Rajshahi Krishi Unnayan Bank
Rajshahi Krishi Unnayan Bank (RAKUB) the largest development partner in agricultural finance in the Rajshahi and Rangpur Division (northwest of Bangladesh). As per the Presidential Ordinance No 58, 1986, the bank was established on 15 March 1987 by taking over of all offices, branches, and other establishments of Bangladesh Krishi Bank (BKB) in Rajshahi division, including their assets and liabilities. As the largest development partner in the northwest region RAKUB aims at overall development of farmers and all the sectors and sub-sectors of agriculture in this region. The bank also performs like financing in agri-business and agro-based industries and poverty alleviation programs. The bank is also given finances for production of all the summer and winter crops, horticulture and nursery etc. Particularly high yielding, high price crops and seeds production is also encouraged. The bank also extends credit facilities for systematic and commercial livestock farming, which includes dairy, beef fattening, poultry, raising and setting up of hatcheries.
At present, the bank is operating its all services through 383 branches throughout the country. Among them the number of rural branches is 304. The headquarters of the bank is located at Rajshahi city, some 270 km to the north of Dhaka. The bank has two divisional offices and two divisional audit offices in Rajshahi and Rangpur. Merely a training institute of the bank is situated at Rajshahi city.
The management of RAKUB is vested in a 8-member board of directors including the chairman and the managing director appointed by the government. An executive committee is consists of 3-member of board of directors' makes policy during emergency period. An executive officer is chief of managing director of the bank.
Basic Facts and Economic Indicators (In Million Taka)
| Indicators | 2018 | 2019 | 2020 |
| Authorized Capital | 10000 | 10000 | 10000 |
| Paid up Capital | 8248 | 8248 | 8248 |
| Reserved Fund | 207.9 | 207.9 | 208 |
| Deposits | 49152.2 | 52150.6 | 56106.4 |
| a) Call Deposits | 6121.6 | 6590.4 | 6849.9 |
| b) Term Deposits | 43030.6 | 45560.2 | 49256.5 |
| Loans and Advances | 55434.1 | 58305.8 | 64086.3 |
| Investment | 612.8 | 612.8 | 612.5 |
| Total Asset | 74592.2 | 77392.9 | 77495.9 |
| Total Income | 4943.3 | 4922.6 | 4525.6 |
| Total Expenditure | 6085.4 | 6566.6 | 7491.5 |
| Foreign Currency Trading | 3197.8 | 7699.3 | 8349.9 |
| a) Export | 0 | 0 | 0 |
| b) Import | 3092 | 7441 | 8033 |
| c) Remittance | 105.8 | 258.3 | 316.9 |
| Total manpower | 3720 | 3520 | 3992 |
| a) Officers | 2014 | 2021 | 2590 |
| b) Staff | 1706 | 1499 | 1402 |
| Correspondent Banks | 0 | 0 | 0 |
| Total Branches (in numbers) | 380 | 381 | 383 |
| a) Domestic | 380 | 381 | 383 |
| b) Overseas | 0 | 0 | 0 |
| Agriculture Credit | |||
| Loan Disbursed | 10571 | 11723.8 | 8904.8 |
| Realised | 12703.3 | 12062.7 | 6191.9 |
| Industrial Credit | |||
| Loan Disbursed | 3699.1 | 5789 | 10554.1 |
| Realsied | 2857.5 | 6486.6 | 6957.6 |
| Loan Outstanding by SECTOR | |||
| Agriculture and Fisheries and Forestry | 32070.9 | 34437.3 | 34519.7 |
| Industry | 3727.4 | 4628 | 4295.4 |
| Trade and Commerce | 4915.6 | 5604.4 | 11532.9 |
| Poverty Reduction | 1164.4 | 1264.7 | 1261.2 |
| CSR | 0 | 0 | 0 |
Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Barshik Protibedon [Annual Report on Banks and Financial Institutions], 2019-20 and 2020-21.
The bank distributes 60% of the lending budget in the crop production sector and the remaining portion allocate to the northwestern region of the country for the same purpose. The bank identified potential 7 sectors and agri-based 101 sub-sectors and takes initiative to disburse loan for entrepreneurs improvement of those area. An 'Entrepreneurs Development Cell' has been formed in the principal branch aimed to provide advice and inclusive assistance to entrepreneurs, who want to establish new project and construct former project. There is also a 'credit committee' in every zonal office for given swiftly advice and assistance to the intent entrepreneurs.
The bank has enforced newly 'credit policies 2005' to obstruct the flow of centralized lend in one sector, the bank creates multifarious lending system and diversification in loan, substitute of importing goods increase production of agricultural yielding, to expand agri-based industry, to boost more loan in small and medium scale than that of big amount and long-term loan.
The bank operating a few projects named with 'poverty reduction loan programs to generate job opportunity for the educated and less educated unemployed youths and landless poor people of the Rajshahi region. The bank distributes loan individually and collectively under such projects to improve lifestyle and socio-economy condition of the poor people. The bank conducts various security free loan included goat breeding programs, marginal and small farm based yielding project, RKUB self-dependent credit programme, self-sufficient credit programme, Women entrepreneurs advance loan project, loan programme for handicapped people, loan programme for establishing nursery or garden of medicinal plants, grain stored loan project and special loan programme for poverty evacuation. Moreover, the bank also inaugurates 'consumer credit project' and 'infrequent loan for employees'.
RKUB functioning two types loan programs with the assistance of foreign aid including, 1. SEDCP (Small Enterprises Development Credit Project) and 2. NCDP (Northwest Crop Diversification Project). Under these projects, the bank starts agriculture loan distribution activities to the intent peasants in different districts for establishing new small project providing necessary training, to improve of old project, launched new trade and stopping old business, to produce of high worthy harvest, to establish agrarian project and to improve the trade of agro-products. As per the government rules the interest rate of agricultural loan is between 8%-10%.
Besides, the current lending sectors, the bank disburses loan interested 2% in importing substituted 19 agro-products including different pulses, seed oils, spices related harvest and maze.
In 2019, bank deposits accounted for 0.4 per cent of total banking sector deposits and loans and advances accounted for 0.5 per cent of total banking sector loans and advances. The average interest rate differential between June 2019 based deposits and loans and advances was 3.61 percent. [Muhammad Abdul Mazid]
