Bangladesh Krishi Bank

Bangladesh Krishi Bank (BKB) is a 100% government owned specialized Bank

in Bangladesh.

INTRODUCTION
Establishment
Bangladesh Krishi Bank (BKB), the largest specialized bank of the country, was established
under the President Order No. 27 of 1973 to finance climate-dependent uncertain and risky
agriculture sector. BKB performs all sorts of banking activities including deposit, loan and
foreign exchange transactions has introduced Online Banking, Computerized Banking and
automated foreign remittance system.
Capital
Authorized capital of the bank as determined by the government amounts to Tk. 15000 Million
(Taka Fifteen thousand Million) only and paid up capital Tk. 9000 Million (Taka Nine thousand
Million) only.
Board of Directors
To administrate the bank in accordance with the government policies and regulatory bodies BKB
has an appreciable Board of Directors comprised of the Chairman and ten other Directors
appointed by the government.

Bank Overview Chart

Honorable Chairman
Honorable Managing
Director
Head Office Location
Authorized Capital
Paid up Capital
Core Services
Major Business Areas
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Mr. Mohammad Ismail
Mr. Md. Ali Hossain Prodhania
Bangladesh Krishi Bank, Head Office (Krishi Bank Bhaban),
83-85, Motijheel C/A, Dhaka-1000, Bangladesh.
TK.1500.00 Crore
TK.900.00 Crore
• Deposit
• Operational • Automated Clearing
• Banking (BACH)
• Credit • ATM & Debit Card
• Programs Facilities
• Online • RTGS Facility
• Banking • Fund Transfer
• Foreign • SMS Alert
• Remittance
• Financing in Agricultural
• Savings Accounts
Sector including Farming,
• Current Accounts
Rice Mill, Food processing
• Credit Programs
Food storage, etc.
 • SND Accounts • Financing in Fishery Sector
• Fixed Deposit including Fishery project,
Accounts Cold storage, Ice plant,
• Student Accounts Fish freezing plant etc.
• Monthly Schemes • Financing in Poultry Sector
• Time Deposits including Poultry project,
• Tea Sector Poultry and Fish Hatchery
Financing project & Dairy project etc.
• Automated • Salt project & Saw mill
• Foreign Remittance Financing
& Spot Cash
• Poverty Alleviation
& MCP activities

Head Office Departments 27 Departments

Divisional Offices 9
Divisional
9
Audit Offices
Chief Regional Manager
45
Offices
Regional Manager Offices 8
Regional
54
Audit Offices
Total Branches 1038
Main Branch Local Principal Office, Motijheel
Online Branches 419
ATM Booth 06
Corporate Branches 07
AD Branches 16
Rural Branches 792
District Covered by BKB 50
Union Covered by BKB 607
City Covered by BKB 9 City Corporations Covered through 38 BKB Branches
City Branches 239

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OVERALL PERFORMANCE

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Overall Performance: (5 Years) Amount in Crore

Performance (5 Years)
Particular 2014 2015 2016 2017 2018
Profit After Tax & Provision (2991.05) (215.25) (678.74) (565.87) (625.85)
Total Capital (4573.78) (4539.03) (5217.78) (5777.10) (6002.48)
Table: Performance Analysis of Bangladesh Krishi Bank in previous 5 years

Performance BKB (Minus Figure)

2991.05
Amount In Crore

3000
2000
678.74 565.87 625.85
1000 215.25
0
2014 2015 2016 2017 2018
Performance in Year

HIERARCHY

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PRODUCTS & SERVICES
Bangladesh Krishi Bank Deposit Scheme

