Govt extends guarantee by one year

The government has extended its guarantee by one year against Rajshahi Krishi Unnayan Bank's (RAKUB) loan of Tk 10 billion taken under the central bank's refinance scheme, according to sources.

The Financial Institutions Division (FID) has updated the guarantee period to run from October 25, 2024, to October 24, 2025 as the existing one-year guarantee is set to expire on October 24, 2024.

RAKUB, the largest lender to the agriculture sector in the northwest region, borrowed the money at an interest rate of 4.0-5.0 per cent to support its lending operations, and contribute to the overall development of farmers and all the sectors and sub-sectors of agriculture in this region, said a source.

Characterised by the surplus food grain production, Rajshahi and Rangpur divisions are popularly called the "granary of the country".

There are 383 branches of the bank, including LPO and Dhaka branch, of which 194 are in Rajshahi and 187 in Rangpur divisions. The number of rural branches is 333 and urban branches 50.

The authorised capital of the bank is Tk 10 billion and paid-up capital Tk 8.25 billion.

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