BB sanctions Tk 200m loan to Ansar-VDP Unnayan Bank

FE Report The central bank has sanctioned Tk 200 million loan to the Ansar-VDP Unnayan Bank for improving its fund position including disbursing agricultural loan, official sources said. The loan was approved in the board meeting of the Bangladesh Bank (BB) on January 20, 2013. A BB report said that, "the loan has been allocated for easing fund crisis and proper implementation of agricultural credit programme." "For ensuring country's food security and helping poor members of Ansar & VDP, Tk. 200 million loan was granted in accordance with the BB order 1972, section 16 (10)," the report said. Earlier, The Ansar-VDP Unnayan Bank sought Tk 500 million from the central bank to provide loan, sources said. The specialised bank has established 170 branches across the country and so far its cumulative loan disbursement has reached Tk 2.33 billion and the classified stood at Tk 170 million. There are some 6.0 million members in the Ansar and VDP of whom 2.48 million are shareholders of the bank. SME, Agriculture, and the 'one farm one house project' have huge loan demand but the bank fails to contribute properly due to lack of necessary funds, the concerned bank sources said. "The fund constraint is also barring new branch opening and the bank fails to effectively contribute to the development of living condition of Ansar and VDP members," he noted.