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Credit Programs
Bangladesh Krishi Bank (BKB) is the pioneer of agricultural credit in Bangladesh. BKB
provides credit facilities for farmers, marginal farmers, extreme poor, sharecroppers and to the
mass-people of Bangladesh who are the real players in making agricultural outputs and success
of rural economy.
BKB is financing in Fishery project, Cold storage, Ice plant, Fish freezing plant, Rice Mill, Saw
mill, Poultry project, Poultry and Fish Hatchery project, Dairy project, Salt project, Food storage,
Food processing, Tea sector etc. throughout the country. Thus, BKB contributed to grow first
line agro-based project in the country.
BKB has received the ‘Letter of Appreciation’ from Bangladesh Bank for its outstanding
achievement in agricultural loan disbursement.
Explore the BKB Credit Products.
OTHERS PRODUCT & SERVICES
SMS Banking
Bangladesh Krishi Bank (BKB) is ready to introduce SMS Banking services to provide instant
access to your account information at any time. Any mobile phone user having account of BKB
can get the service through the mobile phone upon registration. SMS Banking brings your
account to your fingertips. It enables you to send and receive textual information anywhere 7
days a week and 24 hours a day. It allows you to access information by using your mobile phone.
ATM Service
Bangladesh Krishi Bank has established 06 ATM booths of its own and maintaining a strong Q-
Cash ATM network all over the country to enhance the plastic payment card system. BKB is
active member of NPSB (National Payment System of Bangladesh) since 2015. At present BKB
has introduced Debit Card facility.
Schedule of Charges:
ATM Card Transaction Charges: ATM Card Issuance & Maintenance Charges:
Withdrawal Amount Tk. Card Issue Charge Tk.500/-
Own ATM No Charge Renewal Charge Tk.500/-
Q-Cash ATM Tk.10+Vat Duplicate Card Issue Charge Tk.300/-
NPSB Tk. 22.50 (Customer Tk.15+ Bank Tk.7.50). Duplicate Pin Issue Charge Tk.150/-
User can change password twice a day and can withdraw maximum Tk.20,000/- per day
(Maximum 4times) with his/her debit card.
Q-Cash ATM Services
Information about BKB ATM Booths
Bangladesh Krishi Bank has established 06 ATM booths of its own and maintaining a strong Q-
Cash ATM network all over the country to enhance the plastic payment card system. BKB has
introduced Debit Card facility and honorable customers can access any ATM booth of any bank
under NPSB operation. At present withdrawal limit per day is Tk. 20,000/-.
BACH Service
Bangladesh Bank has taken up the project of automating the payment systems of the country in
the name of “Bangladesh Automated Clearing House” (BACH). BKB is an active member of

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BACH & presently 94 branches are directly functioning through network connectivity.
The project BACH is divided into two parts:
i) BACPS (Bangladesh Automated Cheque Processing Systems) and
ii) BEFTN (Bangladesh Electronic Funds Transfer Network)
Bangladesh Bank has launched the BACPS in October’2010 by providing all the banks software,
called Participating Bank Module, PBM which enables them to connect and transmit data in a
secure way and with non-repudiation to the Clearing House (CH). BEFTN is functioning from
Feb’2011
SME financing by Bangladesh Krishi Bank
Bangladesh Krishi Bank has introduced the SME policy strategies and financing norms in
accordance with the industrial policy and Bangladesh Bank’s Prudential Regulation to assist in
the achievement of Millennium Development Goals (MDGs) set by the government. BKB
started SME financing since October, 2007.
Interest Rate:
• Term Loan: 15.00%
• Cash Credit/Working Capital Loan: 15.50%
• Women Entrepreneur: 15.00%
Repayment:
• EMI (equal monthly installment) maximum for 5(five) years and working capital for
1(one) year.
Corporate Financing
The Bank has started financing to renowned corporate bodies of the country for the last 2/3
years. This has opened a new arena of utilizing agri-product marketing channel of the companies
in easy terms and at a lower interest rate. Such companies are:
• Pran Group (Agriculture Markting Company Ltd.) • Ispahani Group
• Square Group (Square Consumer Products Ltd.) • SA Group
• Partex Group (Partex Furniture Ltd.) • K.D.S Group
• Supreme Seeds • City Group
• Padma Group • S. Alam Group
• P.H.P Group • Meghna Group
• T.K. Group • M. M. Aga Ltd
• Navana Group (Navana Furniture)

Export Finance
BKB supports exports of any kind giving special emphasis on the following
• Financial assistance to all kinds of export-oriented industry and other products specially
export of fruits & vegetables.
• Offers Concessional rate of interest for Export Finance.
Does all activities in exports, such as:
• Export bill negotiation /Purchase/Collection.
• Helps the export firms for getting export incentive.
• Financial support for materializing the export order.

