The Financial Express

Bangladesh Krishi Bank seeks deposits from state entities

Bangladesh Krishi Bank seeks deposits from state entities

The state-run Bangladesh Krishi Bank (BKB) has sought deposits from ministries, divisions and state agencies to meet the growing demand of agriculture loans across the country.

BKB Managing Director (MD) Md. Ismail Hossain has recently requested the government entities to deposit their funds in the bank.

When contacted, he said, "We need low-cost deposits to increase our loan disbursement activities. Then, it will be easier for us to disburse more loans at the desired level."

"We've sought deposits from the government entities to strengthen our capital base," he added.

The bank, in its letter to the Ministry of Finance, said BKB is contributing to the country's Gross Domestic Product (GDP) growth as well as achieving the Sustainable Development Goals (SDGs) through disbursing extended farm credits.

It has been providing loans to crops, fisheries, livestock and SME sectors for ensuring food security and strengthening rural economy.

BKB has been disbursing loans for decades at lower interest rates than its cost of fund, said officials.

Currently, authorised capital of the bank is Tk 15 billion, and paid-up capital is Tk 9.0 billion, according to official data.

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