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]