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GREEN BANKING
A green bank (sometimes referred to as green investment bank, clean energy finance authority,
or clean energy finance corporation is a financial institution, typically public or quasi-public, that
uses innovative financing techniques and market development tools in partnership with the
private sector to accelerate deployment of clean energy technologies. Green banks use public
funds to leverage private investment in clean energy technologies that, despite being
commercially viable, have struggled to establish a widespread presence in consumer markets.
Green banks seek to reduce energy costs for ratepayers, stimulate private sector investment and
economic activity, and expedite the transition to a low-carbon economy.
BKB’s credit disbursement (Green Banking):
Bangladesh Krishi Bank provides Green loan to the farmers and industries for purchasing
farming machinery, Industrial Machine, Livestock thinks and so on. Also, it is following
Online Banking, SMS/Mobile Banking etc. They provide some loan for farmers and industrial
purpose those are:
• Crops
• Fisheries
• Live stock
• Agricultural product & equipment
• Agro based industries
• Micro credit
Crop Loan: In case of providing crops loan BKB’s playing premier role from its inception. The
major feature of this loan disbursement are-
• Out of total annual allocation of loan portfolio, BKB assign for crop financing.
• This program covers all the seasonal crops produced in the country.
• The rate of interest for this sector is 8%.
• All sorts of farmers including marginal farmers are also eligible for the loan.
Food grains: Paddy, Wheat, Maize, Potato, Mustard etc. Cash Crops: Tea, Jute, Sugarcane,
Battle leaf, Cotton etc.
Winter Crops: Cucumber, Ladies Finger, Karola etc.
Summer Crops: Cucumber, Ladies Finger, Karola, Vegetables, Carrot, Cauli- flower, Cabbage,
Tomato etc.
• Nursery development (fruits, useful trees, flower, urbary culture, spices etc. production &
marketing)
• Banana, papaya, guava, pineapple, melon, water melon, battle nut etc.
• Mushroom cultivation
• Aromatic and fine rice
• Lettuce, capsicum, broccoli, French bean & other vegetables and promotion of export
market
• Spices (onion, garlic, ginger, turmeric etc.)
• Baby corn
• Fruit production (mango, jackfruit, litchis, lemon, guava, pineapple, banana etc )
• Floriculture (import substitutes & exportable rajanigandha, ganda, rose, glandules,
orchid, christmas tree, bonsai etc.). Import alternative fruit production (orange, grapes)

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Tea: Tea is one of the major exportable items of the country. BKB is the exclusive financing
institution providing credit to this sector. The Bank generally provides two types of Loa– Tea
production loan and Tea development loan.
Fisheries loan: To accelerate fish production BKB provides various types of credit for-
• Excavation and re-excavation of ponds.
• Development of marshy lands.
• Establishment of fish hatcheries and
• New fisheries project.
Livestock: Livestock animals, kept especially on a farm, for economic benefits. In Bangladesh
these are generally cattle, buffalo, goat and sheep. Livestock constitute an important part of the
wealth of a country, since in addition to draft power and leather; it provides manure, meat and
milk to the vast majority of the people. Livestock resources necessarily encompass animal health
care and welfare, quality production factors, and effective rearing to keep pace with expansion of
entrepreneurship related to concerned industries. It plays an important role in the agricultural
production sphere. Statistics show that about 6.5% of national GDP is covered by the livestock
sector, and its annual rate of productivity is 9%. About 20% of the population of Bangladesh
earns their livelihood through work associated with raising cattle and poultry. Draught power for
tilling the land, the use of cow dung as manure and fuel, and animal power for transportation
make up about 15% of the GDP. In addition, hides and skins, bones, offal’s, feathers, etc. help in
earning foreign exchange. Livestock resources also play an important role in the sustenance of
landless people.
Irrigational and farm machineries: In this case BKB provide both medium term and long-term
loan for higher and quality production. In this situation BKB provide medium term loan for-
• Purchasing power tiller, tractor low deep tube-well, low lift pump etc.
• The rate of growth in the financial year is 9.44 % (According to BKB’s accounts).
Agro-based industries:
The Agro based industries are – Poultry farm, Dairy farm, Food processing plant, Fish
freezing/Processing industries etc.
01. Poultry farm
• Poultry broiler farm
• Poultry layer farm
• Poultry (broiler/layer) hatchery
02. Dairy farm
• Milk production
• Milk collection, milk processing (ghee, butter, pasteurized milk etc production) and
marketing
03. Food processing project
• Fruit based food preparation, processing, preservation & marketing
• Flour, bread & biscuit vermicelli, noodles, chips., chanachur, corn flakes, potato flakes,
French fry, popcorn, baby food, starch etc
• Juice, jam, jelly, tomato ketchup, sauce, pickle etc production & marketing
• Spices processing
• Different types oil mill, dal mill etc

