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Report on Bangladesh Krishi Bank

Submitted To: Shajahan, Bohi Faculty of Bank Fund Management American International University-Bangladesh

Submitted By: Hossan MD.Maruf - !-"##!$-% &ho'dhury (usrat Rahman - !-"##$)-% *slam MD.+sif , !-"#""#-% -a'ren.e /omes -

Report 0n Bangladesh Krishi Bank

Table of &ontent

*ntrodu.tion +n 01er1ie' of Banking System *n Bangladesh +n 01er1ie' of 2Bangladesh Krishi Bank3 4BKB5 Bangladesh Krishi Bank as friend of 6armers and Rural 7eople &rop loan 6isheries loan Shrimp loan -i1e sto.k loan 0b8e.ti1es the program 9:portable items 7o1erty alle1iation 7rograms or 7ro8e.ts &redit program for the landless and Marginal 6armers Small 6armers ; landless -aborers De1elopment 7ro8e.t 4S6D75

BKB-(/0 Mi.ro &redit 7rogram -imitations< 7roblems of Bangladesh Krishi Bank Re.ommendation &on.lusion Referen.es

*ntrodu.tion The major occu ation of the eo le of Bangladesh is !"rishi!# The Bengali term "rishi means !Agriculture!# A$out %&' of the o ulation de ends directly or indirectly on agriculture (hich contri$utes a significant ortion to )*+# Bangladesh "rishi Bank ,B"B- has $een esta$lished under the Bangladesh "rishi Bank order ./01 ,+resident2s 3rder 4o 50 of ./01-#B"B is a Banking 6om any under the Banking 6om any Act-.//.# Its 7ead 3ffice is located at "rishi Bank Bha$an, %1-%& Motijheel 6ommercial Area, *haka-.888, Bangladesh# The rimary o$jective of B"B is to rovide credit facilities to the farmers for the develo ment of agriculture i#e# 6ro roduction, Fish culture, Animal 7us$andry etc, entre reneurs engaged in develo ment of agro-$ased and cottage industries# The Bank is guided in accordance (ith the olicies and rinci les of the )overnment of the +eo les 9e u$lic of Bangladesh# B"B has an authori:ed ca ital of Tk# .&,888 Million ,Taka Fifteen thousand Million- only and aid u ca ital of Tk# /,888 Million ,Taka 4ine thousand Million- only (hich is fully aid $y the )overnment# The Bank started commercial functioning since ./00 to generate more loan a$le fund from the idle rural and ur$an savings and invest them for the $etterment of our economy# The Bank o erates its function through its /%0 $ranches ,e;ce t 9ajshahi *ivision-# It has .< foreign e;change ,Authori:ed dealer- $ranches# In the field level the Bank has / *ivisional, 5/ 6hief 9egional and 5= 9egional offices for close su ervision of the $ranch activities# For smooth o eration, as a art of internal control and com liance system, the $ank has also <1 field level audit offices of (hich / at *ivisional and &= at 9egional levels# In the 7ead 3ffice the Bank has = *ivisions headed $y

)eneral Managers, 5% *e artments and a Training Institute headed $y *e uty )eneral Managers# >ocal +rinci al 3ffice of B"B is headed $y a )eneral Manager# The e;isting strength of Bank2s man o(er is /=18 against the a roved strength of .1<%8 as on 1. *ecem$er, 58.8#The Bank has a Board of *irectors com rising of .. mem$ers# The Board is headed $y the 6hairman# The Board 6hairman is generally an e; erienced rofessional?e;- rofessional (ho has (ide acce ta$ility and ra ort# The *irectors re resent $oth u$lic and rivate sectors and are a ointed $y the )overnment# The Managing *irector is the 6hief @;ecutive of the Bank# 7e is a ointed $y the )overnment# The Bank has t(o osts of *e uty Managing *irectors and they are a ointed $y the )overnment# The Bank has .= osts of )eneral Managers# They are also a ointed $y the )overnment#

The characteristics and the evolution of the agricultural sector around the (orld are diverse and finance is a key issue in the evolution of the agricultural sector# Agriculture is a key sector of the economy in many develo ing countries# Strengthening this sector reAuires, amongst others, $etter accessi$ility to financial services# Majority of eo le in develo ing countries live in rural areas and are involved in agriculture activities# In these countries, agriculture is the illar of the economy and the other sectors of activity such as industry, commerce, and u$lic and rivate services largely de end on it# Agriculture first rovides for families su$sistence needs# Any sur lus generated rovides cash income to cover other essential needs# The sur lus is sold in the market to meet domestic demand for food cro s# 6ash cro s such as cotton, eanuts, coffee, tea, jute, to$acco, vanilla and so on are mainly aimed at e; ort markets# 9aising livestock such as oultry, goats, igs and shee (hether for meat, milk, eggs, leather or as draft animals or for religious or cultural rituals is also a major agricultural activity# @; orted agricultural roducts re resent a major source of foreign currency for several countries# Bo$s in the u$lic sector and jo$s in commerce and other services are also largely de endent on the rimary sector# In Mali, for e;am le, the cotton sector contri$utes significantly to e; ort revenue, em loys nearly 1#& million individuals, and generates considera$le income in rural areas (hich has made ossi$le investment in the hysical and social infrastructure# *es ite this major contri$ution from the agricultural sector to the economy, the rural sector in develo ing countries only has modest means to fulfill its task#

