Paid-up capital of KarmasangsthanBank to be enhanced

FE Report The paid-up capital of Karmasangsthan Bank is likely to be raised from Tk 4.50 billion to Tk7.50 billion to cater to the need of bank loans for a vast number of unemployed youths of the country, a high official in the Ministry of Finance (MoF) said. The authorised capital of the specialised bank will also be increased from Tk 7.0 billion to Tk 10 billion, he said. "We have decided in principle to increase the paid-up capital of Karmasangsthan Bank as the specialised bank has ample scope to contribute to the development of social and economic fronts," a high official in the ministry said. The decision of the ministry came after scrutinising the proposals of the Karmasangsthan Bank, which sought the paid-up capital to be raised to Tk 12 billion and the authorised capital to Tk 15 billion. Officials in the finance ministry said they cannot source such a big amount of money at a time to meet the enhanced paid-up capital requirement from the bank. The paid-up capital of Karmasangsthan Bank will be increased further after one year. The bank now has 918 employees in 181 branches including 10 regional branches. Officials in the Karmasangsthan Bank said the bank has a big demand for low-cost loans. Currently, the bank provides loan worth Tk 0.50 million at the highest for individual and Tk2.5 million for group. The highest interest rate is 12 per cent. Poultry, fishery and small industry are the major sectors Karmasangsthan Bank generally prioritises in sanctioning loans as the sectors generate revenue and employment opportunity, bankers said.