit programme to make the unemployed youth self-reliant beside the government's special programmes including the Agro-based Industrial Credit Scheme and the collateral free microcredit programme for the retired and retrenched industrial workers and staff. The Bank disbursed a loan of Tk 6370 million to 146,999 unemployed males and females upto 2009. The Bank also realised Tk 4863 million against the dues of Tk 5388 million from them within that period. The cumulative rate of realisation was 90.3%.

The Bank disbursed as total collateral free microcredit of Tk 739 million to 13,556 retired and retrenched industrial workers and staff upto 2009. During this period, it realised Tk. 478 million against the dues of Tk 638 million from them. The cumulative rate of realisation was 74.9 percent. Under the Agro-based Industrial Credit Scheme, the Bank disbursed a total loan of Tk 483 million to 1831 entrepreneurs' upto 2009 and realised Tk 297 million against the dues of Tk 326 million from them within that period. The cumulative rate of realisation stood at 91.1 percent.

Basic facts and economic indicators (in million Taka)

Indicators	2004	2005	2006	2007	2008	2009
Authorised capital	3000	3000	3000	3000	3000	5000
Paid up capital	985	985	1085	1085	1185	2485
Reserved Fund	190	153	159	192	216	260
Deposits
a) Call Deposits
b) Term Deposits
Loans and Advance	262	1107	1506	1641	1914	2236
Investment	-	-	-	-	-	-
Total Asset	1396	1726	2141	2423	2744	4282
Total income	124	121	142	162	195	230
Total Expenditure	79	95	94	107	116	139
Foreign Currency Trading
a) Export
b) Import
c) Remittance
Total Manpower	86	620	690	678	703	817
a) Officers	145	188		219	219	233
b) Staff	475	502		459	484	584 -	Correspondent Banks	-	-	-	-	-	-
Total Branches (in numbers)	85	92	92	92	103	134
a) Domestic	-	92	92	92	103	134
b) Overseas	-	-	-	-	-	-
Agriculture Credit
a) Loan Disbursed	97	203	321	231	565
b) Realised	91	94	169	181	358
Industrial Credit
a) Loan Disbursed	39	125	92	107	149
b) Realsied	33	39	86	137	204
Loan Outstanding by Sector
a) Agriculture and Fisheries		338	369	466	598	643
b) Industry		159	174	230	444	498
c) Trade and Commerce		301	342	434	510	583
d) Poverty Reduction		-	16	335	175	333

Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Bank o Arthik Prothisthan Samuher Karjaboli (Annual Report on Banks and Financial Institutions), 2004-05 to 2009-10.

Presently, the Bank provides loan for setting up of the following projects: poultry farm, dairy, fish farm, beef fattening and goat-rearing, tailoring and sewing, handicrafts and cottage industries, handloom, pottery, hair-cutting saloon, and laundry, transportation (except two-stroke engines), wooden and steel furniture, boutique, computer, photo-copying, automobile and light engineering workshop, rural transport business (van, rickshaw, boat etc), stationary and departmental store, radio-TV and electrical goods repairing workshop, rural sanitary, pharmacy and nursery. Beside, any profitable, productive and service-oriented economic initiative is given due consideration by the Bank for granting loan.

Karmasangsthan Bank grants a maximum amount of Tk 1.00 million to an individual and Tk 4.00 million to a joint venture. The interest rate per year is ten percent for productive and service sectors and twelve percent for commercial sectors. [Muhammad Abdul Mazid]