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 • Small processing industry at farm level
• Dehydrated fruit canning, packaging, preservation & marketing
04. Exportable items
• Fish processing
• Freezing plant
• Dehydration plant (for dry fish processing)
• Salting and Dehydration of Jew fish.
05. Import substitutes
• Leather and Leather Goods
• Fish net/net thread production
• Garments accessories (garments allied industry like washing plant, packaging )
• Organic fertilizer, mixed fertilizer, urea super granules production & marketing
• Insecticides production
• Bio-pesticide, neem-based pesticide production

Micro credit program under Poverty alleviation:

• Credit program for landless and marginal farmers.
• This micro credit program of BKB was launched with BKB’s own fund in 1992-1993
financial years through its all branches.
• About 1388928 beneficiaries have provided with Tk.9949.00 million since its inception.
• Person or peasant having not more than 1.5 acres of cultivate land and annual income of
highest Tk.25000 are eligible for getting credit under this program.
• After information of groups and obtaining training the groups and obtaining training the
members get credit without any collateral security.
• Under this program, the interest rate for the landless and marginal farmer is 10%

CORPORATE SOCIAL RESPONSIBILITY

Definition of CSR

CSR is a concept whereby financial institutions not only consider their profitability and growth,
but also the interests of society and the environment by taking responsibility for the impact of their
activities on stakeholders, employees, shareholders, customers, suppliers and civil society
represented by NGOs the process of communicating the social and environmental effects of
organizations’ economic actions to particular interest groups within society and to society at large.

Views of Social Responsibility:

There are two views of social responsibility. Those are

• The Classical View

• The Socio-economic view
The Classical View
The view that management’s only responsibility is to maximize profits.

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The Socioeconomic View
This is the modern view of today’s global business and economy. In this view management’s
social responsibility goes beyond making profit to include protecting and improving society’s
welfare. The major occupation of the people of Bangladesh is “Krishi”. Krishi is a Bengali word
which means “Agriculture”. About 85% of the population depends directly or indirectly on
agriculture which contributes a significant portion to GDP.
CSR Pillars:

“CSR Pillars” were used to benchmark the state of CSR in a country. Each parameter was further
assessed against globally acknowledged standards, evaluation tools, evolving CSR definitions and
indicators, as well as learning through interaction with international banking business and CSR
banks

CG Corporate Governance of Banks EP Product Integrity

BE Banking Business Ethical Principles CC Giving and Community investment
EC Environmental Compliance SH Stakeholder involvement
SC Social Compliance FP Financial Performance
DR Discloser and Reporting SS Supply Chain security

Bangladesh Krishi Bank involve Corporate Social Responsibility (CSR) activities. From the
above information we can see that they participate in different CSR activities.

REFERENCES
http://www.krishibank.org.bd/
http://www.krishibank.org.bd/bd/about-us/
http://www.krishibank.org.bd/core-business/
http://www.krishibank.org.bd/annual-reports/

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