RAKUB, Ansar-VDP bank to borrow Tk 9.0b from BB

Two state-owned banks (SoBs) got state guarantee to borrow Tk 9.0 billion from Bangladesh Bank to replenish their cash coffers, officials said
Under the guarantee Rajshahi Krishi Unnayan Bank (RAKUB) will get Tk 7.0 billion as loan from the central bank's refinance scheme while Ansar-VDP Unnayan Bank will take Tk 2.0 billion.
Earlier, the Ansar-VDP Unnayan Bank was also given another state guarantee last month against a loan worth Tk 1.0 billion from refinance scheme of the central bank.
In issuing state guarantees the two banks have been asked to submit business plans as to how they will enhance their business and cut down-non performing loans (NPLs).
The rate of classified loans of all the SoBs is considered very high and various lending agencies have been requesting the government for taking fruitful measures to cut down NPL overhang.
Officials at the ministry of finance said the RAKUB was provided the state guarantee to make available low-cost credits as the bank has been reeling from impacts of liquidity crisis and small capital base.
The specialised bank's paid-up capital is only Tk 7.0 billion. Until December last, the bank had faced capital shortfall of Tk 7.05 billion. From the budgetary allocation the government considers handing out Tk 1.0 billion to the northern agricultural bank.
The bank, which disburses loan mainly for crop production in all 16 districts under Rajshahi and Rangpur divisions, has a target of disbursing Tk 17.50 billion in loan this fiscal year.
The Ansar-VDP Unnayan Bank mainly lends to low-and middle-income members of Ansar and VDP. Having a paid-up capital of Tk 806 million and authorised capital of Tk 1.07 billion, the bank had also been seeking some Tk 250 million more for a long period from government to raise its capital base.
Officials said being a specialised but non-scheduled bank it cannot collect deposits other than from its members. It needs to depend on government to raise the capital base either in the form of loan or recapitalisation.
The specialised bank for the twin auxiliary law-enforcing agencies has been established to alleviate poverty of marginal Ansar-VDP members in particular, women empowerment and economic wellbeing by providing banking services to the large number of Ansar-VDP personnel through 239 branches and 18 regional offices across the country.
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