Ansar-VDP Unnayan Bank

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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]