Karmasangsthan Bank, The

Karmasangsthan Bank, The was founded as a public sector specialized 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. As at the end of 2020 the authorized and paid-up capital of the Karmasangsthan Bank stood at BDT 10000 and 5590 million. Out of the paid capital, 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 (2019) 248branches throughout the country with its head office in Dhaka. A total of 1446 employees including 734 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 programs including the Agro-based Industrial Credit Scheme and the collateral free microcredit programme for the retired and retrenched industrial workers and staff.

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.

Basic Facts and Economic Indicators (In Million Taka)

Indicators	2018	2019	2020
Authorized Capital	10000	10000	10000
Paid up Capital	4995	5495	5590
Reserved Fund	738.4	830	830
Deposits	3041.9	6753.1	7570.8
a) Call Deposits	585.5	802.5	1031.3
b) Term Deposits	2456.4	5950.7	6539.5
Loans and Advances	12969.5	15803.8	18923.1
Investment	0	0	0
Total Asset	15084.4	19695.3	22641.4
Total Income	1064	1394.6	1424.1
Total Expenditure	900.6	1040.1	1052
Foreign Currency Trading	0	0	0
a) Export	0	0	0
b) Import	0	0	0
c) Remittance	0	0	0
Total manpower	1359	1408	1446
a) Officers	708	730	734
b) Staff	651	678	712
Correspondent Banks	0	0	0
Total Branches (in numbers)	244	246	248
a) Domestic	244	246	248
b) Overseas	0	0	0
Agriculture Credit
Loan Disbursed	0	0	0
Realised	0	0	0
Industrial Credit
Loan Disbursed	0	0	0
Realsied	0	0	0
Loan Outstanding by Sector
Agriculture and Fisheries and Forestry	1055.6	1232.1	1468.1
Industry	943.9	1032.4	1170.9
Trade and Commerce	3162.7	3512.6	3795.8
Poverty Reduction	5956	7660.8	9701.6
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.

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. In 2019, the average interest rate differential between June 2019 based deposits and loans and advances was 3.0 percent. [Muhammad Abdul Mazid]