Agricultural finance should $e integrated as much as ossi$le into an overall develo ment a roach $ased on su ort for agricultural roduction, the marketing of agricultural roducts, im rovement in management ca acity, rotection of the environment and risk management# The major occu ation of the eo le of Bangladesh is !"rishiC# "rishi is a Bengali (ord (hich means !Agriculture!# A$out %&' of the o ulation de ends directly or indirectly on agriculture# Agriculture is the single largest roducing sector of the economy since it com rises a$out 18' of the countryDs )*+ and em loys around <8' of the total la$or force# The erformance of this sector has an over(helming im act on major macroeconomic o$jectives like em loyment generation, overty alleviation, human resources develo ment and food security# So the ro er develo ment of the country cannot $e thought of (ithout the develo ment of this agricultural sector# In a develo ing country like Bangladesh, the $anking system, as a (hole, lays a vital role in the rogress of its economic develo ment# A $ank, as a matter of fact, is just like the heart in the economic structure and the ca ital rovided $y $ank is just like the $lood in it# As it is mentioned already that the economy of Bangladesh is mainly dominated $y agriculture, that is (hy if the finance is not rovided to the agricultural sector, the gro(th of the economy (ill $e slo(ed do(n# >oan facility rovided $y the $ank (orks as an incentive to the roducer to increase roduction# "ee ing this in mind, for the ur ose of the develo ment of agricultural sector, the )overnment of Bangladesh,)3B- has esta$lished t(o s eciali:ed $anks EnamelyF Bangladesh "rishi Bank ,B"B- and 9ajshahi "rishi Unnayan Bank ,9A"UB-#But our main concern (ill $e Bangladesh "rishi Bank ,B"B- # These t(o $anks are continuously trying to rovide su ort for the advancement and ro er develo ment of its agricultural sector# In this res ect, the $anking system acts as a major contri$utor for the

develo ment of the agricultural sector of the country# First of all, they are romoting savings, mostly from middle and lo(er middle class of ur$an and rural eo le# Secondly these $anks romote investment in different sectors of agriculture, industry and trade# They either invest directly or advances loan to the investors# They are continuously hel ing the disadvantaged eo le to $ecome self-sufficient $y roviding them micro credit#

+n 01er1ie' of Banking System *n Bangladesh After Inde endence of Bangladesh the $anking sector (as restructured as a fall out of (ar of li$eration# Banking gre( rimarily in the u$lic sector (ith main em hasis develo ment needs of the (ar-torn economy# Gith gradual li$erali:ation in su$seAuent years, it (as increasingly felt that $anks should $e allo(ed in the rivate sector for giving a filli to develo ment rocess on the $asis of rivate initiative# In the %82s for the first time a num$er of $anks in the rivate sector (ere allo(ed# Su$seAuently in the mid /82s some more $anks in rivate sector commenced o erations# In .///, 1rd )eneration of rivate sector $anks (as given ermission to o erate# Finally in 588. =th )eneration of rivate sector $anks commenced o eration# As a result (hile u to %82s financial sector (as dominated $y u$lic sector $anks, $anks in the rivate sector (ere given increased res onsi$ility (ith the assage of time# The share of de osits of 4ationali:ed 6ommercial Banks ,46Bs- in total de osits (hich stood at %/' in ./%8 gradually declined over years to reach the level of &&' in 5888# Simultaneously, +rivate 6ommercial Banks ,+6Bs- (hich (ere res onsi$le for only .%' of de osits in ./%& this share increased gradually over the years to constitute a$out one third of the total de osits of the country $y the end of the millennium# But market share of de osits of F6Bs did not change much during the last t(enty years# In the early %82s the share (as <' and it stood at 0' $y the end of the century (ith a relatively small $ranch net(ork in the country# Bangladesh economy has $een e; eriencing a ra id gro(th since the 2/8s# Industrial and agricultural develo ment, international trade, inflo( of e; atriate Bangladeshi (orkers2 remittance, local and foreign investments in construction, communication, o(er, food rocessing and service enter rises ushered in an era of economic activities# Ur$ani:ation and lifestyle changes concurrent (ith the economic develo ment created a demand for $anking roducts and services to su ort the ne( initiatives as (ell as to channeli:e consumer investments in a rofita$le manner# The commercial $anking system dominates Bangladesh2s financial sector# Bangladesh Bank is the 6entral Bank of Bangladesh and the chief regulatory authority in the sector# The $anking system is com osed of four state-o(ned commercial $anks, five s eciali:ed develo ment $anks, thirty rivate commercial Banks and nine foreign commercial $anks# The 4o$el- ri:e (inning

