Ansar VDP Bank seeks Tk 750m from govt as special grant

Ansar VDP Unnayan Bank, a specialised bank, has sought Tk 750 million from the government as special grant for its women entrepreneurs and poultry assistance fund, officials said.

Managing director of the bank Mohammad Shams-ul Islam recently sent two letters separately to the sectary of the bank and financial institutions division (BFID) of the Ministry of Finance (MoF) seeking the funds.

Some Tk 500 million has been sought as women entrepreneurs' fund and Tk 250 million for poultry assistance fund in the form of special grant, according to the letter.

Some Tk 2.0 billion has been allocated for the women entrepreneurs and affected small and poultry farmers in the current fiscal year's budget. So, the bank will be able to implement different activities of the government if the funds sought are allocated to the bank, sources said.

"The specialised development bank is facing problems in performing its loan activities due to shortage of fund. The loan activities of the bank will be strong if the two special grants are allocated in favour of the special bank," a high official of the bank told the FE Wednesday.

The authorised and paid-up capitals of bank are Tk 1.0 billion and Tk 552 million respectively. The bank disbursed Tk 17.87 billion as loan until October last, according to the bank data.

Presently, there are 199 branches of the bank across the country. It has taken a plan to raise the number of its branches to 230 in the current fiscal year.  

The bank had started operation in late 1996 aiming at poverty alleviation of nearly 5.6 million Ansar and VDP members by engaging them in income-generating activities through credit support. It also aimed at raising their living standard by making them self-reliant.

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