Banks financing jute mills in N. districts
Friday, 5 November 2010
Our Correspondent
RANGPUR, Nov 3: Most commercial and specialized banks are eager to finance the small and mid-scale private jute mills in northern districts, as the prospect for jute looks bright.
Over the last 7 years, BASIC Bank, Rajshahi Krishi Unanyan Bank (RAKUB), National Bank, Janata Bank and Uttra Bank have lent about Tk. 1.0 billion to the sector that produces yarn bags.
BASIC's Sayedpur branch alone gave more than Tk 0.6 billion to 5 jute mills in Rangpur, Dinajpur, Nilphamari and Kurigram districts.
BASIC Bank rolled ND Jute Mills and Poddar Agro Industry in Nilphamari, JK Jute Processing Works in Rangpur, Kurigram Jute Mills in Kurigram and Mirza Jute Mills in Dinajpur, said Ekramul Bari, Manager of BASIC's Sayedpur branch.
Uttara bank extended Tk. 20 million to Rangpur Jute Mills Ltd in Kounia upazila, Rangpur, while National Bank financed Tk 0.7 billion to Eku Jute Mills in Sayedpur Nilphamari.
BASIC bank also financed Bhai Bhai Jute Mills in Burirhat Rangpur. Loan proposal for 2 more jute mills Motahar Hossain Jute Mills at Pirgachha and SR Jute Mills at Kounia in Rangpur are being processed, Bari said.
The bank will disburse loans by December, said BASIC banks Deputy General Manager for Rangpur Rezaul Karim.
RAKUB financed Tk 1.6 billion for the construction of Azad Jute Mills in Mohendra Nagar in Lalmonirhat which is at its final stage.
Kamrul Hasan Azad, Managing Director of Azad Jute Mills said, "We expect to go into production in December. About 1,000 workers will be employed".
North Bengal Jute Mills is also being constructed in Mithapukur, Rangpur with Tk 1.6 billion from Janata Bank.
"We lent term loans and working capital to the jute mills and most are paying their installments regularly", Kamrul said.
ND jute mills proprietor Raju Poddar said, "We have another jute mills, Poddar Agro Industry and we have already paid the loans back to the Bank".
Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Vice President Mostafa Azad Chowdhury Babu who is also a director of Motahar Hossain Jute Mills Ltd said, "Jute entrepreneurship is growing in the Rangpur division. This region is moving towards industrialisation. A large number of people are being employed in the jute mills."
"Bangladesh Bank should consider the Rangpur Division as a separate economic zone and make policy to help entrepreneurs with bank loans and low interest rates to increase the number of jute mills in the region", he added.
RANGPUR, Nov 3: Most commercial and specialized banks are eager to finance the small and mid-scale private jute mills in northern districts, as the prospect for jute looks bright.
Over the last 7 years, BASIC Bank, Rajshahi Krishi Unanyan Bank (RAKUB), National Bank, Janata Bank and Uttra Bank have lent about Tk. 1.0 billion to the sector that produces yarn bags.
BASIC's Sayedpur branch alone gave more than Tk 0.6 billion to 5 jute mills in Rangpur, Dinajpur, Nilphamari and Kurigram districts.
BASIC Bank rolled ND Jute Mills and Poddar Agro Industry in Nilphamari, JK Jute Processing Works in Rangpur, Kurigram Jute Mills in Kurigram and Mirza Jute Mills in Dinajpur, said Ekramul Bari, Manager of BASIC's Sayedpur branch.
Uttara bank extended Tk. 20 million to Rangpur Jute Mills Ltd in Kounia upazila, Rangpur, while National Bank financed Tk 0.7 billion to Eku Jute Mills in Sayedpur Nilphamari.
BASIC bank also financed Bhai Bhai Jute Mills in Burirhat Rangpur. Loan proposal for 2 more jute mills Motahar Hossain Jute Mills at Pirgachha and SR Jute Mills at Kounia in Rangpur are being processed, Bari said.
The bank will disburse loans by December, said BASIC banks Deputy General Manager for Rangpur Rezaul Karim.
RAKUB financed Tk 1.6 billion for the construction of Azad Jute Mills in Mohendra Nagar in Lalmonirhat which is at its final stage.
Kamrul Hasan Azad, Managing Director of Azad Jute Mills said, "We expect to go into production in December. About 1,000 workers will be employed".
North Bengal Jute Mills is also being constructed in Mithapukur, Rangpur with Tk 1.6 billion from Janata Bank.
"We lent term loans and working capital to the jute mills and most are paying their installments regularly", Kamrul said.
ND jute mills proprietor Raju Poddar said, "We have another jute mills, Poddar Agro Industry and we have already paid the loans back to the Bank".
Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Vice President Mostafa Azad Chowdhury Babu who is also a director of Motahar Hossain Jute Mills Ltd said, "Jute entrepreneurship is growing in the Rangpur division. This region is moving towards industrialisation. A large number of people are being employed in the jute mills."
"Bangladesh Bank should consider the Rangpur Division as a separate economic zone and make policy to help entrepreneurs with bank loans and low interest rates to increase the number of jute mills in the region", he added.