)rameen Bank is a s eciali:ed micro-finance institution, (hich revolutioni:ed the conce t of micro-credit and contri$uted greatly to(ards overty reduction and the em o(erment of (omen in Bangladesh# The Bangladesh $anking sector relative to the si:e of its economy is com aratively larger than many economies of similar level of develo ment and er ca ita income# The total si:e of the sector at 5<#&=' of )*+ dominates the financial system, (hich is ro ortionately large for a country (ith a er ca ita income of only a$out USH108# The non-$ank financial sector, including ca ital market institutions is only 1#55' of )*+, (hich is much smaller than the $anking sector# The market ca itali:ation of the *haka Stock @;change (as USH.,85& million or 5#./' of )*+ as at mid-Bune 5885# In contrast, the si:e of the total financial sector in India, including $anks and non-$anks as (ell as the ca ital market is .&8' ,March 5885- of its )*+, (ith commercial $anks accounting for &%#1' of )*+# Access to $anking services for the o ulation has im roved during the last three decades# Ghile o ulation er $ranch (as &0,088 in ./05, it (as ./,%88 in .//.# In 588. it again rose to 5.,188, due to (inding u of a num$er of $ranches and gro(th in o ulation# 6om ared to IndiaDs .&,888 ersons er $ranch in 588/, Bangladesh is not far $ehind in this regard# This indicates that access to the $anking system in the country is not a significant ro$lem# So, The financial system of Bangladesh consists of Bangladesh Bank ,BB- as the central $ank, = State 3(ned 6ommercial Banks ,S6B-, & government o(ned s eciali:ed $anks, 18 domestic rivate $anks, / foreign $anks and 5/ non-$ank financial institutions# Moreover, M9A has given license to 5/% Micro-credit 3rgani:ations# The financial system also em$races insurance com anies, stock e;changes and co-o erative $anks#

+n 01er1ie' of 2Bangladesh Krishi Bank3 4BKB5 Bangladesh "rishi Bank ,B"B- is a .88' government o(ned s eciali:ed Bank in Bangladesh# "9IS7I means Agriculture# Since its ince tion, B"B is financing in agricultural sector remarka$ly# B"B also erforms commercial $anking# +eo le (orking a$road can easily send money home through our Taka *ra(ing Arrangement# The major occu ation of the eo le of Bangladesh is !"rishi!# "rishi is a Bengali (ord (hich means !Agriculture!# A$out %&' of the

o ulation de ends directly or indirectly on agriculture (hich contri$utes a significant ortion to )*+# Bangladesh "rishi Bank ,B"B- has $een esta$lished under the Bangladesh "rishi Bank order ./01 ,+resident2s 3rder 4o 50 of ./01-# B"B is a $anking com any under the Banking 6om any Act-.//.# Its 7ead 3ffice is located at "rishi Bank Bha$an, %1-%& Motijheel 6ommercial Area, *haka-.888, and Bangladesh# The rimary o$jective of B"B is to rovide credit facilities to the farmers for the develo ment of agriculture and entre reneurs engaged in develo ment of agro-$ased and cottage industries# B"B is guided in accordance (ith the olicies and rinci les of the )overnment of the +eo leDs 9e u$lic of Bangladesh# It has an authori:ed ca ital of Tk#.&, 888 million ,Taka fifteen thousand million- only and aid u ca ital of Tk#/, 888 million ,Taka nine thousand million- only (hich is fully aid $y the government# The Bank started commercial functioning since ./00 to generate more loan a$le fund from the idle rural and ur$an savings and invest them for the $etterment of our economy# Bangladesh "rishi Bank o erates its function through its /&5 $ranches ,e;ce t 9ajshahi and 9ang ur *ivision- of (hich %55 are rural and .18 are ur$an# It has .& foreign e;change ,Authori:ed dealer- $ranches# In the field level the Bank has % *ivisional, 5. 6hief 9egional and 18 9egional offices for close su ervision of the $ranch activities# For smooth o eration, as art of internal control and com liance system, the Bank has < field level audit offices of (hich & at divisional and &. at regional levels# In the 7ead 3ffice the Bank has = divisions headed $y )eneral Managers and 5% de artments including >ocal +rinci al 3ffice and Training Institute headed $y *e uty )eneral Managers# The e;isting strength of Bank2s man o(er is .850& against the a roved strength of .1<%8 as on 1. March, 588/#The Bank has a Board of *irectors com rising of % mem$ers# The Board is headed $y a 6hairman# The *irectors re resent $oth u$lic and rivate sectors and are a ointed $y the government# The Board 6hairman is generally an e; erienced rofessional?e;rofessional (ho has (ide acce ta$ility and ra ort# The Managing *irector is the 6hief @;ecutive of the Bank# 7e is a ointed $y the government# The Bank has t(o osts of *e uty Managing *irectors and is a ointed $y the )overnment# The Bank has .= osts of )eneral Manager# They are also a ointed $y the )overnment#

