Palli Sanchay Bank\\\'s operations face delay

The new state-owned Palli Sanchay Bank is unlikely to go into operation within the stipulated timeframe as there has been little spadework done so far, officials said.  
They said the bank is yet to show any visible progress regarding the launch of its operational activities even after four months of the enactment of relevant law.
A gazette notification, establishing the bank, was published last September after parliament enacted the Palli Sanchay Bank Act 2014 on July 3.
The authorities are supposed to formulate rules and regulations within six months of the Act having taken effect. But four months have gone by, in the meantime, the officials said.  
It is necessary to appoint deputy managing director, general manager, deputy general manager, assistant general manager and other senior officials concerned to establish offices, regulation for staffs and prepare an organizational structure of the bank. But there is no progress in this connection, they added.  
The bank was scheduled to start its operations within the current month, December. "But it looks impossible to begin operations within the timeframe," an official of the ministry of finance (MoF) said.
Six directors have been appointed, including the chairman and the managing director, for the bank. Appointment of the rest of directors is under processing aiming to form the board of directors of the bank, the official mentioned.
The bank is facing setback in launching its operation for lack of necessary funds. So, the Chairman of the newly built bank has sought an allocation of Tk 1.25 billion from government for operating the bank activities properly.
Dr Mihir Kanti Majumder, chairman of the bank, in a letter to the MoF, said: "It's a massive job. The government is owner of the bank. So, the bank needs government fund to launch its operation to reduce poverty and ensure rural development."  
Of the amount, some Tk 230 million has been sought for employment of its staff members, furniture, vehicles etc, sources said.
The paid-up capital of the bank will be Tk 2.0 billion. Of the amount, Tk 1.20 billion and Tk 980 million will be provided by the government and members of the bank respectively, according to the MoF data.
The government passed the Palli Sanchay Bank Act 2014 for establishing the rural savings bank with the prime aim of poverty reduction in the county.
Presently, the Ektee Bari Ektee Khamar Project is being implemented. There are 40,000 associations under the project across the country. Some 2.4 million members are mobilized under the associations.
There is an employee and office each at union and upzila levels for collecting deposits, installments and disbursing loan. The offices at the upzila level turn into the branches of the bank.
"The specialized bank is likely to give seasonal loans to the rural poor for improving their livelihood. Small farmers and fishermen will get loan. They will repay their loans borrowed from the bank after selling their grains and fishes," a high official concerned of the MoF said.
The main goal of the bank is to eradicate poverty from the country and the poor rural people who will deposit money with the bank will be able to become entrepreneurs, he said.
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