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Ansar-VDP Unnayan Bank


Ansar-VDP Unnayan Bank a state owned specialised bank established under the Ansar VDP Unnayan Bank Ordinance, 1995. The bank commenced its activities in November 1996 with an authorised and paid up capital of taka 1,000 million and taka 100 million respectively through opening a local office in Dhaka. In 2009 the authorised and paid up capital was taka 1000 and taka 381 million respectively. Of its total paid up capital, 32.8% was paid by the government of Bangladesh and the remaining 67.2% by members and officials of Ansar and VDP and the employees of the bank itself.

Basic facts and Economic Indicators (In Million Taka).

Indicators 2004 2005 2006 2007 2008 2009
Authorised Capital 100 100 1000 1000 1000 1000
Paid Up Capital 160 179 199 200 288 365
Reserved Fund 30 32 45 49 49 52
Deposits - 151 203 264 267 397
a) Call Deposits - 142 193 250 253 358
b) Term Deposits - 9 10 14 14 39
Loans and Advance 520 678 930 940 870 1056
Investment 406 308 118 12 12 352
Total Asset 1020 1068 1147 1240 1297 1589
Total Income 201 182 202 200 158 163
Total Expenditure 141 125 113 121 116 134
Total Manpower: 444 453 453 451 445 492
a) Officers 145 145 145 147 143 192
b) Staff 299 308 308 304 302 300
Total Branches (in numbers) 76 81 81 81 85 92
a) Domestic 76 81 81 81 85 92
b) Overseas - - - - - -

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.

The bank was set up basically to provide microcredit facilities to Ansar-VDP members for house building and other economic activities with or without collateral and for performing other activities under specific instruction of bangladesh bank.

In December 2009, the bank had 92 branches with a total of 492 employees, including 192 officers working under the overall governance of the managing director at its head office at Dhaka. A manager accountable to the managing director, the chief executive officer of the bank, heads each branch. The bank follows group-based multipurpose microcredit lending policies to finance various rural income generating activities. List of these activities includes beef fattening, poultry farming, fish and shrimp culture, small and cottage industries, light engineering workshops, trade in grocery items, buying sewing machines and marketing of agricultural products. The bank plans to expand credit facilities to at least 60 types of income generating activities. To avail the credit facilities of the bank, a borrower must be a member of a group of five. A member is given a maximum loan of taka 15,000 without any security or collateral, but the group is to provide a guarantee for the credit. It has been made mandatory for every member of a group to make a compulsory weekly deposit of taka 5 with the bank. The bank pays interest of 7% per annum on group savings.

The principal objective of such savings schemes is to let members understand the impact of savings in the long run and develop their savings habit. In addition to its group-based microcredit facilities, Ansar VDP Unnayan Bank also provides project loans with or without equity participation and collateral depending upon the feasibility of projects. [Muhammad Abdul Mazid]