B"B gives im ortance to accumulation of rural small savings through its $ranches# Bangladesh "rishi $ank offers different de osit $anking facilities like 6urrent *e osit Account, Short Term *e osit Account, Savings Bank Account, Fi;ed *e osit Account and other Time *e osits# The Bank rovides loans and advances to different sectors, namely cro and fisheries, agro $ased industry ,(hich includes large and medium industry, small and cottage industry-, overty alleviation, retail $usiness and services like trans ortation, communication, insurance, (orking ca ital loan etc# B"B finances roduction of all the summer and (inter cro s, horticulture and nursery etc# The Bank attaches im ortance to use scientific method and modern technology in fish cultivation# It e;tends adeAuate credit su other fishes# The Bank makes use of e; ertise of the concerned government agencies for $ringing more onds or (ater $odies under cultivation and increasing roductivity# As an agricultural country different ty es of cro s and fruits are roduced here# The Bank also ays due im ortance to setting u agro-industries for reservation, rocessing and marketing of agricultural roduces having $ack(ard linkage (ith $asic su$-sectors of cro , fishery, livestock and forestation# Manufacturing and marketing of agricultural im lements are also encouraged# Moreover, there is enough sco e for e; ort of these items through rocessing mechanism and value addition# 6onsidering the needs of the target grou s since late seventyDs B"B has $een im lementing a series of Micro-6redit rograms out of (hich .8 rograms have recently $een com leted and 1. rograms are in o eration at resent# Bangladesh Krishi Bank as friend of 6armers and Rural 7eople &rop -oan: 3ut of total annual allocation of >oan ortfolio, <8' is earmarked for 6ro financing# The 6redit rogram covers all the seasonal cro s roduced in the country# The loan is dis$ursed as er norms set $y the Bangladesh Bank# The rate of interest for this sector is .8'# The rate of interest may ho(ever, vary from time to time# Both the lando(ner and sharecro normally the target grou for this loan# Marginal farmers are also eligi$le for the loan# ers are ort for e;cavation and re-e;cavation of onds, round the year cultivation of s ecies, (hich have ra id gro(th, cultivation of s(eet (ater ra(n and

6ro loan is sanctioned on annual $asis# 6redit ass$ook is issued to each $orro(er#

6isheries -oan: To accelerate fish roduction B"B rovides loan for e;cavation and re-e;cavation of onds, develo ment of marshy lands, esta$lishment of fish hatcheries and ne( fisheries rojects# The >oans are given in the follo(ing su$ sectorsF Fish culture in e;isting ond?tank Fish culture $y re-e;cavation of old?derelict tank?tank Fish culture $y e;cavation of ne( tank?tank

Shrimp .ulture: Shrim culture in traditional system ,Bagda or Tiger Shrim Shrim culture in scientific system Shrim culture in semi-intensive method +ra(n culture in s(eet (ater,)alda-

This loan is given mainly in coastal areas for develo ed technology $ased shrim culture# 6ish ; Shrimp hat.hery 4fingerlings produ.tion5: Fingerlings roduction in s(eet (ater Shrim fingerlings roduction ,fingerlings of commercially rofita$le technology-#

-i1e Sto.k -oan: >ivestock sector lays an im ortant role in the develo ment of agriculture# B"B rovides loan for Bullock, Milch 6o(, )oatery, Beef fattening and other draft animals# It is $asically Medium

Term >oan# Under >ivestock head B"B rovides loans for Bullocks, Milch co(, )oatery, and Beef Fattening jo$# Aim of the rojects is creation of self-em loyment# In $eef fattening rogram one erson gets Tk# 5&,888 for urchasing five calves# The calves are to $e nourished and $rought u in scientific (ay to make them sella$le, healthy co(s# This is a collateral free, su ervised loan Beef 6attening 7rogram: Gith a vie( to creating self-em loyment for the oor and un-em loyed eo le of the country the $ank has introduced a ne( rogram titled !Beef Fattening!# 0b8e.ti1es of the program: 6reate self-em loyment o ortunity for oor and un-em loyed eo le#

Meet national deficit of animal rotein# Bring ositive change in the attitude of the eo le through training# @nsure artici ation of $ank officials in the rogram and increase their sense of duty and consciousness#

Main +spe.ts: +urely su ervised credit# The $ank officials giving guarantee are res onsi$le for recovery of loan# @ach $orro(er (ill get ma;imum Tk# 5&,888?-for & calves , each Tk# &,888?->oan is collateral free# 9e aya$le (ithin one year#

&ontinuous -oan:

