Karmasangsthan Bank requests for Tk 2.0b fund

The state-run Karma-sangsthan Bank (KB) has requested the government to release a sum of Tk 2.0 billion in paid-up capital for it, aiming to implement its five-year work plan, officials said.

The managing director of the specialised bank in a letter to the finance ministry on March 14 made the request for taking necessary steps to arrange funds for the paid-up capital.

"The demand for loan is increasing gradually. But the state-owned bank could not disburse loans as required because of fund shortage," a high official of the bank told the FE.

"We have received a proposal put forward by the state-owned bank seeking funds for paid-up capital," a senior official of the banking division said.

The government recently approved a proposal for raising the authorised and paid-up capital of the bank from Tk 7.0 billion to Tk 10 billion and from Tk 5.20 billion to Tk 8.0 billion respectively.

The bank has now a shortfall of over Tk 3.0 billion in paid-up capital.

Since its inception, the bank gave loans totalling Tk 44.14 billion to over 0.51 million entrepreneurs as of February.

Currently, the bank has 242 branches across the country. It has also initiated a process to open one branch in every upazila.

The state-run bank was established in 1998 with a view to generating self-employment opportunities for unemployed people, especially youths, in the country in order to eradicate poverty, according to its official webpage.

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