The $ank is

roviding continuous loan for different ty es of activities as cash

credit?(orking ca ital loan on short term $asis# 6ontinuous loan is given for rocessing, reservation and marketing of agricultural roducts# +gro 9=uipment ; 6arm Ma.hinery -oan: Gith the 6hanging scenario the traditional agricultural system is $eing re laced $y mechani:ed one# In order to meet u the changing demand of this sector, B"B offers credit facilities $oth for roduction and marketing of different agricultural eAui ment and farm machinery including irrigation eAui ment# All sorts of irrigation eAui mentDs like >>+, 7+TG, STG, *TG are eligi$le under the sector# Bangladesh "rishi Bank resents loans for mechani:ing cultivation and irrigation# +eo le are interested no( to s(itchover from traditional machinery and system to modern ones# So this is a timely a roach# If you are eager to a ly modern techniAues in your firming, then visit a B"B $ranch# Gell, B"B also atroni:e manufacture and marketing of farm eAui ment# Besides the $ank offers credit for oultry and dairy farms and for e; ort oriented food and fish rocessing lants# +gro 7ro.essing *ndustries: As an agricultural country different ty es of cro s and fruits are roduced here# Moreover recently sectors like oultry, dairy, fisheries have flourished enormously# There is enough sco e for e; ort of these items through rocessing mechanism and value addition# The agro $ased industries are E +oultry farm, *airy farm, Food Industries etc# 9e uted local $usinessmen and rocessing lant, Fish free:ing?+rocessing ros ective foreign investors are highly

acce ta$le and encourage to the $ank for esta$lishment of any sorts of agro- rocessing industries in Bangladesh# +roject under joint venture as (ell as direct foreign investors are s ecially taken care of# 7oultry farm: +oultry $roiler farm +oultry layer farm

+oultry ,$roiler?layer- hatchery +oultry farm related?de endent roject

Dairy farm: Milk roduction Milk collection, milk rocessing ,ghee, $utter, asteuri:ed milk etc# roduction- and marketing 6ood pro.essing pro8e.t: Fruit $ased food re aration, rocessing, reservation I marketing Flour, $read I $iscuit vermicelli, noodles, chi s# 6hanachur, corn flakes, otato flakes, French fry, o corn, $a$y food, starch etc# Buice, jam, jelly, tomato ketchu , sauce, ickle etc# roduction I marketing S ices rocessing *ifferent ty eDs oil mill, dal mill etc# Small rocessing industry at farm level *ehydrated fruit canning, ackaging, reservation I marketing

9:portable items: Fish rocessing Free:ing lant *ehydration lant ,for dry fish rocessingSalting and *ehydration of Be( fish#

>eather rocess I leather $ased roducts item Jegeta$les

*mport substitutes: >eather and >eather )oods Fish net?net thread roduction )arments accessories ,garments allied industry like (ashing lant, ackaging etc#3rganic fertili:er, mi;ed fertili:er, urea su er granules etc# roduction I marketing Insecticides roduction Bio- esticide, neem $ased esticide roduction

7o1erty alle1iation 7rograms or 7ro8e.ts: In consideration of the im ortance of Micro-6redit and (ith the o$jective of generating em loyment as (ell as encouraging social develo ment B"B has undertaken several Micro6redit rograms of its o(n and also in colla$oration (ith local and foreign agencies# The rograms have $een designed to cover all segments of oor o ulation (hether skilled or unskilled such as small and marginal farmers, landless la$orers, destitute (omen, disa$led, unem loyed youth and rural artisans etc# A$out .=.08=0 $eneficiaries have $een rovided (ith Tk# .==</#/8 million since its ince tion ,u to 18 Se tem$er, 588/-# 6onsidering the needs of the target grou s since late seventyKs B"B has $een im lementing a series of Micro-6redit rograms out of (hich .8 rograms have recently $een com leted and 1. rograms are in o eration at resent# These diversified micro-credit rograms are $eing im lemented $y B"B to achieve the follo(ing o$jectivesF To create em loyment o ortunities through income generating activities#

To em o(er the rural (omen to esta$lish their o(n rights#

To im rove the living standard of the rural eo le# To alleviate overty of the oor eo le# To make easy access to institutional credit facilities and resources# To mo$ili:e rural savings# To make o timum utili:ation of rural resources# To engage inactive human resources of the rural areas in activities# roductive?economic

To engage rural eo le in develo ment rocess of the country# To eliminate e; loitation done $y the money lenders#

A Salient feature of B"BKs ongoing Micro-6redit +rograms under overty alleviation for the landless farmers and the oor rural eo le is given $elo(F &redit program for the landless and Marginal 6armers: This rogram has $een launched (ith B"BKs o(n fund in .//5-/1 financial year through its all $ranches# >andless and marginal farmers get short term credit under this rogram# +ersons? +easants having not more than .#&8 acres of cultiva$le land and annual income of highest Tk 5&888?- are eligi$le for getting credit under this rogram# After formation of grou s and o$taining training the grou mem$ers get credit (ithout any collateral security# But they have to hy othecate the goods and assets created $y the loan# In lieu of collateral they have to take res onsi$ility as guarantor for the recovery of loan (ithin the grou # The resent Interest rate is .8'# &5 eAual (eekly installments are fi;ed and the recovery (ill $e taken lace accordingly# A$out =0=.%.$eneficiaries have $een rovided (ith Tk# =</%#=8 million since its ince tion ,u to 18 Se tem$er, 588%-# Beef fattening >oint 7rogram:

This is a $ankKs o(n financed rogram# Bank launched this rogram in .//=# The main o$jective of this rogram is to fill u the deficiency of animal rotein in the country as (ell as creation of self-em loyment for oor and unem loyed eo le living in the villages# Under this rogram a erson can get a loan amounting u to Tk#5&888?- for & calves against guarantee of a $ank official or local elite# The rate of interest is .8'# The loan is to $e re aid (ith interest in one installment (ithin one year# A$out %/85& $eneficiaries have $een rovided (ith Tk#.=%.#18 million since its ince tion ,u to 18 Se tem$er, 588%-# S'anir1ar &redit 7rogram: Bank has $een im lementing S(anirvar credit rogram (ithout collateral security since ./0/# @m loyment creation for the landless and marginal farmers, increasing their standard of living, creation of social and ethical values, eradication of illiteracy, roviding creation of health and family lanning services etc# are the o$jectives of this rogram #The $eneficiaries under the rogram are landless, rural oor I destitute having ma;imum 8#=8 acres of cultiva$le land and ma;imum annual income is Tk#58, 888?-# 5.5 $ranches of 1. districts ,regions- are involved in this rogram# The $eneficiaries have to form grou s ,each 6onsisting & mem$ers- and a center ,consisting & grou s-# B"B I S(anirvar Bangladesh is o erating this rogram jointly# The credit is collateral free $ut )rou guarantee for each other is needed# Ma;imum loan amount is T"#.&, 888?er $eneficiary# It is Short term credit ,to $e recovered in &5 eAual (eekly installments (ithin one year-# *is$ursement of loans to the $eneficiaries is made duly recommended $y S(anirvar staffs# S(anirvar Bangladesh is res onsi$le for grou formation, giving training to the $eneficiaries and recovery of loan# 9ate of Interest is .<'# ,<' Service charge for S(anirvar, .8' Interest for B"B-# A$out 50=..& $eneficiaries have $een rovided (ith Tk#.&00#%8 million since its ince tion ,u to 18 Se tem$er, 588%-# Small 6armers ; landless -aborers De1elopment 7ro8e.t 4S6D75: This roject is $eing im lemented jointly $y BA9* I B"B from .//& through 5. $ranches under < 9egions ,districts- of Bangladesh "rishi Bank# The o$jectives of the roject are to increase roduction, em loyment creation and increase income of the small landless farmers I la$orers through formation of small grou s, generation of o(n ca ital and rovision for ca ital su ort for undertaking various income generating activities# Under this roject Tk# ./#%8

million has $een dis$ursed to 50.8 $eneficiaries on average er year and recovered Tk# .&#%8 million er year# 6umulative recovery rate is /0'# The $eneficiaries under this rogram are small farmers having ma;imum 8#&8 acres of cultiva$le land I landless la$orers having 8#&..#&8 acres of cultiva$le land# Selection of target family, grou formation, and su ervision of grou activities, su ervision of loan utili:ation and all kinds of field (orks are done $y BA9*# 3 ening of grou account, sanctioning and dis$ursement of loan I maintaining savings account etc# are done $y B"B# Bank rovides credit from its o(n source after formation &-.8 mem$ers grou # The loan is collateral free, $ut assets and goods derived from credit are hy othecated# >ien of grou savings I grou ressure re lace the collateral# >oan is dis$ursed for any recogni:ed items (hich is acce ted $y $ank I identified $y mem$ers of grou # Interest rate is .&' of (hich .8' for B"B, &' for BA9*# 6hairman or secretary of the grou recovers the loan# >oan is recovered in (eekly?fortnightly?monthly installments (ithin ma;imum .% months# A$out 5%5<< $eneficiaries have $een rovided (ith Tk#5.&#58 million since its ince tion ,u to 18 Se tem$er, 588%-# This rogram terminated on 18th Bune, 588<# South +sia 7o1erty +lle1iation 7rogram: This rogram (as launched on the $asis of *haka conference of SAA96 countries in .//1# This is a joint venture rogram (ith U4*+# But it is $anks o(n financed rogram# U4*+ organi:es the $eneficiaries, trains them and recommends the loan# The res onsi$ility of credit reali:ation lies (ith the managers of village organi:ations# This is an area $ased credit rogram# 3nly "ishorganj ,a district- sadar u a:illa is the command area of this rogram# The ma;imum credit limit is Tk# 5&888?- er $eneficiary# 5& $eneficiaries form a grou # 9ate of interest is .&' ,B"B .8' and the manager of village organi:ation &'-#The loan is collateral free and is recovered in (eekly installments (ithin one year# A$out &1051 $eneficiaries have $een Tk#==&#08 million since its ince tion ,u to 18 Se tem$er, 588%-# ?nited (ations &apital De1elopment 6und 4?(&D65: This rogram started in ./%1 (ith the o$jective of financing rural I cottage industries# 4o( it is running on revolving fund# This is a joint venture rogram (ith B"B, BS6I6 I U46*F# U46*F rovides one third of fund (hile B"B rovides t(o thirds# BS6I6 selects $orro(er and rovides e;tension services# The rogram covers 5/ districts# B"B rovides credit from joint rovided (ith

fund and maintains account# 9ate of interest is .8' - .='# This is a collateral free credit# 9a( materials, finished goods and ca ital asset created out of credit are ke t as hy othecation against credit rovided to the $eneficiaries# A$out 5=%10 $eneficiaries have $een rovided (ith Tk#.1<#08 million since its ince tion ,u to 18 Se tem$er, 588%-# Rural @omen 9mployment &reation 7ro8e.t +DB -oan (o " A) B+( 4S65: This is a joint roject started in .//1 for e; erimenting (ith the idea of co- artici ation of government 3rgani:ations ,)3s- and 4on-)overnment 3rgani:ations ,4)3s- aiming at em loyment creation for oor (omen in the rural areas# *e artment of (omen Affairs ,*GA-, ./ 4)3Ks in .5 thanas ,u a:illa- and B"B jointly im lementing the roject# 4)3s organi:es individuals into grou s, train them under the su ervision of *GA and recommends for credit funded $y A*B# This is also a collateral free credit# Interest rate is .5'# A$out <0=85 $eneficiaries have $een rovided (ith Tk#.&=#08 million since its ince tion ,u to 18 Se tem$er 588%-# This rogram terminated on 18th Bune, 5880# BKB-(/0 Mi.ro &redit 7rogram: This rogram is a re lication of 9ural Gomen @m loyment 6reation +roject ,9G@6+-#4)3s organi:es individuals into grou s, rovides them training and recommends for credit# B"B rovides credit from its o(n fund# This is also a collateral free credit# Interest rate is .5#&'# A$out .<<1< $eneficiaries have $een rovided (ith Tk# .1<#88 million since its ince tion ,u to 18 Se tem$er 588%-# &redit under (ational 7o1erty +lle1iation 7rogram through /oat Rearing: This rogram has $een introduced in 5885 aiming to eradicate overty through goat rearing# *irectorate of livestock rovides (ith e;tension service (hile B"B rovides credit from its o(n fund for a eriod of = years term# This is a collateral free credit rovided from all $ranches of B"B# Interest rate is .8'# A$out 5=1&= $eneficiaries have $een rovided (ith Tk# 51<#&8 million since its ince tion ,u to 18 Se tem$er 588%-# Mil.hing &o' &redit 7rogram for the @omen:

The rogram launched in the year .//0# The main o$jectives of the rogram (ere ro er utili:ation of the unem loyed (omen increasing milk roduction and hel ing the u -lift of the condition of the (omen folk# Under this rogram one village of a $ranch area is selected# 3ne (oman from each family of the selected village is eligi$le to get this credit facility# An a licant gets ma;imum Tk# .8,888?- to urchase a calf# Interest rate is %'# The loan is reali:ed (ithin one year in (eekly installments# This is a collateral free su ervised credit# An officer or field (orker of the $ranch is engaged in su ervising the credit under the direct control of the $ranch manager# >ivestock officers hel the $eneficiaries in treatment and rearing the co(# A$out <.5 $eneficiaries have $een rovided (ith Tk# %#58 million since its ince tion ,u to 18 Se tem$er 588%-#

Spe.ial Mi.ro &redit 7rogram for the Disabled: This rogram has $een introduced in 5885 aiming to income generation I develo ment of socioeconomic condition through em loyment creation for the disa$led ersons# *e artment of Social Gelfare and *isa$led Foundation rovide e;tension services# This is a collateral free credit rovided from all $ranches of the $ank# Interest rate is .8'# A$out &18 $eneficiaries have $een rovided (ith Tk# &#<8 million since its ince tion ,u to 18 Se tem$er 588%-# Manipuri Small Traders &redit 7rogram: This rogram have $een introduced in 5881 aiming to rovide (orking ca ital to handloom industry o erated $y the Mani uri (omen living in the greater Sylhet areas# Bank officials organi:e the Mani uri (omen having handloom and training?education?e; erience of o eration# @ligi$le (omen are organi:ed into & mem$er grou s# This is also a collateral free credit rovided from the $ankKs o(n fund# Interest rate is .8'# A$out <%= $eneficiaries have $een rovided (ith Tk#5.#&8 million since its ince tion ,u to 18 Se tem$er 588%-# Spe.ial &redit 7rogram for the Rakhains under the distri.t of &o:Bs BaCar: This rogram has $een launched in 5881 aiming to rovide (orking ca ital credit for roducing handloom and cottage Industrial roducts and marketing# The loan is dis$ursed to the 9akhain community living in the district of 6o;Ks Ba:ar# Bank officials organi:e 9akhains into & mem$er

grou s# This is a collateral free credit rogrammer from $anks o(n fund# Interest rate is .8' # A$out =</ $eneficiaries have $een rovided (ith Tk# .&#.8 million since its ince tion ,u to 18 Se tem$er 588%-# Tree 7lantation 7rograms: *n % 7rograms-1iC: All ty es of tree nursery including her$al 7orticulture *evelo ment Fruit and forest tree lantation Bam$oo roduction 7er$al gardening 6oconut gardening +ati ata ,a lant used in making mat- roduction 6ane roduction % and % D BKB has laun.hed $ Tree 7lantation

These rograms have $een introduced in all $ranches of the $ank to gro( more and more trees aiming to eradication of overty, ro er use of fallen land, increase of tree roduction facilitating her$al treatment and develo ment of environment# 6redit under these rograms is collateral free u to Tk# 5&,888?-# Interest rate is %'# A$out 588=1 $eneficiaries have $een rovided (ith Taka 581#&8 million since its ince tion ,u to 18 Se tem$er 588%-# 9stablishment of Breeding 6arm of Bla.k Bengal /oat 7rogram: This rogram has $een taken to ensure su ly of kids of Black Bengal )oats in order to su ort

the national rogram of overty alleviation through goat rearing# Under this rogram a farm com rising &8 she goats is considered as a small farm and a farm com rising &.-588 she goats is considered as a $ig farm# The loan is medium term# 6redit limit is Tk# 18,888?- for a small farm consisting of .8 she goats ,(ith a he- goat-# This credit limit is calculated for making u goat-

shed, urchasing of she-goats I he-goat and initial feed cost# This limit is ro ortionated for a small farm having u to &8 num$ers of she-goats# For a medium farm credit limit is to $e calculated deducting the cost of goat shed# This cost is $orne $y the entre reneur# A$out 18= $eneficiaries have $een rovided (ith Taka .=#<8 million since its ince tion ,u to 18 Se tem$er 588%-# 7o1erty +lle1iation through 7rodu.tion and *mpro1ement of Sheep: This is a government directed rogram (hich has $een launched in the last art of the fiscal year 588=-8&# +rimarily this is to $e im lemented throughout the selected 55 u a:illa under selected .. districts of B"BKs jurisdiction# *irectorate of livestock rovides (ith e;tensive services (hile B"B rovides credit from its o(n fund# Under this rogram credit amount u to taka &8,888?- is collateral free# Interest rate is %'# This loan is to $e re aid (ithin four years in < eAual installments including one year grace eriod# A$out 1<8 $eneficiaries have $een rovided (ith Tk 1#%8 million since its ince tion ,u to 18 Se tem$er 588%-#

Re.ommendation: B"B must go for(ard (ith the target to recover the classified loan (hich stands to 51&0 core in financial year 5880-8%# This huge amount of non erforming loan reduces its rofita$ility# B"BDs em loyee (ork in some such $ranches (here communication is very must $e motivated for (orking in such conditions# B"BDs must go full ahead for automation# Banking industry is no( very com etitive and (ithout automation, it (ill not $e ossi$le to sustaining future# *evelo ment of ne( attractive roduct and services Increase the ercentage of lo( cost de osit in the de osit mi;# oor#

Moreover, they are not getting com etitive remuneration# In these situation em loyees

*evelo ment of skilled (orkforce 9ecruitment of ne( em loyeeF To overcome the shortage of (orkforce B"B must recruit ne( em loyees# The e;isting strength of Bank2s em loyee is /=18against the a roved strength of .1<%8 as on 1. *ecem$er 58.8#

&on.lusion: +rofit and loss alone cannot measure the success of B"B# The success of B"B lies in its huge rural $ranch net(ork through (hich it serves a large num$er of farmers and agri$usiness# B"B serves in many areas (here any other $ank (ill not go due to lack of rofita$ility# B"B roudly states it as L)ram $ungler gonomanusher $ankC# B"B is a(fully state o(ned $ank and esta$lished to finance agricultural activities including agri$usiness# B"B dis$urses around &8' of total agricultural credit in the country# It $rings villagers to the $anking channel and hel s them to create savings for future use# It also ensures ayment of remittance through $anking channel in rural areas# It hel s government to dis$urse su$sidies through $anking channel in rural area such as su$sidies on oil used for irrigation and fertili:er# Therefore, B"B is successful in attaining its o$jectives and Asian $anking a(ard is the recognition of its success# 7o(ever, B"B should try to reduce its cost of fund, classified loan and come out of the circle of loss#

Referen.es: htt F??(((#asiatradehu$#com?$angladesh?$anks#as htt F??(((#krishi$ank#org#$d htt F??en#(iki edia#org? (iki?AgricultureMinMBangladesh htt F??(((#re ort$d#com?articles?5/?.?Banking-Sector-in-Bangladesh?+age.#html htt F??(((# a ercam #com?essay?=80%1?"rishi-Bank htt F??(((# a ercam #com?essay?=80%1?"rishi-Bank

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